Interim Results - Part 2

GUS PLC
29 November 2001

PART 2

GUS plc

GROUP PROFIT AND LOSS ACCOUNT

for the six months ended 30 September 2001

                         Six months  Six months       Six Six months    Year to
                         to 30.9.01  to 30.9.01 months to to 30.9.00
                                                  30.9.01               31.3.01
                             Before Exceptional           (Restated)
                        Exceptional       Items     Total            (Restated)
                              Items                         (Note 1)
                                       (Note 2)                        (Note 1)
                                 £m                               £m
                                             £m        £m                    £m

Turnover - continuing       2,856.9           -   2,856.9    2,650.7    6,040.6
operations

Cost of sales             (1,691.3)           - (1,691.3)  (1,567.6)  (3,638.0)

Gross profit                1,165.6           -   1,165.6    1,083.1    2,402.6

Net operating expenses
(including amortisation
of goodwill £48.6m          (998.6)      (16.3) (1,014.9)    (943.6)  (2,017.3)
(2001: half year £
42.4m; full year £
92.3m))

Operating profit -            167.0      (16.3)     150.7      139.5      385.3
continuing operations

Share of operating             12.8           -      12.8       14.6       29.6
profit of

BL Universal PLC (joint
venture)
Share of operating             16.7           -      16.7        3.9       11.6
profit of associated
undertakings
(Loss)/profit on sale             -       (2.1)     (2.1)        4.6        4.6
of fixed asset
investments

Trading profit                196.5      (18.4)     178.1      162.6      431.1

Loss on sale of                   -       (7.6)     (7.6)     (13.3)     (50.3)
businesses

Profit on ordinary            196.5      (26.0)     170.5      149.3      380.8
activities before
interest

Net interest                 (38.9)           -    (38.9)     (31.3)     (71.0)

Profit on ordinary            157.6      (26.0)     131.6      118.0      309.8
activities before
taxation

Tax on profit on
ordinary activities
- UK                                               (27.8)     (23.6)     (60.6)
- Overseas                                         (17.7)     (18.1)     (45.5)
                                                   (45.5)     (41.7)    (106.1)

Profit on ordinary                                   86.1       76.3      203.7
activities after
taxation

Dividends                                          (64.5)     (62.1)    (209.9)

Profit/(loss) for the                                21.6       14.2      (6.2)
period

PROFIT BEFORE
AMORTISATION OF
GOODWILL, EXCEPTIONAL                               206.2      186.5      486.8
ITEMS AND TAXATION

EARNINGS PER SHARE
- Basic                                              8.6p       7.6p      20.3p
- Diluted                                            8.5p       7.6p      20.3p

EARNINGS PER SHARE
BEFORE AMORTISATION OF
GOODWILL AND
EXCEPTIONAL ITEMS
- Basic                                             15.5p      14.1p      37.2p
- Diluted                                           15.4p      14.1p      37.2p

DIVIDEND PER SHARE                                   6.5p       6.2p      21.0p



GUS plc

GROUP BALANCE SHEET

at 30 September 2001
                                              30.9.01      30.9.00      31.3.01

                                                        (Restated)   (Restated)

                                                   £m     (Note 1)     (Note 1)

                                                                £m           £m
Fixed assets

Goodwill                                      1,482.7      1,569.2      1,516.2

Other intangible assets                         175.4        161.9        178.9

Tangible assets                                 777.0        719.5        737.4

Investment in joint venture                     200.1        216.0        209.0

Other investments                               120.3         80.2         87.9

                                              2,755.5      2,746.8      2,729.4
Current assets

Stocks                                          666.3        600.6        570.8

Debtors   * due within one year               1,584.9      1,520.1      1,561.3
          * due after more than one year        205.2        309.2        221.9
                                                
Securitised receivables                         422.0        896.4        646.7
Less: non-recourse borrowings                 (357.9)      (857.2)      (581.5)
                                                 64.1         39.2         65.2

Investments                                      52.7         48.0         53.3

Bank balances and cash                          273.5        344.0        304.7
                                              2,846.7      2,861.1      2,777.2

Creditors                                   (2,334.2)    (1,711.3)    (2,236.2)

Amounts due within one year

Net current assets                              512.5      1,149.8        541.0

Total assets less current liabilities         3,268.0      3,896.6      3,270.4

Creditors - amounts due after more than one   (716.1)    (1,247.8)      (713.5)
year

Provisions for liabilities and charges        (107.0)      (121.3)      (118.0)

Net assets                                    2,444.9      2,527.5      2,438.9


Capital and reserves

Called up share capital                         251.6        251.5        251.6

Share premium account                             2.4          0.6          1.8

Revaluation reserve                             127.8        151.6        136.6

Profit and loss account                       2,060.5      2,098.5      2,048.9
Shareholders' funds                           2,442.3      2,502.2      2,438.9

