Primary Recommendations

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

July 2022

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 is the world’s largest manufacturer of industrial threads and zips with its products found in clothing & apparel such as shirts, shoes, trousers, dresses and protective clothing. As CFO Jackie Callaway, who I met with over the month, notes, the company is positioned at the premium end of the market and focuses on innovation such as providing the elastic that needs to stretch in Lululemon pants. Other key clients include Gap, Adidas and Inditex. Critics might baulk at the growth opportunities here given the rag trade’s tough history but as Callaway says, Coats has successfully differentiated itself including through its scale and global footprint, reliability (lack of breakdowns) of its manufacturing facilities and its ...

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Hill & Smith - President Biden’s US$1.2 trillion infrastructure bill to boost demand

B&M European Retail

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 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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