Interim Results

Guinness Peat Group PLC
4 September 2001


                            
                 GUINNESS PEAT GROUP plc
                ('GPG' or 'the Company')

   Interim Results for the Six Months to 30 June 2001

                  Chairman's Statement


Another  satisfactory half year for GPG  with  an  active
investment  program  and several good realisations  which
contributed to the profit of £12.3 million. This is after
writing off our investment of £5.3 million in Otter  Gold
Ltd  (which is, hopefully, an extreme case scenario)  and
exchange losses of £3.1 million for the period.

As  mentioned  in previous Reports, the  results  of  six
monthly  periods  are  not  an accurate  guide  to  GPG's
performance, which can only be properly measured  over  a
period  of some years.  Nevertheless, the first  half  of
the  2001  year  represents  a  pleasing  combination  of
genuine progress and an improved accounting result.

We   have   continued  to  pursue  various   avenues   of
'shareholder activism' with mixed success, but overall to
the  advantage of GPG and other investors.  In March,  we
reported  on our substantial investment in Inchcape  plc,
where  we  have been an advocate for change  in  business
strategy,  which, in our view, would enhance  shareholder
value.    Although  Inchcape  has  not   accepted   these
arguments,  the market value of the shares has  been  re-
rated  on  other factors which may be only  of  temporary
duration.  We have therefore sold approximately  half  of
our  shareholding, although we remain one of the  largest
holders in the company.

We  have also acquired an 8% stake in Inchcape Motors Ltd
in  Singapore, which is 63% owned by Inchcape plc.  We do
not believe the additional public listing has any logical
merit  for  Inchcape, or for minorities, and  GPG  has  a
possible  role  as  a catalyst for alternative  proposals
which may be to the greater advantage of all shareholders
in the company.

Commencing  in 1999, GPG accumulated a large shareholding
in  Time Products plc and was instrumental in influencing
and  negotiating a management buyout earlier  this  year.
Time Product's specialised business (fashion watches) and
strong  family  heritage was ultimately  more  suited  to
private  ownership  than  as  a  public  company.    This
transaction settled after 30 June and will appear in  the
full year accounts.

Staveley Industries plc, the former 'bete noire'  of  our
share  portfolio, completed its first  six  months  as  a
wholly-owned  subsidiary with a modest,  but  acceptable,
contribution  of  £2.2 million.  As a logical  structural
change,  we  have divided the UK and USA businesses  into
two separately managed and reporting units to reflect the
distinctly  different industries in which  they  operate.
The  US  manufactures and supplies testing equipment  and
services  whereas  the  UK  provides  various  forms   of
mechanical and electrical contracting and maintenance and
is also a major supplier of fire protection systems.  The
UK  operations, in particular, would be more effective on
a  larger  scale and we continue to examine a  number  of
possibilities for rationalisation by way of merger,  sale
or acquisition.

New  Zealand has produced plenty of activity  this  year,
albeit some of it rather unrewarding to date.

Enza has been embroiled in non-stop controversy from  the
day  GPG  became a major shareholder in August  2000.   A
legacy  of poor commercial decisions on behalf of growers
by the former Apple & Pear Marketing Board, combined with
more   demanding  overseas  markets,  has  placed   great
pressure  on  the  industry and  GPG  has  contributed  a
disproportionate level of responsibility  and  commitment
to resolve these issues.

Forthcoming  deregulation  likely  presages   a   further
unsettled period, but in the longer run (say, two  years)
should  be  favourable for Enza which  will  continue  to
represent  the  bulk  of the industry,  based  purely  on
competitive merit and experience.  A less attractive, but
conceivable  scenario,  is  the  total  collapse  of  New
Zealand's  fruit  experts  without  some  moderation   by
disruptive minority elements.

GPG's  investment is NZ $6.7 million, which is important,
but  not critical, if Enza fails to realise the potential
which we still believe it has in the future.

