Half Year Results to 30 June

RNS Number : 2308Y

Guinness Peat Group PLC

28 August 2009

 



RESULTS OF GUINNESS PEAT GROUP PLC ("GPG") FOR THE SIX MONTHS ENDED 30 JUNE 2009

CHAIRMAN'S STATEMENT

GPG recently issued a Market Update as at 10 August 2009, which provides a detailed current profile of the company. This is reproduced in full herewith. The Market Update gives our assessment of the net asset position at 10 August, compared to the IFRS accounts which are prepared as at 30 June.

In respect of the formal half year period to 30 June, there was an accounting loss of £22 million. That includes a loss of £6 million by Coats, a detailed analysis of which is available at www.coats.com or a printed copy can be obtained from any of GPG's offices.

GPG suffered a serious blow in June with the sudden death of Bruce Maclean, our Australian Company Secretary. Bruce was an integral member of our small management team and he is greatly missed by all. Mr Philip Tunstall has joined GPG in Bruce's place.

Ron Langley has been appointed a Director of GPG. Many shareholders will be aware of Ron's long experience and record of achievement in the corporate world and he is a valuable addition to the Board.

It is unlikely there will be any significant improvement in the accounting result for the full year to 31 December but GPG will be well placed to resume its traditional upward trend in 2010.

Ron Brierley

Chairman

28 August 2009

Condensed Consolidated Income Statement
			Unaudited		Unaudited		Audited
			6 months to		6 months to		Year to
			30 June		30 June		31 December
			2009		2008		2008
			£m		£m		£m
Continuing Operations
Revenue			664		701		1,381
Cost of sales			(460)		(460)		(964)
Gross profit			204		241		417
Profit on disposal of investments and other investment income/(expense)			18		(5)		61
Distribution costs			(90)		(94)		(180)
Administrative expenses			(113)		(124)		(276)
Operating profit			19		18		22
Share of (loss)/profit of joint ventures			(9)		5		1
Share of profit/(loss) of associated undertakings			3		(14)		(9)
Finance costs			(19)		(24)		(43)
Loss before taxation from continuing operations			(6)		(15)		(29)
Tax on loss from continuing operations			(18)		(27)		(48)
Loss for the period from continuing operations			(24)		(42)		(77)
Discontinued Operations
Gain on discontinued operations			-		1		4
Loss for the period			(24)		(41)		(73)
Attributable to:
EQUITY SHAREHOLDERS OF THE COMPANY			(22)		(42)		(50)
Non-controlling interests			(2)		1		(23)
			(24)		(41)		(73)
Loss per Ordinary Share from continuing and discontinued operations:
Basic (pence)			(1.36p)		(2.72p)		(3.24p)
Diluted (pence)			(1.36p)		(2.72p)		(3.24p)
Loss per Ordinary Share from continuing operations:
Basic (pence)			(1.37p)		(2.75p)		(3.51p)
Diluted (pence)			(1.37p)		(2.75p)		(3.51p)

Condensed Consolidated Statement of Comprehensive Income
		Unaudited		Unaudited		Audited
		6 months to		6 months to		Year to
		30 June		30 June		31 December
		2009		2008		2008
		£m		£m		£m
Loss for the period		(24)		(41)		(73)
Gains on revaluation of fixed asset investments		8		10		22
Losses on cash flow hedges		(1)		-		(11)
Exchange (losses)/gains on translation of foreign operations		(33)		25		114
Actuarial losses on retirement benefit schemes		(17)		(4)		(58)
Net (loss)/income recognised directly in equity		(43)		31		67
Transfers
Transferred to profit or loss on sale of fixed asset investments		(7)		(9)		(80)
Transferred to profit or loss on sale of businesses		(2)		-		(9)
Transferred to profit or loss on cash flow hedges		2		-		1
		(7)		(9)		(88)
Net comprehensive expense for the period		(74)		(19)		(94)
Attributable to:
EQUITY SHAREHOLDERS OF THE COMPANY		(72)		(20)		(71)
Non-controlling interests		(2)		1		(23)
		(74)		(19)		(94)

