Updates

Coats Group

July 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.

Against very strong year-on-year comparables (when customers over-ordered due to wobbling supply chains) and some destocking, Coats’ organic sales reduced 20% in line with forecasts. Apparel and footwear fell 22% and 23%, respectively, with performance materials down 13%. Market conditions are challenging but Coats has gained market share, reduced costs (including upping target savings from US$50m to US$70m by 2024) and benefited from acquisition synergies (US$6m initially rising to US$11m). Peel Hunt’s unchanged eps forecasts are for 8 cents rising to 9.6 cents. But there will be a material second half weighting this year, partly due to the weak start and also the pattern last year. Interim results are due on 1st Augu ...

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4Imprint

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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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Coats Group

July 2023

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