Half-yearly Report

21st May 2009 07:00

Half Yearly Financial Report for the six months ended 29th March, 2009

Financial Highlights

Adjusted results* Statutory results 2009 2008 Change 2009 2008 Revenue £1,085 m £1,168 m -7% £1,085 m £1,168 m Operating profit/ £116 m £166 m -30% £(152) m £88 m(loss) Profit/(loss) £77 m £144 m -47% £(239) m £23 mbefore tax Earnings / (loss) 14.2 p 27.8 p -49% (46.0) p 15.3 pper share Dividend per share 4.80 p 4.80 p

*(before amortisation and impairment of intangible assets and exceptional items; see Consolidated Income Statement and reconciliation in Note 11).

B2B BUSINESSES GROWING; TOUGH CONDITIONS FOR B2C

* Continued growth from business to business operations, boosted by currency gains. * UK consumer media profits* reduced by unprecedented advertising conditions, but improved in April and May. * Revenue and cost initiatives will now improve profitability this year by £1 50 million. * Statutory results affected by non-cash impairment charges of £188 million. * Dividend maintained.

Martin Morgan, Chief Executive, said:

"Our B2B operations have been resilient in the face of the economic crisis, achieving growth, excluding the property businesses, boosted by currency gains in the period. The overall first half result has been badly affected by the impact of the recession on our consumer media advertising revenues. However, the decisive action taken to defend profitability, along with the continued management of our cost base, will help to offset the effect of continued weak trading conditions in the second half of the year.

Our strategy of creating a diversified international portfolio of market-leading businesses in both business and consumer markets is proving to be effective in the current environment and leaves us well positioned to deliver long-term growth."

A webcast of the Half Year Results presentation to City analysts will be available for viewing from 9.30 a.m. on 21st May, 2009 at http:// www.dmgt.co.uk.

Enquiries

Peter Williams Tel: 020 7938 6631

Nicholas Jennings Tel: 020 7938 6625

Andrew Honnor, Tulchan Communications Tel: 020 7353 4200

Daily Mail and General Trust plc

Contents

Page

Interim Management Report 3-14

Condensed Consolidated Income Statement 15

Condensed Consolidated Statement of Recognised Income and Expenses 16

Condensed Consolidated Statement of Changes in Equity 16

Condensed Consolidated Balance Sheet 17 - 18

Condensed Consolidated Cash Flow Statement 19 - 20

Notes to the Condensed Consolidated Financial Statements 21-37

Independent review report by the external auditors 38

Shareholder Information 39

Interim Management Report

This interim management report focuses on the adjusted numbers to give a more comparable indication of the Group's underlying business performance. A discussion of other items included in the statutory results is set out after the divisional performance review. The adjusted results are summarised below:

Adjusted results* 2009 2008 Change £m £m Revenue 1,085 1,168 -7% Operating profit 116 166 -30% Income from joint ventures (1) - N/Aand associates Net finance costs (38) (22) - 73% Profit before tax 77 144 -47% Tax charge (15) (28) 45% Minority interest (8) (10) -17% Group profit 54 106 - 49% Adjusted earnings per share 14.2p 27.8 p -49%

*Adjusted results are stated before amortisation and impairment of intangible assets and exceptional items. For a reconciliation of Group profit to adjusted Group profit, see Note 11.

# References below to underlying revenue or profit* are to revenue or profit* on a like for like basis, adjusted for acquisitions and disposals made in the current and prior year and at constant exchange rates.

Summary

Group revenue for the six months to 29th March, 2009 was £1,085 million, compared with £1,168 million for the prior year, a fall of 7%. Operating profit * was 30% lower at £116 million. Adjusted profit* before tax was £77 million, down 47% on the equivalent figure for the previous half year. The substantial falls from the first half last year were due mainly to the worsening trading conditions, but also partly to a change in the timing of profits*.

The Group's B2B operations increased their overall profit* by 4%, benefiting from the stronger dollar with the average sterling: US dollar exchange rate reduced by 25% in the period. The underlying# result was a fall of 3%. The profits* of A&N Media were significantly lower due to the unprecedented trading conditions. As a consequence, 79% of this half year's operating profit* was generated from B2B, up from 53% last year.

The statutory result was a loss before tax for the period of £239 million, after charging £232 million of amortisation charges and impairment losses, and £85 million of exceptional items.

Outlook

We expect to achieve growth overall in the rest of the year from our B2B operations, driven by Risk Management Solutions and the non-property businesses within DMG Information. Whilst revenue growth is slowing in some areas, the strength of our market leading products, coupled with cost containment and operational efficiencies, should provide continued resilience.

Within our UK local media operations, revenues continue to be stable which is encouraging, when combined with increasing cost reductions. Within our national consumer media operations, the positive impact will be felt of the cost reductions made to date and of the sale of the Evening Standard at the end of February. As a consequence, DMGT's operating profits* will be weighted more than last year towards the second half of the year.

Given the difficult trading environment, our focus remains on delivering revenue and cost initiatives which will now be around £150 million. Although there remains little visibility on UK advertising revenue trends, we currently expect the full year result* to be in line with the market consensus~.

Divisional ReviewBusiness to business (B2B)Risk Management Solutions 2009 2008 Movement £m £m % Revenue 69 45 +51% Operating profit* 20 13 +58% Operating margin* 29% 28%

Risk Management Solutions (RMS) has been established as a separate division. It continued its growth with an increase in underlying# revenue of 11%. Underlying # operating profit* was up 18%. It benefited significantly from the stronger dollar in which currency all revenues are billed, whilst a portion of its costs are in sterling.

RMS continues to be the world's leading provider of solutions to assist the insurance sector in quantifying and managing catastrophe and other risks. It achieved solid bookings in its core modelling business, offset by some specific licence reductions, including one resulting from a major industry merger. Growth in its earlier stage capital markets business was muted, as relatively less robust capital markets led to fewer new catastrophe bonds issued than had been expected during the period.

In response to a slower growth rate in revenues, RMS is taking actions to contain cost increases, including adopting a slower pace of new hiring with respect to its business initiatives. Overall, the company is continuing to invest in expanding its product range and geographic coverage and expects to achieve underlying# growth in revenue and profits* for the year, albeit at a lower rate than in the first half year.

DMG Information 2009 2008 Movement £m £m % Revenue 107 105 +2% Operating profit* 11 19 -41% Operating margin* 10% 18%

DMG Information achieved growth in its non-Property businesses, offset by the impact of weak property markets and revenue recognition timing in Education.

In aggregate, the underlying # operating profits* of DMGI (which now exclude RMS) fell by £8 million (-43%) with underlying # revenues down 10%, driven by the historically low volume of transactions in the real estate markets in the UK and US.

Property Information

As a result of continuing depressed activity levels in the US and UK property markets, underlying # revenues were down £12 million to £42 million (-23%). As a result, underlying # operating profits* were down £6.7 million to £6.7 million (-50%).

Despite the tough markets, our Property Information businesses remain significantly profitable, have all retained or improved their market positions and are well positioned for strong growth when transaction volumes return. These businesses have also taken appropriate action further to improve their cost bases. The majority of this impact will be seen in the second half of the year and beyond.

Other markets

Underlying# revenues from DMGI's non-property related companies, operating in the Education, Energy, Financial and Geospatial markets, were up 1% to £65 million. Primarily due to revenue recognition timing in Education (Hobsons), underlying profits* were down £2 million to £7 million (-28%).

Hobsons continued to grow revenues strongly. It made a first half loss* due to the timing of recognising revenue, but the quantum of this loss was higher than in the prior year due to the impact of last year's disposal of the European graduate recruitment business. Full year profits* are expected to be higher than last year.

In the Financial market, Trepp continued to achieve strong bookings, although the impact on revenue was partially offset by higher than usual cancellation rates. Lewtan increased its operating profits* through cost reductions.

Genscape, serving the energy information market, increased its revenues and underlying# profits and continues to expand its product range.

Over the full year, we anticipate underlying# revenues to be slightly below last year due to lower revenues from the property division. Overall DMGI's portfolio, operating in attractive markets, continues to perform well and the rate of investment in new products remains encouraging. It is well positioned for near term resilience and long-term growth.

Euromoney Institutional Investor

2009 2008 Movement £m £m % Revenue 161 155 +4% Operating profit* 36 34 +9% Operating margin* 23% 22%

Euromoney announced its first half results last week which reflect the continued success of its strategy to build a more resilient and better focused global information business. Operating profit* rose by 3% before deducting a charge for its capital appreciation plan, the CAP, £2 million lower than in the prior period.

After a 15% increase in the first quarter, Euromoney's revenues in the second quarter fell by 1%, compared to the same period a year ago, as clients made significant cuts in spend on marketing, training and travel to events, and revenues suffered the full impact of the cuts in headcount across financial markets in 2008. Underlying# revenues for the period fell by 10%.

Subscription revenues, which now account for 47% of total revenues, increased by 35%, an underlying# increase of 9%. This reflects the heavy investment in subscription-based electronic information services. A key driver has been the excellent performance since acquisition of the Metal Bulletin group, including BCA. Revenues from all other streams fell in underlying# terms.

Emerging markets, which account for nearly half of Euromoney's revenues, have also suffered from the global credit crisis with falling demand from their traditional export markets and declining asset values. However, the sharp, cyclical downturn driven by excess leverage and complex financial products that has characterised the credit problems in North America and Europe has not hurt emerging economies to the same degree. Most emerging markets have held up reasonably well.

In response to the exceptionally tough trading conditions, Euromoney has undertaken a restructuring of a number of its businesses, with a view to reducing costs and increasing operating efficiencies.

Forward revenue visibility for the second half is limited, as usual at this time. Euromoney expects revenue trends to deteriorate before they improve, and the focus on reducing costs will continue through the second half.

DMG World Media 2009 2008 Movement £m £m % Revenue 102 113 -10% Operating profit* 25 23 +6% Operating margin* 24% 21%

DMG World Media's underlying# operating profit* rose by 10% with underlying revenue flat, when adjusted for timing differences and non-annual events. The division has experienced weaker bookings especially for shows in the retail and consumer sectors. As a consequence, it has implemented a number of cost saving initiatives and continues to divest its non-core business lines.

Business to Business (`B2B')

B2B's operating profit* rose by 2% to £15 million on revenues up 10% to £48 million, an underlying# operating profit and revenue increase of 23% and 15%, respectively, when adjusted for timing differences and non-annual events. Growth came mainly in the first quarter from the Dubai exhibitions, primarily Big 5 and Index, and the biennial energy event, ADIPEC.

Business to Retail (`B2R')

B2R's operating profit* fell by 12% to £8 million on revenues down 16% to £23 million. When adjusted for timing and non-annual events, the underlying# revenue and operating profit decrease was 9% and 8%, respectively, primarily driven by declines in the US West Coast gift shows. B2R's premier show, the New York International Gift Fair, was held in January and generated revenue and profit* increases from the prior year show.

Business to Consumer (`B2C')

Following the sale of the North American home shows in the second half of lastyear and sale of its UK-based antiques publishing business early in the currentyear, B2C recorded an operating loss* of £1 million, comparable to the prioryear, despite revenues declining by £5 million to £16 million. The Ideal HomeShow, which was held partly in March, experienced lower revenues, and the UKconsumer publishing business experienced sharp declines in its revenues priorto its sale in March.Consumer mediaAssociated Newspapers 2009 2008 Movement £m £m % Revenue 455 508 -10% Operating profit* 18 44 -59% Operating margin* 4% 9%

Associated's results benefited from stable circulation revenues and significant cost reductions, although they were unable wholly to offset a fall in advertising revenues. These were down by 16% on an underlying# basis (quarter 1 - down 8%, quarter 2- down 23%), but April and May have seen an improving trend to be down only 15% to date.

