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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Coats Group Plc | COA | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.60 | 0.65% | 93.60 | 16:35:24 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 94.40 | 92.00 | 94.40 | 93.60 | 93.00 |
| Industry Sector |
|---|
| GENERAL INDUSTRIALS |
| Announcement Date | Type | Currency | Dividend Amount | Ex Date | Record Date | Payment Date |
|---|---|---|---|---|---|---|
| 01/08/2023 | Interim | GBP | 0.006639 | 19/10/2023 | 20/10/2023 | 15/11/2023 |
| 02/03/2023 | Final | GBP | 0.013765 | 27/04/2023 | 28/04/2023 | 25/05/2023 |
| 02/08/2022 | Interim | GBP | 0.006095 | 20/10/2022 | 21/10/2022 | 16/11/2022 |
| 03/03/2022 | Final | GBP | 0.012132 | 28/04/2022 | 29/04/2022 | 25/05/2022 |
| 03/08/2021 | Interim | GBP | 0.004443 | 21/10/2021 | 22/10/2021 | 16/11/2021 |
| 04/03/2021 | Final | GBP | 0.009355 | 29/04/2021 | 30/04/2021 | 25/05/2021 |
| Top Posts |
|---|
Posted at 07/3/2024 21:08 by manurere Results a surprise. Pre-results trading had prepared me for another gloomy update. Yesterday's share pice probably gone too far ahead of the results. I'd expect the Sp to retreat back to 72 pence. Slight increase in dividend was welcome, but earnings per share haven't really improved. So, around 72 pence for the next three to six months. |
Posted at 02/8/2023 02:33 by manurere I am, as EI knows well, a long time, bullish Coats investor. My partner and I each have, for private investors, quite large holdings.I was very pleased with the half year results, given the Q1 report. As EI has noted, costs continue to be trimmed, acquisition integration seems to be on track, and market share is growing. My particular focus is on performance materials, rather than footwear and apparel. Over the past decade I have watched every video and studied every statement Coats has produced on performance materials, including industrial materials. This is cutting edge manufacturing with good margins. It also provides some insulation from the ups and downs of consumer spending. I believe that the medium term outlook for performance/industri As for Tuesday's trading, on opening the share price dropped a couple of pence on small volumes, but then the smarter money arrived and the price went up. That buying might have over-reached a little, but I suspect that this time we have left 70p and below behind us. (Mind you, I've said that before and ended up with egg on my face!). Finally, while it is only 15%, the increase in the interim dividend tells us that a very conservative board--when it comes to rewarding shareholders--is confident that Coats is on track to be able to sustain regular, small increases in dividends. I am confident that we will hit US5 cents a share this decade, probably in FY2028 or FY2029, but maybe earlier. If you own Coats shares, hang on to them. If you are thinking of buying, jump in. |
Posted at 01/8/2023 15:23 by essentialinvestor Dave, $10 million on extra efficiency savings and they say.. continue totake market share - that's difficult to confirm unless a company analyst. Assume COA have some data to back that up. Significant revenue fall if it's just de-stocking. As the rating is modest may be reduced expectations already in the price?. |
Posted at 31/5/2023 05:49 by manurere It's a buy right now. I just banked my dividend. With a very positive exchange rate in my favour, I remain very happy with my holding and anticipate better returns, year-on-yea, for the rest of the decade. |
Posted at 17/5/2023 16:20 by essentialinvestor That's very much not the case!.I saw FY consensus forecasts easing back so was a little cautious and as mentioned they have geared up the balance sheet so the market wants confirmation those acquisitions are performing. One of the very first companies I had an investment in (30 years ago) was acquired by COA, so have always taken an interest. I did not expect the recent move over 80 pence and had subsequently sold 10-12% before this level - did not read that too well. It may still work out very nicely here on medium term view, should have a clearer idea on the H1. It looks a pretty fat % revenue decline so they are clearly expecting a bounce back in trading. I'm often too cautious btw, only fair to say. |
Posted at 30/3/2023 07:27 by manurere EI, Glad you are still there.I suspect that the 73p/74p window won't stay open long, so good that you topped up again. Share price probably going to wobble around a bit until the AGM and 1st Q trading report. I note that the largest shareholder, Liontrust Asset Management, recently lifted its holdings. Just watching and waiting for the dividend. My currency is down vis-a-vis UK, so that's a plus. |
