The hazards attached to the forecasting of profits shall in no way detract from the necessity of maintaining the highest standards of accuracy and fair presentation in all communications to holders of relevant securities in an offer. A profit forecast shall be compiled with great care and objectivity by the directors, whose sole responsibility it is.

When an offer document has been posted, the reports shall be included in the document containing the forecast or, when the forecast has been made in a press announcement, in a document which shall be sent to holders of relevant securities with a minimum of delay after the announcement is published. The reports shall be accompanied by a statement that those making them have given and not withdrawn their consent to publication.

When a company includes a forecast in a document, any document subsequently sent out by that company in connection with that offer shall, except with the consent of the Panel, contain a statement by the directors that the forecast remains valid for the purpose of the offer and that the accountants and others who reported on the forecast have indicated that they have no objection to their reports continuing to apply.

Even when no particular figure is mentioned or even if the word "profit" is not used, certain forms of words may constitute a profit forecast, particularly when considered in context. Examples are "profits will be somewhat higher than last year" and "performance in the second half-year is expected to be similar to our performance and results in the first half-year" (when interim figures have already been published). Whenever a form of words puts a floor under, or a ceiling on, the likely profits of a particular period or contains the data necessary to calculate an approximate figure for future profits, it will be treated by the Panel as a profit forecast which shall be reported on. In cases of doubt the Panel shall be consulted.

Except with the consent of the Panel, any relevant profit forecast which has been made before the commencement of the offer period shall be examined, repeated and reported on in the document sent to holders of relevant securities.

An estimate of profit for a period which has already expired shall be treated as a profit forecast.

Except with the consent of the Panel, any profit figures published during an offer period shall be audited, or, if unaudited, shall be reported on by the auditors on a basis consistent with previous years.

A profit forecast for a limited period (e.g. the following quarter) is subject to this Rule.

Except with the consent of the Panel, a dividend forecast will be considered to be a profit forecast.

When a forecast of profit before taxation appears in a document addressed to holders of relevant securities, it shall be accompanied by a forecast of earnings per share arising from the said profit.

Whenever a profit forecast is made in relation to a period in which trading has already commenced, any previously published profit figures in respect of any expired part of that trading period, together with comparable figures for the same part of the preceding year, shall be stated.

In general, all the relevant provisions of this rule apply also to a profit forecast prepared on an inflation adjusted basis. The basis of computation underlying such a forecast shall be stated. Any such forecast shall also be accompanied by a corresponding forecast prepared on an historical cost basis.