7521
Trinity Mirror PLC
01 March 2007



 Trinity Mirror plc announces the Group's Preliminary Results for the 52 weeks
                            ended 31 December 2006.




Financial highlights

                                 Adjusted results*                Statutory results

                               2006       2005          %       2006         2005          %
                           52 weeks   52 weeks     Change   52 weeks     52 weeks     Change
                                 £m         £m                    £m           £m
                                                          Continuing   Continuing
                                                          operations   operations
Revenue                     1,032.1    1,083.6     (4.8)%    1,053.0      1,089.3     (3.3)%
Operating profit/(loss)       207.0      244.4    (15.3)%      (46.6)       238.3   (119.6)%
Profit/(loss) before tax      185.4      215.1    (13.8)%      (73.1)       202.4   (136.1)%

Earnings/(loss) per share      43.6p      51.3p   (15.0)%      (18.3)p       48.7p  (137.6)%
Dividend per share                                              21.9p        21.9p


Operational highlights

• Revenue* fell by 4.8% to £1,032.1 million, as a result of the difficult
  advertising environment
• Net cost savings of £20 million achieved - £5 million above target
• Profit before tax* fell by 13.8% to £185.4 million
• Launched 240 websites and six new newspaper titles and acquired Email4Property 
  in May 2006 for £4.5 million
• Strong cash flow generation - net debt fell by £51.6 million
• Board's confidence in future reflected in the final dividend being maintained 
  at 15.5 pence per share
• Implementation of the conclusions of the Business Review underway - disposals 
  expected to be completed on schedule during the second and third quarter

Commenting on the results, Sly Bailey, Chief Executive of Trinity Mirror plc
said:

"We performed creditably throughout 2006 in a harsh climate across the media
industry. We have reduced costs significantly in response to the industry-wide
decline in advertising volumes with the result that we have limited the
inevitable impact on our profitability. In addition we have completed a
fundamental business review and come out of that with a clear road map for the
Group's future.

Looking ahead our strategy is clear. We will harness the strong cash flows from
our first class portfolio of newspaper assets to build Trinity Mirror, both
organically and by acquisition, into a multi-platform media group with strong
growth potential.

We witnessed an encouraging finish to 2006. Although the current environment
remains challenging and volatile we continue to expect advertising market
conditions to stabilise during the year with the rate of decline slowing. The
combination of this stabilisation and continued focus on cost reduction
underpins the Board's confidence in the future, with 2007 performance in line
with expectations."

* Excluding disposed businesses (Magazines and Exhibitions division and 
traditional recruitment consultancy business), non recurring items (including a 
£250 million impairment of Regional newspaper titles), reduction in the charge
for share-based payments relating to 2004 and 2005, the amortisation of 
intangible assets and the impact of IAS 39. A reconcilliation between the 
adjusted and the statutory numbers is provided in note 16 on page 21.


Enquiries:

Trinity Mirror
Vijay Vaghela, Group Finance Director                 020 7293 3000
Nick Fullagar, Director Corporate Communications      020 7293 3622

Maitland
Neil Bennett                                          020 7379 5151


Within the following Chairman and Chief Executive Statement and Review of
Operations, all figures are presented on an adjusted basis (excluding disposed
businesses (Magazines and Exhibitions division and traditional recruitment
consultancy business), non recurring items (including a £250 million impairment
of Regional newspaper titles), reduction in the charge for share-based payments
relating to 2004 and 2005, the amortisation of intangible assets and the impact
of IAS 39) unless otherwise stated. A reconciliation between the adjusted and
the statutory numbers is provided in note 16 on page 21.

Chairman and Chief Executive Statement

Overview

Throughout 2006 Trinity Mirror faced a difficult advertising marketplace due to
the volatile retail sales environment, the effect of rising unemployment and the
impact of rising interest rates on consumer confidence. However, the end of the
fourth quarter showed some encouraging improvement in the advertising markets,
although it is still too early to call the turn in the cycle.

In the face of these conditions our performance was creditable. Whilst Group
revenues fell by £51.5 million to £1,032.1 million, the impact on profit was
partially mitigated through tight cost management which contributed to operating
profits falling by only £37.4 million to £207.0 million. The benefit of a £9.9
million IAS 19 finance credit limited the fall in profit before tax which fell
by £29.7 million to £185.4 million.

We exceeded our target of £15 million net cost savings announced in December
2005 and delivered £20 million. As a result operating costs, excluding
acquisitions, fell by £23.3 million in the year despite significant inflationary
pressures.

Our strategy, to build a multi-platform media business, remained on course
throughout 2006. We continued to further segment and layer our portfolio by
geography and target segments, across both print and on-line, deepening our
penetration in our core markets. This activity saw us launch both companion web
sites to many of our print titles, micro sites serving local communities and
sites serving key advertising markets in recruitment, property and motors. In
addition we launched six new newspapers and continued to acquire digital assets.

We continued to generate strong cash flows with net debt falling during the year
from £492.5 million to £440.9 million. This figure takes into account the
payment of £63.7 million for dividends and £72.8 million net capital expenditure
which has been partially offset by the proceeds from the disposal of the
Magazines and Exhibitions division and the traditional recruitment consultancy
business acquired with hotgroup plc.

The Board remains confident in the strong cash flow and the long term growth
potential of our business and therefore proposes to maintain the final dividend
at 15.5 pence per share even though earnings have fallen during the year.

Throughout 2006, our staff, across all areas of our business, have demonstrated
their talent, tenacity and enthusiasm in rising to the challenges we have faced.
On behalf of the Board, we would like to thank them for their commitment and
hard work over the course of the year.

We also undertook a thorough review of our businesses and concluded that to take
the Group forward we should rationalise our portfolio and concentrate on those
assets in Wales, the North East, the North West, Scotland and our national
newspaper titles. At the same time we will streamline and modernise the Group
through the implementation of a new technology-led operating model which will
further drive efficiencies and performance. These changes are expected to
deliver revenue benefits and we have already identified a further £20 million of
annualised cost savings by 2008. Our approach is one of continuous improvement
to ensure we are best positioned to take advantage of all changes in market
conditions.

Our Regional businesses in the Midlands and London and the South East do not
offer the same opportunities for the Group and are likely to be more attractive
to other owners. The Board, therefore, concluded that it should seek to dispose
of these businesses. In addition it concluded that the Racing Post, which
operates as a standalone business within the Group, should also be divested. The
disposals do not affect any part of the Group's manufacturing network.

The disposals will focus the Group on a streamlined portfolio of high quality
media assets, offering growth in revenues, margins and earnings. Strong cash
flow generation will support this growth through continued investment and
selected acquisitions and will provide continuing rewards to shareholders.

We intend to optimise our capital structure following the disposals and we are
intending to return the cash proceeds, net of related taxes and payments into
the pension funds, to shareholders.

Looking further ahead we are confident that the reorganisation we have started
following the business review, the strength of our portfolio and our growing
success at building and acquiring digital assets will all contribute to growth
once the current cyclical advertising downturn comes to an end.


Publishing activities

Our portfolio of businesses delivered a creditable performance in a depressed
advertising market through our continued focus on improving revenues and driving
efficiencies to partially mitigate the impact on profits.

Our Regionals division, in line with our strategy, continued to drive forward
with launching new titles and websites and in doing so deepening our penetration
of core markets. Coupled with this we have been maximising revenues through the
rejuvenation of our brands and through optimising our pricing and packaging of
advertising across our portfolio of products and platforms. These activities
have partially off-set the impact of the advertising market. In addition, our
little and often cover pricing policy has enabled us to continue to increase
circulation revenues despite volume declines.

Our National titles achieved a strong profit performance despite a difficult
advertising market and an extremely competitive circulation environment
characterised by substantial increases in promotional activity and price cutting
by all our competitor daily newspapers. While circulation volumes remain under
pressure as a result of this activity, management continues to believe that
excessive marketing expenditure does not drive longer term value and its focus
is to ensure sustainable returns on all investment in our titles.

We appointed a new managing director for the UK Nationals at the beginning of
2006 and further strengthened the team with the appointment of a new advertising
director.

