Audit of Prelim Statement

Guinness Peat Group PLC
30 March 2007


                     GUINNESS PEAT GROUP PLC ANNUAL RESULTS





On 27 February 2007 GPG released its Preliminary Announcement of Final Results
for the year ended 31 December 2006.  Contained within that announcement were an
unaudited Consolidated Balance Sheet, Consolidated Income Statement,
Consolidated Statement of Recognised Income & Expense and Consolidated Cash Flow
Statement (together the "Principal Financial Statements") for the year ended 31
December 2006.



Following a request to GPG from the Australian Securities Exchange, the
Company's auditors, Deloitte & Touche LLP, have written to the Board to confirm
that the Principal Financial Statements are consistent, in all material
respects, with those in the full Annual Report & Financial Statements of
Guinness Peat Group plc on which they have now expressed an unmodified opinion
and which will be posted to shareholders on 13 April 2007 ("the 2007 GPG Annual
Report & Accounts").  The 2007 GPG Annual Report & Accounts will also be sent to
the three stock exchanges on which the Company's shares are listed on that date
and will be available for inspection on GPG's website at www.gpgplc.com.



A copy of the Auditor's Report and the Principal Financial Statements to which
it relates is attached herewith.





Richard Russell
Company Secretary
30 March 2007








 INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF DIRECTORS OF GUINNESS PEAT GROUP
               PLC ON EXTRACT OF THE PRELIMINARY FINANCIAL REPORT





We have examined the accompanying extract of the preliminary financial report of
Guinness Peat Group plc, comprising the consolidated balance sheet, the
consolidated income statement, the consolidated statement of recognised income
and expense and the consolidated cash flow statement, which is consistent with
the full Annual Report and Financial Statements of Guinness Peat Group plc for
the year ended 31 December 2006.  We expressed an unmodified auditor's opinion
on that financial report in our auditor's report dated 30 March 2007.



This report is made solely to the Board of Directors of Guinness Peat Group plc
in accordance with our letter of engagement dated 30 November 2006, as amended
by an addendum dated 27 March 2007.  Our work has been undertaken so that we
might state to the Board of Directors those matters we are required to state to
them in an auditors' report and for no other purpose.  To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Board of Directors as a body for our work, for this report, or for the
opinions we have formed.



The Responsibility of the Directors of Guinness Peat Group plc  for the
Preliminary Financial Report



The Directors of Guinness Peat Group plc are responsible for the preparation and
presentation of the preliminary financial report in accordance with the
disclosure requirements of the Listing Rules of the UK Financial Services
Authority and the Listing Rules of the Australian Securities Exchange.



Auditor's Responsibility



Our responsibility in relation to the extract of the preliminary financial
report is to express an opinion based on our procedures, which were conducted in
accordance with International Auditing Standard 800 applicable to summarised
financial statements.



We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.



Auditor's Opinion



In our opinion, the information reported in the attached extract of the
preliminary financial report is consistent, in all material respects, with the
full Annual Report and Financial Statements from which it was derived.  For a
better understanding of the scope of our audit, this auditor's report should be
read in conjunction with our audit report on the full Annual Report and
Financial Statements when it is published.





Deloitte & Touche LLP
30 March 2007
London, UK



Guinness Peat Group plc
Consolidated Income Statement
                                                                               Unaudited                Unaudited
Year ended 31 December                                                              2006                    2005
                                                                                                         Restated **
                                                                                       £m                     £m
Continuing Operations

Revenue                                                                            1,356                   1,195

Cost of sales                                                                       (956)                   (825)

Gross profit                                                                         400                     370

Profit on disposal of investments and other net investment income                     45                      77

Distribution costs                                                                  (177)                   (179)
Administrative expenses                                                             (196)                   (150)

Operating profit                                                                      72                     118

Share of profit of joint ventures                                                      -                       4

Share of loss of associated undertakings                                              (1)                     (1)

Profit on sale of business - continuing operations                                     5                       1

Finance costs                                                                        (40)                    (43)

Profit before taxation from continuing operations                                     36                      79

Tax on profit from continuing operations                                             (12)                    (27)

Profit for the year from continuing operations                                        24                      52

Discontinued Operations
Gain on discontinued operations                                                       10                      44

Profit for the year                                                                   34                      96

Attributable to:
EQUITY HOLDERS OF THE PARENT                                                          36                      96
Minority interests                                                                    (2)                      -
                                                                                      34                      96

Earnings per Ordinary Share from continuing and discontinued
operations:
Basic                                                                               3.18p                   9.02p
Diluted                                                                             2.79p                   7.90p

Earnings per Ordinary Share from continuing operations:
Basic                                                                               2.28p                   4.90p
Diluted                                                                             2.03p                   4.69p

