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)
2015A 1489.5 183.0 109.7 4.0 28.0 17.9
2016A 1457.3 198.6 127.1 4.8 23.3 20.5
2017E 1488.5 212.1 145.6 5.8 19.3 N/A
2018E 1548.6 214.9 147.7 5.9 19.0 8.5

Last updated on 19/09/2017

Investment summary

H117 results provided clear evidence of business momentum with a strategy to accelerate the influence of innovation on future growth rates. Group revenue and EBIT grew by 4% and 12% respectively, primarily due to the encouraging performance from Industrial operations, and the payment of a maiden H1 dividend after a return to the dividend list with the FY16 final was another highlight. Following a series of announcements and the H1 cash flow presentation, the ongoing pension, and therefore group, funding positions are now fully visible. The combination of these points indicates an aspiration to achieve faster group progress, in our view.

Last updated on 03/10/2017

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 03/10/2017

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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