An acutely embarrassed Gestetner Holdings Plc had to confess on Friday that it had been playing the money markets and got it wrong, saddling the UK office automation and photographics group with a thumping UKP6.1m exceptional loss. The company’s shares plunged 26 pence to a new low of 120 pence before recovering a little as investors assessed the damage more accurately. The embarrassment was caused by geared interest rate swap contracts taken out in October and November last year and the loss will be registered in the firm’s accounts for the 14 months ending December 31. This exposure has now been closed out, and no other similar exposures now exist or can recur, the company said, adding that its auditors, Price Waterhouse, are investigating the circumstances giving rise to the loss. In all other respects, the group continues to trade in line with expectations, it added, although the company did warn that its 14-month profit figure would depend significantly on trading in the the key September and October period. Gestetner Holdings made a pre-tax loss of UKP33.2m on a turnover of UKP1,000m in the year to October 31 1993.
