RNS Number:4785P
Guiton Group Ld
08 September 2003



                                                               8 September 2003



                            The Guiton Group Limited

             Interim Results for the six months ended 30 June 2003

The Guiton Group Limited ("Guiton"), the AIM quoted publisher of the Jersey
Evening Post and Guernsey Press daily newspapers, announces Interim Results for
the six months ended 30 June 2003.

-------------------------------------------------------------------------------  
                                                      First half   First half
                                                            2003         2002
------------------------------------------------------------------------------- 
Turnover                                      #'000       34,563       37,279
-------------------------------------------------------------------------------
Operating profit* (continuing operations)     #'000        2,384        2,649
-------------------------------------------------------------------------------  
Profit before tax                             #'000        2,334        2,394
-------------------------------------------------------------------------------
Distributable profit                          #'000        1,846        1,885
-------------------------------------------------------------------------------
Basic earnings per share                      pence         6.81         6.96
-------------------------------------------------------------------------------
Adjusted earnings per share                   pence         6.89         6.84
-------------------------------------------------------------------------------
Interim dividend per share                    pence         3.54         3.22
-------------------------------------------------------------------------------
* Before goodwill charges and exceptional items

* Solid result for the first six months in the face of continued
  difficult markets

* Profit before tax at #2.3m (2002: #2.4m) is on a par with last year,
  which benefited from an exceptional gain and a significantly lower pension
  charge

* Circulation of the Jersey Evening Post and Guernsey Press newspapers
  remained similar to last year; employment advertising continued to fall but
  other advertising sectors increased

* Retail and wholesale turnover increased slightly but margins are under
  pressure

* The Technology division made good progress following its restructuring
  in 2002

* Underlying results, as represented by adjusted EPS, improved slightly

* 10% increase in dividend, reflecting the Board's confidence in the
  Group's prospects

Senator Frank Walker, Chairman, commented:

"I am pleased to report a solid result for the first six months of the year, in
particular the early benefits of the turn-around strategy for our technology
division. This was achieved in the face of continued deterioration in our main
markets.

"Overall the Group is trading to plan for 2003 and is well placed to take
advantage of any economic upturn."


                                    - ends -


For further information, please contact:

The Guiton Group Limited                                            01534 611800
John Averty, Chief Executive
Rick McHattie, Finance Director

Weber Shandwick Square Mile                                        020 7067 0700
Nick Oborne or Louise Robson


                                                                8 September 2003


                            The Guiton Group Limited

             Interim Results for the six months ended 30 June 2003


Chairman's Statement

I am pleased to report a solid result for the first six months of the year with
pre-tax profit on a par with last year when there was an exceptional capital
gain and a significantly lower pension charge. This performance, achieved in the
face of continued deterioration in our main markets, reflects in particular the
early benefits of the turn-around strategy for our technology division.

Results

Turnover from continuing operations at #34.6m (2002: #35.6m) was 3% lower, with
growth from the retail and wholesale division being negated by a fall in
technology hardware sales and a small overall decline in advertising sales.

Operating profit, at #2.36m (2002: #2.40m) was down 2% compared with the
previous year. Operating profits from continuing operations (and before
amortisation of goodwill) decreased by 10% to #2.4m (2002: #2.6m). Technology
margins improved considerably but pressure on retail margins and the continuing
fall in the employment advertising market resulted in a reduction of the
operating margin from 7.1% to 6.8%.

Last year's exceptional profit of #116k made from printing businesses sales and
closures was not repeated. First half results this year also reflect an extra
#160k pension contribution which in 2002 was accounted for at the year end.

Pre-tax profit fell marginally by #60k to #2.3m. The effective tax rate has
increased to 20.9% (2002: 19.8%) reflecting the non-availability of tax-exempt
gains on the disposal of businesses which were enjoyed last year.

Basic earnings per share (EPS) of 6.81p (2002: 6.96p) were 2% down on last year;
adjusted EPS (excluding goodwill charges totalling 0.08p per share) increased by
1% to 6.89p (2002: 6.84p).

Expenditure on fixed assets of #1m was incurred on retail stores, improved IT
systems and conversion to a digital system of photography in the newspapers.

