IFRS Update

Huveaux PLC
11 May 2007

11 MAY 2007

                                  HUVEAUX PLC

       UPDATE ON ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS

Huveaux PLC ('Huveaux') is preparing for the adoption of International Financial
Reporting Standards as adopted by the European Union ('adopted IFRS') as its
primary accounting basis for the year ending 31 December 2007. As part of this
transition, Huveaux is today presenting unaudited financial information prepared
in accordance with adopted IFRS for the year ended 31 December 2006 and for the
six months ended 30 June 2006. The purpose of this statement is to present the
effects of adopted IFRS on the Group for 2006 full-year and half-year
comparative periods.

The principal changes to the Group's reported financial information under UK
GAAP* arising from the adoption of IFRS are as a result of:

   • the requirement not to amortise goodwill;
   • the recognition of intangible assets from business combinations and the
     related amortisation of these intangible assets; and
   • the recognition of deferred tax assets and liabilities on a different
     basis.

*throughout this statement 'UK GAAP' means the accounting standards and
framework in issue at 31 December 2006, which were applied to the financial
statements of the Group for the year ended 31 December 2006.

For the year ended 31 December 2006 the expected impact of the adoption of IFRS
is to decrease profit attributable to equity shareholders by £1.2 million,
comprising principally the amortisation of intangible assets of £2.1 million,
partially offset by deferred tax adjustments of £0.4 million and the reversal of
goodwill amortised under UK GAAP of £0.5 million. Net assets for the Group at 31
December 2006 have decreased from £51.5 million to £48.0 million.

Dan O'Brien, Finance Director of Huveaux, commented:

'The unaudited financial information provided today shows how adopted IFRS
impacts Huveaux's recent results in advance of its adoption in the 2007
financial year. The most significant changes are that Huveaux will no longer
amortise goodwill and that Huveaux has recognised as intangible assets the
publishing rights, the value of customer relationships and brand values
purchased with all businesses acquired since 1 October 2003.'


Enquiries:
Huveaux PLC                                           
John van Kuffeler, Executive Chairman
Dan O'Brien, Group Finance Director
Tel: [phone]

Finsbury                                              
James Leviton
Don Hunter
Tel: [phone]



About Huveaux:

Huveaux PLC is a public limited company listed on the Alternative Investment
Market (ticker HVX.L).

The Company was formed in 2001 with the objective of building a substantial,
high-quality media group. Huveaux has completed and successfully integrated 13
acquisitions over the past six years and employs more than 500 staff in London,
Paris, Brussels, Edinburgh and four other UK regional offices.

The Group now consists of four Divisions, each of which has strong brands and
market leading positions:


Education Division

The leading supplier of study aids and revision guides in the UK, with full
product coverage across all subjects and stages of the entire curriculum in UK
schools. The Division comprises Lonsdale, Letts Educational and Leckie & Leckie.


Healthcare Division

One of the leading providers of specialist B2B publications and online education
for the medical sector in France. The Division comprises Panorama du Medecin, a
leading weekly magazine for French doctors, Le Concours Medical and La Revue du
Praticien, market-leading Continuing Medical Education magazines, Egora.fr, the
leading medical information website, a medical conference business and a number
of other magazines and reference materials.


Learning Division

A leading provider of resources to learning communities in the UK, including
e-learning solutions for the public and private sector and blended learning
solutions, seminars and events for the political, public affairs and training
markets. The Division comprises Epic, the UK market leader in e-learning, TJ
magazine and the highly acclaimed Westminster Explained conferences and seminars
business.


Political Division

The market leader in political business-to-business publishing in the UK and EU,
serving both the political and public affairs communities. The Division
comprises Dods Parliamentary Companion, The House Magazine, Epolitix.com and
numerous other political magazines, reference books, monitoring products and
revenue-generating websites as well as events, awards and recruitment services.


