Group profit and loss account

For the year ended 31 December 2002

                                                                     2002     2001
                                                                                  
                                                            Note       �m       �m
                                                                                  
Turnover                                                                          
                                                                                  
Continuing operations                                             4,639.0  4,433.9
                                                                                  
Acquisitions                                                         48.8        -
                                                                                  
                                                                  4,687.8  4,433.9
                                                                                  
Discontinued operations                                              32.8    106.0
                                                                                  
Group and share of joint ventures' turnover                  4    4,720.6  4,539.9
                                                                                  
Less: share of joint ventures' turnover                            (77.6)   (32.7)
                                                                                  
Group turnover                                                    4,643.0  4,507.2
                                                                                  
Operating profit                                                                  
                                                                                  
Continuing operations                                               184.6    186.2
                                                                                  
Acquisitions                                                          3.7        -
                                                                                  
                                                                    188.3    186.2
                                                                                  
Discontinued operations                                                 -    (2.5)
                                                                                  
Group operating profit                                              188.3    183.7
                                                                                  
Share of operating profit of joint ventures, continuing               4.0      1.9
operations                                                                        
                                                                                  
Share of operating profit of associated undertakings,                 0.2      1.8
continuing operations                                                             
                                                                                  
Continuing operations before goodwill                               218.1    210.2
                                                                                  
Discontinued operations before goodwill                                 -    (2.5)
                                                                                  
Goodwill amortisation                                              (25.6)   (20.3)
                                                                                  
Total operating profit                                       4      192.5    187.4
                                                                                  
Profit on disposals of fixed assets in continuing            5        0.9      8.6
operations                                                                        
                                                                                  
Loss on termination and disposals of discontinued            5      (9.0)   (10.7)
operations                                                                        
                                                                                  
Less 2001 provision                                          5        9.0        -
                                                                                  
Provision for loss on operations to be discontinued          5          -   (10.2)
                                                                                  
Costs of reorganisation in continuing operations             5          -   (15.0)
                                                                                  
Amounts written off investments in continuing operations     5          -   (10.7)
                                                                                  
Profit on ordinary activities before interest                       193.4    149.4
                                                                                  
Net interest                                                       (12.8)   (21.1)
                                                                                  
Profit before tax, goodwill and exceptional items                   205.3    186.6
                                                                                  
Goodwill amortisation                                              (25.6)   (20.3)
                                                                                  
Exceptional items                                                     0.9   (38.0)
                                                                                  
Profit on ordinary activities before taxation                       180.6    128.3
                                                                                  
Tax on profit on ordinary activities                         6     (57.4)   (53.1)
                                                                                  
Profit on ordinary activities after taxation                        123.2     75.2
                                                                                  
Equity minority interests                                           (6.4)    (7.8)
                                                                                  
Profit for the financial year                                       116.8     67.4
                                                                                  
Dividends                                                          (67.5)   (62.5)
                                                                                  
Transferred to reserves                                              49.3      4.9
                                                                                  
EBITDA before exceptional items                              7      318.3    304.2
                                                                                  
                                                                     2002     2001
                                                                                  
                                                                    pence    Pence
                                                                                  
Basic earnings per share                                     8       39.5     22.9
                                                                                  
Basic earnings per share before goodwill and exceptional     8       47.2     41.4
items                                                                             
                                                                                  
Diluted earnings per share                                   8       39.3     22.8
                                                                                  
Diluted earnings per share before goodwill and exceptional   8       46.9     41.2
items                                                                             
                                                                                  


Group statement of total recognised gains and losses

For the year ended 31 December 2002

                                                               2002   2001
                                                                          
                                                                 �m     �m
                                                                          
Profit for the financial year                                             
                                                                          
Group                                                         113.9   65.8
                                                                          
Share of joint ventures                                         2.9    1.6
                                                                          
                                                              116.8   67.4
                                                                          
Exchange differences                                                      
                                                                          
Translation of overseas net investments                      (64.6)  (1.3)
                                                                          
Foreign currency hedges                                        52.0    3.7
                                                                          
UK tax on exchange differences                                    -  (0.3)
                                                                          
Total recognised gains and losses relating to the year        104.2   69.5
                                                                          
Prior year adjustment - FRS 19                                 17.8       
                                                                          
Total gains and losses recognised since last annual report    122.0       
                                                                          

Movements in shareholders' funds

For the year ended 31 December 2002

                                                                   2002    2001
                                                                               
                                                                     �m      �m
                                                                               
Profit for the financial year                                     116.8    67.4
                                                                               
Dividends                                                        (67.5)  (62.5)
                                                                               
