25th Feb 2016 09:11
LONDON (Alliance News) - Coats Group PLC on Thursday reported a drop in pretax profit in 2015 as revenue declined on adverse currency movements while it also faced an increase in exceptional costs.
The industrial thread manufacturer said pretax profit in 2015 fell to USD86.6 million from USD96.9 million in 2014, as revenue decreased to USD1.49 billion from USD1.56 billion due unfavourable movements in foreign exchange rates.
However, on a like-for-like basis, which restates 2014 figures at 2015 exchange rates, revenue would have grown by 3.0% from USD1.45 billion, Coats said, adding profit was also hit by an increase in exceptional costs.
"We enter 2016 on a solid footing with improving returns and quality of earnings and a stronger business portfolio. Our cash flow generation will remain strong which will allow us to continue to reinvest in organic and inorganic growth opportunities. Whilst we face a backdrop of mixed economic conditions, we are cautiously optimistic of growing the business in 2016," Chief Executive Paul Forman said in a statement.
Shares in Coats Group were trading up 5.6% at 23.50 pence on Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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