Condensed Consolidated Statement of Financial Position
		Unaudited		Unaudited		Audited
		30 June		30 June		31 December
		2009		2008		2008
		£m		£m		£m
NON-CURRENT ASSETS
Intangible assets		190		210		218
Property, plant and equipment		463		449		508
Investments in associated undertakings		123		216		126
Investments in joint ventures		43		50		59
Fixed asset investments		169		238		177
Derivative financial instruments		-		2		-
Deferred tax assets		13		13		11
Pension surpluses		25		34		29
Trade and other receivables		24		33		25
		1,050		1,245		1,153
CURRENT ASSETS
Inventories		236		261		261
Trade and other receivables		302		323		302
Current asset investments		8		10		7
Derivative financial instruments		4		4		7
Cash and cash equivalents		317		292		362
		867		890		939
Non-current assets classified as held for sale		-		3		7
TOTAL ASSETS		1,917		2,138		2,099
CURRENT LIABILITIES
Trade and other payables		262		300		306
Current tax liabilities		5		7		8
Capital Notes		-		82		-
Other borrowings		126		119		109
Derivative financial instruments		20		12		20
Provisions		67		90		79
		480		610		522
NET CURRENT ASSETS		387		280		417

Condensed Consolidated Statement of Financial Position (continued)
				Unaudited		Unaudited		Audited
				30 June		30 June		31 December
				2009		2008		2008
				£m		£m		£m
NON-CURRENT LIABILITIES
Trade and other payables				15		14		18
Deferred tax liabilities				20		12		21
Capital Notes				167		132		172
Other borrowings				248		270		295
Derivative financial instruments				3		-		7
Retirement benefit obligations:
Funded schemes				44		1		32
Unfunded schemes				58		54		64
Provisions				18		19		19
				573		502		628
TOTAL LIABILITIES				1,053		1,112		1,150
NET ASSETS				864		1,026		949
EQUITY
Share capital				80		71		71
Share premium account				61		61		61
Translation reserve				83		38		118
Unrealised gains reserve				37		95		36
Other reserves				275		290		281
Retained earnings				267		373		311
EQUITY SHAREHOLDERS' FUNDS				803		928		878
Non-controlling interests				61		98		71
TOTAL EQUITY				864		1,026		949
Net asset backing per share*
Pence				49.96		59.50		56.23
Australian cents				101.78		123.39		115.95
New Zealand cents				127.02		155.58		138.33
*	The net asset backing per share for June 2008 and December 2008 has been adjusted for the 2009 Capitalisation Issue.
Blake Nixon, Director		Approved by the Board on 28 August 2009

Condensed Reconciliation of Consolidated Changes in Equity
6 months ended 30 June 2009
			Share
		Share	premium	Translation	Unrealised	Other	Retained
		capital	account	reserve	gains reserve	reserves	earnings	Total
		£m	£m	£m	£m	£m	£m	£m
Balance as at 1 January 2008		64	61	13	94	295	424	951
Total comprehensive income and expense for the period		-	-	25	1	-	(46)	(20)
Dividends (note 10)		-	-	-	-	-	(13)	(13)
Capitalisation issue of shares		6	-	-	-	(6)	-	-
Scrip dividend alternative		1	-	-	-	-	8	9
Share based payments		-	-	-	-	1	-	1
Balance as at 30 June 2008		71	61	38	95	290	373	928
Balance as at 1 January 2008		64	61	13	94	295	424	951
Total comprehensive income and expense for the period		-	-	105	(58)	(10)	(108)	(71)
Dividends (note 10)		-	-	-	-	-	(13)	(13)
Capitalisation issue of shares		6	-	-	-	(6)	-	-
Scrip dividend alternative		1	-	-	-	-	8	9
Share based payments		-	-	-	-	2	-	2
Balance as at 31 December 2008		71	61	118	36	281	311	878
Total comprehensive income and expense for the period		-	-	(35)	1	-	(38)	(72)
Dividends (note 10)		-	-	-	-	-	(14)	(14)
Capitalisation issue of shares		7	-	-	-	(7)	-	-
Scrip dividend alternative		2	(2)	-	-	-	8	8
Other share issues		-	2	-	-	-	-	2
Share based payments		-	-	-	-	1	-	1
Balance as at 30 June 2009		80	61	83	37	275	267	803

