7881
Trinity Mirror PLC
02 March 2006

                              Trinity Mirror plc

                            2005 Preliminary Results
                      for 52 weeks ended 1st January 2006

                                                                    2 March 2006

Trinity Mirror plc announces the Group's Preliminary Results for the 52 weeks
ended 1 January 2006.

Financial highlights

                    Like-for-like*                         Statutory

                   2005        2004          %       2005       2004          %
               52 weeks    52 weeks     Change   52 weeks   53 weeks     Change
                     £m          £m                    £m         £m

Revenue         1,112.8     1,127.5      (1.3)%   1,122.0    1,141.7      (1.7)%
Operating
profit            250.2       246.1       1.7%      245.4      242.8       1.1%
Profit before
tax               220.9       208.5       5.9%      209.5      207.1       1.2%

Earnings per
share              52.6p       49.3p      6.7%       50.3p      49.2p      2.2%
Dividend per
share                                                21.9p      20.2p      8.4%

Net debt                                            492.5   454.9(1)



Operational highlights

-  'Stabilise Revitalise Grow' continues to deliver positive results
-  Improved performance despite challenging advertising revenue
   environment. Operating profit* and profit before tax* up 1.7% and 5.9%
   respectively
-  Incremental cost savings of £12 million. Exceeded annualised net cost
   savings target of £35 million by £5 million. Further targeted net savings of 
   £15 million in 2006
-  Continued improvement in Group margin* from 21.8% to 22.5%, and
   margin growth for both Regionals and Nationals division despite advertising
   revenue declines
-  Completed four on-line acquisitions which complement and extend our
   core recruitment and property advertising presence
-  £52.7 million returned to shareholders through share buy-back programme
-  Strong cash flows resulting in net debt increasing by only £37.6
   million despite share buy-back and £87.2 million acquisitions expenditure
-  Annual dividend (interim paid and final proposed) increased by 8.4%
   to 21.9 pence per share


---------------------
(1) After adoption of IAS 39 on 3 January 2005

* Before acquisitions, non-recurring items, IAS 39 and for 2004 excludes the
additional week's trading. See reconciliation between statutory and like-for-
like results in note 20.










Within the following Chairman's Statement, Chief Executive's Statement and
Review of Operations, all figures are presented on a like-for-like basis (which
is excluding the impact of acquisitions, non-recurring items, IAS 39 and the
extra week's trading in 2004), unless otherwise stated, and reflect the impact
of implementing International Financial Reporting Standards (IFRS) for both 2005
and 2004. A reconciliation between the like-for-like and statutory numbers is
provided in Note 20. A full reconciliation of the performance from IFRS to UK
GAAP applicable at 2 January 2005 is shown in Note 21.

Chairman's Statement

Trinity Mirror delivered a positive performance in 2005. Operating profit*
increased by 1.7% to £250.2 million and profit before tax* improved by 5.9% to
£220.9 million. Although on a like-for-like basis revenue declined by 1.3%, we
again improved Group operating margin*, from 21.8% to 22.5%.

Seen in the context of our marketplace, these are good results. The year started
with an encouraging advertising market but, as the economy slowed, reducing
consumer confidence, 2005 became increasingly challenging, particularly for our
industry. The weakening economy impacted most advertising categories, with
especially difficult conditions for display and recruitment advertising. Further
volatility was created by the General Election and the consequential impact on
public sector advertising.

Against this background, Trinity Mirror continues to reap the benefit of our
'Stabilise Revitalise Grow' strategy. The market conditions resulted in
management taking immediate and decisive action from the first quarter to
mitigate the effects of the economic downturn and to manage the business on the
assumption that trading would not improve and might indeed worsen. That action
proved timely and our full-year results include the benefit of exceeding our £35
million cost savings target by £5 million. Further net cost savings of at least
£15 million have been targeted for 2006.

At the same time, we actively pursued our digital strategy. We acquired four
complementary on-line advertising businesses and a small traditional recruitment
consultancy business for £92.7 million, including deferred consideration of £5.5
million. Despite this cash outflow, and the return of £52.7 million to
shareholders under our share buy-back programme, the strong cash flows from our
businesses ensured that our net debt for the year rose by merely £37.6 million
to £492.5 million.

The pressure on earnings continues as there is as yet no sign of improvement in
our traditional advertising markets. But the Board remains confident with the
strong cash flow characteristics of our businesses and in the light of a good
performance in 2005 proposes to increase the final dividend by 8.4% to 15.5p per
share. This means that our dividend for the year increased to 21.9p per share
from 20.2p last year. However, in order to maintain financial headroom for
further investment in our businesses and any prospective acquisitions identified
in pursuit of our strategy, the Board will continue the suspension of our £250
million share buy-back programme.

Our industry remains challenged by changing patterns of behaviour, but we
believe we have the right strategy to develop opportunities for growth both
through acquisition and organically within our existing businesses. The Board is
confident that the talent and resources of the Group will enable us to deliver a
satisfactory outcome for 2006.

The strength of our businesses lies in the talent, the commitment and the
creativity of our people at all levels, both in management, in operations and in
support functions. They have performed wonderfully well in difficult conditions
throughout 2005 and I know that they remain very committed to the success of
this Group. On behalf of the Board, and our shareholders, I would like to thank
them for their dedication and enthusiasm.

Against this background, and on a personal note, it is with mixed feelings that
I will step down from the Board of Trinity Mirror at the Annual General Meeting.
My time with the company has been hugely enjoyable, not least because of the
tremendous spirit and talent of the people I have had the pleasure to work with.
However, one of the most important jobs of the Chairman is to encourage
succession planning, including for their own position, and I believe that now is
the right time to go. There is a solid foundation for the future management of
the business, and the Group is well placed to meet the challenges that lie
ahead.

So, while I will be very sad to leave my colleagues, I will do so with immense
confidence in their ability to deliver the very best for the Group and its
shareholders.


---------------------
* Before acquisitions, non-recurring items, IAS 39 and for 2004 excludes the
additional week's trading. See reconciliation between statutory and like-for-
like results in note 20.







Chief Executive's Statement

Our three-phase performance-based strategy 'Stabilise Revitalise Grow' forms the
cornerstone of our success in achieving strong results in the face of the UK's
advertising slowdown. It will continue to provide the foundation for future
growth and stability across the Group as we create a sustainable and
value-enhancing media business.

The core portfolio performed well during 2005 despite the difficult advertising
environment. Our Regionals division improved both operating profit* and margin*,
despite extremely difficult revenue conditions which saw a sharp decline in
recruitment advertising, our most profitable advertising category. Despite the
adverse revenue environment we continued to invest in the portfolio,
revitalising and relaunching existing titles to ensure they remain relevant,
compelling propositions for both readers and advertisers.

Our commitment to excellence in journalism and marketing saw us conduct the UK's
biggest ever regional press survey during 2005. The findings will help shape
further product development across the Regionals portfolio and ensure our
products deliver to the needs of our readers and advertisers during 2006 and
beyond.

While circulation volumes continue to be challenging the division's ABC
performance remains in line with or ahead of the market.

Our National titles were also impacted by the advertising downturn. However,
management mitigated the effects of reduced revenues through cost initiatives,
and the division saw circulation revenue* growth, profit* growth and margin*
progression.

In Scotland we continued the development of The One Directory and doubled the
number of editions from two to four during the year. Scotcareers, launched in
2004, moved to break-even and has now become the number two on-line recruitment
site in Scotland.

Our Sports division delivered improved revenues* and profit* despite the
advertising slowdown. It is well advanced in plans to maintain the Racing Post's
leadership in the racing and sports betting markets.

We have continued our investment programme in colour presses, in July announcing
an £83 million investment over three years in new printing presses. This
investment will provide our Nationals print sites with full colour capability by
the start of 2008. Coupled with previous investment this provides full colour
across the Group's manufacturing network with the exception of Liverpool and
Newcastle. We do not envisage repressing these sites in the medium term. We are
also pleased with the progress made on the joint press investment with GMG
Regionals at our Oldham press site. Production using the new equipment began in
January 2006.

During 2005, in addition to strengthening our core portfolio, we have focused on
driving real growth from new initiatives, deepening our presence in our core
markets and geographies, both in print and on-line. Further segmentation of our
markets through product layering - targeting different products at different
consumer and advertiser segments - is allowing us to pursue new opportunities
via launch and acquisition, while ensuring our existing market-leading positions
are maintained in a changing media landscape.

Any decision to launch or acquire is carefully considered against a range of
factors. Consideration is given to the importance of the sector, our existing
brand or market strength and expertise, the competitive nature of the market,
the time needed to build a strong position, the scarcity of assets and our
return on investment.

Strong media businesses build a track record of innovation as a means of driving
growth, resulting in successful new products that build new revenues and
profits. During 2005 we launched a total of 36 new products and services,
including weekly paid-for and free newspapers, on-line brands, directories and
shows. These investments continue to be funded from our existing resources.

In our Regional business continuing to renew and grow our core portfolio through
launch is a key element of the Regionals business strategy. 2005 saw the launch
of five weekly newspapers, both paid-for and free, achieving our aims of
strengthening our position within existing marketplaces and expanding our
publishing footprint. These are all profitable in their first year. 2006 will
see the launch of two new Metros in Liverpool and Cardiff, building on the
success of the Group's three existing Metro titles.

2005 also saw continuing development of our digital activities, both via launch
and acquisition. Our initial launch focus has been in the key classified
category of recruitment advertising and during the year we launched a total of
nine local recruitment sites. Our aim is to win strong, profitable positions
on-line that complement our print brands. Revenues are being driven from
up-selling print to local on-line sites. This complements our national position
with Fish4. The launches also enable us to capture local on-line only revenues.
We also launched ten local community sites focusing on low-end classified "for
sale" and "wanted" advertising, a further example of our market-layering
approach. Initially revenues are expected to be minimal for these digital
launches however more importantly they establish a foothold in new markets and
revenues will build over time. Progress continues in 2006 with the launch of ten
local property sites and five motor sites.

During the year we successfully completed the acquisition of four market-leading
digital businesses: the hotgroup, GAAPweb and Secsinthecity in the recruitment
classified sector and Smartnewhomes in the property sector. Each acquisition
adds scale in key markets and is complementary to our existing print portfolio,
enabling us to expand nationally beyond our existing regional footprint. They
also allow us to build upon our print strengths, as is the case with
Smartnewhomes, or provide access to new market segments where we are less strong
in print, as is the case with financial jobs site GAAPweb.

Significant progress has been made with the integration of these assets which
now benefit from the scale and reach the Group provides. We have strengthened
their management structures, including the appointment of a Head of Digital
Recruitment. Smartnewhomes is now fully integrated into the activities of our
Regionals division.

Overall, across the businesses, despite the difficult trading conditions, the
year has been characterised by strong development of the portfolio via both
launch and acquisition, coupled with a continued tight focus on cost management.
Our strategy remains on course and we believe that our actions during 2005 have
resulted in a stronger business, which is well equipped to meet the challenges
of the future.

Board changes

In January 2006 Sir Victor Blank, the Chairman of the Group, announced he will
be retiring from the Board at the Company's Annual General Meeting in May 2006.

Sir Victor has made a significant contribution over a number of years during
which he oversaw the creation of the UK's largest newspaper group when Mirror
Group merged with Trinity in 1999. The Board would like to thank him for his
enthusiasm and dedication and for the support he has given the management team
to help develop our business.

The process to recruit a new Chairman is well advanced.

Outlook

2006 will see the continuation of the 'Stabilise Revitalise Grow' strategy with
the aim to drive further improvements through continued investment and driving
efficiencies. The advertising market is expected to remain difficult, and we
also anticipate significant cost pressure from newsprint price increases of 7%,
increasing energy costs, increased labour costs and other inflationary cost
increases. However, we have already taken steps to partially mitigate the impact
of these difficult trading conditions with the targeted cost savings of £15
million for 2006. Within the context of a challenging advertising environment
the Board expects to deliver a satisfactory performance.


---------------------
* Before acquisitions, non-recurring items, IAS 39 and for 2004 excludes the
additional week's trading.







Review of Operations


Regionals division

The Regionals division publishes some 240 local and regional newspapers across
the UK.

In 2005 the division achieved a robust performance in the face of challenging
market conditions, which impacted the key advertising revenue stream for most of
the year.

Despite the difficult advertising conditions, the division maintained its focus
on improving profitability, reducing costs and improving margin. The difficult
trading environment did not inhibit management from investing to grow the
business for the future.

The division's focus on growth in all areas of the business, coupled with strong
management action on cost, has helped mitigate the impact of declines in
advertising revenue on operating profit and margin.

The revenue* and operating profit* of the Group's Regionals division are as
follows:
                                        2005                  2004
                               like-for-like*        like-for-like*          %
                                          £m                    £m      Change
Revenue
- Regional newspaper titles            509.5                 517.7        (1.6)%
- Metros                                13.3                  11.9        11.8%
- Digital media activities               7.6                   6.1        24.6%

Total revenue                          530.4                 535.7        (1.0)%

Operating Profit
- Regional newspaper titles            145.8                 146.2        (0.3)%
- Metros                                 1.9                   1.3        46.2%
- Digital media activities               1.8                   0.7       157.1%

Total operating profit                 149.5                 148.2         0.9%

Operating Margin                        28.2%                 27.7%        0.5%

The Regionals division improved operating profit* by £1.3 million (0.9%),
despite revenue* declines of £5.3 million (1.0%). On an actual basis, including
acquisitions (before amortisation of intangibles of £3.3 million) and the extra
week's trading in 2004, but before non-recurring items, revenues for the
Regionals division decreased by £0.5 million (0.1%) from £540.1 million to
£539.6 million and operating profit decreased by £0.3 million (0.2%) from £151.0
million to £150.7 million.

The operating profit* decrease experienced by the core Regional newspaper titles
was offset by continuing improvements from Metros and digital media activities.
The division's three Metros achieved a £0.6 million (46.2%) improvement in
operating profit* to £1.9 million. Having shown a profit for the first time in
2004, the existing digital business - which includes the partnership in Fish4 -
went from strength to strength, delivering further strong profit* growth of
157.1% from £0.7 million to £1.8 million.

