Updates

Coats

September 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.

Less than two months after I made Coats a main write-up its half year results came in ahead of expectations. Earnings before interest and tax rose 35% to US$125m, well ahead of Peel Hunt’s US$115m forecast, driven by strong volume growth and pricing. With US$65m cost inflation offset by US$57m price increases, cost reductions and favourable mix changes, EBIT margin improved 1.8% to 15.6% and there’s more to come with US$50m savings expected from strategic projects.Apparel & Footwear, its threads and zips side, was the main source of the ‘beat,’ increasing profit 30% to US$107m (EBIT margin from 15.5% to 18.2%) on sales up 11% to US$587m.In Performance Materials (personal protection, composites, performance threads), profi ...

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Crest Nicholson

Hill & Smith

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 - 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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