GROUP PROFIT AND LOSS ACCOUNT
for the 52 weeks ended 26 February 2005
					Continuing
		Continuing			activities	Goodwill
		activities			before goodwill	Amortisation
		before	Operating	Unaudited	amortisation	& operating	Audited
		operating	exceptional	Total	& operating	exceptional	Total
		exceptional	items	52 weeks to	exceptional	items	52 weeks to
		items	(note 4)	26-Feb-05	items	(note 4)	28-Feb-04
	Note	£m	£m	£m	£m	£m	£m
Turnover	1	460.3	-	460.3	470.5	-	470.5
Operating profit before goodwill amortisation	2	54.4	(25.5)	28.9	54.2	(7.8)	46.4
Goodwill amortisation		-	-	-	-	(10.3)	(10.3)
Operating profit	3	54.4	(25.5)	28.9	54.2	(18.1)	36.1
Share of joint venture operating loss		(1.9)	-	(1.9)	-	-	-
Profit/(loss) on sale of tangible fixed assets		(0.3)	-	(0.3)	1.0	-	1.0
Profit on ordinary activities before finance charges		52.2	(25.5)	26.7	55.2	(18.1)	37.1
Net interest payable and similar charges		(8.1)	-	(8.1)	(6.1)	-	(6.1)
Profit on ordinary activities before taxation		44.1	(25.5)	18.6	49.1	(18.1)	31.0
Taxation on profit on ordinary activities		(11.0)	7.7	(3.3)	(13.8)	1.2	(12.6)
Profit on ordinary activities after taxation		33.1	(17.8)	15.3	35.3	(16.9)	18.4
Equity minority interests		-	-	-	-	(0.5)	(0.5)
Profit for the financial year		33.1	(17.8)	15.3	35.3	(17.4)	17.9
Dividends	6	(17.2)	-	(17.2)	(17.1)	-	(17.1)
Retained profit/(loss) for the year		15.9	(17.8)	(1.9)	18.2	(17.4)	0.8
Underlying earnings per share	7			11.25p			12.02p
Goodwill amortisation & operating
exceptional items				(6.07)p			(5.91)p
Basic earnings per share				5.18p			6.11p
Diluted earnings per share	7			5.17p			6.08p
Dividends per share	6			5.84p			5.84p

GROUP BALANCE SHEET as at 26 February 2005
	Unaudited	Audited
	2005	2004
	£m	£m
		(restated note 8)
Fixed assets
Intangible assets	1.5	-
Tangible assets	78.8	83.0
Investments	0.1	-
	80.4	83.0
Current assets
Stocks	44.8	46.4
Debtors	332.6	354.1
Cash at bank and in hand	44.5	26.8
	421.9	427.3
Creditors
Amounts falling due within one year	(84.2)	(90.4)
Net current assets	337.7	336.9
Total assets less current liabilities	418.1	419.9
Creditors
Amounts falling due after more than one year	(170.0)	(170.6)
Provisions for liabilities and charges	(4.8)	(5.0)
Net assets	243.3	244.3
Capital and reserves
Called-up share capital	29.5	29.5
Share premium account	9.2	9.1
Own shares	(1.5)	(2.3)
Profit and loss account	206.1	208.0
Equity shareholders’ funds	243.3	244.3
Equity minority interests	-	-
Capital employed	243.3	244.3
Gearing	52%	60%

