Final Results - Part 2

GUS PLC
29 May 2002

PART 2

GUS plc

GROUP PROFIT AND LOSS ACCOUNT

for the year ended 31 March 2002


                                                                   2002            2002           2002           2001
                                                                 Before     Exceptional          Total     (Restated)
                                                            Exceptional           Items                      (Note 1)
                                                                  Items        (Note 2)
                                                                     £m              £m             £m             £m


Turnover - continuing operations                               6,457.3                -       6,457.3        6,040.6


Cost of sales                                                 (3,868.9)               -      (3,868.9)      (3,638.0)

Gross profit                                                   2,588.4                -       2,588.4        2,402.6


Net operating expenses before goodwill charge                 (2,028.3)          (36.4)      (2,064.7)      (1,925.0)

Goodwill charge                                                  (99.4)          (27.5)        (126.9)         (92.3)

Net operating expenses                                        (2,127.7)          (63.9)      (2,191.6)      (2,017.3)



Operating profit - continuing operations                         460.7           (63.9)         396.8          385.3


Share of operating profit of BL Universal PLC (joint              24.8                -          24.8           29.6
venture)

Share of operating profit of associated undertakings              33.7                -          33.7           11.6

(Loss)/profit on sale of fixed asset investments                      -           (2.1)          (2.1)           4.6

Trading profit                                                   519.2           (66.0)         453.2          431.1


Loss on sale of businesses                                            -           (6.6)          (6.6)         (50.3)

Profit on ordinary activities before interest                    519.2           (72.6)         446.6          380.8


Net interest                                                     (66.5)               -         (66.5)         (71.0)

Profit on ordinary activities before taxation                    452.7           (72.6)         380.1          309.8


Tax on profit on ordinary activities
        UK                                                                                      (75.3)         (60.6)
        Overseas                                                                                (46.8)         (45.5)
                                                                                               (122.1)        (106.1)

Profit on ordinary activities after taxation                                                    258.0          203.7


Equity minority interests                                                                        (1.4)             -

Profit for the year                                                                             256.6          203.7


Dividends                                                                                      (216.4)        (209.9)

Retained profit/(loss) for the year                                                              40.2           (6.2)

Profit before amortisation of goodwill,
exceptional items and taxation                                                                  552.1          486.8


Earnings per share

-   Basic                                                                                       25.7p          20.3p
-   Diluted                                                                                     25.5p          20.3p

Earnings per share before amortisation of goodwill
and exceptional items
-   Basic                                                                                       41.7p          37.2p
-   Diluted                                                                                     41.4p          37.2p

Dividend per share   - Interim                                                                   6.5p           6.2p
                     - Final                                                                    15.2p          14.8p
                     - Total                                                                    21.7p          21.0p

GUS plc

GROUP BALANCE SHEET

at  31 March 2002


                                                             2002            2002            2001            2001
                                                               £m              £m              £m              £m


Fixed assets


Goodwill                                                                  1,421.5                         1,516.2

Other intangible assets                                                     191.7                           178.9

Tangible assets                                                             847.1                           737.4

Investment in joint venture

   Share of gross assets                                    416.1                           525.0
   Share of gross liabilities                              (308.4)                         (409.8)
                                                            107.7                           115.2
   Loans to joint venture                                    87.6           195.3            93.8           209.0

Other investments                                                           115.4                            87.9
                                                                          2,771.0                         2,729.4


Current assets


Stocks                                                                      590.4                           570.8

Debtors  - due within one year                                            1,705.5                         1,561.3
         - due after more than one year                                     200.0                           221.9

Securitised receivables                                     263.4                           646.7
Less: non-recourse borrowings                              (201.0)           62.4          (581.5)           65.2

Investments                                                                  53.1                            53.3

Bank balances and cash                                                      202.6                           304.7
                                                                          2,814.0                         2,777.2

Creditors
Amounts due within one year                                              (2,171.3)                       (2,236.2)
Net current assets                                                          642.7                           541.0

