1 Accounting policies

Basis of preparation The financial information for the first six months of 2003 and 2002, which is unaudited but has been reviewed by the Company's auditors, does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985 and is presented on the basis of accounting policies set out in the financial statements of Elementis plc for the year ended 31 December 2002.

2 Segmental information

		Group turnover				Group operating profit/(loss)
	2003		2002		2002		2003		2002		2002
	Six months to 30 June £million		Six months to 30 June to £million		Year to 31 Dec £million		Six months to 30 June £million		Six months to 30 June £million		Year to 31 Dec £million
a) Before goodwill amortisation and exceptionals
Analysis by activity
Chromium	62.4		59.5		109.0		4.8		5.2		3.7
Inter-group turnover	(3.0	)	(4.4	)	(6.9	)	–		–		–
	59.4		55.1		102.1		4.8		5.2		3.7
Specialties & Pigments	108.1		119.7		225.0		9.7		10.2		18.7
Specialty Rubber	21.2		19.7		37.8		–		(0.9	)	(2.0	)
	188.7		194.5		364.9		14.5		14.5		20.4
Analysis by area of operations
North America	101.2		103.1		191.1		10.6		9.3		12.6
Europe	75.7		79.8		151.4		2.9		3.6		5.2
Rest of the World	11.8		11.6		22.4		1.0		1.6		2.6
	188.7		194.5		364.9		14.5		14.5		20.4
b) After goodwill amortisation and exceptionals
Analysis by activity
Chromium	62.4		59.5		109.0		5.4		6.2		(35.8	)
Inter-group turnover	(3.0	)	(4.4	)	(6.9	)	–		–		–
	59.4		55.1		102.1		5.4		6.2		(35.8	)
Specialties & Pigments	108.1		119.7		225.0		2.0		3.2		0.7
Specialty Rubber	21.2		19.7		37.8		(0.1	)	(1.4	)	(2.7	)
	188.7		194.5		364.9		7.3		8.0		(37.8	)
Analysis by area of operations
North America	101.2		103.1		191.1		4.3		3.4		(39.4	)
Europe	75.7		79.8		151.4		2.0		3.0		(1.0	)
Rest of the World	11.8		11.6		22.4		1.0		1.6		2.6
	188.7		194.5		364.9		7.3		8.0		(37.8	)

3 Net interest payable

	2003 Six months to 30 June £million		2002 Six months 30 June to restated £million		2002 Year to 31 Dec restated £million
Interest payable	(1.7)		(1.5)		(3.4)
Interest receivable	0.7		0.5		1.5
Pension scheme and post-retirement benefits	(2.0)		(0.2)		0.1
Discount on environmental provisions	(0.5)		–		(1.0)
Other finance income	0.4		–		2.0
	(3.1)		(1.2)		(0.8)