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


GPG sees Coats rebranding in sight, slips back into the red

GPG sees Coats rebranding in sight, slips back into the red

By Paul McBeth

Feb. 27 (BusinessDesk) - Guinness Peat Group expects to rebrand itself as UK threadmaker Coats, its biggest asset, in the second half of 2013, having slipped into the red last year on a fine handed down by the European Court.

The London-headquartered firm made a loss of 3 million pounds in the 12 months ended Dec. 31, compared to a profit of 1 million pounds a year earlier, it said in a statement. That captured the net 76 million pound hit it took on the EC fine handed down to Coats for a historical antitrust case as it goes through the process of selling assets as it winds itself down.

Coats made a net loss of US$113 million attributable to GPG on sales of US$1.65 billion after accounting for the fine, and its underlying business is expected to pick up this year as it hives off unprofitable units and property.

GPG raised 314 million pounds from asset sales in the 2012 calendar year, and has generated cash proceeds of a further 37 pounds since then, lifting its cash balance to 275 million pounds as at Feb. 22. The investment firm has reaped 495 million pounds from assets sales since embarking on liquidating its portfolio in 2011.

"The company's composition of net assets is now comprised of its 100 percent investment in Coats, cash resources, the GPG pension schemes and a remaining pool of five material investment portfolio assets," chairman Rob Campbell said.

"As the asset realisation process progresses, further surplus cash will be returned to shareholders utilising appropriate mechanisms, including making efforts to facilitate exits for those small shareholders who are seeking an efficient route to realisation of their investment," he said.

The firm has no plans to pay dividends, and will outline further capital initiatives at or before the annual meeting in May.

GPG faces a 281 million pound shortfall from the pension plans it supports, though it stressed that those values move around as discount rates and markets change and create accounting surpluses and deficits.

"The board intends that the support currently provided by GPG to back the GPG pension schemes should be maintained," Campbell said.

"It is expected that investment portfolio realisation proceeds equivalent to at least 124 million pounds will be required to be retained by the GPG group and will not be available for distribution to shareholder," he said.

The shares were unchanged at 59 cents yesterday.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news