Business
Half Year Results to 30 June
Half Year Results to 30 June.
About this update from Coats Group Plc
[{"type":"text","content":"\n RNS Number : 6532R Guinness Peat Group PLC 25 August 2010 \n \n\nRESULTS OF GUINNESS PEAT GROUP PLC (\"GPG\")\nFOR THE SIX MONTHS ENDED 30 JUNE 2010\n \nCHAIRMAN'S STATEMENT\n \n \nAfter two disappointing years in 2008/09, GPG returned to a modest level of profit in the first half of 2010. That was mainly due to a vastly improved result from Coats, as investment returns still showed a deficit after Note interest and overheads.\n \nA small profit at Capral (a long time problem for GPG) is an encouraging sign after the previous 7 years of losses.\n \nBoth Coats and Capral still have a long way to go but, hopefully, the actual and intangible resource which GPG has invested over the years is now finally starting to pay off.\n \nThree other events which have had little profile but have impact for the future:\n \n· eServGlobal Ltd, in which we have a 19% interest, sold its USP business to Oracle for A$107 million and is now examining capital management options;\n \n· our former subsidiary, MMC Contrarian made a major acquisition of life insurance and wealth management businesses from BUPA and changed its name to ClearView Wealth Ltd. We now hold 48% of the enlarged company, operating in an industry where GPG has had considerable success in the past;\n \n· the acquisition of 20% of Ridley Ltd, Australia's leading producer of salt and animal stockfeeds (GPG's predecessor, Industrial Equity Ltd previously owned most of the salt business). After an unsuccessful North American expansion, Ridley is restoring the value of its Australian operations and we believe it has a promising future ahead.\n \nSeveral years ago we announced we were working towards a release of value to shareholders.\n \nSubsequently, those plans have followed a rather erratic course.\n \nFirst, the global credit crisis intervened and then the Australian demerger proposal did not find favour with various institutional shareholders.\n \nHowever, it is inescapable that the present corporate model no longer works for GPG and we are now revisiting alternative capital restructuring proposals and will shortly be appointing 3 new Directors to assist in this task.\n \nAs most shareholders will be aware, Tony Gibbs recently left the Board after 16ye...