Newspaper operations

Underlying# circulation revenues, which make up nearly half of Associated's print revenues, grew by 0.6% to £181 million. The increase was due to the benefit of cover price rises, which offset lower circulations. While circulation of the Daily Mail fell by 5.8% in the period and that of The Mail on Sunday by 5.6%, broadly in line with the market, much of the fall can be attributed to promotional activity being directed away from CD and DVD giveaways towards a sustained direct marketing campaign to recruit more long term loyal purchasers. This is proving successful, but is a gradual process.

Underlying# advertising revenues were down 15% to £184 million. Display advertising was down by 16% to £150 million. By sector, all categories were lower, but with retail, our largest category, the best performer, falling by just by 7%, boosted by strong advertising by the supermarkets. The Daily Mail's readership remains extremely attractive particularly to retail advertisers, as it has in previous downturns. Classified advertising, which is not dependent on property and jobs, fell by only 13% to £29 million. The last twelve months have seen significant investment for the first time into the titles' companion websites. Revenues from the titles' companion websites, principally Mail Online, increased by 15% to nearly £5 million. London Lite made further progress, increasing its display revenues by 11%, and strengthening its readership figures.

The results include losses* made by the Evening Standard for the first five months of the year, prior to its sale.

Associated Northcliffe Digital

AND's revenues from its core classified portals in jobs (Jobsite), property (Findaproperty and Primelocation) and motors (Motors.co.uk) fell by 14% to £40 million. An operating loss* was made of £1.6 million, a reduction of £3.8 million compared to the first half last year partly due to lower revenues but mainly to the cost of Jobsite's marketing campaign. This campaign has more than doubled the percentage of business users using Jobsite exclusively for their online recruitment and has significantly improved brand awareness.

Teletext's operating loss* was unchanged at £3 million. Its revenues rose by 4% to £18 million due to the extension of its ThisisTravel brand in April 2008 to become a holiday retail operation. Underlying# revenues fell by 17%. Seasonal factors mean that we expect the overall business to move towards profitability* in the second half of the year.

Northcliffe Media 2009 2008 Movement £m £m % Revenue 166 216 -23% Operating profit* 6 40 -85% Operating margin* 4% 18% UK

UK operating profits* fell by £33.0 million 91% to £3.2 million. Revenues were down 27% to £142 million, with advertising revenues down by 31% to £103 million (quarter one down 27%, quarter two-down 36%).

By category, notices were up 2%, but all other major categories fell with retail down 24%, recruitment down 47%, property down 54% and motors down by 23%. UK digital revenues for the period were in line with the same period last year with recruitment revenues down 33%, but other categories up 66%. Unique visitor levels to Northcliffe's network of "thisis" websites in March 2009 totalled 4.2 million and were 42% higher than the corresponding period last year.

UK circulation revenues fell by 6% to £35 million. In the July to December 2008 ABC period, our weekly titles outperformed the industry whereas daily titles were slightly below the industry average.

Operating costs were 11% lower than in the previous period (quarter one down 10%, quarter two costs down 12%), despite the impact of the higher average newsprint prices, with lower printing, staff, distribution and promotional costs in particular. The new regional operating structure has been implemented and headcount was reduced by 500 (11%) in the period.

April trading has seen advertising revenues remaining at 36% below last year. Recruitment revenues were down 63% (affected by the later falling of Easter this year). Other categories were at or above previous months, although property was still down 54% and retail down 11% year on year. In total, advertising revenues in the last 15 weeks have remained steady with the exception of recruitment. In addition, operating costs* are now running more than 20% down on last year with further significant reductions occurring since the half year.

Central Europe

The international division's operating profits* fell by £0.8 million (21%) to £ 2.8 million on revenues up 5% to £23 million. Underlying revenues# fell by 3%. After a steady start to the financial year, activity levels fell sharply in the second quarter of the period with underlying print advertising revenues down 26% and digital advertising revenues flat. Underlying# headcount has been reduced by 90 (10%) during the period.

A&N Media

Good progress has been made in achieving the revenue benefits and cost reductions announced in November, designed to protect the profitability of A&N Media. We will exceed the plans announced then.

From 1st January 2009, newsprint prices rose by around 20%, but the effect is being wholly offset by measures taken, including lower grammage paper and strict pagination control. Headcount (excluding the Evening Standard) fell by 750 (7%) in the period, including the closure of two regional printing plants.

DMG Radio Australia 2009 2008 Movement £m £m % Revenue 26 26 0 % Operating profit* 2 - N/A Operating margin* 6% 0%

DMG Radio Australia increased its profits* and grew its underlying# revenue by 1% despite a 4% decline in the radio advertising market in Australia. In the final listener survey for the half year, the Nova network increased its share in the key 18-39 demographic across Australia. Vega Sydney again increased its market share.

Significant cost measures have been taken to mitigate the impact of anticipated lower revenues, arising from the adverse market conditions, which are aimed at driving profit* growth further in the full year.

Other income statement items * Net finance costs 2009 2008 Movement £m £m % Net interest (39) (39) 0% payable and similar charges Swap premia income 1 16 N/A Dividend income - 1 N/A Total (38) (22) -73%

Net interest payable and similar charges (excluding swap premia but including deemed finance charges and interest receivable) was unchanged at £39 million with the higher value of interest on fixed US$ liabilities and the rise in the sterling value of net debt offset by lower interest rates on floating rate debt.

Income from tax equalisation swap premia fell by £15 million. The tax equalisation swap premia structure includes foreign exchange hedges which generate foreign exchange movements with an equal and opposite movement in the Group's tax position. This resulted in a £27 million exceptional charge to net interest and an equal credit to taxation (2008 £63 million).

* Other items

The Group's share of the results* of its joint ventures and associates fell by £1.2 million to a loss of £0.8 million.

The Group has charged £49 million as exceptional operating costs. This charge comprised reorganisation costs principally within Associated and Northcliffe totalling £38 million and of £11 million within Euromoney.

The charge for amortisation of intangible assets fell by £1 million to £44 million. The Group has also made an impairment charge of £179 million, principally relating to assets acquired in recent years by Northcliffe, DMG World Media, Euromoney and DMG Radio.

The Group recorded other net losses of £6 million, compared to net gains of £15 million in the prior period. This comprised write offs of investments, offset partly by exceptional profits on the sale of consumer exhibition businesses, principally the Antiques Trade Gazette.

* Taxation

The adjusted tax charge of £15 million (2008 £63 million) is stated after adjusting for the effect of exceptional items. The adjusted tax rate for the half year fell to 20 % from 24% in the 2008 full year. The continued low rate reflects tax reductions from tax-efficient financing and tax deductible amortisation in the US that are expected to recur.

There were net exceptional credits of £76 million, being the deferred tax credits on goodwill and intangible assets, the write back of provisions arising from the agreement of certain prior year open issues with tax authorities, including the £27 million credit on exchange differences on intra-Group financing.

Pensions

The deficit on the Group's defined benefit pension schemes rose from £41 million at the beginning of the year to £220 million at the half year (calculated in accordance with IAS 19). This change is primarily due to a fall in the market value of the schemes' assets, partly offset by a reduction in the value attributed to its liabilities because of higher bond yields. The funding agreement concluded with the trustees remains in place to the end of December 2010.

Net debt and cash flow

Net debt at the end of the period was £1,227 million, an increase of £212 million since the year end, £128 million of which arose from the depreciation of sterling against the US dollar. Total acquisition spend was £42 million, capital expenditure £31 million, taxation (including related tax equalisation payments) £50 million, interest £13 million and dividends totalled £44 million. These were offset partly by operating cash flows of £89 million and disposals of £7 million.

Acquisitions were largely pre-contracted earn-out payments and other deferred consideration. Disposals were of properties and businesses, principally the sale of the Antiques Trade Gazette in October 2008.

The Group's ratio of net debt to EBITDA was 3.71 on a rolling 12 month basis and, after appropriate adjustments, is comfortably within the requirements of the Group's bank covenants.

Net debt is usually at its peak around the half year due to the timing of dividend and other annual payments, and this is accentuated this year by the timing of trading profits and the costs of restructuring. A steady reduction in net debt is expected in the second half of the year, and is in line with expectations. However, with increased profit volatility, the Group is looking to reduce debt in both absolute and relative terms. We expect no difficulties in the foreseeable future in meeting our covenants and have adequate committed facilities until at least 2011.

Other financing

The Group utilised 6,455,651 `A' Ordinary Non-Voting shares out of treasury in order to meet obligations to provide shares under various incentive plans valued at £16 million. Following these transfers, DMGT's weighted average number of shares in issue for the full year is currently estimated at 378.3 million (2008 377.6 million).

DMGT took its share of the final dividend from Euromoney in the form of a scrip. This enabled it to mitigate the dilutive effect of the vesting of the second tranche of Euromoney's CAP, thereby maintaining its equity interest at around 66%. It is the Board's current intention also to take Euromoney's forthcoming interim dividend in the form of a scrip.

Dividend

The Board has declared an interim dividend of 4.80 pence per Ordinary and `A' Ordinary Non-Voting share (2008 4.80 pence) which will be paid on 3rd July, 2009 to shareholders on the register at the close of business on 5th June, 2009.

Board Changes

Marius Gray has decided to stand down as a Director of the Company on 31st July, 2009. He was appointed to the Board of Associated Newspapers in 1978 and to the Company in 1985 and has served on various Committees, including as Chairman of the Audit Committee since 1989. Over the last 31 years, he has made a unique contribution to the Group. His advice will be greatly missed.

At its meeting yesterday, the Board appointed David Nelson, aged 46, senior partner at Dixon Wilson, a Director with effect from 1st July, 2009. In addition to his current role on the Finance Committee, he will serve on the Audit and Remuneration Committees. He is an advisor to the Chairman and is not regarded by the Board as independent under the Combined Code. The Board also appointed David Verey, an independent non-executive Director since 2004, to succeed Marius Gray as Chairman of the Audit Committee and on the Risk Committee with effect from 31st July, 2009.

Principal risks and uncertainties

The principal risks and uncertainties that affect the Group on an ongoing basis are described in our 2008 Annual Report at www.dmgt.co.uk. These are still considered to be the most relevant risks and uncertainties at this time. The only risk that is expected to have a specific impact on the Group's performance over the remaining six months of the financial year is "Exposure to changes in the global economy and customer spending patterns." The impact of this risk could cause actual results to differ from expected and historical results.

Where a risk that was disclosed in the Annual Report is unchanged, and is not expected to have a specific impact in the remaining period, a summary of the disclosure given in the Annual Report has been included.

Risks specific to the remaining six month period of the year

Exposure to changes in the global economy and customer spending patterns

The current economic climate, especially in the UK, US and Central and Eastern European economies, continues to represent a significant risk to the Group. A significant (although decreasing) proportion of our revenue is derived from advertising, which has reduced as a result of the downturn in the global economy. A similar effect has been seen in our businesses that rely on non-advertising revenues in the financial and property markets. Despite the difficult trading conditions in these businesses, our long term strategy of diversifying the Group's portfolio, especially into business information and subscription revenue streams, and our commitment to invest in our core brands, puts us in a strong position both now and when growth returns.