Condensed Statement of Consolidated Cash Flows
				Unaudited
		Unaudited		6 months to		Audited
		6 months to		30 June		Year to
		30 June		2008		31 December
		2009		Re-stated*		2008
		£m		£m		£m
Cash (outflow)/inflow from operating activities
Net cash (outflow)/inflow from operating activities		-		(63)		161
Interest paid		(23)		(28)		(55)
Taxation paid		(11)		(15)		(25)
Net cash (absorbed in)/generated by operating activities		(34)		(106)		81
Cash outflow from investing activities
Dividends received from associated undertakings and joint ventures		6		2		7
Capital expenditure and financial investment		(9)		(12)		(32)
Acquisitions and disposals		-		(20)		(23)
Net cash absorbed in investing activities		(3)		(30)		(48)
Cash (outflow)/inflow from financing activities
Issue of ordinary shares		2		-		-
Equity dividends paid to Company's shareholders		(6)		(5)		(4)
Dividends paid to non-controlling interests		(5)		(2)		(4)
Increase/(decrease) in debt		7		108		(8)
Net cash (absorbed in)/generated by financing activities		(2)		101		(16)
Net (decrease)/increase in cash and cash equivalents		(39)		(35)		17
Cash and cash equivalents at beginning of the period		347		309		309
Exchange (losses)/gains on cash and cash equivalents		(1)		6		21
Cash and cash equivalents at end of the period		307		280		347
Cash and cash equivalents per the balance sheet		317		292		362
Bank overdrafts		(10)		(12)		(15)
Cash and cash equivalents at end of the period		307		280		347

*	Re-stated to reflect certain cash flows arising in the normal course of the Parent Group's investment business as part of operating cash flows, rather than as cash flows from investing activities.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1.	The annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The condensed consolidated financial statements included in this half-yearly financial report have been prepared in accordance with International Accounting Standard 34: Interim Financial Reporting, as adopted by the European Union, and comply with the disclosure requirements of the Listing Rules of the UK Financial Services Authority and the Listing Rules of the Australian Securities Exchange.  After making enquiries, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the forseeable future. Accordingly, they continue to adopt the going concern basis in preparing these condensed consolidated financial statements. Other than the adoption of IAS 1 (2007) ("Presentation of Financial Statements"), IFRS 8 ("Operating Segments") and IFRIC 14 ("IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction"), the same accounting policies, presentation and methods of computation are followed in the condensed consolidated financial statements as applied in the Group's latest annual audited financial statements.
2.	The information for the year ended 31 December 2008 does not constitute statutory accounts (as defined in section 240 of the Companies Act 1985) but has been extracted from the statutory accounts for that year, which have been filed with the Registrar of Companies. The audit report on those accounts did not contain statements under Sections 237(2) or 237(3) of the Companies Act 1985. The audit opinion contained in that report was unqualified but contained an emphasis of matter paragraph drawing attention to the significant uncertainty surrounding the ultimate outcome of the appeal by Coats plc against the European Commission fine of €110.3 million (equivalent to £93.9 million at 30 June 2009 exchange rates). That uncertainty remains as at 30 June 2009 and the independent review report on these condensed consolidated financial statements contains a similar emphasis of matter paragraph. The directors remain of the view that any anticipated eventual payment of the fine is adequately covered by existing provisions. The condensed consolidated financial statements for the six months ended 30 June 2009 have been reviewed - see attached independent review report - but have not been audited. The condensed consolidated financial statements for the equivalent period in 2008 were also reviewed but not audited.
3.	Group foreign exchange movements - during the six months to 30 June 2009, GPG recognised in operating profit £7 million of net foreign exchange gains compared to £7 million of net foreign exchange gains in the six months to 30 June 2008 (£4 million net losses in the year to 31 December 2008).
4.	Tax on loss from continuing operations
						30 June	30 June	31 December
						2009	2008	2008
						£m	£m	£m
	UK Corporation tax at 28.0% (2008: 28.5%)					-	2	2
	Overseas tax					(10)	(10)	(18)
						(10)	(8)	(16)
	Deferred tax					(8)	(19)	(32)
						(18)	(27)	(48)
5.	The Parent Group's significant joint ventures and associated undertakings are as follows:
						30 June	30 June	31 December
						2009	2008	2008
	Australian Country Spinners Ltd					50.0%	50.0%	50.0%
	Autologic Holdings plc					26.2%	21.5%	23.5%
	Green's General Foods Pty Ltd					72.5%	72.5%	72.5%
	The Maryborough Sugar Factory Ltd					24.0%	27.1%	24.0%
	MMC Contrarian Ltd					28.6%	na	26.4%
	Peanut Company of Australia Ltd					24.8%	23.8%	23.8%
	Rattoon Holdings Ltd					44.4%	44.4%	44.4%
	Tower Australia Group Ltd					na	29.7%	na
	Tower Ltd					35.0%	35.0%	35.0%

