Investment holding company Guinness Peat Group posted a first half loss after one of its companies suffered a heavy fine from the European Commission.
In June, Coats Holdings, the world's biggest maker of industrial threads, lost a court fight against €110m in antitrust fines for fixing the price of fasteners such as zippers and rivets.
This resulted in an exceptional charge of £76m in Guinness' results, leading to an overall loss of £36m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
This compared with a profit of £13m in the same period in 2011.
Coats was also a drag after trading in the first half was lower than expected.
This poor trading, together with adverse movements in exchange rates, resulted in sales at Coats dropping by $43m to around $819m.
Guinness also announced details of a share buyback scheme as it seeks to return surplus cash to shareholders.
"I can confirm the intention to commence this process with the purchase of shares up to a value of £10m as a first stage," said Chairman Rob Campbell.
"A specific announcement with the details of the buyback will be made shortly, subject to the Board confirming that the prevailing market conditions are appropriate."
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