In Scotland the marketplace saw heavy cover price cutting activity by all
national tabloids and in particular the Sun newspaper which cut its price to 10
pence. In order to preserve the Daily Record's market leadership, we promoted
and rewarded reader loyalty through the use of discount vouchers for a limited
period. Whilst this activity has impacted profits it has provided a firmer
platform for the business with which to grow future profitability. In August we
launched Record PM, in Glasgow and Edinburgh, as a paid for evening edition of
the Daily Record, to increase reach and response for our advertisers. To
optimise our market penetration we moved the title to a free distribution model
and extended its distribution to Aberdeen and Dundee in January 2007.

The Sports division delivered a robust performance in 2006 despite the impact of
a new nationally distributed daily betting title (The Sportsman) which launched
in March 2006. The division rose to the competitive challenge by introducing
further improvements to both the editorial content of the Racing Post and the
availability of the paper within the news trade. These enhancements were
supported by a strong marketing campaign. Just five months after launch, The
Sportsman ceased publication.

New initiatives

We continue to focus on driving growth from new initiatives, deepening our
presence in our core markets and geographies, both in print and online. During
the year we have launched 245 websites, six new newspaper titles - including
Metros in Cardiff and Liverpool - and six Buysell editions covering the North
West and North Wales. 2007 will see the Group continue this launch pipeline.

To strengthen our online presence in property we acquired Email4Property in May
2006. This business is now fully integrated within the operations of
Smartnewhomes and achieved revenues of £0.7 million in the period since
acquisition.

The development of our digital assets continues with significant momentum.
Whilst the hotgroup's development was temporarily slowed by management changes
made during the first half, the remainder of our acquired digital business are
exceeding expectations. We have appointed a senior manager with responsibility
for seeking out new opportunities and accelerating the development of our
acquired online recruitment businesses. Our aim is to substantially increase
digital revenues as a proportion of total revenues.

We are progressing with the implementation of our new technology led operating
model thereby modernising and streamlining our processes.

This programme will enable us to drive revenues by better serving our
advertisers and readers through:

   • On-line booking of adverts across print and digital platforms
   • Advert creation functionality that will enable customers to create their
     own adverts on-line
   • Consolidation of call centres to drive best in class customer service
   • A new multi platform editorial system
   • Transformation of our newspaper sales operations for both paid for and
     free titles

In addition to transforming the way we do business the new operating model is
expected to drive significant efficiencies, further cost savings and drive
incremental revenues.

Disposals

During June and July 2006 we disposed of our non core Magazines and Exhibitions
division through a number of transactions generating gross disposal proceeds of
£42.6 million. In August 2006 we also disposed of our traditional recruitment
consultancy business which was acquired as part of hotgroup plc in 2005, for a
consideration of £11.2 million.

We have commenced the disposal of our Regional businesses in the Midlands and
London and the South East, and the Sports division. We have strong interest from
both trade buyers and private equity and expect to complete these transactions
during the second and third quarters of 2007.

Capital expenditure

Our programme of investment in colour presses is progressing to plan with the
Nationals Oldham site repressing programme completed on schedule in July 2006.
The repressing of our other Nationals print sites in Scotland and Watford is
scheduled to complete in early 2007 and 2008 respectively.

2006 also saw the completion of a complex network upgrade and rationalisation
project which moved all our operations onto a single integrated group network
operating on new technology. The business will benefit significantly through the
enablement of new initiatives dependent on the provision of world class,
resilient, networking technology.

Board changes

On 4 May 2006, at the Group's Annual General Meeting, Sir Victor Blank retired
from the Board. On the same date, Sir Ian Gibson was appointed as Chairman to
the Board. Sir Victor 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 gave the management team to
help develop our business.

Laura Wade-Gery joined the Board as a Non-executive Director on 4 August 2006.

Outlook

We witnessed an encouraging finish to 2006. Although the current environment
remains challenging and volatile we continue to expect advertising market
conditions to stabilise during the year with the rate of decline slowing. The
combination of this stabilisation and continued focus on cost reduction
underpins the Board's confidence in the future, with 2007 performance in line
with expectations.


Review of Operations

Group revenues fell by £51.5 million (4.8%) from £1,083.6 million to £1,032.1
million and excluding acquisitions fell by £63.4 million (5.9%) from £1080.1
million to £1,016.7 million. On a statutory basis Group revenues fell by £36.3
million (3.3%) from £1,089.3 million to £1,053.0 million.

Group operating profit fell by £37.4 million (15.3%) from £244.4 million to
£207.0 million and excluding acquisitions fell by £40.1 million (16.5%) from
£243.3 million to £203.2 million. On a statutory basis Group operating profit
fell by £284.9 million (119.6%) from £238.3 million to a loss of £46.6 million.
The statutory operating loss reflects the non-cash charges of £250.0 million for
the impairment of the carrying value of intangibles and £10.6 million
amortisation offset by £2.0 million of other non recurring items.

As announced at the time of our interim results, an impairment review of the
carrying value of intangible assets in accordance with IAS 36 indicated that an
impairment charge of £250.0 million (£175.0 million after tax) was required. The
impairment charge reduced the carrying value of the Group's Regional newspaper
titles.

Total operating costs, excluding acquisitions, have fallen by £23.3 million
(2.8%) from £836.8 million to £813.5 million despite a 7% increase in the price
of newsprint and labour and cost inflation. We exceeded our target of cost
savings of £15 million announced in December by £5 million.

The Group's share of profits from associates was £1.3 million (2005: £0.8
million) and reflects the Group's share of profits in The Press Association
(PA), net of taxation payable thereon. The share of profits is higher than
expected as it includes the one-off benefit of £0.7 million reflecting the
profit on disposal of TwoTen Communications by PA. During the period dividends
of £0.5 million (2005: £0.6 million) were received from PA.

For 2006 the IAS 19 "Employee Benefits" defined benefit operating profit charge
and finance credit were £30.4 million (2005: £28.6 million) and £9.9 million
(2005: £1.7 million) respectively. For 2007, the IAS 19 defined benefit
operating charge is estimated to fall by £2.9 million to £27.5 million with the
finance credit estimated to increase to £12.3 million. The IAS 19 pension
deficit has fallen from £305.6 million to £213.0 million during the year
reflecting the benefit of increasing assets values due to the improved
performance of the equity markets and deficit funding payments, and a reduction
in liabilities due to a marginal increase in the real discount rate applied to
liabilities from 1.95% to 2.10%.

Finance costs, excluding the impact of IAS 19 and IAS 39 "Financial Instruments:
Recognition and Measurement", increased by £0.5 million from £31.0 million to
£31.5 million. The increase in finance costs between the years reflects the
phasing of actual debt levels and interest rates applying during each year. The
absolute debt levels fell substantially during the year. The IAS 39 impact
during the year, in relation to the US$ private placement and related cross
currency interest rate swaps, was a £4.9 million charge (2005: £6.6 million).
The IAS 39 impact reflects the fair value, exchange rate and amortisation
adjustments on borrowings and associated financial instruments accounted for
under IAS 39.

Group profit before tax fell by £29.7 million (13.8%) from £215.1 million to
£185.4 million. On a statutory basis Group profit before tax fell by £275.5
million (136.1%) from £202.4 million to a loss of £73.1 million.

The tax credit for the period of £19.9 million represents 27.2% (2005: 29.9%) of
statutory loss before tax. Excluding the impact on operating profit and tax of
the £250.0 million impairment charge and the related £75.0 million tax credit,
the tax charge for the year was £55.1 million representing 31.1% of the profit
before tax.

Earnings per share were 43.6 pence per share (2005: 51.3 pence per share), a
decrease of 15.0%. On a statutory continuing operations basis earnings per share
fell by 137.6% from 48.7 pence per share to a loss of 18.3 pence per share.

Subject to approval by shareholders at the Annual General Meeting, the directors
propose a final dividend of 15.5 pence per share to be paid on 8 June 2007 to
shareholders on the register at 5 May 2007. This will bring the total dividend
for the year to 21.9 pence per share. This is at the same level as 2005 even
though earnings have fallen during the year reflecting continued confidence in
strong cash flows. The dividend is covered 2.0 times by earnings before non
recurring items and will be fully funded from operating cash flow. An interim
dividend of 6.4p per share (2005: 6.4p per share) was paid on 31 October 2006 to
shareholders on the register at 6 October 2006.


