COATS GROUP PLC
GPG
27/02/2015 08:30
FLLYR
PRICE SENSITIVE
REL: 0830 HRS Guinness Peat Group Plc
FLLYR: GPG: Preliminary Results for the Year Ended 31 December 2014
26 February 2014
Guinness Peat Group plc
('GPG' or 'the Company')
Preliminary Results for the Year Ended 31 December 2014
GPG highlights
- Company to be renamed Coats Group plc
- Single Board of Directors to lead Coats, a global manufacturing business
- Operating profit of GBP64 million (2013: GBP41 million), increase primarily
driven by significant reduction in parent group administrative expenses
- Net attributable profit of GBP9 million, compared to GBP23 million in 2013
which included a GBP46 million profit from discontinued operations
- Net asset backing per share of 17.2p(a) (31 December 2013: 31.5p), decline
reflects actuarial losses in respect of retirement benefit schemes
- Board and management continue to actively engage with the UK Pensions
Regulator's investigations
Coats highlights(b)
- Revenue of $1,686 million, up 1% on a like-for-like(c) basis, with
Industrial up 5%
- Operating profit, before exceptional items, of $131 million stable on a
like-for-like(c) basis; strong performance by Industrial with growth of 18%
- Net attributable profit, before exceptional items, of $45 million, up 21%
year-on-year; $21 million including exceptional items (2013: $29 million)
- Adjusted free cash flow(d) of $70 million, up 30% year-on-year
- Sale of EMEA Crafts agreed; better positions Coats for future profitable
growth and allows focus on high performing global Industrial and strong
Americas Crafts businesses
- Debt facility successfully refinanced in 2015, extending maturity to 2020
and reducing margin
(a) See Note 7 of GPG consolidated financial information
(b) Figures represent results of Coats as contained within consolidated
financial information for GPG. See Note 1 of Coats consolidated financial
information
(c) Restates 2013 comparative figures at 2014 exchange rates. Reported
revenue of $1,703.7 million in 2013.
(d) See Coats Group financial review for calculation of adjusted free cash
flow
Commenting on GPG's full year 2014 results Mike Clasper, GPG Chairman, said:
'I am pleased to say we are moving on. Coats is a world class, manufacturing
business and is returning to the market under its own name in the 125th
anniversary year of its first listing on the London Stock Exchange. It is
moving further away from the GPG investment company past, we now have one
Board to lead the business and we are structuring our executive team to
efficiently support the simplified corporate structure.
'Within Coats, the Industrial business delivered good profit growth; however
the Group results were impacted by Crafts, particularly in EMEA. Despite this
Coats achieved a high conversion into free cash flow during the year. We have
recently agreed the sale of the loss making EMEA Crafts business, leaving
management free to focus on further growth opportunities in our strong and
profitable global Industrial and Americas Crafts businesses.
'The ongoing investigations by the UK Pensions Regulator mean we cannot pass
on our success by way of returns to shareholders. However, we are not going
to let the investigations stop us from creating further value for our
shareholders and continuing to strengthen Coats' business which underpins the
Company's obligations to its pension scheme members.'
Commenting on Coats' 2014 results Paul Forman, Coats Group Chief Executive,
said:
'We are pleased to have delivered material increases in pre-exceptional
attributable profit and free cash flow in 2014. These results show the
positive effect of our growth strategy, with a 14% growth in Speciality sales
contributing to an 18% increase in Industrial operating profit.
'The ongoing introduction of value adding services and innovative products is
delivering operational and financial benefits, and the sale of EMEA Crafts
will enable us to focus more on our high performing global Industrial and
strong Americas Crafts businesses. The successful refinancing of our debt
facility and reduction in leverage gives Coats a strong platform to invest in
organic and inorganic growth opportunities.'
Conference call
Coats Group Chief Executive, Paul Forman, and Chief Financial Officer,
Richard Howes, will discuss this report in a webcast / conference call with
the investment community at 0900 GMT today (26 February 2015).
The webcast can be accessed via http://edge.media-server.com/m/p/7of58trj.
The conference call can be accessed by dialling 0800 279 4842 (UK), 09 308
4000 (New Zealand), 1800 037 237 (Australia) or +44 20 3427 1924
(international), and using access code 6833163. The webcast will also be made
available in archive on the GPG website, www.gpgplc.com.
Please see attached for full announcement.
End CA:00261220 For:GPG Type:FLLYR Time:2015-02-27 08:30:42
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