Price reductions, market volumes, margin pressure and bad debts continue to impact on trading. We will continue to develop our web sites and are positive about the business opportunities that the Internet brings to the Group. The new developments in technology and telecommunications, coupled with falling product prices, have resulted in a number of changes in the way we service our customers' requirements. Further reorganisation is occurring and reshaping the company for the future is underway. This is expected to lead to sizeable cost savings next year.
Resources are, of course, available for new products growth areas and acquisitions.
The earnings per share has been calculated by dividing the profit attributable to the members of the parent undertaking by the number of ordinary shares in issue during the period. The number of shares in issue as at 30 June 1999 was 25.15 million. During November 1999 and December 1999 the Group repurchased for cancellation 937,892 and 225,000 shares respectively and hence the number of shares in issue as at 31 December 1999 was 23.99 million. During April 2000 the Group repurchased 2,200,000 shares and hence the number of shares in issue as at 30 June 2000 was 21.79 million. The financial information in this interim statement for the six months ended 30 June 2000 and the comparative figures for the six months ended 30 June 1999 do not constitute statutory accounts as defined in Section 240 of the Companies Act 1985.