Further re: Pensions Update

RNS Number : 1315X

Coats Group PLC

17 February 2017

 

17 February 2017

Coats Group plc

Further re: Cessation of UK Pensions Regulator's regulatory action for two of the three pension schemes

Further to its announcement of 16 December 2016, Coats Group plc (the 'Company'), the world's leading industrial thread manufacturer, today announces that it has signed binding Settlement agreements with the Trustees of the UK Coats Pension Plan and Brunel Holdings Pension Scheme.  The Company has received written assurances from the UK Pensions Regulator that on completion of the Settlement its regulatory action will automatically cease in relation to these two schemes under the Warning Notices that it issued to the Company in 2013 and 2014.  Following a series of Company determined corporate steps completion will occur by early March 2017.

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Enquiry details

Investors          Rob Mann                                             Coats Group plc            [phone]

Media              Richard Mountain / Nick Hasell               FTI Consulting               [phone]

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This announcement contains inside information for the purposes of the Market Abuse Regulation.

About Coats Group plc

Coats is the world's leading industrial thread manufacturer and a major player in the Americas textile crafts market. At home in some 60 countries, Coats employs 19,000 people across six continents. Revenues in 2015 were US$1.5bn. Coats' pioneering history and innovative culture ensure the company leads the way around the world: providing complementary and value added products and services to the apparel and footwear industries; applying innovative techniques to develop high technology Performance Materials threads and yarns in areas such as automotive and fibre optics; and extending the crafts offer into new markets and online. Headquartered in the UK, Coats has a premium listing on the London Stock Exchange. To find out more about Coats visit www.coats.com.

Background to UK Pensions Regulator investigations

During 2013 TPR began investigations into Guinness Peat Group's (as Coats Group plc was then known) three UK pension schemes. In December of that year TPR issued Warning Notices in respect of the two legacy schemes - Brunel and Staveley - and in December 2014 issued a Warning Notice in respect of the UK Coats Pension Plan. From 2013 onwards, all parties proceeded down a legal process set out by regulations governing TPR's procedures. During 2015 the Company was renamed Coats Group plc and a number of Director changes were made. In February 2016 Coats initiated settlement discussions with the three sets of trustees and committed to retain the entire parent group cash balance within the Group to support the schemes. This cash balance is the net proceeds generated from Guinness Peat Group's asset realisation programme between 2011-2013 when it sold its share in approximately 50 businesses leaving Coats as the only remaining operating business.

 

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