The acquisitions of the hotgroup, GAAPweb, Smartnewhomes and Secsinthecity
rapidly added scale and provided access to new on-line revenues in core
classified categories. The hotgroup provides Trinity Mirror for the first time
with a national footprint in the recruitment market, allowing entry into areas
where we do not publish newspapers. GAAPweb, a specialist high-end financial and
accountancy jobs site, provides access to a new jobs market not well-served by
our print portfolio. Secsinthecity, which serves the secretarial and
administrative jobs market in the South East, will benefit from our scale as we
build the brand beyond its current market penetration.

The four acquisitions completed during the year contributed incremental digital
revenues of £3.5 million and other revenues of £5.7 million in 2005. Before
amortisation of intangible assets and non-recurring costs the acquisitions
contributed £1.2 million operating profit in 2005. Amortisation relating to the
acquisitions was £3.3 million in the year and is expected to be £9.7 million in
2006.

Due to decisive action on costs during the year, the impact of the advertising
downturn was contained, with operating margin* improving by 0.5% to 28.2%. On an
actual basis before non-recurring items, the operating margin fell by 0.7%
reflecting the dilutive impact of acquisitions due to the amortisation of
intangibles and the positive impact on margins in 2004 from the additional
week's trading.

Advertising revenue* for the Regionals division fell by 2.7% from £415.0 million
to £403.7 million reflecting an increase of 1.5% in the first half offset by a
decline of 7.0% in the second half. By category Display was down by 0.1%,
Recruitment was down by 14.3%, Property was up by 10.4%, Motors was down by 5.7%
and other classified categories were up by 4.6%. On an actual basis including
acquisitions and the additional week's trading in 2004, advertising revenue
decreased by 2.5% from £417.8 million to £407.2 million.

Metros achieved strong advertising* growth of £1.4 million (11.9%), driven by a
16.9% increase in Display, partially offset by an 8.1% decrease in Recruitment.

Digital media activities continued their strong growth trajectory with
advertising revenue* increasing by £1.5 million (31.3%) across all categories
other than property. The four acquisitions completed during the year achieved
advertising revenues of £3.5 million since completion during 2005. On an
annualised basis the acquisitions achieved advertising revenues of £13.3 million
for 2005.

Circulation revenue* increased by £3.4 million (4.3%). On an actual basis
including the additional week's trading in 2004, circulation revenues increased
by £2.1 million (2.6%) from £80.7 million to £82.8 million. The division
continued to drive circulation revenue increases while seeking to improve
circulation volume performance. Increases in circulation revenues were achieved
through the ongoing policy to sell full-price, value-for-money newspapers and to
increase cover prices on a 'little and often' basis.

During the year, the division experienced circulation volume declines of 5.0%
for Evening titles, 2.0% for Morning titles, 4.7% for Weekly titles and 6.3% for
Sunday titles. Improving circulation performance remains a key area of focus for
management.

Other revenue* increased by £2.6 million (6.3%) from £41.3 million to £43.9
million as a result of a growth in contract print, sports publications and niche
products.

Looking ahead, the focus for the Regionals will be on driving improvements in
performance while maintaining tight control of costs. This year will also see
further progress in developing multi-platform publishing as the division
maximises the benefit of recent acquisitions and continues its programme of
organic digital development. In addition, 2006 will see the launch of new Metro
titles in Liverpool and Cardiff, strengthening our position in these markets and
building on the success of the Metros presently published in Glasgow, Newcastle
and Birmingham.

Nationals division

The Nationals division publishes three UK National titles (the Daily Mirror, the
Sunday Mirror and The People), two Scottish Nationals (the Daily Record and the
Sunday Mail) and The One Directory in Scotland.

The Group's National newspaper titles continue to operate in an extremely
competitive marketplace, characterised by cover price discounting by competitors
and high levels of marketing expenditure. As well as these challenges 2005 saw
additional pressure due to the downturn in advertising markets.

Despite these challenges the division delivered a strong performance. Although
advertising revenue fell significantly due to substantial declines in total
volumes across the market, cost initiatives by management enabled operating
profits* to increase.


                                           2005            2004
                                         actual   like-for-like*             %
                                             £m              £m         Change
Revenue
- UK Nationals                            388.3           400.1           (2.9)%
- Scottish Nationals                      110.8           110.7            0.1%

Total revenue                             499.1           510.8           (2.3)%

Operating profit pre non-recurring
items
- UK Nationals                             67.9            66.3            2.4%
- Scottish Nationals                       23.3            23.5           (0.9)%

Total operating profit pre                 91.2            89.8            1.6%
non-recurring items

Margin                                     18.3%           17.6%           0.7%

Despite revenue* declines of 2.3% from £510.8 million to £499.1 million,
operating profits* for the Nationals division increased by £1.4 million (1.6%)
from £89.8 million to £91.2 million.

Revenue* for the UK Nationals declined by 2.9%, however the tight management of
costs enabled operating profits* to be increased by 2.4% from £66.3 million to
£67.9 million. Operating margin* for the UK Nationals increased by 0.9% from
16.6% to 17.5%. On an actual basis including the additional week's trading in
2004, revenue declined by 4.6% from £407.2 million to £388.3 million and
operating profit fell by 3.7% from £70.5 million to £67.9 million.

For the Scottish Nationals revenue* improved by 0.1% while operating profit*
declined by 0.9% from £23.5 million to £23.3 million. Operating margin* for the
Scottish Nationals fell 0.2% from 21.2% to 21.0%, reflecting the investment in
The One Directory. Excluding The One Directory operating margin* increased by
0.6% from 21.3% to 21.9%. The impact of declining advertising revenues was
partially mitigated by targeted cover price increases, which led to strong
circulation revenue growth, and the development of Scotcareers - the online
recruitment site which broke even in its first full year of trading. On an
actual basis including the additional week's trading in 2004, revenue declined
by 1.5% from £112.5 million to £110.8 million and operating profit fell by 5.7%
from £24.7 million to £23.3 million.

The Nationals division achieved circulation revenue* growth of 0.9% despite
declining volumes in a very competitive marketplace. This reflects the benefit
of cover price increases partially offset by declining volumes.

Circulation revenues* for the UK Nationals increased by 0.1% from £219.2 million
to £219.5 million reflecting the annualised benefit of the Daily Mirror cover
price increases in 2004 and cover price increases for both Sunday titles in
January 2005.

Editorial investment to create a more appealing product coupled with investment
in product availability enabled the Daily Mirror to reduce its rate of
circulation decline from 7.7% in the first half year to 3.4% in the second. The
annual decline in circulation volumes was 5.5% with the six-monthly market share
(excluding sampling) falling by 0.2% from 19.5% in December 2004 to 19.3% in
December 2005.

In an extremely challenging market, heavily influenced by our competitors'
substantial expenditure on very short-term promotional activities, the Sunday
Mirror was able to contain its circulation decline to 4.5%, which compares to a
market average decline (excluding sampling) of 4.0%. The paper's six-monthly
market share of sale to December (excluding sampling) dropped by 0.3% to 15.6%.

The year-on-year circulation decline of The People improved from 8.6% in 2004 to
7.1% in 2005. However, the substantial short-term marketing spend in the Sunday
market saw its six-monthly average market share to December (excluding sampling)
fall by 0.3% to 9.5%.

Throughout the year the management team focused on improving circulation volume
performance without damaging profitability. Unlike many competitor titles, the
Group's National titles did not chase short-term circulation increases through
price-cutting and unsustainable levels of marketing spend.

In Scotland, circulation revenue* increased by 3.8% from £55.0 million to £57.1
million. The increase in circulation revenues reflects the benefit of increased
cover prices partially offset by reduced circulation volumes. On an actual basis
including the additional week's trading in 2004, circulation revenue increased
by 2.1% from £55.9 million to £57.1 million.

The Scottish National newspaper market continues to be challenging with cover
price discounting and substantial spend investment by competitor UK tabloid
newspapers. These challenging market conditions contributed to the Daily Record
and Sunday Mail average circulation volume (Scottish sales only) declining over
the 12-month period by 5.2% (4.3% for 2004) and 5.8% (5.1% for 2004)
respectively. Whilst the underlying performance of the Daily Record has improved
year-on-year, the impact of cover price discounting by the competition has
driven the weaker circulation performance. The Daily Record six-monthly tabloid
market share to December fell by 2.0% to 37.1%, and that of the Sunday Mail fell
1.0% to 34.8%.

In a challenging marketplace advertising revenues* for the Nationals division
fell by 9.2% from £194.0 million to £176.2 million.

Advertising revenues* for the UK Nationals fell by 11.4% from £144.2 million to
£127.7 million. Following a first quarter decline of only 0.5% all advertising
markets slowed significantly with the second quarter declining by 13.8% and the
second half by 16.1%. On an actual basis including the additional week's trading
in 2004, advertising revenues for the UK Nationals declined by 13.1%.

The market share of advertising volume across 2005 declined marginally for the
Daily Mirror, down 0.3% to 19.5%, and for the People, down 0.1% to 9.0%, but
increased marginally for the Sunday Mirror, up 0.1% to 13.6%. While yields came
under pressure during the year given the lack of supply in the marketplace,
management did not materially cut yield to drive volumes and this is reflected
in the fall in volume market share during the year.

Advertising revenues* for the Scottish Nationals fell by 2.6% from £49.8 million
to £48.5 million. Following an excellent start to the year, all markets slowed
with declines of 4.9% in the second half compared to declines of only 0.4% in
the first half. Retail activity fell away throughout the year with National
clients responding to poor economic activity by cutting marketing expenditure.
Classified markets held up well against the UK average with new activities and
product improvements supporting client spend.

The overall performance was supported by our investment in Scotcareers and The
One Directory. Scotcareers generated £0.5 million of additional revenue in the
year from online recruitment activity and The One Directory increased revenue*
from £1.0 million to £1.7 million from four directories in 2005 compared to two
in 2004.

Other revenue* increased by £3.7 million (8.7%) from £42.6 million to £46.3
million. This has been driven by an increase for the UK Nationals of £4.4
million (12.0%) offset by a decline for the Scottish Nationals of £0.7 million
(11.9%). The UK Nationals growth has arisen from an increase in contract
printing, telephone and sponsorship revenues, and digital activities.

Significant progress was made in digital activities in 2005. The division
appointed a new Head of Digital in early 2005, resulting in a revitalised
strategy for the on-line propositions of all five UK and Scottish titles. The
number of unique users across the sites increased significantly during the year.
The business delivered a profit for the first time, with improved growth
prospects for 2006.

In 2006 the Nationals division will continue to invest appropriately in our core
titles to drive circulation and advertising revenues, while generating new and
incremental digital revenues. Alongside this, it will continue to drive cost
efficiencies to provide the headroom for investment and to improve
profitability.


---------------------
* Before acquisitions, non-recurring items, IAS 39 and for 2004 excludes the
additional week's trading.



Sports division

The Sports division delivered a good performance in 2005 despite a challenging
advertising revenue environment in the second half of the year. Revenues*
increased by 5.2% from £48.1 million to £50.6 million and operating profits*
increased marginally by 0.6% from £17.3 million to £17.4 million. The minimal
increase in operating profits* was driven by the increase in the price of
newsprint and increased investment during the year. On an actual basis including
the additional week's trading in 2004, revenues increased by 3.5% from £48.9
million to £50.6 million and operating profits fell by 3.3% from £18.0 million
to £17.4 million.

The publication of the Racing Post every Sunday excluding Christmas day (2004:
49 issues) and record sales during the Cheltenham and Aintree Festivals,
combined with cover price increases, resulted in circulation revenue* growth of
6.5% from £30.6 million to £32.6 million. On an actual basis including the
additional week's trading in 2004, circulation revenues grew by 4.5% to £32.6
million.

Advertising revenues* grew by 0.7% from £14.2 million to £14.3 million. This
marginal increase was achieved despite consolidation within the bookmaking and
gaming industries and a reduction in marketing budgets in the second half of the
year. On an actual basis including the additional week's trading in 2004,
advertising revenue fell by 0.7% to £14.3 million.

Online activities continued to increase operating profit* as a result of
increased online revenue generation including advertising, content payment and
affiliate sales.

Other revenues* increased by £0.4 million (12.1%) from £3.3 million to £3.7
million. The increase was achieved through the joint venture with Racing UK and
growth in betting shop display revenue.

Magazines and Exhibitions division

The Magazines and Exhibitions division publishes a number of specialist titles
and operates both consumer and trade shows. The portfolio includes Inside
Housing, the leading magazine for the social housing sector, and one of the UK's
largest consumer exhibitions, the National Boat, Caravan and Outdoor Show.

Revenue* for the division increased by 3.2% from £31.7 million to £32.7 million,
with advertising revenue* declining by £0.7 million (4.8%), circulation revenue*
flat at £4.4 million and other revenues* (primarily exhibition revenue) growing
by £1.7 million (13.5%). The growth in exhibition revenues reflects the benefit
of increased stand sales at existing shows and the launch of the new London
Caravan and Outdoor Show during the year. On an actual basis including the
additional week's trading in 2004, revenue increased by 2.8% from £31.8 million
to £32.7 million.

The challenging revenue environment coupled with investment in new shows and
product launches contributed to operating profits falling by 4.0% from £7.5
million to £7.2 million.

Central costs

During the year central costs decreased by £0.3 million from £16.2 million to
£15.9 million.


---------------------
* Before acquisitions, non-recurring items, IAS 39 and for 2004 excludes the
additional week's trading.



Financial Summary

The Group has prepared its consolidated annual financial statements in
accordance with IFRS adopted for use in the European Union. The adoption of IFRS
and the consequent adoption of IAS 39 potentially creates significant volatility
in both the income statement and reported debt levels. To provide clarity moving
forward, all adjustments arising from IAS 39 will be identified and underlying
debt levels excluding the impact of IAS 39 will continue to be disclosed. Net
debt excluding the impact of IAS 39, which reflects the underlying position, is
shown in note 22. The key differences between the 2005 reported results prepared
in accordance with IFRS and those that would have been reported under United
Kingdom Generally Accepted Accounting Practice applicable at 2 January 2005 are
explained in Note 21.

Group revenues fell by 1.7% to £1,122.0 million (2004: £1,141.7 million). On a
like-for-like* basis, Group revenues fell by £14.7 million (1.3%) from £1,127.5
million to £1,112.8 million.

Group operating profit increased by £2.6 million (1.1%) from £242.8 million to
£245.4 million. On a like-for-like* basis Group operating profit increased by
1.7% from £246.1 million to £250.2 million.