Regionals division

The Regionals division publishes over 200 local and regional newspapers which
are complemented by more than 300 websites offering news, information and
advertising.

The revenue and operating profit of the Group's Regionals division, including
acquisitions, are as follows:

                                            2006          2005                %
                                              £m            £m           Change
Revenue
- Regional core                            468.4         509.5           (8.1)%
- Metros                                    17.3          13.3            30.1%
- Digital media activities                  24.5          11.1           120.7%
Total revenue                              510.2         533.9           (4.4)%

Operating Profit
- Regional core                            115.8         145.8          (20.6)%
- Metros                                     2.7           1.9            42.1%
- Digital media activities                   7.9           3.2           146.9%
Total operating profit                     126.4         150.9          (16.2)%

Operating Margin                            24.8%         28.3%          (3.5)%

Revenue fell by £23.7 million (4.4%) and operating profit fell by £24.5 million
(16.2%). Excluding acquisitions, revenue for the Regionals division fell by
£35.6 million (6.7%) from £530.4 million to £494.8 million and operating profit
decreased by £27.2 million (18.2%) from £149.8 million to £122.6 million.

Whilst operating profit excluding acquisitions decreased for the core Regional
newspaper titles, this has been partially offset by the continuing improvements
for Metros and digital media activities. The division's five Metros achieved a
£0.8 million (42.1%) improvement in operating profit to £2.7 million. The
division's organic digital media activities, excluding acquisitions completed in
2005 and 2006, continued to deliver further improvements with revenues
increasing by 19.7% and operating profits increasing by 95.2%.

The acquisitions of hotgroup online, GAAPweb, Smartnewhomes and Secsinthecity
completed in 2005 and Email4Property completed in May 2006 achieved revenues and
operating profits before amortisation of intangible assets of £15.4 million and
£3.8 million respectively.

Advertising revenue for the Regionals division fell by 5.7% from £407.2 million
to £383.9 million. Excluding acquisitions, advertising revenue for the Regionals
division fell by 8.7% from £403.7 million to £368.5 million. Excluding
acquisitions, by category, Display was down by 5.8%, Recruitment was down by
17.3%, Motors was down by 11.6% and other classified categories were down by
7.5%, while Property increased by 1.4%.

Metros achieved strong advertising growth of £4.0 million (30.3%), driven by an
increase in core advertising revenues and the benefit of an additional two Metro
titles launched in March 2006. Excluding the two new launches, advertising
revenues for Metros increased by 11.4%.

Digital media activities, excluding acquisitions, continued their growth
trajectory with advertising revenue increasing by 22.2%. The four acquisitions
completed in 2005 and the acquisition of Email4Property completed in 2006
achieved advertising revenues of £15.4 million.

Circulation revenue increased by £0.7 million (0.8%). The division continued to
drive circulation revenue through the ongoing policy to increase cover prices on
a 'little and often' basis.

During the year, the division experienced circulation volume declines of 7.7%
for Evening titles, 6.3% for Morning titles, 4.8% for Weekly titles and 8.7% for
Sunday titles.

Other revenue, excluding acquisitions, fell by £1.1 million (2.5%) from £43.9
million to £42.8 million reflecting a fall in leaflets revenues driven by the
difficult advertising marketplace.

The implications of the adverse revenue environment have been partially
mitigated by the targeted cost savings and continued tight cost management in
the face of significant inflationary cost pressures. Excluding acquisitions,
costs have fallen by £8.4 million from £380.6 million to £372.2 million,
contributing to operating profits falling by only £27.2 million, despite revenue
declines of £35.6 million. The declining revenues have impacted operating
margins which, excluding acquisitions, fell by 3.4% to 24.8% and including
acquisitions fell by 3.5% to 24.8%.

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) complemented by a portfolio of digital assets.

The revenue and operating profit of the Group's Nationals division are as
follows:

                                      2006             2005                   %
                                        £m               £m              Change

Revenue                              472.4            499.1              (5.3)%
Operating profit                      80.2             91.2             (12.1)%
Margin                               17.0%            18.3%              (1.3)%

Operating profits for the Nationals division fell by £11.0 million (12.1%) from
£91.2 million to £80.2 million despite revenue declines of £26.7 million from
£499.1 million to £472.4 million.

Revenue declined by 4.8% for the UK Nationals and 7.1% for the Scottish
Nationals. Despite the significant revenue declines, operating margin for the
division only fell by 1.3% from 18.3% to 17.0%, due to continued cost control
and savings.

Circulation revenues for the Nationals division fell by 0.5% reflecting an
increase of 0.5% for the UK Nationals offset by a decline of 4.7% for the
Scottish Nationals. The circulation revenue performance for the Scottish
Nationals reflects the impact of discount vouchering activity for the Monday to
Friday Daily Record in response to a 10p Sun across Scotland for the majority of
2006.

During the year a number of cover price increases were implemented with the
Monday to Friday Daily Mirror increasing by 5 pence in two stages to 40 pence,
the Saturday editions of the Daily Mirror and Daily Record increasing by 5 pence
to 55 pence, the Sunday Mail in Scotland increasing by 20 pence in two stages to
£1.10 and The People increasing by 5 pence to 85 pence.

The six monthly year-on-year change in circulation volumes and the six monthly
market share for our Nationals titles were as follows:

                                  six monthly circulation           six monthly
                                            volume change          market share
                                                        %                     %
Daily Mirror                                       (6.3)%                 18.7%
Sunday Mirror                                      (6.8)%                 15.4%
The People                                        (12.0)%                  8.9%
Daily Record (Scotland only)                       (7.2)%                 34.2%
Sunday Mail (Scotland only)                        (4.8)%                 35.7%

The circulation volume performance of our National titles reflects, unlike many
competitor titles, our policy of not chasing short-term circulation increases
through price-cutting and levels of marketing spend which do not provide a
return on investment.

In a challenging marketplace advertising revenues for the Nationals division
fell by 10.2% with declines of 10.6% for the UK Nationals and 9.1% for the
Scottish Nationals.

The performance reflects the continuation of the difficult advertising
conditions experienced in 2005. Whilst we have seen a marginal improvement in
the rate of decline in advertising revenues in the last quarter of the year with
a particularly buoyant December, the market remains unpredictable.

Scotcareers and other National digital activities have achieved a significant
improvement in performance with combined advertising revenues increasing
three-fold to £1.8 million. The Scotcareers brand has achieved a strong position
in the recruitment market in Scotland and will drive to further improve share in
this marketplace. This has provided a firm base for the launch of Scotwheels in
2006 and Scotthelot during 2007. Other digital activities have also seen a
significant improvement in performance reflecting the benefit of focused
investment to drive incremental revenues to supplement the core circulation and
print advertising revenues.

Other revenue decreased by £7.3 million (15.8%) from £46.3 million to £39.0
million with declines of 15.8% for the UK Nationals and 15.4% for the Scottish
Nationals. The fall in other revenues reflects a reduction in rental income from
surplus office accommodation and a marginal reduction in external contract print
revenues due to the current re-pressing programme.

The tight management of costs contributed to operating costs falling by £15.7
million, partially mitigating the impact of revenues falling by £26.7 million
and therefore limiting the operating profit declines to £11.0 million, with
operating margins falling by 1.3%.

Sports division

The Sports division delivered a robust performance in 2006 despite the impact of
a nationally-distributed daily betting title (The Sportsman) launched into the
marketplace from March 2006 to September 2006. Revenues during the year fell by
2.2% from £50.6 million to £49.5 million and operating profits fell by 12.6%
from £17.4 million to £15.2 million.

Advertising revenues fell by 7.0% from £14.3 million to £13.3 million reflecting
the impact of a general slowdown in advertising markets and consolidation within
the bookmaking and gaming industries.

Circulation revenues fell by £0.8 million reflecting the impact of a fall in
circulation volumes of the Racing Post partially offset by cover price increases
for the Monday to Friday editions.