                                                                   49.3     4.9
                                                                               
Shares allotted                                                     1.6     1.2
                                                                               
Goodwill released on disposals                                        -    17.3
                                                                               
Exchange differences                                             (12.6)     2.4
                                                                               
Tax on exchange differences                                           -   (0.3)
                                                                               
Movements in shareholders' funds                                   38.3    25.5
                                                                               
At 1 January (originally �842.5m before adding prior year         860.3   834.8
adjustment of �17.8m)                                                          
                                                                               
Shareholders' funds at 31 December                                898.6   860.3
                                                                               


Group cash flow statement

For the year ended 31 December 2002

                                                        2002              2001 
                                                                               
                                                 �m       �m       �m       �m 
                                                                               
Net cash inflow from operating activities              333.7             271.8 
                                                                               
Dividends received from joint ventures                   2.8               2.0 
and associates                                                                 
                                                                               
Net cash outflow for returns on investments           (19.1)            (32.1) 
and servicing of finance                                                       
                                                                               
Taxation                                              (34.2)            (35.4) 
                                                                               
Capital expenditure and financial                                              
investment                                                                     
                                                                               
Purchase of tangible fixed assets           (136.5)           (123.6)          
                                                                               
Purchase of investments                       (0.5)                 -          
                                                                               
Receipt from joint venture on sale of fixed       -               1.0          
assets                                                                         
                                                                               
Sale of tangible fixed assets                  30.1              52.3          
                                                                               
Sale of own shares                              1.5               4.3          
                                                                               
Net cash outflow for capital expenditure             (105.4)            (66.0) 
and financial investment                                                       
                                                                               
Free cash flow                                         177.8             140.3 
                                                                               
Acquisitions and disposals                                                     
                                                                               
Purchase of businesses                       (71.4)           (116.7)          
                                                                               
Sale of businesses                                -              12.5          
                                                                               
Net cash outflow for acquisitions and                 (71.4)           (104.2) 
disposals                                                                      
                                                                               
Equity dividends paid                                 (64.5)            (61.6) 
                                                                               
Net cash inflow/(outflow) before the use                                       
of liquid                                                                      
                                                                               
    Resources and financing                             41.9            (25.5) 
                                                                               
                                                                               
                                                                               
Net cash (outflow)/inflow from management                                      
of liquid resources                                                            
                                                                               
Current asset investments                             (14.0)              10.3 
                                                                               
Net cash inflow/(outflow) from                          19.0            (44.1) 
financing                                                                      
                                                                               
Increase/(decrease) in cash                             46.9            (59.3) 
                                                                               


Reconciliation of operating profit to operating cash flow

For the year ended 31 December 2002

                                                     2002    2001
                                                                 
                                                       �m      �m
                                                                 
Group operating profit                              188.3   183.7
                                                                 
Depreciation                                        100.5    96.5
                                                                 
Amortisation of goodwill                             25.6    20.3
                                                                 
Amortisation of fixed asset investments             (0.3)       -
                                                                 
Profit on sale of tangible fixed assets               2.3   (3.3)
                                                                 
Movement in pension prepayments                    (36.5)  (34.9)
                                                                 
Movements in provisions                               6.2   (0.8)
                                                                 
Movements in working capital                         55.8    27.9
                                                                 
                                                    341.9   289.4
                                                                 
Costs of reorganisation in continuing operations    (8.2)  (17.6)
                                                                 
Net cash inflow from operating activities           333.7   271.8
                                                                 

Reconciliation of net cash flow to movement in net debt

For the year ended 31 December 2002

                                                           2002     2001
                                                                        
                                                             �m       �m
                                                                        
Increase/(decrease) in cash                                46.9   (59.3)
                                                                        
Cash outflow from change in debt                           19.6     44.9
                                                                        
Cash outflow/(inflow) from change in liquid resources      14.0   (10.3)
                                                                        
Change in net funds resulting from cash flows              80.5   (24.7)
                                                                        
Arising on acquisitions                                   (1.6)   (10.2)
                                                                        
Released on disposals                                         -      0.1
                                                                        
New leases                                                (2.4)    (1.3)
                                                                        
Other non-cash movements                                    3.3        -
                                                                        
Exchange differences                                     (13.7)    (7.8)
                                                                        
Movement in net debt                                       66.1   (43.9)
                                                                        
