GPG posts big jump in half year profit

Guinness Peat Group (GPG), the investment vehicle of Sir Ron Brierley, has reported a bumper half year profit.

British-based GPG reported a £50 million ($131 million) net profit for the six months ended June, up from £7 million for the same period the year earlier.

Much of the profit was from the sale of GPG's shares in hotel group De Vere, which is understood to have netted about £30 million.

The introduction of International Financial Reporting Standards (IFRS) also made for a higher paper profit. GPG chairman Sir Ron said using IFRS meant the profit was at least £8 million higher than it would have been using GPG's traditional and more conservative accounting methods.

"A more valid comparable figure, therefore, would be nearer to £42 million, which is still a good result for the period," he said.

Under EU regulations GPG had to adopt IFRS from January 1 this year.

Earnings per share were 5.23p, up from 0.81p the previous June year.

Another driver behind the increased profit was an improved performance by GPG subsidiary Coats. The thread company reported a net profit of £17.7 million, which included currency gains of £12 million.

Since the balance date GPG has sold two British-based businesses for £18 million.

GPG is listed on the London, Australian and New Zealand stock exchanges.

In early trading in New Zealand this morning GPG was up 5c at $2.08, having ranged between $1.68 and $2.17 over the past 12 months.

- NZPA