Impact of a major outbreak of disease

The recent outbreak of a new strain of H1N1 influenza (Swine Flu) has led the World Health Organisation to increase the pandemic threat level to 5, indicating an imminent pandemic. Whilst it is still not clear how serious any pandemic might be, it could affect the Group's ability to produce and deliver its products, reduce the demand for them, or affect our cost base. Some of our events businesses may be more sensitive to a pandemic as the success of certain events can depend on confidence in global travel.

Business continuity plans including specific pandemic planning measures have been implemented across the Group. We have called upon specific pandemic modelling expertise within RMS to give us the best available insight into the likely spread of this new strain and issued regular communications to senior divisional management and staff members. In addition we were already in the process of implementing a pandemic influenza management scheme that includes provision of anti-viral medication to all staff. Our planning in advance of the recent events and since have allowed our businesses to be well prepared and to respond quickly in the future as new information becomes available to protect our staff, brands and reputation.

Other risks disclosed in the Annual Report

The following is a summary of the other risks and uncertainties that were disclosed in the 2008 Annual Report.

The impact of technological and market changes on our competitive advantage

Our businesses operate in highly competitive environments that can be subject to rapid change. Our products and services, and their means of delivery, are affected by technological innovations, changing legislation, competitor activity or changing customer behaviour. Our strategy of diversification and willingness to take a long-term view helps us react to these challenges and opportunities.

Pension scheme shortfalls

We operate defined benefit schemes in our newspaper divisions and for certain senior executives. Reported earnings may be adversely affected by changes in our pension costs and funding requirements due to lower than expected investment returns, changes in bond yields and changes in demographic, particularly longer life expectancy. Recent turmoil in global investment markets has increased our focus on this risk. The schemes are still neutral in cash flow terms and so do not currently need to sell assets. The next triennial scheme valuation will be completed in March 2010.

Impact of a major disaster

Any disaster, such as a geopolitical event or terrorist attack, which significantly affects the wider environment or infrastructure in a sector where the Group has material operations, could adversely affect the Group. Plans and procedures are in place to manage the impact of such risks.

Reliance on key management and staff

In order to pursue our strategy, we are reliant on key management and staff across all our businesses. We cannot predict with certainty that we will enjoy continued success in our recruitment and retention of high quality management and creative talent. With this in mind we have created the role of Group HR Director and we have a number of measures in place in each division to address this risk.

Price volatility of newsprint

Newsprint represents a significant proportion of our costs within the Newspaper divisions. Newsprint prices are subject to volatility arising from variations in supply and demand. The Group's newsprint requirements on price, volume and quality are monitored by the Newsprint Committee, and where possible, long-term arrangements are agreed with suppliers to limit the potential for volatility. Newsprint prices have been fixed until the end of the 2009 calendar year.

Acquisition and disposal risk

A number of risks are inherent within any strategy to acquire. However, the majority of acquisitions considered are smaller add-on businesses, which reduces the size of the risk of each acquisition to the Group. There are also risks to our ability to achieve optimal value from disposals. These are monitored and managed by each divisional board with oversight from the DMGT Board.

Reliance on IT infrastructure

All of our businesses are dependent on technology to some degree. Information systems are critical for the effective management and provision of services around the Group. Disruption to our information technology infrastructure or failure to implement new systems effectively could result in lost revenue and damage our reputation. Dedicated project management teams are used to manage the risk in any change project and business continuity plans are in place in each division to protect existing systems.

Information security

Like many organisations of our size, we suffered our own information security incident in 2008 and this increased the focus on and attention given to this important issue. Information security risks are managed by divisional management teams however a Group-wide policy has been set.

Climate change

A Group wide review of the impact of climate change was performed in 2008 to identify the key risks and opportunities for the Group presented by future climate change.

Treasury Risk

The Group's financing and treasury operations manage a number of risks including currency exchange rate fluctuations, liquidity risk and interest rate risk. The current problems in global financial markets as a result of the global recession heighten the uncertainty in this area. The Group renegotiated its bank debt prior to the previous financial year end. There is no specific risk to the Group in the second half of the year.

Tax risk

The Group operates within many jurisdictions; our earnings are therefore subject to taxation at differing rates across these jurisdictions and due to an ever more complex international tax environment there will always be a level of uncertainty when provisioning for our tax liabilities. This risk is managed by an in-house team of specialists who work with divisional management and external tax experts to review all tax arrangements in the Group.

Legal and regulatory

DMGT businesses are subject to varying legislation and regulation across several jurisdictions. Changes to this legislation or regulations could affect the results and future trading of the business.

For further details of these risks and mitigating controls which are in place, please refer to the 2008 Annual Report.

Statement of Directors' responsibilities

The Directors are responsible for preparing the half-yearly financial report, in accordance with applicable law and regulations.

The Directors confirm that to the best of their knowledge, this condensed set of financial statements which should be read in conjunction with the annual financial statements for the year ended 28th September, 2008:

a) has been prepared in accordance with IAS 34 `Interim financial reporting' as adopted by the European Union; and

b) includes a fair review of the information required by the Financial Services Authority's Disclosure and Transparency Rules 4.2.7R and 4.2.8R.

By order of the Board of Directors

The Viscount RothermereChairman20th May, 2009

*References to operating profit or loss or share of the results of joint ventures and associates in the narrative above are to adjusted operating profit or loss or adjusted share of the results of joint ventures and associates before amortisation and impairment of intangible assets and exceptional items); see notes 2 and 3.

#Underlying revenue or profit is revenue or profit on a like for like basis, adjusted for acquisitions and disposals made in the current and prior year and at constant exchange rates.

The average £: US$ exchange rate for the half year was £1: $1.51 (against £1: $2.01 for the first half of last year).

~Current City consensus of earnings* for 2009 is £183.7 million and earnings* per share of 32.6 pence. Source: DMGT website.

For further information

For analyst and institutional enquiries:

Peter Williams 020 7938 6631

Nicholas Jennings 020 7938 6625

For media enquiries:

Andrew Honnor, Tulchan Communications 020 7353 4200

Analysts' presentation and webcast

A presentation of the Half Year results will be given to investors and analysts at 9.30 a.m. on 21st May, 2009 at the offices of JP Morgan Cazenove, 20 Moorgate, London, EC2R 6DA. There will also be a live webcast available on our website: http://www.dmgt.co.uk.

Next trading update

The Group's next scheduled announcement of financial information will be its third quarter interim management statement on 23rd July 2009.

This Interim Management Report (IMR) is prepared for and addressed only to the Group's shareholders as a whole and to no other person. The Group, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom IMR is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. Statements contained in this IMR are based on the knowledge and information available to the Group's Directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By their nature, the statements concerning the risks and uncertainties facing the Group in this IMR involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this IMR contains any statement dealing with any time after the date of its preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur. The Group undertakes no obligation to update these forward-looking statements.

*-Condensed consolidated income statement For the period ended 29th March, 2009 Unaudited Unaudited Audited Year Half year Half year ended 28th ended ended 30th September, 29th March, 2008 2008 March, 2009 Note £m £m £m CONTINUING OPERATIONS Revenue 3 1,085.3 1,167.8 2,311.7

Operating profit before exceptional 3 116.4 166.1 316.9 operating costs and amortisation and

impairment of goodwill and intangible assets Exceptional operating costs 4 (49.2) (1.8) (31.8) Amortisation and impairment of (219.6) (76.4) (258.1)goodwill and intangible assets

Operating (loss)/profit before share 3 (152.4) 87.9 27.0 of results of joint ventures and

associates Share of results of joint ventures 5 (4.7) 5.5 3.5and associates Total operating (loss)/profit (157.1) 93.4 30.5 Other gains and losses 6 (6.3) 15.4 27.7 (Loss)/profit before net finance (163.4) 108.8 58.2costs and tax Investment revenue 7 0.8 1.7 3.0 Finance costs 8 (76.8) (87.9) (129.3) Net finance costs (76.0) (86.2) (126.3) (Loss)/profit before tax (239.4) 22.6 (68.1) Tax 9 60.6 44.1 84.7 (Loss)/profit after tax from (178.8) 66.7 16.6continuing operations DISCONTINUED OPERATIONS Profit from discontinued operations - 0.2 0.2 (LOSS)/PROFIT FOR THE PERIOD (178.8) 66.9 16.8 Attributable to : Equity shareholders (172.9) 58.5 - Minority interests (5.9) 8.4 16.8 (Loss)/profit for the period (178.8) 66.9 16.8 (Loss)/earnings per share 12 From continuing operations Basic (46.0)p 15.3p 0.0p Diluted (45.9)p 15.3p (0.2)p From discontinued operations Basic 0.0p 0.0p 0.1p Diluted 0.0p 0.0p 0.1p From continuing and discontinued operations Basic (46.0)p 15.3p 0.1p Diluted (45.9)p 15.3p (0.1)p Adjusted earnings per share Basic 14.2p 27.8p 47.9p Diluted 14.3p 27.8p 47.7p Condensed consolidated statement of recognised income and expense For the period ended 29th March, 2009 Unaudited Unaudited Audited Year Half year Half year ended 28th ended ended 30th September, 29th March, 2008 2008 March, 2009 £m £m £m (Loss)/profit for the period (178.8) 66.9 16.8 Foreign exchange differences on 111.0 26.8 58.8translation of foreign operations Losses on cash flow hedges (30.6) (4.9) (17.5) Change in value of net investment (119.9) (24.9) (45.3)hedges recorded in equity Actuarial (loss)/gain on defined (186.7) 4.6 (110.4)benefit pension schemes Deferred tax on actuarial movement 52.3 (1.3) 30.9 Deferred tax on other items 6.8 3.4 9.1recognised directly in equity Current tax on items recognised in - - 1.0equity Net (deficit)/income recognised (345.9) 70.6 (56.6)directly in equity Transfers Translation reserves recycled to - - (0.1)income statement on disposals Transfer of gain on cash flow hedges 1.9 (2.1) (2.9)from translation reserve to income statement 1.9 (2.1) (3.0) Total recognised income and expense (344.0) 68.5 (59.6)for the period Attributable to : Equity shareholders (339.6) 60.0 (75.0) Minority interests (4.4) 8.5 15.4 (344.0) 68.5 (59.6) Condensed reconciliation of movements in equity For the period ended 29th March, 2009 Unaudited Unaudited Audited Year Half year Half year ended 28th ended ended 30th September, 29th March, 2008 2008 March, 2009 Note £m £m £m

Total recognised income and expense (344.0) 68.5 (59.6) for the period

Dividends paid 10 (37.1) (38.4) (56.3) Initial recording of put options - - (0.5)granted to minority interests in subsidiaries Exercise of acquisition option 20.6 7.0 7.0commitments Transactions with minorities (3.5) (9.3) (12.2) Settlement of exercised share (36.0) (16.5) (20.2)options of subsidiary Credit to equity for share-based 5.3 6.9 16.6payments Shares purchased to be held in - (88.3) (88.3)treasury Own shares released on vesting of 33.1 16.8 21.0share options Revaluation of previously held - 27.0 27.0interest in associate on acquisition of control Adjustment to equity following (4.2) (7.3) (6.4)increased stake in controlled entity Total movement in equity for the (365.8) (33.6) (171.9)period Equity at the beginning of the 548.6 720.5 720.5period Equity at the end of the period 182.8 686.9 548.6Condensed consolidated cash flow statement For the period ended 29th March, 2009 Unaudited Unaudited Audited Year Half year Half year ended 28th ended ended 30th September, 29th March, 2008 2008 March, 2009 Note £m £m £m