Net debt at 1 January                                   (219.8)  (175.9)
                                                                        
Net debt at 31 December                                 (153.7)  (219.8)
                                                                        

At 31 December 2002            2002     2001
                                            
Analysis of net debt             �m       �m
                                            
Cash at bank and in hand      149.7    128.5
                                            
Overdrafts                   (24.5)   (25.6)
                                            
Loans                       (280.1)  (306.8)
                                            
Finance leases               (19.6)   (23.4)
                                            
Current asset investments      20.8      7.5
                                            
                            (153.7)  (219.8)
                                            


Group balance sheet

As at 31 December 2002

                                                          2002  2001 (restated)
                                                                               
                                                 �m         �m      �m       �m
                                                                               
Fixed assets                                                                   
                                                                               
Intangible assets - goodwill                             415.8            389.8
                                                                               
Tangible assets                                          576.2            569.0
                                                                               
Investments                                                                    
                                                                               
Investment in joint ventures                                                   
                                                                               
Share of gross assets                          21.6               13.2         
                                                                               
Share of gross liabilities                   (16.4)             (10.3)         
                                                                               
                                                5.2                2.9         
                                                                               
Other investments                              26.4               31.1         
                                                                               
Own shares                                     17.6               18.3         
                                                                               
                                                          49.2             52.3
                                                                               
                                                       1,041.2          1,011.1
                                                                               
Current assets                                                                 
                                                                               
Stocks                                                     9.2             13.9
                                                                               
Debtors                                                                        
                                                                               
Amounts falling due within one                874.8              896.5         
year                                                                           
                                                                               
Amounts falling due after more than one       378.6              343.3         
year                                                                           
                                                                               
                                                       1,253.4          1,239.8
                                                                               
Current asset investments                                 20.8              7.5
                                                                               
Cash at bank and in hand                                 149.7            128.5
                                                                               
                                                       1,433.1          1,389.7
                                                                               
Creditors: amounts falling due within one            (1,058.9)          (979.6)
year                                                                           
                                                                               
Net current assets                                       374.2            410.1
                                                                               
Total assets less current                              1,415.4          1,421.2
liabilities                                                                    
                                                                               
Creditors: amounts falling due after more              (281.7)          (332.4)
than one year                                                                  
                                                                               
Provisions for liabilities and                         (218.3)          (211.6)
charges                                                                        
                                                                               
                                                         915.4            877.2
                                                                               
Capital and reserves                                                           
                                                                               
Called up share capital                                   82.8             82.7
                                                                               
Share premium account                                     52.5             51.0
                                                                               
Other reserves                                                                 
                                                                               
Merger reserve                                 50.7               50.7         
                                                                               
Capital redemption reserve                    103.5              103.5         
                                                                               
                                                         154.2            154.2
                                                                               
Profit and loss account                                  609.1            572.4
                                                                               
Equity shareholders' funds                               898.6            860.3
                                                                               
Equity minority interests                                 16.8             16.9
                                                                               
                                                         915.4            877.2
                                                                               


Notes to the preliminary announcement

Accounting policies

This preliminary announcement has been prepared on the basis of the accounting
policies set out in the 2001 financial statements of Exel plc, except for the
adoption of FRS 19 'Deferred tax'.  The phased transitional disclosure
requirements of FRS 17 'Retirement benefits' will be included in the Group's
statutory financial statements.

The impact of adopting FRS 19 has been to increase deferred tax assets within
debtors: amounts falling due after more than one year by �13.4m, decrease
provisions for liabilities and charges by �4.4m, and increase reserves by �
17.8m at 1 January 2001 as prior year adjustments.  The impact of this change
in accounting policy on tax on profit on ordinary activities for both the
current and previous year was immaterial.

Statutory group accounts

This preliminary announcement, which was approved by the Board on 7 March 2003,
is not the Group's statutory financial statements.  The Auditors' report on the
2002 statutory group financial statements is unqualified and does not include a
statement under sections 237 (2) or (3) of the Companies Act 1985.

Statutory group financial statements for Exel plc for the year ended 31
December 2001, on which the Auditors gave an unqualified report (which made no
statement under sections 237 (2) or (3) of the Companies Act 1985), have been
filed with the Registrar of Companies.