The 2005 results incorporate the benefits of £12.0 million incremental net cost
savings, the tight management of costs and a reduced IAS 19 operating profit
current service pension charge of £4.0 million. Further net incremental cost
savings of at least £15.0 million are targeted for 2006. The IAS 19 operating
profit current service pension charge for 2006 is expected to be £30.4 million,
representing an increase of £1.8 million.

The Group's share of profits from associates was £0.8 million (2004: £0.8
million) and reflects the Group's share of profits in The Press Association
(PA), net of taxation payable thereon. Included within interest receivable is
£nil million (2004: £0.1 million) of the Group's share of interest receivable in
PA. During the year dividends of £0.6 million (2004: £3.2 million) were received
from PA.

Finance costs, excluding the impact of IAS 19 and IAS 39, fell by £4.3 million
from £35.3 million to £31.0 million. Excluding the additional week's interest
charge in 2004, net interest payable fell by £3.7 million from £34.7 million to
£31.0 million. In a largely stable interest rate environment during 2005, this
reflects the benefit of lower average debt levels. Excluding the IAS 19 finance
credit of £1.7 million (2004: £2.9 million charge) and the impact of IAS 39,
interest is covered 8.0 times by operating profit before non-recurring items, an
improvement from 7.2 times in 2004. The IAS 39 impact in 2005 was a charge of
£6.6 million (2004: £nil million). This reflects the fair value, exchange rate
and amortisation adjustments on borrowings and associated financial instruments
accounted for under IAS 39. For 2006 a net IAS 19 finance credit of £9.9 million
is expected.

Non-recurring items before tax of £2.7 million (2004: £9.7 million) were
incurred during the year. Non-recurring items include restructuring severance
costs in 2005 of £7.9 million incurred in delivery of the £15 million targeted
cost reduction measures for 2006, severance costs of £1.0 million arising on the
acquisition of the hotgroup plc, the disposal of surplus land and buildings
realising a profit of £3.5 million and the disposal of the shareholding in
Scottish Radio Holdings realising a profit of £2.7 million. Further details are
provided in note 4 to the summary financial information attached to this
preliminary results statement. A continuing focus on driving through cost
savings may result in additional non-recurring items in 2006, but will be
supported by incremental cost benefits. The cash outflow in relation to the
restructuring costs will arise in 2006 together with further estimated costs of
£4.0 million.

Excluding amortisation of intangibles and the impact of IAS 39, profit before
tax and non-recurring items increased by £5.3 million (2.4%) from £216.8 million
to £222.1 million. On a like-for-like* basis profit before tax increased by
£12.4 million (5.9%) from £208.5 million to £220.9 million.

The tax charge for 2005 of £62.6 million represents 29.9% (2004: 29.9%) of
profit before tax.

Earnings per share increased by 2.2% from 49.2 pence to 50.3 pence. Underlying
earnings per share, before non-recurring items, were 50.5 pence per share (2004:
51.2 pence per share) a decrease of 1.4%. On a like-for-like basis* underlying
earnings per share increased by 6.7% from 49.3 pence per share to 52.6 pence per
share.

Subject to the approval of the shareholders at the Annual General Meeting, the
directors propose a final dividend of 15.5 pence per share to be paid on 9 June
2006 to shareholders on the register at 5 May 2006. This increase will bring the
total dividend for the year to 21.9 pence per share, an increase of 8.4%. The
dividend is covered 2.3 times by earnings before non-recurring items and will be
fully funded from operating cash flow.

Acquisitions

During the 52 weeks ended 1 January 2006, four acquisitions were completed for a
total expenditure of £92.7million, including net borrowings of £5.3 million,
fees of £3.1 million and deferred consideration of £5.5 million. The acquired
businesses achieved revenue of £9.2 million and operating profit of £1.2 million
before amortisation of intangibles and non-recurring items. Further details are
provided in note 16 to the summary financial information attached to this
preliminary results statement.

Share buy-back

As part of a three-year share buy-back programme which commenced in March 2005,
the Group acquired 8.2 million shares for a total consideration of £52.7
million. In consideration of the cash expended on acquiring shares and
expenditure on acquisitions, the Company suspended the share buy-back programme
in October 2005 and no further buy back of shares is planned.

IAS 19

During the year the IAS 19 retirement benefit obligation has decreased from
£321.9 million to £305.6 million (before the provision of deferred tax). This
reflects an increase in asset values partially offset by an increase in
liabilities. The increase in liabilities is driven by a fall in the real
discount rate from 2.55% to 1.95%. Total contributions to defined benefit
pension schemes to fund ongoing accrual of benefits and past service deficits
increased by £10.4 million from £36.5 million to £46.9 million. Contributions to
defined contribution pension schemes increased from £0.5 million to £0.8
million. For 2006, we currently expect defined benefit funding to increase by a
further estimated £5.0 million (excluding Pension Protection Fund levy). The IAS
19 defined benefit operating profit charge, before past service costs (£1.3
million), was £28.6 million in 2005 and is expected to be £30.4 million in 2006.
The net IAS 19 finance credit is expected to increase by £8.2 million from £1.7
million in 2005 to £9.9 million in 2006.

Cash flow and net debt

Net operating cash flow decreased by £12.0 million from £288.8 million to £276.8
million, principally reflecting the additional pension contributions during the
period. Net debt only increased by £37.6 million from £454.9 million after the
adoption of IAS 39 on 3 January 2005 to £492.5 million. This was despite the
payment of increased equity dividends of £60.2 million, net capital expenditure
of £37.0 million, £86.5 million expended on acquisitions, the purchase of 8.2
million shares for £52.7 million under the share buy-back programme and the
purchase of shares for £5.7 million to provide for the possible awards under the
Long Term Incentive Plan launched in 2004, partially offset by the £17.6 million
proceeds on the issue of new share capital following the exercise of share
options under various schemes.

Capital expenditure in 2005 was £37.0 million net of disposal proceeds (2004:
£35.5 million) against a depreciation charge of £40.1 million (2004: £41.3
million). Capital expenditure for 2006 is expected to be £80.0 million,
including a further £60.0 million in respect of the press investment project.
The Group is still on target for capital expenditure of £180.0 million,
including the press investment programme over three years to 2007. All capital
expenditure is forecast to be financed from operating cash flows.

At 1 January 2006 committed facilities of £730.7 million were available to the
Group, of which £219.5 million were undrawn. The committed facilities include a
£269.0 million syndicated bank facility, US$602.0 million and £26.0 million
unsecured fixed rate loan notes and £6.0 million floating rate loan notes
(representing the total obligations under a series of private placement US
dollar and sterling loan notes respectively), obligations under finance leases
of £18.4 million and £0.8 million of acquisition loan notes. With the exception
of £0.6 million loan notes issued as part consideration for acquisitions, no new
financing facilities were procured in 2005 and no debt facilities were repaid
other than in accordance with their normal maturity date.

Net assets

At 1 January 2006 net assets were £753.7 million, an increase of £48.1 million
from £705.6 million at 2 January 2005. This includes the total carrying value of
the Group's acquired publishing rights and newspaper titles of £1,579.9 million
(excluding deferred tax on intangible assets of £484.8 million), customer
relationships and domain names arising on the acquired businesses of £36.2
million, goodwill of £72.8 million (of which £66.8 million arose on the acquired
businesses), property, plant and equipment of £387.3 million, net debt of £492.5
million, net deferred tax liabilities of £449.3 million and the IAS 19
retirement benefit obligation of £305.6 million before the provision of deferred
tax.


---------------------
* Before acquisitions, non-recurring items, IAS 39 and for 2004 excludes the
additional week's trading. See reconciliation between statutory and like-for-
like results in note 20.



Enquiries:
Trinity Mirror plc                                       020 7293 3000
Vijay Vaghela, Group Finance Director
Nick Fullagar, Director of Corporate Communications

Finsbury                                                 020 7251 3801
Rupert Younger
James Leviton








Consolidated income statement
for the 52 weeks ended 1 January 2006 (53 weeks ended 2 January 2005)

                                              Notes        2005         2004
                                                             £m           £m
------------------------------                ------    ---------   ----------

Revenue                                          3      1,122.0      1,141.7
Cost of sales                                            (538.8)      (533.6)
------------------------------                ------    ---------   ----------
Gross Profit                                              583.2        608.1
Distribution costs                                       (126.5)      (140.5)
Administrative expenses:
Non-recurring                                    4         (2.7)       (12.2)
Amortisation of intangibles                                (3.3)           -
Other                                                    (206.1)      (213.4)
Share of results of associates                              0.8          0.8
------------------------------                ------    ---------   ----------
Operating Profit                                 3        245.4        242.8

IAS 19 finance credit/(charge)                   5          1.7         (2.9)
IAS 39 impact*                                   5         (6.6)           -
Other finance costs                              5        (31.0)       (35.3)
Profit on disposal of subsidiary undertakings    4            -          2.5
------------------------------                ------    ---------   ----------
Profit before tax                                         209.5        207.1
Tax                                              6        (62.6)       (62.0)
------------------------------                ------    ---------   ----------
Profit for the period                                     146.9        145.1
------------------------------                ------    ---------   ----------
Attributable to:
Equity holders of the parent                              146.9        145.0
Minority interest                                                        0.1
------------------------------                ------    ---------   ----------
                                                          146.9        145.1
------------------------------                ------    ---------   ----------

Earnings per share (pence)                       8        Pence        Pence
Excluding amortisation of intangibles and IAS
39 impact*
Underlying earning per share                               52.9         51.2
Non-recurring items                                        (0.2)        (2.0)
------------------------------                ------    ---------   ----------
Adjusted earnings per share - basic                        52.7         49.2
------------------------------                ------    ---------   ----------
Adjusted earnings per share - diluted                      52.5         48.7
------------------------------                ------    ---------   ----------

Including amortisation of intangibles and IAS
39 impact*
Underlying earning per share                               50.5         51.2
------------------------------                ------    ---------   ----------
Non recurring items                                        (0.2)        (2.0)
------------------------------                ------    ---------   ----------
Earnings per share - basic                                 50.3         49.2
------------------------------                ------    ---------   ----------
Earnings per share - diluted                               50.1         48.7
------------------------------                ------    ---------   ----------


All revenue and results arose from continuing operations

* Impact of fair value, exchange rate, and amortisation adjustments on
borrowings and associated financial instruments accounted for under IAS 39.
References to IAS 39 throughout this document shall have the same meaning.



Consolidated statement of recognised income and expense
for the 52 weeks ended 1 January 2006 (53 weeks ended 2 January 2005)

                                                    2005          2004
                                                      £m            £m
  
Actuarial (losses)/ gains on defined benefit
pension schemes                                     
(net of tax)                                        (1.7)         24.9
Gain on revaluation of available-for-sale
investments taken to equity                          0.3             -
Tax on revaluation of available-for-sale
investments taken to equity                         (0.1)            -
------------------------------                   ---------    ----------
Net income recognised directly in equity            (1.5)         24.9
------------------------------                   ---------    ----------
Transferred to profit or loss on sale of
available-for-sale investments                      (2.7)            -
Tax on items transferred from equity                 0.8             -
------------------------------                   ---------    ----------
Transfers from equity to the income statement       (1.9)            -
------------------------------                   ---------    ----------
Profit for the period                              146.9         145.1
------------------------------                   ---------    ----------
Total recognised income and expense for the        
period                                             143.5         170.0
------------------------------                   ---------    ----------
Attributable to:                                   

Equity holders of the parent                       143.5         169.9
Minority interest                                      -           0.1
------------------------------                   ---------    ----------
                                                   143.5         170.0
------------------------------                   ---------    ----------


Consolidated balance sheet
at 1 January 2006 (2 January 2005)

                                  notes  1 January   2 January
                                              2006        2005
                                                £m          £m
                                          ---------   ---------
Non-current assets
Goodwill                                       72.8         6.0
Other intangible assets                     1,616.1     1,579.9
Property, plant and equipment                 387.3       387.8
Investments in associates                       8.6         7.5
Deferred tax asset                             97.9       106.5
-----------------------            ------   ---------   ---------
                                            2,182.7     2,087.7
-----------------------            ------   ---------   ---------
Current assets
Inventories                                     7.2         6.7
Available-for-sale financial
assets                                9         0.5         1.3
Trade and other receivables                   150.9       147.7
Cash and cash equivalents                      33.2        43.4
-----------------------            ------   ---------   ---------
                                              191.8       199.1
-----------------------            ------   ---------   ---------
Total assets                                2,374.5     2,286.8
-----------------------            ------   ---------   ---------
Non-current liabilities
Borrowings                           12      (392.0)     (440.8)
Obligations under finance leases     12       (15.6)      (17.7)
Retirement benefit obligation        14      (305.6)     (321.9)
Deferred tax liabilities                     (547.2)     (540.9)
Long term provisions                          (12.2)       (8.1)
Derivative financial instruments     10       (56.6)          -
-----------------------            ------   ---------   ---------
                                           (1,329.2)   (1,329.4)
-----------------------            ------   ---------   ---------
Current liabilities
Borrowings                                    (58.7)      (36.4)
Trade and other payables                     (183.0)     (175.0)
Current tax liabilities                       (37.5)      (33.2)
Obligations under finance leases     12        (2.8)       (2.5)
Short term provisions                          (9.6)       (4.7)
-----------------------            ------   ---------   ---------
                                             (291.6)     (251.8)
-----------------------            ------   ---------   ---------
Total liabilities                          (1,620.8)   (1,581.2)
-----------------------            ------   ---------   ---------
Net assets                                    753.7       705.6
-----------------------            ------   ---------   ---------
Equity
Share capital                                 (29.3)      (29.7)
Share premium account                      (1,118.9)   (1,101.7)
Revaluation reserve                            (4.9)       (4.9)
Capital redemption reserve                     (0.8)          -
Retained earnings and other
reserves                                      400.2       430.7
-----------------------            ------   ---------   ---------
Total equity                                 (753.7)     (705.6)
-----------------------            ------   ---------   ---------


Consolidated cash flow statement
for the 52 weeks ended 1 January 2006 (53 weeks ended 2 January 2005)