INTRODUCTION

Huveaux is preparing for the adoption of International Financial Reporting
Standards as adopted by the European Union ('adopted IFRS') as its primary
accounting basis in its consolidated accounts, following the adoption of
Regulation No. 1606/2002 by the European Parliament on 19 July 2002.

This press release explains how Huveaux's previously reported UK GAAP financial
performance and position are reported under adopted IFRS. It provides, on an
adopted IFRS basis, reconciliations from UK GAAP to adopted IFRS for the
following unaudited consolidated information:

   • balance sheets at 1 January 2006, 30 June 2006 and 31 December 2006; and
   • income statements for the six month period ended 30 June 2006 and the
     year ended 31 December 2006.

These statements are prepared on the basis set out in 'Basis of preparation'
below. Detailed cash flow statements have not been prepared as the only
adjustment in each period is a reclassification between the purchase of tangible
and intangible assets. Where accounting policy changes have not been discussed
in this document, the accounting policies under UK GAAP should be referred to.

Attention is drawn to the fact that, under adopted IFRS, only a complete set of
consolidated financial statements comprising a balance sheet, income statement,
statement of recognised income and expense, cash flow statement, together with
comparative information and explanatory notes, can provide a fair presentation
of the Group's financial position, results of operations and cash flows.

The preliminary adopted IFRS financial information set out on pages 8 to 13 does
not constitute the company's statutory accounts for the year ended 31 December
2006. Those accounts, which were prepared under UK GAAP, have been reported on
by the company's auditors and delivered to the registrar of companies; their
report was (i) unqualified, (ii) did not include reference to any matters to
which the auditors drew attention by way of emphasis without qualifying their
report, and (iii) did not contain a statement under section 237(2) or 237(3) of
the Companies Act 1985.


BASIS OF PREPARATION

The financial information presented in this document has been prepared on the
basis of the recognition and measurement requirements of adopted IFRSs in issue
that either are endorsed by the EU and effective (or available for early
adoption) at 31 December 2007 or are expected to be endorsed and effective (or
available for early adoption) at 31 December 2007, the Group's first annual
reporting date at which it is required to use adopted IFRSs. Based on these
adopted and unadopted IFRSs, the directors have made assumptions about the
accounting policies expected to be applied, the significant effects of which are
set out below, when the first annual IFRS financial statements are prepared for
the year ending 31 December 2007.

In addition, the adopted IFRSs that will be effective (or available for early
adoption) in the annual financial statements for the year ending 31 December
2007 are still subject to change and to additional interpretations and therefore
cannot be determined with certainty. Accordingly, the accounting policies for
that annual period will be determined finally only when the annual financial
statements for the Group are prepared for the year ending 31 December 2007.

The Group's financial results for the six month period ending 30 June 2007 will
be prepared on the basis of the principles of adopted IFRS, and will be
presented together with details of the accounting policies expected to be
applied for the year ending 31 December 2007.



IFRS 1 exemptions

IFRS 1, 'First-time Adoption of International Financial Reporting Standards'
sets out the procedures that the Group must follow when it adopts IFRS for the
first time as the basis for preparing its consolidated financial statements. As
explained above, the Group is required to establish what its adopted IFRS
accounting policies are expected to be as at 31 December 2007 and, in general,
apply these retrospectively to determine the IFRS opening balance sheet at its
date of transition, 1 January 2006.

This standard provides a number of optional exceptions to this general
principle. The most significant of these for the Group relates to business
combinations that occurred before the opening IFRS balance sheet date (IFRS 3,
'Business Combinations'). The Group has elected not to apply IFRS 3
retrospectively to business combinations prior to 1 October 2003.

The Group has also set its translation reserve at zero at the date of
transition.


KEY IMPACT ANALYSIS

The analysis below sets out the most significant adjustments arising from the
transition to adopted IFRS for the year ended 31 December 2006. Similar
adjustments arise from the transition to adopted IFRS for the six months ended
30 June 2006. Adjustments are referred to by letter, referenced to the
transition statements and the accompanying explanation of adjustments on pages 8
to 13.

