Coats Group plc (COA.L), an industrial thread and footwear components manufacturer, reported Tuesday that its first-half profit before taxation was $59.0 million, down from last year’s $96.8 million.<\/p>\n
Basic earnings per share fell 55 percent to 1.5 US cents from 3.4 US cents a year ago.<\/p>\n
Adjusted profit before taxation was $94.3 million, compared to $110.1 million in the prior year. Adjusted basic earnings per share were 3.5 cents, compared to last year’s 4.3 cents.<\/p>\n
Revenue for the period dropped 11 percent to $715 million from last year’s $801 million. Revenues fell 6 percent at constant currency rates, and 19 percent organically.<\/p>\n
Organic revenue was adversely impacted by widespread industry destocking in Apparel and Footwear, and previously disclosed customer contract insourcing in Performance Materials.<\/p>\n
Further, the Board has decided to pay an interim dividend of 0.81 cents per share, a 15 percent increase on the prior year. The interim dividend will be paid on November 15 to ordinary shareholders on the register at October 20.<\/p>\n
Looking ahead, the company said, “…we are now expecting a more gradual improvement in market demand during the second half. As a result, we continue to expect our full year trading to be in line with market expectations, albeit towards the lower end of the analyst forecast range. Further, we remain confident that due to our actions, and supported by increasing market volumes, we will achieve our 2024 margin goal of c.17 percent.”<\/p>\n
The current company compiled analyst forecast range for Group adjusted operating profit in the year 2023 is $240 million to $261 million.<\/p>\n
In London, Coats Group shares were trading at 68.40 pence, down 2.29 percent.<\/p>\n
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