Interim Results

GPG (UK) Holdings PLC
25 August 2004

                             GPG (UK) Holdings plc
                          ('GPGUKH' or 'the Company')

               Interim Results for the Six Months to 30 June 2004

GPGUKH is a wholly owned subsidiary of Guinness Peat Group plc ('GPG'). The
Company has in issue Convertible Loan Notes ('CLNs') of which £6 million remains 
to be repaid in 2005 and which are listed on the London and New Zealand Stock 
Exchanges.  As a result the Company produces and publishes annual and interim
results.

GPG manages its operations, including those of GPGUKH and its subsidiaries, on a
Group basis. As such it remains helpful and informative to reproduce here an
extract from a statement made by the Chairman of GPG, Sir Ron Brierley, in his
interim report for the same period which is also being released today.

Blake Nixon, Chairman
25 August 2004

Extract from the statement by the Chairman of Guinness Peat Group plc, in
respect of the half year ended 30 June 2004.


'Another active and productive half year for GPG, although only a modest £5
million result in conventional accounting terms. As we have stated before, many
of GPG's major sources of profit do not fall neatly into six or twelve month
reporting periods and some volatility must be accepted. For the same reason, the
half year is not necessarily indicative of the full year result when various
transactions now under discussion or negotiation are likely to come to fruition.

The acquisition of 100% of Coats plc has also had an initial adverse profit
impact. We made a policy decision to incur various upfront charges and
write-offs as a cost of establishing long term benefits but, in the event, the
process has been more painful than originally anticipated. This will persist
through the remainder of 2004, but 1 January 2005 will be a symbolic date when
Coats begins a new financial year as a reorganised and fully fledged subsidiary
of GPG.

Coats' operating profit improved from £6.2 million to £11.5 million for the half
year, but was eaten up by refinancing charges and, more particularly, by a
geographic mismatch of taxable earnings and unused credits for past losses
carried forward. These are issues which GPG can and will resolve, but which
require more time to implement on a global scale.

Having completed stage 3 of the Coats exercise (Stage 1, Acquisition of
strategic holding, 2. Successful takeover offer, 3. 100% ownership, 4. Full
integration with GPG, 5. Deliver results) it is timely to update the profile of
our other investments and activities and to define some of the opportunities and
challenges on the GPG horizon:

1 Our UK and USA based operating companies are Staveley Industries (UK),
Staveley Inc (USA) and Nationwide Accident Repair Services (50%) with an
aggregate book value of £13 million. Earnings of these companies are
satisfactory on the relatively low level of invested capital, but somewhat less
so in relation to true economic values. Plenty of scope for value improvement
including acquisition and industry rationalisation.

2 Dawson International plc: After some success in the 1990's, this old
established Scottish textile and cashmere manufacturer reverted to problem
status several years ago and in 2003 we prudently wrote-off the value of our
30.36 million shares (29.9%). Subsequently, GPG has provided strong
proprietorial support including subscribing for 81% of a £10 million convertible
notes issue which has assisted to restore the company to a more even keel. In
certain circumstances, the exercise of conversion rights at 5p could increase
our holding well above the 50% mark. The shares are presently trading at around
8p which is probably a fair reflection of their perceived value and prospects.

3 The balance of the UK share portfolio has a market value of £118 million. The
largest components are De Vere Group £50 million, Charter £25 million and Young
& Co's Brewery £17 million. GPG has long been agitating for structural changes
in all of these companies but, so far, with little success.

4 Canberra Investment Corporation (66%) Book value A$31 million. An excellent,
conservatively managed, asset oriented business, well established as a land and
housing developer in the Australian Capital Territory.

5 Capral Aluminium (37%) Book value A$65 million. There are parallels with Coats
insofar as a major relocation of the main manufacturing operations from NSW to a
new modern facility in Queensland has required a recapitalisation of the balance
sheet and has adversely affected current profitability. A short term cost for
clear long term advantage. GPG's confidence in the future is reflected in the
size of its investment in Capral.

6 Solution 6 Holdings (19%) Book value A$26 million. Solution 7! - since 30
June, the merger with MYOB Ltd has been concluded, producing a surplus of A$22
million for GPG (mainly in the form of MYOB shares of which we now hold 7.37%).

7 Green's Foods (29%) Book value A$12 million. Has experienced an impressive
revival under the direction of GPG and several other major shareholders.
Specialises in niche areas of food manufacture in an industry in Australia
otherwise dominated by multinationals.

8 ABB Grain (8%) (formerly the Australian Barley Board) Market value A$25
million. Proposes an agreed merger with Ausbulk Ltd to create a powerful new
force in the important Australian rural servicing area. GPG will be a supportive
cornerstone shareholder in the new Adelaide based group. Reminiscent of Southern
Farmers Group, a very successful investment for IEL in the 1970's and 1980's.

9 Intellect Holdings (20%) Book value A$14 million, Market value A$5 million.
Obviously, an unsatisfactory investment as the company has experienced losses
and a management upheaval and the market value of our shares is less than half
cost. GPG has since underwritten a new issue of shares in conjunction with a
capital reconstruction which appears to have a reasonable chance of restoring
value. If not, a writedown will be necessary in the second half.

