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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Primary Recommendations

Coats - Acquisitions add fast growing sports, athleisure and high performance footwear

April 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • COA
  • Price:
  • 78.5p
There’s a stubbornly held perception that Coats, the world’s largest manufacturer of industrial threads and zips for use in clothing, is an old school manufacturing relic from a bygone age. But galvanising profits are two strategic acquisitions, which are helping it tap faster-growing markets and at the same time it has also been benefiting from a “nearshoring” trend as customers seek to secure product closer to home after Covid saw their supply chains break down. In fact, Coats has already beaten forecasts on three occasions in the past 12 months. For the year just ended, Peel Hunt expects sales of almost US$1.6bn and EBIT margins of 14.8% (+1.5% year-on-year), which is a record for the company. Adjusted pretax profit is expected ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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