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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news