The Coats Group Plc Board has decided to pay an interim dividend of 0.93 cents per share, a 15% increase on the prior year. The interim dividend will be paid on 14 November 2024 to ordinary shareholders on the register at 18 October 2024, with an ex-dividend date of 17 October 2024.
Other financial highlights include:
Reported revenue up 7%, with recovery from destocking cycle now well underway
CER revenue up 8% on a further improving trend (January - April 2024 up 7%):
o Weak prior year comparator which was impacted by industry destocking
o Apparel customer inventory and buying patterns returned to more normalised levels, despite macro concerns (up 14%)
o Footwear recovery slightly behind Apparel as destocking commenced later, but now back to robust growth (up 7%)
o Performance Materials continues to be impacted by US customer phasing and operational challenges (3% lower), but on an improving trend - returning to year-on-year growth in Q2
Group adjusted EBIT margin of 18% in the period, ahead of previously announced 2024 margin target of 17%
Strong adjusted free cash flow of $59 million
Net debt (excluding lease liabilities) at $381 million with leverage3 further reduced to 1.4x, comfortably within 1-2x target range and providing significant capacity to support the Group's capital allocation strategy
