Textile interests fuel GPG recovery

Guinness Peat Group chairman Sir Ron Brierley. Photo / Greg Bowker
Guinness Peat Group chairman Sir Ron Brierley. Photo / Greg Bowker

Sir Ron Brierley's investment company Guinness Peat Group reported a full-year net profit of £46 million ($99 million), a turnaround from the £36 million loss the year before, with a major contribution from textile company Coats.

The company this month published a "strategy to realise value", with the announcement seen as indicating a change in control. An initial capital return to shareholders of at least £75 million is planned for 2011. For 2010, GPG reported revenue from continuing operations of £1.35 billion, up from a restated £1.17 billion a year earlier, while profit before tax from continuing operations rose to £73 million from £7 million.

Attributable GPG profit from Coats was £39 million, compared with a £3 million loss in 2009, GPG said yesterday.

Coats' industrial business had a strong sales recovery from a year earlier, while the crafts business had modest sales growth.

The accounts show a loss before tax from continuing operations of £12 million for the parent group in the year, while Coats' was £69 million.

The GPG result also included a £16 million contribution to profit from the disposal of GPG's investment in Maryborough Sugar Factory and a trading contribution from Capral of £2 million, despite poor market conditions in its sector, GPG said.

Good progress was made in disposing of non-core investments in the year and in positioning some investments for disposal in 2011.

Net assets rose by £118 million to £1.06 billion at December 31, partly as a result of the profit contribution and also partly from foreign exchange gains of £58 million recognised in reserves, GPG said.

The capital return is expected to be carried out through a scheme of arrangement, with shareholders receiving a cash payment in return for cancellation of a proportion of their GPG shareholding. GPG said it intended to send a circular to shareholders ahead of the annual meeting, due to be held in Auckland in June.


Get the news delivered straight to your inbox

Receive the day’s news, sport and entertainment in our daily email newsletter


© Copyright 2017, NZME. Publishing Limited

Assembled by: (static) on production bpcf04 at 24 May 2017 15:59:58 Processing Time: 398ms