Other revenues increased by £0.7 million (18.9%) from £3.7 million to £4.4
million.

The impact of additional investment in marketing and product enhancement during
a period when the Sportsman was in the marketplace resulted in operating costs
for the division increasing by £1.1 million, contributing to operating profits
falling by £2.2 million to £15.2 million. Operating margins for the division
fell by 3.7% to 30.7%.

As announced in December 2006, the division is expected to be disposed of during
2007.

Magazines and Exhibitions division

During June and July 2006 the Group disposed of its Magazines and Exhibitions
division through a number of transactions generating gross disposal proceeds of
£42.6 million. The most significant of these transactions was the disposal of
Inside Communications Limited for a consideration of £41.5 million. The
Magazines and Exhibitions division published a number of specialist titles and
operated consumer and trade shows. However it was considered non-core due to the
differing challenges it faced relative to our core portfolio of newspaper and
online assets. Having improved the performance of the division over the past few
years it was appropriate to realise value at this stage.

Prior to disposal, the division generated revenue of £20.1 million and operating
profit of £5.8 million.

Central costs

During the year central costs increased by £0.2 million from £15.9 million to
£16.1 million reflecting the costs associated with the Business Review
substantially mitigated through cost savings.

Acquisitions

During the year, the Group completed the acquisition of Email4Property Limited
for a total consideration of £4.5 million. Excluding the traditional recruitment
consultancy business acquired in 2005 (as part of hotgroup plc) and disposed in
2006, acquisitions completed in 2005 and 2006, achieved revenues of £15.4
million (2005: £3.5 million) and operating profit before amortisation of £3.8
million (2005: £1.1 million).

Disposals

During the year the Group disposed of its Magazines and Exhibition division
through a number of transactions generating gross disposal proceeds of £42.6
million and its traditional recruitment consultancy business for a consideration
of £11.2 million. Further details are provided in note 15 on page 21. The
disposed businesses achieved revenues of £41.0 million (2005: £38.4 million) and
operating profit before amortisation of £6.6 million (2005: £6.9 million) up to
the date of disposal.

Cash flow and net debt

Net cash from operating activities decreased by £51.5 million to £225.3 million,
reflecting the reduced operating profit. Net debt fell by £51.6 million from
£492.5 million to £440.9 million. The reduction in debt reflects the benefit of
the net cash proceeds from disposals of £47.7 million and is after paying
dividends of £63.7 million and net capital expenditure of £72.8 million.

Capital expenditure in the year was £72.8 million net of disposal proceeds
(2005: £37.0 million) against a depreciation charge of £39.8 million (2005:
£40.1 million). The Group is still on target for capital expenditure of £180.0
million over the three years to 2007 with forecast spend for 2007 of an
estimated £65 million. All capital expenditure is forecast to be financed from
operating cash flows.

At 31 December 2006 committed facilities of £728.2 million (2005: £730.7
million) were available to the Group, of which £259.5 million (2005: £219.5
million) was available for draw down. 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 £16.0 million and
£0.7 million of acquisition loan notes. No new financing facilities were
procured during the year and no debt facilities were repaid other than in
accordance with their normal maturity date.



Consolidated income statement
for the 52 weeks ended 31 December 2006 (52 weeks ended 1 January 2006)
------------------------------------------------------------------------------------------
                                                                Notes      2006       2005
                                                                             £m         £m
------------------------------------------------------------------------------------------
Continuing operations
Revenue                                                             2   1,053.0    1,089.3
Cost of sales                                                            (528.2)    (518.8)
------------------------------------------------------------------------------------------
Gross profit                                                              524.8      570.5

Distribution costs                                                       (114.8)    (125.4)
Administrative expenses:
  Non recurring
    Impairment of intangible assets                                 3    (250.0)         -
    Other                                                           3       2.0       (2.6)
  Amortisation of intangible assets                                       (10.6)      (3.3)
  Other                                                                  (199.3)    (201.7)
Share of results of associates                                              1.3        0.8
------------------------------------------------------------------------------------------
Operating (loss)/profit                                             2     (46.6)     238.3
IAS 19 finance credit                                               4       9.9        1.7
IAS 39 impact                                                       4      (4.9)      (6.6)
Other finance costs                                                 4     (31.5)     (31.0)
------------------------------------------------------------------------------------------
(Loss)/profit before tax                                                  (73.1)     202.4
Tax credit/(charge)                                                 5      19.9      (60.3)
------------------------------------------------------------------------------------------
(Loss)/profit for the period from continuing operations                   (53.2)     142.1
Discontinued operations
Profit for the period from discontinued operations                  6       4.0        4.8
Profit on sale of discontinued operations                          15      37.7          -
------------------------------------------------------------------------------------------
(Loss)/profit for the period attributable to equity
holders of the parent                                                     (11.5)     146.9
------------------------------------------------------------------------------------------

Earnings per share (pence)                                                Pence      Pence

Adjusted earning per share* - basic                                 8      43.6       51.3
Adjusted earnings per share* - diluted                              8      43.5       51.0

(Loss)/earnings per share - continuing operations - basic           8     (18.3)      48.7
(Loss)/earnings per share - continuing operations - diluted         8     (18.3)      48.5

(Loss)/earnings per share - total operations - basic                8      (4.0)      50.3
(Loss)/earnings per share - total operations - diluted              8      (4.0)      50.1
------------------------------------------------------------------------------------------

* Adjusted earnings exclude disposed businesses, non recurring items (including
a £250 million impairment of Regional newspaper titles), reduction in charge for
share-based payments relating to 2004 and 2005, the amortisation of intangible
assets and the impact of IAS 39. A reconciliation between the adjusted and the
statutory results is provided in note 16 on page 21.

Consolidated statement of recognised income and expense
for the 52 weeks ended 31 December 2006 (52 weeks ended 1 January 2006)

                                                                           2006       2005
                                                                             £m         £m

Actuarial gains/(losses) on defined benefit pension schemes 
taken to equity                                                            62.7       (2.4)
Tax on actuarial gains/(losses) on defined benefit pension
schemes taken to equity                                                   (18.8)       0.7
Share of pension scheme actuarial gains and currency gains
recognised in equity by associates                                          1.3          -
Gain on revaluation of available-for-sale financial assets taken to equity    -        0.3
Tax on revaluation of available-for-sale financial assets taken to equity     -       (0.1)
------------------------------------------------------------------------------------------
Net income/(expense) recognised directly in equity                         45.2       (1.5)
------------------------------------------------------------------------------------------
Transferred to profit or loss on sale of available-for-sale 
financial assets                                                              -       (2.7)
Tax on items transferred from equity                                          -        0.8
------------------------------------------------------------------------------------------
Transfers from equity to the income statement                                 -       (1.9)
-------------------------------------------------------------------------------------------
(Loss)/profit for the period                                              (11.5)     146.9
------------------------------------------------------------------------------------------
Total recognised income and expense for the period attributable                    
to equity holders of the parent                                            33.7      143.5
------------------------------------------------------------------------------------------

Consolidated balance sheet
at 31 December 2006 (1 January 2006)
                           