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued
5.	Significant contributions to the (loss)/profit for the period from Parent Group joint ventures and associated undertakings were:
			30 June	30 June	31 December
			2009	2008	2008
			£m	£m	£m
	Australian Country Spinners Ltd		-	1	4
	Autologic Holdings plc		1	(2)	(4)
	Green's General Foods Pty Ltd		-	(2)	(3)
	Rattoon Holdings Ltd		-	(14)	(12)
	Tower Australia Group Ltd		na	4	4
	Tower Ltd		2	na	5
	Other contributions to the (loss)/profit for the period from joint ventures and associated undertakings, held by operating subsidiaries, include a CIC joint venture £9 million loss (6 months to 30 June 2008: £1 million profit; year to 31 December 2008: £3 million profit). The CIC joint venture loss for the period includes an impairment charge of £12 million (6 months to 30 June 2008: £Nil; year to 31 December 2008: £Nil).

6.	Segmental Analysis - Analysis by activity
										Non
						Thread	Fruit/produce	Aluminium		operating
			Investment			manufacture	distribution	extrusion	Unallocated	(see note)	Total
			£m			£m	£m	£m	£m	£m	£m
	6 months ended 30 June 2009:
	Revenue:
	External sales				1	443	120	84	16	-	664
	Operating result:
	Continuing operations				14	12	4	(9)	(3)	1	19
	6 months ended 30 June 2008:
	Revenue:
	External sales			1		437	120	126	17	-	701
	Operating result:
	Continuing operations			(7)		22	8	(2)	(4)	1	18
	Year ended 31 December 2008:
	Revenue:
	External sales				2	888	219	241	31	-	1,381
	Operating result:
	Continuing operations				35	32	12	(46)	(15)	4	22

	There have been no changes in the segments reported above, following the adoption of IFRS 8.
	Other than the impact of foreign exchange rate movements, there have been no significant changes to the segmentation of total assets since the year end.
		Note:
		Non-operating items comprise interest and investment income in operating subsidiaries, which are not considered to be financial operations.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - continued
7.		Loss per share - The calculation of loss per Ordinary Share is based on loss after taxation attributable to shareholders and the weighted average number of 1,574,765,001 Ordinary Shares in issue during the six months ended 30 June 2009. The comparatives for the six months to 30 June 2008 and the year to 31 December 2008 have been adjusted for the Capitalisation Issue which took place in June 2009 – see Note 9. For the calculation of diluted loss per Ordinary Share, the weighted average number of Ordinary Shares in issue is adjusted, where appropriate, to assume conversion of all dilutive potential Ordinary Shares, being share options granted to employees and Capital Notes. All dilutive potential Ordinary Shares were not dilutive during the period. Calculations of loss per share are based on results to the nearest £000s.
8.		The net tangible assets per share figure at 30 June 2009 was 41.95p (30 June 2008: 52.32p, 31 December 2008: 46.78p). The comparatives for 30 June 2008 and 31 December 2008 have been adjusted for the 2009 Capitalisation Issue.
9.		Changes in the issued share capital during the six months to 30 June 2009 comprise the following:
					£000
		At 1 January 2009			70,940
		Employee options exercised			425
		Scrip dividend alternative shares issued (15 May 2009)			1,586
		Capitalisation Issue (5 June 2009)			7,272
		At 30 June 2009			80,223
10.		Dividends - The directors have not recommended the payment of an interim dividend (6 months to 30 June 2008: Nil). An interim dividend of 0.91p per share, adjusted for the 2009 Capitalisation Issue, was paid during the period in respect of the year ended 31 December 2008. An interim dividend of 0.91p per share, adjusted for the 2008 Capitalisation Issue, was paid during the six months ended 30 June 2008 in respect of the year ended 31 December 2007.
	11.	Subsequent events – On 28 August 2009, Capral Ltd announced a proposed recapitalisation programme of approximately A$47 million to strengthen its balance sheet, including further investment of A$7.3 million by GPG, and a temporary supplier credit guarantee provided by GPG. Full details of the proposed recapitalisation programme can be found in the Capral Ltd announcement of 28 August 2009 to the ASX.
	12.	There have been no changes to the principal risks and uncertainties compared to those outlined in note 40 to the Financial Statements in the 2008 Annual Report, comprising risks associated with currency, interest rate, market price, liquidity, credit and capital.
	13.	Related party transactions - There have been no related party transactions or changes in related party transactions described in the latest annual report that could have a material effect on the financial position or performance of the Group in the first six months of the financial year.
	14.	Directors - The following persons were, except where noted, directors of GPG during the whole of the period and up to the date of this report:
		Sir Ron Brierley
		A I Gibbs
		R Langley (appointed 28 May 2009)
		B A Nixon
		Dr G H Weiss
	15.	Interim Management Report - The Chairman's Statement appearing in the half-yearly financial report and signed by Sir Ron Brierley provides a review of the operations of the Group for the six months ended 30 June 2009.
	16.	Publication - This statement will be available at the registered office of the Company, First Floor, Times Place, 45 Pall Mall, London SW1Y 5GP. A copy will also be displayed on the Company's website on www.gpgplc.com.

