Final Results - Part 2

Trinity Mirror PLC
15 March 2001


PART 2


Notes to the 2000 preliminary statement

1.     Change in accounting policies

        The only changes to the Group's accounting policies during the
        financial year to 31 December 2000 were in respect of the adoption of
        financial reporting standards FRS 15 'Measurement of Tangible Fixed
        Assets' and FRS 16 'Current Tax', neither of which had an impact on
        the profit and loss account.

2.     Turnover

                                   Statutory      Statutory           Pro forma
                                                                    (unaudited)
                                        2000           1999                1999
                                          £m             £m                  £m
Regional newspapers*                   465.3          375.7               462.5
National newspapers                    532.4          189.8               519.9
Sports newspapers                       31.6            8.3                25.0
Magazines and exhibitions               35.3           18.2                33.9
Digital media                            2.5            0.4                 1.5
Other                                   13.2            3.4                19.8

Group turnover by division           1,080.3          595.8             1,062.6


        * Regional newspapers includes turnover relating to Belfast Telegraph
        Newspapers of £31.4 million (1999: £52.8 million) and the Metro titles
        of £2.6 million (1999: £nil). Belfast Telegraph Newspapers was sold on
        30 July 2000.



3.     Group operating profit


The analysis of the Group's operating profit (before exceptional items) is as
follows:
                                        Statutory     Statutory       Pro forma
                                                                    (unaudited)
                                             2000          1999            1999
                                               £m            £m              £m

Regional newspapers*                       114.8          94.1           114.6
National newspapers                        111.0          39.0           103.6
Sports newspapers                            8.2           2.2             5.2
Magazines and exhibitions                    6.8           3.9             7.6
Digital media                              (42.3)         (4.4)           (7.0)
Other                                        2.9          (0.3)           (2.9)

Group operating profit by division         201.4         134.5           221.1


        * Regional newspapers includes operating profit relating to Belfast
        Telegraph Newspapers of £13.2 million (1999: £20.8 million) and start
        up costs of the Metro titles of £4.0 million (1999: £0.3 million).



4.         Exceptional items
                                                 Statutory Statutory  Pro forma
                                                                     (unaudited)
                                                      2000      1999       1999

Operating exceptional items                             £m        £m         £m
Restructuring costs (a)                              13.3       8.3        9.5
Accelerated depreciation in respect of press          7.5         -          -
impairment (b)
Total exceptional items charged against              20.8       8.3        9.5
operating profit

(Profit)/loss on sale/termination of operations    (164.5)      4.6      (23.9)
(c)
Share of exceptional items of associated            (17.5)     (0.6)      (2.2)
undertaking (d)
Net interest payable (e)                                -         -        3.9

Net exceptional items before taxation              (161.2)     12.3      (12.7)


     a. Restructuring costs of £9.8 million have been incurred as a result of
        the integration and restructuring of management and operations
        following the Trinity Mirror merger in 1999. Further restructuring
        costs, including those in respect of management changes, of £3.5
        million have been incurred in respect of the Southnews acquisition.

     b. Following an assessment of the Group's future press policy undertaken
        during the year, accelerated depreciation of £7.5 million has been
        applied to certain press facilities reflecting their impairment.

     c. The sale of Belfast Telegraph Newspapers resulted in a net profit on
        disposal of £164.5 million. The loss on termination of operations in
        1999 related primarily to the closure of Live TV in November 1999,
        which resulted in a net loss of £5.6 million, and the costs of the
        cancelled launch of the new Sporting Life title.

        In March 1999, Mirror Group disposed of its investment in Scottish
        Media Group for consideration of £110.0 million. After writing-off the
        investment and goodwill, a net profit of £31.5 million was realised.
        This gain is recognised in the pro forma profit and loss account only.

     d. The share of associated undertaking's exceptional item relates to the
        net profit on disposal of businesses during 2000 and 1999 by The Press
        Association.

     e. Subsequent to the sales of the Holborn property and the investment in
        Scottish Media Group by Mirror Group, prior to the merger, interest
        rate swaps with a principal amount of £200.0 million were cancelled at
        a cost of £3.9 million.


5.           Tax on profit on ordinary activities
                                          Statutory    Statutory      Pro forma
The charge for taxation is as follows:                              (unaudited)
                                               2000         1999           1999
Underlying:                                      £m           £m             £m

UK corporation tax                            43.2         32.6           44.9
Deferred taxation                              0.8         (1.6)          (1.8)
Tax in associated undertakings                   -            -            1.7

                                              44.0         31.0           44.8
Exceptional:
UK corporation tax on exceptional items        3.8         (2.8)          (4.9)
Deferred taxation on exceptional items        (0.8)           -              -

                                              47.0         28.2           39.9


        The underlying tax charge is less than the UK corporation tax rate of
        30% because of different treatments of certain items for accounting
        and taxation purposes. Included in the UK corporation tax charge on
        exceptional items is £4.6 million in respect of the profit on disposal
        of Belfast Telegraph Newspapers and £4.6 million in respect of the
        Group's share of tax on exceptional items of associated undertakings.
        The tax charge in respect of Belfast Telegraph Newspapers is less than
        the UK corporation tax rate of 30% due to the tax effective disposal
        of this subsidiary.

