I think I would consider it knackered - though I am no expert. As it is a steel lugged frame it should be possible to insert a new tube if you want to keep it going - Argos Cycles in Bristol ( http://www.argoscycles.co.uk ) can probably do the repair, they do a collect and return service. Unfortnately their website is offline at the moment, their contact details are:
UNIT 12, RIVERSIDE BUS. PARK, ST. ANNES RD, BRISTOL, BS4 4AB 01179 724730
Ok guys thanks for the replies, always thought a steel frame would last a lifetime so I guess I got that wrong. Anyhow got a old Dawes 531 frame knocking about so I will build that up with the components from this bike and decide what to do with this frame at a later date.