As  most  New Zealand shareholders will already  be  well
aware,  Otter  Gold has proved to be a resounding  'dud'.
It  is  small  comfort that the problems derive  entirely
from  the previous convoluted regime, but which does  not
disguise GPG's misjudgment in the level and timing of our
investment  in this company.  Having 'bitten the  bullet'
to  write-off the book value of our shareholding, we  are
nevertheless  tackling  the recovery  process  with  full
vigour and some salvage can be reasonably anticipated  in
future years.

Since 30 June, we have sold our shares in Wrightson  Ltd,
for  more  than  double our entry price, thus  concluding
GPG's role in a mutually successful association over  the
past two years.

The  recent  NZ$250 million (£75 million)  Capital  Notes
offer  to New Zealand investors was well received and  is
expected  to be fully subscribed.  There are no  specific
plans  for  the  additional funding  which  will  augment
existing  strong liquidity and other sources  of  capital
when required.

A   lower   profile  for  GPG  in  Australia  but,   more
importantly,  sound and steady progress in  a  number  of
areas.

Joe  White  Maltings Ltd continues to  gain  in  strength
after  years in the doldrums and is now a 51%  subsidiary
of  GPG  as  a consequence of the purchase of  additional
shares during the period.

The acquisition of 27% of Capral Aluminium earlier in the
year  was  timely  in view of the subsequent  sharemarket
resurgence  of  the  building products  sector.   We  are
represented on the Board of the company and look  forward
with confidence to future performance.

In the last Annual Report, we referred to the creation of
Tomorrow  Ltd  to invest in 'special situations'  in  the
technology sector.  This was a worthwhile experiment, but
did  not  make  the impact we originally  hoped  and  the
structure has been dismantled without material  loss  and
before 'cash burn' exceeded a minimal level.

Overall, the year 2001 (the eleventh since the new  Board
assumed  control in 1990) has so far been a good one  for
GPG.  We intend to maintain the momentum in the remaining
months of the current financial period to 31 December and
we look forward to presenting an entirely positive report
to shareholders in March 2002.

Ron Brierley,
Chairman,
4 September 2001


Enquiries:

Guinness Peat Group plc                    020 7236 0336
Blake Nixon, Executive Director

Square Mile BSMG Worldwide                 020 7601 1000
Kevin Smith/Becky Jewers






CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 June 2001

                                    6 months     6 months         Year
                                       ended        ended        ended
                                     30 June      30 June           31
                                        2001         2000     December
                                   Unaudited     Unudited         2000
                                        £000     Restated      Audited
                                                     £000         £000
                                                                      
Group turnover                      189,322       66,749      148,200
                                   ========      ========     ========        
                          
Group operating profit               20,272       10,477       20,255
Share of operating profit of                                          
joint ventures and associates        (3,695)       2,065        2,723
                                   _________     ________     ________        
                           
Profit before interest payable       16,577       12,542       22,978
Interest payable                     (1,339)        (388)      (2,001)
                                   _________     ________     ________        
                                        
Profit before taxation               15,238       12,154       20,977
Taxation                             (1,244)      (1,011)      (2,309)
                                   _________     ________     ________        
                           
Profit after taxation                13,994       11,143       18,668
Minority interests                   (1,688)         364           72
                                   _________     ________     ________        
                          
PROFIT ATTRIBUTABLE TO ORDINARY                              
SHAREHOLDERS                         12,306       11,507       18,740
Dividends proposed                        -            -       (4,757)
                                   _________     ________     ________        
                          
Profit retained for the period       12,306       11,507       13,983
                                   =========     ========     ========        
                          
Earnings per Ordinary share 
 - basic (pence)                        2.34         2.05         3.46
Dividends per Ordinary share                                 
 (pence)                                   -            -         0.91
                                                                      