The underlying trend of reducing borrowings continued enabling the Group to
re-structure its bank facilities in a more flexible and cost-efficient form.

Dividend

The Board continues to have confidence in the Group's prospects despite the
continuing challenging market conditions and has again declared a 10% increase
in the interim dividend. The sum of 3.54p per share net (2002: 3.22p) will be
paid on the 3rd October 2003 to shareholders on the register on 19th September
2003.

Review of Operations

Publishing

The two daily newspapers, the Jersey Evening Post and the Guernsey Press, have
generally coped well with the worsening of the important employment advertising
market. Revenues in this category fell #428k compared with the corresponding
period last year; other advertising sectors, particularly property, performed
well to reduce the overall advertising income deficit to just over #100k.

Circulation of both newspapers remained similar to last year with Guernsey
showing a slight increase and Jersey a small decline.

Progress continues in introducing common technology systems as replacements are
required and a common accounting system has been implemented. This policy not
only enhances resilience but also enables the division to maximise its use of
technology with minimum resources.

Retail and wholesale

Although turnover has grown by a healthy 7% year on year, margins have come
under pressure as competition, particularly in higher margin products, has
increased.

The success of the move into the SPAR branded convenience store sector over the
past few years continues with sales in this category rising by 12%, including a
substantial rise in petrol sales, albeit at low margin, in the Isle of Man. Our
high street stores have suffered from increased competition and low consumer
confidence in the Channel Island market with the result that turnover dropped by
4%. These stores enjoy higher margins than the convenience sector.

The Isle of Wight operation made good progress in terms of both sales and
margins and appears set to enjoy a better tourist season.

We continue to monitor and improve the estate. A new store has been purchased in
Ventnor in the Isle of Wight and an underperforming store in the Isle of Man
closed with the lease re-assigned. A new store on a Greenfield site in the Isle
of Man will open in the third quarter. The store in Mulcaster Street, Jersey was
successfully relocated to larger premises and converted to a SPAR convenience
store and two further Jersey stores will be converted to the SPAR brand in the
second half of the year.

Technology

Itex has made considerable progress during 2003 in very difficult market
conditions and a general malaise in the technology sector. Reduced costs as a
result of the restructuring undertaken in 2002 and a focus on Managed Services
are starting to bear fruit and drive the company towards profitability.

Customers' reduced economic confidence, particularly in the offshore financial
services sector, continues to delay capital investment commitments. Major
project expenditure therefore remains subdued, reflected in the falling turnover
of low margin hardware sales.

The growth in Managed Services business is the key characteristic with long term
contracted revenue ahead of expectations and showing real growth over 2002. Cost
pressures are forcing many businesses, particularly those in the finance sector,
to examine how they can deliver their IT requirements more economically and Itex
has been able to take advantage of this opportunity by offering an outsourced
alternative. As part of this drive, Itex opened a second phase of its Technology
Management Centre on the outskirts of St Peter Port and an additional facility
for Business Continuity is being made available in Guernsey.

The adoption of Managed Services in the public sector continues to expand, with
existing contracts to deliver to Jersey's primary and secondary schools being
augmented by the winning of "preferred supplier" status to Guernsey's schools.

Outlook

The Group has adapted to deal with the continuing difficult trading conditions.
Overall the Group is trading to plan for 2003 and is well placed to take
advantage of any economic upturn.

Senator F H Walker
Chairman
5 September 2003

                                    - ends -

For further information, please contact:

The Guiton Group Limited                                            01534 611800
John Averty, Chief Executive
Rick McHattie, Finance Director

Weber Shandwick Square Mile                                        020 7067 0700
Nick Oborne or Louise Robson



THE GUITON GROUP LIMITED
Consolidated Profit and Loss Account
For the six months ended 30 June 2003

--------------------------------------------------------------------------------
                            6 months ended  6 months ended    12 months ended
                              30 June 2003    30 June 2002   31 December 2002
                                     #'000           #'000              #'000
                                 Unaudited       Unaudited            Audited
--------------------------------------------------------------------------------