Total assets less current liabilities                                     3,413.7                         3,270.4

Creditors - amounts due after more than one year                           (864.6)                         (713.5)

Provisions for liabilities and charges                                     (126.5)                         (134.0)

Net assets                                                                2,422.6                         2,422.9


Capital and reserves


Called up share capital                                                     251.7                           251.6
Share premium account                                                         3.4                             1.8
Revaluation reserve                                                         120.9                           136.6
Profit and loss account                                                   2,041.2                         2,032.9
Shareholders' funds                                                       2,417.2                         2,422.9



Minority interests                                                            5.4                               -

Capital employed                                                          2,422.6                         2,422.9





GUS plc

GROUP CASH FLOW STATEMENT

for the year ended 31 March 2002




                                                                                        2002               2001
                                                                                          £m                 £m

Cash flow from operating activities

    Operating profit                                                                   396.8             385.3
    Depreciation and goodwill charges                                                  338.7             308.3
    Increase in working capital                                                       (195.0)            (47.9)
                                                                                       540.5             645.7
Dividends received from associated undertakings                                         22.8               6.9

Returns on investments and servicing of finance                                        (43.0)            (54.6)

Taxation                                                                               (82.0)            (94.7)

Capital expenditure                                                                   (321.8)           (267.6)

Financial investment                                                                   (15.5)            (38.5)

Acquisition of subsidiaries                                                            (34.3)           (172.7)

Disposal of subsidiaries                                                                 6.3             228.9

Dividends paid                                                                        (212.8)           (206.4)

Cash (outflow)/inflow before management of liquid resources and financing             (139.8)             47.0


Management of liquid resources                                                         (18.0)            118.9

Financing   - issue of shares                                                            1.7               1.5
            - change in debt and lease financing                                        74.6            (195.5)


Decrease in cash                                                                       (81.5)            (28.1)


Reconciliation of net cash flow to movement in net debt


Decrease in cash                                                                       (81.5)            (28.1)

Cash (inflow)/outflow from movement in debt and lease financing                        (74.6)            195.5

Cash outflow/(inflow) from movement in liquid resources                                 18.0            (118.9)

Movement in net debt resulting from cash flows                                        (138.1)             48.5

Loans and finance leases acquired with subsidiaries                                     (7.2)             (3.1)

New finance leases                                                                      (4.9)             (3.4)

Exchange movements                                                                      (3.8)           (118.7)

Movement in net debt                                                                  (154.0)            (76.7)

Net debt at beginning of year                                                       (1,130.4)         (1,053.7)

Net debt at end of year                                                             (1,284.4)         (1,130.4)




GUS plc

DIVISIONAL ANALYSIS

for the year ended 31 March 2002

                                                       Turnover                    Profit before taxation


                                                    2002            2001                    2002           2001
                                                                                                     (Restated)
                                                                                                       (Note 1)
                                                      £m             £m                       £m             £m

Experian                                         1,092.1        1,018.4                   229.1          216.6

Argos Retail Group
   Argos                                         2,846.9        2,387.0                   204.0          160.8
   Home Shopping - UK & Ireland                  1,533.3        1,540.4                    33.1           25.1
   Financial Services                               10.7              -                    (4.8)           4.5
   Home Shopping - Continental Europe              237.9          322.2                    22.4           21.7
                                                 4,628.8        4,249.6                   254.7          212.1

Reality                                            470.9          476.0                     0.5            5.1

Burberry                                           499.2          424.7                    90.3           69.5

South African Retailing                            122.7          150.2                    30.9           30.7

Finance Division                                    29.6          113.8                    15.1           20.2

Property                                                -             -                    24.8           29.6

gusco.com                                            1.3            1.0                    (9.7)         (12.6)

                                                 6,844.6        6,433.7                   635.7          571.2

Inter-divisional turnover (mainly Reality)        (387.3)        (393.1)
                                                 6,457.3        6,040.6