                                    notes       2005         2004
                                                  £m           £m
------------------------            ------   ----------   ----------
Cash flows from operating
activities
Cash generated from operations        11        276.8        288.8
Income tax paid                                 (55.5)       (55.6)
------------------------            ------   ----------   ----------
Net cash from operating activities              221.3        233.2
------------------------            ------   ----------   ----------
Investing activities
Interest received                                 1.2          0.8
Dividends received from associated                
undertakings                                      0.6          3.2
Purchase of shares from minority                    
interests                                           -         (4.5)
Proceeds on disposal of
available-for-sale financial                      
assets                                            2.9            -
Proceeds on disposal of land                      2.9            -
Net cash balances disposed of with
subsidiary undertaking                              -         (2.1)
Proceeds from sales of subsidiary                   
undertakings                                        -         44.7
Proceeds on disposal of property,
plant and equipment                               4.0          1.8
Purchases of property, plant and                
equipment                                       (41.0)       (37.3)
Proceeds from sale of motor cycle                   
show business                                       -          0.2
Acquisition of subsidiaries           16        (86.5)           -
------------------------            ------   ----------   ----------
Net cash (used in)/from investing              (115.9)         6.8
activities                          
------------------------            ------   ----------   ----------
Financing activities
Dividends paid                                  (60.2)       (55.1)
Dividend paid to minority                           
shareholders                                        -         (0.1)
Interest paid                                   (33.9)       (33.8)
Interest paid on finance leases                  (1.2)        (2.2)
Increase in borrowings                           45.0            -
Repayment of borrowings                         (18.1)      (138.2)
Principal payments under finance                 
leases                                           (1.8)       (11.0)
Purchase of shares under share                  
buy-back programme                              (52.7)           -
Issue of ordinary share capital                  17.6         12.5
Purchase of own shares under Long
Term Incentive Plan                              (5.7)        (6.2)
(Decrease)/increase in bank                      
overdrafts                                       (4.6)         3.2
------------------------            ------   ----------   ----------
Net cash used in financing                     
activities                                     (115.6)      (230.9)
------------------------            ------   ----------   ----------
Net (decrease)/increase in cash and             
cash equivalents                                (10.2)         9.1
Cash and cash equivalents at the                 
beginning of period                              43.4         34.3
------------------------            ------   ----------   ----------
Cash and cash equivalents at the                 
end of period                                    33.2         43.4
------------------------            ------   ----------   ----------



Notes to the 2005 preliminary statement



1. General information

The financial information in respect of the 53 weeks ended 2 January 2005 has
been produced using extracts from the statutory accounts under UK GAAP for this
period and amended by adjustments arising from the implementation of
International Financial Reporting Standards (IFRS). The financial information
presented on pages 13 to 35 has been prepared based on the adoption of IFRS,
including International Accounting Standards (IAS) and interpretations issued by
the International Accounting Standards Board (IASB) and its committees, as
interpreted by any regulatory bodies relevant to the Group. These are subject to
ongoing amendment by the IASB and subsequent endorsement by the European
Commission and are therefore subject to change.

2. Accounting policies

The policies set out below have been consistently applied to all the years
presented except for those relating to the classification and measurement of
financial instruments.


Trinity Mirror plc consolidated financial statements were prepared in accordance
with United Kingdom Generally Accepted Accounting Practice (UK GAAP) until 2
January 2005. UK GAAP differs in some areas from IFRS. In preparing the Trinity
Mirror plc 2005 consolidated financial statements, management has amended
certain accounting, valuation and consolidation methods applied in the UK GAAP
financial statements to comply with the recognition and measurement criteria of
IFRS. The comparative figures in respect of 2004 are restated to reflect these
adjustments.


The Group has made use of the exemption available under IFRS 1 to only apply
IAS32 "Financial Instruments: Disclosure and Presentation" (IAS 32) and IAS 39
"Financial Instruments: Recognition and Measurement" (IAS 39) from 3 January
2005.


Reconciliations and descriptions of the effect of the transition from UK GAAP to
IFRS on the Group's equity and its net income and cash flows are provided in
note 18.


Basis of consolidation

The consolidated financial statements incorporate the financial statements of
Trinity Mirror plc and all entities controlled by it for the 52 weeks ended 1
January 2006. Control is achieved where the Company has the power to govern the
financial and operating policies of an entity so as to obtain benefits from its
activities.


On the acquisition of a business, including an interest in an associated
undertaking or a joint venture, fair values are attributed to the Group's share
of the identifiable assets and liabilities of the business existing at the date
of acquisition and reflecting the conditions as at that date.


Results of businesses are included in the consolidated income statement from the
effective date of acquisition or up to the effective date of relinquishing
control as appropriate.


Where necessary, adjustments are made to the financial statements of
subsidiaries to bring their accounting policies into line with those used in the
preparation of the Group consolidated financial statements. All intra-group
transactions, balances, income and expenses are eliminated on consolidation.


Investment in associates

Associates are all entities over which the Group has significant influence but
not control and are accounted for by the equity method of accounting, initially
recognised at cost.


The Group's share of its associates' post-acquisition profits or losses is
recognised in the income statement, and its share of post-acquisition movements
in reserves is recognised in reserves.


Goodwill

Goodwill arising on consolidation represents the excess of the cost of
acquisition over the Group's interest in the fair value of the identifiable
assets and liabilities of a subsidiary, associate or jointly controlled entity
at the date of acquisition.


Goodwill is recognised as an asset and reviewed for impairment at least
annually. Any impairment is recognised immediately in the income statement and
is not subsequently reversed.


On disposal of a subsidiary, associate or jointly controlled entity, the
attributable amount of goodwill is included in the determination of the profit
or loss on disposal.


Goodwill arising on acquisitions before the date of transition to IFRS has been
retained at the previous UK GAAP amounts subject to being tested for impairment
at that date.



Notes to the 2005 preliminary statement (continued)


2. Accounting policies (continued)


Other intangible assets

Other intangible assets comprise acquired publishing rights and titles in
respect of print publishing activities, and customer relationships and domain
names in respect of online activities. On the acquisition of a business the cost
of the investment is allocated between categories of assets and liabilities on a
fair value basis. The fair value of other intangible assets is assessed based on
discounted cash flows.


Publishing rights and titles are initially recognised as an asset at fair value
with an indefinite economic life and subsequently measured at fair value less
any accumulated impairment losses. They are not subject to amortisation and are
tested for impairment. For the purpose of impairment testing, publishing rights
and titles are tested annually, or more frequently when there is an indication
that the recoverable amount is less than the carrying amount. An impairment loss
is recognised in the income statement in the period it occurs and is not
reversed in subsequent periods.


Customer relationships and domain names are amortised over the expected life
over which the assets will generate revenues and profits for the Group.


Business combinations

The acquisition of subsidiaries is accounted for using the purchase method. The
cost of the acquisition is measured at the aggregate of the fair values, at the
date of completion, of assets acquired, liabilities incurred or assumed, and
equity instruments issued by the Group in exchange for control of the acquiree,
plus any costs directly attributable to the business combination. The acquiree's
identifiable assets, liabilities and contingent liabilities that meet the
conditions for recognition under IFRS 3 are recognised at their fair values at
the acquisition date.


Goodwill arising on acquisition is recognised as an asset and initially measured
at cost, being the excess of the cost of the business combination over the
Group's interest in the net fair value of the acquiree's identifiable assets
(including intangible assets other than goodwill), liabilities and contingent
liabilities. If, after reassessment, the Group's interest in the net fair value
of the acquiree's identifiable assets, liabilities and contingent liabilities
exceeds the cost of the business combination, the excess is recognised
immediately in the income statement.

Revenue recognition

Revenue is measured at the fair value of Group sales, net of applicable
discounts and value added tax. Advertising revenue is recognised upon
publication and circulation revenue is recognised at the time of sale. Other
revenue is recognised at the time of sale or provision of service.


Property, plant and equipment

Property, plant and equipment are stated in the balance sheet at cost less any
subsequent accumulated depreciation and subsequent accumulated impairment
losses.


Cost includes purchase price and all directly attributable costs of bringing the
asset to its location and condition necessary to operate as intended.


Assets in the course of construction are carried at cost, less any recognised
impairment loss. Depreciation commences when the assets are ready for their
intended use.


Depreciation is charged so as to write off the cost, other than assets under
construction, using the straight-line method over the estimated useful lives
detailed below:

Property                              15 - 67 years
Plant and equipment                   3 - 25 years


Assets held under finance leases are depreciated over their expected useful
lives on the same basis as owned assets or, where shorter, over the term of the
relevant lease.


Trade receivables

Trade receivables do not carry any interest and are stated at their nominal
value as reduced by appropriate allowances for estimated irrecoverable amounts.


Investments

Current investments have been classified as available-for-sale financial assets,
and are measured at fair value. Gains and losses arising from changes in fair
value are recognised directly in equity net of deferred tax, until the
investment is disposed of or is determined to be impaired, at which time the
cumulative gain or loss previously recognised in equity is included in the
income statement for the period.


Borrowings

Interest-bearing loans and bank overdrafts are recorded at the proceeds
received, net of direct issue costs. Finance charges, including premiums payable
on settlement or redemption and direct issue costs, are accounted for on an
accrual basis to the income statement using the effective interest method and
are added to the carrying amount of the instrument to the extent that they are
not settled in the period in which they arise.


Notes to the 2005 preliminary statement (continued)


2. Accounting policies (continued)


Trade payables

Trade payables are not interest-bearing and are stated at their nominal value.


Financial instruments

Financial assets and financial liabilities are recognised on the Group's balance
sheet when the Group becomes a party to the contractual provisions of the
instrument.


Derivative financial instruments

The Group uses derivative financial instruments, including cross-currency
interest rate swaps, interest rate swaps and other hedging instruments, to
minimise exposure to the financial risks of changes in foreign currency exchange
rates and interest rates. The Group does not use derivative financial
instruments for speculative purposes.


Since 3 January 2005 derivative financial instruments are now separately
recognised at fair value in the financial statements. Changes in the fair value
of derivative financial instruments are recognised immediately in the income
statement.


Derivatives embedded in commercial contracts are treated as separate derivatives
when their risks and characteristics are not closely related to those of the
underlying contracts, with unrealised gains or losses reported in the income
statement.


Tax

The tax expense represents the sum of the corporation tax currently payable and
deferred tax.


The corporation tax currently payable is based on taxable profit for the year.
Taxable profit differs from profit before tax as reported in the income
statement because it excludes items of income or expense that are taxable or
deductible in other years and it further excludes items that are not taxable or
deductible.


Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences
can be utilised.


Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries and associates, and interests in joint
ventures, except where the Group is able to control the reversal of the
temporary difference and it is possible that the temporary difference will not
reverse in the foreseeable future.


The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.


Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.


Employee benefits - retirement benefits

The Group operates a number of funded defined benefit (final salary pension)
schemes, all of which have been set up under Trusts that hold their financial
assets separately from those of the Group and are controlled by the Trustees. In
addition, a number of defined contribution arrangements are currently operated.


Payments to defined contribution retirement benefit schemes are charged as an
expense as they fall due.


The liability recognised in the balance sheet in respect of defined benefit
pension plans is the present value of the defined benefit obligation at the
balance sheet date less the fair value of plan assets, together with adjustments
for unrecognised actuarial gains or losses and past service costs. The defined
benefit obligation is calculated annually by independent actuaries using the
projected unit credit method. The present value of the defined benefit
obligation is determined by discounting the estimated future cash outflows using
interest rates of high-quality corporate bonds approximating to the terms of the
related pension liability. Unrealised gains and losses are recognised in the
Statement of Recognised Income and Expense.


Employee benefits - share-based payments

The Group has applied the requirements of IFRS 2, Share-based Payments. In
accordance with the transitional provisions, IFRS 2 has been applied to all
grants of equity instruments after 7 November 2002 that had not vested as of 3
January 2005. The Group issues equity-settled benefits to certain
employees.These equity-settled share-based payments are measured at fair value
(excluding the effect of non-market-based vesting conditions) at the date of
grant. The fair value is determined at the grant date and is expensed on a
straight-line basis over the vesting period, based on the Group's estimate of
shares that will eventually vest and annually adjusted for the effect of
non-market-based vesting conditions).


Fair value is measured by use of a stochastic (Monte-Carlo binomial) model. The
expected life used in the model has been adjusted, based on management's best
estimate, for the effects of non-transferability, exercise restrictions, and
behavioural considerations.



Notes to the 2005 preliminary statement (continued)



2. Accounting policies (continued)


Dividend distribution

Dividend distribution to the Company's shareholders is recognised as a liability
in the Group's financial statements in the period in which the dividends are
approved.


Application of IFRS 1

The Group's financial statements for the period ended 1 January 2006 are the
first annual financial statements that comply with IFRS. These financial
statements have been prepared as described in note 1 including the principles
set out in IFRS 1.


IFRS 1 sets out the procedures to be followed when adopting IFRS for the first
time as the basis for preparing the Group's consolidated financial statements.
The Group is required to establish its IFRS accounting policies and, in general,
apply these retrospectively to determine the IFRS opening balance sheet at the
date of transition, 29 December 2003. IFRS 1 provides a number of optional
exemptions to this general principle. The most significant of these are set out
below, together with a description, in each case, of the exemption adopted by
the Group.


• Business combinations - IFRS 3, Business Combinations

The Group has elected not to restate the accounting for business combinations
completed before the date of transition.


• Fair value as 'deemed' cost - IAS 16, Property, Plant and
Equipment

The Group has elected, where appropriate, to use fair value as the 'deemed' cost
of plant, property and equipment on adoption of IFRS.


• Employee Benefits - IAS 19, Employee Benefits

The Group has elected to recognise all cumulative actuarial gains and losses in
relation to employee benefit schemes at the date of transition. In subsequent
periods all actuarial gains and losses will be recognised in full in the period
in which they occur in the Statement of Recognised Income and Expense in
accordance with the amendment to IAS 19, issued on 16 December 2004.


• Financial Instruments - IAS 32, Financial Instruments:
Disclosure and Presentation and IAS 39, Financial Instruments: Recognition and
Measurement

The Group has elected to adopt IAS 32 and IAS 39 from 3 January 2005. Therefore
the comparative financial information in respect of financial instruments is
presented in accordance with UK GAAP.


• Share-based Payments - IFRS 2, Share-Based Payments

The Group has elected to apply IFRS 2 to all share-based awards and options
granted post 7 November 2002 but not vested at 3 January 2005.



3. Business and geographical segments


For management purposes, the Group is currently organised into the following
divisions: Regionals, Nationals, Sports, Magazines & Exhibitions and Central
costs. These divisions are the basis on which the Group reports its primary
segment information. The secondary reporting segment is a geographical
destination analysis of revenue.