Posted at 28/3/2023 07:49 by essentialinvestor manu, COA moves around a bit as we know!, lower levels may be available depending on the next update. |
Posted at 04/3/2023 07:32 by manurere Thanks EI and j.f.t.m.I was going to wait until after Monday and Tuesday’s trading. The results were better than I had expected. *The strategic expansion of the footwear investment is reaping quick rewards. *I note the steady increase in both market share and margins as Coats exits hisorically high volume, low value production. *I still believe that we will see some quite significant growth in performance materials over the medium- to longer-term. *Really pleased that an end to the pension overhang is now in sight. *Appreciate the dividend boost. *Note that the CEO has increased his shareholding: an encouraging vote of confidence. *Thought that some investors got a bit carried away on 2 March; the share price got ahead of itself. *I still think share price will hover around 75p until mid-year results; they may see share price move closer to 80p. *Will be surprised if share price goes over 100p before mid- or FY results 2025. See no prospect of a takeover bid. First, a very high percentage of shares are in institutional hands. Second, most seem to be index linked investments with no incentive o make a quick buck, should it be offered. Third, at what price would we sell, given some of us have hung in for a long time? I won’t voluntarily exit this side of 155pence as I see too much upside from just hanging in. I’m looking forward to US 5 cents a share in annual dividends before my kids inherit the shares. |
Posted at 03/3/2023 16:04 by justiceforthemany Raised Dividend.P/E 10 Disappointing drop back today but was up 8% yesterday. Takeover target IMO |
Posted at 22/7/2022 18:24 by cravencottage Here's what the I/C had to say in back in April..Coats is back in fashion The industrial thread company’s growth is sustainable in more ways than one April 7, 2022 By Jemma Slingo Those in search of threads, yarns and trims might visit a local haberdashery. The idea feels quaint in 2022, where sewing has largely been replaced by shopping. There is nothing quaint about thread manufacturing, however. The lucrative industry literally holds together swathes of the retail sector, and promises to be a reliable source of returns for investors. IC TIP: Buy Tip style GROWTH Risk rating MEDIUM Timescale MEDIUM TERM Bull points Convincing growth opportunities Large market share $50mn cost-saving drive More demand for sustainable thread Bear points Tight US labour market Inflationary pressures Uxbridge-headquarter Its smaller ‘performance materials’ arm – which produces thread for an eclectic range of purposes, including personal protection, telecoms, and transportation – also has a chunky market share of around 14 per cent. COA:LSE Coats Group PLC 1mth Today change 3.30%Price (GBP) 72.10 Coats’ size and history is crucial to its investment case. The group has been around since 1755, boasts well-established manufacturing processes, and counts on long-standing customer relationships, meaning new entrants to the market are unlikely to prove a threat. Its broad portfolio also shelters it from the volatility of fashion retail. Its apparel and footwear division targets a variety of markets including premium lifestyle, fast fashion, mid-market, and luxury attire. Because of this, fickle consumer taste – often the downfall of retail brands – has little impact on demand for its products. But it hasn’t all been plain sailing. Coats had a difficult lockdown, when profits were hit by a drop in demand and additional coronavirus costs. However, the group bounced back well in 2021, when sales and cash exceeded pre-pandemic levels, and operating profit edged toward past highs. Momentum also seems to be building. The final two months of 2021 saw sales up 20 per cent versus 2019 in both divisions, compared with 1 per cent in the first half of the year. Opportunities in Asia Over the past decade, Coats’ customer base has shifted away from Europe and into Asia. Asian countries – particularly India and China – are now expected to drive sales. In its latest annual report, the group said that sewing thread markets are due to grow by low single-digit percentages globally in the medium term. However, growth in Asia is expected to be faster, as consumers become wealthier and urbanisation increases demand for products such as fibre optic cables, which Coats’ performance materials division also