Final Results

Guinness Peat Group PLC
02 March 2004

                                             2 March 2004
                            
                 GUINNESS PEAT GROUP PLC
         ("GPG" or "the Company" or "the Group")
                            
   PRELIMINARY RESULTS FOR YEAR ENDED 31 DECEMBER 2003
                            
                  CHAIRMAN'S STATEMENT
                            
2003 was a good year for GPG with an increase in realised
profit  and  useful  progress on  longer  term  projects.
Nevertheless,  it should be noted that the  final  result
was  assisted  by several abnormal items (mainly  one-off
sales and the recovery of past years' exchange losses) so
we  have  embarked  on  2004  with  confidence,  but  not
complacency.

The  outstanding  achievement in 2003 was  obviously  the
successful  takeover offer for Coats plc.  GPG's  present
investment  is  £80  million for a 64%  interest  in  the
holding  company  which  owns  100%  of  Coats'  ordinary
shares.   In  the  next  few months  it  is  proposed  to
subscribe  additional capital which will  increase  GPG's
percentage  equity and will reduce net  borrowings  which
are  approximately £375 million.  Further  reductions  in
borrowing are anticipated as a consequence of the sale of
surplus assets and the more efficient use of funds within
Coats'   operations  (for  which  there  is  considerable
scope).

Coats'  net contribution to GPG's 2003 result  was  £12.7
million,  made  up  of  a  £4.5 million  pre  acquisition
dividend  plus  £8.2  million, being  our  share  of  the
trading profit for the year.  The post acquisition  phase
has   not   been   without  difficulties   (probably   an
inescapable  feature of a large global manufacturing  and
marketing organisation) and trading conditions  have  not
been  buoyant.   The changed ownership has  also  been  a
somewhat disruptive factor, but Coats is the clear  world
leader  in  the thread business and the future  potential
for GPG could be very significant.

Several months ago, we closed out the currency cover held
in  respect of the original NZ$250 million Note issue, on
which  there was a gain of £21 million.  This  amount  is
held  in reserve until the Notes mature in 2006 and there
is  no accounting profit or loss until then.  The present
equation  is  that  at  the  current  exchange  rate  the
repayment of NZ$ 250 million would require £91.7 million,
compared  with the previous fixed sum of £70 million,  so
we  are  marginally behind at this stage.  As GPG  has  a
natural  hedge in respect of its substantial New  Zealand
assets,  it  is  debatable whether an  ultimate  gain  is
necessarily to GPG's overall advantage, but  for  now  we
have  the  use  of  an additional £21  million  in  cash,
whatever happens in the future.

In  the  Interim Report, we referred to the  problems  at
Dawson  International  and there  has  been  no  material
improvement since then.  As a consequence GPG has assumed
a  much  stronger proprietorial role which,  although  by
necessity rather than by choice, also reflects a positive
view   that  we  can  restore  value  to  the  investment
notwithstanding it has been conservatively  written  down
to zero in the meantime.

In  December,  we  sold our residual holding  of  Turners
Auctions shares, thus concluding a role which proved very
successful  for GPG and other investors in  the  company.
GPG was at the helm from the original spin off ex Turners
&  Growers  and  leaves what has now  become  a  strongly
growing independent company in its own right.

Operating  earnings continue to be increasingly important
to  the  final  result.   Turners  &  Growers  (79%)  and
Canberra  Investment  Corporation  (69%)  are  the   core
subsidiaries and are both well placed in their respective
industries.  The former Staveley units in UK and USA have
also  been  excellent  contributors  but,  as  stated  in
previous Reports, they all need greater substance, to  be
obtained  by  acquisition or by integration  with  larger
industry groups, to reach their full economic potential.

The share portfolio is in good shape overall, not only in
respect of market values but also, in many instances, the
prospects  for future strategic advantage.  Surplus  over
book  value at 31 December was £118 million compared with
£25 million in 2002, so GPG's aggregate increase in value
from  all  sources  in  2003 was  £150  million,  a  very
satisfactory performance indeed.

The  simplified  Balance Sheet set out below  provides  a
more  useful  analysis of GPG as an investor rather  than
the   aggregation  of  assets  and  liabilities  in   the
conventional group accounts.