                                                            Notes          2006       2005
                                                                             £m         £m
------------------------------------------------------------------------------------------
Non-current assets
Goodwill                                                                   61.1       72.8
Other intangible assets                                                 1,357.3    1,616.1
Property, plant and equipment                                             420.5      387.3
Investment in associates                                                   10.2        8.6
Deferred tax assets                                                        74.3       97.9
------------------------------------------------------------------------------------------
                                                                        1,923.4    2,182.7
------------------------------------------------------------------------------------------
Current assets
Inventories                                                                 7.0        7.2
Available-for-sale financial assets                                           -        0.5
Trade and other receivables                                               134.9      150.9
Cash and cash equivalents                                                  32.8       33.2
------------------------------------------------------------------------------------------
                                                                          174.7      191.8
------------------------------------------------------------------------------------------
Total assets                                                            2,098.1    2,374.5
------------------------------------------------------------------------------------------
Non-current liabilities
Borrowings                                                     11        (346.3)    (392.0)
Obligations under finance leases                               11         (13.2)     (15.6)
Retirement benefit obligation                                  13        (213.0)    (305.6)
Deferred tax liabilities                                                 (482.4)    (547.2)
Provisions                                                                 (8.9)     (12.2)
Derivative financial instruments                                9        (107.4)     (56.6)
------------------------------------------------------------------------------------------
                                                                       (1,171.2)  (1,329.2)
------------------------------------------------------------------------------------------
Current liabilities
Borrowings                                                     11          (4.0)     (58.7)
Trade and other payables                                                 (163.3)    (183.0)
Current tax liabilities                                                   (31.1)     (37.5)
Obligations under finance leases                               11          (2.8)      (2.8)
Provisions                                                                 (2.5)      (9.6)
------------------------------------------------------------------------------------------
                                                                         (203.7)    (291.6)
------------------------------------------------------------------------------------------
Total liabilities                                                      (1,374.9)  (1,620.8)
------------------------------------------------------------------------------------------
Net assets                                                                723.2      753.7
------------------------------------------------------------------------------------------
Equity
Share capital                                                             (29.3)     (29.3)
Share premium account                                                  (1,120.0)  (1,118.9)
Revaluation reserve                                                        (4.9)      (4.9)
Capital redemption reserve                                                 (0.8)      (0.8)
Retained earnings and other reserves                                      431.8      400.2
------------------------------------------------------------------------------------------
Equity attributable to equity holders of the parent                      (723.2)    (753.7)
------------------------------------------------------------------------------------------
Total equity                                                             (723.2)    (753.7)
------------------------------------------------------------------------------------------

Consolidated cash flow statement
for the 52 weeks ended 31 December 2006 (52 weeks ended 1 January 2006)

                                                            Notes      2006           2005
                                                                         £m             £m
------------------------------------------------------------------------------------------
Cash flows from operating activities
Cash generated from operations                                 10     225.3          276.8
Income tax paid                                                       (47.5)         (55.5)
------------------------------------------------------------------------------------------
Net cash inflow from operating activities                             177.8          221.3
------------------------------------------------------------------------------------------
Investing activities
Interest received                                                       0.3            1.2
Dividends received from associated undertakings                         0.5            0.6
Proceeds on disposal of available-for-sale financial assets             2.1            2.9
Proceeds on disposal of land                                              -            2.9
Proceeds on disposal of subsidiary undertakings                15      47.7              -
Proceeds on disposal of property, plant and equipment                   2.1            4.0
Purchases of property, plant and equipment                            (75.0)         (41.0)
Acquisition of subsidiary undertaking                          14      (4.2)         (86.5)
------------------------------------------------------------------------------------------
Net cash used in investing activities                                 (26.5)        (115.9)
------------------------------------------------------------------------------------------
Financing activities
Dividends paid                                                        (63.7)         (60.2)
Interest paid on borrowings                                           (31.0)         (33.9)
Interest paid on finance leases                                        (1.0)          (1.2)
Increase in borrowings                                                    -           45.0
Repayment of borrowings                                        11     (40.1)         (18.1)
Repayment of obligations under finance leases                  11      (2.4)          (1.8)
Purchase of shares under share buy-back programme                         -          (52.7)
Issue of ordinary share capital                                         1.1           17.6
Purchase of own shares                                                    -           (5.7)
Decrease in bank overdrafts                                    11     (14.6)          (4.6)
------------------------------------------------------------------------------------------
Net cash used in financing activities                                (151.7)        (115.6)
------------------------------------------------------------------------------------------
Net decrease in cash and cash equivalents                      11      (0.4)         (10.2)
Cash and cash equivalents at the beginning of period           11      33.2           43.4
------------------------------------------------------------------------------------------
Cash and cash equivalents at the end of period                 11      32.8           33.2
------------------------------------------------------------------------------------------


Notes to the 2006 preliminary statement
for the 52 weeks ended 31 December 2006 (52 weeks ended 1 January 2006)


1. Basis of preparation

Following European regulation issued in 2002, the Group now presents its
consolidated financial statements in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union and which have been
prepared using accounting policies consistant with those in the Group's last
published financial statements for the period ended 1 January 2006.

The information contained in this preliminary announcement for the 52 weeks
ended 31 December 2006 does not constitute statutory accounts within the meaning
of section 240 of the Companies Act 1985 but has been extracted from those
accounts. The statutory financial statements for the 52 weeks ended 1 January
2006 have been filed with the Registrar of Companies and those for the 52 weeks
ended 31 December 2006 will be filed following the Group's Annual General
Meeting. The auditors' report on those accounts was unqualified and did not
contain statements under section 237 (2) or 237(3) of the Companies Act 1985.

Whilst the financial information included in this preliminary announcement has
been computed in accordance with IFRS, this announcement does not itself contain
sufficient information to comply with IFRS. The Group expects to publish its
full IFRS financial statements for the 52 weeks ended 31 December 2006 on 22
March 2007.


2. Business and geographical segments

For management purposes, the Group is currently organised into the following
divisions: Regionals, Nationals, Sports and Central costs. These divisions are
the basis on which the Group reports its primary segment information. In 2005
the Group operated a Magazines and Exhibitions division which it disposed of
during 2006. Since its disposal, the Magazines and Exhibitions division is
disclosed as discontinued operations. The secondary reporting segment is a
geographical destination analysis of revenue.

The Regionals division publishes a large portfolio of newspaper and on-line
brands across the UK. The Nationals 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 on-line activities. Central costs include costs not attributed to
specific divisions. The revenues and costs of each segment are clearly
identifiable and allocated according to where they arise. Segment information
for these principal activities is presented below.

Primary segments - business segment analysis

                                                                                      Continuing  Discontinued
                                   Regionals   Nationals   Sports   Central costs     operations    operations
                                        2006        2006     2006            2006           2006          2006
                                          £m          £m       £m              £m             £m            £m
Revenue
Segment sales                          535.9       486.4     49.5               -        1,071.8          20.1
Inter-segment sales                     (4.8)      (14.0)       -               -          (18.8)            -
--------------------------------------------------------------------------------------------------------------
Total revenue                          531.1       472.4     49.5               -        1,053.0          20.1
--------------------------------------------------------------------------------------------------------------

Result
Segment result                         118.1        80.9     15.8           (14.7)         200.1           5.8
---------------------------------------------------------------------------------
Non recurring items                                                                       (248.0)         37.7
Share of results of associates                                                               1.3             -
                                                                                 -----------------------------
Operating  (loss)/profit                                                                   (46.6)         43.5
IAS 19 finance credit                                                                        9.9             -
IAS 39 impact                                                                               (4.9)            -
Other finance costs                                                                        (31.5)            -
                                                                                 -----------------------------
(Loss)/profit before tax                                                                   (73.1)         43.5
Tax                                                                                         19.9          (1.8)
--------------------------------------------------------------------------------------------------------------
(Loss)/profit for the period                                                               (53.2)         41.7
--------------------------------------------------------------------------------------------------------------

                                                                                      Continuing  Discontinued
                                   Regionals   Nationals   Sports   Central costs     operations    operations
                                        2005        2005     2005            2005           2005          2005
                                          £m          £m       £m              £m             £m            £m
Revenue
Segment sales                          542.3       510.7     50.6               -        1,103.6          32.7
Inter-segment sales                     (2.7)      (11.6)       -               -          (14.3)            -
--------------------------------------------------------------------------------------------------------------
Total revenue                          539.6       499.1     50.6               -        1,089.3          32.7
--------------------------------------------------------------------------------------------------------------

Result
Segment result                         147.4        91.2     17.4           (15.9)         240.1           7.2
---------------------------------------------------------------------------------
Non recurring items                                                                         (2.6)         (0.1)
Share of results of associates                                                               0.8             -
                                                                                 -----------------------------
Operating profit                                                                           238.3           7.1
IAS 19 finance credit                                                                        1.7             -
IAS 39 impact                                                                               (6.6)            -
Other finance costs                                                                        (31.0)            -
                                                                                 -----------------------------
Profit before tax                                                                          202.4           7.1
Tax                                                                                        (60.3)         (2.3)
--------------------------------------------------------------------------------------------------------------
Profit for the period                                                                      142.1           4.8
--------------------------------------------------------------------------------------------------------------