Principal activities are as follows:


The Regionals division publishes a large portfolio of newspaper and online
brands across the UK. The National division, comprising the UK and Scottish
Nationals, publishes five daily and Sunday newspapers. The Sports division is a
supplier of racing and sports betting information, with four sports newspapers
and related online activities. The Magazines & Exhibitions division operates a
range of magazines, consumer and trade shows. Central costs include costs not
attributed to specific divisions and TM Interactive, which was reported
separately up until the end of 2004.





Notes to the 2005 preliminary statement (continued)



3. Business segments (continued)


Segment information for these activities is presented below.


Primary segments - business and geographical segment analysis

                                                     Magazines     
52 weeks ended                                             and  Central
1 January 2006         Regionals Nationals Sports  Exhibitions    costs Consolidated
                          2005      2005     2005         2005     2005         2005         
                            £m        £m       £m           £m       £m           £m
-----------------       --------  -------- --------    -------- --------     --------

Revenue
Segment sales            542.3     510.7     50.6        32.7        -      1,136.3
Inter-segment
sales                     (2.7)    (11.6)       -           -        -        (14.3)
Total revenue            539.6     499.1     50.6        32.7        -      1,122.0
-----------------       --------  -------- --------    -------- --------     --------

Result
Segment result           147.4      91.2     17.4         7.2    (15.9)       247.3
-----------------       --------  -------- --------    -------- --------
Non-recurring
items                                                                          (2.7)
Share of
results of
associates                                                                      0.8
                                                                             --------
Operating
profit                                                                        245.4
                                                                             --------

                                                                Central
                                                                  costs 
                                                                    and
                                                     Magazines       TM
53 weeks ended                                             and    inter
2 January 2005         Regionals Nationals Sports  Exhibitions   active Consolidated
                          2004      2004     2004         2004     2004         2004         
                            £m        £m       £m           £m       £m           £m
-----------------       --------  -------- --------    -------- --------     --------
Revenue
Segment sales           540.6     532.5     48.9        31.8         1.2      1,155.0
Inter-segment
sales                    (0.5)    (12.8)       -           -           -        (13.3)
Total revenue           540.1     519.7     48.9        31.8         1.2      1,141.7
----------------       --------  -------- --------    --------    --------     --------

Result
Segment result          151.0      95.2     18.0         7.5       (17.5)       254.2
----------------       --------  -------- --------    --------    --------
Non-recurring
items                                                                           (12.2)
Share of
results of
associates                                                                        0.8
                                                                               --------
Operating
profit                                                                          242.8
                                                                               --------



Secondary segments - geographical destination segment analysis

The Group's operations are located in the United Kingdom. The following table
provides an analysis of the Group's revenue by geographical market.

Revenue analysis                             52 weeks to 53 weeks to
                                               1 January   2 January
                                                    2006        2005
                                                      £m          £m
---------------------------                   ------------   --------

United Kingdom and
Republic of
Ireland                                          1,115.5    1,135.5
Continental Europe                                   6.2        6.1
Rest of world                                        0.3        0.1
---------------------------                   ------------   --------
Total                                            1,122.0    1,141.7
---------------------------                   ------------   --------

Circulation                                        396.4      395.4
Advertising                                        611.7      644.4
Other                                              113.9      101.9
---------------------------                   ------------   --------
Total                                            1,122.0    1,141.7
---------------------------                   ------------   --------



Notes to the 2005 preliminary statement (continued)


4. Non-recurring items and profit on sale of subsidiary undertakings

Non-recurring items                                          2005      2004
                                                               £m        £m
----------------------------------                       ----------   --------
Restructuring costs (a)                                       7.9       11.0
Severance costs following the acquisition of the  
hotgroup plc (b)                                              1.0          -
Profit on disposal of land and buildings (c)                 (3.5)      (1.0)
Profit on disposal of available-for-sale investments (d)     (2.7)         -
Maxwell related recoveries (e)                                  -       (1.3)
Write down of presses in Chester and Oldham (f)                 -        7.0
Release of old accruals for which no further costs
are expected (g)                                                -       (3.5)
----------------------------------                       ----------   --------
Non-recurring items                                           2.7       12.2
----------------------------------                       ----------   --------



a) Restructuring severance costs of £7.9 million have been incurred in delivery
of cost reduction measures. The 2004 charge of £11.0 million includes £0.9
million relating to the restructure of the TM Interactive division which has
been refocused on driving revenues for the Group and is not reported separately
in 2005.


b) Severance costs of £1.0 million were incurred following the acquisition of
the hotgroup plc (2004: £nil million)


c) In 2005 the Group disposed of surplus land and buildings realising a profit
on disposal of £3.5 million (2004: £1.0 million).


d) In 2005 the Group disposed of its shareholding in Scottish Radio Holdings plc
realising a profit of on disposal of £2.7 million (2004: £nil million).


e) In 2004 the Group recovered £1.3 million from the liquidators of Maxwell
related companies for claims outstanding since 1992.


f) In 2004 costs of £7.0 million were incurred in the write-down of press plant
from the closure of the Chester print site and the re-pressing project at Oldham
as part of the Manufacturing Project which was announced in February 2004.


g)In 2004 the Group released old sundry accruals of £3.5 million for which no
further costs were expected.



Profit on sale of subsidiary undertakings              2005       2004
                                                         £m         £m

Profit on sale of subsidiary undertakings                 -       (2.5)
-------------------------------                    ----------   --------
Profit on sale of subsidiary undertakings                 -       (2.5)
-------------------------------                    ----------   --------



In January 2004 the Group disposed of its Irish subsidiaries for a consideration
of £46.1 million, realising a profit of £2.5 million and its Motorcycle Show
business for a consideration of £0.2 million, realising a profit of £nil
million.


5. Finance costs
                                  IAS 19 (1) IAS 39 (2) Other (3)     Total
                                          £m         £m        £m        £m
------------------------              --------   --------  --------  --------
52 weeks ended 1 January 2006
Income                                  72.9          -       1.2      74.1
Expense                                (71.2)      (6.6)    (32.2)   (110.0)
------------------------              --------   --------  --------  --------
Total finance costs                      1.7       (6.6)    (31.0)    (35.9)
------------------------              --------   --------  --------  --------

53 weeks ended 2 January 2005
Income                                  67.4          -       0.8      68.2
Expense                                (70.3)         -     (36.1)   (106.4)
------------------------              --------   --------  --------  --------
Total finance costs                     (2.9)         -     (35.3)    (38.2)
------------------------              --------   --------  --------  --------



(1)  IAS 19 finance income represents expected return on scheme
     assets net of expected expenses, and IAS 19 finance expense represents 
     the interest cost on scheme liabilities.

(2)  Impact of fair value, exchange rate, and amortisation adjustments on 
     borrowings and associated financial instruments accounted for
     under IAS 39.

(3)  Other finance costs in 2005 include interest on obligations under finance 
     leases of £1.2 million (2004: £0.8 million).


Notes to the 2005 preliminary statement (continued)


6. Tax
                                                             2005       2004
                                                               £m         £m
----------------------------------                       ----------   --------
Current Tax
Corporation tax charge for the period                       (56.8)     (60.9)
Prior year adjustment                                        (2.0)      (2.0)
----------------------------------                       ----------   --------
Current tax charge                                          (58.8)     (62.9)
----------------------------------                       ----------   --------
Deferred Tax
Tax charge for the period                                    (5.3)      (2.2)
Prior year adjustment                                         1.5        3.1
----------------------------------                       ----------   --------
Deferred tax charge                                          (3.8)       0.9
----------------------------------                       ----------   --------
Total tax charge                                            (62.6)     (62.0)
----------------------------------                       ----------   --------

Reconciliation of tax charge                                    %          %
Standard rate of corporate tax                               30.0       30.0
Tax effect of items that are not deductible or not
taxable in determining taxable profit                         0.2        0.9
Tax effect of share results of associate                     (0.3)      (0.1)
Tax effect of rolled over and revaluation gains              (0.2)      (0.3)
Prior year adjustment to corporation tax                      0.2       (0.6)
----------------------------------                       ----------   --------
Total tax charge rate                                        29.9       29.9
----------------------------------                       ----------   --------



The standard rate of corporation tax is the UK prevailing rate of 30% (2004:
30%).


In addition to the amount charged to the income statement, deferred tax relating
to the actuarial losses on defined benefit pension schemes of £0.7 million has
been credited directly to equity.



7. Dividends

                                                   2005       2004
                                                     £m         £m
-----------------------------                  ----------   --------
Amounts recognised as distributions to
equity holders in the period:
Dividend paid (a)                                  60.2       55.1
-----------------------------                  ----------   --------

                                                  Pence      Pence
-----------------------------                  ----------   --------
Dividend paid per share (a)                        20.7       18.7
-----------------------------                  ----------   --------

                                                     £m         £m
-----------------------------                  ----------   --------

Dividend proposed but not paid nor included
in the accounting records (b)                      45.4       42.4
-----------------------------                  ----------   --------

                                                  Pence      Pence
-----------------------------                  ----------   --------
Dividend proposed per share (c)                    15.5       14.3
-----------------------------                  ----------   --------



(a) The amount of £60.2 million is in respect of the final dividend for the 53
weeks ended 2 January 2005 of 14.3 pence per share and the interim dividend for
the 52 weeks ended 1 January 2006 of 6.4 pence per share; the amount of £55.1
million is in respect of the final dividend for the 52 weeks ended 29 December
2003 of 12.8 pence per share and the interim dividend for the 53 weeks ended 2
January 2005 of 5.9 pence per share.


(b) The amount of £45.4 million represents the proposed final dividend for the
52 weeks ended 1 January 2006, which is subject to approval by shareholders at
the Annual General Meeting and as such is not reflected as a liability in these
financial statements; the amount of £42.4 million represents the proposed final
dividend for the 53 weeks ended 2 January 2005.


(c) The proposed final dividend for the 52 weeks ended 2 January 2006 of 15.5
pence per share (2004: 14.3 pence per share) is an addition to the interim
dividend of 6.4 pence per share (2004: 5.9 pence per share), bringing the total
annual dividend for the 52 weeks ended 1 January 2006 to 21.9 pence per share
(2004: 20.2 pence per share).


Notes to the 2005 preliminary statement (continued)

8.Earnings per share

Earnings                                           2005        2004
                                                     £m          £m
-------------------------------                    ------   ---------
Profit after tax before non-recurring items,
amortisation of intangibles and IAS39 
impact (underlying)                               154.4       151.0
Non-recurring items (after tax)*                   (0.6)       (6.0)
-------------------------------                    ------   ---------
Profit after tax before amortisation of
intangibles and IAS 39 impact                     153.8       145.0
Amortisation of intangibles (after tax)            (2.3)          -
IAS 39 impact (after tax)                          (4.6)          -
-------------------------------                    ------   ---------
Basic EPS earnings (profit attributable to        
equity holders)                                   146.9       145.0 
-------------------------------                    ------   ---------

Number of shares                                  ('000)      ('000)
-------------------------------                    ------    ---------
Weighted average number of ordinary shares for
the purpose of basic EPS                        291,900     294,787
Effect of dilutive potential ordinary shares -
share options                                     1,274       3,149
-------------------------------                    ------    ---------
Weighted average number of ordinary shares for
the purpose of diluted EPS                      293,174     297,936
-------------------------------                    ------    ---------



Basic profit per share is calculated by dividing profit attributable to equity
holders by the weighted average number of ordinary shares during the year.


Diluted profit per share is calculated by adjusting the weighted average number
of ordinary shares in issue on the assumption of conversion of all potentially
dilutive ordinary shares.


Earnings per share - pence                           Pence       Pence
--------------------------------                  ---------   ---------
Excluding amortisation of intangibles and IAS 39
impact:
Underlying earnings per share                          52.9        51.2
Non-recurring items*                                   (0.2)       (2.0)
--------------------------------                    ---------   ---------
Adjusted earnings per share - basic                    52.7        49.2
--------------------------------                    ---------   ---------
Adjusted earnings per share - diluted                  52.5        48.7
--------------------------------                    ---------   ---------

Including amortisation of intangibles and IAS 39
impact:
Underlying earnings per share                          50.5        51.2
Non-recurring items*                                   (0.2)       (2.0)
--------------------------------                    ---------   ---------
Earnings per share - basic                             50.3        49.2
--------------------------------                    ---------   ---------
Earnings per share - diluted                           50.1        48.7
--------------------------------                    ---------   ---------

Underlying earnings per share is stated               Pence        Pence
inclusive of the following item:                 
--------------------------------                    ---------   ---------
Amortisation of intangibles                            (0.8)           -
--------------------------------                    ---------   ---------

The earnings per share for each category of non-recurring items and profit on
sale of subsidiary undertakings disclosed in note 4 is as follows:

                                                           Pence        Pence
Restructuring costs                                         (1.8)        (2.5)
Severance costs following acquisition of the                
hotgroup plc                                                (0.3)           -
Profit on disposal of land and buildings                     1.2          0.2
Profit on disposal of available-for-sale                     
investments                                                  0.7            -
Maxwell related recoveries                                     -          0.4
Write down of presses in Chester and Oldham                    -         (1.9)
Release of old accruals for which no further
costs are expected                                             -          1.0
Profit on sale of subsidiary undertakings                      -          0.8
--------------------------------                 ----    ---------    ---------
Earnings per share - non-recurring items*                   (0.2)        (2.0)
--------------------------------                 ----    ---------    ---------

* Non-recurring items includes profit on disposal of subsidiary undertakings in 2004.



Notes to the 2005 preliminary statement (continued)


9.Available-for-sale financial assets


Adoption of IAS 32 & 39

As a result of the adoption of IAS 32 & 39 certain assets have been classified
as available-for-sale financialassets and valued at fair value with changes in
the fair value being recorded as an equity movement.

                                       2005      2004
                                         £m        £m
------------------------             --------   -------
Opening balance - cost                  1.3       1.2
Fair value impact of IAS 32 and 39      
adoption on transition                  2.4         -
------------------------             --------   -------
Adjusted opening position               3.7       1.2
Movement in period                     (3.2)      0.1
------------------------             --------   -------
Closing balance                         0.5       1.3
------------------------             --------   -------
Within current assets                   0.5       1.3
------------------------             --------   -------
Movement in period:
Increase in fair value of               0.3         -
available-for-sale assets
Disposal of available-for-sale         
assets                                 (3.5)        -
------------------------             --------   -------
                                       (3.2)        -
------------------------             --------   -------

Dealt with in Equity:
Impact of IAS 32 and 39 adoption        2.4         -
Movement in period                      0.3         -
Deferred tax                           (0.8)        -
------------------------             --------   -------
                                        1.9         -
------------------------             --------   -------

10. Derivative financial instruments


Adoption of IAS 32 & 39

IAS 32 & 39 were adopted as accounting standards on 3 January 2005. The
adjustment separated the foreign exchange component of the cross-currency
interest rate swaps from the value of the private placement loans which were
previously recorded at the swap contract exchange rate under UK GAAP.


