Coats sees FY operating profit ahead of previous expectations

Industrial thread manufacturer Coats Group said on Thursday that adjusted operating profit for full-year 2016 is likely to be ahead of its previous expectations.

In a trading statement for 1 July to 30 September, the company said the challenging market conditions that hit its second-quarter industrial sales performance have improved in the third quarter as it entered its peak sales season.

“Inflationary pressures on input prices are being managed well and the company continues to grow market share and deliver productivity and procurement improvements.”

In addition, the group said improvements to non-operating items will further benefit adjusted earnings per share, providing current foreign exchange rates persist until the end of the year.

At 1520 BST, Coats shares were up 8% to 36.51p.