Final Results

GUINNESS PEAT GROUP plc

("GPG" or "the Company")

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2010

CHAIRMAN'S STATEMENT

The 2010 financial year has been an important and challenging one for GPG and its shareholders. The Board has reviewed and addressed key issues concerning the Company's governance and future strategic direction and on 11 February 2011 announced a strategy to realise value. This will be executed in a manner and timeframe which is intended to maximise value for shareholders.

The management team have been able to achieve some strong results from the investment portfolio over the financial year. GPG's net profit attributable to members in the year was £46m compared to a loss of £36m in 2009. Net assets increased by £118m to £1,062m at 31 December 2010, partly as a result of the profit contribution and also partly from foreign exchange gains of £58m recognised in reserves. As a consequence of these factors, the net asset backing per share increased during the year by 12.3% from a capitalisation adjusted 48.64p to 54.63p. The net profit for the year represented a return of 5.0% (2009: (4.1)%) on average shareholders' funds.

Investment highlights

Some of the key investment highlights from the year are set out below:

·; Excellent Coats performance with strong sales recovery year on year in the Industrial business and modest growth in Crafts. Attributable GPG profit of £39m from a £3m loss in 2009. (Coats results announcement is published on the GPG website, www.gpgplc.com)

·; £16m contribution to profit from the disposal of GPG's investment in Maryborough Sugar Factory and a trading contribution from Capral of £2m despite the background of poor market conditions in its sector

·; Increase during the year of £72m in the unrealised surplus of market value to cost in the GPG listed investment portfolio (excluding listed subsidiaries and associates)

·; Good progress in disposal of non-core investments in the year and also in positioning certain investments for disposal in 2011

Strategy to realise value

On 11 February 2011, GPG announced a recommended strategy to realise value. Key elements of the strategy include:

·; GPG to discontinue new investment, although it will contribute capital to existing investments if this is viewed as value enhancing

·; GPG to pursue an orderly value realisation of its investment portfolio

·; As part of the orderly value realisation, GPG's investment portfolio may be reduced to the point where an investment in GPG becomes a pure exposure to Coats. In the interim, GPG will continue to evaluate other alternatives for realising value for Coats

·; Cash proceeds from the orderly realisation of investments to be used to return capital to shareholders as expeditiously as possible, having regard to the actual and contingent liabilities of the GPG group ("Group")

·; Initial capital return to shareholders of at least £75m (NZ$158m / A$120m) subject to shareholder and other approvals (see below)

·; GPG has commenced a search to seek to appoint a senior executive to implement the orderly value realisation strategy

The Board will work closely with management to implement the strategy and will continue to inform shareholders of any material developments.

Capital return and dividend

As announced on 11 February 2011, GPG intends to make a capital return to shareholders of at least £75m (NZ$158m / A$120m). The capital return is expected to be implemented via a Scheme of Arrangement. Under the Scheme of Arrangement, each GPG shareholder will receive a cash payment in return for a cancellation of a proportion of their GPG shareholding. The capital return will be subject to the usual regulatory approvals including from the UK Court, Shareholders and taxation authorities.

GPG intends to send a Scheme Circular to shareholders, in advance of its AGM, subject to receiving prior UK Court approval. Shareholder approval will then be sought at the time of its AGM, which is intended to be held on 8 June 2011 in Auckland, New Zealand. GPG is working towards completion of the capital return by July 2011, subject to all requisite approvals being obtained, and will advise of further details in due course, including the cash payment per share, the number of shares proposed to be cancelled and the treatment of the capital return for tax purposes for shareholders.

No dividend has been declared at the present time, but the Board intends to maintain the standard 1p dividend and the share election scheme will continue to operate in lieu of cash. The Board intends that the dividend will be paid at the same time as the capital return and further details will be included in the communication regarding the capital return.

Simplified Balance Sheet

GPG remains in a strong financial position as shown in the 31 December 2010 Simplified Group Balance Sheet below:

Simplified Income Statement

GPG's financial performance in 2010 is shown below in the Simplified Group Income Statement. GPG's profit before taxation from continuing operations in the year was £73m, compared to £7m in 2009.

AGM

The AGM is intended to be held in Auckland, New Zealand on Wednesday 8 June 2011. Further details of the exact location and timing of the meeting will be provided in the Notice of Meeting which GPG intends to send to shareholders in May 2011.

Summary

The 2010 financial year was both a challenging and important one for GPG shareholders and a lot has been achieved.

The Board believes that the strategy to realise value provides a clear path for seeking the optimisation of value for all shareholders. The Board and management can now dedicate their sole focus to maximising returns on GPG's investments as we implement the orderly value realisation strategy.

