Chairman's Report

　　I am pleased to report that, although we had beenexpecting poor results for this half year because of slow growthin the world economy, the company has performed verysatisfactorily.Operating profits for this first half are in fact verymuch (19) with those for the corresponding (20) last year.Profits reached £l 15 million before tax, compared with £l 16.3million last year. Much of our success in the last six months can be (21) to the fact that all ourmajor construction projects remained on schedule. Particularly pleasing was the early (22)of amajor building contract in Canada.

　　The company has made good progress with the initiatives announced at the Annual GeneralMeeting. The majority of shareholders (23) the Board's decision to sell the company's loss-makingengineering (24). It was the Board's belief that the company would (25) most benefit by (26) itsresources on the expansion of its construction activities. Negotiations with a potential buyer beganin February and are now at a critical (27).However, we feel that we are not as yet in a (28) tocomment on what the outcome is likely to be.

　　In June, we made a successful (29) for the Renishaw Construction Company of Hong KongSAR, in order to give us greater (30) to markets in South East Asia. We still have sufficientresources to pursue our growth (31) and are at present (32) several other business opportunitieswhich, like Renishaw Construction, would (33) new markets to us.

　　19.A in order B on track C in line D on target

　　20.A session B term C season D period

　　21.A attributed B referred C assigned D designated

　　22.A termination B ending C completion D finalising

　　23.A confirmed B maintained C agreed D supported

　　24.A portion B component C sector D division

　　25.A have B gain C find D earn

　　26.A focusing B directing C pointing D strengthening

　　27.A height B step C edge D stage

　　28.A condition B point C position D capacity

　　29.A request B price C demand D bid

　　30.A access B approach C admission D entrance

　　31.A strategy B process C promotion D system

　　32.A inquiring B deliberating C exploring D searching

　　33.A send B open C provide D give