Turnover
Continuing operations               34,563          35,565             71,730
Discontinued operations                  -           1,714              1,987
--------------------------------------------------------------------------------
                                    34,563          37,279             73,717
--------------------------------------------------------------------------------
Operating profit before              
goodwill charges                     2,384           2,513              5,205

Amortisation and                       
impairment of goodwill                 (21)           (110)              (735)   
--------------------------------------------------------------------------------
Operating profit/(loss)
Continuing operations                2,363           2,539              4,635
Discontinued operations                  -            (136)              (165)
--------------------------------------------------------------------------------
                                     2,363           2,403              4,470
Discontinued operations
- Profit on disposal of                  
operations                               -             116                 97           
--------------------------------------------------------------------------------
Profit before interest and           
taxation                             2,363           2,519              4,567

Net interest payable                   (29)           (125)              (226)
--------------------------------------------------------------------------------
Profit on ordinary                   
activities before taxation           2,334           2,394              4,341

Taxation                              (488)           (473)              (969)
--------------------------------------------------------------------------------
Profit on ordinary activities 
after taxation                       1,846           1,921              3,372

Equity minority interests                -             (36)              (152)                       
--------------------------------------------------------------------------------
Profit attributable to shareholders  1,846           1,885              3,220

Dividend proposed                     (959)           (872)            (2,235)
--------------------------------------------------------------------------------
Retained profit                        887           1,013                985
--------------------------------------------------------------------------------

Net dividend per share               3.54p           3.22p              8.25p
Basic earnings per share             6.81p           6.96p             11.89p
Diluted earnings per share           6.80p           6.93p             11.85p
Adjusted earnings per share          6.89p           6.84p             14.14p
                          
--------------------------------------------------------------------------------


THE GUITON GROUP LIMITED
Consolidated Balance Sheet
As at 30 June 2003

--------------------------------------------------------------------------------
                                          30 June      30 June     31 December
                                             2003         2002            2002
                                            #'000        #'000           #'000
                                        Unaudited    Unaudited         Audited
--------------------------------------------------------------------------------

Fixed Assets
Intangible assets                          16,147       16,714          16,090
Tangible assets                            18,824       17,270          18,979
Investments                                    18           19              18
--------------------------------------------------------------------------------
                                           34,989       34,003          35,087
Current Assets
Stock and work in progress                  4,489        4,705           4,700
Debtors                                     7,741        9,637           8,646
Cash at bank and in hand                        -           52           2,249
--------------------------------------------------------------------------------
                                           12,230       14,394          15,595
Creditors:
Amounts falling due within one year       (10,250)     (12,039)        (12,148)
--------------------------------------------------------------------------------
Net Current Assets                          1,980        2,355           3,447
--------------------------------------------------------------------------------
Total assets less current liabilities      36,969       36,358          38,534

Creditors:
Amounts falling due after more than          
one year                                     (488)      (3,622)         (2,938)

Provisions for liabilities and charges       (199)           -            (201)                               
--------------------------------------------------------------------------------
Net Assets                                 36,282       32,736          35,395
--------------------------------------------------------------------------------


Equity Shareholders' Funds                 34,943       31,698          34,056
Equity minority interests                   1,339        1,038           1,339
--------------------------------------------------------------------------------
Capital Employed                           36,282       32,736          35,395
--------------------------------------------------------------------------------
Approved by the Board of Directors on 5 September 2003.



THE GUITON GROUP LIMITED
Consolidated Cash Flow Statement
For the six months ended 30 June 2003

--------------------------------------------------------------------------------
                                        6 months      6 months       12 months
                                           ended         ended           ended
                                         30 June       30 June     31 December
                                            2003          2002            2002
                                           #'000         #'000           #'000
                                       Unaudited     Unaudited         Audited
--------------------------------------------------------------------------------

Operating profit                           2,363         2,403           4,470
Depreciation, amortisation and impairment  1,051         1,252           2,887
Decrease/(increase) in stock                 211          (141)           (186)
Decrease/(increase) in debtors               417           (10)          1,642
(Decrease)/increase in creditors          (2,234)         (191)          1,811
--------------------------------------------------------------------------------

