There has been no-let up in the difficult market conditions. To offset the impact of tough markets we have taken further substantial action on costs to protect and grow profitability. United’s first half operating profits of £36m are much improved on the £21m achieved in the second half of last year. The £110m of cost savings secured against the 2000 base has been increased by £55m to £165m – a 24 per cent reduction on the group’s 2000 fixed cost base.

Our UK, Asian and European business have performed particularly well, with underlying profits of £21.1m this year, up 68.2 per cent compared with £12.5m last year. CMP Asia and NOP Research produced solid results, while UAP and CMPi delivered strong growth in profits. In the US, weak revenues reduced profits and margins at NOP and PR Newswire. CMP Media recorded a loss as it suffered a 38 per cent fall in revenues. The continuing cost reduction programme at CMP Media should ensure a solid improvement in the second half of the year. With staffing levels reduced by around 40 per cent this division is now well geared to an upturn in its marketplace.

United has cash generative businesses and a strong balance sheet. With net cash in the bank we have the capacity to continue to grow our core markets through organic investment and acquisition. Future developments will be within our existing three business information areas. These are in attractive markets where we can build on our expertise and our market leading positions.

As the strong performances of these businesses show, the outlook for the UK, European and Asian businesses remains encouraging. The outlook for the US businesses is mixed, with continuing pressure on revenues, no upturn anticipated during the rest of 2002, and further substantial cost savings being realised. If current revenue trends continue, then the benefit of the additional savings announced today and the contribution from new United products should deliver improved group margins in the second half of 2002. We are targeting a rate of 9 to 10 per cent for the second half and further good progress in 2003 when margins should be in excess of 11 per cent. Beyond this our medium term target is to again improve margins to 15 per cent.

In October 2001, the group announced a rebased dividend policy which would commence at 7 pence per annum. The interim dividend of 3 pence is in line with that policy.