Revenue for continuing operations increased by 10 per cent to £1,510.8 million (2004: £1,373.8 million). Underlying operating profits increased by 2 per cent to £129.6 million after absorbing additional raw material costs in Materials Technology of £12 million. Underlying operating margins reduced to 8.6 per cent due, in particular, to increased raw material costs in Fiberweb and higher fuel costs in our Aviation businesses which together reduced margins by just over 1 percentage point. After restructuring costs and nonrecurring items of £48.3 million (2004: £28.6 million), operating profits from continuing operations were £81.3 million (2004: £98.5 million).
The Group produced underlying profit before tax from continuing operations of £108.2 million (2004: £115.2 million) with higher interest costs (principally due to US$ interest rates) which increased from £11.9 million in 2004 to £21.4 million in 2005, the main reason for the reduction in headline earnings. Adjusted earnings per share from continuing operations were 17.9p (2004 18.3p). For the first time in many years movement in exchange rates had little impact on the comparison with the prior period with the average dollar rate ending the year at $1.82 (2004: $1.83) and the euro was €1.46 (2004: €1.47). Total profit for the period was £75.3 million (£67.9 million) with unadjusted earnings per share of 15.9 pence, up 11 per cent on the prior period.
Our free cash flow at £86.3 million recovered well in the second half of the year as anticipated and was some 40 per cent higher than the prior period (2004: £60.0 million). The improvement against the prior period reflected a significantly improved working capital position (2005: inflow £14.2 million) (2004: outflow £38.4 million) partially offset by higher capital expenditure of £73.3 million (2004: £61.7 million). We invested £28 million in acquisitions during the year to expand our business aviation network and to add to our parts distribution portfolio.