Coats H1 operating profits rise on better margins

Sewing thread maker Coats Group on Thursday reported a rise in first half operating profits despite mixed conditions in it retail and industrial markets.

Operating profit increased to $100.8.1m from $79.8m on strong growth in emerging markets. Pre-tax profits fell to $85.1m from $88.5m while revenue fell 3% to $705m.

Profits were also driven by improved operating margins, strong cash flow generation and cost cutting under Coats' 'Connecting for Growth' programme which is set to end this year.

Looking ahead, the company said full year earnings per share would be impacted by the foreign exchange movements, accountancy standard changes and legacy interest charges.

“However, whilst we remain mindful of current macroeconomic uncertainties, we anticipate delivering 2019 full year adjusted operating profit in line with our expectations,” Coats said in a statement.