Net cash inflow from operating activities  1,808         3,313          10,624

Returns on investments and servicing of
finance                                      (92)         (195)           (333)
Taxation                                  (1,228)       (1,037)         (1,247)
Capital expenditure and financial           
investment                                  (993)       (1,415)         (2,079)
Acquisitions and disposals                    (7)          730             888
Equity dividends paid                     (1,363)       (1,238)         (2,110)
--------------------------------------------------------------------------------

(Increase)/decrease in net debt in 
the period                                (1,875)          158           5,743

Net cash/(debt) at beginning of period       449        (5,294)         (5,294)                              
--------------------------------------------------------------------------------
Net (debt)/cash at end of period          (1,426)       (5,136)            449
--------------------------------------------------------------------------------


THE GUITON GROUP LIMITED
Statement of Total Recognised Gains and Losses
For the six months ended 30 June 2003

--------------------------------------------------------------------------------
                                         6 months      6 months      12 months
                                            ended         ended          ended
                                          30 June       30 June    31 December
                                             2003          2002           2002
                                            #'000         #'000          #'000
                                        Unaudited     Unaudited        Audited
--------------------------------------------------------------------------------

Profit on ordinary activities after         
taxation                                    1,846         1,921          3,372
Unrealised surplus on revaluation of            
properties                                      -             -          2,386           
--------------------------------------------------------------------------------
Total recognised gains for the period       1,846         1,921          5,758                              
--------------------------------------------------------------------------------


Reconciliation of Movement in Equity Shareholders' Funds
For the six months ended 30 June 2003

--------------------------------------------------------------------------------
Total recognised gains for the period        1,846        1,921          5,758
Dividends                                     (959)        (872)        (2,235)
--------------------------------------------------------------------------------
                                               887        1,049          3,523
Minority interests                               -          (36)          (152)
--------------------------------------------------------------------------------
Net addition to Equity Shareholders'
Funds during the period                        887        1,013          3,371
Equity Shareholders' Funds at the
beginning of the period                     34,056       30,685         30,685
--------------------------------------------------------------------------------

Equity Shareholders' Funds at the end
of the period                               34,943       31,698         34,056
--------------------------------------------------------------------------------



Consolidated Note of Historical Cost Profits
For the six months ended 30 June 2003

--------------------------------------------------------------------------------
Reported profit on ordinary activities before
taxation                                     2,334        2,394          4,341
Realisation of property revaluation
gains of previous periods                        -            -            444
Difference between historical cost
depreciation charge and actual depreciation 
charge for the period                            3           40             80
--------------------------------------------------------------------------------
                                             2,337        2,434          4,865
--------------------------------------------------------------------------------
Historical cost profit for the period
retained after taxation, minority interests 
and dividends                                  890        1,053          1,504                              
--------------------------------------------------------------------------------


THE GUITON GROUP LIMITED
Notes to the Financial Statements
For the six months ended 30 June 2003

1. Basis of preparation
The interim financial statements have been prepared on the same basis and in
accordance with the accounting policies adopted in the preparation of the
financial statements for the year ended 31 December 2002 and with United Kingdom
generally accepted accounting principles.

The comparative figures for the year ended 31 December 2002 have been extracted
from the audited financial statements for that year. These financial statements,
upon which the auditors have issued an unqualified opinion, have been filed with
the Registrar of Companies in Jersey.


2.      Segmental analysis
-----------------------------------------------------------------------------------------------------
                                  6 months ended         6 months ended        12 months ended
                                    30 June 2003           30 June 2002       31 December 2002
                                       Unaudited              Unaudited                Audited
                          Turnover     Operating   Turnover   Operating   Turnover   Operating
                                          Profit                 Profit                 Profit
                             #'000         #'000      #'000       #'000      #'000       #'000
-----------------------------------------------------------------------------------------------------
Continuing operations
Publishing                  11,539         2,591     11,739       2,957     23,627       5,552
Retailing and Wholesaling   17,543            13     16,433         214     34,555         946
Technology                   6,810          (220)     8,675        (522)    16,426      (1,128)
Less: Interdivisional
sales                       (1,329)            -     (1,282)          -     (2,878)          -
-----------------------------------------------------------------------------------------------------
                            34,563         2,384     35,565       2,649     71,730       5,370
Amortisation and impairment
of goodwill
Retailing and Wholesaling        -           (21)         -         (18)         -         (38)
Technology                       -             -          -         (92)         -        (697)
-----------------------------------------------------------------------------------------------------
                            34,563         2,363     35,565       2,539     71,730       4,635
Discontinued operations (note 3) -             -      1,714        (136)     1,987        (165)
-----------------------------------------------------------------------------------------------------
                            34,563         2,363     37,279       2,403     73,717       4,470
-----------------------------------------------------------------------------------------------------
Turnover relates primarily to activities conducted in the Channel Islands and
Isle of Man therefore no geographical segmentation is provided.


