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Last checked at 
15 May 2009 07:00
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 |
||
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Gross assets |
992 |
|
|
Less creditors minorities & provisions |
(693) |
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Net book value |
£299 |
The ultimate realisation value of Coats is considered to be significantly in excess of this figure.
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UK SHARE PORTFOLIO |
Share price |
£m |
||
|
8.9% x Adnams "B" |
91.50 |
2.3 |
||
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5.9% x AH Medical Properties |
0.17 |
0.6 |
||
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4.2% x Ashley House |
0.72 |
1.4 |
||
|
26.2% x Autologic |
0.24 |
4.0 |
||
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4.1% x Brookwell |
0.40 |
0.3 |
||
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1.9% x Camper & Nicholson |
0.25 |
0.2 |
||
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3.7% x Creative Entertainment |
0.00 |
0.1 |
||
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6.6% x Daniel Thwaites |
1.55 |
6.5 |
||
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15.2% x Dawson International |
0.03 |
1.0 |
||
|
11.3% x Dickinson Legg |
0.18 |
0.7 |
||
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2.8% x Fiberweb |
0.52 |
1.8 |
||
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5.4% x M J Gleeson |
0.82 |
2.3 |
||
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14.4% x Inspired Gaming Group |
0.03 |
0.3 |
||
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5.5% x Inspired Gaming Prefs |
0.37 |
1.8 |
||
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6.5% x Jersey Electricity "A" |
70.00 |
2.7 |
||
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6.4% x Jersey New Water Works |
35.00 |
0.6 |
||
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1.1% x M & G Equity |
0.01 |
0.0 |
||
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7.0% x Nationwide Accident Repair |
0.95 |
2.8 |
||
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27.7% x Newbury Racecourse |
9.25 |
8.2 |
||
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3.1% x Shepherd Neame "A" |
8.00 |
2.8 |
||
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1.1% x Sweet China |
0.04 |
0.0 |
||
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6.0% x Sysmedia |
0.01 |
0.0 |
||
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5.7% x Third Advance Value |
0.07 |
0.1 |
||
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10.9% x 333 Holdings |
1.00 |
0.3 |
||
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13.7% x Young & Co's Brewery "A" |
4.85 |
19.3 |
||
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33.7% x Young & Co's Brewery "NV" |
3.95 |
25.5 |
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Two undisclosed listed companies |
0.21 |
|||
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£95.8m |
||||
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AUSTRALIAN SHARE PORTFOLIO |
Share price |
A$m |
||
|
7.7% x A V Jennings |
0.33 |
7.0 |
||
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71.1% x Canberra Investment Corp |
0.68 |
57.6 |
||
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9.8% x Capilano Honey |
1.25 |
0.6 |
||
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75.6% x Capral |
0.08 |
23.5 |
||
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55.8% x Capral Notes |
58.80 |
16.4 |
||
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4.7% x CSR |
1.31 |
80.1 |
||
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19.9% x eServglobal |
0.43 |
14.7 |
||
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13.0% x Farm Pride Foods |
0.30 |
2.2 |
||
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5.3% x GME Resources |
0.06 |
0.8 |
||
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5.0% x IOOF Holdings |
4.06 |
13.8 |
||
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24.0% x Maryborough Sugar |
1.77 |
19.8 |
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7.6% x MetalsX |
0.12 |
10.8 |
||
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26.7% x MMC Contrarian |
0.41 |
15.6 |
||
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12.8% x NSX |
0.18 |
1.7 |
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24.2% x Peanut Co of Australia |
4.20 |
7.3 |
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44.4% x Rattoon Holdings |
0.12 |
26.9 |
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4.2% x Ridley Corp |
0.80 |
10.3 |
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8.7% x Symex Holdings |
0.43 |
4.8 |
||
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17.0% x Tandou |
0.25 |
3.8 |
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25.0% x Tooth & Co |
0.02 |
0.6 |
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Sundries including Tourism Property Group, |
||||
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Tasmanian Pure Foods and 2 undisclosed listed investments |
17.7 |
|||
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A$336.0m |
||||
|
=£164.44m |
||||
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AUSTRALIAN TRADING SUBSIDIARIES AND JOINT VENTURES |
||||
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Australian Country Spinners (50%) |
||||
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Greens General Foods (72.5%) |
||||
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Gosford Quarry (100%) |
||||
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Tafmo (56%) |
||||
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These companies have an aggregate book value of A$57.0m. Minor progress has been made in terms of cash flow and asset divestments but as profitability has not yet been achieved, no value has been attributed for the purpose of this update. In the case of Tafmo, losses have been a necessary product of the development and initial marketing of the company's point-of-sale technology. This is making good progress towards break even, after which the potential for increasing profitability is considerable. |
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NEW ZEALAND SHARE PORTFOLIO |
Share Price |
NZ$m |
||
|
1.3% x ASB Capital Prefs |
0.77 |
3.5 |
||
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4.1% x Allied Farmers |
0.49 |
0.4 |
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1.5% x Fisher & Paykel Appliances |
0.48 |
2.1 |
||
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35.0% x Tower |
1.40 |
95.0 |
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19.4% x Turners Auctions |
0.80 |
4.3 |
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65.6% x Turners & Growers |
1.36 |
93.9 |
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NZ$199.2m |
||||
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=£76.04m |
||||
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|
|
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SINGAPORE SHARE PORTFOLIO |
Share Price |
S$m |
||
|
0.3% x Isetan (Singapore) |
2.96 |
0.4 |
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17.3% x Pertama Holdings |
0.21 |
8.7 |
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S$9.1m |
||||
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=£4.13m |
||||
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GPG SIMPLIFIED BALANCE SHEET AT 4/5/09 |
||
|
£m |
||
|
Cash at Bank |
315 |
|
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Coats |
299 |
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Share Portfolio - |
||
|
UK |
96 |
|
|
Australia |
164 |
|
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NZ |
76 |
|
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SQ |
4 |
|
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Total Assets |
954 |
|
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Net creditors |
(17) |
|
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Contingencies, say |
(25) |
|
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Capital Notes |
(149) |
|
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NET EQUITY |
£763 |
|
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1.42 bn shares on issue = 53.73p per share
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Ron Brierley
Chairman
15 May 2009
UK Contact:
Richard Russell
Company Secretary
+44 20 7484 3370
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