10 The balance of the Australian share portfolio has a market value of A$155
million. The largest holdings are Premier Investments $50 million, Australian
Pharmaceutical Industries $23 million, AV Jennings $21 million and Reinsurance
Australia $18 million.

11 Turners & Growers (79%) Book value NZ$114 million. A Stock Exchange listing
is imminent and thereafter it is intended to 'spin off' the Enza Foods business
in the same manner as the earlier successful divestment of Turners Auctions.
This should prove beneficial to Turners & Growers' shareholders without
diminishing the strong commitment to its core operations in fruit and produce
marketing.

12 The New Zealand share portfolio largely comprises Rubicon, Tenon and Tower
with an aggregate market value of NZ$188 million. All are considered to be sound
value, but we are not budgeting more than nominal returns in the current year.

The Directors look forward to reporting good progress in all areas for the full
year to 31 December 2004.'

Ron Brierley
Chairman
25 August 2004

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

GPG (UK) Holdings plc
Mark Butcher                                             020 7484 3370
Website address:                                        www.gpgplc.com


Consolidated Profit and Loss Account

                                    6 months        6 months           Year
                                       ended           ended          ended
                                     30 June         30 June    31 December
                                        2004            2003           2003
                                   Unaudited       Unaudited        Audited
                                        £000            £000           £000

Group turnover                       478,613         281,856        552,988
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Group operating profit                13,936          45,728         68,192

Share of operating profit of joint 
 ventures and associates               3,379           4,810         24,570
                                     --------------------------------------

                                      17,315          50,538         92,762

Profit on sale of business 
 - continuing operations                   -               -         19,056
                                     --------------------------------------

Profit before interest payable        17,315          50,538        111,818

Interest payable and similar charges (19,059)        (10,883)       (23,358)
                                     --------------------------------------

(Loss)/profit before taxation         (1,744)         39,655         88,460

Taxation                              (7,071)        (14,380)       (21,113)
                                     --------------------------------------

(Loss)/profit after taxation          (8,815)         25,275         67,347

Minority interests                      (986)         (1,199)        (2,641)

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(LOSS)/PROFIT ATTRIBUTABLE TO 
 ORDINARY SHAREHOLDERS                (9,801)         24,076         64,706
---------------------------------------------------------------------------


Consolidated Balance Sheet

                                     30 June         30 June      31 December
                                        2004            2003             2003
                                   Unaudited       Unaudited          Audited
                                        £000            £000             £000

FIXED ASSETS
-----------------------------------------------------------------------------
Intangible assets                      2,716          (8,779)          (8,283)
Tangible assets                      404,876          75,049           76,524
Investments                          203,133         251,951          284,491
                                     ----------------------------------------
TOTAL FIXED ASSETS                   610,725         318,221          352,732
                                     ----------------------------------------
CURRENT ASSETS
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Debtors                              380,456         135,253           90,918
Stocks/Development work in progress  260,275          43,512           28,235
Investments                           50,294          21,347           17,426
Cash at bank                         211,293         178,091          289,371
                                     ----------------------------------------
TOTAL CURRENT ASSETS                 902,318         378,203          425,950
                                     ----------------------------------------
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
-----------------------------------------------------------------------------
Trade and other creditors           (337,397)       (235,597)        (204,864)
Convertible subordinated loan notes   (5,964)         (3,425)          (5,963)
Other borrowings                     (82,495)        (35,873)            (838)
                                     ----------------------------------------
TOTAL CURRENT LIABILITIES           (425,856)       (274,895)        (211,665)
                                     ----------------------------------------
                                     ----------------------------------------
Net current assets                   476,462         103,308          214,285
                                     ----------------------------------------
TOTAL ASSETS LESS CURRENT 
 LIABILITIES                       1,087,187         421,529          567,017
                                     ----------------------------------------
CREDITORS: AMOUNTS FALLING DUE AFTER 1 YEAR
-----------------------------------------------------------------------------
Trade and other creditors             (1,249)           (792)          (1,588)
Convertible subordinated loan notes        -          (3,425)          (5,964)
Capital notes                       (159,531)        (67,887)        (166,513)
Other borrowings                    (309,909)        (15,504)         (22,584)
                                     ----------------------------------------
TOTAL LONG-TERM CREDITORS           (470,689)        (87,608)        (196,649)
                                     ---------------------------------------- 
PROVISIONS FOR LIABILITIES AND 
 CHARGES                            (131,099)        (13,970)         (16,900)
                                     ----------------------------------------
NET ASSETS                           485,399         319,951          353,468
                                     ========================================
CAPITAL AND RESERVES
-----------------------------------------------------------------------------
Share capital                         69,254          61,630           68,137
Share premium account                  7,152          10,590            5,458
Capital redemption reserve             3,863           3,863            3,863
Profit and loss account              236,969         227,001          258,173
-----------------------------------------------------------------------------
EQUITY SHAREHOLDERS' FUNDS           317,238         303,084          335,631
-----------------------------------------------------------------------------
Minority interests (equity)          168,161          16,867           17,837
                                     ----------------------------------------
CAPITAL EMPLOYED                     485,399         319,951          353,468
                                     ========================================

