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

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news