Last checked at 11 Apr 2013 07:00
GUINNESS PEAT GROUP plc
("GPG" or the "Company")
UPDATE ON CAPITAL MANAGEMENT INITIATIVES
The Company's annual report published on 27 March 2013 stated that further capital management initiatives would be outlined to shareholders at or prior to the forthcoming annual general meeting on 23 May 2013. As previously stated, any decision as to the quantum and timing of possible capital returns to shareholders will be made as the asset realisation process progresses, and having regard to the GPG group's actual and contingent liabilities.
As stated previously, the Company continues to actively consider the position in respect of the GPG group's UK pension schemes, which comprise the Coats Pension Plan, the Brunel Holdings Pension Scheme and the Staveley Industries Retirement Benefits Scheme. By way of further update, the Company has received correspondence from the UK Pensions Regulator ("TPR") in relation to the Coats and Brunel schemes. The correspondence explains that TPR is undertaking an investigation into whether financial support should be provided to those schemes by the Company, or by one or more of the entities connected or associated with the schemes' respective sponsoring employers, under the provisions of the UK Pensions Act 2004. The receipt of this formal correspondence has introduced a new element of uncertainty at this stage as to when these investigations will conclude, whether any financial commitment will result from such investigations or, should it do so, the quantum involved. The relevant provisions of that Act are, however, subject to a reasonableness test and accordingly the Board's advice continues to be that its position on this matter is robust.
The Board is taking advice in respect of this correspondence and continues to work with the parties relevant to the GPG group's UK pension schemes. This will inform consideration of further capital management initiatives, including their quantum and timing. An update will be provided to shareholders in due course.
Chris Healy
Company Secretary
Guinness Peat Group plc
Tel: +44 20 7484 3370
10 April 2013
Enquiry details are:
New Zealand and Australian media: Geoff Senescall on: +64 9 309 5659
UK media: Kevin Smith on: +44 20 7282 1054