Operating (loss)/profit before share (152.4) 87.9 27.0 of results of joint ventures and

associates - continuing Operating profit - discontinued - 0.2 - Adjustments for : Share based payments 5.3 6.9 16.6 Depreciation 32.1 31.0 63.1 Impairment of property, plant and 12.8 - 7.4equipment Amortisation of intangible assets 44.2 45.2 90.3 Impairment of goodwill and 175.4 31.2 167.8intangible assets Operating cash flows before 117.4 202.4 372.2movements in working capital (Increase)/decrease in inventories (1.5) (7.0) 0.6 Decrease/(increase) in trade and 58.5 (68.4) (3.9)other receivables (Decrease)/increase in trade and (91.6) 43.6 (6.3)other payables Increase/(decrease) in provisions 4.7 (0.5) 5.4 Cash generated by operations 87.5 170.1 368.0 Taxation paid (20.2) (18.3) (24.3) Taxation received 6.9 7.8 11.2 Net cash from operating activities 74.2 159.6 354.9 Investing activities Interest received 5.5 1.9 1.6 Dividends received from joint 2.1 3.0 3.1ventures and associates Dividends received from 1.3 0.4 0.3available-for-sale investments Purchase of property, plant and (22.6) (34.9) (64.5)equipment Purchase of available-for-sale (1.2) (19.9) (15.9)investments Proceeds on disposal of property, 3.3 7.9 15.4plant and equipment Proceeds on disposal of - - 55.1available-for-sale investments Purchase of subsidiaries 19 (16.6) (91.8) (104.3) Purchase of additional interests in (20.4) (33.4) (36.3)controlled entities Expenditure on internally generated (8.0) (6.5) (18.7)intangible fixed assets Treasury derivative activities (68.2) (1.0) (37.2) Investment in joint ventures and (1.5) (6.2) (13.5)associates Loans to joint ventures and 0.2 4.1 4.8associates repaid

Proceeds on disposal of businesses 20 3.0 14.2 58.5

Proceeds on disposal of associates - - 7.2 Net cash used in investing (123.1) (162.2) (144.4)activities Condensed consolidated cash flow statement (continued) For the period ended 29th March, 2009 Unaudited Unaudited Audited Year Half year Half year ended 28th ended ended 30th September, 29th March, 2008 2008 March, 2009 Note £m £m £m Financing activities Equity dividends paid (37.1) (38.4) (56.3) Dividends paid to minority interests (7.1) (7.5) (10.3) Issue of shares by Group companies - 0.1 0.2to minority interests Purchase of own shares - (88.3) (88.3) Settlement of subsidiary share (2.9) - (0.6)option plan Interest paid (20.0) (14.5) (64.8) Loan notes repaid (8.3) (20.5) (26.0) Increase in bank borrowings 117.6 174.7 10.7 Net cash from/(used in) financing 42.2 5.6 (235.4)activities Net (decrease)/increase in cash and (6.7) 3.0 (24.9)cash equivalents Cash and cash equivalents at 44.3 64.0 64.0beginning of period Exchange gain on cash and cash 7.1 2.5 5.2equivalents

Net cash and cash equivalents at end 13 44.7 69.5 44.3 of period

Condensed consolidated balance sheet As at 29th March, 2009 Unaudited Unaudited Audited Year Half year Half year ended 28th ended ended 30th September, 29th March, 2008 2008 March, 2009 Note £m £m £m ASSETS Non-current assets Goodwill 849.0 972.0 873.5 Other intangible assets 641.8 674.6 630.0

Property, plant and equipment 14 482.9 521.1 501.9

Investments Joint ventures 23.4 24.6 22.0 Associates 7.5 14.1 10.6 Available for sale investments 4.6 70.8 11.3 Deferred tax assets 78.6 10.4 31.1 Derivative financial assets 5.3 1.5 0.9 Trade and other receivables 11.5 4.7 8.3 Retirement benefit assets 21 0.6 82.7 2.5 2,105.2 2,376.5 2,092.1 Current assets Inventories 31.6 34.7 27.6 Trade and other receivables 436.4 512.9 456.9 Derivative financial assets 3.3 56.3 13.6 Cash and cash equivalents 45.3 79.3 45.3 516.6 683.2 543.4 Total assets 2,621.8 3,059.7 2,635.5 LIABILITIES Current liabilities Trade and other payables (655.1) (695.5) (650.2) Current tax payable (88.2) (121.5) (119.2)

Acquisition put option commitments 15 (19.5) (20.1) (29.5)

Other financial liabilities 16,17 (19.0) (37.3) (26.0)

Derivative financial liabilities (38.6) (89.3) (33.8) Provisions (27.5) (25.9) (27.4) (847.9) (989.6) (886.1) Non-current liabilities

Acquisition put option commitments 15 (0.4) (14.2) (7.6)

Other financial liabilities 16,17 (1,168.9) (1,167.1) (1,004.2)

Retirement benefit obligations 21 (220.7) (3.2) (43.7)

Derivative financial liabilities (140.8) (26.6) (38.6) Provisions (30.3) (41.6) (31.6) Deferred tax liabilities (29.0) (128.9) (74.0) Other non-current liabilities (1.0) (1.6) (1.1) (1,591.1) (1,383.2) (1,200.8) Total liabilities (2,439.0) (2,372.8) (2,086.9) Net assets 182.8 686.9 548.6 Condensed consolidated balance sheet (continued) As at 29th March, 2009 Unaudited Unaudited Audited Year Half year Half year ended 28th ended ended 30th September, 29th March, 2008 2008 March, 2009 Note £m £m £m SHAREHOLDERS' EQUITY As at 29th March, 2009 Called up share capital 49.1 49.1 49.1 Share premium account 12.4 12.4 12.4 Share capital 18 61.5 61.5 61.5 Capital redemption reserve 1.1 1.1 1.1 Revaluation reserve 3.6 44.5 39.5 Shares held in treasury (60.4) (97.7) (93.5) Translation reserve (14.5) 24.5 22.2 Retained earnings 154.3 623.1 479.1 Equity shareholders' funds 145.6 657.0 509.9 Equity minority interests 37.2 29.9 38.7 182.8 686.9 548.6 Approved by the Board of Directors on 20th May, 2009 NOTES 1 Basis of preparation

The information for the six months ended 29th March, 2009 and 30th March,

2008 and for the twelve months ended 28th September, 2008 does not

constitute statutory accounts for the purposes of section 240 of the

Companies Act 1985. A copy of the accounts for the year ended 28th

September, 2008 has been delivered to the Registrar of Companies. The

auditors' report on those accounts was not qualified and did not contain

statements under section 237 (2) or (3) of the Companies Act 1985.

The Annual Report and Accounts of DMGT plc are prepared in accordance with

International Financial Reporting Standards as adopted by the European

Union. These condensed financial statements have been prepared in

accordance with International Accounting Standard 34 Interim Financial

Reporting as adopted by the European Union.

The group's business activities, together with the factors likely to affect

its future development, performance and position are set out in the interim

management report. The financial position of the group, its cash flows,

liquidity position and borrowing facilities are described in the condensed

financial statements and notes. After making enquiries, the directors have

a reasonable expectation that the group has adequate resources to continue

in operational existence for the foreseeable future. Accordingly, they

continue to adopt the going concern basis in preparing the half yearly

financial report. 2 Accounting policies and presentation

These condensed financial statements have been prepared in accordance with

the accounting policies set out in the 2008 Annual Report and Accounts.

These policies are expected to be followed in the preparation of the full

financial statements for the financial year ending 4th October, 2009.

Impact of new accounting standards

In the current period the Group has adopted the following interpretations.

The adoption of these interpretations has not had any significant impact on

the Group's financial statements.

IFRIC 12 Service Concession Agreements (effective for periods beginning on

or after 1st January, 2008)

IFRIC 13 Customer Loyalty Programmes (effective for periods beginning on or

after 1st July, 2008)

At the date of authorisation of these financial statements, the following

standards have been issued but not applied to the information in these

financial statements since they do not apply to this reporting period.

Amendment to IAS 1, Presentation of Financial Statements (effective for

periods commencing on or after 1st January, 2009). This amendment

introduces changes to the way in which movements in equity must be

disclosed and requires an entity to disclose each component of other

comprehensive income not recognised in profit or loss. The amendment also

requires disclosure of the amount of income tax relating to each component

of other comprehensive income as well as several other minor disclosure

amendments.

Amendment to IAS 23, Borrowing Costs (effective for periods commencing on

or after 1st January, 2009). This standard requires all borrowing costs

which are directly attributable to an acquisition construction or

production of a qualifying asset to form part of the cost of that asset.

The Group does not expect a significant impact from the adoption of this

standard.

Amendment to IAS 27, Consolidated and Separate Financial Statements

(effective for periods commencing on or after 1st July, 2009). The

amendment introduces changes to the accounting for partial acquisitions and

disposals of subsidiaries, associates and joint ventures. Adoption of these

amendments is not expected to significantly impact the measurement,

presentation or disclosure of future disposals.

Amendments to IAS 32, Puttable financial instruments and obligations

arising on liquidation (effective for periods beginning on or after 1st

January, 2009). The amendments are relevant to entities that have issued

financial instruments that are (i) puttable financial instruments or (ii)

instruments, or components of instruments that impose on the entity an

obligation to deliver to another party a pro-rata share of the net assets

on liquidation only. As a result of the amendments, some financial

instruments that currently meet the definition of a financial liability

will be classified as equity because they represent the residual interest

in the net assets of the entity. The amendments set out extensive detailed

criteria to be met in order to be able to classify these instruments as

equity. The impact of these amendments is restricted to specific cases and

no analogies can be made. The Group does not expect a significant impact

from the adoption of this standard.

Amendments to IAS 39, Financial instruments : Recognition and Measurement

(effective for periods commencing on or after 1st July, 2009). The

amendments clarify treatment of inflation in a financial hedged item and

one-sided risks in a hedged item. The Group does not expect a significant

impact from the adoption of this standard.

Amendment to IFRS 2, Share-based Payment (effective for periods commencing

on or after 1st January, 2009). The amendments clarifies that vesting

conditions are service conditions and performance conditions only. Other

features of a share-based payment are not vesting conditions. It also

specifies that all cancellations, whether by the entity or by other

parties, should receive the same accounting treatment. The Group does not

expect a significant impact from the adoption of this standard.

Amendment to IFRS 3, Business Combinations (effective for periods

commencing on or after 1st July, 2009). The amendment introduces changes

that will require acquisition related costs (including professional fees

previously capitalised) to be expensed and adjustments to contingent

consideration to be recognised in income and will allow the full goodwill

method to be used when accounting for non-controlling interests. This will

result in a change to the Group's accounting policy for purchases of stakes

in controlled entities.

IFRS 8, Operating Segments (effective for periods beginning on or after 1st

January, 2009). IFRS 8 sets out disclosure requirements concerning an

entity's operating segments, products, services, geographical areas in

which it operates and its major customers. IFRS 8 replaces IAS 14,

Segmental Reporting. Adoption of this standard is not expected to change

the disclosures already made in the DMGT Report and Accounts significantly.

