Report

Update: Mixed trading conditions, further pension progress

Trading in the first four months of FY16 largely mirrors management’s balanced outlook comments with the FY15 results, and EBIT guidance is unchanged. We have reduced PBT estimates slightly to reflect the latest pension scheme recovery plan update. Progress in resolving legacy issues is welcome and the large Coats scheme is next to be addressed.
Underlying
Coats Group plc

Coats Group is a thread manufacturer. Co. serves the following markets: Apparel and Footwear, in which it is a thread supplier to the apparel and footwear industries and also a supplier of zips and provides consulting and software services to those industries; Performance Materials, in which it manufactures technical threads and yarn used in a range of industries which include automotive, household and recreation, medical, healthand food, safety, telecoms, conductive and composites; Crafts America, whereby its Crafts business is focused on the Americas textile crafting industry, which it categorizes into two segments: handknitting yarns and needlecrafts including consumer threads and zips.

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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