Exchange rates

The significant exchange rates relative to � sterling used in the preparation
of these financial statements are as follows:

                                        Average rate         Year end rate
                                                                          
                                2002            2001       2002       2001
                                                                          
 US dollar                      1.50            1.44       1.60       1.45
                                                                          
 Euro                           1.59            1.62       1.54       1.64
                                                                          
 Singapore dollar               2.69            2.59       2.78       2.69
                                                                          


Notes to the preliminary announcement (continued)

Segmental information

Analysis of change in turnover

           

                    2001  Exchange           New     Increment Restatements Organic change      2002
                                    acquisitions                                                    
                                                       on 2001 and movement                         
                                                                         in                         
                                                  Acquisitions discontinued                         
                                                                 operations                         
                                                                                                    
                      �m        �m            �m            �m          �m      �m       %        �m
                                                                                                    
Logistics                                                                                           
                                                                                                    
Europe,                                                                                             
Middle East                                                                                         
                                                                                                    
& Africa                                                                                            
                                                                                                    
UK & Ireland  -  1,168.0       0.7             -             -           -    51.0     4.4 % 1,219.7
              CL                                                                                    
                                                                                                    
              -    256.6       0.3             -           1.9           -  (35.2)  (13.7) %   223.6
              FM                                                                                    
                                                                                                    
                 1,424.6       1.0             -           1.9           -    15.8     1.1 % 1,443.3
                                                                                                    
Continental                                                                                         
Europe                                                                                              
                                                                                                    
& Africa      -    338.6       3.8             -           0.6           -   (1.1)   (0.3) %   341.9
              CL                                                                                    
                                                                                                    
              -    434.8       4.6             -          11.3           -    21.5     4.9 %   472.2
              FM                                                                                    
                                                                                                    
                   773.4       8.4             -          11.9           -    20.4     2.6 %   814.1
                                                                                                    
Total Europe,                                                                                       
Middle                                                                                              
                                                                                                    
East & Africa -  1,506.6       4.5             -           0.6           -    49.9     3.3 % 1,561.6
              CL                                                                                    
                                                                                                    
              -    691.4       4.9             -          13.2           -  (13.7)   (2.0) %   695.8
              FM                                                                                    
                                                                                                    
                 2,198.0       9.4             -          13.8           -    36.2     1.6 % 2,257.4
                                                                                                    
Americas      -    658.2    (29.4)          22.5             -           -    56.1     8.9 %   707.4
              CL                                                                                    
                                                                                                    
              -    921.5    (37.0)           0.6          25.0           -   (6.2)   (0.7) %   903.9
              FM                                                                                    
                                                                                                    
                 1,579.7    (66.4)          23.1          25.0           -    49.9     3.3 % 1,611.3
                                                                                                    
Asia Pacific  -     67.6       0.4             -             -         2.2    19.0    27.9 %    89.2
              CL                                                                                    
                                                                                                    
              -    485.6    (20.3)          25.7             -        40.8    93.8    20.2 %   625.6
              FM                                                                                    
                                                                                                    
                   553.2    (19.9)          25.7             -        43.0   112.8    21.2 %   714.8
                                                                                                    
Total         -  2,232.4    (24.5)          22.5           0.6         2.2   125.0     5.7 % 2,358.2
Logistics     CL                                                                                    
                                                                                                    
              -  2,098.5    (52.4)          26.3          38.2        40.8    73.9     3.6 % 2,225.3
              FM                                                                                    
                                                                                                    
                 4,330.9    (76.9)          48.8          38.8        43.0   198.9     4.7 % 4,583.5
                                                                                                    
Environmental      103.0         -             -             -           -     1.3     1.3 %   104.3
                                                                                                    
Continuing       4,433.9    (76.9)          48.8          38.8        43.0   200.2     4.6 % 4,687.8
operations                                                                                          
                                                                                                    
Discontinued       106.0       1.4             -             -      (74.6)       -       -      32.8
operations                                                                                          
                                                                                                    
Total            4,539.9    (75.5)          48.8          38.8      (31.6)   200.2     4.5 % 4,720.6
                                                                                                    

Turnover between segments is not material.

Description of Exel's segmental analysis

Exel's segmental analysis splits logistics activities between contract
logistics and freight management.

Contract logistics (CL) includes ground-based supply chain management services,
such as integrated warehousing and transportation, just in time services,
sub-assembly and other value added activities.

Freight management (FM) includes airfreight and seafreight forwarding, customs
broking, transportation management (including US road and rail) and specialist
mail and express services.

Due to the comprehensive range of services provided to customers within
individual contracts there are some cross-overs between these two segments but
these are relatively small.