2008 Annual Improvements (the majority of changes will affect periods

beginning on or after 1st January, 2009). The standard makes 41 amendments

to 25 IFRSs as part of the first annual improvements project. The

amendments include : restructuring IFRS 1, mainly to remove redundant

transitional provisions; an amendment to bring property under construction

or development for future use as for future use as an investment property

within the scope of IAS 40. Such property currently falls within the scope

of IAS 16; and an amendment to clarify the circumstances in which an entity

can recognise a prepayment asset for advertising or promotional

expenditure. Recognition of an asset would be permitted up to the point at

which the entity has access to the goods purchased or up to the point of

receipt of services. The standard is not expected to have a significant

impact on the Group. In relation to the amendment to IAS 38 regarding

prepayments for advertising or promotional expenditure, the Group will be

required to reassess its accounting approach to reflect the requirements of

the standard. 2 Accounting policies and presentation, continued

2009 Annual Improvements (the majority of changes will effect periods

beginning on or after 1st January, 2010). The IASB has issued several

improvements to IFRSs - a collection of amendments to twelve International

Financial Reporting Standards - as part of its program of annual

improvements to its standards. The Group does not expect a significant

impact following these changes.

The following interpretations have been issued which are not applicable to

the Group since they are only effective for accounting periods beginning on

or after 29th September, 2008. The adoption of these interpretations is not

expected to have any significant impact on the Group's financial statements.

IFRIC 14 The Limit on a Defined Benefit Asset Minimum Funding Requirements

and their Interaction (effective for periods beginning on or after 1st

January, 2009)

IFRIC 15, Agreements for the Construction of Real Estate (effective for

periods beginning on or after 1st January, 2009)

IFRIC 16, Hedges of a Net Investment in a Foreign Operation (effective for

periods beginning on or after 1st October, 2008)

IFRIC 17, Distributions of non-cash assets (effective for periods beginning

on or after 1st July, 2009)

IFRIC 18, Transfers of assets from customers (effective for periods

beginning on or after 1st July, 2009) Changes in accounting policies

Other than noted above the same accounting policies, presentation and

methods of computation are followed for this interim financial information

as applied in the Group's latest annual audited financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In addition to the judgement taken by management in selecting and applying

the accounting policies set out above, management has made the following

judgements concerning the amounts recognised in the consolidated financial

statements. Impairment of goodwill and intangible assets

Determining whether goodwill and intangible assets are impaired requires an

estimation of the value in use of the relevant cash generating units. The

value in use calculation requires management to estimate the future cash

flows expected to arise from the cash generating unit and compare the net

present value of these cash flows using a suitable discount rate to

determine if any impairment has occurred. A key area of judgement is

deciding the long-term growth rate of the applicable businesses and the

discount rate applied to those cash flows. The carrying amount of goodwill

and intangible assets at the balance sheet date was £1,490.8 million (28th

September, 2008 £1,503.5 million) after an impairment loss of £175.4

million (period to 30th March, 2008 £31.2 million) was recognised during

the period. Acquisitions and intangible assets

The Group's accounting policy on the acquisition of subsidiaries is to

allocate purchase consideration to the fair value of identifiable assets,

liabilities and contingent liabilities acquired with any excess

consideration representing goodwill. In determining the fair value of

assets, liabilities and contingent liabilities acquired significant

estimates and assumptions, including assumptions with respect to cash flows

and unprovided liabilities and commitments, particularly in respect to tax,

are often used. The Group recognises intangible assets acquired as part of

a business combination at fair values at the date of the acquisition. The

determination of these fair values is based upon management's judgement and

includes assumptions on the timing and amount of future cash flows

generated by the assets and the selection of an appropriate discount rate.

Additionally, management must estimate the expected useful economic lives

of intangible assets and charge amortisation on these assets accordingly.

Acquisition option commitments

Written put options to acquire further stakes in subsidiaries, associates

and joint ventures written at the time of business combinations, unless so

deeply in the money that they represent in-substance ownership interests,

are considered financial instruments under IAS 32 and IAS 39. Put options

over a minority stake in a subsidiary give rise to a financial liability

under IAS 32. Put options over an associate are within the scope of IAS 39

and are accounted for as derivatives at fair value through profit and loss.

Where put options over associates have a fair value of nil, no accounting

is required. Written put options are classified within current liabilities

if exercisable within one year.

The Group is party to a number of put and call options over the remaining

minority interests in some of its subsidiaries. IAS 39 requires the fair

value of these acquisition option commitments to be recognised as a

liability on the balance sheet with a corresponding decrease in reserves.

Subsequent changes in the fair value of the liability are reflected in the

income statement. On exercise and settlement of the put option liability,

cumulative amounts are removed from retained earnings along with the

derecognition of the minority interest and recognition of additional

goodwill. Key areas of judgement in calculating the fair value of the

options are the expected future cash flows and earnings of the business and

the discount rate. At 29th March, 2009 the fair value of these acquisition

option commitments is £19.9 million (28th September, 2008 £37.1 million).

Deferred consideration

Estimates are required in respect of the amount of deferred contingent

consideration, which is determined according to formulae agreed at the time

of the business combination, and normally related to the future earnings of

the acquired business. The Directors review the amount of contingent

consideration likely to become payable at each balance date, the major

assumption being the level of future profits of the acquired business. At

29th March, 2009 the Group has outstanding deferred consideration payable

amounting to £31.1 million (28th September, 2008 £37.6 million).

Deferred consideration is discounted to its fair value in accordance with

IFRS 3 and IAS 37. The difference between the fair value of these

liabilities and the actual amounts payable is charged to the income

statement as notional finance costs. Adjusted profits and exceptional items

The Group presents adjusted earnings by making adjustments for costs and

profits which management believe to be exceptional in nature by virtue of

their size or incidence or have a distortive effect on current year

earnings. Such items would include one off gains and losses on disposal of

businesses, properties and similar items of a non-recurring nature together

with reorganisation costs and similar charges, tax and by adding back

impairment of goodwill and amortisation and impairment of intangible

assets. See note 11 for a reconciliation of profit before tax to adjusted

profit. 2 Accounting policies and presentation, continued Share-based payments

The Group makes share-based payments to certain employees. These payments

are measured at their estimated fair value at the date of grant, calculated

using an appropriate option pricing model. The fair value determined at the

grant date is expensed on a straight-line basis over the vesting period,

based on the estimate of the number of shares that will eventually vest.

The key assumptions used in calculating the fair value of the options are

the discount rate, the Group's share price volatility, dividend yield, risk

free rate of return, and expected option lives. Management regularly

perform a true-up of the estimate of the number of shares that are expected

to vest, this is dependent on the anticipated number of leavers. Taxation

Being a multinational Group with tax affairs in many geographic locations

inherently leads to a highly complex tax structure which makes the degree

of estimation and judgement more challenging. The resolution of issues is

not always within the control of the Group and is often dependent on the

efficiency of legal processes. Such issues can take several years to

resolve. The Group takes a conservative view of unresolved issues, however

the inherent uncertainty regarding these items means that the eventual

resolution could differ significantly from the accounting estimates and

therefore impact the Group's results and future cash flows. Retirement benefit obligations

The cost of defined benefit pension plans is determined using actuarial

valuations prepared by the Group's actuaries. This involves making certain

assumptions concerning discount rates, expected rates of return on assets,

future salary increases, mortality rates and future pension increases. Due

to the long term nature of these plans, such estimates are subject to

significant uncertainty. The assumptions and the resulting estimates are

reviewed annually and, when appropriate, changes are made which affect the

actuarial valuations and, hence, the amount of retirement benefit expense

recognised in the income statement and the amounts of actuarial gains and

losses recognised in the statement of recognised income and expense. The

carrying amount of the retirement benefit obligation at 29th March, 2009

was a deficit of £220.1 million (28th September, 2008 £41.2 million).

Further details are given in note 21. 3 SEGMENT ANALYSIS

The Group's business activities are split into seven operating divisions -

RMS, business information, Euromoney, exhibitions, national media, local

media and radio. These divisions are the basis on which the Group reports

its primary segment information. Due to the increased significance of RMS

and having regard to the quantitative thresholds within IAS 14, Segment

Reporting, the Group has separately disclosed its financial performance in

the note below. In the prior periods the results of RMS were included

within the business information segment. Analysis of revenue by business segment Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m RMS 69.7 46.8 101.1 Business 106.9 104.7 217.6 information Euromoney 160.7 154.8 332.0 Exhibitions 101.8 112.7 201.6 National media 487.2 547.4 1,064.7 Local media 166.4 216.8 427.0 Radio 26.3 26.3 54.7 Revenue - total 1,119.0 1,209.5 2,398.7 Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m RMS (1.0) (1.4) (3.2) Business (0.2) (0.1) (0.2) information National media (31.9) (39.3) (77.0) Local media (0.6) (0.9) (6.6) Revenue - (33.7) (41.7) (87.0) intersegment

Inter-segment sales are charged at prevailing market prices other than the

sale of newsprint from the national media to the local media division which

is at cost. The amount of newsprint sold during the period amounted to £

13.9 million (2008 £18.6 million). Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m RMS 68.7 45.4 97.9 Business 106.7 104.6 217.4 information Euromoney 160.7 154.8 332.0 Exhibitions 101.8 112.7 201.6 National media 455.3 508.1 987.7 Local media 165.8 215.9 420.4 Radio 26.3 26.3 54.7 Revenue - 1,085.3 1,167.8 2,311.7 continuing Analysis of revenue by geographic origin Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m UK 695.4 829.8 1,614.1 Rest of Europe 29.3 36.1 71.3 North America 267.5 233.8 486.5 Australia 28.7 30.0 70.8 Rest of the 64.4 38.1 69.0 World Revenue - total 1,085.3 1,167.8 2,311.7 consolidated continuing operations 3 SEGMENT ANALYSIS, continued

Analysis of operating profit before exceptional operating costs and

amortisation and impairment of goodwill and intangible assets by business

segment Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 Note £m £m £m RMS 19.8 12.5 30.7 Business information 11.2 19.1 44.2 Euromoney 36.3 33.5 76.3 Exhibitions 24.9 23.4 38.3 National media 18.0 44.1 72.6 Local media 6.1 40.0 68.4 Radio 1.6 0.3 2.0 Unallocated central costs (1.5) (6.8) (15.6) Operating profit before 116.4 166.1 316.9 exceptional operating costs and amortisation and impairment of goodwill and intangible assets Less: exceptional 4 (49.2) (1.8) (31.8) operating costs Less: amortisation of (44.2) (45.2) (90.3) intangible assets Less: impairment of (175.4) (31.2) (167.8) goodwill and intangible assets Operating (loss)/profit (152.4) 87.9 27.0 after exceptional operating costs and amortisation and impairment of goodwill and intangible assets

Analysis of operating (loss)/profit after exceptional operating costs and

amortisation and impairment of goodwill and intangible assets by business

segment Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m RMS 18.9 11.8 29.3 Business 4.6 14.5 35.2 information Euromoney (4.2) 25.9 55.8 Exhibitions (44.7) (13.4) (61.2) National media (33.8) 28.3 16.7 Local media (74.7) 32.2 (25.1) Radio (18.0) (4.6) (8.1) Unallocated (0.5) (6.8) (15.6) central costs Operating (loss) (152.4) 87.9 27.0 /profit

The Group tests goodwill annually for impairment, or more frequently if

there are indicators that goodwill might be impaired. Intangible assets are

tested separately from goodwill only where impairment indicators exist. The

total impairment charge recognised for the period was £175.4 million (2008

£31.2 million). Of the impairment charge for the period, £21.9 million

relates to Euromoney, mostly in connection with its structured finance

event businesses, £61.2 million relates to the exhibitions division in

relation to their gift sector businesses following a further downturn in

the gift sector markets they serve, £9.4 million relates to the national

media division, £68.3 million relates to the local media division and £14.6

million relates to the radio division following a continued decline in

advertising revenues in these segments. There is a deferred tax credit

amounting to £28.0 million in relation to these impairment charges.

