GPG Happy despite Unspectacular Half-year Result

By Phil Boeyen, ShareChat Business News Editor

Tuesday 4th September 2001

Investment company Guinness Peat Group says it's in a very positive and productive mood even though its half-year result is much lower than last year.

GPG has announced a 6-month realised profit of £10 million, which it describes as unspectacular compared with last year's £106 million. The first half last year included the sale of Tyndall shares.

Notwithstanding the difference in profit, GPG says the half-year has been very satisfactory, and is reminding investors that the accounting result of any 6-month period is not an accurate guide to the company's real progress and prospects, which must be measured over a much longer time.

In the meantime the company is comparing its positive outlook with the Brierley Investments' halcyon days of the '70s and '80s, and believes the next few years will see GPG's peak achievements, with, hopefully, a share price to match performance and value.

The main contributions to the latest results came from selling up shares in Tarmac, Seven Network and Hudson Conway and a special dividend from Dawson International. Since balance date there has been a gain from the sale of shares in winemaker Montana, which were bought by Lion Nathan.

New investments include 18% of Enza, and stakes in Inchcape, London Stock Exchange, GUD Holdings, IAMA and TAB Queensland. GPG now ranks Joe White Maltings and Wrightsons as "associated" companies, with holdings of 44% and 21% respectively. It is also the largest shareholder in real terms of Brickworks with 10% of the nominal issued capital.

GPG says its financial position remains very strong, even after the £19 million reduction of capital by way of the redeemable note issue. It is maintaining a high but revolving level of liquidity, which it admits has a cost in the short term but provides strength and flexibility to investment decisions.

There will be no interim dividend payment.

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