CONSOLIDATED BALANCE SHEET
As at June 2001

                                     30 June      30 June           31
                                        2001         2000     December
                                   Unaudited    Unaudited         2000
                                        £000     Restated      Audited
                                                     £000         £000
Fixed assets                                                          
Intangible assets                    (2,986)        (934)      (3,152)
Tangible assets                                              
                                     48,959       33,882       50,552
Investments                         214,808      178,601      199,615
                                   ________      _______      _______         
                                    260,781      211,549      247,015
                                   ________      _______      _______
Current assets                                                        
Debtors                              75,471       29,969       76,554
Stocks/Development work in                                       
progress                             22,653       21,726       21,682
Investments                          19,099       19,592       31,277
Cash at bank                         53,680       90,775       58,924
                                   ________      _______      _______         
                                    170,903      162,062      188,437
                                   ________      _______      _______         
                              
Creditors: amounts falling due                                        
within one year
     Trade and other creditors      (79,237)     (30,403)     (84,725)
     Convertible subordinated       
     loan notes                      (3,863)           -       (3,863) 
     Other borrowings                (6,822)     (16,291)     (18,304)
                                    ________     ________     ________        
                                    (89,922)     (46,694)    (106,892)
                                    ________     ________     ________        
                           
Net current assets                   80,981      115,368       81,545
                                    ________     ________     ________        
                         
Total assets less current                                    
liabilities                         341,762      326,917      328,560
                                                                      
Creditors: amounts falling due                                        
after one year
     Trade and other creditors         (923)        (840)        (758)
     Convertible subordinated       
     loan notes                     (15,450)     (19,313)     (15,450)
     Other borrowings                (8,938)      (7,932)     (11,456)
                                    ________     ________     ________        
     
                                    (25,311)     (28,085)     (27,664)
                                                                      
Provisions for liabilities and      
charges                             (10,185)      (4,208)     (10,740)
                                    ________     ________     ________
                                                                      
Net assets                          306,266      294,624      290,156
                                    ========     ========     ========        
Capital and reserves                                                  
     Share capital                   53,578       47,567       47,567
     Share premium                   11,628       17,432       17,432
     Capital redemption reserve       3,863        3,863        3,863
     Profit and loss account        219,015      206,444      203,341
                                    _______      _______      _______         
                                
EQUITY SHAREHOLDERS' FUNDS                                      
                                   288,084       275,306      272,203
Minority interests (equity)         18,182        19,318       17,953
                                   _______       ________     _______         
                                   306,266       294,624      290,156
                                   =======       ========     =======         
                         
Net assets per share* 
           - (pence)                 53.77         52.62        52.02
           - (Australian cents)     148.83        132.66       139.86
           - (New Zealand cents)    188.18        169.21       175.62
                                                                      
* The net assets per share for June 2000 and December 2000 have been
adjusted for the 2001 Capitalisation Issue.


CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 June 2001



                                    6 months     6 months         Year
                                       ended        ended        ended
                                     30 June      30 June           31
                                        2001         2000     December
                                   Unaudited    Unaudited         2000
                                        £000     Restated      Audited
                                                     £000         £000
                                                                      
Net cash inflow from operating                               
 activities                          31,274       23,631       26,961
Dividends received from                                      
 associates                             396          342       13,476
Returns on investments and         
 servicing of finance                (1,372)        (565)      (2,528)
Taxation                             (1,104)        (444)        (626)
Capital expenditure and            
 financial investment               (17,570)      (3,609)     (53,583)  
Acquisitions and disposals             (586)      (6,703)      (4,655)
Equity dividends paid                (1,033)      (4,662)      (4,662)        
                                    ________     ________     ________
Cash inflow / (outflow) before                                        
 management of liquid resources                   
 and financing                       10,005        7,990       (25,617)
Management of liquid resources        8,607       (6,289)       25,063
Financing                                                             
     Issue of ordinary shares           207          274           (74)
     (Decrease)/increase in debt    (13,318)      (1,016)        5,787
                                    ________     ________     _________       
                           
Increase in cash in the period        5,501          959         5,159
                                    ________     ________     _________       
                          
Reconciliation of net cash flow                                       
to movement in net funds
                                                                      