Secondary segments - geographical and source segment analysis
                                                                                            2006          2005
Revenue analysis                                                                              £m            £m
--------------------------------------------------------------------------------------------------------------

United Kingdom and Republic of Ireland                                                   1,046.5       1,083.7
Continental Europe                                                                           6.0           5.5
Rest of world                                                                                0.5           0.1
--------------------------------------------------------------------------------------------------------------
Total - continuing operations                                                            1,053.0       1,089.3
--------------------------------------------------------------------------------------------------------------

The source of all revenue relating to discontinued operations was in the United
Kingdom and Republic of Ireland


3. Non recurring items
                                                                                            2006          2005
                                                                                              £m            £m
--------------------------------------------------------------------------------------------------------------
Non recurring items
Impairment of intangible assets (a)                                                       (250.0)            -
Restructuring costs (b)                                                                     (2.4)         (7.8)
Profit on disposal of land and buildings (c)                                                 0.8           3.5
Loss on disposal of subsidiary (d)                                                          (1.8)            -
Release of accruals for which no further costs are expected (e)                              3.8             -
Severance costs following acquisition of the hotgroup plc (f)                                  -          (1.0)
Profit on disposal of available-for-sale financial assets (g)                                1.6           2.7
--------------------------------------------------------------------------------------------------------------
Non recurring items                                                                       (248.0)         (2.6)
--------------------------------------------------------------------------------------------------------------
(a) An impairment review of the carrying value of the Group's intangible
    assets undertaken in accordance with IAS 36 Impairment of Assets indicated 
    that an impairment charge was required. The impairment charge reduces the 
    carrying value of the regional newspaper titles by £250.0 million (2005: 
    £nil) before tax. Net of tax, the impairment reduces the carrying value of 
    the regional newspaper titles by £175.0 million (2005: £nil).

(b) Restructuring costs of £2.4 million (2005: £7.8 million) have been incurred 
    in delivery of cost reduction measures.

(c) The Group disposed of surplus land and buildings realising a profit on
    disposal of £0.8 million (2005: £3.5 million).

(d) In 2006 the Group disposed of the hotgroup traditional recruitment
    consultancy business realising a loss on disposal of £1.8 million.

(e) In 2006 the Group released accruals of £3.8 million for which no further
    costs are expected.

(f) In 2005 severance costs of £1.0 million were incurred following the
    acquisition of hotgroup plc.

(g) In 2006 the Group disposed of an asset realising a profit on disposal of
    £1.6 million and in 2005 the Group disposed of its shareholding in Scottish
    Radio Holdings plc realising a profit on disposal of £2.7 million.


4. Finance costs

                                                               IAS 19 (a)    IAS 39 (b)    Other (c)     Total
2006                                                                  £m            £m           £m         £m
--------------------------------------------------------------------------------------------------------------
Income                                                              81.6             -          0.3       81.9
Expense                                                            (71.7)         (4.9)       (31.8)    (108.4)
--------------------------------------------------------------------------------------------------------------
Total finance income/(cost)                                          9.9          (4.9)       (31.5)     (26.5)
--------------------------------------------------------------------------------------------------------------

2005
--------------------------------------------------------------------------------------------------------------
Income                                                              72.9             -          1.2       74.1
Expense                                                            (71.2)         (6.6)       (32.2)    (110.0)
--------------------------------------------------------------------------------------------------------------
Total finance income/(cost)                                          1.7          (6.6)       (31.0)     (35.9)
--------------------------------------------------------------------------------------------------------------

(a) 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.
(b) Impact of fair value, exchange rate and amortisation adjustments on
    borrowings and associated financial instruments accounted for under IAS 39.
(c) Other finance costs in 2006 include interest on obligations under finance 
    leases of £1.0 million (2005: £1.2million)


5. Tax
                                                                                                2006      2005
                                                                                                  £m        £m
--------------------------------------------------------------------------------------------------------------
Current tax
Corporation tax charge for the period                                                          (39.8)    (54.6)
Prior period adjustment                                                                         (0.9)     (2.0)
--------------------------------------------------------------------------------------------------------------
Current tax charge                                                                             (40.7)    (56.6)
--------------------------------------------------------------------------------------------------------------
Deferred tax
Tax credit/(charge) for the period                                                              60.8      (5.2)
Prior period adjustment                                                                         (0.2)      1.5
--------------------------------------------------------------------------------------------------------------
Deferred tax credit/ (charge)                                                                   60.6      (3.7)
--------------------------------------------------------------------------------------------------------------
Total tax credit/(charge) - continuing operations                                               19.9     (60.3)
--------------------------------------------------------------------------------------------------------------
Tax charge on discontinued operations                                                             £m        £m
Tax on profit from operations                                                                   (1.8)     (2.2)
Tax on sale profit                                                                                 -         -
Deferred tax charge                                                                                -      (0.1)
--------------------------------------------------------------------------------------------------------------
Total tax charge - discontinued operations                                                      (1.8)     (2.3)
--------------------------------------------------------------------------------------------------------------

Reconciliation of tax charge - continuing operations                                            2006      2005
                                                                                                   %         %
Standard rate of corporation tax                                                                30.0      30.0
Tax effect of items that are not deductible in determining taxable profit/(loss)                (3.5)      0.1
Tax effect of items that are not taxable in determining taxable (profit)/loss                    0.2         -
Tax effect of utilisation of tax losses not previously recognised in determining taxable loss    0.8         -
Tax effect of share of results of associate                                                      0.5      (0.3)
Tax effect of rolled over and revaluation gains                                                  0.7      (0.2)
Prior period adjustment                                                                         (1.5)      0.2
--------------------------------------------------------------------------------------------------------------
Total effective rate of tax                                                                     27.2      29.8
--------------------------------------------------------------------------------------------------------------

The standard rate of corporation tax is the UK prevailing rate of 30% (2005:
30%).

The deferred tax credit for the period includes an amount of £75.0 million
(2005:£nil million) in relation to the impairment charge with respect to
intangible assets as detailed in note 3. In addition to the amount charged to
the income statement, deferred tax of £18.8 million relating to the actuarial
gains on the defined benefit pension schemes has been debited directly to equity
(2005: credit of £0.7 million).


6. Discontinued operations

On 2 July 2006 the Group discontinued its Magazines and Exhibitions operations.
The results of the discontinued operations which have been included in the
consolidated income statement, were as follows:
              
                                                                                           2006           2005
                                                                                             £m             £m
--------------------------------------------------------------------------------------------------------------
Revenue                                                                                    20.1           32.7
Cost of sales                                                                             (11.5)         (20.0)
--------------------------------------------------------------------------------------------------------------
Gross profit                                                                                8.6           12.7
Distribution costs                                                                         (0.5)          (1.1)
Administrative expenses:
Non recurring                                                                                 -           (0.1)
Other                                                                                      (2.3)          (4.4)
--------------------------------------------------------------------------------------------------------------
Operating profit                                                                            5.8            7.1
Tax                                                                                        (1.8)          (2.3)
--------------------------------------------------------------------------------------------------------------
Profit for the period                                                                       4.0            4.8
--------------------------------------------------------------------------------------------------------------


7. Dividends
                                                                                              2006        2005
                                                                                                £m          £m
--------------------------------------------------------------------------------------------------------------
Amounts recognised as distributions to equity holders in the period:
Dividend paid (a)                                                                             63.7        60.2
--------------------------------------------------------------------------------------------------------------

                                                                                             Pence       Pence
--------------------------------------------------------------------------------------------------------------
Dividend paid per share                                                                       21.9        20.7
--------------------------------------------------------------------------------------------------------------

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

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

                                                                                             Pence       Pence
--------------------------------------------------------------------------------------------------------------
Dividend proposed per share                                                                   15.5        15.5
--------------------------------------------------------------------------------------------------------------

(a) The amount of £63.7 million is in respect of the final dividend for the 52
    weeks ended 1 January 2006 of 15.5 pence per share and the interim dividend 
    for the 52 weeks ended 31 December 2006 of 6.4 pence per share; 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.