In the prior period Euromoney re-assessed the recoverability of tax losses

acquired with Metal Bulletin and as a result recognised a deferred tax

asset of £1.1 million. In accordance with IAS 12, Income Taxes, the Group

is required to reduce its previously capitalised goodwill to offset this

deferred tax asset.

Additionally in the prior period, included within the gift sector charge is

an amount of £14.4 million relating to George Little Management LLC (GLM).

GLM was an associate on October 3rd, 2004, the Group's transition date to

IFRS. On transition to IFRS, the Group elected not to apply IFRS 3,

Business Combinations, retrospectively to past business combinations and

the carrying value of goodwill, intangible assets and other assets and

liabilities associated with the Group's stakes in its subsidiaries,

associates and joint ventures. As a result of the application of IFRS 3 on

acquiring control of GLM a double count of goodwill in respect of the

Group's acquisition of its initial 25% stake has occurred as under UK GAAP

the majority of this stake was attributed to goodwill and no separately

identifiable assets were recorded. As a result of this double count the

Group has been required to record an impairment charge of £14.4 million

immediately following acquisition of control in 2008 and this is included

in the charge for that period.

The balance of the gift sector charge reflected a downturn in the gift

sector markets they support.

When testing for impairment, the recoverable amounts for all the Group's

cash-generating units (CGUs) are measured at their value in use by

discounting future expected cash flows. These calculations use cash flow

projections based on management approved budgets and projections which

reflect management's current experience and future expectations of the

markets in which the CGU operates. Risk adjusted discount rates used by the

Group in its impairment tests range from 9.6% to 11.1%, the choice of rates

depending on the market and maturity of the CGU; the medium term growth

rates used in the projections range between 0% and 5% and vary with

management's view of the CGU's market position and maturity of the relevant

market. Any perpetuity factor does not exceed 3% or the long term average

growth rate for the market in which it operates. 4 EXCEPTIONAL OPERATING (COSTS)/GAINS Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m Business (0.6) - - information Euromoney (10.5) 0.7 - Exhibitions (1.3) - (4.5) National media (29.3) (1.1) (18.7) Local media (8.4) (1.4) (8.6) Radio (0.1) - - Group operations 1.0 - - Total (49.2) (1.8) (31.8)

The Group's exceptional operating costs comprise reorganisation and

restructuring costs together with charges relating to a rationalisation of

the Group's property portfolio. Exceptional gains within Group operations

represent curtailment gains of £1.3 million net of professional fees of £

0.3 million. There is a related current tax credit of £6.4 million and a

related deferred tax credit of £0.5 million associated with the total

exceptional operating costs.

In the prior period the Group's exceptional operating costs comprised

reorganisation and restructuring within the national and local media

divisions of £2.5 million and a related tax credit of £0.7 million.

Euromoney successfully surrendered a lease on a vacant building previously

utilised by Metal Bulletin and released other reorganisation and

restructuring provisions, set up following the acquisition of Metal

Bulletin, which are no longer required. This resulted in an exceptional

credit to the Group of £0.7 million and a related tax charge of £0.2

million. 5 SHARE OF RESULTS OF JOINT VENTURES AND ASSOCIATES Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 Note £m £m £m Share of (losses)/ (0.5) 0.4 0.5 profits from operations of joint ventures Share of losses from (0.1) (0.1) (0.3) operations of associates Share of associates' (i) - 9.8 9.8 other gains and losses Before amortisation, (0.6) 10.1 10.0 impairment of goodwill, interest and tax Share of (0.4) (0.4) (0.6) amortisation of intangibles of joint ventures Share of associates' (0.2) - 0.2 interest (payable)/ receivable Share of joint - (0.3) (0.8) ventures' tax Share of associates' (0.2) (0.1) (0.5) tax Impairment of (ii) (3.3) (3.8) (4.8) carrying value of associate (4.7) 5.5 3.5 Share of results (0.9) (0.3) (0.9) from operations of joint ventures Share of results (0.5) 9.6 9.2 from operations of associates Impairment of (3.3) (3.8) (4.8) carrying value of associate (4.7) 5.5 3.5

(i) In the prior year this represents the Group's share of Centurion Holiday

Group Limited's (formerly Indigo Holiday Limited) profit on disposal of

Hotels4u.com

(ii) Represents a write down in the carrying value of the Group's investment in

ITN and Inview Interactive Limited. In the prior year Centurion Holidays Group Limited was liquidated following the period end. The Group's carrying value was written down to the proceeds received on liquidation. 6 OTHER GAINS AND LOSSES Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 Note £m £m £m Profit on sale of 0.1 - 7.6 available-for-sale investments Impairment of (i) (8.8) (1.5) (10.1) available-for-sale assets Profit on sale of - 5.3 6.8 property, plant and equipment Profit on sale of (ii) 4.8 11.7 23.4 businesses Loss on deemed part (2.4) - - disposal of Euromoney Institutional Investor plc Loss on sale and - (0.1) - deemed disposal of joint ventures and associates (6.3) 15.4 27.7

(i) The impairment of available-for-sale assets represents a further impairment

charge for the Group's investment in Spot Runner Inc., an advertising

services company, in light of its current trading performance. (ii) The profit on sale of businesses mainly comprises a £2.7 million curtailment gain within the national media division associated with the Group's sale of a 75.1% interest in the Evening Standard together with profits within the exhibitions division in relation to the sale of Metropress. There is a deferred tax charge of £0.8 million in relation to the curtailment gain. Since the Group has no Board representation and no influence over the day to day management of the Evening Standard, nor any obligation to provide further funding the Group's 24.9% interest in the Evening Standard has been accounted for as an available for sale asset (note 20). In the prior year the profit on sale of businesses mainly comprises the sale of Dolphin Software Inc., a provider of information on hazardous chemicals within the business information division. 7 INVESTMENT REVENUE Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m Dividend income GCap Media plc - 0.4 0.3 Interest receivable Short-term deposits 0.8 1.3 2.7 0.8 1.7 3.0 8 FINANCE COSTS Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 Note £m £m £m Interest, (39.4) (38.9) (78.3) arrangement and commitment fees payable on bonds, bank loans and loan notes Loss on derivatives, (26.1) (46.9) (45.6) or portions thereof, not designated for hedge accounting Finance charge on (i) (0.8) (1.3) (2.4) discounting of deferred consideration Other (10.5) (0.8) (3.0) (76.8) (87.9) (129.3) Analysed as follows : Interest, (39.4) (38.9) (78.3) arrangement and commitment fees payable on bonds, bank loans and loan notes Finance charge on (0.8) (1.3) (2.4) discounting of deferred consideration Change in fair value - 1.4 2.6 of non designated portion of derivatives designated as net investment hedges Change in fair value (0.4) (1.2) (0.2) of interest rate caps not designated for hedge accounting Change in fair value 6.8 2.5 1.1 of derivative hedge of bond Change in fair value (6.8) (2.5) (1.1) of hedged portion of bond (40.6) (40.0) (78.3) Tax equalisation 0.9 8.7 14.5 swap income Non foreign exchange 0.5 7.4 5.3 gain on tax equalisation options (ii) 1.4 16.1 19.8 Foreign exchange (27.1) (63.2) (67.8) loss on tax equalisation arrangements Foreign exchange (iii) (7.3) - - loss on restructured hedging arrangements Change in fair value (3.2) (0.8) (3.0) of acquisition put options (37.6) (64.0) (70.8) (76.8) (87.9) (129.3)

(i) The finance charge on the discounting of deferred consideration arises from

the requirement under IFRS 3, Business Combinations to discount deferred

consideration back to current values.

(ii) Tax equalisation swap income and the gain from tax equalisation options

totalling £1.4 million (2008 £16.1 million) arises from the economic hedging of tax on foreign exchange movements. The foreign exchange loss on tax equalisation arrangements of £27.1 million (2008 £63.2 million) is excluded from adjusted profit since it is equal to a reduced tax charge (see note 9). In addition, the foreign exchange loss on intra group financing, premium on repurchase of bonds, on restructured hedging arrangements and the change in fair value of acquisition put options are also excluded from adjusted profits.

