GPG pledges better returns

Investment company Guinness Peat Group, which reported a £36 million ($78 million) loss for last year, is working on a proposal to return value to shareholders.

Chairman Sir Ron Brierley said the result was worse than expected, mainly because of items largely beyond the company's control.

Those items included foreign exchange fluctuations which moved from a gain of £7 million at the interim report to a loss of £8 million for the full year.

But the company also made a gain of £10 million on the sale of shares in business management firm Myob.

The capital reconstruction of Australian aluminium product supplier Capral was a notable achievement.

"The reduction in our shareholding to 44 per cent, combined with earlier trading losses, crystallised a deficit of £15 million but, hopefully, [it will be] the last loss from this source," Sir Ron said.

"Now, for the first time in many years, Capral has a sound financial and trading platform from which to produce acceptable returns, notwithstanding the challenges still remaining."

The Coats business was right in the firing line of the global downturn, which was particularly evident in the textile industries, Sir Ron said.

GPG's standard 1p dividend and one-for-10 bonus issue had been maintained.

Sir Ron said GPG's commitment to returning value to shareholders this year had been restored as a top priority for the board. Shares closed up 5c at 87c.

- NZPA