Guinness Peat puts value return back on priority list as losses continue

Monday 1st March 2010

Guinness Peat Group said making a ‘value return’ to shareholders is its top priority in the next two months as its businesses recover from recession.

The company reported a net loss of 38 million pounds, or 2.25 pence per share, for the 12 months ended December 31, from 50 million pounds, or 3.24 pence in 2008, the company said in a statement.

The full-year result was worse than the company had expected, including a full-year loss of 8 million pounds on foreign exchange fluctuations, compared with a 7 million pound gain in the first half.

Coats, the company’s biggest investment, reported a loss of 3 million pounds, which it attributed to a “mismatch” of tax in various countries of 21 million pounds against earnings of 18 million pounds.

“In 2008, GPG committed to returning value to shareholders in 2010 but which was subsequently qualified by global financial conditions in 2008,” Brierley said in the statement. That objective has now been restored as a top priority and the board is actively working on proposals for its early implementation.”

A detailed announcement is expected before the annual shareholders’ meeting on May 7. The company’s shares rose 4.9% to 86 cents on the NZX today.

The global financial crisis frustrated Guinness Peat’s touted value return, which it hasn’t detailed to date. The gesture to shareholders was to coincide with the retirement of Brierley, a corporate raider who first came to prominence in the 1960s and steered the company that used to bear his name before being squeezed out and forming Guinness Peat.

Coats repaid 81 million pounds of debt last year on the back of “continuing strong cash flow.”

Shareholders’ funds fell for a second year to 867 million pounds. The company will pay a final dividend of 1 pence per share and offer a one-for-10 bonus issue.

Businesswire.co.nz

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