Guinness Peat Group

2006 Financial HighlightsProfit after tax down from £96m to £36m.GPGNo major contribution from sale of assets.Increase in unrealised surplus, before tax, on listed investments at 31 December2006 of £85m to £192m.Simplified Balance Sheet shows Shareholders’ Funds of £876m. (including this£192m, Coats at cost of £235m but after £37m contingent tax liability)Unrealised surplus on listed subsidiaries and associates now stands at £69m.(Mostly Tower Australia, Nationwide and CIC) This is up from £16m in 2005 andis not included in the increase in Shareholders’ Funds.Total increase in unrealised gains (before tax) during the 2006 year wastherefore £138m.2