6.     Earnings per share

        Earnings per share are based on the profit on ordinary activities
        after taxation. They are calculated using the weighted average number
        of shares in issue (basic) increased by the number of share options in
        issue (diluted) as shown below.


                             Statutory           Statutory           Pro forma
                                                                   (unaudited)
                                  2000                1999                1999
                         No. of shares       No. of shares       No. of shares

Basic (millions)                289.8               186.9               288.5
Diluted (millions)              291.9               188.6               290.3



7.      Acquisition of Southnews


        On 28 November 2000 the Company acquired the entire issued ordinary
        share capital of Southnews plc. The cash consideration (including the
        costs of the acquisition) of £265.9 million and issue of £27.1 million
        of loan notes were satisfied by the increase in the Company's debt
        balances. For the period prior to the acquisition, the following
        financial information in respect of Southnews is relevant:

                                              1 April to             Year ended
                                             28 November               31 March
                                                    2000                   2000
                                                      £m                     £m

Turnover                                           63.2                   75.9
Operating profit                                   13.3                   15.3


        The above results are shown using the accounting policies of Southnews
        prior to the acquisition. Southnews acquired and retained the Kent and
        London operations of the former Adscene Group in March 2000.

        The provisional fair values attributed to the net assets acquired on
        acquisition were:

Net assets acquired                                   Provisional   Provisional

                                           Book value  fair value fair value to
                                                      Adjustments     the Group
                                                   £m          £m            £m
Intangible fixed assets (i)                    109.8       235.9         345.7
Tangible fixed assets                            4.2           -           4.2
Current assets (ii)                             16.6         0.2          16.8
Creditors falling due within one year          (18.5)       (5.8)        (24.3)
(iii)
Creditors falling due after one year           (40.1)          -         (40.1)
Provisions (iv)                                 (2.8)       (2.8)         (5.6)
Minority interest                               (3.7)          -          (3.7)
Net assets acquired                             65.5       227.5         293.0


        The provisional fair value adjustments are in respect of:


     i. an increase in carrying value of publishing rights and titles to
        reflect the directors' valuation of these assets at acquisition;

    ii. an alignment of the application of an accounting policy in respect of
        debtors;

    iii. an estimate of the liability likely to result from a pending legal
        case, various onerous contracts and corporation tax; and

    iv. future costs related to occupied, let and vacant properties, pension
        schemes valuation deficits and deferred tax.


        The provisional nature of the fair value adjustments primarily relates
        to estimates used in arriving at the pension schemes' valuation and
        property provisions and accruals.


8.    Acquisition of Mirror Group
      On 6 September 1999 the Company acquired the entire issued share capital
      of Mirror Group and provisional fair value adjustments were made in the
      1999 accounts. Revisions to the provisional fair value adjustments have
      been made in 2000.


     a. The fair values attributed to the net assets acquired were:

                                                      Adjustments
                                    Book Provisional Revisions Revised     Fair
                                                                          value
                                   value        1999      2000    2000
                                                                       to Group
Net assets acquired:                  £m          £m        £m      £m
                                                                             £m
Intangible fixed assets (i)        213.6    1,194.0      13.5  1,207.5 1,421.1

Tangible fixed assets (ii)         351.4      (49.8)     (6.8)  (56.6)   294.8

Fixed asset investments             10.8          -       0.5     0.5     11.3
Current assets (iii)               155.5       (6.7)     (2.0)   (8.7)   146.8

Creditors falling due within one  (184.3)     (13.6)     (5.5)  (19.1)  (203.4)
year (iv)
Creditors falling due after one   (332.9)         -         -       -   (332.9)
year
Provisions (v)                     (32.9)     (14.6)      0.3   (14.3)   (47.2)
                                   181.2    1,109.3         - 1,109.3  1,290.5



        Revisions to the fair value adjustments are in respect of:


(i)  an increase in the carrying value of publishing rights and titles to
     reflect the directors' valuation of these assets at acquisition;
(ii) professional independent valuations of plant and machinery on a value to
     the business basis as at the date of acquisition;
(iii) the write off of items of slow moving stock, irrecoverable debtor balances
     and independent market valuations of assets for resale;
(iv) future potential costs in relation to potential libel claims; and
(v)  future costs related to occupied, let and vacant properties and deferred
     tax.





9.    Issue of Annual Report and Accounts and Annual Review and Summary
      Financial Statement
      The 2000 Annual Review and Summary Financial Statement will be posted to
      shareholders on 28 March 2001. Copies may be obtained after 3 April 2001
      from the Company Secretary, Trinity Mirror plc at One Canada Square,
      Canary Wharf, London, E14 5AP. The Annual Report and Accounts will also
      be posted on 28 March 2001 to those shareholders who have requested a
      copy. Copies of the 2000 Annual Report and Accounts may also be obtained
      from the Company Secretary after 3 April 2001.

10. The financial information set out above does not constitute the Company's
    statutory accounts for the periods ended 2 January 2000 or 31 December
    2000, but is derived from those accounts. Statutory accounts for 1999 have
    been delivered to the Registrar of Companies and those for the period ended
    31 December 2000 will be delivered following the Company's Annual General
    Meeting. The auditors have reported on those accounts; their reports were
    unqualified and did not contain statements under section 237(2) or (3) of
    the Companies Act 1985.