1) Presentation of Financial Statements

Details on the key presentational differences under adopted IFRS are presented
in Appendix A.

2) Intangible Assets

(a) Goodwill and acquired intangible asset amortisation

IFRS 3 'Business Combinations' requires that, when businesses are acquired, any
intangible assets acquired with the business are valued separately and
capitalised as an intangible asset. Any residual difference between the
consideration paid or payable and the net fair value of the identifiable assets,
liabilities and contingent liabilities acquired is recognised as goodwill. IFRS
3 also requires that goodwill is not amortised but is instead subject to an
annual impairment review, whereas intangible assets are amortised over their
useful lives. As the Group has elected not to apply IFRS 3 retrospectively to
business combinations prior to 1 October 2003 under IFRS, the publishing rights
arising from combinations before that date therefore remain at the amount shown
within publishing rights under UK GAAP at 1 January 2006 of £13.2 million and so
there is no impact from those acquisitions on the 2006 opening balance sheet.

The Group has recognised intangible assets on acquisition in relation to
publishing rights, customer relationships, order books and sundry other assets.
The amount in the Group's balance sheet in respect of all intangible assets
(before amortisation and deferred tax adjustments) is £38.0 million at 30 June
2006 and £48.0 million at 31 December 2006. Adjustment (a) in the transition
balance sheets on pages 8 to 13

Under IFRS, these intangible assets are amortised over their useful lives.
Management has assessed their useful lives and the effect of amortising these
assets is £2.1 million for the year ended 31 December 2006 and £0.9 million for
the six months ended 30 June 2006. This is offset by the fact that goodwill is
no longer amortised, the effect of which on the income statement is to increase
profit before tax by £0.5 million for the year ended 31 December 2006 and £0.1
million for the six months ended 30 June 2006. Goodwill has been reviewed for
impairment at each balance sheet date and no impairments were identified.
Adjustment (b)


A deferred tax liability has been set up on creation of these intangibles and is
released over the period over which the assets are amortised. Upon creation of
this liability, an equal and opposite adjustment is posted to increase goodwill
arising on the business in question. This adjustment to goodwill is not
amortised. The impact on the income statement of releasing elements of the
liability is £0.7 million for the year ended 31 December 2006 and £0.3 million
for the six months ended 30 June 2006. The deferred tax liability in respect of
intangibles stands at £6.9 million at 30 June 2006 and £9.4 million at 31
December 2006. Adjustment (c)

IFRS 3 requires that deferred revenue on acquisition of businesses is measured
at the cost of fulfilling the obligation at the acquisition date. This has
resulted in an adjustment to reduce deferred revenue acquired on previous
acquisitions by £0.6 million. Adjustment (d1)

In addition, upon revisiting the fair value of assets acquired under IFRS 3, an
adjustment of £0.3 million was made to increase the fair value of stock acquired
with the purchase of Fenman. Adjustment (d2)

(b) Computer software

Under UK GAAP, all capitalised computer software is included within tangible
fixed assets on the balance sheet. Under IAS 16 'Property, Plant and Equipment',
only computer software that is integral to a related item of hardware should be
included as property, plant and equipment. All other computer software should be
recorded as an intangible asset. Accordingly, a reclassification of £0.2 million
has been made between property, plant and equipment and intangible assets at 1
January 2006 and 30 June 2006, and £0.4 million at 31 December 2006. Adjustment
(e)

(c) Plate costs

Under UK GAAP the Group accounted for plate costs incurred in the creation of
revision material within inventories. Under IFRS they have been reclassified as
intangible assets. This is not material at 1 January 2006 or 30 June 2006; an
adjustment of £0.5 million has been posted in the 31 December 2006 balance
sheet. Adjustment (k)

3) Deferred and Current Taxes

The scope of IAS 12 'Income Taxes' is wider than the corresponding UK GAAP
standards, and requires deferred tax to be provided on the majority of temporary
differences, rather than just on timing differences as under UK GAAP. In
particular this has resulted in deferred tax assets and liabilities being set up
in respect of differences between the net book value and the tax base of
intangible assets (see section 2(a) above).

