Updates

Coats Group - Operating margin hits record 18%

May 2025

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.

Coats, the global leader in the manufacture and supply of sewing thread, delivered strong finals. Operating profit grew 18% to US$270m while eps increased 19% to 9.5 cents, above consensus of 9.2 cents. Operating margin hit a record 18% while net debt / EBITDA was 1.5x, beating management guidance for 1.6-1.7x Coats’ Apparel (51% group sales) and Footwear (27% sales) divisions reported revenues up 13% and 10%, respectively, with customer destocking having ended and the company winning market share. Apparel and Footwear both also grew operating margins to 19.6% (+2.2%) and 23.5% (+0.7%), respectively. Their performance was boosted by a 144% increase in sales of 100% recycled thread to US$405m, well ahead of its target of US$300m. ...

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Coats Group - Sales accelerate to +11% (January 2025)

Coats - Free cash flow to rocket after pension buy-in (November 2024)

Coats Group - Trading ahead of expectations (October 2024)

Coats - Supplier of threads enjoying strong margin growth (May 2024)

Coats Group (January 2024)

Coats Group (July 2023)

Coats - Acquisitions add fast growing sports, athleisure and high performance footwear (April 2023)

Coats (September 2022)

Coats - Cost cuts to deliver another US$50m profit by FY’24 (July 2022)

Coats Group (April 2022)

Coats Group (October 2021)

Coats (July 2021)

Coats (October 2019)

Coats Group (May 2019)

Coats Group (November 2018)

Coats Group (April 2018)

Coats (January 2018)

Coats - Call with CFO reveals plenty of lower hanging fruit still to be plucked (December 2017)

Coats Group - Three directors buy shares in sewing thread business (February 2017)

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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