5th Mar 2020 09:44
(Alliance News) - Coats Group PLC on Thursday recoded a rise in profit for 2019 despite lower than normal growth and temporary softness in the market.
The stock was trading 5.8% higher at 61.45 pence each on Thursday morning in London.
For 2019, the FTSE 250 industrial thread manufacturer posted pretax profit at USD166.8 million, up 36% from USD122.8 million in 2018. Revenue however, was down at USD1.39 billion from USD1.41 billion.
The profit jump was attributed to a sharp drop in exceptional and acquisition related items in the year when compared to 2018, which included the initial costs relating to a business transformation programme. Exceptional charges declined to USD4.4 million from USD47.8 million.
By business, Apparel & Footwear recorded revenue growth of 1.0%, Performance Materials revenue rose 1.4%. Personal Protection saw 6% growth and Telecoms & Energy saw 7% rise. Revenue from Transportation division declined by 5%.
Currency translation headwinds hurt performance in the second half of the year, Coats said. However, the company added that cost management actions resulted in final two-year net savings of USD28 million.
Coats proposed a final dividend of USD1.30 per share bringing the total annual dividend to USD1.85, up 11% from 2018's full year dividend of USD1.66.
Looking ahead, Chief Executive Rajiv Sharma said: "We enter 2020 as a lean and agile organisation, well placed to take advantage of the fast-paced and rapidly-changing modern world. Absent a material impact from Covid-19, Coats remains well placed to execute our strategy and deliver another year of growth in 2020".
By Ife Taiwo; [email protected]
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