Minority interest                                 2.6         25.3            -

Capital employed                              2,444.9      2,527.5      2,438.9







GUS plc

GROUP CASH FLOW STATEMENT

for the six months ended 30 September 2001
                                         Six months to Six months to    Year to
                                               30.9.01       30.9.00    31.3.01

                                                          (Restated) (Restated)

                                                            (Note 1)   (Note 1)

                                                    £m            £m         £m
Cash flow from operating activities
         Operating profit                        150.7         139.5      385.3
         Depreciation and amortisation           149.6         148.5      308.3
         charges
         Change in working capital              (49.2)           6.3     (47.9)
                                                 251.1         294.3      645.7

Dividends received from associated                13.2           5.6        6.9
undertakings

Returns on investments and servicing of         (28.9)        (19.5)     (54.6)
finance

Taxation                                        (21.7)        (41.5)     (94.7)

Capital expenditure                            (144.3)       (129.0)    (267.6)

Financial investment                            (33.0)        (32.5)     (38.5)

Acquisition of subsidiaries                     (15.6)       (172.3)    (172.7)

Disposal of subsidiaries                             -         171.5      228.9

Dividends paid                                 (147.9)       (144.2)  (206.4)

Cash (outflow)/inflow before management        (127.1)        (67.6)       47.0
of liquid resources and financing

Management of liquid resources                   (7.5)          47.0      118.9

Financing issue of shares                          0.6           0.2        1.5

          change in debt and lease                65.8       (101.3)    (195.5)
          financing

Decrease in cash                                (68.2)       (121.7)     (28.1)

Reconciliation of net cash flow to
movement in net debt

Decrease in cash                                (68.2)       (121.7)     (28.1)

Cash (inflow)/outflow from movement in          (65.8)         101.3      195.5
debt and lease financing

Cash outflow/(inflow) from movement in             7.5        (47.0)    (118.9)
liquid resources

Movement in net debt resulting from cash       (126.5)        (67.4)       48.5
flows

Loans and finance leases acquired with               -             -      (3.1)
subsidiary

New finance leases                               (0.2)         (2.0)      (3.4)

Exchange movements                                29.6        (53.6)    (118.7)

Movement in net debt                            (97.1)       (123.0)     (76.7)

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

Net debt at end of period                    (1,227.5)     (1,176.7)  (1,130.4)

GUS plc

DIVISIONAL ANALYSIS

for the six months ended 30 September 2001


                                 Turnover            Profit before taxation
                           Six months to  Year to   Six months to       Year to
                          30.9.01 30.9.00 31.3.01 30.9.01    30.9.00    31.3.01

                                                          (Restated) (Restated)

                               £m      £m      £m      £m   (Note 1)   (Note 1)

                                                                  £m         £m
Experian                    534.2   486.8 1,018.4   110.3      105.7      216.6

Argos Retail Group
  Argos                   1,165.5   944.0 2,387.0    44.2       35.7      160.8
  Home Shopping - UK &      682.9   701.9 1,540.4    10.8        8.3       25.1
  Ireland
  Financial Services          2.5       -       -   (0.9)        2.7        4.5
  Home Shopping -           113.5   150.3   322.2    10.4       10.4       21.7
  Continental Europe
                          1,964.4 1,796.2 4,249.6    64.5       57.1      212.1

Reality                     226.2   219.3   476.0     2.2        1.6        5.1

Burberry                    236.1   185.4   424.7    42.1       26.6       69.5

South African Retailing      65.1    62.8   150.2    15.8       15.8       30.7

Finance Division             18.6    84.3   113.8     9.4        9.3       20.2

Property                        -       -       -    12.8       14.6       29.6

gusco.com                     0.6       -     1.0   (5.3)      (5.5)     (12.6)
                          3,045.2 2,834.8 6,433.7   251.8      225.2      571.2

Inter-divisional turnover (188.3) (184.1) (393.1)
(mainly Reality)
                          2,856.9 2,650.7 6,040.6

Central costs                                       (6.7)      (4.1)     (10.1)
                                                    245.1      221.1      561.1
Net interest                                       (38.9)     (34.6)     (74.3)

Profit before amortisation of goodwill,             206.2      186.5      486.8
exceptional items and taxation

Amortisation of goodwill (principally Argos)       (48.6)     (42.4)     (92.3)
Exceptional items (Note 2)                         (26.0)     (26.1)     (84.7)
Profit before taxation                              131.6      118.0      309.8





GEOGRAPHICAL ANALYSIS

for the six months ended 30 September 2001
                                 Turnover               Divisional Profit
                           Six months to  Year to   Six months to       Year to
                          30.9.01 30.9.00 31.3.01 30.9.01    30.9.00    31.3.01

                                                          (Restated) (Restated)

