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

Essentra - Huge dividend growth expected from FY’24

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 - 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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