Last checked at 14 Aug 2009 07:00
GUINNESS PEAT GROUP PLC - MARKET UPDATE
The company's profile has not changed greatly since either of the two previous updates.
However, that rather disguises the fact that "things are happening" which are not yet ready for formal reporting. GPG is increasingly recovering a positive outlook on future prospects, both generally and specifically in respect of some investments which have been disappointing in the past.
GPG's Interim Report to 30 June will be issued at the end of the month and will again show an accounting loss for the period. This is mainly due to legacies from the earlier portfolio upheavals and our share of losses incurred by Coats and Capral (both of which have survived a very difficult half year).
The Board is still focussed on returning value to shareholders as announced in 2008 and even if it is not possible to adhere to the original timetable of 2010 it will certainly occur as soon as possible thereafter. In the meantime, we may have to endure another poor result at31 December 2009.
Share market conditions have greatly improved in recent months but we anticipate further repercussions from the "credit crisis" with opportunities to emerge which will be more favourable than over investing at the present time. GPG's balance sheet and liquidity continues to be a great strength in those circumstances.
Attached is a detailed internal valuation of GPG as at 10/8/09. It is unaudited and E & OE but is the management working model and unlikely to contain significant error.
Notwithstanding the accounting losses incurred in 2008/09, it is reassuring to note the company's net asset value as per the various Market Updates has held up reasonably well at 47.94p (47.68p at 4/5/09 and 45.59p at 22/12/08).
COATS
The book value of Coats is £272 million comprising:
| £m | ||
| Gross assets | 862 | |
| Less creditors minorities & provisions | (590) | |
| Net book value | £272 |
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" | | 92.00 | | 2.3 |
| 5.9% x AH Medical Properties | | 0.17 | | 0.6 |
| 3.6% x Ashley House | | 0.81 | | 1.4 |
| 26.2% x Autologic | | 0.33 | | 5.5 |
| 4.1% x Brookwell | | 0.42 | | 0.2 |
| 4.6% x Chrysalis Group | | 0.67 | | 2.1 |
| 3.7% x Creative Entertainment | | 0.00 | | 0.0 |
| 6.8% x Daniel Thwaites | | 1.62 | | 7.0 |
| 15.2% x Dawson International | | 0.03 | | 1.0 |
| 11.3% x Dickinson Legg | | 0.18 | | 0.8 |
| 5.7% x Fuller Smith & Turner | | 4.75 | | 8.8 |
| 5.7% x M J Gleeson | | 0.74 | | 2.2 |
| 14.2% x Inspired Gaming Group | | 0.04 | | 0.4 |
| 5.5% x Inspired Gaming Prefs | | 0.33 | | 1.7 |
| 6.5% x Jersey Electricity "A" | | 69.00 | | 2.6 |
| 6.4% x Jersey New Water Works | | 35.00 | | 0.6 |
| 1.1% x M & G Equity | | 0.02 | | 0.0 |
| 7.0% x Nationwide Accident Repair | | 0.93 | | 2.8 |
| 27.7% x Newbury Racecourse | | 7.25 | | 6.4 |
| 3.1% x Shepherd Neame "A" | | 7.42 | | 2.6 |
| 1.1% x Sweet China | | 0.03 | | 0.0 |
| 6.0% x Sysmedia | | 0.01 | | 0.0 |
| 5.7% x Third Advance Value | | 0.10 | | 0.1 |
| 10.9% x 333 Holdings | | 1.00 | | 0.2 |
| 14.2% x Young & Co's Brewery "A" | | 4.58 | | 18.9 |
| 33.7% x Young & Co's Brewery "NV" | | 4.03 | | 26.0 |
| | | | £94.2m | |
| AUSTRALIAN SHARE PORTFOLIO | Share price | A$m | ||
| 7.7% x A V Jennings | 0.34 | 7.2 | ||
| 10.6% x Babcock & Brown Power | 0.08 | 5.8 | ||
| 71.2% x Canberra Investment Corp | 0.55 | 46.6 | ||
| 9.8% x Capilano Honey | 1.20 | 0.6 | ||
| 75.6% x Capral | 0.10 | 29.4 | ||
| 55.8% x Capral Notes | 58.80 | 16.4 | ||
| 4.7% x CSR | 1.99 | 121.9 | ||
| 19.0% x eServglobal | 0.41 | 15.5 | ||
| 13.0% x Farm Pride Foods | 0.27 | 1.9 | ||
| 5.8% x GME Resources | 0.11 | 1.0 | ||
| 1.3% x IOOF Holdings | 4.55 | 13.2 | ||
| 24.0% x Maryborough Sugar | 2.10 | 23.4 | ||
| 7.6% x MetalsX | 0.12 | 10.3 | ||
| 28.6% x MMC Contrarian | 0.43 | 17.4 | ||
| 12.8% x NSX | 0.25 | 2.4 | ||
| 24.8% x Peanut Co of Aust | 4.20 | 7.6 | ||
| 44.4% x Rattoon Holdings | 0.20 | 4.5 | ||
| 10.0% x Ridley Corp | 0.95 | 29.4 | ||
| 8.7% x Symex Holdings | 0.53 | 5.9 | ||
| 19.9% x Tandou | 0.26 | 4.6 | ||
| 25.0% x Tooth & Co | 0.01 | 0.3 | ||
| Sundries including Tourism Property Group, | ||||
| Tasmanian Pure Foods and 4 undisclosed listed investments | 33.0 | |||
| A$398.3m | ||||
| =£199.75m | ||||
| AUSTRALIAN TRADING SUBSIDIARIES AND JOINT VENTURES | ||||
| Australian Country Spinners (50%) | ||||
| Greens General Foods (72.5%) | ||||
| Gosford Quarry (100%) | ||||
| Touch Networks (56%) | ||||
These companies have an aggregate book value of A$57 million. All have had problems of one kind or another which are gradually being resolved but as profitability has not yet been achieved, no value is attributed for the purpose of this update.
Touch Networks (formerly Tafmo) continues to make good progress towards what we believe will ultimately be a very successful investment.
| NEW ZEALAND SHARE PORTFOLIO | Share Price | NZ$m | ||
| 1.3% x ASB Capital Prefs | 0.71 | 3.2 | ||
| 4.1% x Allied Farmers | 0.35 | 0.5 | ||
| 1.3% x Fisher & Paykel Appliances | 0.84 | 7.3 | ||
| 35.0% x Tower | 1.74 | 118.1 | ||
| 19.4% x Turners Auctions | 0.80 | 4.2 | ||
| 65.6% x Turners & Growers | 1.55 | 107.0 | ||
| NZ$240.3m | ||||
| =£96.81m | ||||
| SINGAPORE SHARE PORTFOLIO | Share Price | S$m | ||
| 0.3% x Isetan (Singapore) | 3.39 | 0.5 | ||
| 17.3% x Pertama Holdings | 0.25 | 10.6 | ||
| S$11.1m | ||||
| = £4.61m |
| GPG SIMPLIFIED BALANCE SHEET AT 10/8/09 | ||
| £m | ||
| Cash at Bank | 308 | |
| Coats | 272 | |
| Share Portfolio - | ||
| UK | 94 | |
| Australia | 200 | |
| NZ | 97 | |
| SQ | 5 | |
| Total Assets | 976 | |
| Net creditors | (22) | |
| Contingencies, say | (25) | |
| Capital Notes | (162) | |
| NET EQUITY | £767 | |
| 1.60 bn shares on issue = 47.94p per share | ||
Ron BrierleyChairman14 August 2009
UK Contact:
Richard RussellCompany Secretary
+44 20 7484 3370