Increase in cash in the period        5,501          959         5,159
Cash (inflow) / outflow from      
 liquid resources                    (8,607)       6,289       (25,063)
Cash outflow / (inflow) from                                          
 decrease / increase in debt         13,318        1,016        (5,787)
                                    ________     ________     _________       
                          
Change in net funds resulting                             
 from cash flows                     10,212        8,264       (25,453)
                                                                        
Acquisition of subsidiaries               -      (21,250)      (21,453)
                                   
Currency translation        
 differences                         (1,456)      (2,423)       (5,653)       
                                    ________     _________    _________
Other non-cash movements 
 (see below)                              -      (19,313)      (19,313)
                                                                      
Movement in net funds for 
 the period                           8,756      (34,722)      (72,110)     
Opening net funds                     9,851       81,961        81,961
                                    ________     _________     ________       
                          
Closing net funds                    18,607       47,239         9,851
                                    ________     _________     ________       
                           
Non-cash transaction                                                  
On 2 June 2000, the  Company  repurchased  38.6  million  shares for an
aggregate  consideration of £19,313,000  which  was settled through the
issue of Convertible Subordinated Loan Notes.
                                                                      

NOTES TO THE FINANCIAL STATEMENTS

1.   The  interim financial information has been prepared
     on  a  basis consistent with the accounting policies
     adopted in the group's financial  statements for the 
     year ended 31 December 2000.The comparatives for the 
     period  ended  30  June  2000  have been restated to 
     consolidate   Joe  White  Maltings  Ltd  and  equity 
     account  Wrightson Ltd in line  with  the  treatment 
     adopted  in  the  financial  statements for the year 
     ended 31 December 2000. In addition, for consistency 
     with the current period,the Convertible Subordinated 
     Loan  Notes ('CLNs') have  all been classified at 30 
     June 2000 as  being  repayable  after  more than one 
     year ( see  note  4  below).  These   changes   have 
     increased the profit for the period to 30 June  2000  
     by  £917,000 including  £962,000  from  the  release  
     of negative goodwill.

2.   Abridged  accounts  (Companies  Act  1985)   -   The
     information for the year ended 31 December 2000  has
     been  extracted  from the latest published  accounts
     which  have  been  delivered  to  the  Registrar  of
     Companies.  The  report  of the  auditors  on  those
     accounts was unqualified.

3.   Earnings per share - The calculation of earnings per
     Ordinary  share  is based on profit  after  taxation
     attributable   to  shareholders  and  the   weighted
     average  number  of 525,888,368 Ordinary  shares  in
     issue  during the period. The comparatives  for  the
     periods  to 30 June 2000 and 31 December  2000  have
     been  adjusted  for the Capitalisation  Issue  which
     took place in May 2001.

4.   On  6  July  2001,  those holders of  the  Company's
     CLNs   who  elected   to  convert   their   Election  
     Amounts  were issued  with 3,474,801 Ordinary shares 
     of 10p  each ('Conversion Shares') and the remaining  
     noteholders  were  repaid Redemption Amounts of £2.2  
     million  in  cash.  The   Conversion   Shares   were  
     ineligible  to receive any interim dividend declared 
     for the  half year  to  30  June 2001. As no interim 
     dividend  has been  declared, the Conversion  Shares  
     will,  with immediate effect, rank equally  with the 
     other shares of the Company,resulting in there being 
     539,255,890 fully  paid  Ordinary shares of 10p each  
     in  issue.  Following  application  to  the  London, 
     Australian  and  New  Zealand  Stock  Exchanges, the 
     separate  quotation  of  the  Conversion Shares will 
     cease.

5.   Dividends  - The directors have not recommended  the
     payment  of  an  interim dividend. The  dividend  of
     1.00p per share for the year ended 31 December  2000
     has been adjusted for the 2001 Capitalisation Issue.

6.   Publication  -  This  statement  is  being  sent  to
     shareholders  and  copies will be available  at  the
     registered  office of the Company, 2nd Floor,  21-26
     Garlick Hill, London, EC4V 2AU.