Under exemption permitted within IFRS1 the comparative periods have not been
restated. Comparative periods are disclosed and measured based on UK GAAP as at
2 January 2005. Under UK GAAP at 2 January 2005 the swaps and their underlying
loan notes were accounted for using hedge accounting whereas under IFRS they are
disclosed separately at fair value.

                                                                        2005
                                                                          £m
Cross-currency interest rate swaps - fair value                  Liabilities
-------------------------------------                           --------------
Closing balance at 2 January 2005                                          -
Impact of IAS 32 & 39                                                  (87.2)
-------------------------------------                           --------------
Restated closing balance at 2 January 2005 after the impact
of IAS 32 & 39                                                         (87.2)
-------------------------------------                           --------------
Movement in fair value during the period including exchange                                                         
movements                                                               30.6
-------------------------------------                           --------------
Closing balance at 1 January 2006                                      (56.6)
-------------------------------------                           --------------
Current                                                                    -
Non-current                                                            (56.6)
-------------------------------------                           --------------



The Group uses cross-currency interest rate swaps to manage its exposure to
foreign exchange movements and interest rate movements on its private placements
by swapping these borrowings from US dollar fixed rates to sterling floating
rates.


The fair value of cross-currency interest rate swaps at 1 January 2006 is
estimated at £56.6 million (2 January 2005: £87.2 million). These amounts have
been calculated using an industry-standard financial instrument model. The Group
does not currently designate its cross-currency interest rate swaps as hedging
instruments and changes in the fair values of the swaps have been charged to the
income statement in the year.



Notes to the 2005 preliminary statement (continued)


11. Notes to the cash flow statement

                                                    2005    2004
                                                      £m      £m
-----------------------------                  -----------  ------
Operating profit                                   245.4   242.8
Adjustments for:
Depreciation of property, plant and equipment       40.1    49.0
Amortisation of intangible assets                    3.3       -
Share of result of associate                        (0.8)   (0.8)
Cost of Long Term Incentive Plan (LTIP benefits)     4.4     1.9
Profit on disposal of property, plant and           
equipment                                           (3.5)   (1.0)
Profit on disposal of available-for-sale            
investments                                         (2.7)      -
Adjustment for IAS 19 pension funding              (17.7)   (3.1)
-----------------------------                  -----------  ------
Operating cash flows before movements in           
working capital                                    268.5   288.8
(Increase)/decrease in inventories                  (0.5)    0.1
Decrease in receivables                             16.6    10.1
Decrease in payables                                (7.8)  (10.2)
-----------------------------                  -----------  ------
Cash generated by operations                       276.8   288.8
-----------------------------                  -----------  ------


Cash and cash equivalents represent the sum of the Group's bank balances and
cash in hand at the balance sheet date as disclosed on the face of balance
sheet.




12.           Net Debt

                                3 January
                                     2005                      Loans    Other        1 
                    2 January adoption of            IAS 39*  drawn/ non-cash  January
                    2005 IFRS     IAS 39* Cash Flow   impact  repaid  changes     2006
                           £m          £m        £m       £m      £m       £m       £m
----------------       -------     -------  --------  -------  ------   ------  ------
Non-current
Loan notes            (440.8)       86.3         -    (37.2)      -     (0.3)  (392.0)

Derivative
financial
instruments                -       (87.2)        -     30.6       -        -   (56.6)
Obligations
under finance
leases                 (17.7)          -         -        -     2.1        -   (15.6)
----------------       -------     -------  --------  -------  ------   ------  ------
                      (458.5)       (0.9)        -     (6.6)    2.1     (0.3)  (464.2)
----------------       -------     -------  --------  -------  ------   ------  ------
Current
Bank overdrafts        (22.5)          -       4.6        -       -        -   (17.9)
Short term
loans                      -           -         -        -   (40.0)       -   (40.0)
Loan notes             (13.9)          -         -        -    13.1        -    (0.8)
Obligations
under finance
leases                  (2.5)          -         -        -    (0.3)       -    (2.8)
----------------       -------     -------  --------  -------  ------   ------  ------
                       (38.9)          -      4.6        -   (27.2)       -   (61.5)
----------------       -------     -------  --------  -------  ------   ------  ------

Cash and cash
equivalents             43.4           -     (10.2)       -       -        -    33.2
----------------       -------     -------  --------  -------  ------   ------  ------
Net debt              (454.0)       (0.9)     (5.6)    (6.6)  (25.1)    (0.3)  (492.5)
----------------       -------     -------  --------  -------  ------   ------  ------



* The US and UK private placement loan notes totalling US$602 million and £32
million were issued in 2001 and 2002. The fixed rate interest and capital
repayments on the US$ denominated loan notes have been swapped into floating
rate sterling through the use of cross-currency interest rate swaps. As hedge
accounting under IAS 39 has not been applied, the loan notes and cross-currency
swaps are shown separately under IAS 39. The loan notes are disclosed at
amortised cost and translated into sterling at the prevailing period-end
exchange rate and the cross-currency swaps are disclosed at fair value at the
period-end date. These values do not represent the amounts required to repay the
loan notes or cancel the related cross-currency interest rate swaps.



Notes to the 2005 preliminary statement (continued)

12. Net debt (continued)

Opening position reconciled to UK GAAP as at 2 January 2005

                                  UK GAAP at      Adjustment     IFRS at
                                   2 January   on transition   2 January
                                        2005         to IFRS        2005
                                                               (audited)
Net Debt                                  £m              £m         £m
-------------------------------      --------        --------    --------
Non-current                                                     
Loan notes                           (440.8)              -      (440.8)
Obligations
under finance
leases                                (14.9)           (2.8)     (17.7)
-------------------------------      --------        --------    --------
                                     (455.7)           (2.8)     (458.5)
 -------------------------------     --------        --------    --------
Current
Bank overdrafts                       (22.5)              -       (22.5)
Loan notes                            (13.9)              -       (13.9)
Obligations
under finance
leases                                 (1.7)           (0.8)       (2.5)
-------------------------------      --------        --------    --------
                                      (38.1)           (0.8)      (38.9)
 -------------------------------     --------        --------    --------

Cash and cash
equivalents                            43.4                -        43.4
-------------------------------      --------        --------    --------
Net debt                             (450.4)           (3.6)     (454.0)
-------------------------------      --------        --------    --------


13. Share-based payments


During the 52 weeks to 1 January 2006, 1,002,919 (2004: 1,244,340) share options
were granted to senior managers on a discretionary basis under the 2004 Long
Term Incentive Plan (LTIP). The exercise price of the granted options is £1 for
each block of options granted. The options vest after three years, subject to
the continued employment of the participant and satisfaction of certain earnings
per share and total shareholder return performance conditions.


14. Retirement benefit schemes


Defined benefit schemes

The Group operates a number of pension schemes. Two of the schemes, namely the
Mirror Group Pension Scheme (the "Old Scheme") and the MGN Past Service Pension
Scheme (the "Past Service Scheme") cover the liabilities in respect of service
up to 13 February 1992, the date when the Old Scheme was closed. The Past
Service Scheme was established to meet the liabilities for service up to 13
February 1992 for employees and former employees, who worked regularly on the
production and distribution of Mirror Group's newspapers, which are not
satisfied by payments from the Old Scheme and the Maxwell Communications Pension
Plan or by the State.These Schemes have formal actuarial valuations carried out
regularly. The actuarial methods and assumptions used to calculate their assets
and liabilities vary according to actuarial and funding policies adjusted by the
Trustees.The last formal valuation was carried out as at 31 December 2004 and
showed that the Schemes have insufficient assets to meet their liabilities for
members' benefits. In anticipation of this, agreement was reached with the
Trustees to pay £9.0 million in the Past Service Scheme in 2005 (2004: £3.5
million). For 2006, agreement has been reached with the Trustees to pay £12.5
million. The next full actuarial valuation is due to be carried out as at 31
December 2007.


In addition to the above schemes, the Group operates a further eight final
salary schemes. Formal valuations of schemes are carried out regularly, the
actuarial methods and assumptions used to calculate each scheme's assets and
liabilities varying according to the actuarial and funding policies adopted by
their respective trustees.



Notes to the 2005 preliminary statement (continued)


14. Retirement benefit schemes (continued)

The most significant of the schemes are the Trinity Retirement Benefit
Scheme (the "Trinity Scheme"), the MGN Pension Scheme (the "MGN Scheme") and the
Midland Independent Newspapers Pension Scheme (the " MIN Scheme"), which
together with the Old Scheme and the Past Service Scheme represent over 95% of
the aggregate market value. The last formal valuation of these schemes was
undertaken on 30 June 2003 for the Trinity Scheme, 31 March 2004 for the MIN
Scheme and 31 December 2004 for the MGN Scheme. These valuations showed deficits
of £25.1 million, £30.8 million and £55.9 million respectively. All of the
schemes are being funded in accordance with the recommendations of the
respective actuaries. In 2005, the employer's contribution rate to the MGN
Scheme was 11.1%. However, this will increase in 2006 to 12%. The employer's
contribution rate to the Trinity Scheme remained at 14% in 2005. The employer's
contribution rate to the MIN Scheme increased by 1% to 15% in 2005.


During 2002, the decision was taken to close entry to these three defined
benefit (final salary pension) schemes to new employees with effect from 1
January 2003. All new employees are entitled to participate in a defined
contribution plan, the Trinity Mirror Pension Plan.


Valuations have been performed in accordance with the requirements of IAS 19
with scheme liabilities calculated using a consistent projected unit valuation
method and compared to the market value of the schemes' assets at30 December
2005, the last day prior to the period end for which such values were available.


Based on actuarial advice, the financial assumptions used in calculating the
schemes' liabilities and the total value of those liabilities under IAS 19 are:

Principal annual actuarial assumptions      2005       2004
used:                                          %          %
--------------------------              --------   ---------
Discount rate                               4.75        5.30
Inflation rate                              2.80        2.75
Expected return on scheme assets         4.00 to     5.10 to
                                            7.30        7.80
Expected rate of salary increases           4.10        4.00
Pension increases:
Pre 6 April 1997 pensions                2.80 to     2.75 to
                                            5.00        5.00
Post 6 April 1997 pensions               2.80 to     2.75 to
                                            3.30        3.25

Actual return on scheme assets            £179.7m      £91.6m

                                             2005        2004
Defined benefit schemes                        £m          £m
--------------------------                --------   ---------
Net scheme liabilities:

Present value of funded obligations     (1,535.5)   (1,371.6)
Fair value of schemes' assets            1,233.0     1,049.7
Effect of asset ceiling                     (3.1)          -
--------------------------                --------   ---------
Schemes' deficits                         (305.6)     (321.9)
--------------------------                --------   ---------

This amount is presented as follows:

Current liabilities                            -           -
Non-current liabilities                   (305.6)     (321.9)
--------------------------                --------   ---------
                                          (305.6)     (321.9)
--------------------------                --------   ---------

Pension scheme assets include direct    
investments in the Company's ordinary   
shares with a fair value of:                 £nil        £nil
--------------------------                --------   ---------




Notes to the 2005 preliminary statement (continued)


14.Retirement benefit schemes (continued)

                                                 2005       2004
Amounts recognised in the income statement         £m         £m
----------------------------                  --------   ---------
Current service cost                           (28.6)      (32.6)
Past service cost                               (1.3)       (0.6)
----------------------------                  --------   ---------
Total included in staff costs                  (29.9)      (33.2)
----------------------------                  --------   ---------

Expected return on scheme assets                72.9        67.4
Interest cost on pension schemes'              (71.2)      (70.3)
liabilities                                   --------   ---------
----------------------------
Net finance credit/(charge)                      1.7        (2.9)
----------------------------                  --------   ---------
Total included in the income statement         (28.2)      (36.1)
----------------------------                  --------   ---------

Movement in deficits during the period:
Opening deficits                              (321.9)     (357.9)
Contributions                                   46.9        36.5
Total charge to income statement               (28.2)      (36.1)
Actuarial gains                                  0.7        35.6
Effect of asset ceiling                         (3.1)          -
----------------------------                  --------   ---------
Closing deficits                              (305.6)     (321.9)
----------------------------                  --------   ---------
Movement not recognised in income
statement:
Actuarial gains                                  0.7        35.6
Effect of asset ceiling                         (3.1)          -
----------------------------                  --------   ---------
Total included in statement of recognised
income and                                      
expense                                       
(before tax)                                    (2.4)       35.6
----------------------------                  --------   ---------


                                                 2005        2004
Defined contribution schemes                       £m          £m
----------------------------                  --------   ---------
Amounts recognised in the income statement:
Current service cost                            (0.8)       (0.5)
----------------------------                  --------   ---------



15.      Long Term Incentive Plan (LTIP) share purchases


Purchases of shares for LTIP are included in retained earnings and other
reserves at £11.9 million (2 January 2005: £6.2 million) and under IFRS are now
classified as Treasury Shares, and are included in other reserves on the balance
sheet.


Notes to the 2005 preliminary statement (continued)


16. Acquisitions of subsidiaries

During the 52 weeks to 1 January 2006, the Group acquired Smart Media Services
Limited, Financial Jobs Online Limited, the hotgroup plc and Paldonsay
Limited.The results of the acquisitions have been included in continuing
operations.

The net assets acquired in the transactions, and the goodwill arising, are as
follows:
                                             Acquirees'    
                                               carrying              
                                                 amount       
                                                 before   Fair value
                                            combination  adjustments                     
                                                     £m           £m  Fair value
                                               --------     --------    --------
Net assets acquired
Property,
plant and
equipment                                           1.8        (0.5)        1.3
Current assets                                     12.2        (1.0)       11.2
Cash and cash
equivalents                                        (0.9)          -        (0.9)
Current
liabilities                                        (9.8)       (2.9)      (12.7)
Obligations
under finance
leases                                                -        (0.1)       (0.1)
Borrowings                                         (4.5)        0.1        (4.4)
Non-current
liabilities                                        (1.2)      (12.1)      (13.3)
--------------------             ------------    --------    --------    --------
                                                   (2.4)      (16.5)      (18.9)
Intangible
assets                                                                     39.5
Goodwill                                                                   66.8
--------------------             ------------    --------    --------    --------
Total
consideration                                                              87.4
--------------------             ------------    --------    --------    --------

These acquisitions have been aggregated as they are considered individually
immaterial to the Group's results.