The restatements of Asia Pacific contract logistics and freight management
represent the incremental results of Exel-Sinotrans, following the
reclassification of the Group's investment in the company as a joint venture;
previously Exel-Sinotrans was included in the Group's results as an associated
undertaking.  The impact of the restatements on the Group's results is an
increase in turnover of �43.0m.  There was no change to the Group's profit for
the financial year due to this reclassification.

Discontinued operations are the German chilled food logistics business which
was closed in 2002, and the German frozen food logistics business which was
sold in 2001.


Notes to the preliminary announcement (continued)

Segmental information (continued)

Analysis of change in operating profit before goodwill

                                              New     Increment   Movement in                         
                                                                                                      
                                     Acquisitions       on 2001  discontinued                         
                                                                                                      
                     2001  Exchange          2002  acquisitions    Operations        Organic      2002
                                                                                      change          
                                                                                                      
                       �m        �m            �m            �m            �m     �m       %        �m
                                                                                                      
Logistics                                                                                             
                                                                                                      
Europe, Middle                                                                                        
East                                                                                                  
                                                                                                      
& Africa                                                                                              
                                                                                                      
UK & Ireland    -    56.1         -             -             -             -    3.3     5.9  %   59.4
                CL                                                                                    
                                                                                                      
                -     5.8       0.1             -           0.1             -    0.1     1.7  %    6.1
                FM                                                                                    
                                                                                                      
                     61.9       0.1             -           0.1             -    3.4     5.5  %   65.5
                                                                                                      
Continental                                                                                           
Europe                                                                                                
                                                                                                      
& Africa        -     8.2       0.2             -           0.2             -  (7.9)  (94.0)  %    0.7
                CL                                                                                    
                                                                                                      
                -     6.2       0.1             -           0.4             -    5.5    87.3  %   12.2
                FM                                                                                    
                                                                                                      
                     14.4       0.3             -           0.6             -  (2.4)  (16.3)  %   12.9
                                                                                                      
Total Europe,                                                                                         
Middle                                                                                                
                                                                                                      
East & Africa   -    64.3       0.2             -           0.2             -  (4.6)   (7.1)  %   60.1
                CL                                                                                    
                                                                                                      
                -    12.0       0.2             -           0.5             -    5.6    45.9  %   18.3
                FM                                                                                    
                                                                                                      
                     76.3       0.4             -           0.7             -    1.0     1.3  %   78.4
                                                                                                      
Americas        -    37.1     (1.6)           1.5             -             -  (2.2)   (6.2)  %   34.8
                CL                                                                                    
                                                                                                      
                -    18.6     (1.0)           2.0           0.6             -  (2.5)  (14.2)  %   17.7
                FM                                                                                    
                                                                                                      
                     55.7     (2.6)           3.5           0.6             -  (4.7)   (8.9)  %   52.5
                                                                                                      
Asia Pacific    -     2.3       0.1             -             -             -    0.3    12.5  %    2.7
                CL                                                                                    
                                                                                                      
                -    26.7     (1.3)           2.0             -             -    5.6    22.0  %   33.0
                FM                                                                                    
                                                                                                      
                     29.0     (1.2)           2.0             -             -    5.9    21.2  %   35.7
                                                                                                      
Total Logistics -   103.7     (1.3)           1.5           0.2             -  (6.5)   (6.3)  %   97.6
                CL                                                                                    
                                                                                                      
                -    57.3     (2.1)           4.0           1.1             -    8.7    15.8  %   69.0
                FM                                                                                    
                                                                                                      
                    161.0     (3.4)           5.5           1.3             -    2.2     1.4  %  166.6
                                                                                                      
Environmental        14.7         -             -             -             -    0.8     5.4  %   15.5
                                                                                                      
                    175.7     (3.4)           5.5           1.3             -    3.0     1.7     182.1
                                                                                                      
Pensions credit      34.5         -             -             -             -    1.5     4.3  %   36.0
(UK)                                                                                                  
                                                                                                      
Continuing                                                                                            
operations                                                                                            
                                                                                                      
before goodwill     210.2     (3.4)           5.5           1.3             -    4.5     2.2  %  218.1
                                                                                                      
Discontinued        (2.5)         -             -             -           2.5      -       -         -
operations                                                                                            
                                                                                                      
Goodwill           (20.3)       0.5         (1.8)         (3.0)             -  (1.0)   (5.1)  % (25.6)
                                                                                                      
Total               187.4     (2.9)           3.7         (1.7)           2.5    3.5     1.9  %  192.5
                                                                                                      


Notes to the preliminary announcement (continued)