(iii) The foreign exchange losses on restructured hedging arrangements of £7.3

million (2008 £nil) arise from forward contracts classified as ineffective under IAS 39, Financial instruments, following the directors' review of the Group's US dollar revenue capacity in its UK based businesses. 9 TAX Corporation tax for the interim period is charged at 28% (2008 29%), representing the best estimate of the weighted average annual corporation tax rate expected for the full financial year. The credit/(charge) on the (loss)/profit for the period consists of : Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 Note £m £m £m UK Corporation tax at - 36.2 18.0 28% (2008 29%) Adjustments in (i) 14.1 0.6 28.2 respect of prior year 14.1 36.8 46.2 Overseas taxation Corporation taxes 11.6 (9.3) (18.4) Adjustments in (0.3) (0.7) (0.8) respect of prior year Total current 25.4 26.8 27.0 taxation Deferred tax Origination and 35.3 17.8 60.6 reversals of timing differences Adjustments in (0.1) (0.5) (2.9) respect of prior year 60.6 44.1 84.7 (i) The net prior year credit of £14.1 million (2008 £0.6 million) arose largely from the agreement of certain prior year open issues with tax authorities and a reassessment of the level of tax provisions required. Adjusted tax on profits before amortisation and impairment of intangible assets, restructuring costs and non-recurring items (adjusted tax charge) amounted to £15.5 million (2008 £28.4 million) and the resulting rate is 20.0 % (2008 19.7 %). The differences between the tax credit and the adjusted tax charge are shown in the reconciliation below : Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m Total tax credit on 60.6 44.1 84.7 the profit for the year Deferred tax on (30.4) (9.0) (37.2) intangible assets and goodwill Current tax on (27.1) (63.2) (67.8) foreign exchange on tax equalisation contracts Agreement of open (13.7) - (23.8) issues with tax authorities Tax on other (4.9) (0.3) (18.7) exceptional items Adjusted tax charge (15.5) (28.4) (62.8) on the profit for the period In calculating the adjusted tax rate, the Group excludes the potential future deferred tax effects of intangible assets and goodwill as it prefers to give the readers of its accounts a view of the tax charge based on the current status of such items. A credit of £27.1 million relating to tax on foreign exchange losses (2008 £63.2 million) has been treated as exceptional as it matches foreign exchange losses of £27.1 million (2008 £63.2 million) on tax equalisation swaps included within finance costs (see note 8). 10 DIVIDENDS PAID Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m Amounts recognisable as distributions to equity holders in the period Ordinary shares - 2.0 - - final dividend for the year ended 28th September, 2008 `A' Ordinary Non-Voting shares - 35.1 - - final dividend for the year ended 28th September, 2008 Ordinary shares - - 2.0 2.0 final dividend for the year ended 30th September, 2007 `A' Ordinary Non-Voting shares - - 36.4 36.4 final dividend for the year ended 30th September, 2007 37.1 38.4 38.4 Ordinary shares - - - 1.0 interim dividend for the year ended 28th September, 2008 `A' Ordinary Non-Voting shares - - - 16.9 interim dividend for the year ended 28th September, 2008 - - 17.9 37.1 38.4 56.3 The Board has declared an interim dividend of 4.80 p per 'A' Ordinary Non-Voting share (2008 4.80 p) which will absorb an estimated £18.3 million of shareholders' funds which has not been recognised in these financial statements. It will be paid on 3rd July, 2009 to shareholders on the register at the close of business on 5th June, 2009. This dividend was approved by the Board on 20th May, 2009 and has not been included as a liability as at 29th March, 2009. 11 ADJUSTED PROFIT (BEFORE EXCEPTIONAL OPERATING COSTS AND AMORTISATION AND IMPAIRMENT OF GOODWILL AND INTANGIBLE ASSETS, OTHER GAINS AND LOSSES AND EXCEPTIONAL FINANCING COSTS, AFTER TAXATION AND MINORITY INTERESTS) Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m (Loss)/profit before tax - (239.4) 22.6 (68.1) continuing operations Profit before tax - discontinued - 0.2 0.2 operations Add back : Amortisation of intangible assets 44.6 45.6 90.9 in Group profit from operations and in joint ventures and associates Impairment of goodwill and 175.4 31.2 167.8 intangible assets Exceptional 49.2 1.8 31.8 operating costs Share of - (9.8) (9.8) associates' other gains Impairment of carrying value of 3.3 3.8 4.8 associate Other gains and losses : Profit on sale of (0.1) - (7.6) available-for-sale investments Profit on sale of property, - (5.3) (6.8) plant and equipment Profit on sale of businesses (4.8) (11.7) (23.4) Impairment of available-for-sale 8.8 1.5 10.1 assets Loss on deemed part disposal of 2.4 - - Euromoney Institutional Investor plc Loss on sale and deemed disposal - 0.1 - of joint ventures and associates Profit on sale of discontinued - - (0.2) operations Finance costs : Foreign exchange loss on tax 27.1 63.2 67.8 equalisation arrangements Foreign exchange loss on 7.3 - - restructured hedging arrangements Change in fair value of 3.2 0.8 3.0 acquisition put options Tax : Share of tax in joint ventures 0.2 0.4 1.3 and associates Profit before exceptional 77.2 144.4 261.8 operating costs, amortisation and impairment of goodwill and intangible assets, other gains and losses and exceptional financing costs, taxation and minority interests Total tax credit 60.6 44.1 84.7 on the profit for the period Adjust for : Deferred tax on intangible (30.4) (9.0) (37.2) assets and goodwill Current tax on foreign exchange (27.1) (63.2) (67.8) on tax equalisation arrangements Agreed open issues with tax (13.7) - (23.8) authorities Tax on other exceptional items (4.9) (0.3) (18.7) Interest of minority (8.2) (9.9) (18.1) shareholders Adjusted profit before 53.5 106.1 180.9 exceptional operating costs, amortisation and impairment of goodwill and intangible assets, other gains and losses and exceptional financing costs after taxation and minority interests The adjusted minority share of profits for the year of £8.2 million (2008 £ 9.9 million) is stated after eliminating a credit of £14.1 million (2008 £ 1.5 million), being the minority share of exceptional items. 12 EARNINGS/(LOSS) PER SHARE Basic loss per share of 46.0 p (2008 earnings 15.3 p) and diluted loss per share of 45.9 p (2008 earnings 15.3 p) are calculated, in accordance with IAS 33, Earnings per share, on Group loss for the period of £172.9 million (2008 profit £58.5 million) and on the weighted average number of ordinary shares in issue during the year, as set out below. As in previous years, adjusted earnings per share have also been disclosed since the Directors consider that this alternative measure gives a more comparable indication of the Group's underlying trading performance. Adjusted earnings per share of 14.2 p (2008 27.8 p) are calculated on profit before exceptional operating costs, amortisation and impairment of goodwill and intangible assets, after charging the taxation and minority interests associated with those profits, of £53.5 million (2008 £106.1 million), as set out in Note 11 above, and on the basic weighted average number of ordinary shares in issue during the period. Basic (loss)/earnings per share Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 Pence Pence Pence per share per share per share (Loss)/earnings per share from (46.0) 15.3 - continuing operations Adjustment to exclude earnings of - - 0.1 discontinued operations Basic (loss)/earnings per share (46.0) 15.3 0.1 from continuing and discontinued operations Add back: Amortisation of intangible assets 11.9 11.9 24.1 in Group profit from operations and in joint ventures and associates Impairment of goodwill and 46.7 8.2 44.4 intangible assets Exceptional 13.1 0.5 8.4 operating costs Share of - (2.6) (2.6) associates' other gains Impairment of 0.9 1.0 1.3 carrying value of associate Other gains and losses : Profit on sale of - - (2.0) available-for-sale investments Profit on sale of property, - (1.4) (1.8) plant and equipment Profit on sale of businesses (1.3) (3.1) (6.2) Impairment of available-for-sale 2.3 0.4 2.7 assets Loss on deemed part disposal of 0.6 - - Euromoney Institutional Investor plc Profit on sale of discontinued - - (0.1) operations Finance costs : Foreign exchange loss on tax 7.2 16.7 18.0 equalisation arrangements Foreign exchange loss on 1.9 - - restructured hedging arrangements Change in fair value of 0.9 0.2 0.8 acquisition put options Tax : Share of tax in joint ventures 0.1 0.1 0.3 and associates Profit before exceptional 38.3 47.2 87.4 operating costs, amortisation and impairment of goodwill and intangible assets, other gains and losses and exceptional financing costs, taxation and minority interests Adjust for: Deferred tax on intangible assets (8.1) (2.4) (9.9) and goodwill Current tax on foreign exchange (7.2) (16.7) (18.0) on tax equalisation arrangements Agreed open issues with tax (3.6) - (6.3) authorities Tax on other exceptional items (1.3) - (5.0) Interest of minority shareholders (3.9) (0.3) (0.3) Adjusted earnings per share 14.2 27.8 47.9 (before exceptional operating costs, amortisation and impairment of goodwill and intangible assets, other gains and losses and exceptional financing costs after taxation and minority interests) 12 EARNINGS/(LOSS) PER SHARE, continued Diluted earnings per share Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 Pence Pence Pence per share per share per share (Loss)/earnings per share from (45.9) 15.3 (0.2) continuing operations Adjustment to exclude earnings of - - 0.1 discontinued operations Basic (loss)/earnings per share (45.9) 15.3 (0.1) from continuing and discontinued operations Add back: Amortisation of intangible assets 11.9 11.9 24.1 in Group profit from operations and in joint ventures and associates Impairment of goodwill and 46.7 8.2 44.4 intangible assets Exceptional 13.1 0.5 8.4 operating costs Share of - (2.6) (2.6) associates' other gains Impairment of carrying value of 0.9 1.0 1.3 associate Other gains and losses : Profit on sale of - - (2.0) available-for-sale investments Profit on sale of property, - (1.4) (1.8) plant and equipment Profit on sale of businesses (1.3) (3.1) (6.2) Impairment of available-for-sale 2.3 0.4 2.7 assets Loss on deemed part disposal of 0.6 - - Euromoney Institutional Investor plc Profit on sale of discontinued - - (0.1) operations Finance costs : Foreign exchange loss on tax 7.2 16.7 18.0 equalisation arrangements Foreign exchange loss on 1.9 - - restructured hedging arrangements Change in fair value of 0.9 0.2 0.8 acquisition put options Tax : Share of tax in joint ventures 0.1 0.1 0.3 and associates Profit before exceptional 38.4 47.2 87.2 operating costs, amortisation and impairment of goodwill and intangible assets, other gains and losses and exceptional financing costs, taxation and minority interests Adjust for: Deferred tax on intangible (8.1) (2.4) (9.9) assets and goodwill Current tax on foreign exchange (7.2) (16.7) (18.0) on tax equalisation arrangements Agreed open issues with tax (3.6) - (6.3) authorities Tax on other exceptional items (1.3) - (5.0) Interest of (3.9) (0.3) (0.3) minority shareholders Adjusted earnings per share 14.3 27.8 47.7 (before exceptional operating costs, amortisation and impairment of goodwill and intangible assets, other gains and losses and exceptional financing costs after taxation and minority interests) The weighted average number of ordinary shares in issue during the period for the purpose of these calculations is as follows : Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 No. No. Mo. million million million Number of ordinary shares in 391.3 402.6 395.3 issue Shares held in treasury (15.6) (20.9) (17.7) Basic earnings per share 375.7 381.7 377.6 denominator Effect of - - - dilutive share options Dilutive earnings per share 375.7 381.7 377.6 denominator 13 ANALYSIS OF NET DEBT Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m Net debt at (984.9) (950.4) (955.5) start Cash flow (122.3) (150.8) (9.6) Issued on acquisition of - (10.8) - subsidiaries Arising with (0.5) - - acquisitions Foreign exchange (34.9) (7.6) 4.8 movements Other non-cash - (5.5) (24.6) movements Net debt at (1,142.6) (1,125.1) (984.9) period end Analysed as : Cash and cash 45.3 79.3 45.3 equivalents Unsecured bank (0.6) (9.8) (1.0) overdrafts Cash and cash equivalents in the 44.7 69.5 44.3 cash flow statement Debt due within (0.6) - - one year Bonds (845.2) (840.6) (838.9) Loan notes (17.8) (27.5) (25.0) Loans (323.7) (326.5) (165.3) Net debt at (1,142.6) (1,125.1) (984.9) period end Effect of derivatives on bank (84.2) (16.3) (29.7) loans Net debt (1,226.8) (1,141.4) (1,014.6) including derivatives 14 PROPERTY, PLANT AND EQUIPMENT During the period the Group spent £22.6 million (2008 £34.9 million) on property, plant and equipment. The Group also disposed of certain of its property, plant and equipment with a carrying value of £4.0 million (2008 £2.6 million) for proceeds of £ 3.3 million (2008 £7.9 million). 15 ACQUISITION PUT OPTION COMMITMENTS Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m Current 19.5 20.1 29.5 Non-current 0.4 14.2 7.6 19.9 34.3 37.1 16 OTHER FINANCIAL LIABILITIES Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m Current liabilities Bank overdrafts 0.6 9.8 1.0 Bank loans 0.6 - - Loan notes 17.8 27.5 25.0 19.0 37.3 26.0 Non-current liabilities Bank loans 323.7 326.5 165.3 Bonds 845.2 840.6 838.9 1,168.9 1,167.1 1,004.2 17 BANK LOANS The Group's bank facilities are all unsecured and bear interest based on LIBOR plus a margin based on the Group's ratio of net debt to EBITDA ratio. Additionally each facility contains a covenant based on a minimum interest cover ratio. The Group's facilities and their maturity dates are as follows : Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m Expiring in one 70.0 210.0 - year or less Expiring in more than one year - - 70.0 but not more than two years Expiring in more than two years 180.0 300.0 180.0 but not more than three years Expiring in more than four years 240.0 - 240.0 but not more than five years Total bank 490.0 510.0 490.0 facilities The following undrawn committed bank facilities were available to the Group as at 29th March, 2009 in respect of which all conditions precedent had been met : Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 £m £m £m Expiring in one 3.1 65.0 - year or less Expiring in more than one year - 69.1 5.7 but not more than two years Expiring in more than two years - - 84.5 but not more than three years Expiring in more than four years 46.1 - 157.3 but not more than five years Expiring in more than five years 43.6 - - but not more than six years Total undrawn committed bank 92.8 134.1 247.5 facilities 18 SHARE CAPITAL AND RESERVES Share capital as at 29th March, 2009 amounted to £49.1 million, which was unchanged during the period. The Company disposed of 6,455,651 treasury shares, representing 1.73 % of the called up 'A' Ordinary Non-Voting share capital, in order to satisfy incentive schemes. At 29th March, 2009 options were outstanding under the terms of the Company's 1997 and 2006 Executive Share Option Schemes over a total of 6,543,567 (2008 6,977,459) 'A' Ordinary Non-Voting shares. During the period the Group identified an amount of £35.9 million within the revaluation reserve that related primarily to the interest previously held in GCAP Media plc. As these assets are no longer held this amount in the revaluation reserve has been reclassified to retained earnings. 19 SUMMARY OF THE EFFECTS OF ACQUISITIONS Acquisitions completed during the period, the percentage of voting rights acquired and the dates of acquisition were as follows : Name of acquisition Segment % voting rights Business Consideration Intangible Goodwill Date of acquired description fixed acquired acquisition assets acquired £m £m £m Metropix Supplier of 4.3 2.5 2.4 Business floor-plan information 100% drawing services December 2008 Reflex Event organiser 1.7 - 1.7 Publishing and publisher in Exhibitions 100% the energy sector November 2008 Broadbean Multiple job 7.6 4.8 4.1 Technology posting and National media application 100% tracking solutions October 2008 Provisional fair value of net assets acquired: Book value Fair Fair value value adjustments £m £m £m Goodwill - 8.2 8.2 Intangible - 7.3 7.3 assets Property, plant 0.2 - 0.2 and equipment Prepaid show 0.1 - 0.1 expenses Trade and other 1.6 - 1.6 receivables Cash and cash 0.9 - 0.9 equivalents Trade and other (2.5) - (2.5) payables Deferred - (2.2) (2.2) taxation Total net assets 0.3 13.3 13.6 acquired Cost of acquisition Non-cash Cash paid Total in current period £m £m £m Deferred 6.0 - 6.0 consideration Cash - 7.4 7.4 Consideration at 6.0 7.4 13.4 fair value Directly - 0.2 0.2 attributable costs Total cost of 6.0 7.6 13.6 acquisition If all acquisitions had been completed on the first day of the financial period, Group revenues for the period would have been £1,083.0 million and Group loss attributable to equity holders of the parent would have been £ 172.8 million. This information takes into account the amortisation of acquired intangible assets for a full year, together with related income tax effects but excludes any pre-acquisition finance costs and should not be viewed as indicative of the results of operations that would have occurred if the acquisitions had actually been completed on the first day of the financial year. Total profit attributable to equity holders of the parent since the date of acquisition for companies acquired during the period amounted to £0.3 million. Goodwill arising on the acquisitions is principally attributable to the anticipated profitability relating to the distribution of the Group's products in new and existing markets and anticipated operating synergies from the business combinations. Reconciliation to purchase of subsidiaries as shown in the cash flow statement £m Cash consideration including 7.6 acquisition expenses Cash paid in respect of 9.9 consideration deferred from prior years Cash and cash equivalents (0.9) acquired with subsidiaries Cash movements on purchase of 16.6 subsidiaries 20 DISPOSALS OF SUBSIDIARIES AND BUSINESSES On 21st January 2009, the national media division sold a 75.1% interest in the Evening Standard for cash proceeds of £8.3 million. Following disposal the Group has no Board representation and no influence over the day to day management of the title nor any obligation to provide further funding. The remaining 24.9% investment has therefore been treated as a long term available-for-sale investment. The impact of the disposal on business net assets was as follows : £m Property, plant 0.7 and equipment Total net assets 0.7 disposed Loss on sale of (0.7) businesses - Satisfied by : Cash received 8.3 Directly (2.7) attributable costs Cash reinvested (8.3) Pension 2.7 curtailment gain - During the period the Evening Standard absorbed £0.3 million of the Group's net operating cashflows, paid £nil in respect of investing activities and paid £nil in respect of financing activities. The other principal disposal completed during the period, the proceeds received and date of disposal was as follows : Name of disposal Date of disposal Disposal Segment proceeds £m Metro Press October 2008 6.9 Exhibitions The impact of disposals of businesses on net assets was : £m Intangible 0.6 assets Property, plant 0.4 and equipment Trade and other 0.9 receivables Trade and other (1.0) payables Total net assets 0.9 disposed Profit on sale 5.5 of businesses 6.4 Satisfied by : Cash received 6.8 Loan notes 0.7 Directly (1.1) attributable costs 6.4 The disposals were made at the start of the period and have no impact on the Group's cash flows. As the above disposal occurred on the first day of the period the subsidiary did not contribute any cash flows to the Group during the period. Reconciliation to disposal of businesses as shown in the cash flow statement £m Cash 15.1 consideration Directly (3.8) attributable costs Cash reinvested (8.3) Proceeds on 3.0 disposal of businesses 21 RETIREMENT BENEFIT SCHEMES Defined benefit schemes The newspaper divisions of the Group operate a number of pension schemes covering most major UK group companies under which contributions are paid by the employer and employees. The schemes for most employees are funded defined benefit pension arrangements, providing service-related benefits, based on final pensionable salary. In addition, a number of defined contribution pension plans are operated by certain divisions of the Group where this type of pension provision aligns with the business model. The assets of all the schemes are held independently from the Group's finances and in the UK are administered by trustees or trustee companies. The total net pension costs of the Group's defined benefit schemes for the period were £9.2 million (2008 £5.2 million). The defined benefit obligation is calculated on a year-to-date basis, using the latest actuarial valuation as at 29th March, 2009. The assumptions used in the valuation are summarised below: Unaudited Unaudited Audited Year Half year Half year ended 28th ended 29th ended 30th September, 2008 March, 2009 March, 2008 % pa % pa % pa Price inflation 3.0 3.6 3.7 Salary increases 3.5 4.9 4.2 Pensions 3.0 3.6 3.7 increases Discount rate for scheme 6.8 6.9 7.0 liabilities Expected overall rate of return N/A N/A 7.5 on assets During the period the Group recognised pension curtailment gains arising from the remeasurement of pension liabilities of £2.7 million in relation to the disposal of the Evening Standard (note 6) and £1.3m in relation to the Group's reorganisation and restructuring programmes (note 4). 22 CONTINGENT LIABILITIES There have been no material changes in contingent liabilities since 28th September, 2008. The Group has issued stand by letters of credit in favour of the Trustees of the Group's defined benefit pension fund amounting to £66.1 million (2008 £40.0 million). The Group is exposed to libel claims in the ordinary course of business and vigorously defends against claims received. The Group makes provision for the estimated costs to defend such claims when incurred and provides for any settlement costs when such an outcome is judged probable. Four writs claiming damages for libel have been issued in Malaysia against Euromoney Institutional Investor and three of its employees in respect of an article published in one of Euromoney's magazines, International Commercial Litigation, in November 1995. The writs were served on Euromoney on 22nd October, 1996. Two of these writs have been discontinued. The total outstanding amount claimed on the two remaining writs is 82.0 million Malaysian ringgits (£15.7 million). No provision has been made in these accounts since the Directors do not believe that Euromoney has any material liability in respect of these writs. 23 ULTIMATE HOLDING COMPANY The Company's ultimate holding company and immediate parent company is Rothermere Continuation Limited, a company incorporated in Bermuda. 24 RELATED PARTY TRANSACTIONS Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. The transactions between the Group and its joint ventures and associates are disclosed below. The following transactions and arrangements are those which are considered to have had a material effect on the financial performance and position of the Group for the period. Ultimate Controlling Party The Company's ultimate controlling party is the Viscount Rothermere, the Company's Chairman. Transactions with Directors Other than remuneration there were no material transactions with Directors of the Company during the period. For the purposes of IAS 24, Related Party Disclosures, Executives below the level of the Company's Board are not regarded as related parties. Transactions with joint ventures and associates Associated Newspapers Limited (ANL) has a 45% shareholding in Fortune Green Limited. During the year the Group received revenue for newsprint, computer and office services of £0.4 million (2008 £0.3 million). Amounts due from Fortune Green Limited at 29th March, 2009 were £16,000 (2008 £44,000). ANL has a 20% share in the Newspapers Licensing Agency (NLA) from which royalty revenue of £1.8 million was received (2008 £1.6 million). Commissions paid on this revenue total £0.2 million (2008 £0.3 million). The amount due to the NLA on 29th March, 2009 was £0.2 million (2008 £0.2 million). Daily Mail and General Holdings Limited (DMGH) has a 15.8% share holding in The Press Association. During the year the Group received services amounting to £0.8 million (2008 £0.6 million) and the net amount due from the Press Association as at 29th March, 2009 was £82,000 (2008 £23,000). During the period, ANL received services from companies in which directors have an interest totalling £3.3 million (2008 £3.9 million) and received revenue of £0.3 million (2008 £0.2 million). The net amount owed by these companies at 29 March 2009 was £0.1 million (2008 £0.5 million). DMGH has a 24.9% holding in Evening Standard Limited (ESL) which it purchased during the period. A loan of £6.3 million due to DMGH from ESL has been provided for in full in the period. During the period, DMG Radio Australia Pty Ltd invoiced DMG Radio Perth Pty Ltd AU$1.7 million (2008 AU$1.3 million). Amounts due from DMG Radio Perth at 29th March, 2009 amounted to AU$0.2 million (2008 AU$0.1 million). Other related party disclosures The most significant change in the period with respect to related party transactions concerns arrangements with Lebedev Holdings Limited, the majority owner of the Evening Standard following the Group's disposal of 75.1% of the business in January 2009. Following the sale of the 75.1% interest in the Evening Standard, ANL entered into an on going services agreement with ESL to provide on going services at a market rate. During the period the Group invoiced ESL £1.8 million net and the amount due from ESL as at 29th March, 2009 amounted to £1.3 million. At 29th March, 2009, the Group owed £1.2 million (2008 £2.1 million) to the pension schemes which it operates. This amount comprised employees' and employer's contributions in respect of March 2009 payrolls which were paid to the pension schemes in April 2009. The Group recharges its principal pension schemes with costs of investment management fees. The total amount recharged during the period was £0.2 million (2008 £0.3 million).

