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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Business Research And Development Up 29 Percent

Computer services and machinery manufacturing firms led the way in an almost 30 percent lift in business spending on research and development (R&D) in 2016, Stats NZ said today. Businesses spent $1.6 billion on R&D in 2016, up $356 million (29 percent) from 2014. More>>

ALSO:

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news