      Simplified Balance Sheet at 31 December 2003
                                                       £m
---------------------------------------------------------
Cash at Bank                                          272
Debtors                                                19
Coats                                                  80
Nationwide                                              8
Staveley (UK & USA)                                     2
Canberra Investment Corp                               13
Turners & Growers                                      42
De Vere                                                33
Share portfolio                                       177
---------------------------------------------------------
Total Assets                                          646
Creditors                                             (37)
Note issues                                          (179)
SHAREHOLDERS' FUNDS                                   430
---------------------------------------------------------

GPG's  cash  balance of £272 million at 31  December  was
close to a peak but will reduce in coming months with the
anticipated increased Coats' investment, some short  term
assistance  to Dawson and likely reasonably  large  share
purchases.  The Board remains convinced of the benefit of
strong  liquidity, enabling major decisions to be readily
implemented.


CAPITAL AND DIVIDEND

Contrary to the expectation expressed in the 2002  Annual
Report,   we  have  abandoned  the  concept  of  offering
Convertible  Loan  Notes to shareholders  in  conjunction
with  the annual results.  Last year's issue was not well
supported  which is largely attributed to the  complexity
of  the  documents required to accompany the offer.   The
full  prospectus  ran  to 260 pages  which  was  arguably
counter  productive  in assisting  comprehension  of  the
offer and was very costly and time consuming to compile.

Other  than the standard 1p dividend and 1 for  10  bonus
issue (this year's is the 11th in succession, multiplying
an original 1990 shareholding 2.85 times) GPG's preferred
allocation of resources will be solely to achieve organic
growth  in  the value of the shares, which is always  the
top priority in any event.

The GPG outlook for 2004 is for another active and
successful year.

Ron Brierley
CHAIRMAN
London, 2 March 2004
                        - Ends -

Enquiries:

Guinness Peat Group plc                   020 7484 3370
Blake Nixon, UK Executive Director

Weber Shandwick Square Mile               020 7067 0700
Kevin Smith/Josh Royston




CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 31 December                                    2003            2002
                                                     Unaudited         Audited
                                                          £000            £000
  ----------------------------------------------------------------------------

  Turnover: group and share of joint ventures          612,523         501,487

  Less: share of joint ventures                        (59,784)        (42,939)
                                                     ---------        --------

  Continuing operations (excluding acquisitions)       552,739         458,548

  Acquisitions
   Turnover: group and share of joint ventures         482,299               -

   Less: share of joint ventures                      (482,050)              -
                                                     ---------        --------
                                                           249               -

  Group turnover - continuing operations               552,988         458,548

  Group turnover - discontinued operations                   -          56,288
                                                     ---------        --------

  Group turnover                                       552,988         514,836

  Cost of sales                                       (423,029)       (425,292)
                                                     ---------        --------

  Gross profit                                         129,959          89,544

  Profit on disposal of investments and other net       
   investment income                                    41,868          47,420


  Net operating expenses                              (104,310)        (90,101)
                                                     ---------        --------
  Operating profit - continuing operations              
   (excluding acquisitions)                             67,554          39,820

  Operating profit - acquisitions (excluding joint 
   ventures and associates)                                (37)              -
                                                     ---------        --------
                                                        67,517          39,820

  Operating profit - discontinued operations                 -           7,043
                                                     ---------        --------

  Group operating profit                                67,517          46,863

  Share of operating profit/(loss) of joint ventures    24,748            (635)
  Share of operating (loss)/profit of associated 
   undertakings                                           (178)          3,169
                                                     ---------        --------

                                                        92,087          49,397

  Profit on sale of business - continuing operations    19,056               -
  
  Profit on sale of subsidiary - discontinued operations     -          12,238
  
  Interest payable and similar charges                 (23,423)        (10,546)
                                                     ---------        --------

  Profit on ordinary activities before taxation         87,720          51,089

  Tax on profit on ordinary activities                 (21,113)         (5,203)
                                                     ---------        --------

  Profit on ordinary activities after taxation          66,607          45,886

  Minority interests                                    (2,641)         (3,425)
  ----------------------------------------------------------------------------
  PROFIT ATTRIBUTABLE TO ORDINARY SHAREHOLDERS          63,966          42,461
  ----------------------------------------------------------------------------

  Equity dividends                                      (6,894)         (6,252)
                                                     ---------        --------
  Retained profit for the year                          57,072          36,209
                                                      --------       ---------
                                                            
  Earnings per ordinary share - basic (pence)            9.28p           6.36p
  Earnings per ordinary share - diluted (pence)          6.78p           5.39p
  Dividends per ordinary share (pence)                   1.00p           0.91p