Mark Johnson

Chairman

Guinness Peat Group plc

25 February 2011

Enquiry details are:

* Restated to reflect the results of ClearView Wealth Ltd (note 6) and Staveley Inc. as discontinued operations.

** Adjusted for the 2010 Capitalisation Issue.

Guinness Peat Group plc

NOTES TO FINANCIAL INFORMATION

1. The preliminary financial information ("the financial information") set out in this report is based on the Group's unaudited financial statements, which are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union, and complies with the disclosure requirements of the Listing Rules of the UK Financial Services Authority and the Listing Rules of the Australian Securities Exchange. Other than the adoption of IFRS 3 (2008) ("Business Combinations") and IAS 27 (2008) ("Consolidated and Separate Financial Statements"), the accounting policies adopted by the Group have been consistently applied to all periods presented.

2. The financial information set out in this report does not constitute the Group's statutory accounts for the years ended 31 December 2010 and 2009. Other than the restatement of the Consolidated Income Statement to reflect ClearView Wealth Ltd - see note 6 - and Staveley Inc. as discontinued operations the financial information for the year ended 31 December 2009 is derived from the statutory accounts for that year, which have been filed with the Registrar of Companies. The auditors' report on those accounts included an emphasis of matter paragraph to highlight the significant uncertainty in relation to the European Commission competition investigation into alleged market sharing agreements relating to the European haberdashery market. Further details relating to this matter are set out in note 12. The auditors' report did not contain statements under Sections 498(2) or 498(3) of the Companies Act 2006.

Whilst the financial information included in this report has been compiled in accordance with the recognition and measurement principles of applicable IFRS, this report does not itself contain sufficient information to comply with IFRS. GPG will publish full financial statements that comply with IFRS and expects that these will be available to shareholders in March 2011.

The financial information in this report is unaudited. However, as in the prior year the auditors anticipate issuing an unqualified audit opinion which will contain an emphasis of matter paragraph to highlight the significant uncertainty in relation to the European Commission competition investigation into alleged market sharing agreements relating to the European haberdashery market. Further details relating to this matter are set out in note 12.

At the year end the Parent Group had net debt, after taking account of the Capital Notes, totalling £9 million. The Parent Group also has various other actual and contingent liabilities. The Board expects to be able to meet these obligations from existing resources. Further information on the net debt position of the Group is provided in the table at the foot of the Consolidated Statement of Cash Flows.

Giving due consideration to the nature of the Group's business and underlying investments as a whole, including the financial resources available to the Group, the directors consider that the Company and the Group are going concerns and this financial information is prepared on that basis.

3. Group foreign exchange movements - during the year ended 31 December 2010, GPG recognised in operating profit £7 million of net foreign exchange losses which compares with £8 million of net foreign exchange losses in the year ended 31 December 2009. Foreign exchange gains of £58 million (2009: £20 million) were recognised in reserves.

4. Tax on profit from continuing operations

The tax charge for 2010 includes a non-cash tax credit of £14 million (2009: non-cash tax charge of £9 million) in respect of movements in deferred tax assets relating to tax losses. This credit (2009: charge) arises from a similar increase (2009: decrease) in deferred tax liabilities recognised through the unrealised gains reserve. The tax charges for both years also reflect the impact of unrelieved losses in certain subsidiary undertakings.

5. Associated undertakings and joint ventures

The Parent Group's associated undertakings and joint ventures at 31 December were as follows:

ClearView Wealth Ltd ("ClearView"), a former subsidiary undertaking became an associated undertaking on 5 May 2010, as a result of a share placement by that company (see note 6). ClearView, as an associated undertaking, contributed £1 million to the Group result for the year. The carrying value of ClearView at 31 December 2010 amounted to £76 million.

The Maryborough Sugar Factory Ltd ("MSF") was reclassified from an associated undertaking to a fixed asset investment in January 2010, when the Group ceased to have representation on the Board of MSF. Whilst an associated undertaking, MSF's contribution to the result for the year was a profit of £Nil (2009: £Nil).

Other significant contributions to the Group's result for the year from Parent Group associated undertakings and joint ventures were:

Other contributions to the Group's result for the year from associated undertakings and joint ventures, held by operating subsidiaries, include a CIC Australia joint venture £7 million profit (2009: £7 million loss). The CIC Australia joint venture profit for the year includes an impairment charge of £Nil (2009: £12 million).

6. Disposal of subsidiary undertaking

In May 2010 former subsidiary ClearView became an associated undertaking. ClearView has therefore been treated as a discontinued operation in both the 2010 and the 2009 Consolidated Income Statements. No opening balance sheet has been presented for the prior year in these financial statements as it is unchanged from that previously reported.

