LONDON (ShareCast) - The chairman of investment group Guinness Peat confessed the firm produced “a rather poor result” for the first half of 2008.

The group slipped into loss at the pre-tax stage, losing £15m, versus a profit of £110m a year earlier.

A profit of £15m was made from normal trading sources and sales of shares, but this was more than wiped out by share portfolio write-downs of £35m.

“GPG’s portfolio has not been immune from the worldwide share market shake-out and, to that extent, we believe most of those losses will be recovered and more,” said Sir Ron Brierley, chairman of Guinness Peat.

“The majority of GPG’s investments are sound strategic long term holdings where we are confident of intrinsic value regardless of share price fluctuations,” continued Brierley.

The group’s subsidiary, Coats, saw profit before tax slide to $27.8m from $45.3m a year earlier.

Coats’s manufacturing business “held up well” but the bottom line was affected by losses in European crafts, costs of refinancing and higher foreign exchange charges.

Guinness Peat remains “well placed for selective buying opportunities”, thanks to the strength of its balance sheet and good liquidity.

“The board is working towards a substantial release of value to shareholders in 2010 which will coincide with GPG’s 20th anniversary and my own retirement as chairman of the company,” Brierley said.

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