Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


GPG says Coats reorganisation costs to dent 2012 results

GPG says Coats reorganisation costs to dent 2012 results

Nov. 14 (BusinessDesk) - Guinness Peat Group, the investment firm liquidating its portfolio, said it is accelerating its reorganisation of the Coats thread-making business, its biggest asset, which will drive up costs and dent profit this year and next.

Full-year profit before interest and tax at Coats would be in line with market expectations before reorganisation costs, which were expected to be between 16 million pounds and 19 million pounds higher than in 2011, it said in a statement. Charges in 2013 would be 13 million pounds to 19 million pounds.

“In order to position Coats strongly for the future, the board and management continue to identify actions to optimise the footprint and cost base of the business,” GPG said in a statement to the London Stock Exchange.

“This accelerated programme brings forward projects planned for future years and one consequence of this is that management do not envisage incurring separately identifiable reorganisation expenditure from 2014 onwards,” it said.

The general economic environment for Coats is ‘expected to remain fragile for the rest of the financial year,” it said.

Coats sales rose 5 percent in the third quarter from a year earlier, made up of a 3 percent gain for its industrial division and 9 percent gain for its crafts division. Despite some margin improvement, the company is seeing gains in commodity prices, which will squeeze margins into 2013.

Behind Coats, GPG’s biggest remaining assets are is 33.6 percent holding of insurer Tower, 22 percent of Ridley Corp, 73 percent of CIC Australia, 11.6 percent of PrimeAg Australia and 47 percent of Capral.
accelerated its wind-down this week with some $125.9 million in asset sales.

The investment company will rename itself Coats "at the point when GPG shareholders’ investment is predominantly represented" by the UK threadmaker's business. That's expected to happen in the second half of next year.

Shares of Guinness Peat last traded at 59 cents and have gained 0.9 percent this year.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


New Bill Introduced: GST On Online Services

These measures are an important first step in the Government’s efforts to deal with increasing volumes of online services and other intangibles purchased from overseas suppliers that should, under New Zealand’s tax rules, be subject to GST. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news