Independent review report to Daily Mail and General Trust plc

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 29th March, 2009 which comprise the income statement, the balance sheet, the statement of recognised income and expense, the reconciliation of movements in equity, the cash flow statement and related notes 1 to 24. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with International Standard on Review Engagements 2410 issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 29th March, 2009 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Deloitte LLP

Chartered Accountants and Statutory Auditors

20th May, 2009LondonUnited KingdomShareholder Information

Financial Calendar (provisional)

200921st May Half Yearly Financial Report published3rd June Interim ex-dividend date5th June Interim record date3rd July Payment of interim dividend23rd July Interim management statement

28th September Pre-close trading update

30th September Payment of interest on loan notes

4th October Year end

26th November Annual results and final dividend announced

2nd December Ex-dividend date

4th December Record date

2010

14th January Annual Report published

10th February Interim management statement

10th February Annual General Meeting

12th February Payment of final dividend

31st March Payment of interest on loan notes4th April Half year end27th May Half Yearly Financial Report publishedContactsDaily Mail and General Trust plc Auditors Northcliffe House Deloitte LLP 2 Derry Street, 2 New Street Square London London W8 5TT EC4A 3BZ Telephone: 020 7938 6000 Email: [email protected] Stockbrokers Registrars JPMorgan Cazenove Limited Equiniti 20 Moorgate Aspect House London Spencer Road EC2R 6DA Lancing West Sussex BN99 6DA

For further investor information and contacts, please visit the Company's website at:

http://www.dmgt.co.uk

Copies of this Half Yearly Financial Report are available electronically from the Company's web site at www.dmgt.co.uk or from the Secretary upon request.

Highlights of the announcement of this Report will be advertised on 21st May, 2009 in London Lite, on 22nd May, 2009 in the Daily Mail, Metro, Western Morning News and the Western Daily Press and on 24th May, 2009 in The Mail on Sunday.

DAILY MAIL & GENERAL TRUST PLC

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