Segmental information (continued)

                     Operating profit           Net assets           Net assets
                                                                               
                       after goodwill      before goodwill       after goodwill
                                                                               
                      2002       2001     2002        2001     2002        2001
                                                (restated)           (restated)
                                                                               
By business             �m         �m       �m          �m       �m          �m
sector                                                                         
                                                                               
                                                                               
                                                                               
Logistics                                                                      
                                                                               
Europe,                                                                        
Middle East &                                                                  
Africa                                                                         
                                                                               
 UK & Ireland -       59.1       55.9    148.9       187.9    150.2       189.8
              CL                                                               
                                                                               
              -        3.6        3.8      7.9         9.5     36.8        40.7
              FM                                                               
                                                                               
                      62.7       59.7    156.8       197.4    187.0       230.5
                                                                               
 Continental  -      (0.6)        8.0     92.6       105.0     96.0       108.7
 Europe &     CL                                                               
 Africa                                                                        
                                                                               
              -       10.9        5.3     35.0        38.7     52.9        57.1
              FM                                                               
                                                                               
                      10.3       13.3    127.6       143.7    148.9       165.8
                                                                               
  Total                                                                        
  Europe,                                                                      
  Middle East                                                                  
                                                                               
     & Africa -       58.5       63.9    241.5       292.9    246.2       298.5
              CL                                                               
                                                                               
              -       14.5        9.1     42.9        48.2     89.7        97.8
              FM                                                               
                                                                               
                      73.0       73.0    284.4       341.1    335.9       396.3
                                                                               
Americas      -       34.0       37.1    105.3       136.3    163.4       136.3
              CL                                                               
                                                                               
              -        1.5        4.4     55.4        32.7    302.1       318.2
              FM                                                               
                                                                               
                      35.5       41.5    160.7       169.0    465.5       454.5
                                                                               
Asia Pacific  -        2.1        1.8      6.4         6.7     17.0        16.6
              CL                                                               
                                                                               
              -       32.3       26.3      6.8        16.1     24.0        21.7
              FM                                                               
                                                                               
                      34.4       28.1     13.2        22.8     41.0        38.3
                                                                               
Total         -       94.6      102.8    353.2       435.9    426.6       451.4
Logistics     CL                                                               
                                                                               
              -       48.3       39.8    105.1        97.0    415.8       437.7
              FM                                                               
                                                                               
                     142.9      142.6    458.3       532.9    842.4       889.1
                                                                               
Environmental         13.6       12.8     29.9        18.6     61.6        52.2
                                                                               
                     156.5      155.4    488.2       551.5    904.0       941.3
                                                                               
Pensions              36.0       34.5    361.0       324.4    361.0       324.4
credit (UK)                                                                    
                                                                               
Continuing           192.5      189.9    849.2       875.9  1,265.0     1,265.7
operations                                                                     
before goodwill                                                                
                                                                               
Discontinued             -      (2.5)    (5.9)       (6.1)    (5.9)       (6.1)
operations                                                                     
                                                                               
Goodwill                 -          -    415.8       389.8        -           -
                                                                               
Total                192.5      187.4  1,259.1     1,259.6  1,259.1     1,259.6
                                                                               
Non-operating                          (343.7)     (382.4)  (343.7)     (382.4)
net                                                                            
liabilities                                                                    
                                                                               
Net assets                               915.4       877.2    915.4       877.2
                                                                               

Net assets by business sector comprise intangible and tangible assets, stocks
and debtors less creditors and provisions.  Non-operating net liabilities
comprise other investments, net debt, taxation, dividends and related items.


Notes to the preliminary announcement (continued)

Exceptional items

                                                                   2002    2001
                                                                               
                                                                     �m      �m
                                                                               
Profit on disposals of fixed assets in continuing operations        0.9     8.6
                                                                               
Loss on termination and disposals of discontinued operations                   
                                                                               
Loss on termination of German chilled food logistics business     (9.0)       -
                                                                               
Less 2001 provision                                                 9.0       -
                                                                               
                                                                      -       -
                                                                               
Loss on disposal of German frozen food logistics business                      
(after                                                                         
                                                                               
reinstated goodwill of �16.1m)                                        -  (23.1)
                                                                               
Allied Pickfords disposal further consideration                       -    12.3
                                                                               
Profit on disposal of Cory Towage                                     -     2.4
                                                                               
Other disposals (2001: including goodwill �2.7m)                      -   (2.3)
                                                                               
                                                                      -  (10.7)
                                                                               