specialises in. “Not only will Asian consumers demand more garments, but more affluent consumers will demand higher-end garments, so we expect regional sales from our factories in Asia to increase over time,” management said in 2020. Vietnam is also an important player. The country is a key end market for Coats as many of its clients have factories there. A series of strict Covid lockdowns resulted in serious operational disruption, particularly in 2021, when Coats had to temporarily shut its Vietnam site. The situation seems to have improved since then, although other shut-downs in Asia cannot be ruled out. Sustainable sewing Geography is not the only thing working in Coats’ favour. The group is also tapping into sustainability trends. As flagged in our recent Alpha report on the company, the apparel and footwear industry is a major polluter and retailers are under pressure to go green. Historically, synthetic threads have been an oil byproduct, so eco alternatives are likely to have a competitive advantage. At the moment, this side of Coats’ business is small. Its ‘EcoVerde̵ The group has also repurposed its Asian ‘innovation hub’ to focus on new biomaterials, and launched a new product in 2021 made from sustainably sourced wood pulp. As well as ticking the ESG box, this is an exciting opportunity to grow margins and market share. Analysts at Jefferies say Coats’ focus on sustainability is “core to [its] positive thesis”, and believe it will help to raise higher absolute profit per unit. Efficiency drive It might sound unduly optimistic to discuss margin improvements against a backdrop of inflation, tight labour markets and supply chain chaos. Coats is far from immune from these pressures, as the decline in its PM division’s operating margins since 2019 shows. This is largely due to its US operations, which are dogged by worker shortages and rising wages. Management seems to have a plan, however. In early March, Coats announced a cost-saving scheme which promises to deliver incremental adjusted operating profit of $50mn by 2024. How exactly it will achieve this is a little hazy – the group refers simply to “strategic projects” that will optimise the business’s portfolio and footprint. However, broker Peel Hunt suspects Coats will focus on performance materials and – in a move straight out of the modern manufacturer’s playbook – increase production from lower-cost locations, such as Mexico or further afield. This does not come without its own risks. Part of the strength of Coats’ business model is its global footprint, and the flexibility of its supply chain. Many of the group’s performance materials customers are based in the US, which has so far prevented significant offshoring. It is hard to shake the sense, therefore, that management’s hand has been forced. However, analysts are excited by the cost-saving possibilities. While the efficiency drive is expected to incur a one-off cash cost of $35mn, Jefferies expects it to boost consensus earnings before interest, tax, depreciation and amortisation by 9 per cent in 2023 and 2024, and result in margin accretion of two percentage points. Decent valuation For some investors, a question mark hangs over the profits that will flow to shareholders. The shares have jumped by around a third since the end of February, driven by a strong set of annual results. But the stock sits on less than 13 times forward consensus earnings, and sentiment still remains tainted by historic issues with its group pension arrangements. While the words ‘defined benefit scheme’ often cause investors to break out in a cold sweat, in the case of Coats things aren’t too bad. The group moved from a deficit of $226mn to a surplus of $21mn in 2021, largely due to higher discount rates and employer contributions. Future contributions will remain at the previously agreed level of £22mn a year, meaning that the deficit should be paid down by 2028. These contributions will inevitably impact Coats’ cash position. However, the end is well in sight and the group generated an impressive amount of cash in 2021, despite having to catch up on some payments it deferred at the start of the pandemic. As such, it managed to reduce its net debt (excluding lease liabilities) by almost $35mn, and increase its dividend. Coats seems to offer an attractive combination of value and growth, therefore – and its performance this year suggests that industrial thread is firmly back in fashion. 2021 1.50 160 6.81 1.44 f'cst 2022 1.56 186 7.70 1.64 f'cst 2023 1.63 210 8.81 1.84 chg (%) +4 +13 +14 +12 |
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