GPG posts profit jump

Guinness Peat Group (GPG) posted a 223 per cent rise in annual net profit on the back of several asset sales.

GPG, the investment vehicle of Sir Ron Brierley, reported a net profit of £97 million ($265 million), up from £30 million the previous year.

Sir Ron said the sale of GPG's shares in the hotel group De Vere, as well as the sale of the British fire protection business, Staveley Fire Services were major contributors to the profit.

GPG received £17.7 million for Staveley, and is understood to have netted about £30 million from its shares in De Vere.

During the year GPG also sold its 19.9 per cent stake in forestry and biotech investment firm Rubicon through an institutional book build, for $58.4 million.

Sir Ron said while the 2005 result was excellent, GPG's performance was better measured over a longer period of time than just one year.

"Therefore it remains to be seen whether the 2005 result can be repeated in 2006, but what is more certain is that the company's overall growth in value should be very satisfactory in the next few years," he said.

London-based GPG is listed on the London, Australian and New Zealand stock exchanges.

In early trading on the local bourse today shares in GPG were unchanged at $2.48, just shy of the record high of $2.49 they hit yesterday.

- NZPA