Coats Group (COA)

Business description

Coats Group is a leading producer of industrial thread and consumer craft textiles with over 70 manufacturing sites internationally. Its divisions are Industrial: Apparel & Footwear (c 67%) and Performance Materials (c 17%); and Crafts (16%), based on FY16 revenue.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2016A 1457.3 198.6 140.7 5.8 19.3 20.5
2017A 1510.3 215.7 161.4 6.9 16.2 N/A
2018E 1595.3 229.2 168.8 7.1 15.7 8.2
2019E 1644.8 242.4 181.5 7.8 14.3 7.6

Last updated on 06/03/2018

Investment summary

FY17 results clearly demonstrate that Coats Group’s industrial operations have good momentum and a transformation plan is to enhance this further over the next couple of years. Group earnings and free cash generation were both up by double-digit percentages in FY17. While partly anticipated in the current rating, we believe that Coats is focusing on faster-growing segments and, having clarified group pension requirements, has the financial capacity to achieve this in a number of ways.

Last updated on 06/03/2018

Industry outlook

Population growth is the ultimate trend driver for clothing and footwear demand. Increasing urbanisation, mobility and wealth are all features of this overall growth. Consumer consumption will generally track GDP growth over time. Economic and demographic differences at a country level mean that the local characteristics of demand vary. Coats is the world’s leading industrial thread and consumer textile crafts business.

Last updated on 02/03/2018

Key management

Mike Clasper, Chairman
Rajiv Sharma , CEO
Simon Boddie, CFO
Rob Mann, IRO

Company address

1 The Square
Stockley Park
UB11 1TD
United Kingdom
+44 (0)20 8210 5000
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