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GPG generates Stg98m net cash in first half


Friday 26th August 2011

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GPG, the investment company set up by Sir Ron Brierley, says first half investment disposals saw net cash generated from investment activity and realisations totalling Stg98 million ($NZ192.1m).

The company, which is in the process of selling its investment portfolio, said capital realisations during the half year to June achieved an overall surplus to book value at December 31 values of Stg4m.

Since the end of the financial year a further Stg14m had been realised.

An interim dividend of 1.15p per share is to be paid, following on from a Stg80m return to shareholders in July, GPG said.

A review of the carrying values of GPG's assets had determined impairments totalling Stg12m should be made.

Trading by GPG's major investment, thread maker Coats, continued a recovery seen in 2010 with an attributable GPG profit of Stg23m.

A plan had been developed for the orderly realisation of shareholder value in regard to each substantive investment, GPG chairman Rob Campbell said.

In some cases the plan sought to have investee companies pursue the appropriate mix of capital management initiatives to enhance value for shareholders and, where appropriate, liquidity for GPG's investment.

For commercial reasons the specifics of each activity could not be disclosed or signalled in advance, Campbell said.

He also said it would be naive to think current capital market turmoil did not adversely affect the assets and liabilities of GPG.

"We are all working very hard to manage every aspect of that which is amenable to our influence whether it be in the positive creation of value or limitation of damage to value."

In the half year revenue from continuing operations rose to Stg760m from Stg643m the year before, while after tax profit on continuing operations was Stg17m, up from Stg11m.

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