Sharechat Logo

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

Monday 1st March 2010

Text too small?

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.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

GPG still wrangling UK pension liability, Coats 1H earnings more than doubles
Guinness Peat completes $1.4 billion in asset sales, turns focus to Coats
Guinness Peat exits last asset outside Coats, sells Tower stake for $118 mln
GPG focuses on cost cutting as restructuring plan is delayed by UK pensions regulator
GPG names new non-executive chairman of Coats
GPG says UK regulator extends investigation into its pension schemes
GPG pension headache puts brake on wind-down plan
GPG sells stake in ASX-listed Ridley Corp for A$54 mln in cash
GPG to reap 92 mln pounds from latest round of asset sales
GPG thrown curved ball as UK regulator looks at Coats pension plan