Provision for loss on operations to be discontinued                            
                                                                               
German chilled food logistics business                                -   (9.0)
                                                                               
German chilled food logistics business - reinstated goodwill          -   (1.2)
written off                                                                    
                                                                               
                                                                      -  (10.2)
                                                                               
Costs of reorganisation in continuing operations                      -  (15.0)
                                                                               
Amounts written off investments in continuing operations                       
                                                                               
Investment in Allied Worldwide                                        -  (10.7)
                                                                               
Total exceptional items                                             0.9  (38.0)
                                                                               

Tax on profit on ordinary activities

                                                        2002   2001
                                                                   
                                                          �m     �m
                                                                   
UK tax                                                  33.9   28.7
                                                                   
Foreign tax                                             23.5   24.4
                                                                   
                                                        57.4   53.1
                                                                   
The tax charge is analysed as follows:                             
                                                                   
     On ordinary activities before exceptional items    59.5   56.9
                                                                   
     On exceptional items                              (2.1)  (3.8)
                                                                   
                                                        57.4   53.1
                                                                   


Notes to the preliminary announcement (continued)

Earnings before interest, tax, depreciation and amortisation (EBITDA)

                                                 2002   2001
                                                            
                                                   �m     �m
                                                            
Profit on ordinary activities before taxation   180.6  128.3
                                                            
Add back                                                    
                                                            
Depreciation                                    100.5   96.5
                                                            
Amortisation of goodwill                         25.6   20.3
                                                            
Amortisation of fixed asset investments         (0.3)      -
                                                            
Exceptional items                               (0.9)   38.0
                                                            
Net interest                                     12.8   21.1
                                                            
EBITDA before exceptional items                 318.3  304.2
                                                            

Earnings per share

                                                     2002                      2001
                                                                                   
                                             Earnings per              Earnings per
                                                    share                     share
                                                                                   
                                 Earnings  Basic  Diluted  Earnings  Basic  Diluted
                                                                                   
                                       �m  Pence    pence        �m  pence    pence
                                                                                   
Profit for the financial year       116.8   39.5     39.3      67.4   22.9     22.8
                                                                                   
Add back                                                                           
                                                                                   
   Amortisation of goodwill          25.6    8.7      8.6      20.3    6.9      6.9
                                                                                   
   Exceptional items                (0.9)  (0.3)    (0.3)      38.0   12.9     12.8
                                                                                   
   Tax on exceptional items         (2.1)  (0.7)    (0.7)     (3.8)  (1.3)    (1.3)
                                                                                   
Before goodwill and exceptional     139.4   47.2     46.9     121.9   41.4     41.2
items                                                                              
                                                                                   
                                                                      2002     2001
                                                                                   
Weighted average number of shares                                                  
(millions)                                                                         
                                                                                   
Basic average number of shares                                       295.5    294.2
                                                                                   
Dilutive potential ordinary                                            1.7      1.9
shares                                                                             
                                                                                   
Diluted average number of                                            297.2    296.1
shares                                                                             
                                                                                   

Basic earnings per share of 39.5p (2001: 22.9p) represents the profit
attributable to each share.  It is based on the profit attributable to ordinary
shareholders for the financial year of �116.8m (2001: �67.4m) divided by 295.5m
(2001: 294.2m) being the weighted average number of shares in issue during the
year, excluding shares held by the Group in share ownership plan trusts.

Profit on ordinary activities before taxation and earnings per share, both
before goodwill amortisation and exceptional items, are provided in addition to
the earnings per share required by FRS 14 because, in the opinion of the
Directors, they will assist shareholders to consider more readily the
underlying performance trends of the Group.


Notes to the preliminary announcement (continued)

Analysis of net debt

                At 1         Acquisitions            Non-cash     Exchange    At 31
                 Jan                                                            Dec
                                                                                   
                2002   Cash           and      New  movements  differences     2002
                       flow     disposals   leases                                 
                                                                                   
                  �m     �m            �m       �m         �m           �m       �m
                                                                                   
Cash at bank   128.5   47.2                                         (26.0)    149.7
and in hand                                                                        
                                                                                   
Overdrafts    (25.6)  (0.3)                                            1.4   (24.5)
                                                                                   
               102.9   46.9                                         (24.6)    125.2
                                                                                   
Loans        (306.8)   16.0         (1.6)        -      (0.2)         12.5  (280.1)
                                                                                   
Finance       (23.4)    3.6             -    (2.4)        3.5        (0.9)   (19.6)
leases                                                                             
                                                                                   
