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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news