Consolidated Balance Sheet
31 December                                             2003              2002
                                                   Unaudited           Audited
                                                        £000              £000
   Fixed assets
   ---------------------------------------------------------------------------
   Intangible assets - net negative goodwill          (8,283)          (10,734)
   Tangible assets                                    77,107            74,349
   Investments                                       291,496           256,189
                                                    --------          --------
                                                     360,320           319,804
   Current assets
   ---------------------------------------------------------------------------
   Stocks and development work in progress            28,235            13,981
   Debtors                                            93,229           128,727
   Investments                                        17,426            36,874
   Cash at bank and in hand                          289,463           113,827
                                                    --------          --------
   Creditors: amounts falling due within 1 year      428,353           293,409
   ---------------------------------------------------------------------------
   Trade and other creditors                        (126,886)         (116,131)
   Convertible subordinated loan notes                (5,963)           (3,863)
   Other borrowings                                     (838)           (5,404)
                                                    --------          --------

                                                    (133,687)         (125,398)

   Net current assets                                294,666           168,011

   Total assets less current liabilities             654,986           487,815

   Creditors: amounts falling due after 1 year
   ---------------------------------------------------------------------------
   Trade and other creditors                          (1,588)             (306)
   Convertible subordinated loan notes                (5,964)           (7,725)
   Capital notes                                    (166,513)          (67,765)
   Other borrowings                                  (22,584)          (13,672)
                                                    --------          --------
                                                    (196,649)          (89,468)

   Provisions for liabilities and charges            (10,662)          (15,784)
                                                    --------          --------
   ---------------------------------------------------------------------------
   NET ASSETS                                        447,675           382,563
   ---------------------------------------------------------------------------

   Capital and reserves
   ---------------------------------------------------------------------------
   Share capital                                      34,461            31,094
   Share premium account                               3,389             1,344
   Capital redemption reserve                            521                 -
   Other reserve                                     260,596           263,761
   Profit and loss account                           130,871            71,966
                                                    --------          --------
   ---------------------------------------------------------------------------
   EQUITY SHAREHOLDERS' FUNDS                        429,838           368,165
   ---------------------------------------------------------------------------
   Minority interests (equity)                        17,837            14,398
                                                    --------          --------

   CAPITAL EMPLOYED                                  447,675           382,563
                                                    --------          --------

   Net asset backing per ordinary share (pence)        62.37             53.82




Consolidated Cash Flow Statement
Year ended 31 December                                    2003             2002
                                                     Unaudited          Audited
                                                          £000             £000
-------------------------------------------------------------------------------

Net cash inflow from operating activities              103,927           76,149

Dividends received from associates and joint ventures    5,558            2,955

Returns on investments and servicing of finance        (13,246)         (10,148)

Taxation                                                (6,535)          (4,093)

Capital expenditure and financial investment           (51,655)         (59,132)

Acquisitions and disposals                              30,611          (19,229)

Equity dividends paid                                   (2,116)          (1,924)
                                                    ----------        ---------
Cash inflow/(outflow) before management of 
 liquid resources and financing                         66,544          (15,422)

Management of liquid resources                        (157,939)          85,866

Financing
   Issue of ordinary shares, net of buy back expenses   (1,209)           1,670
   Increase/(decrease) in debt                          98,922          (44,355)
                                                    ----------        ---------
Increase in cash for the year                            6,318           27,759
                                                    ----------        ---------


Non-cash transactions:

On  14  February 2003 the Group redeemed the  outstanding
30p  tranche of 4,378,034 of the convertible subordinated
loan  notes  for £1,313,000, satisfied by  the  issue  of
Ordinary Shares.

On  4  July 2003 the Group redeemed the third 10p tranche
of  the  remaining  convertible subordinated  loan  notes
through  the  payment of £2,126,000  in  cash,  with  the
balance  of  £1,299,000 being satisfied by the  issue  of
Ordinary Shares.

On  9  July  2003  the Company repurchased  10.4  million
Ordinary   Shares  for  an  aggregate  consideration   of
£5,575,000   (excluding  expenses),  which  was   settled
through the issue of convertible subordinated loan notes.



Analysis of Changes in Cash
and Liquid Resources During the Year
Year ended 31 December                           2003                     2002
                                                 £000                     £000
------------------------------------------------------------------------------

Opening balance                               113,827                  169,985
Net cash inflow                                 6,318                   27,759
Increase/(decrease) in liquid resources       157,939                  (85,866)
(Decrease)/increase in bank overdraft            (509)                     509
Currency translation differences               11,888                    1,440
                                           ----------               ----------
Closing balance                               289,463                  113,827
                                           ----------               ----------



Notes to the Preliminary Announcement of Results for
the year ended 31 December 2003


