26 February 2015, 0700 GMT: Guinness Peat Group (GPG) plc today announced that it is changing its name to Coats Group plc and will operate under a single, combined Board of Directors. The announcement forms part of its preliminary financial results for the year ended 31 December 2014.
These changes, which will take effect over the coming days in all the markets in which GPG shares tradea, establish Coats as the standalone, listed entity and signal its return to the market in the 125th anniversary year of its initial listing on the London Stock Exchange in 1890.
Coats highlights
- Revenue of $1,686 million, up 1% on a like-for-likeb basis, with Industrial up 5%
- Operating profit, before exceptional items, of $131 million stable on a like-for-likeb 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 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
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.
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.’
A copy of the full announcement is available at www.coats.com/resultsandreports
a Primary listing in London, also listed in Australia and New Zealand
b Restates 2013 comparative figures at 2014 exchange rates. Reported revenue of $1,703.7 million in 2013.
ENDS