Central costs                                                                             (17.1)         (10.1)
                                                                                          618.6          561.1
Net interest                                                                              (66.5)         (74.3)

Profit before amortisation of goodwill, exceptional items and taxation                    552.1          486.8

Amortisation of goodwill (principally Argos)                                              (99.4)         (92.3)
Exceptional items (Note 2)                                                                (72.6)         (84.7)


Profit before taxation                                                                    380.1          309.8




GEOGRAPHICAL ANALYSIS

for the year ended 31 March 2002
                                                          Turnover                 Profit before taxation

                                                       2002          2001             2002            2001
                                                                                                (Restated)
                                                                                                  (Note 1)
                                                         £m             £m              £m              £m

United Kingdom & Ireland                            4,976.7        4,550.9           367.9           318.4
Continental Europe                                    533.2          582.4            46.6            50.2
North America                                         793.7          745.7           161.2           154.3
Rest of World                                         153.7          161.6            42.9            38.2
                                                    6,457.3        6,040.6           618.6           561.1

Net interest                                                                         (66.5)          (74.3)

Profit before amortisation of goodwill, exceptional items and taxation               552.1           486.8

Amortisation of goodwill (principally Argos)                                         (99.4)          (92.3)
Exceptional items (Note 2)                                                           (72.6)          (84.7)
Profit before taxation                                                               380.1           309.8



GUS plc

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

for the year ended 31 March 2002


                                                                                          2002             2001
                                                                                            £m               £m

Profit for the year                                                                      256.6            203.7


Revaluation of properties                                                                 (9.7)           (17.1)

Currency translation differences                                                         (41.9)           (60.8)

Total recognised gains and losses for the year                                           205.0            125.8




RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS

for the year ended 31 March 2002
                                                                                      2002                2001
                                                                                        £m                  £m

Profit for the year                                                                  256.6               203.7


Dividends                - Interim                                                   (64.5)              (62.1)
                         - Final                                                    (151.9)             (147.8)
                                                                                      40.2                (6.2)

Goodwill on disposals                                                                  4.0                40.4

Goodwill charged to reserves*                                                             -               (1.2)

Shares issued under option schemes                                                     1.7                 1.5

Revaluation of properties                                                             (9.7)              (17.1)

Currency translation differences                                                     (41.9)              (60.8)
                                                                                      (5.7)              (43.4)

Opening shareholders' funds                                                        2,422.9             2,466.3
Closing shareholders' funds                                                        2,417.2             2,422.9




* Deferred consideration in respect of acquisitions by Experian prior to the
adoption of FRS 10.



ANALYSIS OF NET BORROWINGS

at 31 March 2002
                                                                                            2002             2001
                                                                                              £m               £m

Cash and other liquid resources                                                            171.9           243.3

Debt due within one year                                                                  (646.2)         (696.3)

Finance leases                                                                             (10.5)          (14.9)

Debt due after more than one year                                                         (799.6)         (662.5)

Net debt at end of year                                                                 (1,284.4)       (1,130.4)

Non-recourse borrowings                                                                   (201.0)         (581.5)

Net borrowings at end of year                                                           (1,485.4)       (1,711.9)















GUS plc

NOTES TO THE FINANCIAL STATEMENTS


1. Basis of preparation


The financial information set out in this announcement does not constitute the
Group's statutory financial statements for the year ended 31 March 2002 but is
taken from those financial statements, which have received an unqualified report
by the auditors and will be delivered to the Registrar of Companies.


The implementation by the Group of Financial Reporting Standards 18 'Accounting
Policies' and 19 'Deferred Tax' has had no material effect on reported profits.
The basis on which interest is reported has been changed in relation to the
Financial Services and Finance Divisions to provide a more appropriate
presentation of their profitability.  Financial Services operating profit is
stated after charging £3.0m of funding costs for the Argos Store Card. The
Finance Division is stated after charging a further £4.4m of funding costs over
and above the interest charge associated with its non-recourse borrowing. 
Comparative figures have been restated and the effect is to reduce both
operating profit and net interest by £13.9m in the year ended 31 March 2001. 
There is no effect on profit before taxation.