(b) The amount of £45.4 million for 2006 represents the proposed final dividend
    for the 52 weeks ended 31 December 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 £45.4 million for 
    2005 represents the proposed final dividend for the 52 weeks ended 1 January 
    2006.


8. Earnings per share

                                                                                                 2006     2005
Earnings                                                                                           £m       £m
--------------------------------------------------------------------------------------------------------------

Profit after tax before adjusted items*                                                         127.1    149.7
Adjusted items*:
Non recurring items (after tax)                                                                (173.0)    (0.6)
Disposed businesses profit/(loss) (after tax)                                                     0.6     (0.1)
Reduction in charge for share-based payments relating to 2004 and 2005 (after tax)                2.9        -
Amortisation of intangibles (after tax)                                                          (7.4)    (2.3)
IAS 39 impact (after tax)                                                                        (3.4)    (4.6)
--------------------------------------------------------------------------------------------------------------
Basic EPS earnings (loss)/profit - continuing operations                                        (53.2)   142.1
Discontinued operations (after tax)                                                              41.7      4.8
--------------------------------------------------------------------------------------------------------------
Basic EPS earnings (loss)/profit attributable to equity holders                                 (11.5)   146.9
--------------------------------------------------------------------------------------------------------------

* Adjusted earnings exclude disposed businesses (Magazines and Exhibitions
division and traditional recruitment consultancy business), non recurring items
(including a £250 million impairment of Regional newspaper titles), reduction in
the charge for share-based payments relating to 2004 and 2005, the amortisation
of intangible assets and the impact of IAS 39. A reconciliation between the
adjusted and the statutory numbers is provided in note 16 on page 21.

Number of shares                                                                             ('000)     ('000)
--------------------------------------------------------------------------------------------------------------

Weighted average number of ordinary shares for the purpose of basic EPS                     291,207    291,900
Effect of dilutive potential ordinary shares - share options                                    711      1,274
--------------------------------------------------------------------------------------------------------------
Weighted average number of ordinary shares for the purpose of diluted EPS                   291,918    293,174
--------------------------------------------------------------------------------------------------------------

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
--------------------------------------------------------------------------------------------------------------
Adjusted earnings per share* - basic                                                            43.6      51.3
--------------------------------------------------------------------------------------------------------------
Adjusted earnings per share* - diluted                                                          43.5      51.0
--------------------------------------------------------------------------------------------------------------
                           
(Loss)/earnings per share - continuing operations - basic                                      (18.3)     48.7
--------------------------------------------------------------------------------------------------------------
(Loss)/earnings per share - continuing operations - diluted                                    (18.3)     48.5
--------------------------------------------------------------------------------------------------------------

Earnings per share - discontinued operations - basic                                            14.3       1.6
--------------------------------------------------------------------------------------------------------------
Earnings per share - discontinued operations - diluted                                          14.3       1.6
--------------------------------------------------------------------------------------------------------------

The earnings per share for each category of non recurring                                      
items disclosed in note 3 is as follows:                                                       Pence     Pence
--------------------------------------------------------------------------------------------------------------
Impairment of intangibles                                                                      (60.1)        -
Restructuring costs                                                                             (0.6)     (1.8)
Profit on disposal of land and buildings                                                         0.2       1.2
Loss on disposal of subsidiary                                                                  (0.5)        -
Release of accruals for which no further costs are expected                                      1.2         -
Severance costs following acquisition of the hotgroup plc                                          -      (0.3)
Profit on disposal of available-for-sale financial assets                                        0.4       0.7
--------------------------------------------------------------------------------------------------------------
Earnings per share - non recurring items                                                       (59.4)     (0.2)
--------------------------------------------------------------------------------------------------------------


9. Derivative financial instruments
                                                                                              2006        2005
                                                                                               £m          £m
Cross-currency interest rate swaps - fair value
Opening balance                                                                              (56.6)      (87.2)
Movement in fair value including exchange movements                                          (50.8)       30.6
--------------------------------------------------------------------------------------------------------------
Closing balance                                                                             (107.4)      (56.6)
--------------------------------------------------------------------------------------------------------------
Current                                                                                          -           -
Non-current                                                                                 (107.4)      (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$ fixed rates to sterling floating rates.
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 income in the year.


10. Notes to the cash flow statement

                                                                                                2006      2005
                                                                                                  £m        £m
--------------------------------------------------------------------------------------------------------------
Operating (loss)/profit from continuing operations                                             (46.6)    238.3
Operating profit from discontinued operations                                                    5.8       7.1
Depreciation of property, plant and equipment                                                   39.8      40.1
Amortisation of other intangible assets                                                         10.6       3.3
Share of result of associate                                                                    (1.3)     (0.8)
Impairment of other intangible assets                                                          250.0         -
Charge for share-based payments in respect of 2006                                               2.4       4.4
Credit for share-based payments in respect of 2004 and 2005                                     (4.2)        -
Profit on disposal of land and buildings                                                        (0.8)     (3.5)
Profit on disposal of available-for-sale financial assets                                       (1.6)     (2.7)
Loss on disposal of subsidiary undertakings                                                      1.8         -
Adjustment for IAS 19 pension funding                                                          (19.3)    (17.7)
--------------------------------------------------------------------------------------------------------------
Operating cash flows before movements in working capital                                       236.6     268.5
Decrease/(increase) in inventories                                                               0.2      (0.5)
Decrease in receivables                                                                          6.7      16.6
Decrease in payables                                                                           (18.2)     (7.8)
--------------------------------------------------------------------------------------------------------------
Cash generated from operations                                                                 225.3     276.8
--------------------------------------------------------------------------------------------------------------
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 the balance
sheet.


11. Net debt
   
                                                                                            Other 
                                                 1 January   Cash     IAS39*    Loans    non-cash  31 December
                                                      2006   flow     impact   repaid     charges         2006
Net Debt                                                £m     £m         £m       £m          £m           £m
--------------------------------------------------------------------------------------------------------------
Non-current
Loan notes                                          (392.0)     -       45.9        -        (0.2)      (346.3)
Derivative financial instruments                     (56.6)     -      (50.8)       -           -       (107.4)
Obligations under finance leases                     (15.6)     -          -      2.4                    (13.2)
--------------------------------------------------------------------------------------------------------------
                                                    (464.2)     -       (4.9)     2.4        (0.2)      (466.9)
--------------------------------------------------------------------------------------------------------------
Current
Bank overdrafts                                      (17.9)  14.6          -        -           -         (3.3)
Short-term loans                                     (40.0)     -          -     40.0           -            -
Loan notes                                            (0.8)     -          -      0.1           -         (0.7)
Obligations under finance leases                      (2.8)     -          -        -           -         (2.8)
--------------------------------------------------------------------------------------------------------------
                                                     (61.5)  14.6          -     40.1           -         (6.8)
--------------------------------------------------------------------------------------------------------------
Cash at bank and in hand                              33.2   (0.4)         -        -           -         32.8
--------------------------------------------------------------------------------------------------------------
Net debt                                            (492.5)  14.2       (4.9)    42.5        (0.2)      (440.9)
--------------------------------------------------------------------------------------------------------------

* 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 in accordance with 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.


12. Share-based payments

During the period 757,971 (2005: 1,002,919) share awards were granted to senior
managers on a discretionary basis under the Long Term Incentive Plan approved in
2004. The exercise price of the granted awards is £1 for each block of awards
granted. The awards vest after three years, subject to the continued employment
of the participant and satisfaction of certain performance conditions.

During the period 206,369 (2005: nil) share awards were granted to senior


managers on a discretionary basis under the Deferred Share Award Plan approved
in 2006. The exercise price of the granted awards is £1 for each block of awards
granted. The awards vest after three years, subject to continued employment of
the participant.

Shares held for share-based payments are included in retained earnings and other
reserves at £11.9 million (1 January 2006: £11.9 million).


13. Retirement benefit schemes

Defined benefit schemes

The Group operates ten final salary pension 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.

