Basis of preparation

Adjusted performance

Adjusted profit is reported as it provides both management and investors with valuable additional information on the performance of the business. The following items are excluded from adjusted profit:

  • results of discontinued operations, including gains and losses on disposal
    (Note 12 and Note 37);
  • exceptional items from continuing operations (Note 7); and
  • amortisation of intangibles acquired through business combinations.

This adjusted information is used internally for analysing the performance of the business. A reconciliation of reported and adjusted information is included in Note 43.

Impact of changes in exchange rates

Our reported financial performance has been positively impacted this year by exchange rate translation, in particular due to the strengthening of the average US dollar exchange rate against sterling. The movement in exchange rates had led to increased profits and a reduction in net debt as a result of the translation of accounts recorded in foreign exchange. The average and closing exchange rates used to translate reported results were as follows:

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Average rates

Closing rates

 

2011

2010

2011

2010

US dollar:sterling

1.55

1.61

1.60

1.52

Euro:sterling

1.19

1.13

1.13

1.12

Segmental analysis

Following the change of the organisational structure announced in May 2010, the Group restructured its internal organisation into four distinct segments: Speciality Food Ingredients, Bulk Ingredients, Sugars and central costs. Sugars was subsequently classified as discontinued following the announcement on 1 July 2010 of the disposal of EU Sugars and the launch of processes to sell the remaining businesses within the Sugars division. Comparative information has been reclassified accordingly.