The Coats Group Plc Board has decided to propose a final dividend of 1.99 cents per share, a 15% increase on the prior year. This equates to a full year dividend of 2.80 cents per share, also an increase of 15%. Subject to approval at the AGM, the final dividend will be paid on 30 May 2024 to ordinary shareholders on the register at 3 May 2024, with an ex-dividend date of 2 May 2024.
Other financial highlights include:
Reported revenue down 9%
Organic revenue 14% lower, on improving trend (H1: 19% lower; H2 10% lower) with:
o Continued outperformance versus industry - Apparel and Footwear markets estimated c.20% lower
o Apparel brand inventory levels normalised; gradual recovery trend underway
o Footwear recovery lagging Apparel as destocking commenced later
o Performance Materials largely reflects customer contract insourcing and US customer phasing issues
Achieved 2024 Group adjusted EBIT margin target 17% in the second half, one year ahead of plan
Strong adjusted free cash flow of $131 million, despite lower sales volumes, including well-managed working capital
Net debt (excluding lease liabilities) lower at $384 million with 1.5x leverage3, in the middle of their 1-2x target range
Organic revenue 14% lower, on improving trend (H1: 19% lower; H2 10% lower) with:
o Continued outperformance versus industry - Apparel and Footwear markets estimated c.20% lower
o Apparel brand inventory levels normalised; gradual recovery trend underway
o Footwear recovery lagging Apparel as destocking commenced later
o Performance Materials largely reflects customer contract insourcing and US customer phasing issues
Achieved 2024 Group adjusted EBIT margin target 17% in the second half, one year ahead of plan
Strong adjusted free cash flow of $131 million, despite lower sales volumes, including well-managed working capital
Net debt (excluding lease liabilities) lower at $384 million with 1.5x leverage3, in the middle of our 1-2x target range