Fair value adjustments reflect the alignment of the acquirees'               
accounting policies with those of the Group.                                 £m
-------------------------------------------                              --------

Satisfied by:
Cash
consideration
paid                                                                      (78.1)
Directly
attributable
acquisition
costs(1)                                                                   (3.1)
--------------------             ------------    --------    --------    --------
Total cash paid                                                           (81.2)
Deferred
consideration                                                              (5.5)
Loan notes                                                                 (0.7)
--------------------             ------------    --------    --------    --------
Total
consideration                                                             (87.4)
--------------------             ------------    --------    --------    --------
(1) Directly attributable acquisition costs included in the cost of acquisition
are the direct legal and accounting costs incurred in developing the acquisition
contracts and performing due diligence activities.


Total expenditure on acquisitions of £92.7 million comprises £87.4 million total
consideration detailed above, acquired borrowings of £4.4 million and cash and
cash equivalents of £0.9 million.


The goodwill arising on the acquisitions is attributed to the anticipated
profitability and market share of the acquirees in their new markets and the
anticipated synergies with other acquisitions.

Net cash outflow arising on
acquisition:

Cash
consideration
paid                                                                      (81.2)
Cash and cash
equivalents                                                                (0.9)
Borrowings
acquired                                                                   (4.4)
--------------------            ----------       ----------     ---------  ------
                                                                          (86.5)
--------------------            ----------       ----------     ---------  ------


The revenue and operating loss post acquisition of subsidiaries is as follows:

Revenue and profit impact                                      Contribution
                                                               to Group post
(included in continuing                                          acquisition
operations)
                                                                          £m

Revenue                                                                  9.2
--------------------             ----------    ---------- -----    -----------
Operating loss(2)                                                       (3.1)
--------------------             ----------    ---------- -----    -----------
(2) Operating loss is stated after amortisation costs of £3.3 million and
non-recurring severance costs of £1.0 million.

If the acquisitions had been completed on the first day of the financial period,
Group revenues for the period would have been £1,170.4 million and Group
operating profit would have been £249.1 million.


The initial accounting for acquisitions has not been finalised, due to
uncertainties regarding the valuation of acquired liabilities and provisions at
the acquisition date. These uncertainties are expected to be resolved within one
year of the date of each acquisition.


Notes to the 2005 preliminary statement (continued)


17. Issue of Annual Report and Accounts


The 2005 Annual Report and Accounts will be posted to shareholders on 31 March
2006. Copies may be obtained after 31 March 2006 from the Company Secretary,
Trinity Mirror plc at One Canada Square, Canary Wharf, London E14 5AP.


The financial information set out above does not constitute the Company's
statutory accounts for the periods ended 1 January 2006 or 2 January 2005, but
is derived from those accounts. Statutory accounts for 2004 have been delivered
to the Registrar of Companies and those for the period ended 1 January 2006 will
be delivered following the Company's Annual General Meeting on 4 May 2006. The
auditors have reported on those accounts; their reports were unqualified and did
not contain statements under section 237(2) or (3) of the Companies Act 1985.


18. Explanation of transition to IFRS


Differences between IFRS and UK GAAP

Presentation - IAS 1, Presentation of Financial Statements

The presentation format of IFRS is different from UK GAAP and the illustrative
financial information herein is designed to assist the reader to understand
these changes.


Dividends - IAS 10, Events After the Balance Sheet Date

Dividends proposed will be disclosed as a 'Non-adjusting Event after the Balance
Sheet Date' under IAS 10, Events after the Balance Sheet Date. Under IFRS
dividends are not recognised as liabilities (IAS 37, Provisions, Contingent
Liabilities and Contingent Assets) until they are appropriately approved and are
no longer at the discretion of the directors. Accordingly the 2004 proposed
dividend amount under UK GAAP is removed from the IFRS accounts.


Capitalised Leases - IAS 17, Leases

This standard has a wider scope than UK GAAP and has resulted in a small number
of short leasehold buildings being capitalised on the Balance Sheet.


Employee Option and Performance Share Schemes - IFRS 2, Share-based Payments

All transactions within the scope of IFRS 2 are valued based on the fair value
of the option or award at grant date and expensed to the Income Statement over
the vesting period of the scheme.


Pension costs - IAS 19, Employee Benefits

The main difference between IFRS and UK GAAP is the measurement of scheme
assets. The IFRS valuation is determined at bid rather than mid market price
thus increasing the Group's pension scheme liabilities. In addition, there is a
presentational difference with the pension scheme liability now being shown
gross of its deferred tax asset.


Holiday pay - IAS 19, Employee benefits

IAS 19 requires the recording of a holiday pay accrual. This has been included
in the opening IFRS Balance Sheet at 29 December 2003. Although it is expected
that this adjustment will be relatively stable in magnitude from one year to
another, when comparing the year end and interim periods there is a balance
sheet movement and income statement impact.


Goodwill - IAS 38, Intangible Assets

Under IAS 38 goodwill is not amortised. Instead it is subject to an annual
impairment review.An adjustment has been made to remove the goodwill
amortisation charge.


Associates - IAS 28, Investments in Associates

IFRS requires the share of profit of Associates to be shown post tax (IAS 1).
Under UK GAAP this amount is shown before tax with the tax charge included as
part of the Group tax charge.


Deferred Tax - IAS 12, Income Taxes

IAS 12 requires a deferred tax liability to be recognised on all temporary
timing differences. A potential liability arises from the difference between the
fair value attributed to publishing rights and titles from previous
acquisitions.As the group has elected, under IFRS 1, not to restate prior
acquisitions at transition date to an IFRS 3 basis then recognition is against
equity reserves rather than against goodwill.Also included in this adjustment is
the liability for gains deferred by rollover and held-over relief.


Cash flow

The differences between UK GAAP and IFRS cash flows relate to the
reclassification of some of the Group's UK GAAP operating lease payments as
finance lease payments under IFRS and the IAS 19 finance costs not charged to
the Group's income statement under UK GAAP. There is no impact on the final cash
position nor the movement in the period.The IFRS cash flow with comparative
information is presented on page 15.


The reconciliations of equity and profit below, together with the explanations
of the changes, are provided to facilitate the understanding of changes arising
from the adoption of IFRS.



Notes to the 2005 preliminary statement (continued)


18.Explanation of transition to IFRS (continued)

Reconciliation of profit for the 53 weeks ended 2 January 2005

                                         UK GAAP  Effect of       
                                         in IFRS transition       
                                          format    to IFRS      IFRS
                                              £m         £m        £m

Revenue                                  1,141.7          -   1,141.7
Cost of sales                             (533.6)         -    (533.6)
--------------------------                --------   --------  --------
Gross profit                               608.1          -     608.1
Distribution
costs                                     (140.5)         -    (140.5)
Administrative expenses:
Non-recurring                              (12.2)         -     (12.2)
Amortisation
of intangibles                              (0.4)       0.4         -
Other                                     (214.1)       0.7    (213.4)
Share of
results of
associates                                   1.3       (0.5)      0.8
--------------------------                --------   --------  --------
Operating
profit                                     242.2        0.6     242.8
IAS 19 finance
charge                                      (2.7)      (0.2)     (2.9)
Other finance
costs                                      (34.9)      (0.4)    (35.3)
Profit on
disposal of
subsidiary
undertakings                                 2.5          -       2.5
--------------------------                --------   --------  --------
Profit before
tax                                        207.1          -     207.1
Tax                                        (63.0)       1.0     (62.0)
--------------------------                --------   --------  --------
Profit for the
period                                     144.1        1.0     145.1
--------------------------                --------   --------  --------
Attributable to:
Equity holders
of the parent                              144.0        1.0     145.0
Minority
interests                                    0.1          -       0.1
--------------------------                --------   --------  --------
                                           144.1        1.0     145.1
--------------------------                --------   --------  --------




Notes to the 2005 preliminary statement (continued)

18.Explanation of transition to IFRS (continued)

Reconciliation of equity at 29 December 2003 (date of transition to IFRS)

                                        UK GAAP  Effect of       
                                        in IFRS transition       
                                         format    to IFRS       IFRS
                                             £m         £m         £m
Non-current assets
Goodwill                                    6.2          -        6.2
Other
intangible
assets                                  1,616.2          -    1,616.2
Property,
plant and
equipment                                 401.0        2.5      403.5
Investments in
associates                                  9.8          -        9.8
Deferred tax
asset                                      11.4      107.8      119.2
--------------------------               --------   --------   --------
                                        2,044.6      110.3    2,154.9
--------------------------               --------   --------   --------
Current assets
Inventories                                 7.0          -        7.0
Available-for-
sale financial
assets                                      1.1          -        1.1
Trade and
other
receivables                               159.8          -      159.8
Cash and cash
equivalents                                34.3          -       34.3
--------------------------               --------   --------   --------
                                          202.2          -      202.2
--------------------------               --------   --------   --------
Total assets                            2,246.8      110.3    2,357.1
--------------------------               --------   --------   --------
Non-current liabilities
Borrowings                               (554.9)         -     (554.9)
Obligations
under finance
leases                                    (22.8)      (3.2)     (26.0)
Retirement
benefit
obligation                               (248.1)    (109.8)    (357.9)
Deferred tax
liabilities                               (67.5)    (476.6)    (544.1)
Long term
provisions                                (12.7)      (0.3)     (13.0)
--------------------------               --------   --------   --------
                                         (906.0)    (589.9)  (1,495.9)
--------------------------               --------   --------   --------
Current liabilities
Borrowings                                (57.3)         -      (57.3)
Trade and
other payables                           (222.6)      37.1     (185.5)
Current tax
liabilities                               (26.9)         -      (26.9)
Obligations
under finance
leases                                     (4.4)      (0.7)      (5.1)
--------------------------               --------   --------   --------
                                         (311.2)      36.4     (274.8)
--------------------------               --------   --------   --------
Total
liabilities                            (1,217.2)    (553.5)  (1,770.7)
--------------------------               --------   --------   --------
Net assets                              1,029.6     (443.2)     586.4
--------------------------               --------   --------   --------
Equity
Share capital                             (29.4)         -      (29.4)
Share premium
account                                (1,089.5)         -   (1,089.5)
Revaluation
reserve                                    (5.0)         -       (5.0)
Retained
earnings and
other reserves                             98.0      443.2      541.2
--------------------------               --------   --------   --------
Equity
attributable
to equity
holders of the
parent                                 (1,025.9)     443.2     (582.7)
Minority
interest                                   (3.7)         -       (3.7)
--------------------------               --------   --------   --------
Total equity                           (1,029.6)     443.2     (586.4)
--------------------------               --------   --------   --------



Notes to the 2005 preliminary statement (continued)

18.Explanation of transition to IFRS (continued)

Reconciliation of equity at 2 January 2005 (date of last UK GAAP financial
statements)
                                         UK GAAP  Effect of       
                                         in IFRS transition       
                                          format    to IFRS       IFRS
                                              £m         £m         £m

Non-current assets
Goodwill                                     5.6        0.4        6.0
Other
intangible
assets                                   1,579.9          -     1579.9
Property,
plant and
equipment                                  385.7        2.1      387.8
Investments in
associates                                   7.5          -        7.5
Deferred tax
asset                                        9.6       96.9      106.5
--------------------------                --------   --------   --------
                                         1,988.3       99.4    2,087.7
--------------------------                --------   --------   --------
Current assets
Inventories                                  6.7          -        6.7
Available-for-
sale financial
assets                                       1.3          -        1.3
Trade and
other
receivables                                147.7          -      147.7
Cash and cash
equivalents                                 43.4          -       43.4
--------------------------                --------   --------   --------
                                           199.1          -      199.1
--------------------------                --------   --------   --------
Total assets                             2,187.4       99.4    2,286.8
--------------------------                --------   --------   --------
Non-current liabilities
Borrowings                                (440.8)         -     (440.8)
Obligations
under finance
leases                                     (14.9)      (2.8)     (17.7)
Retirement
benefit
obligation                                (222.5)     (99.4)    (321.9)
Deferred tax
liabilities                                (64.9)    (476.0)    (540.9)
Long term
provisions                                  (7.8)      (0.3)      (8.1)
--------------------------                --------   --------   --------
                                          (750.9)    (578.5)  (1,329.4)
--------------------------                --------   --------   --------
Current liabilities
Borrowings                                 (36.4)         -      (36.4)
Trade and
other payables                            (216.5)      41.5     (175.0)
Current tax
liabilities                                (33.5)       0.3      (33.2)
Obligations
under finance
leases                                      (1.7)      (0.8)      (2.5)
Short term
provisions                                  (4.7)         -       (4.7)
--------------------------                --------   --------   --------
                                          (292.8)      41.0     (251.8)
--------------------------                --------   --------   --------
Total
liabilities                             (1,043.7)    (537.5)  (1,581.2)
--------------------------                --------   --------   --------
Net Assets                               1,143.7     (438.1)     705.6
--------------------------                --------   --------   --------
Equity
Share capital                              (29.7)         -      (29.7)
Share premium
account                                 (1,101.7)         -   (1,101.7)
Revaluation
reserve                                     (4.9)         -       (4.9)
Retained
earnings and
other reserves                              (7.4)     438.1      430.7
--------------------------                --------   --------   --------
Equity
attributable
to equity
holders of the
parent                                  (1,143.7)     438.1     (705.6)
--------------------------                --------   --------   --------
Total equity                            (1,143.7)     438.1     (705.6)
--------------------------                --------   --------   --------



Notes to the 2005 preliminary statement (continued)


19. Adoption of IAS 32 and 39


Reconciliation of equity at 3 January 2005 from opening position to post IAS 32

& 39 adoption

The Group adopted IAS 32 & 39 on 3 January 2005 as permitted under the
exemptions of IFRS 1. The impact was limited to the revaluation of
available-for-sale financial assets to fair value from historical cost and
accounting for the Group's private placement loan notes and associated
cross-currency interest rate swaps, which are brought onto the balance sheet at
fair value. Under UK GAAP these were treated as a hedge and the related
borrowings were recorded at the future swaps exchange rate.


