Notes to the accounts

14 Investments accounted for using the equity method

	2008 £m	2007 £m
Investments in associated companies
At start of period	12.0	14.0
Exchange adjustment	2.3	(0.3)
Share of results after tax	(1.0)	(0.5)
Dilution of interest	(0.9)	(1.2)
Acquisition of a controlling interest	(3.3)
At end of period	9.1	12.0

The Group acquired a controlling interest in an associate on 21 December 2007, and it has been consolidated as a subsidiary since that date.

	Year ended 31 July 2008 £m	Period ended 31 July 2007 £m
Group share of results of associated companies
Revenue	17.6	25.3
Operating costs and other income	(18.8)	(25.0)
Profit/(loss) before taxation	(1.2)	0.3
Taxation	0.2	(0.8)
Share of post-tax result from associated companies	(1.0)	(0.5)

Net assets and liabilities of associated companies

	2008 £m	2007 £m
Non-current assets	20.1	9.9
Current assets	24.8	36.9
Total assets	44.9	46.8
Non-current liabilities	(6.2)	(5.0)
Current liabilities	(7.9)	(16.5)
Total liabilities	(14.1)	(21.5)
Net assets	30.8	25.3

The above table principally represents the assets and liabilities of Cross Match Technologies, Inc. The Group share of those assets and liabilities attributable to Smiths Group is 34% (2007: 37%).

In 2007 the interest in Cross Match Technologies, Inc. was diluted as a result of warrants and options being exercised in the period.

Smiths Group divisions:
Smiths Detection, Smiths Medical, John Crane, Smiths Interconnect, Flex-Tek