Three Months Interim Financial Report

TO THE SHAREHOLDERS OF THE GLEANER COMPANY LIMITED CONSOLIDATED THREE MONTHS INTERIM FINANCIAL REPORT TO MARCH 31, 1998 (UNAUDITED)
	GROUP Three Months 31st March, 1998 $000's	GROUP Three Months 31st March, 1997 $000's
Profit & Loss
Turnover	337,626	308,599
Other Revenue	21,686	11,525
Total Revenue	359,312	320,125
Expenditure	(352,305)	(313,695)
Trading Profit before Company Tax	7,007	6,429
Reserve for Company Taxation	(1,856)	(1,733)
Profit after Company Taxation	5,151	4,696

Balance Sheet
Ordinary Stockholders' Funds
Share Capital	131,024	98,268
Reserves	545,644	478,255
Deferred Taxation	14,828	16,959
Long-term liabilities	17,635	38,341
Total Funds employed	709,131	631,823
Represented by:
Working Capital	340,197	252,820
Fixed assets and investments	367,654	377,477
Long-term receivable	1,280	1,526
	709,131	631,823

Stock units in issue (000)	262,048	196,536
Earnings per stock unit on profit after taxation attributable to stockholders of parent company	$0.02	$2.39
Interim dividends per ordinary stock unit	$0.05	$0.05
Shareholders' fund per ordinary stock unit	$2.58	$2.93

We hereby present the first quarterly Report of the Group as at march 31, 1998. The Group Financial Accounts for the three months ended March 31, 1998, include the Company's nine wholly-owned subsidiaries - Popular Printers Limited, Sangster's Book Stores Limited, The Book Shop Limited, The Gleaner On-Line Limited, Selectco Publications Limited, Associated Enterprise Limited, The Gleaner Company (NA) Limited, The Gleaner Company (NA) Incorporated and The Gleaner company (UK) Limited. Sangster's Book Stores Limited acquired The Book Shop Limited in February 1997. In this same month The Gleaner On-Line Limited commenced operations. The Group Financial Accounts for three months ended march 31, 1998, show, before tax, a trading profit of $7M compared with a trading profit of $6.4M for the same period of 1997. The Group Profit, after tax, for the first three months of 1998 was $5.2M compared with a profit of $4.7M for the same period 1997. Dividends An interim capital distribution of 5 cents per stock unit (less transfer tax of 7½%) was paid on March 31, 1998, to stockholders on the record at the close of business on March 16, 1998. O.F. Clarke Chairman & Managing Director C.S. Roberts Financial Director