KEY POINTS:
Guinness Peat Group (GPG) reported a full year net loss of £50 million ($142.6 million), but chairman Sir Ron Brierley described the figure as "largely meaningless for present analytical purposes".
"A number of portfolio writedowns have been necessary as a consequence of the global financial crisis, although we believe many of these will ultimately recover as a more realistic reflection of intrinsic value," Sir Ron said.
"Not so good are those which are the product of poor investment judgment in earlier years and where we must accept a permanent loss."
GPG remained focused on returning value to shareholders in 2010, he said.
"... but that must now be qualified by the unprecedented global financial stringency, the repercussions from which are likely to continue to emerge for some time to come".
Investment company GPG's principal operating subsidiary Coats was affected by the economic downturn with a loss of £4m, Sir Ron said.
That arose from an unusual circumstance where tax of £20m exceeded the net profit of £16m because of country mismatches. There was no immediate solution other than a corresponding offset in future if and when loss making units returned to profit.
Coats would continue to face difficult trading conditions during 2009, but may have some relative advantages from its geographic coverage and its technological superiority over weaker competitors, Sir Ron said.
The £50m annual net loss compared with a £42m loss in the six months to June and a profit of £129m in 2007.
"However, all those figures are largely meaningless for present analytical purposes as they contain `exotic' accounting entries which distort actual performance."
The board had decided to maintain a standard 1p dividend and a 1 for 10 bonus issue.
GPG shares were down 5c to 64c in mid-afternoon.
- NZPA