3. Discontinued operations
Discontinued operations comprise the Commercial Printing division which was sold
on 5 March 2002 and the book printing operation of The Guernsey Press Company
Limited which ceased trading during the second half of 2002. The profit on
disposal of operations for the six months ended 30 June 2002 of #116,000 relates
to these operations.

Trading results for the first half 2002:

--------------------------------------------------------------------------------
                                          Commercial          Book
                                            Printing      Printing       Total
--------------------------------------------------------------------------------
Turnover - including #70,000 interdivisional     630        1,154       1,784
Operating loss                                  (119)         (17)       (136)
--------------------------------------------------------------------------------


4. Taxation
Provision has been made for taxation, including deferred taxation, at 20.7%
(2002: 20.2%) of profit on ordinary activities before amortisation and before
non-taxable gains or losses on disposals, the estimated effective tax rate for
the full year.


5. Dividends
An interim dividend of 3.54 pence per share net (2002: 3.22 pence) will be paid
on 3 October 2003 to shareholders on the Register of Members on 19 September
2003. This will absorb #958,973 (2002: #872,289).


6. Basic earnings per share

Earnings per share have been calculated on the profit for the period of
#1,846,000 (2002: #1,885,000) and the weighted average number of shares in issue
during the first six months of 2003 of 27,089,643 (2002: 27,089,643).


7. Diluted earnings per share
Diluted earnings per share are calculated by adjusting the weighted average
number of ordinary shares in issue to assume conversion of all dilutive
potential ordinary shares. The Group has only one category of dilutive potential
ordinary shares: those share options granted to employees where the exercise
price is less than the average market price of the Company's ordinary shares
during the period.


8. Adjusted earnings per share
Adjusted earnings per share have been calculated on the profit for the period
excluding amortisation and impairment of intangible assets, exceptional items
and related tax effects. They are produced as an additional performance measure.

--------------------------------------------------------------------------------
                                     6 months        6 months         12 months
                                        ended           ended             ended
                                 30 June 2003    30 June 2002  31 December 2002
                                        pence           pence             pence
                                    Unaudited       Unaudited           Audited
--------------------------------------------------------------------------------
Basic earnings per share                 6.81            6.96             11.89

Amortisation of intangible assets        0.08            0.40              2.71
Disposal of businesses                      -           (0.52)            (0.46)
--------------------------------------------------------------------------------
Adjusted earnings per share              6.89            6.84             14.14
--------------------------------------------------------------------------------


9. Analysis of changes in net cash/(debt)

--------------------------------------------------------------------------------
                                               At         Cash              At
                                 31 December 2002         Flow    30 June 2003
                                            #'000        #'000           #'000
--------------------------------------------------------------------------------
Cash at bank and in hand                    2,249       (3,675)         (1,426)
Bank overdraft                                  -            -               -
Bank loans due after one year              (1,800)       1,800               -
--------------------------------------------------------------------------------
Total                                         449       (1,875)         (1,426)
--------------------------------------------------------------------------------


10. Interim report
The interim report for the six months ended 30 June 2003 was approved by the
directors on 5 September 2003. The preceding financial information does not
constitute statutory financial statements as defined under S.240 of the United
Kingdom Companies Act 1985.


11. Distribution
This report will be distributed to all holders of the Company's ordinary shares.
Copies will also be available at the Company's registered office and on the
Company's website: www.guiton.co.uk









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