GPG first-half loss narrows

Monday 31st August 2009

Guinness Peat Group, the investment company chaired by Ron Brierley, narrowed its first-half loss as it returned to profit on its investment income while warning of ongoing weakness at its Coats threadmaker business.

Its shares gained.

GPG posted a 22 million pound loss, or 1.36 pence a share, in the six months ended June 30, from a loss of 42 million pounds, or 2.72 cents a year earlier, the London-based company said in a statement. Operating profit rose to 19 million pounds from 18 million pounds a year earlier, as investment segment posted a 14 million pound profit for the period from a 7 million pound loss a year earlier.

“It is unlikely there will be any significant improvement in the accounting result,” Brierley said. Still, “GPG will be well placed to resume its traditional upward trend in 2010.” The result included a six million pound loss from Coats.

The shares jumped 10% to 88 cents and have declined 12% this year.The company won’t pay an interim dividend after making a year-earlier payment of 0.91 pence per share.

Earlier this month, Brierley said the investment company may not meet its own 2010 deadline for a “substantial release of value.” Still, the results would “disguise the fact that things are happening which are not yet ready for formal reporting.”

Last week Capral, GPG’s Australian aluminium supplier, announced a proposed recapitalisation of some A$47 million to bolster its balance sheet, including a further investment of A$7.3 million and temporary supplier credit guarantee by the parent company.

Businesswire.co.nz

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