Business Review

This business review (which is incorporated by reference into the Directors’ report) has been prepared to provide a fair review of the business of the Company and to describe the principal risks and uncertainties it faces. In doing so, it aims to provide a balanced and comprehensive analysis of the development and performance of the business of the Company during the 2007 financial year and the position of the Company at the end of the 2007 financial year, consistent with the size and complexity of its business. It has been prepared for the whole Group and therefore gives greater emphasis to those matters which are significant to GKN plc and its subsidiaries when viewed as a whole. The business review is addressed to and has been prepared for the members of the Company and it should not be relied upon by any other party or for any other purpose.

In 2007 GKN acquired the Teleflex Aerospace Manufacturing Group, a leading manufacturer of complex engine components such as these jet engine fan blades shown during the machining process.

Activitives and Objectives

Key Performance Indicators

Outer races for constant velocity joints (CVJs). GKN produces some 113 million CVJs every year, representing 40% of global production for the light vehicle market.

Changes in the Group

Group Performance