1.   MERGER WITH BRUNEL HOLDINGS PLC
On 13 December 2002, Guinness Peat Group plc (now renamed
GPG (UK) Holdings plc) ("the former GPG") was acquired by
Brunel Holdings plc (now renamed Guinness Peat Group plc)
("the  former  Brunel" or "GPG")  by  means  of  a  Court
Approved  Scheme  of Arrangement.  Due  to  the  relative
value  of  the companies, the shareholders in the  former
GPG  received as a result of the merger more than 98%  of
the  share  capital of the enlarged group.  Although  the
legal form of this transaction was that the former Brunel
acquired the former GPG, the substance of the transaction
was  that the former GPG acquired the former Brunel.  The
group's   financial   statements   have   been   prepared
accordingly using reverse acquisition accounting. The key
features of this basis of consolidation are as follows:
 
• The   consolidated  profit  and loss  account  for  the
  year  ended  31  December 2002 included the results  of  
  the  former  GPG  for the  year then  ended and of  the  
  former Brunel from the date of acquisition.
• The  share  capital  and  statutory reserves  as at  31
  December  2002  related  to  GPG,  but the consolidated 
  profit  and  loss   account  reserves  were  based   on  
  the pre-acquisition  profit and loss  account  reserves  
  of the former GPG as reduced by a  reverse  acquisition  
  reserve (which  represented the  extent to   which  the 
  reserves of the former GPG were capitalised as a result 
  of the reverse acquisition).


2.   2003 ACQUISITIONS AND DISPOSALS
In February 2003, GPG transferred its investment in Coats
plc to Coats Group Ltd, a joint venture in which GPG  has
a  63.97%  economic  interest but  in which GPG's  voting
rights are restricted to 50.00%.

In  May  2003  GPG  reduced  its  investment  in  Turners
Auctions Ltd from 38.78% to 19.99%. This sale generated a
gain  of £4.0 million and from that date Turners Auctions
Ltd ceased to be an associate. In November 2003, GPG sold
the  remainder  of  its shares in Turners  Auctions  Ltd,
generating a further gain of £7.4 million.

In   August  2003  Staveley  Inc  disposed  of  the  Non-
destructive  Testing  Division  of  its  North   American
subsidiary   Staveley   Services  North   America   Inc.,
producing a gain on disposal of £19.1 million.

 
3.   ASSOCIATES AND JOINT VENTURES
The Group's significant associate and joint venture entities 
are as follows:
                                     31 December      31 December
                                            2003             2002

Coats Group                               63.97%              n/a
Nationwide Accident Repair Services       50.00%            50.00%
Harcourt Hill Estate                      50.00%            50.00%
Dawson International                      29.91%            29.91%
Capral Aluminium                          34.26%            31.26%
Green's Foods                             28.91%            22.93%
Turners Auctions                             n/a            38.78%



4.   EARNINGS PER SHARE
Basic  earnings per share is calculated on  a  net  basis
using  the earnings attributable to ordinary shareholders
of  £64.0m (2002: £42.5m) and the weighted average number
of  ordinary  shares in issue during the year  of  689.6m
(2002:  667.2m)  and amounts to 9.28  pence  (2002:  6.36
pence).  For this purpose, the weighted average number of
shares for 2002 represents the number of the former GPG's
shares in issue up to 13 December 2002 and the number  of
GPG  shares in issue from that date. The shareholders  in
the  former GPG received 1 share in GPG for each of their
existing shares in the former GPG as part of the  reverse
acquisition  described  earlier.  Earnings  per  ordinary
share   for  2002  have  been  adjusted  for   the   2003
Capitalisation issue of shares.

For  diluted  earnings  per share, the  weighted  average
number  of ordinary shares in issue is adjusted to assume
conversion  of  all dilutive potential  ordinary  shares,
being  share  options  granted to employees,  Convertible
Loan Notes and Capital Notes.


5.   DIVIDEND
The  Directors propose a final ordinary dividend of  1.00
pence  per  share  for the year ended 31  December  2003,
payable  on 17 May 2004. No interim dividend was declared
during  the year. The proposed final dividend is  subject
to a right for shareholders to elect, instead of the cash
dividend, to receive one new ordinary share for every  70
existing  shares held at the appropriate record date.  An
interim  dividend of 0.91 pence (adjusted to reflect  the
2003  Capitalisation Issue) in respect of the year to  31
December   2002  was  paid  on  19  May   2003   to   GPG
shareholders.  No final dividend was paid  for  the  year
ended 31 December 2002.

There  are  local regulatory differences in the countries
in  which the Group's shares are listed, which can result
in different taxation treatment and timing. This may have
a significant effect on the tax treatment of the dividend
for shareholders resident outside the UK.

The  tax  treatment of the cash dividend  and  the  scrip
dividend alternative, including the availability  of  tax
credits such as franking credits, will be dealt with more
fully  in the Circular which will accompany the Company's
Annual   Report   and  Accounts  (see  note   6   below).
Shareholders are advised to obtain their own professional
advice.