                               £m      £m      £m      £m   (Note 1)   (Note 1)

                                                                  £m         £m

United Kingdom & Ireland  2,146.5 1,959.7 4,550.9   125.2      102.7      318.4
Continental Europe          255.2   271.7   582.4    23.9       25.3       50.2
North America               384.2   351.1   745.7    76.6       73.6      154.3
Rest of World                71.0    68.2   161.6    19.4       19.5       38.2
                          2,856.9 2,650.7 6,040.6   245.1      221.1      561.1


GUS plc

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

for the six months ended 30 September 2001


                                        Six months to  Six months to    Year to
                                              30.9.01        30.9.00    31.3.01

                                                          (Restated) (Restated)

                                                   £m       (Note 1)   (Note 1)

                                                                  £m         £m

Profit on ordinary activities after              86.1           76.3      203.7
taxation
Revaluation of properties                       (9.5)          (6.7)     (17.1)
Currency translation differences               (13.3)         (22.5)     (60.8)
Total recognised gains and losses for            63.3           47.1      125.8
the period
Prior year adjustment (Note 1)                   16.0              -          -
Total recognised gains and losses                79.3           47.1      125.8
since last annual report



RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS

for the six months ended 30 September 2001


                                     Six months to    Six months to     Year to
                                           30.9.01          30.9.00     31.3.01

                                                         (Restated)  (Restated)

                                                £m         (Note 1)    (Note 1)

                                                                 £m          £m

Profit on ordinary activities                 86.1             76.3       203.7
after taxation
Dividends         - Interim                 (64.5)           (62.1)      (62.1)
                  - Final                        -                -     (147.8)
                                              21.6             14.2       (6.2)
Goodwill on disposals                          4.0             34.7        40.4
Goodwill charged to reserves*                    -                -       (1.2)
Shares issued under option                     0.6              0.2         1.5
schemes
Revaluation of properties                    (9.5)            (6.7)      (17.1)
Currency translation differences            (13.3)           (22.5)      (60.8)
                                               3.4             19.9      (43.4)
Opening shareholders' funds                2,438.9          2,466.3     2,466.3
                                           2,442.3          2,486.2     2,422.9
Prior year adjustment (Note 1)                   -             16.0        16.0
Closing shareholders' funds                2,442.3          2,502.2     2,438.9

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



ANALYSIS OF NET BORROWINGS

at 30 September 2001
                                           30.9.01       30.9.00       31.3.01

                                                £m            £m            £m

Cash and other liquid resources              179.2         223.1         243.3
Debt due within one year                   (732.5)       (191.1)       (696.3)
Finance leases                              (10.7)        (17.8)        (14.9)
Debt due after more than one year          (663.5)     (1,190.9)       (662.5)
Net debt at end of period                (1,227.5)     (1,176.7)     (1,130.4)
Non-recourse borrowings                    (357.9)       (857.2)       (581.5)
Net borrowings at end of period          (1,585.4)     (2,033.9)     (1,711.9)

GUS plc

NOTES TO INTERIM FINANCIAL STATEMENTS

1. Basis of preparation

------------------------------------------------------------------------------

The interim report comprises the unaudited results for the six months ended 30
September 2001 and 30 September 2000 and the audited results for the twelve
months ended 31 March 2001. The financial information for the twelve months
ended 31 March 2001, as adjusted for the changes in accounting policy set out
below, has been extracted from the Group's statutory financial statements for
that year. The interim financial statements are not audited and do not
constitute statutory accounts. These financial statements have been formally
reviewed by the Group's auditors, PricewaterhouseCoopers, and the full text of
their report is set out on page 29.

The implementation by the Group of Financial Reporting Standard ('FRS') 18
'Accounting Policies' 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 £1.0m of funding costs for the Argos Store Card. The
Finance Division is stated after charging a further £3.0m 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 £8.8m for the six months ended 30
September 2000 with a reduction by £13.9m in the year ended 31 March 2001.
There is no effect on profit before tax.

The implementation by the Group of FRS 19 'Deferred Tax' has had no material
effect on reported profits for the period or the previous year. However, the
recognition of deferred tax assets in accordance with the requirements of the
Standard has given rise to a prior year adjustment with provisions for
liabilities and charges reduced by £16.0m and revenue reserves increased by £
16.0m.

The basis on which income is recognised in the Group's South African Retailing
division has been amended to provide a more accurate phasing of profitability
between the two half years, with no impact on the results for the full year.
The effect of this change on the results for the six months ended 30 September
2001 is to increase the reported profit before taxation by £5.1m. Comparative
figures have been restated and the effect is to increase the reported profit
before taxation for the six months ended 30 September 2000 by £5.8m.

