EXHIBIT 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
HALF
YEAR YEAR HALF
YEAR YEAR YEAR YEAR 1993 1993 YEAR
1989 1990 1991 1992 (Pounds) (Pounds) 1994
(Pounds) (Pounds) (Pounds) (Pounds) # # (Pounds)
-------- -------- -------- -------- -------- -------- --------
UK GAAP
EARNINGS
Income from ordinary ac-
tivities before taxa-
tion................... 617 354 531 102 633 362 361
Adjustments to bring
associated undertakings
onto income received
basis.................. -1 -4 -2 -1 -2
Fixed Charges........... 329 281 300 271 183 105 45
--- --- --- --- --- --- ---
945 631 829 372 805 465 396
--- --- --- --- --- --- ---
FIXED CHARGES
Interest payable on long
term debt.............. 10 10 10 6 21 3 20
Interest payable on
short term borrowings
and other financing
costs.................. 28 23 31 25 30 13 20
Interest payable on
amounts due to the ICI
Group.................. 280 236 249 234 105 87 1
Interest elements of
operating lease
charges................ 11 12 10 6 7 2 4
--- --- --- --- --- --- ---
329 281 300 271 163 105 45
--- --- --- --- --- --- ---
Ratio................... 2.9 2.2 2.8 1.4 4.9 4.4 8.8
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# Restated for change in accounting policy. (UITF Abstract 6 "Accounting for
post-retirement benefits other than pensions" was adopted on January 1,
1994.)