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.

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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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 (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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