Market Update

RNS Number : 2991S
Guinness Peat Group PLC
15 May 2009
 



GUINNESS PEAT GROUP PLC - MARKET UPDATE  


The company's profile has not changed greatly since the 22 December 2008 update.


The main emphasis in the current year has been to develop exit options to maximise the realisation of those investments which no longer have future potential for GPG. Also, to examine new prospects in the context of changed market conditions. In retrospect, we could have been more aggressive in pursuing new opportunities in earlier months but caution was the overriding influence.


So far, there has been one material divestment (MYOB) and three new holdings, all of which are showing positive returns (although that is not necessarily the preferred outcome in the initial phase of a long term investment strategy).


Our principal operating subsidiary, Coats, has obviously been adversely affected by the economic downturn but to date, trading has held up as well as could be expected.


Attached is a detailed internal valuation of GPG as at 4/5/09. It is unaudited and E & OE but is the management working model and unlikely to contain significant error.




COATS 


The book value of Coats is £299 million comprising:




£m 

Gross assets 


992 

Less creditors minorities & provisions


(693)

Net book value


£299 


The ultimate realisation value of Coats is considered to be significantly in excess of this figure.



  

UK SHARE PORTFOLIO

Share price


£m

  8.9% x Adnams "B"


91.50


2.3

  5.9% x AH Medical Properties


0.17


0.6

  4.2% x Ashley House


0.72


1.4

26.2% x Autologic


0.24


4.0

  4.1% x Brookwell


0.40


0.3

  1.9% x Camper & Nicholson


0.25


0.2

  3.7% x Creative Entertainment    


0.00


0.1

  6.6% x Daniel Thwaites


1.55


6.5

15.2% x Dawson International


0.03


1.0

11.3% x Dickinson Legg


0.18


0.7

  2.8% x Fiberweb


0.52


1.8

  5.4% x M J Gleeson


0.82


2.3

14.4% x Inspired Gaming Group


0.03


0.3

  5.5% x Inspired Gaming Prefs


0.37


1.8

  6.5% x Jersey Electricity "A"


70.00


2.7

  6.4% x Jersey New Water Works


35.00


0.6

  1.1% x M & G Equity


0.01


0.0

  7.0% x Nationwide Accident Repair


0.95


2.8

27.7% x Newbury Racecourse


9.25


8.2

  3.1% x Shepherd Neame "A"


8.00


2.8

  1.1% x Sweet China


0.04


0.0

  6.0% x Sysmedia


0.01


0.0

  5.7% x Third Advance Value    


0.07


0.1

10.9% x 333 Holdings    


1.00


0.3

13.7% x Young & Co's Brewery "A"


4.85


19.3

33.7% x Young & Co's Brewery "NV"


3.95


25.5

Two undisclosed listed companies




0.21




£95.8m


  

AUSTRALIAN SHARE PORTFOLIO

Share price


A$m

  7.7% x A V Jennings


0.33


7.0

71.1% x Canberra Investment Corp


0.68


57.6

  9.8% x Capilano Honey


1.25


0.6

75.6% x Capral


0.08


23.5

55.8% x Capral Notes


58.80


16.4

  4.7% x CSR


1.31


80.1

19.9% x eServglobal


0.43


14.7

13.0% x Farm Pride Foods


0.30


2.2

  5.3% x GME Resources


0.06


0.8

  5.0% x IOOF Holdings


4.06


13.8

24.0% x Maryborough Sugar


1.77


19.8

  7.6% x MetalsX


0.12


10.8

26.7% x MMC Contrarian


0.41


15.6

12.8% x NSX


0.18


1.7

24.2% x Peanut Co of Australia


4.20


7.3

44.4% x Rattoon Holdings


0.12


26.9

  4.2% x Ridley Corp


0.80


10.3

  8.7% x Symex Holdings


0.43


4.8

17.0% x Tandou


0.25


3.8

25.0% x Tooth & Co


0.02


0.6

Sundries including Tourism Property Group,




Tasmanian Pure Foods and 2 undisclosed listed investments


17.7





A$336.0m




=£164.44m

  





AUSTRALIAN TRADING SUBSIDIARIES AND JOINT VENTURES

Australian Country Spinners (50%)





Greens General Foods (72.5%)





Gosford Quarry (100%)




Tafmo (56%)









These companies have an aggregate book value of A$57.0m. Minor progress has been made in terms of cash flow and asset divestments but as profitability has not yet been achieved, no value has been attributed for the purpose of this update.  


In the case of Tafmo, losses have been a necessary product of the development and initial marketing of the company's point-of-sale technology. This is making good progress towards break even, after which the potential for increasing profitability is considerable.





NEW ZEALAND SHARE PORTFOLIO


Share Price

NZ$m

  1.3% x ASB Capital Prefs


0.77


3.5

  4.1% x Allied Farmers


0.49


0.4

  1.5% x Fisher & Paykel Appliances


0.48


2.1

35.0% x Tower    


1.40


95.0

19.4% x Turners Auctions


0.80


4.3

65.6% x Turners & Growers


1.36


93.9




NZ$199.2m




=£76.04m

 



 

SINGAPORE SHARE PORTFOLIO


Share Price

S$m

  0.3% x Isetan (Singapore)


2.96


0.4

17.3% x Pertama Holdings


0.21


8.7




S$9.1m




=£4.13m

  


GPG SIMPLIFIED BALANCE SHEET AT 4/5/09


£m 

Cash at Bank

315 

Coats

299 

Share Portfolio -



UK

96 


Australia

164 


NZ

76 


SQ

4 

Total Assets


954 

Net creditors

(17)

Contingencies, say

(25)

Capital Notes


(149)

NET EQUITY


£763 




1.42 bn shares on issue = 53.73p per share



 





Ron Brierley

Chairman

15 May 2009



UK Contact:


Richard Russell

Company Secretary


+44 20 7484 3370






This information is provided by RNS
The company news service from the London Stock Exchange
 
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