6.   PROPOSED YEAR END TIMETABLE 2004
The Annual General Meeting of the Company will be held on
12  May  2004.  A circular which will contain details  of
the Dividend, the Scrip Dividend Alternative and the 2004
Capitalisation  Issue  ("the Circular")  will  be  posted
shortly.   The  Circular,  together  with  the  forms  of
Election and Notices of Entitlement to the Scrip Dividend
Alternative, will accompany the 2003 Report & Accounts.

In order to accommodate the different market practices of
the  London  Stock  Exchange  ("LSE"),  Australian  Stock
Exchange  ("ASX") and New Zealand Stock Exchange ("NZX"),
being those markets on which GPG's shares are quoted  and
subject  to  approval  of  the  Capitalisation  Issue  by
shareholders,  the  Stock Events  timetable  will  be  as
follows*:

------------------------------------------------------------------------------
Preliminary announcement of results, Dividend and Scrip Dividend       2.03.04
 Alternative and Capitalisation Issue                                  
Shares marked ex-dividend (ASX)                                        5.03.04
Shares marked ex-dividend (UK)                                        10.03.04
Record date for dividend                                              12.03.04
Head securities quoted ex-dividend (NZX)                              15.03.04
Final date for receipt of Scrip Dividend elections                    10.05.04
Final date for receipt of AGM proxies                                 10.05.04
AGM (11:00am UK time)                                                 12.05.04
Allotment of Scrip Shares (5:00pm UK time)                            14.05.04
Payment of Cash Dividend**                                            17.05.04
Update of UK CREST accounts (5:00am UK)                               17.05.04
Dealings commence in Script Dividend Shares                           17.05.04
Dispatch of Scrip Dividend Share Certificates (UK) and holding        17.05.04
 statement (AUS)                                                      
Shares marked Ex-Capitalisation and bonus shares traded on deferred   17.05.04
 settlement basis (ASX)                                               
Dispatch of FASTER mailings notifying NZ holders of the change in     18.05.04
 holdings following the Scrip Dividend allotment                      
Record date for Capitalisation Issue                                  21.05.04
Head shares marked Ex-Capitalisation in NZ                            24.05.04
Allotment of Capitalisation (5:00pm UK time)                          24.05.04
Last day of deferred settlement trading on ASX                        24.05.04
Update of UK CREST accounts (5:00am UK time)                          25.05.04
Shares marked Ex-Capitalisation in UK                                 25.05.04
Dealings commence in Capitalisation Shares                            25.05.04
Post out Capitalisation Shares Certificates (UK) and holding          25.05.04
 statements (Australia)                                               
Dispatch of FASTER statements in NZ notifying NZ holders of change    31.05.04
 in holdings following Capitalisation Issue                          
------------------------------------------------------------------------------

Notes:

*  Actions take place on all three Exchanges on the  date
specified unless otherwise indicated.

** The cash payment  will be made to Shareholders  on the
Australian  and New Zealand share registers in  Australia
and  New Zealand dollars respectively, calculated at  the
rates  of exchange ruling at 4:30pm (UK time) on  10  May
2004.  Shareholders on all three registers will have  the
opportunity to elect for one of the other two currencies,
and  a  circular  containing further  information  and  a
currency election form will be circulated with the Notice
of AGM.

To  ensure  the  integrity of the registers  over  record
dates  and 'ex' dates the 3 registers will be closed  for
transmissions between the registers at certain times.


7. ISSUES OF SHARES
During  the  year, the movements  on the Company's  share 
capital were as follows:

Ordinary 5p shares in issue 1 January 2003                         621,888,241
Exercise of options                                                    465,303
Scrip dividend alternative                                           8,211,461
Share buy-back                                                     (10,419,320)
Capitalisation issue                                                63,301,316
Conversion of CLNs                                                   5,773,174
                                                                   -----------
Total GPG 5p shares in issue 31 December 2003                      689,220,175
                                                                   -----------

8.   NON-STATUTORY ACCOUNTS
This  announcement  does not constitute  full  financial
statements.  The Company's full financial statements for
the  year  ended 31 December 2003, which are being 
prepared in accordance with UK GAAP,  are in the process  
of being  audited  but  have not  yet  been signed  by  the
auditors.  The  financial  information for 2002 has been
extracted  from  the  latest  published accounts.  These
accounts  have  been  delivered  to  the  Registrar  of
Companies.  The  report  of  the  auditors  on  the 2002
accounts was unqualified and did not contain a statement
under s237(2) or s237(3) of the Companies Act 1985.




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