The impact of the deemed disposal of ClearView was as follows:

7. Other investments - Fixed asset investments within non-current assets are classified under IFRS as available-for-sale investments, and current asset investments within current assets are classified under IFRS as held-for-trading investments.

8. Earnings/(loss) per share - The calculation of basic earnings/(loss) per Ordinary Share from continuing and discontinued operations is based on profit/(loss) for the year attributable to equity shareholders of the parent and the weighted average number of 1,806,847,546 Ordinary Shares in issue during the year.

The calculation of basic earnings/(loss) per Ordinary Share from continuing operations is based on profit/(loss) for the year from continuing operations attributable to equity shareholders of the parent and the weighted average number of 1,806,847,546 Ordinary Shares in issue during the year.

The comparatives for the year ended 31 December 2009 have been adjusted for the 2010 Capitalisation Issue. No opening balance sheet has been presented for the prior year in these financial statements as it is unchanged from that previously reported.

Calculations of earnings/(loss) per Ordinary Share are based on results to the nearest £'000.

9. The net tangible assets (net assets excluding intangible assets) per share at 31 December 2010 were 48.57p (2009: 42.16p as adjusted for the 2010 Capitalisation Issue).

10. Other changes in the issued share capital during the year ended 31 December 2010 comprise the following:

11. Dividends - An interim dividend of 0.91 pence per share (adjusted to reflect the 2010 Capitalisation Issue) in respect of the year ended 31 December 2009 was paid on 17 May 2010 to GPG shareholders.

12. European Commission Investigation - As noted in previous reports, in September 2007 the European Commission concluded its investigation into European fasteners - the last part outstanding of its general investigation into thread and haberdashery markets which began in 2001. It imposed fines against several producers, including a fine against the Coats plc Group of €110.3 million (equivalent to £94.5 million at 31 December 2010 exchange rates). This fine is in respect of the Commission's allegation of a market sharing agreement in the European haberdashery market. Coats totally rejects this allegation. Coats is vigorously contesting the Commission's decision in an appeal which has been lodged with the European General Court (formerly known as the Court of First Instance) in Luxembourg.

Coats plc has provided the European Commission with payment bonds to cover its exposure to the full extent of the fine. In respect of certain of these obligations, the Company has provided to the bond issuers a counter indemnity for Coats plc's performance.

As stated in previous reports, the Group remains of the view that any anticipated eventual payment of this fine is adequately covered by existing provisions.

13. Environmental costs - The US Environmental Protection Agency has notified Coats that it is a potentially responsible party under the US Superfund for investigation and remediation costs in connection with the Lower Passaic River Study Area in New Jersey, in respect of former facilities which operated in that area prior to 1950. Approximately 70 companies to date have formed a cooperating parties group to fund and conduct a remedial investigation and feasibility study of the area. Coats is in the process of joining this group and $2.5 million (£1.6 million) has been charged in the year in respect of Coats' estimated share of the cost of this study and associated legal and consultancy expenses.

At the present time, Coats cannot predict what its share of future remedial costs would be. Although there can be no assurance of the scope of future remedial and other costs, Coats believes that its former facilities which operated in the Lower Passaic River Study Area did not generate the contaminants which are driving the anticipated remedial actions and that this, and other mitigating factors, should result in a reduced share of any exposure for future remedial and other costs.

14. Directors - The following persons were, except as noted, directors of GPG during the whole of the year and up to the date of this report:

MRG Johnson (appointed 22 September 2010)

Sir Ron Brierley

MN Allen (appointed 22 September 2010)

RJ Campbell (appointed 22 September 2010)

R Langley (to 22 September 2010)

GR Walker (appointed 22 September 2010)

AI Gibbs (to 28 June 2010)

BA Nixon

Dr GH Weiss

15. Directors' Report - The Chairman's Statement appearing in the Preliminary Results and signed by Mark Johnson provides a review of the operations of the Group for the year ended 31 December 2010.

16. Director's Declaration - In accordance with a resolution of the directors of Guinness Peat Group plc we state that:

In the opinion of the Directors:

a) The preliminary Results of the consolidated entity comply with the recognition and measurement principles of applicable International Financial Reporting Standards as adopted by the Group; and

b) There are reasonable grounds to believe the Company will be able to pay its debts as and when they become due and payable.

17. Publication - This statement will be available at the registered office of the Company, First Floor, Times Place, 45 Pall Mall, London SW1Y 5GP. A copy will also be displayed on the Company's website on www.gpgplc.com.

On behalf of the Board

BA Nixon and Dr GH Weiss

Directors

25 February 2011

Registered in England No. 103548