IAS 12 also does not allow deferred tax to be discounted which was the Group's
policy under UK GAAP.  The effect of not applying discounting under adopted IFRS
is to increase the tax charge by £0.2 million in the year ended 31 December
2006. Adjustment (f)

The deferred tax asset of £47,000 at 31 December 2006 has been reclassified
within the deferred tax liability rather than offset against the pension
liability. Adjustment (g)

IAS 12 also requires deferred tax to be provided in respect of the Group's
liabilities under its post employment benefit arrangements and on other employee
benefits such as share option schemes. There is no material difference between
the recognition of deferred tax on these items under UK GAAP and adopted IFRS.

Under adopted IFRS the Group has reclassified all deferred tax balances within
liabilities, as both UK and French deferred tax balances are liabilities.
Adjustment (h)

4) Discontinued operations and assets held for sale

IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations' requires
that any assets held for sale are recognised as current assets in the balance
sheet. The effect of this adjustment is a reclassification between fixed assets
and current assets of £0.1 million at 1 January 2006, £0.3 million at 30 June
2006 and £0.2 million at 31 December 2006. Adjustment (i)

IFRS 5 also requires that assets held for sale are not depreciated once they
have been reclassified as such. The impact of this is not material in any
period.

5) Financial instruments

The Group holds interest rate caps on its Sterling and Euro loans. IAS 32
'Financial Instruments: Disclosure and Presentation' and IAS 39: 'Financial
Instruments: Recognition and Measurement' require that, as the criteria for
hedge accounting are not met, these derivatives are fair valued and any
movements in this fair value are recognised in the income statement.

The difference between fair value and book value of the cost of these caps at 30
June 2006 and 31 December 2006 is not sufficiently material to require
adjustment. The book value of these instruments has been recognised under a
separate heading on the balance sheets. Adjustment (j)

6) Earnings per share ('EPS')

Under adopted IFRS, adjusted EPS is not shown on the face of the income
statement. The calculation of EPS for the Group is prepared in the same way
under both UK GAAP and IFRS.



Appendix A

The key presentational differences are as follows:

Income statements

   •Net financing costs are analysed between financing income and financing
    costs on the face of the income statement.

Balance sheet

   •Provisions are analysed between current and non current liabilities;
   •Deferred tax is shown separately on the face of the balance sheet and is
    disclosed as non current; and
   •The defined benefit pension deficit is shown separately on the face of
    the balance sheet.

Cash flow

   •The reconciliation of operating profit to operating cash flows is shown
    at the beginning of the cash flow rather than in a note.




HUVEAUX PLC                                       Previously   IFRS 3   IAS 38   IAS 12  IFRS 3  IFRS 3
CONSOLIDATED BALANCE SHEET                            stated      (a)      (b)      (c)    (d1)    (d2)
1 JANUARY 2006                                       UK GAAP
                                                       £'000    £'000    £'000    £'000   £'000   £'000

Goodwill                                               3,311    9,798       56    7,763   (587)   (250)
Intangible assets                                     47,772  (9,798)  (1,965)
Property, plant and equipment                          1,000
_______________________________________________________________________________________________________
Non-current assets                                    52,083        -  (1,909)    7,763   (587)   (250)

Inventories                                            2,150
Trade and other receivables                           11,491
Derivative financial instruments                           -
Deferred tax asset                                     1,180
Cash and cash equivalents                              2,678
Assets held for sale                                       -
_______________________________________________________________________________________________________
Current assets                                        17,499        -        -        -       -       -