2. Exceptional items

Exceptional items comprise:
                                                                                           2002            2001
                                                                                             £m              £m

Restructuring costs:
Redundancy and other costs incurred in connection
with the combination of Argos and Home Shopping operations
and the formation of Reality                                                               36.4            30.5
Redundancy and associated costs incurred in connection
with the closure of General Guarantee Finance to new business                                 -            13.1
                                                                                           36.4            43.6
Impairment of goodwill (principally Reality)                                               27.5               -
                                                                                           63.9            43.6
VAT refunds in UK Home Shopping (including interest of £3.3m)                                 -            (4.6)
Loss/(profit) on sale of fixed asset investments                                            2.1            (4.6)
                                                                                           66.0            34.4
Loss on sale of businesses                                                                  6.6            50.3
Exceptional charge                                                                         72.6            84.7



The loss/(profit) on the sale of fixed asset investments relates to the disposal
by Experian of Internet related investments in the US.



The loss on sale of businesses, after charging goodwill previously written off
to reserves, comprises:


                                                                                             2002            2001

                                                                                               £m              £m

Universal Versand                                                                               -            23.0
Highway Vehicle Management                                                                      -            13.0
Other disposals                                                                               6.6            14.3
                                                                                              6.6            50.3

Goodwill previously written off to reserves                                                   0.3            40.4


3. Taxation


The effective rate of tax, before goodwill charge and loss on sale of businesses, 
has increased from 23.5% to 23.8%.






GUS plc




4. Basic and diluted earnings per share

                                                                                             2002            2001
                                                                                            pence           pence

Basic earnings per share before amortisation of goodwill

and exceptional items                                                                        41.7            37.2
Effect of amortisation of goodwill                                                           (9.9)           (9.2)
Effect of exceptional items                                                                  (6.1)           (7.7)
Basic earnings per share                                                                     25.7            20.3



The calculation of basic earnings per share is based on profit for the year of
£256.6m (2001 £203.7m) divided by the weighted average number of Ordinary shares
in issue of 999,811,097 (2001 1,002,535,413).  Basic earnings per share before
amortisation of goodwill and exceptional items is disclosed to indicate the
underlying profitability of the Group and is based on profit of £417.0m (2001
£373.4m):


                                                                                              2002           2001
                                                                                                £m             £m

Earnings before amortisation of goodwill and exceptional items                               417.0          373.4
Effect of amortisation of goodwill                                                           (99.4)         (92.3)
Effect of exceptional items                                                                  (61.0)         (77.4)
Profit after taxation                                                                        256.6          203.7




                                                                                              2002           2001
                                                                                                 m              m

Weighted average number of ordinary shares in issue during the year*                         999.8        1,002.5
Dilutive effect of options outstanding                                                         7.4              -
Diluted weighted average number of ordinary shares in issue during the year                1,007.2        1,002.5



* excluding those held by The GUS ESOP Trust and The GUS ESOP Trust No. 2 upon
which dividends have been waived.



The calculation of diluted earnings per share reflects the potential dilutive
effect of the exercise of employee share options.




5. Foreign currency

The principal exchange rates used were as follows:
                                                                        Average                      Closing
                                                                 2002            2001          2002          2001
US dollar                                                        1.43           1.48          1.43          1.43
South African rand                                              13.52          10.84         16.15         11.46
Euro                                                             1.62           1.64          1.64          1.62



Assets and liabilities of overseas undertakings are translated into sterling at
the rates of exchange ruling at the balance sheet date and the profit and loss
account is translated into sterling at average rates of exchange.




6. Dividend


The final dividend will be paid on 30 August 2002 to shareholders on the 
Register at the close of business on 2 August 2002.





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