Coats (COA) was first listed on the London Stock Exchange in 1890 but was taken private in 2003 before being floated in June this year. Headline figures were affected by a number of exceptional items including $2.7m (£1.7m) of reorganisation costs and a $6.5m provision relating to a potential pollution claim by the US Environmental Protection Agency against around 60 "potentially responsible parties".
The speciality business, which includes performance fabric, wire and cable products, delivered 13 per cent sales growth and helped to push profit in the industrial division ahead by 15 per cent to $66.3m. Sales were boosted by an expansion of existing products, such as automotive and tyre cord in Asia, and operating margins rose from 9.9 per cent to 10.8 per cent.
Sales in apparel and footwear, which includes such items as accessories, zips and trims, grew by 4 per cent year on year, mainly as the group expanded its market share. This helped to offset relatively flat market conditions which made it tough to push through higher prices. Revenue from craft sales, which include fashion hand knitting and fabric products, fell by 7 per cent, reflecting a long-term decline in the North American needlecrafts market, and profits slipped from $6.3m to $2.8m. Full-year results will also be affected by the the sale of the EMEA Crafts business in July, generating a loss from discontinued operations of $51.7m.
| COATS GROUP (COA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 27.25p | MARKET VALUE: | £384m | |
| TOUCH: | 26.5-28p | 12-MONTH HIGH: | 35p | LOW: 21p |
| DIVIDEND YIELD: | nil | PE RATIO: | 23 | |
| NET ASSET VALUE: | 25¢* | NET DEBT: | 86% | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2014 | 775 | 49.8 | 1.36 | nil |
| 2015 | 748 | 30.4 | 0.25 | nil |
| % change | -3 | -39 | -82 | - |
*Includes intangible assets of $260m or 18¢ a share. £1=$1.56 | ||||