Income tax payable                                     (254)
Provisions for liabilities and charges               (1,552)
Trade and other payables                            (13,569)
_______________________________________________________________________________________________________
Creditors < 1 year                                  (15,375)        -        -        -       -       -
_______________________________________________________________________________________________________
Net current assets                                     2,124        -        -        -       -       -
_______________________________________________________________________________________________________
Total assets less current liabilities                 54,207        -  (1,909)    7,763   (587)   (250)

Non current liabilities
Interest bearing loans and borrowings                (9,807)
Employee benefits                                       (96)
Deferred tax liability                                     -                    (7,173)
Other non-current liabilities                          (258)
_______________________________________________________________________________________________________
Net assets                                            44,046        -  (1,909)      590   (587)   (250)
_______________________________________________________________________________________________________
Capital and reserves
Issued capital                                        14,017
Share premium                                         26,795
Other reserves                                           409
Retained earnings                                      2,825           (1,909)      590   (587)   (250)
_______________________________________________________________________________________________________
Equity attributable to equity holders of parent       44,046        -  (1,909)      590   (587)   (250)
_______________________________________________________________________________________________________

Note:  The translation reserve has been set to zero at 1 January 2006 in accordance with the provisions of IFRS 1.

.../Cont

HUVEAUX PLC                                       IAS 16  IAS 12  IAS 12/19   IAS 12  IFRS 5      Restated
CONSOLIDATED BALANCE SHEET                           (e)     (f)        (g)      (h)     (i)         under
1 JANUARY 2006                                                                                adopted IFRS
                                                   £'000   £'000      £'000    £'000   £'000         £'000

Goodwill                                                   (222)                                    19,869
Intangible assets                                    210                               (131)        36,088
Property, plant and equipment                      (210)                                               790
__________________________________________________________________________________________________________
Non-current assets                                     -   (222)          -        -   (131)        56,747
Inventories                                                                                          2,150
Trade and other receivables                                                                         11,491
Derivative financial instruments                                                                         -
Deferred tax asset                                            35         41  (1,256)                     -
Cash and cash equivalents                                                                            2,678
Assets held for sale                                                                     131           131
__________________________________________________________________________________________________________
Current assets                                         -      35         41  (1,256)     131        16,450
Income tax payable                                                                                   (254)
Provisions for liabilities and charges                                                             (1,552)
Trade and other payables                                                                          (13,569)
__________________________________________________________________________________________________________
Creditors < 1 year                                     -       -          -        -       -      (15,375)
__________________________________________________________________________________________________________
Net current assets                                     -      35         41  (1,256)     131         1,075
__________________________________________________________________________________________________________
Total assets less current liabilities                  -   (187)         41  (1,256)       -        57,822
Non current liabilities
Interest bearing loans and borrowings                                                              (9,807)
Employee benefits                                                      (41)                          (137)
Deferred tax liability                                                         1,256               (5,917)
Other non-current liabilities                                                                        (258)
__________________________________________________________________________________________________________
Net assets                                             -   (187)          -        -       -        41,703
__________________________________________________________________________________________________________
Capital and reserves
Issued capital                                                                                      14,017
Share premium                                                                                       26,795
Other reserves                                                                                         409
Retained earnings                                          (187)                                       482
__________________________________________________________________________________________________________
Equity attributable to equity holders of parent        -   (187)          -        -       -        41,703
__________________________________________________________________________________________________________

Note:  The translation reserve has been set to zero at 1 January 2006 in accordance with the provisions of IFRS 1.




HUVEAUX PLC                   Previously  IFRS 3  IAS 38  IAS 12 IFRS 3  IFRS 3
CONSOLIDATED BALANCE SHEET        stated     (a)     (b)     (c)   (d1)    (d2)
30 JUNE 2006                     UK GAAP
                                   £'000   £'000   £'000   £'000  £'000   £'000

Goodwill                           3,227   9,798     140   7,763  (587)   (250)
Intangible assets                 47,772 (9,798) (2,848)
Property, plant and equipment      1,302
________________________________________________________________________________
Non-current assets                52,301       - (2,708)   7,763  (587)   (250)

