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

 


GPG investors to see cash once Coats is standing on its own

GPG shareholders to see cash once Coats is standing on its own

By Paul McBeth

Feb. 28 (BusinessDesk) - Guinness Peat Group's shareholders will see a cash return once the investment firm has been rebranded into its biggest asset Coats, and the UK threadmaker is standing on its own two feet.

The London-headquartered firm is firmly focused on getting rid of its last five assets and dealing with its UK pensions facing a shortfall in funding as it moves ultimately to leave Coats as a standalone company. GPG sees the rebranding as likely to happen in the second half of this year.

"Our focus in the year ahead will remain on ensuring that Coats is in the best possible position for its life as a stand-alone company," chairman Rob Campbell told BusinessDesk in an emailed statement. "We will also look to return to GPG shareholders the maximum amount of excess cash once Coats has the resources it needs to achieve its strategic objectives and to optimise its capital markets positioning."

GPG's remaining assets were valued at 216 million pounds as at Feb. 22, and it expects to have to put aside 124 million pounds to cover any shortfall in the pension plans it supports. The firm held 275 million pounds in cash as at Feb. 22, having reaped 495 million pounds from asset sales since embarking on liquidating its portfolio in 2011.

Excluding Coats, GPG's portfolio is now made up of New Zealand insurer Tower, agri-products producer Ridley Corp, property developer CIC Australia, agri-investor PrimeAg and agri-business Tandou.

GPG returned 25 million pounds to shareholders through its share buy-back programme in 2012 adding to the 80 million pound capital return and 12 million pound dividend in 2011. Shareholder funds were valued at 434 million pound as at Dec. 31.

The shares slipped 0.8 percent to 58.5 cents in trading yesterday, and are rated an average 'outperform' based on six analyst recommendations compiled by Reuters. The analyst have a median target price of 66.5 cents.

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.

"Coats has made encouraging progress in 2012 and delivered results in line with market expectations, despite the challenging economic conditions," Campbell said.


(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news