GPG moves to 25% of Time Products

By Phil Boeyen, ShareChat Business News Editor

Friday 27th April 2001

Guinness Peat (NZSE: GPG) now holds just under 25% of British luxury goods company Time Products, which says it is continuing to consider returning surplus cash to shareholders.

Time Products this week announced its annual result for the year ended January, with pre-tax profit increasing to £9.1 million from £7.4 million the previous year.

This was despite a fall in sales from £64.4 million to £59.3 million. The company says the fall in turnover was mainly as a result of selling its Judith Leiber division, a luxury handbag manufacturer based in New York, in September last year for £9.3 million.

Sales were also affected by the sale of the company's overseas watch distribution businesses the previous year.

The company has spent two years restructuring operations and chairman, Marcus Margulies, says it is continuing to explore the possibilities open to it in order to maximise shareholder value, including the possible return of surplus cash to shareholders.

"As notified last month, I have made an approach to the company with a view to buying out the other shareholders. Discussions are ongoing and as soon as further details are available they will be announced to shareholders.

"Consideration as to the possibility of returning cash to shareholders has been deferred pending the outcome of these discussions."

In its latest financial statements Time Products had £43.7 million in cash and net assets per share of 179.6 pence.

A recent bid by GPG to tender for shares in the company at £1.50 failed but the corporate investor has since increased its holding from 18% to 24.52%.

Time Products last closed at 177 pence, up 6.5 pence.

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