Inventories                        1,941
Trade and other receivables       10,845
Derivative financial                   -
instruments
Deferred tax asset                 1,180
Cash and cash equivalents          1,033
Assets held for sale                   -
________________________________________________________________________________
Current assets                    14,999       -       -       -      -       -

Income tax payable                 (252)
Provisions for liabilities         (615)
and charges
Trade and other payables        (13,559)
________________________________________________________________________________
Creditors < 1 year              (14,426)       -       -       -      -       -
________________________________________________________________________________
Net current assets                   573       -       -       -      -       -
________________________________________________________________________________
Total assets less current         52,874       - (2,708)   7,763  (587)   (250)
liabilities

Non current liabilities
Interest bearing loans and       (9,328)
borrowings
Employee benefits                   (96)
Deferred tax liability                 -                 (6,901)
Other non-current liabilities          -
________________________________________________________________________________
Net assets                        43,450       - (2,708)     862  (587)   (250)
________________________________________________________________________________
Capital and reserves
Issued capital                    14,017
Share premium                     26,795
Other reserves                       409
Retained earnings                  2,229         (2,708)     862  (587)   (250)
________________________________________________________________________________
Equity attributable to equity     43,450       - (2,708)     862  (587)   (250)
holders of parent
________________________________________________________________________________




.../Cont

HUVEAUX PLC                   IAS 16 IAS 12 IAS 12/19 IAS 12 IFRS 5 IAS 39     Restated
CONSOLIDATED BALANCE SHEET       (e)    (f)     (g)     (h)    (i)    (j)        under
30 JUNE 2006                                                              adopted IFRS
                               £'000  £'000   £'000   £'000  £'000  £'000        £'000

Goodwill                              (222)                                     19,869
Intangible assets                227                         (131)              35,222
Property, plant and equipment  (227)                         (189)                 886
______________________________________________________________________________________
Non-current assets                 -  (222)       -       -  (320)      -       55,977

Inventories                                                                      1,941
Trade and other receivables                                    131   (87)       10,889
Derivative financial                                                   87           87
instruments
Deferred tax asset                       35      41 (1,256)                          -
Cash and cash equivalents                                                        1,033
Assets held for sale                                           189                 189
______________________________________________________________________________________
Current assets                     -     35      41 (1,256)    320      -       14,139

Income tax payable                                                               (252)
Provisions for liabilities                                                       (615)
and charges
Trade and other payables                                                      (13,559)
______________________________________________________________________________________
Creditors < 1 year                 -      -       -       -      -      -     (14,426)
______________________________________________________________________________________
Net current assets                 -     35      41 (1,256)    320      -        (287)
______________________________________________________________________________________
Total assets less current          -  (187)      41 (1,256)      -      -       55,690
liabilities

Non current liabilities
Interest bearing loans and                                                     (9,328)
borrowings
Employee benefits                              (41)                              (137)
Deferred tax liability                                1,256                    (5,645)
Other non-current liabilities                                                        -
______________________________________________________________________________________
Net assets                         -  (187)       -       -      -      -       40,580
______________________________________________________________________________________
Capital and reserves
Issued capital                                                                  14,017
Share premium                                                                   26,795
Other reserves                                                                     409
Retained earnings                     (187)                                      (641)
______________________________________________________________________________________
Equity attributable to equity      -  (187)       -       -      -      -       40,580
holders of parent
______________________________________________________________________________________




HUVEAUX PLC
CONSOLIDATED INCOME STATEMENT      Previously   IAS 38    IAS 12       Restated
SIX MONTHS ENDED 30 JUNE 2006        stated       (b)      (c)            under
                                     UK GAAP                       adopted IFRS
                                       £'000     £'000    £'000          £'000

