Smiths Group is nearly twice the size it was when we reported a year ago, directly as a result of the merger with TI Group. Consequently, the figures in this Report and Accounts are all substantially increased, being the sum of the two parts. More significantly, these figures also show a strong increase over the previous performance of the equivalent, formerly separate, companies. The most important number to focus on for 2001 is the £525m of operating profits on the continuing activities, because this is the one that will allow the most direct comparison when looking forward and at last year. The Chief Executive therefore concentrates his report on the performance of these continuing activities.
However, I shall first detail the consolidated results of Smiths Group as it was for most of last year, which includes the discontinued activities, principally the now demerged Automotive business. On sales of £5bn, of which Automotive accounted for £1.5bn, Smiths earned operating profits of £651m. After interest costs of £116m, the pre-tax profit was £535m, resulting in earnings per share of 68.3p. All of these figures are reported before goodwill amortisation and exceptional charges, on which the Chief Executive gives a full report.

The Board is recommending a final dividend of 16.25p, bringing the total for the year to 25.0p, an increase of 5%, and a level of payment which is more than twice covered by earnings from the continuing activities alone.

The company's underlying good health will become apparent on reading the Financial Director's Review. A highlight of this for me is that last year the continuing Smiths activities generated a 12% after-tax rate of return on total shareholder investment, including goodwill, of £2.7bn. This is well above the company's cost of capital, and we are confident we can lift the rate of return still higher. Further reassurance can be found in the Directors' Report, where there is a full statement of the procedures for internal controls, audit and evaluation of potential risks to the business. These matters are regularly reviewed by the Board and we are confident we have robust systems in place.