Current          7.5   14.0             -        -          -        (0.7)     20.8
asset                                                                              
investments                                                                        
                                                                                   
Total        (219.8)   80.5         (1.6)    (2.4)        3.3       (13.7)  (153.7)
                                                                                   

Summary of second half results

                                                                  2002     2001
                                                                               
                                                                    �m       �m
                                                                               
Turnover                                                                       
                                                                               
Continuing operations                                          2,452.9  2,258.8
                                                                               
Discontinued operations                                            5.9     54.8
                                                                               
                                                               2,458.8  2,313.6
                                                                               
Total operating profit                                                         
                                                                               
Continuing operations before goodwill and exceptional items      110.6    107.3
                                                                               
Discontinued operations before goodwill and exceptional              -    (1.2)
items                                                                          
                                                                               
Goodwill amortisation                                           (13.8)   (11.1)
                                                                               
                                                                  96.8     95.0
                                                                               
Exceptional items                                                  0.1   (36.4)
                                                                               
Net interest                                                     (5.6)    (8.1)
                                                                               
Profit before tax, goodwill and exceptional items                105.0     98.0
                                                                               
Goodwill amortisation                                           (13.8)   (11.1)
                                                                               
Exceptional items                                                  0.1   (36.4)
                                                                               
Profit on ordinary activities before taxation                     91.3     50.5
                                                                               
Tax on profit on ordinary activities                            (29.0)   (28.7)
                                                                               
Profit on ordinary activities after taxation                      62.3     21.8
                                                                               
Equity minority interests                                        (3.2)    (4.3)
                                                                               
Profit for the financial year                                     59.1     17.5
                                                                               
Dividends                                                       (45.2)   (42.2)
                                                                               
Transferred to/(from) reserves                                    13.9   (24.7)
                                                                               


Notes to the preliminary announcement (continued)

Pro-forma FRS 17 profit and loss account

                                            Half year to     Half year to     2002
                                            June                 December         
                                                                                  
                                                    2002             2002         
                                                                                  
                                                      �m               �m       �m
                                                                                  
Turnover                                                                          
                                                                                  
Continuing operations                            2,234.9          2,452.9  4,687.8
                                                                                  
Discontinued operations                             26.9              5.9     32.8
                                                                                  
                                                 2,261.8          2,458.8  4,720.6
                                                                                  
Total operating profit                                                            
                                                                                  
Continuing operations before goodwill and           72.7             75.4    148.1
exceptional items                                                                 
                                                                                  
Goodwill amortisation                             (11.8)           (13.8)   (25.6)
                                                                                  
                                                    60.9             61.6    122.5
                                                                                  
Exceptional items                                    0.8              0.1      0.9
                                                                                  
Net interest                                       (7.2)            (5.6)   (12.8)
                                                                                  
Finance income FRS 17                               30.2             30.3     60.5
                                                                                  
Profit before tax, goodwill and exceptional         95.7            100.1    195.8
items                                                                             
                                                                                  
Goodwill amortisation                             (11.8)           (13.8)   (25.6)
                                                                                  
Exceptional items                                    0.8              0.1      0.9
                                                                                  
Profit on ordinary activities before                84.7             86.4    171.1
taxation                                                                          
                                                                                  
Tax on profit on ordinary activities              (27.1)           (27.4)   (54.5)
                                                                                  
Profit on ordinary activities after                 57.6             59.0    116.6
taxation                                                                          
                                                                                  
Equity minority interests                          (3.2)            (3.2)    (6.4)
                                                                                  
Profit for the financial period                     54.4             55.8    110.2
                                                                                  

Pro-forma earnings per share

                                                            pence  pence  pence
                                                                               
Basic earnings per share                                     18.4   18.9   37.3
                                                                               
Basic earnings per share before goodwill and exceptional     21.6   23.3   44.9
items                                                                          
                                                                               
Earnings                                                       �m     �m     �m
                                                                               
Profit for the financial period                              54.4   55.8  110.2
                                                                               
Add back                                                                       
                                                                               
Amortisation of goodwill                                     11.8   13.8   25.6
                                                                               
Exceptional items                                           (0.8)  (0.1)  (0.9)
                                                                               
Tax on exceptional items                                    (1.7)  (0.4)  (2.1)
                                                                               
Before goodwill and exceptional items                        63.7   69.1  132.8
                                                                               
Weighted average number of shares (millions)                295.3  295.7  295.5
                                                                               



END