Interim Results - Part 2

Great Universal Stores PLC
30 November 2000

Part 2

NOTES

1. Basis of preparation

 
The interim report comprises the unaudited results for the six months ended
30 September 2000 and 30 September 1999 and the audited results for the
twelve months ended 31 March 2000. The financial information for the twelve
months ended 31 March 2000 has been extracted from the Group's statutory
financial statements for that year. The interim financial statements, which
comply with the accounting policies set out in the 2000 Annual Report, are
not audited and do not constitute statutory accounts. These financial
statements have been formally reviewed by the Group's auditors,
PricewaterhouseCoopers, and the full text of their report is set out on page
26. 
 
Comparative figures for the six months ended 30 September 1999 have been
restated to reflect a reduction of £12.1m in the investment in First American
Real Estate Solutions ('FARES') and revenue reserves. This restatement was
reflected as a prior year adjustment in the Group's financial statements for
the year ended 31 March 2000 following the introduction of new US accounting
rules which impact on the timing of profit recognition on certain contracts. 
 
The results by division are presented in the new reporting structure,
separating out Reality and Argos Retail Group Financial Services, with
comparative figures restated. A significant portion of Reality's turnover
comprises sales within the Group and these are shown, together with
Experian's sales within the Group, as inter-divisional turnover. 
 
The divisional analysis of profit before taxation is now shown before central
costs; comparative figures for the six months ended 30 September 1999 have
been restated. This basis is consistent with the Group's financial statements
for the year ended 31 March 2000. 
 
2. Exceptional items 
 
Exceptional items comprise: 
                                                                              
                                                   Six months to    Year to 
                                                         30.9.00    31.3.00 
                                                              £m         £m 
Restructuring costs:                                                        
  Redundancy and other costs incurred in                                      
  connection with the combination of Argos 
  and Home Shopping operations and                                            
  the formation of Reality                                  (8.9)         - 
  Redundancy and associated costs incurred in                                 
  connection with the closure of General 
  Guarantee to new business                                (13.1)         - 
                                                                    
                                                           (22.0)         - 
VAT refunds in UK Home Shopping (including                   4.6          - 
interest of £3.3m)                                                          
Profit on sale of fixed asset investments                    4.6       11.1 
                                                           (12.8)      11.1 
Loss on sale of Highway Vehicle Management Limited         (13.3)         - 
Exceptional (charge) / credit                              (26.1)      11.1 
 
It is anticipated that income to be earned by General Guarantee will at least
match its costs of closure during the remainder of its three year wind down
period. 

There were no exceptional items in the six months ended 30 September 1999. 
 
3. Taxation

The tax charge is based on profit before amortisation of goodwill and the
estimated tax charge for the full year at a rate of 24.0% (2000: 22.8%). 
 
 
4. Basic and diluted earnings per share 
                                                                              
                                                Six months to       Year to 
                                              30.9.00    30.9.99    31.3.00 
                                                pence      pence      pence 
Basic and diluted earnings per share                                        
before exceptional items and amortisation        13.7       13.6       34.5 
of goodwill                                                    
Effect of exceptional items                      (2.3)         -        0.7 
Effect of amortisation of goodwill               (4.2)      (4.0)      (7.8) 
Basic and diluted earnings per share              7.2        9.6       27.4 
 
The calculation of basic and diluted earnings per share is based on profit
after taxation divided by the weighted average number of Ordinary shares in
issue during the period. Basic and diluted earnings per share before
exceptional items and amortisation of goodwill is disclosed to indicate the
underlying profitability of the Group. 
                                                                            
                                               Six months to        Year to 
                                              30.9.00    30.9.99    31.3.00 
                                                   £m         £m         £m 
Earnings before exceptional items and                                         
amortisation of goodwill                        136.8      136.0      347.3   
Effect of exceptional items                     (22.5)         -        7.2 
Effect of amortisation of goodwill              (42.4)     (39.5)     (79.4) 
Profit after taxation                            71.9       96.5      275.1 
 

5. Foreign currency

The principal exchange rates used were as follows:  
                                                  
                               Average                  Closing           
               6 months  6 months                                     
                    to        to    Year to
               30.9.00   30.9.99    31.3.00   30.9.00   30.9.99    31.3.00   
US dollar        1.516     1.607      1.609     1.473     1.650      1.593 
South African   10.472     9.834      9.953    10.675     9.890     10.417 
rand                                                                        
Euro             1.644     1.522      1.566     1.670     1.540      1.665 
 
Assets and liabilities of overseas undertakings are translated into sterling
at the rates of exchange ruling at the balance sheet date and the results are
translated into sterling at average rates of exchange. 
 
6. Dividend

The interim dividend will be paid on 1 February 2001 to shareholders on the
Register at the close of business on 8 January 2001. 
 
 
                         INDEPENDENT REVIEW REPORT TO                         
                      THE GREAT UNIVERSAL STORES P.L.C.                       

 
Introduction
 
We have been instructed by the Company to review the financial information
set out on pages 18 to 25 and we have read the other information contained in
the interim report for any apparent misstatements or material inconsistencies
with the financial information. 
 

Directors' responsibilities
 
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved, by the directors. The Listing
Rules of the Financial Services Authority require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where
any changes, and the reasons for them, are disclosed. 
 

Review work performed

We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board. A review consists principally
of making enquiries of management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed
in accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on
the financial information. 
 

Review conclusion
 
On the basis of our review we are not aware of any material modifications
that should be made to the financial information as presented for the six
months ended 30 September 2000. 
 
 
 
 
 

PricewaterhouseCoopers 
Chartered Accountants 
Manchester 
 
30 November 2000 
 
 
 
Announcement also available on GUS website: www.gusplc.co.uk