Updates & Ideas

Coats - Supplier of threads enjoying strong margin growth

May 2024

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.

Since the start of 2023, shares in Coats have enjoyed a bullish chart pattern of rising lows while coming close to their highest level since the onset of the Pandemic. Ordinarily, Coats’ position as the only truly global supplier of industrial threads for use in the manufacture of apparel and footwear - it has a worldwide footprint across 48 countries, bettering nearest rivals A&E (22) and Amman (7) - would have put it in good stead, but recent trading has been soft. The post Covid-19 torpor, Ukraine war, Red Sea disruption and customer de-stocking has knocked spending for six and 2023 results coughed up a 14% fall in sales. Nevertheless, management say de-stocking is at an end, while more efficient ways of working have delivered US$ ...

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Michelmersh Brick - Three “reverse profit warnings” in two years!

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 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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