Investment company Guinness Peat Group says its net assets increased by £118 million to £1.06 billion ($2.28 billion) for the year to December as it prepares to wind down and return capital to shareholders.
Investment company Guinness Peat Group says its net assets increased by £118 million to £1.06 billion ($2.28 billion) for the year to December as it prepares to wind down and return capital to shareholders.
The increase was boosted by foreign exchange gains of £58 million and resulted in the Group’s net asset backing per share rising 12.3% to 54.63 pence.
GPG, which announced it will hold its annual meeting in Auckland on June 8, reported net profit of £46 million compared to a loss of £36 million in 2009.
Its biggest investment, Coats Group, generated a profit of £39 million compared to a £3 million loss in 2009.
The company planned to pay a dividend of 1 pence a share when it returns capital to shareholders later this year.
GPG has announced an orderly sell down of its assets including its shareholdings in NZX-listed companies Tower and Turners & Growers. It intends returning at least £75 million ($158 million) to shareholders under a scheme of arrangement where each GPG shareholder will receive cash in return for a cancellation of shares.
The company, formerly chaired by Sir Ron Brierley, said further details of the capital return will be provided prior to the annual meeting, held in New Zealand for the first time.
GPG has said it intends keeping thread maker Coats, which makes up roughly one third of the investment portfolio, until an alternative exit strategy is considered.
GPG’s new chairman Mark Johnson said Coats had an “excellent” performance, with strong sales recovery in the industrial business and modest growth in Crafts.
