The statement showed that growth of at least 3% in underlying operating is profit expected from UK ports and transport activities for the six months ending 30 June 2005.

Underlying operating profit from property development is expected to be at least £5m compared to £0.4m in the first six months of last year, due to the phasing of property sales.

Pre-tax profit for the half year to 30 June 2005 is expected to be ahead of current market expectations, led by the phasing of property sales.

The group's two major projects at the Port of Immingham, involving a total investment of £87m, continue to be on schedule and on budget. Both facilities are due to become operational during 2006.

Some £128.1m of the £205m share repurchase programme announced during 2004 has been completed.

Overall ABP's core UK ports business has continued to grow.

Volumes have increased in a number of areas, including containers, coal and iron ore imports, agribulk exports and steel products. ABP expects roll-on/roll-off volumes and stevedoring activity to be lower than in the first half of 2004, due to the previously reported departure of a customer from the Port of Immingham. The underlying operating profit of the UK ports and transport operations are expected to increase by at least 3% during the first half of 2005.

ABP's £400m, 10 year investment plan for UK ports remains on track. At the Port of Immingham, construction of the £27.5m roll-on/roll-off facility is proceeding well. ABP is also investing a further £15m in coal handling equipment for Phase 2 of Humber International Terminal at Immingham following an agreement with Scottish & Southern Energy.

This brings total investment in Phase 2 of Humber International Terminal to £59.5m. Both projects are on budget and on schedule to become operational next year.

Following the government's 'minded to approve' notification, and with the UK's general election now over, ABP expects to receive a final decision on its planned £30 to £35m development of a shortsea riverside container terminal at the Port of Hull before the end of this year.

ABP's policy of selling non-operational, port-located property and exploiting the potential of its property portfolio continues.

MJ Information No: 20915