Interim Results

GUINNESS PEAT GROUP PLC 1 September 1999 GUINNESS PEAT GROUP plc ('GPG' or 'the Company') Interim results for the six months ended 30 June 1999 It is very pleasing that GPG's last shareholder report this century delivers a clear vision of substantial achievement since the inception of the new Board in 1991. The latest result is dominated by the sale of Tyndall shares and to that extent it only formalises what has already been well documented and reported earlier in the year. Nevertheless, the accounts (incorporating a record profit of £106 million and a very strong balance sheet) are impressive and certainly the best which GPG has yet produced. The Tyndall surplus (£95 million) more accurately represents an accretion of value throughout the 1990's rather than a sudden gain arising in the current year. This is consistent with the Company's philosophy of steadily growing long term value rather than adhering to the artificial demands of arbitrary accounting periods. There were several other sources which supplemented the Tyndall contribution, most notably the sale of the Villa D'Este shares for a gain of £2.9 million. This released £5.7 million of capital which had little marketability and only nominal income. Other useful sales were Sears plc, Sketchley plc and FAI Insurance. New investments of note include Hillsdown Holdings (since sold), Joe White Maltings, Dawson International and Coats Viyella. The latter two are textile companies which has not been a favoured area for GPG but we made a judgement that some UK stocks were too cheap notwithstanding the bleak industry outlook. So far at least, this has been partly vindicated. Last year's dividend was 0.6 pence per share. In the present circumstances, there is no reason why a larger proportion of current cash income should not be distributed. The Board is actively exploring the most effective and economic method of implementation, particularly having regard to the diverse geographic spread of the Company's shareholders. Cash on deposit at the date of this report is £170 million. There has been a modest level of reinvestment post Tyndall but essentially we are awaiting better buying opportunities in anticipation of a market downturn in the foreseeable future. If this does not eventuate, GPG's results may be relatively less favourable than comparable fully invested entities. GPG leaves the 1990's on a high note and, subject to the foregoing factors, it enters the 'Zero's' with every expectation of continued successful performance. Ron Brierley, London, 1 September 1999 Enquiries: Guinness Peat Group plc 0171 236 0336 Blake Nixon, Executive Director Square Mile Communications 0171 601 1000 Kevin Smith GUINNESS PEAT GROUP plc Interim results for the six months ended 30 June 1999 Consolidated Profit and Loss Account 6 months 6 months Year ended ended ended 30 June 30 June 31 December 1999 1998 1998 Unaudited Unaudited Restated £000 £000 £000 Group turnover Continuing operations 19,250 6,169 14,806 Discontinued operations 49,163 75,621 161,219 ______________________________ 68,413 81,790 176,025 ______________________________ Group operating profit Continuing operations 8,134 10,425 13,760 Discontinued operations 11,048 5,448 14,436 ______________________________ 19,182 15,873 28,196 Share of operating profit of joint ventures and associates - continuing operations 735 175 1,618 ______________________________ 19,917 16,048 29,814 Profit on disposal of businesses (see note 2 below) 95,498 - - _______________________________ Profit before interest payable 115,415 16,048 29,814 Interest payable (218) (268) (404) ________________________________ Profit before taxation 115,197 15,780 29,410 Taxation (5,893) (909) (2,810) ________________________________ Profit after taxation 109,304 14,871 26,600 Minority interests (2,893) (2,634) (6,526) ________________________________ Profit attributable to Ordinary Shareholders 106,411 12,237 20,074 Dividends proposed - - (2,515) ________________________________ Profit retained for the period 106,411 12,237 17,559 ________________________________ Earnings per ordinary share-basic (pence) 23.00 2.79 4.48 Dividends per ordinary share (pence) - - 0.55 Notes 1 Abridged accounts (Companies Act 1985) - The information for the year ended 31 December 1998 has been extracted from the latest published accounts as adjusted for the presentational change described in note 5. Those accounts have been delivered to the Registrar of Companies, and the report of the auditors was unqualified. 2 Tyndall Australia Limited - On 6 May 1999 GPG's 49.75% holding in Tyndall Australia was sold to Royal & Sun Alliance. In addition to the profit on disposal, GPG consolidated a profit after tax and minority interests of £2.7 million into its results to 30 June 1999 in respect of Tyndall Australia's trading results for the period prior to disposal. Tyndall Australia's contribution after taxation and minority interests for the six months to 30 June 1998 was £2.3 million (£6.1 million for the year to 31 December 1998). There is no tax charge attributable to the profit on disposal. 3 Earnings per share - The calculation of earnings per Ordinary Share is based on profit after taxation attributable to shareholders and the weighted average number of 462,687,435 Ordinary Shares in issue during the period. The comparatives for periods to June 1998 and December 1998 have been adjusted for the recent Capitalisation Issue which took place in May 1999. 4 Dividends - The directors have not recommended the payment of an interim dividend. Last year's final dividend of 0.60p a share has been adjusted for the 1999 Capitalisation Issue. 5 Presentational change - the directors have amended the presentation of disposals of current asset investments to include the proceeds realised from such disposals within turnover, where previously they recognised only the gains arising from these disposals (as investment income). Comparative figures have been re-stated accordingly. 6 Publication - This statement is being sent to shareholders and copies will be available at the registered office of the Company, 2nd Floor, 21-26 Garlick Hill, London, EC4V 2AU. GUINNESS PEAT GROUP plc Interim results for the six months ended 30 June 1999 Consolidated Balance Sheet 30 June 31 December 1999 1998 Unaudited Audited £000 £000 Commercial and investment activities Fixed assets Intangible assets - 612 Tangible assets 361 3,266 Land for development 2,861 2,755 Investments 101,434 82,505 __________________________ 104,656 89,138 Current assets Debtors 9,631 16,269 Development work in progress 2,976 2,981 Investments 9,316 10,341 Cash at bank 184,476 72,854 __________________________ 311,055 191,583 __________________________ Life assurance business Assets of Life business - 409,679 _________________________ TOTAL ASSETS 311,055 601,262 _________________________ Commercial and investment activities Creditors: amounts falling due within one year Trade and other creditors (12,072) (19,635) Borrowings (3,102) (2,931) Creditors: amounts falling due after one year Trade and other creditors (51) (891) Borrowings (1,284) (11,263) Provisions for liabilities and charges (2,803) (3,221) _______________________ (19,312) (37,941) _______________________ Life assurance business Long term assurance funds - (326,906) Other liabilities - (26,674) _________________________ - (353,580) _________________________ Net assets 291,743 209,741 _________________________ Minority interests 3,430 42,689 Capital and reserves Share capital 46,953 41,911 Share premium 21,684 26,060 Profit and loss account 219,676 99,081 ________________________ SHAREHOLDERS' FUNDS 288,313 167,052 ________________________ 291,743 209,741 ________________________ Net assets per share attributable to shareholders (pence) 61.41 36.24 (Australian cents) 146.23 98.29 (New Zealand cents) 182.66 114.13

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