DIRECTORS' RESPONSIBILITY STATEMENT
In accordance with a resolution of the directors of Guinness Peat Group plc I state that: in the opinion of the Directors and to the best of their knowledge:
a.	the condensed consolidated unaudited financial statements:
	(i)	give a true and fair view of the financial position as at 30 June 2009 and the performance of the consolidated Group for the half-year ended on that date;
	(ii)	have been prepared in accordance with IAS 34 "Interim Financial Reporting";
	(iii)	comply with the recognition and measurement principles of applicable International Financial Reporting Standards as adopted by the Group; and
b.	the half-yearly financial report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R; and
c.	there are reasonable grounds to believe the Company will be able to pay its debts as and when they become due and payable.
Signed on behalf of the Board
B A Nixon, Director
28 August 2009
UNITED KINGDOM
First Floor, Times Place, 45 Pall Mall, London SW1Y 5GP			Tel: [phone] Fax: [phone]
AUSTRALIA
c/o Registries Ltd
GPO Box 3993, Sydney NSW 2000, Australia			Tel: [phone] Fax: [phone]
NEW ZEALAND
c/o Computershare Investor Services Limited
Private Bag 92119, Auckland 1142, New Zealand			Tel: [phone] Fax: [phone]
Registered in England No. 103548

INDEPENDENT REVIEW REPORT TO GUINNESS PEAT GROUP PLC

We have been engaged by Guinness Peat Group plc ("the Company") to review the condensed consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2009 which comprise the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed reconciliation of consolidated changes in equity, the condensed statement of consolidated cash flows and related notes 1 to 16. We have read the interim management report (excluding the Guinness Peat Group plc Market Update as at 10 August 2009) and the directors' responsibility statement contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated financial statements.

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed consolidated financial statements included in this half-yearly financial report have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed consolidated financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2009 are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

INDEPENDENT REVIEW REPORT TO GUINNESS PEAT GROUP PLC - continued

Emphasis of matter - uncertainty relating to the amount of a potential liability arising from a European Commission investigation

Without qualifying our conclusion, we draw attention to the disclosures made in note 2 to the condensed consolidated financial statements concerning the European Commission competition investigation into alleged market sharing agreements relating to the European haberdashery market. In September 2007, the European Commission imposed a fine of €110.3 million (equivalent to £93.9 million at 30 June 2009 exchange rates) in relation to these allegations, against which one of the Company's subsidiaries, Coats plc, has lodged an appeal. Significant uncertainty surrounds the ultimate outcome of this matter. The directors are of the view that any anticipated eventual payment of the remaining fines is adequately covered by existing provisions.

Deloitte LLP

Chartered Accountants and Statutory Auditors

London, United Kingdom

28 August 2009

GUINNESS PEAT GROUP PLC - MARKET UPDATE: AS AT 10 AUGUST 2009

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 at 31 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 Brierley

Chairman

14 August 2009

UK Contact:

Richard Russell

Company Secretary

[phone]

 

END

 

 

IR PPMITMMITBIL