**      Restated to reflect changes in accounting policy - see note 1.





Guinness Peat Group plc
Consolidated Balance Sheet
                                                                                    Unaudited          Unaudited
31 December                                                                             2006               2005
                                                                                                        Restated     **
                                                                                          £m                 £m
NON-CURRENT ASSETS
Intangible assets                                                                         198                221
Property, plant and equipment                                                             391                426
Investments in associates                                                                 122                 62
Investments in joint ventures                                                              17                 26
Fixed asset investments                                                                   417                282
Derivative financial instruments                                                            6                  5
Deferred tax assets                                                                         6                  4
Pension surpluses                                                                          32                 33
Trade and other receivables                                                                18                 15
                                                                                        1,207              1,074

CURRENT ASSETS
Inventories                                                                               216                241
Trade and other receivables                                                               238                274
Current asset investments                                                                  19                 30
Derivative financial instruments                                                            3                  2
Cash and cash equivalents                                                                 254                253
                                                                                          730                800

Non-current assets classified as held for sale                                              3                 18

TOTAL ASSETS                                                                            1,940              1,892

CURRENT LIABILITIES
Trade and other payables                                                                  254                283
Current income tax liabilities                                                              9                  5
Capital notes                                                                               -                 99
Other borrowings                                                                          123                113
Provisions                                                                                 87                 90
                                                                                          473                590

NET CURRENT ASSETS                                                                        257                210

NON-CURRENT LIABILITIES
Trade and other payables                                                                   21                 24
Deferred tax liabilities                                                                   18                  8
Capital notes                                                                             201                 84
Other borrowings                                                                          150                217
Retirement benefit obligations:
     Funded schemes                                                                        14                 29
     Unfunded schemes                                                                      58                 66
Provisions                                                                                 37                 45
                                                                                          499                473



TOTAL LIABILITIES                                                                         972              1,063

NET ASSETS                                                                                968                829






Guinness Peat Group plc
Consolidated Balance Sheet
                                                                                      Unaudited        Unaudited
31 December                                                                                2006            2005
                                                                                                        Restated **
                                                                                            £m               £m
EQUITY
Share capital                                                                               57               49
Share premium account                                                                       61               16
Translation reserve                                                                        (24)              12
Unrealised gains reserve                                                                   188               86
Other reserves                                                                             303              306
Retained earnings                                                                          291              251

EQUITY SHAREHOLDERS' FUNDS                                                                 876              720
Minority interests                                                                          92              109

TOTAL EQUITY                                                                               968              829


Net asset backing per share *                                                            76.44p           66.87p

*      The net asset backing per share for December 2005 has been adjusted for the 2006 Capitalisation Issue.
**     Restated to reflect changes in accounting policy - see note 1.







Guinness Peat Group plc
Consolidated Statement of Recognised Income and Expense
                                                                                     Unaudited          Unaudited
Year ended 31 December                                                                   2006               2005
                                                                                                         Restated    **
                                                                                            £m                 £m

 Gains on revaluation of available-for-sale investments                                   109                 50
 (Losses)/gains on cash flow hedges                                                        (2)                 3
 Exchange (losses)/gains on translation of foreign operations                             (36)                21
 Actuarial gains on retirement benefit schemes                                              9                 49

 Net income recognised directly in equity                                                  80                123

 Transfers
 Transferred to profit or loss on sale of available-for-sale investments                   (7)               (57)
 Transferred to profit or loss on cash flow hedges                                          1                  -
 Profit for the year                                                                       34                 96

 Total recognised income and expense for the year                                         108                162


 Attributable to:
 Equity holders of the parent                                                             110                162
 Minority interests                                                                        (2)                 -

                                                                                          108                162



 IAS 32 and 39 transitional adjustments                                                                      105

 Attributable to:
 Equity holders of the parent                                                                                120
 Minority interests                                                                                          (15)

                                                                                                             105

**    Restated to reflect changes in accounting policy - see note 1





Guinness Peat Group plc
Consolidated Cash Flow Statement

                                                                                      Unaudited              Unaudited
Year ended 31 December                                                                     2006                   2005
                                                                                             £m                     £m

Cash inflow/(outflow) from operating activities
Net cash inflow from operating activities                                                   151                    227
Interest paid                                                                               (42)                   (42)
Taxation paid                                                                               (18)                   (25)
Net cash generated from operating activities                                                 91                    160

Cash inflow/(outflow) from investing activities
Dividends received from associates and joint ventures                                         5                      7
Capital expenditure and financial investment                                                (82)                   (60)
Acquisitions and disposals                                                                  (30)                   (81)
Net cash absorbed in investing activities                                                  (107)                  (134)

Cash inflow/(outflow) from financing activities
Issue of ordinary shares                                                                     48                      1
Equity dividends paid to Company's shareholders                                              (4)                    (4)
Dividends paid to minority interests                                                         (4)                    (6)
Increase/(decrease) in debt                                                                   9                    (58)
Net cash generated by/(absorbed in) financing activities                                     49                    (67)

Net increase/(decrease) in cash and cash equivalents                                         33                    (41)
Cash and cash equivalents at beginning of the year                                          238                     271
Exchange (losses)/gains on cash and cash equivalents                                        (30)                     8
Cash and cash equivalents at end of the year                                                241                    238




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