Revenue                               20,075                            20,075
Cost of sales                        (12,443)                          (12,443)
_______________________________________________________________________________
Gross profit                           7,632         -        -          7,632
Administration expenses before
amortisation and impairment           (6,100)                           (6,100)
Amortisation of intangible assets        (84)     (799)                   (883)
_______________________________________________________________________________
Profit from operations                 1,448      (799)       -            649
Financing income                          46                                46
Financing costs                         (198)                             (198)
_______________________________________________________________________________
Profit before taxation                 1,296      (799)       -            497
Income tax expense                      (434)               272           (162)
_______________________________________________________________________________
Profit for the period                    862      (799)     272            335
_______________________________________________________________________________

Basic EPS                               0.62p                             0.24p
Diluted EPS                             0.61p                             0.24p





                             
HUVEAUX PLC                  Previously  IFRS  IAS 38  IAS 12 IFRS 3 IFRS 3
CONSOLIDATED BALANCE SHEET       stated   (a)     (b)     (c)   (d1)   (d2)
31 DECEMBER 2006                UK GAAP
                                  £'000 £'000   £'000   £'000  £'000  £'000
Goodwill                         18,087   (8)     541  10,685  (587)  (250)
Intangible assets                47,919     8 (4,097)
Property, plant and               1,589
equipment
____________________________________________________________________________
Non-current assets               67,595     - (3,556)  10,685  (587)  (250)

Inventories                       3,806
Trade and other receivables      15,298
Derivative financial                  -
instruments
Deferred tax asset                1,227
Cash and cash equivalents         4,307
Assets held for sale                  -
____________________________________________________________________________
Current assets                   24,638     -       -       -      -      -

Income tax payable                (412)
Provisions for liabilities        (368)
and charges
Trade and other payables       (19,871)
____________________________________________________________________________
Creditors < 1 year             (20,651)     -       -       -      -      -
____________________________________________________________________________
Net current assets                3,987     -       -       -      -      -
____________________________________________________________________________
Total assets less current        71,582     - (3,556)  10,685  (587)  (250)
liabilities

Non current liabilities
Interest bearing loans and     (19,855)
borrowings
Employee benefits                 (109)
Deferred tax liability                -               (9,442)
Other non-current                  (96)
liabilities
____________________________________________________________________________
Net assets                       51,522     - (3,556)   1,243  (587)  (250)
____________________________________________________________________________
Capital and reserves
Issued capital                   15,200
Share premium                    30,816
Other reserves                      409
Retained earnings                 5,097       (3,556)   1,243  (587)  (250)
____________________________________________________________________________
Equity attributable to           51,522     - (3,556)   1,243  (587)  (250)
equity holders of parent
____________________________________________________________________________


.../Cont
                              
HUVEAUX PLC                   IAS 16 IAS 12 IAS 12/19IAS 12 IFRS 5 IAS 39 IAS38  Restated
CONSOLIDATED BALANCE SHEET       (e)    (f)     (g)     (h)    (i)    (j)   (k)     under
31 DECEMBER 2006                                                                  adopted
                                                                                     IFRS
                               £'000  £'000   £'000   £'000  £'000  £'000 £'000     £'000

Goodwill                              (303)                                        28,165
Intangible assets                410                                        538    44,778
Property, plant and equipment  (410)                         (188)                    991
_________________________________________________________________________________________
Non-current assets                 -  (303)       -       -  (188)      -   538    73,934

Inventories                                                               (538)     3,268
Trade and other receivables                                         (140)          15,158
Derivative financial                                                  140             140
instruments
Deferred tax asset                     (80)      47 (1,194)                             -
Cash and cash equivalents                                                           4,307
Assets held for sale                                           188                    188
_________________________________________________________________________________________
Current assets                     -   (80)      47 (1,194)    188      - (538)    23,061

Income tax payable                                                                  (412)
Provisions for liabilities                                                          (368)
and charges
Trade and other payables                                                         (19,871)
_________________________________________________________________________________________
Creditors < 1 year                 -      -       -       -      -      -     -  (20,651)
_________________________________________________________________________________________
Net current assets                 -   (80)      47 (1,194)    188      - (538)     2,410
_________________________________________________________________________________________
Total assets less current          -  (383)      47 (1,194)      -      -     -    76,344
liabilities