IAS 39 has specific accounting rules for the treatment of hedges previously
accounted under UK GAAP, which on adoption of the Standard are not accounted for
using hedge accounting on an ongoing basis under IFRS. The related borrowings
are now recognised at an 'adjusted' amortised cost. This adjustment arises from
the adoption date recognition rules where the opening position is recognised as
an accounting hedge. Subsequent measurements will not be under IAS 39 hedge
accounting rules but instead will amortise the adjusted cost at the effective
interest rate.

                                             IFRS  Adoption IFRS after
                                           before of IAS 32   adoption
                                         adoption      & 39  of IAS 32
                                        of IAS 32                 & 39
                                             & 39       
                                                              
                                              £m         £m         £m
Non-current assets
Goodwill                                     6.0          -        6.0
Other
intangible
assets                                    1579.9          -     1579.9
Property,
plant and
equipment                                  387.8          -      387.8
Investments in
associates                                   7.5          -        7.5
Deferred tax
asset                                      106.5          -      106.5
--------------------------                --------   --------   --------
                                         2,087.7          -    2,087.7
--------------------------                --------   --------   --------
Current assets
Inventories                                  6.7          -        6.7
Available-for-
sale financial
assets                                       1.3        2.4        3.7
Trade and
other
receivables                                147.7          -      147.7
Cash and cash
equivalents                                 43.4          -       43.4
--------------------------                --------   --------   --------
                                           199.1        2.4      201.5
--------------------------                --------   --------   --------
Total assets                             2,286.8        2.4    2,289.2
--------------------------                --------   --------   --------
Non-current liabilities
Borrowings                                (440.8)      86.3     (354.5)
Obligations
under finance
leases                                     (17.7)         -      (17.7)
Retirement
benefit
obligation                                (321.9)         -     (321.9)
Deferred tax
liabilities                               (540.9)      (0.7)    (541.6)
Long term
provisions                                  (8.1)         -       (8.1)
Derivative
financial
instruments                                    -      (87.2)     (87.2)
--------------------------                --------   --------   --------
                                        (1,329.4)      (1.6)  (1,331.0)
--------------------------                --------   --------   --------
Current liabilities
Borrowings                                 (36.4)         -      (36.4)
Trade and
other payables                            (175.0)       0.9     (174.1)
Current tax
liabilities                                (33.2)         -      (33.2)
Obligations
under finance
leases                                      (2.5)         -       (2.5)
Short term
provisions                                  (4.7)         -       (4.7)
--------------------------                --------   --------   --------
                                          (251.8)       0.9     (250.9)
--------------------------                --------   --------   --------
Total
liabilities                             (1,581.2)      (0.7)  (1,581.9)
--------------------------                --------   --------   --------
Net Assets                                 705.6        1.7      707.3
--------------------------                --------   --------   --------
Equity
                                           
Share capital                              (29.7)         -      (29.7)
Share premium
account                                 (1,101.7)         -   (1,101.7)
Revaluation
reserve                                     (4.9)         -       (4.9)
Retained
earnings and
other reserves                             430.7       (1.7)     429.0
--------------------------                --------   --------   --------
Equity
attributable
to equity
holders of the
parent                                    (705.6)      (1.7)    (707.3)
--------------------------                --------   --------   --------
Total equity                              (705.6)      (1.7)    (707.3)
--------------------------                --------   --------   --------



Unaudited other information

20. Reconciliation of Group statutory results to like-for-like results

                                            Acquisitions
52 weeks ended     Statutory         Non- 
1 January 2006        Result    recurring Result Amortisation  IAS 39      Like-for
                                    items     £m           £m  Impact         -like                         
                          £m          £m      (b)          (b)     £m        Result
                                      (a)                         (c)            £m
----------------      -------      -------- ------      ------- -------       -------

Revenue             1,122.0             -   (9.2)           -       -       1,112.8
Operating
profit                245.4           2.7   (1.2)         3.3       -         250.2
Profit before
tax                   209.5           2.7   (1.2)         3.3     6.6         220.9

                      pence        pence    pence       pence   pence         pence

Underlying
earnings per
share                  50.5             -   (0.3)         0.8     1.6          52.6
Non-recurring
items                  (0.2)          0.2      -            -       -             -
----------------      -------      -------- ------      ------- -------       -------
Earnings per
share - basic          50.3           0.2   (0.3)         0.8     1.6          52.6
----------------      -------      -------- ------      ------- -------       -------

                                            Acquisitions
53 weeks ended     Statutory         Non- 
2 January 2005        Result    recurring Result Amortisation Week 53      Like-for
                                    items     £m           £m  effect         -like                         
                          £m          £m      (b)          (b)     £m        Result
                                      (a)                         (d)            £m
----------------      -------      -------- ------      ------- -------       -------


Revenue             1,141.7             -      -            -   (14.2)      1,127.5
Operating
profit                242.8          12.2      -            -    (8.9)        246.1
Profit before
tax                   207.1           9.7      -            -    (8.3)        208.5

                      pence         pence  pence        pence   pence         pence

Underlying
earnings per
share                  51.2             -      -            -    (1.9)         49.3
Non-recurring
items                  (2.0)          2.0      -            -       -             -
----------------      -------      -------- ------      ------- -------       -------
Earnings per
share - basic          49.2           2.0      -            -    (1.9)         49.3
----------------      -------      -------- ------      ------- -------       -------


(a)  Details of non-recurring items are set out in note 4 and include the
     profit on disposal of subsidiary undertakings in 2004.

(b)  Details of acquisitions are set out in note 16. All acquisitions and
     amortisation relate to the Regionals business segment.

(c)  Impact of fair value, exchange rate, and amortisation adjustments on
     borrowings and associated financial instruments, accounted for under 
     IAS 39. The IAS 39 impact is included in central costs and is not allocated
     to a business segment.

(d)  2004 was a 53-week trading period compared to 52 weeks in 2005.


Unaudited other information (continued)

21. Indicative view of UK GAAP*

Reconciliation of profit for the 52 weeks to 1 January 2006 from IFRS to UK GAAP
applicable at 2 January 2005
                                       IFRS    Adjust     Indicative   2004 £m
                                                to UK             UK
                                         £m      GAAP           GAAP
                                                   £m             £m

Revenue                             1,122.0        -        1,122.0   1,141.7
Cost of sales                        (538.8)       -         (538.8)   (533.6)
-------------------------             -------  ------- ---   --------  --------
Gross profit                          583.2        -          583.2     608.1
Distribution
costs                                (126.5)       -         (126.5)   (140.5)
Administrative expenses:
Non-recurring                          (2.7)       -           (2.7)    (12.2)
Amortisation
of intangible
assets                                 (3.3)    (0.4)  (a)     (3.7)     (0.4)
Other                                (206.1)       -   (b)   (206.1)   (214.1)
Share of
results of
associates                              0.8      0.5   (c)      1.3       1.3
-------------------------             -------  ------- ---   --------  --------
Operating
profit                                245.4      0.1          245.5     242.2
IAS 19 finance
credit/(charge)                         1.7      0.1            1.8      (2.7)
IAS 39 impact                          (6.6)     6.6   (d)        -         -
Other finance
costs                                 (31.0)     0.3   (e)    (30.7)    (34.9)
Profit on
disposals of
subsidiary
undertaking                               -        -              -       2.5
-------------------------             -------  ------- ---   --------  --------
Profit before tax                     209.5      7.1          216.6     207.1
Tax                                   (62.6)    (2.4)  (f)    (65.0)    (63.0)
-------------------------             -------  ------- ---   --------  --------
Profit for the
period                                146.9      4.7          151.6     144.1
-------------------------             -------  ------- ---   --------  --------
Attributable to:
Equity holders
of the parent                         146.9      4.7          151.6     144.0
Minority
interest                                  -        -              -       0.1
-------------------------             -------  ------- ---   --------  --------
                                      146.9      4.7          151.6     144.1
-------------------------             -------  ------- ---   --------  --------

* United Kingdom Generally Accepted Accounting Practice applicable at 2 January
2005.

Differences between UK GAAP applicable at 2 January 2005 and UK GAAP as at the
date of this report reflect the implementation of the following standards:

   • Financial Reporting Standard No. 20 'Share-based payments';
   • Financial Reporting Standard No. 21 'Events after the balance sheet
    date';
   • Financial Reporting Standard No. 25 'Financial Instruments: Disclosure
    and presentation'; and
   • Financial Reporting Standard No. 26 'Financial Instruments:
    Measurement'.

The principal adjustments arising in the reconciliation from IFRS to UK GAAP are
as follows:

(a)     Amortisation of goodwill not permitted under IFRS.

(b)     A reduction in the Group's share based payments charge of £0.5 million
under UK GAAP is offset by an increase in operating lease rentals of £0.5
million on property leases capitalised under IFRS but not under UKGAAP.

(c)     The Group's share of results of associates is shown net of tax under
IFRS and gross of tax under UK GAAP.

(d)     Reverses the IAS 39 impact on borrowings that arises under IFRS.

(e)     Reflects the interest arising on certain property leases capitalised
under IFRS but not under UK GAAP.

(f)      Corporation tax impact of adjustments from IFRS to UK GAAP.



Unaudited other information (continued)

21. Indicative view of UK GAAP* (continued)

Reconciliation of equity at 1 January 2006 from IFRS to UK GAAP applicable at 2
January 2005

                                      IFRS  Adjust to     Indicative     2004
                                        £m    UK GAAP       UK GAAP        £m
                                                   £m            £m
Non-current assets
Goodwill                              72.8      (0.8)  (a)     72.0       5.6
Other
intangible
assets                             1,616.1         -        1,616.1   1,579.9
Property,
plant and
equipment                            387.3      (1.8)  (b)    385.5     385.7
Investments in
associates                             8.6         -            8.6       7.5
Deferred tax
asset                                 97.9     (92.0)  (c)      5.9       9.6
------------------------            --------  -------- ---   --------  --------
                                   2,182.7     (94.6)       2,088.1   1,988.3
------------------------            --------  -------- ---   --------  --------
Current assets
Inventories                            7.2         -            7.2       6.7
Available-for-
sale financial
assets                                 0.5         -            0.5       1.3
Trade and
other
receivables                          150.9         -          150.9     147.7
Cash and cash
equivalents                           33.2         -           33.2      43.4
------------------------            --------  -------- ---   --------  --------
                                     191.8         -          191.8     199.1
------------------------            --------  -------- ---   --------  --------
Total assets                       2,374.5     (94.6)       2,279.9   2,187.4
------------------------            --------  -------- ---   --------  --------
Non-current liabilities
Borrowings                          (392.0)    (49.1)  (d)   (441.1)   (440.8)
Obligations
under finance
leases                               (15.6)      2.3   (e)    (13.3)    (14.9)
Retirement
benefit
obligations                         (305.6)     95.5   (c)   (210.1)   (222.5)
Deferred tax
liabilities                         (547.2)    475.9   (f)    (71.3)    (64.9)
Long term
provisions                           (12.2)      0.6          (11.6)     (7.8)
Derivative
financial
instruments                          (56.6)     56.6   (d)        -         -
------------------------            --------  -------- ---   --------  --------
                                   (1,329.2)   581.8         (747.4)   (750.9)
------------------------            --------  -------- ---   --------  --------
Current liabilities
Borrowings                           (58.7)        -          (58.7)    (36.4)
Trade and
other payables                      (183.0)    (45.6)  (g)   (228.6)   (216.5)
Current tax
liabilities                          (37.5)     (2.1)         (39.6)    (33.5)
Obligations
under finance
leases                                (2.8)      0.8   (e)     (2.0)     (1.7)
Short term
provisions                            (9.6)        -           (9.6)     (4.7)
------------------------            --------  -------- ---   --------  --------
                                    (291.6)    (46.9)        (338.5)   (292.8)
------------------------            --------  -------- ---   --------  --------
Total
liabilities                        (1,620.8)   534.9       (1,085.9)  (1,043.7)
------------------------                      
                                    --------  -------- ---   --------  --------
Net assets                           753.7     440.3        1,194.0   1,143.7
------------------------            --------  -------- ---   --------  --------
Equity
Share capital                        (29.3)        -          (29.3)    (29.7)
Share premium
account                            (1,118.9)       -       (1,118.9)  (1,101.7)

Revaluation
reserve                               (4.9)        -           (4.9)     (4.9)
Capital
redemption
reserve                               (0.8)        -           (0.8)        -
Retained
earnings and
other reserves                       400.2    (440.3)         (40.1)     (7.4)
------------------------            --------  -------- ---   --------  --------
Total equity                        (753.7)   (440.3)      (1,194.0)  (1,143.7)
------------------------            --------  -------- ---   --------  --------

* United Kingdom Generally Accepted Accounting Practice applicable at 2 January
2005.

The principal adjustments arising in the reconciliation from IFRS to UK GAAP are
as follows:

(a)     Adjustment for amortisation of goodwill in 2004 and 2005 not permitted
under IFRS.


(b)     Adjustment for leases capitalised under IFRS but not under UK GAAP,
representing leasehold properties.


(c)     The deferred tax asset arising on retirement benefit obligations is
shown separately under IFRS but is netted against the obligations under UK GAAP.


(d)     Effect of IAS 39 on the fair value of borrowings and derivative
financial instruments.


(e)     Adjustment for leasehold properties capitalised under IFRS but not under
UK GAAP.


(f)      Removes the deferred tax liability of £474 million on intangibles
arising under IFRS.


(g)     Relates principally to the £45.4 million 2005 final dividend, which
under IFRS is not recognised as a liability until approved by the Board.



Unaudited other information (continued)

22. Analysis of net debt (excluding IAS 39)

                                       1 January  2 January
                                            2006       2005
                                              £m         £m
--------------------------                --------   ----------

Cash at bank in hand                        33.2         43.4
Bank overdrafts                            (17.9)       (22.5)
--------------------------                --------   ----------
Net cash balances                           15.3         20.9
--------------------------                --------   ----------

Debt due within one year                   (40.8)       (13.9)
Debt due after one year                   (441.1)      (440.8)
Finance leases                             (18.4)       (20.2)
--------------------------                --------   ----------
Bank loans, bank notes and finance        (500.3)      (474.9)
leases                                    --------   ----------
--------------------------

Net debt                                  (485.0)      (454.0)
--------------------------                --------   ----------



This note summarises net debt on an IFRS comparable basis excluding the impact
of IAS 39 fair value, exchange rate and amortisation adjustments, illustrated in 
note 12.






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