GPG plc announces name change to Coats Group plc releases FY14 results
- 26 Feb 2015
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.
- 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.
For more information contact:
Richard Mountain, richard.mountain@FTIconsulting.com, T +44 20 3727 1374
(in NZ) Geoff Senescall, firstname.lastname@example.org, T +64 9 309 5659
Anna Mitchell, Group Director of Communications, email@example.com T +44 (0)208 210 5015, M +44 (0)7740 747976
Notes to Editors
With a rich heritage dating back to the 1750s, Coats is the world's leading industrial thread and consumer textile crafts business, at home in more than 70 countries, employing over 20,000 people across six continents. Revenues in 2014 were US$1.7bn.
Our well-known brands and strong relationships with customers and consumers mean our products and services meet current and future needs. Our company-wide understanding of our business partners and consumers, coupled with the deep expertise of our people, builds trust and certainty.
Coats’ pioneering history and innovative culture ensure the company continues leading the way around the world: providing complementary and value added products and services to the apparel and footwear industries; extending the crafts offer into new markets and online; and applying innovative techniques to develop products in new areas such as tracer threads, aramids and fibre optics.
- One in five garments on the planet is held together using Coats’ thread
- More than 100 million car airbags are made using Coats’ thread every year
- Coats produces enough yarn to knit 70 million scarves a year
- Every three hours Coats makes enough thread to go to the moon and back
- More than 450 million pairs of shoes are made every year using Coats’ thread
- In 1879 Thomas Edison used Coats’ thread in his experiments to invent the light bulb
- Every week over 10 billion teabags are brewed using Coats’ thread
- Coats produces enough thread to reach around the Equator every ten minutes
- Thousands of surgical operations take place every day using Coats’ thread
- Coats is the second largest and fastest growing global zip manufacturer
To find out more about Coats visit www.coats.com
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