Non current liabilities
Interest bearing loans and                                                       (19,855)
borrowings
Employee benefits                              (47)                                 (156)
Deferred tax liability                                1,194                       (8,248)
Other non-current liabilities                                                        (96)
_________________________________________________________________________________________
Net assets                         -  (383)       -       -      -      -     -    47,989
_________________________________________________________________________________________
Capital and reserves
Issued capital                                                                     15,200
Share premium                                                                      30,816
Other reserves                                                                        409
Retained earnings                     (383)                                         1,564
_________________________________________________________________________________________
Equity attributable to equity      -  (383)       -       -      -      -     -    47,989
holders of parent
_________________________________________________________________________________________




HUVEAUX PLC
CONSOLIDATED INCOME STATEMENT                     Previously       IAS 38   IAS 12   IAS 12      Restated
YEAR ENDED 31 DECEMBER 2006                           stated          (b)      (c)      (f)         under
                                                     UK GAAP                                 adopted IFRS
                                                       £'000        £'000    £'000    £'000         £'000

Revenue                                               45,028                                       45,028
Cost of sales                                       (26,408)                                     (26,408)
_________________________________________________________________________________________________________
Gross profit                                          18,620            -        -        -        18,620
Administration expenses before amortisation         (12,597)                                     (12,597)
and impairment
Amortisation of intangible assets                      (485)      (1,647)                         (2,132)
_________________________________________________________________________________________________________
Profit from operations                                 5,538      (1,647)        -        -         3,891
Financing income                                         161                                          161
Financing costs                                        (872)                                        (872)
_________________________________________________________________________________________________________
Profit before taxation                                 4,827      (1,647)        -        -         3,180
Income tax expense                                   (1,354)                   653    (191)         (892)
_________________________________________________________________________________________________________
Profit for the period                                  3,473      (1,647)      653    (191)         2,288
_________________________________________________________________________________________________________
Basic EPS                                              2.41p                                        1.59p
Diluted EPS                                            2.40p                                        1.58p


Commentary on adjustments

(a) Under IFRS 3 a fair value is assigned to intangibles (such as publishing
rights) acquired in a business combination. The residual difference between
consideration and net assets acquired is recognised as goodwill. This adjustment
reclassifies amounts between goodwill and intangible assets.

(b) Under IAS 38 goodwill is not amortised and so goodwill previously amortised
under UK GAAP is reversed. Intangible assets are then amortised over their
useful lives.

(c) A deferred tax liability is set up on the creation of these intangible
assets, with the corresponding entry increasing goodwill. The liability is
released over the useful life of the intangible asset to match the amortisation
charge.

(d) As part of the exercise to value intangible assets the following fair values
were revised:

1         Deferred revenue in JBB Sante and Parliamentary Communications Limited
at their respective acquisition dates was revalued to the fair value of the
obligation to perform subsequent to acquisition; and

2         The fair value of stock acquired with Fenman has been restated under
IFRS 3.

(e) Under IAS 16 computer software is reclassified as an intangible asset.

(f) Under UK GAAP the Group discounted its deferred tax. This treatment is not
permitted under IAS 12. This affects the value of deferred tax acquired in
business combinations and consequently also affects the initial calculation of
goodwill and intangibles.

(g) The deferred tax asset recognised on the pension liability is recorded
within deferred tax rather than set against the liability.

(h) The Group is able to offset its deferred tax assets and liabilities. This
adjustment reclassifies the balance within non-current liabilities.

(i) In accordance with IFRS 5 assets held for sale are reclassified within
current assets.

(j) Derivatives are brought onto the balance sheet at their fair value. This is
a reclassification adjustment as differences between fair value and book value
were not material at the balance sheet dates.

(k) The Group has reclassified plate costs on revision materials within
intangible assets under IAS 38.



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