Guinness Peat posts $52m loss

Sir Ron Brierley's Guinness Peat Group says its net loss was £22 million in the half-year to June 30, compared with a net loss of £42 million in the same period a year earlier.

The investment company released results to the London Stock Exchange on Saturday morning, accompanied by a short statement from chairman Brierley. The accounting loss of £22 million ($52 million) included a £6 million loss by its global threads business, Coats.

"It is unlikely there will be any significant improvement in the accounting result for the full year to 31 December," Brierley said.

"But GPG will be well placed to resume its traditional upward trend in 2010."

The company reported an operating profit of £19 million, up from £18 million in the same period a year earlier.

Revenue from continuing operations was £664 million, down from £701 million a year earlier.

For further commentary Brierley referred investors to the market update and full profile of the company published on August 10. At that time it gave Coats a net book value of $675 million with the company's gross assets declining from $2.37 billion to $2.14 billion. Creditors, minorities and provisions rose from $1.465 billion to $1.622 billion.

Brierley also noted that GPG "suffered a serious blow" in June with the sudden death of Australia company secretary Bruce Maclean. "Bruce was an integral member of our small management team," Brierley said. Philip Tunstall has joined GPG in Bruce's place.

- AGENCIES