Demerger from GUS

Press releases

GUS plc preliminary results for year ended 31 March 2006 under IFRS

24 May 2006

Further strategic progress

• Demerged remaining stake in Burberry
  
  
• Raised £350m from disposal of Lewis and Wehkamp
  
  
• £1.2bn invested in ARG and Experian on capital expenditure and acquisitions
  
  
• Demerger of ARG and Experian planned for October 2006

Financial highlights

• Continuing operations
  - Sales up 9% to £7.3bn (2005: £6.7bn)
  - EBIT¹ up 7% to £745m (2005: £695m)
  - Record profit at Experian
  - ARG outperforming in difficult UK market
  - Profit before tax £649m (2005: £648m)
  
  
• Benchmark PBT² of £829m (2005: £910m), reflecting impact of disposals
  
  
• Benchmark earnings per share³ 62.3p (2005: 62.0p)
  
  
• Basic earnings per share 60.2p (2005: 59.6p)
  
  
• Diluted earnings per share 59.2p (2005: 58.8p)
  
  
• Full year dividend of 31.5p per new consolidated GUS share (2005: 29.5p per old share)

Sir Victor Blank, Chairman of GUS, commented:

“This year has been one of significant strategic progress for GUS with Burberry, Lewis and Wehkamp all leaving the Group, and ARG and Experian scheduled for demerger in October. GUS has a long history of creating value for its shareholders and we are confident that this will continue as they will now have the choice to invest directly in three extremely well-positioned businesses – ARG, Burberry and Experian.”

John Peace, Chief Executive of GUS, commented:

“Experian generated record profits in 2006, reflecting the strength of its portfolio by product, by region and by market. ARG continued to outperform its markets, while investing in key initiatives. Although we remain cautious about the UK retail market in the short term, we are confident that both ARG and Experian have clear strategies for growth in the medium and longer term.”

1. Earnings before interest and taxation (EBIT) is defined as profit before interest, amortisation of acquisition intangibles, store impairment charges, exceptional items (i.e. gains or losses on disposal, demerger or closure of businesses and goodwill impairment charges), financing fair value remeasurements and taxation. It also includes the Group's share of associates' pre-tax profit.
   
   
2. Benchmark PBT is defined as profit before amortisation of acquisition intangibles, store impairment charges, exceptional items (i.e. gains or losses on disposal, demerger or closure of businesses and goodwill impairment charges), financing fair value remeasurements and taxation. It includes the Group's share of associates' pre-tax profit and the profits or losses of discontinued operations up to the date of disposal or closure.
   
   
3. Benchmark EPS takes Benchmark PBT less taxation (attributable to Benchmark PBT) and minority interests, divided by the weighted average number of shares in issue (excluding own shares held in Treasury and in the ESOP Trust).

Enquiries

GUS' First Quarter Trading Update will be on 12 July 2006. Its AGM will be held on 19 July 2006.

This announcement is not an offer of securities for sale in any jurisdiction.

Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results referred to in these forward looking statements.

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