10 May 2010

No new plan yet from GPG - Brierley

6:02 am on 10 May 2010

Guinness Peat Group has again failed to produce with a plan to return value to shareholders, despite promises that it would.

At the company's annual meeting in London over the weekend, chairman Sir Ron Brierley admitted that the company's model was not working, but said the task of changing it was very complex.

As such, he said it was better to wait and reach the right conclusions, than to rush into any decision.

Sir Ron vowed to return value to shareholders after the listed investment group lost 36 million British pounds (about $NZ78 million) last financial year, and said the company will announce its plan before the annual meeting.

Milford Asset Management says investors, most of whom are based in New Zealand, will be bitterly disappointed at the lack of progress.

Executive director Brian Gaynor says the company had been promising an announcement since February 2007, but it's very disappointing because they said nothing at the meeting.

Mr Gaynor says the only thing of any significance at the meeting was an admission that the model under which the company operates does not work.

But he says there was no indication of what changes will be made and no timeline for when any changes might be announced.