During 2002, the decision was taken to close entry to the 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 at 29 December
2006, 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:

                                                                                           2006           2005
Principal annual actuarial assumptions used :                                                 %              %
--------------------------------------------------------------------------------------------------------------
Discount rate                                                                              5.10           4.75
Inflation rate                                                                             3.00           2.80
Expected return on scheme assets                                                      4.40-7.30      4.00-7.30
Expected rate of salary increases                                                          4.00           4.10
Pension increases: 
Pre 6 April 1997 pensions                                                             3.00-5.00      2.80-5.00
Post 6 April 1997 pensions                                                            3.00-3.50      2.80-3.30

Actuarial value of scheme liabilities                                                  £1,511.0m      £1,535.5m
Actual return on scheme assets                                                            £97.1m        £179.7m


Post-retirement mortality tables and   Future life expectancy (years) for    Future life expectancy (years) at  
future life expectancies at age 65           a pensioner currently        age 65 for a non-pensioner currently
                                                    aged 65                                     aged 55
                                                  Male           Female                     Male        Female
                                             16.9-20.4        19.9-23.5                19.4-21.0     22.3-24.0
Average                                           18.6             21.3                     19.6          22.4

The amount included in the balance sheet arising from the Group's obligations in
respect of its defined benefit retirement scheme is as follows:

Defined benefit schemes                                                                    2006           2005
                                                                                             £m             £m
--------------------------------------------------------------------------------------------------------------
Net scheme liabilities:
Present value of funded obligations                                                    (1,511.0)      (1,535.5)
Fair value of schemes' assets                                                           1,322.9        1,233.0
Effect of asset ceiling                                                                   (24.9)          (3.1)
--------------------------------------------------------------------------------------------------------------
Schemes' deficits                                                                        (213.0)        (305.6)
--------------------------------------------------------------------------------------------------------------

This amount is presented as follows:

Current liabilities                                                                           -              -
Non-current liabilities                                                                  (213.0)        (305.6)
--------------------------------------------------------------------------------------------------------------
                                                                                         (213.0)        (305.6)
--------------------------------------------------------------------------------------------------------------

Amounts recognised in the income statement:                                               2006            2005
                                                                                            £m              £m
Current service cost                                                                     (30.4)          (28.6)
Past service cost                                                                         (0.8)           (1.3)
--------------------------------------------------------------------------------------------------------------
Total included in staff costs                                                            (31.2)          (29.9)
--------------------------------------------------------------------------------------------------------------

Expected return on scheme assets                                                          81.6            72.9
Interest cost on pension schemes' liabilities                                            (71.7)          (71.2)
--------------------------------------------------------------------------------------------------------------
Net finance credit                                                                         9.9             1.7
--------------------------------------------------------------------------------------------------------------
Total included in the income statement                                                   (21.3)          (28.2)
--------------------------------------------------------------------------------------------------------------

Movement in deficits during the period:
Opening deficits                                                                        (305.6)         (321.9)
Contributions                                                                             51.2            46.9
Total charge to income statement                                                         (21.3)          (28.2)
Actuarial gains                                                                           84.5             0.7
Effect of asset ceiling                                                                  (21.8)           (3.1)
--------------------------------------------------------------------------------------------------------------
Closing deficits                                                                        (213.0)         (305.6)
--------------------------------------------------------------------------------------------------------------
Movement not recognised in income statement:
Actuarial gains                                                                           84.5             0.7
Effect of asset ceiling                                                                  (21.8)           (3.1)
--------------------------------------------------------------------------------------------------------------
Total included in statement of recognised income and expense                                                     
(before tax)                                                                              62.7            (2.4)
--------------------------------------------------------------------------------------------------------------

Defined contribution schemes
                                                                                          2006            2005
                                                                                            £m              £m
Amounts recognised in the income statement:
Current service cost                                                                       1.0             0.8
--------------------------------------------------------------------------------------------------------------


14. Acquisition of subsidiary undertakings

On the 9 May 2006, the Group acquired 100% of Email4Property Limited for a total
cash consideration of £4.5 million (£4.2 million net of cash and cash
equivalents acquired of £0.3 million). The results of the acquisition have been
included in continuing operations.


15. Disposal of subsidiary undertakings

During June and July 2006 the Group disposed of its Magazines and Exhibitions
division and on 11 August 2006 the Group disposed of its traditional recruitment
consultancy business acquired as part of the acquisition of hotgroup plc. The
net assets of the business at the date of disposal were as follows:

                                                                 Magazines and      hotgroup             
                                                                   Exhibitions    traditional            Total
                                                                            £m             £m               £m
--------------------------------------------------------------------------------------------------------------
Goodwill                                                                   1.6            4.1              5.7
Other intangible assets                                                      -            6.9              6.9
Property, plant and equipment                                              0.2            0.3              0.5
Trade and other receivables                                                6.3            4.5             10.8
Cash and cash equivalents                                                  1.0            0.5              1.5
Long-term provisions                                                         -           (2.9)            (2.9)
Trade and other payables                                                  (6.9)          (2.2)            (9.1)
--------------------------------------------------------------------------------------------------------------
                                                                           2.2           11.2             13.4
Profit/(loss) on disposal                                                 37.7           (1.8)            35.9
--------------------------------------------------------------------------------------------------------------
Total consideration                                                       39.9            9.4             49.3
--------------------------------------------------------------------------------------------------------------
Satisfied by:
Cash consideration                                                        41.9           10.8             52.7
Cash disposal costs                                                       (1.7)          (1.8)            (3.5)
--------------------------------------------------------------------------------------------------------------
                                                                          40.2            9.0             49.2
Deferred consideration                                                     0.7            0.4              1.1
Deferred disposal costs                                                   (1.0)             -             (1.0)
--------------------------------------------------------------------------------------------------------------
                                                                          39.9            9.4             49.3
--------------------------------------------------------------------------------------------------------------
Net cash flow arising on disposal:

Cash consideration                                                        40.2            9.0             49.2
Cash disposed                                                             (1.0)          (0.5)            (1.5)
--------------------------------------------------------------------------------------------------------------
                                                                          39.2            8.5             47.7
--------------------------------------------------------------------------------------------------------------

16. Reconciliation of group statutory results to adjusted results (unaudited)

                    Continuing  
                    operations  Non recurring    Disposed   Share based                    IAS 39
                     statutory         items     business      payments Amortisation       Impact     Adjusted
52 weeks ended          result            £m           £m            £m           £m           £m       result
31 December 2006            £m           (b)          (c)            (d)          (e)          (f)          £m
--------------------------------------------------------------------------------------------------------------
Revenue                1,053.0            -        (20.9)             -            -            -      1,032.1
Operating profit         (46.6)       248.0         (0.8)          (4.2)        10.6            -        207.0
(Loss)/ profit           (73.1)       248.0         (0.8)          (4.2)        10.6          4.9        185.4
before tax

Earnings per share
Basic pence              (18.3)(a)     59.4         (0.2)          (1.0)         2.5          1.2         43.6
--------------------------------------------------------------------------------------------------------------

                    Continuing  
                    operations  Non recurring    Disposed   Share based                    IAS 39
                     statutory         items     business      payments Amortisation       Impact     Adjusted
52 weeks ended          result            £m           £m            £m           £m           £m       result
1 January 2006              £m           (b)          (c)            (d)          (e)          (f)          £m
--------------------------------------------------------------------------------------------------------------
Revenue                1,089.3            -         (5.7)             -            -            -      1,083.6
Operating profit         238.3          2.6          0.2              -          3.3            -        244.4
Profit before tax        202.4          2.6          0.2              -          3.3          6.6        215.1

Earnings per share
Basic pence               48.7(a)       0.2            -              -          0.8          1.6         51.3
--------------------------------------------------------------------------------------------------------------

(a) Earnings per share on continuing operations, excluding impact of 
    discontinued operations (Magazines and Exhibitions division).
(b) Details of non recurring items are set out in note 3.
(c) Sale of hotgroup traditional recruitment consultancy business.
(d) Share-based payments charge for 2004 and 2005 has been adjusted to reflect 
    non-market based performance criteria.
(e) Amoritisation of intangible assets.
(f) Impact of fair value, exchange rate, and amortisation adjustments on
    borrowings and associated financial instruments, accounted for under IAS 39.




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