Guardian Media Group lost £24m on botched currency trading as it tried to protect hedge-fund investments, it has been reported.
The Sunday Times followed up last week’s story that GMG was mulling the closure of the Observer, the world’s oldest newspaper, by reporting the newspaper publisher was ‘caught out’by the rapid rise of the dollar leading to the loss.
The Sunday Times said the investment was made from a £200m investment fund designed to spread GMG’s risk. Sources told the paper that the fund was never intended to make a profit in the first year and losses were the result of a ‘mark to market’valuation at the end of March.
GMG reported annual losses of nearly £90m last month.