2. Exceptional items

------------------------------------------------------------------------------
Exceptional items comprise:                              Six months to  Year to
                                                        30.9.01 30.9.00 31.3.01

                                                             £m      £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                               (16.3)   (8.9)  (30.5)
  Redundancy and associated costs incurred in
  connection
  with the closure of General Guarantee Finance to new        -  (13.1)  (13.1)
  business
                                                         (16.3)  (22.0)  (43.6)
VAT refunds in UK Home Shopping (including interest of        -     4.6     4.6
£3.3m)
(Loss)/profit on sale of fixed asset investments          (2.1)     4.6     4.6
                                                         (18.4)  (12.8)  (34.4)
Loss on sale of businesses                                (7.6)  (13.3)  (50.3)
Exceptional charge                                       (26.0)  (26.1)  (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:
                                                       Six months to    Year to
                                                      30.9.01 30.9.00   31.3.01

                                                           £m      £m        £m
Universal Versand                                           -       -      23.0
Highway Vehicle Management                                  -    13.3      13.0
Other disposals                                           7.6       -      14.3
                                                          7.6    13.3      50.3

Goodwill previously written off to reserves:              0.3    34.7      40.4

It is not anticipated that there will be any further costs of closure during
the wind down of General Guarantee Finance.

3. Taxation

------------------------------------------------------------------------------

The effective rate of tax, before amortisation of goodwill and loss on sale of
businesses, is based on the estimated tax charge for the full year at a rate
of 24.2% (2001: 24.0%).





GUS plc

NOTES TO INTERIM FINANCIAL STATEMENTS (continued)
                                                       Six months to    Year to
                                                     30.9.01    30.9.00 31.3.01

                                                             (Restated)

4. Basic and diluted earnings per share                pence   (Note 1)   pence

                                                                  pence
Basic earnings per share before amortisation of
goodwill and
                                                        
exceptional items                                       15.5       14.1    37.2
Effect of amortisation of goodwill                     (4.8)      (4.2)   (9.2)
Effect of exceptional items                            (2.1)      (2.3)   (7.7)
Basic earnings per share                                 8.6        7.6    20.3

The calculation of basic earnings per share is based on profit after taxation
divided by the weighted average number of Ordinary shares in issue during the
period. Basic earnings per share before amortisation of goodwill and
exceptional items is disclosed to indicate the underlying profitability of the
Group.
                                                       Six months to    Year to
                                                     30.9.01    30.9.00 31.3.01

                                                             (Restated)

                                                          £m   (Note 1)      £m

                                                                     £m
Earnings before amortisation of goodwill and           155.8      141.2   373.4
exceptional items
Effect of amortisation of goodwill                    (48.6)     (42.4)  (92.3)
Effect of exceptional items                           (21.1)     (22.5)  (77.4)
Profit after taxation                                   86.1       76.3   203.7

                                                        30.9.01 30.9.00 31.3.01

                                                              m       m       m
Weighted average number of Ordinary shares in issue     1,002.3 1,002.4 1,002.5
during the period*
Dilutive effect of options outstanding                      7.5       -       -
Diluted weighted average number of Ordinary shares in   1,009.8 1,002.4 1,002.5
issue during the period

* 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
                    Six months to Six months to Year to 30.9.01 30.9.00 31.3.01

                          30.9.01       30.9.00 31.3.01
US dollar                    1.43          1.52    1.48    1.47    1.47    1.43
South African rand          11.80         10.47   10.84   13.26   10.68   11.46
Euro                         1.62          1.64    1.64    1.61    1.67    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 &
loss account is translated into sterling at average rates of exchange.

6. Dividend

------------------------------------------------------------------------------

The interim dividend will be paid on 1 February 2002 to shareholders on the
Register at the close of business on

4 January 2002.

7. Directors' responsibilities

------------------------------------------------------------------------------

The maintenance and integrity of the GUS plc website is the responsibility of
the directors; the work carried out by the auditors does not involve
consideration of these matters and, accordingly, the auditors accept no
responsibilities for any changes that may have occurred to the interim report
since it was initially presented on the website. Legislation in the United
Kingdom governing the preparation and dissemination of financial information
may differ from legislation in other jurisdictions.

INDEPENDENT REVIEW REPORT TO GUS plc

Introduction

We have been instructed by the Company to review the financial information
which comprises the Group profit and loss account, the Group balance sheet,
the Group cash flow statement, the divisional analysis, the geographical
analysis, the statement of total recognised gains and losses, the
reconciliation of movement in shareholders' funds, the analysis of net
borrowings and the notes. We have read the other information contained in the
interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority which require that the
accounting policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999
/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of management and applying
analytical procedures to the financial information and underlying financial
data and, based thereon, assessing whether the accounting policies and
presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than
an audit performed in accordance with United Kingdom Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly we do
not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2001.


PricewaterhouseCoopers

Chartered Accountants

Manchester

29 November 2001