Consolidated Cash Flow Statement

                                    6 months        6 months             Year
                                       ended           ended            ended
                                     30 June         30 June      31 December
                                        2004            2003             2003
                                   Unaudited       Unaudited          Audited
                                        £000            £000             £000

Net cash (outflow)/inflow from 
 operating activities                (15,111)         31,509           91,545
Dividends received from associates 
 and joint ventures                    1,897           1,915            5,558
Returns on investments and servicing 
 of finance                          (13,500)         (5,705)         (13,247)
Taxation                              (7,157)         (4,846)          (5,957)
Capital expenditure and financial 
 investment                           (7,712)        (15,984)         (44,652)
Acquisitions and disposals           (61,614)         16,779           31,924
                                      ---------------------------------------
CASH (OUTFLOW)/INFLOW BEFORE 
 MANAGEMENT OF LIQUID RESOURCES AND 
 FINANCING                          (103,197)         23,668           65,171
Management of liquid resources       121,007         (67,103)        (157,939)
Financing
Issue of ordinary shares               2,370           1,621               80
Increase in debt                      21,039          28,768           98,923
-----------------------------------------------------------------------------
INCREASE/(DECREASE) IN CASH FOR THE 
 PERIOD                               41,219         (13,046)           6,235
-----------------------------------------------------------------------------

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
Increase/(decrease) in cash for the 
 period                               41,219         (13,046)           6,235
Cash (inflow)/outflow from 
 decrease/increase in liquid 
 resources                          (121,007)         67,103          157,939
Cash inflow from increase in debt    (21,039)        (28,768)         (98,923)
                                      ---------------------------------------
Change in net funds resulting 
 from cash flows                    (100,827)         25,289           65,251
Acquisition of subsidiaries         (326,251)              -                -
Currency translation differences      (7,037)         11,299            6,869
                                      --------------------------------------- 
Movement in net funds for the 
 period                             (434,115)         36,588           72,120
Net funds as at 1 January             87,509          15,389           15,389
-----------------------------------------------------------------------------
CLOSING NET (DEBT)/FUNDS            (346,605)         51,977           87,509
-----------------------------------------------------------------------------

Non-cash transactions:
On 5 July 2004 the Company redeemed the fourth 10p tranche of the remaining
convertible subordinated loan notes through the payment of £1,035,000 in cash,
with the balance of £4,995,000 being satisfied by the issue of Ordinary Shares
in GPG.

NOTES TO THE INTERIM FINANCIAL INFORMATION
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 2003.

2. Abridged accounts (Companies Act 1985) - The information for the year ended
31 December 2003 is based on the latest published accounts which have been
delivered to the Registrar of Companies.

3. Foreign exchange movements - during the six months to 30 June 2004, GPG
recognised in operating profit £5.3 million of foreign exchange losses compared
to £14.3 million of foreign exchange gains in the six months to 30 June 2003
(£16.2 million gains in the year to 31 December 2003).

4. Coats Group Ltd ('Coats') - a former joint venture company in which the Group
held a 63.97% economic interest and a 50% voting interest became a subsidiary
undertaking on 1 April 2004 when one of the directors resigned from the board of
Coats. Coats contributed a loss of £77,000 before taxation during the six months.

5. The Group's significant associate and joint venture entities are as follows:

                                       30 June      30 June        31 December
                                          2004         2003               2003

Coats Group                                n/a        63.97%             63.97%
Nationwide Accident Repair Services      50.00%       50.00%             50.00%
Harcourt Hill Estate                     50.00%       50.00%             50.00%
Dawson International                     29.91%       29.91%             29.91%
Capral Aluminium                         36.61%       31.63%             34.26%
Green's Foods                            28.99%       25.93%             28.91%

6. On 5 July 2004, those holders of GPG (UK) Holdings plc Convertible Loan Notes
('CLNs') who elected to convert their Election Amounts were issued with
11,249,746 Ordinary shares of 10p each in the Company which, through the
'Step-up Rights' in the Articles of Association, were converted to an equivalent
number of 5p shares in GPG ('Conversion Shares'). The remaining CLN holders were
repaid Redemption Amounts of £1.0 million in cash.

7. Publication - This statement is being sent to shareholders and copies will be
available at the registered office of the Company, First Floor, Times Place, 45
Pall Mall, London SW1Y 5GP.

UNITED KINGDOM
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First Floor, Times Place, 45 Pall Mall, London SW1Y 5GP Tel: [phone] Fax:
020 7925 0700

AUSTRALIA
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c/o PKF Chartered Accountants and Business Advisers
Level 10, 1 Margaret Street, Sydney NSW 2000 Tel: [phone] Fax: [phone]

NEW ZEALAND
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c/o Computershare Investor Services Limited
Private Bag 92119, Auckland 1020, New Zealand Tel: [phone] Fax: [phone]

                        Registered in England No. 159975







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