Net investment in foreign operations

Foreign exchange differences arising from the translation of the net
investment in foreign operations, and of related hedges, are taken to the translation reserve. Such differences are recognised in the income statement upon disposal of the foreign operation or settlement of the net investment.

The principal exchange rates against the Euro used in the statement of financial position and income statement are:

Currency per € 
           Statement of financial position        Income statement 
                            31 December                          31 December 
                          2012         2011                    2012         2011

US$                   1.3194      1.2939                  1.2932       1.3984
£                       0.8161      0.8353                  0.8119       0.8707