GROUP CASH FLOW STATEMENT
for the 52 weeks ended 26 February 2005
			Unaudited		Audited
		2005	2005	2004	2004
	Note	£m	£m	£m	£m
Net cash inflow from operating activities	5		66.5		29.4
Returns on investments and servicing of finance
Interest paid		(8.3)		(6.3)
Interest element of finance lease payments		(0.1)		(0.1)
Net cash outflow from returns on investments
and servicing of finance			(8.4)		(6.4)
Taxation
Corporation tax paid			(14.5)		(12.8)
Capital expenditure and financial investment
Purchase of tangible fixed assets		(9.4)		(25.4)
Loans advanced to Joint Venture		(2.0)		-
Sale of fixed asset investment		-		0.8
Sale of tangible fixed assets		4.9		0.6
Decrease in own shares held in trust		0.8		0.7
Net cash outflow from capital expenditure and
financial investment			(5.7)		(23.3)
Acquisitions and disposals
Purchase of subsidiary undertakings		-		(0.3)
Purchase of trade and assets		(1.5)		-
Net cash outflow from acquisitions and disposals			(1.5)		(0.3)
Equity dividends paid			(17.1)		(17.1)
Cash inflow/(outflow) before financing			19.3		(30.5)
Financing
Issue of ordinary share capital		0.1		0.4
New loans		-		34.0
Loan repayments		-		(0.5)
Capital element of finance leases		(0.6)		(0.5)
Net cash (outflow)/inflow from financing			(0.5)		33.4
Increase in cash in the year			18.8		2.9

GROUP CASH FLOW STATEMENT, contd.

for the 52 weeks ended 26 February 2005

	Unaudited 2005 £m	Audited 2004 £m
Reconciliation of net cash flow to movement in net debt
Increase in cash in the year	18.8	2.9
Cash inflow from increase in loans	-	(34.0)
Repayment of loans	-	0.5
Repayment of capital element of finance leases	0.6	0.5
Movement in net debt in the year	19.4	(30.1)
Net debt at 28 February 2004	(145.6)	(115.5)
Net debt at 26 February 2005	(126.2)	(145.6)

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

for the 52 weeks ended 26 February 2005

	Unaudited	Audited
	2005	2004
	£m	£m
Profit for the financial year	15.3	17.9
Exchange adjustments offset in reserves	0.2	(0.1)
Total recognised gains relating to the year	15.5	17.8

RECONCILIATION OF MOVEMENTS IN GROUP SHAREHOLDERS' FUNDS

for the 52 weeks ended 26 February 2005

	Unaudited	Audited
	2005	2004
	£m	£m
		(restated note 8)
Profit for the financial year	15.3	17.9
Dividends	(17.2)	(17.1)
	(1.9)	0.8
Other recognised gains and losses (net) relating to the year	0.2	(0.1)
Share option charge	0.6	0.2
Issue of ordinary share capital	0.1	0.4
Net (reduction in)/additions to shareholders' funds	(1.0)	1.3
Equity shareholders' funds at 28 February 2004 (originally £246.6m before deducting prior period adjustment of £2.3m)	244.3	243.0
Equity shareholders' funds at 26 February 2005	243.3	244.3

NOTES TO THE ACCOUNTS

for the 52 weeks ended 26 February 2005

	Unaudited	Audited
	2005	2004
1. Analysis of turnover	£m	£m
Home shopping	416.5	412.6
Door to door selling	24.0	33.1
TV Rental	5.7	7.2
Financial services	6.7	8.7
Fulfilment	7.4	8.9
	460.3	470.5

	Unaudited	Audited
2. Analysis of operating profit before goodwill	2005	2004
amortisation and operating exceptional items	£m	£m
Home shopping	59.2	51.8
Door to door selling	(6.3)	(2.0)
TV Rental	-	1.2
Financial services	1.2	2.4
Fulfilment	0.3	0.8
	54.4	54.2

	Unaudited	Audited
	2005	2004
3. Analysis of operating profit	£m	£m
Home shopping	59.2	52.2
Door to door selling	(28.8)	(2.0)
TV Rental	-	(8.4)
Financial services	(1.8)	2.4
Fulfilment	0.3	(8.1)
	28.9	36.1

	Unaudited	Audited
4. Analysis of goodwill amortisation and	2005	2004
operating exceptional items	£m	£m
Amortisation of goodwill	-	0.6
Impairment of carrying value of tangible fixed assets	-	7.8
Impairment of carrying value of financial services	3.0	-
Impairment of carrying value of door to door selling operation	22.5	-
Write-off of carrying value of goodwill	-	9.7
	25.5	18.1

NOTES TO THE ACCOUNTS (continued)

for the 52 weeks ended 26 February 2005

	Unaudited	Audited
5. Reconciliation of operating profit to	2005	2004
operating cash flows	£m	£m
Operating profit	28.9	36.1