The Coats Group Board has decided to pay an interim dividend of 0.81 cents per share, a 15% increase on the prior year. The interim dividend will be paid on 15 November 2023 to ordinary shareholders on the register at 20 October 2023, with an ex-dividend date of 19 October 2023.
Other financial highlights include:
Reported revenue down 11%, including contributions from 2022 Footwear acquisitions
Organic revenue 19% lower against strong comparators, adversely impacted by widespread industry destocking in Apparel and Footwear, and previously disclosed customer contract insourcing in Performance Materials
Continuing market share gains in both Apparel and Footwear thread and components, and key contract wins in Performance Materials
Resilient operating margins reflect accelerated efficiencies from strategic projects and from integration of Footwear acquisitions, together with ongoing pricing benefits, with input costs moderating in some areas
Strong free cash flow of $52 million, despite significantly lower volumes, as a result of efficiencies and excellent working capital control. Half year net debt (excluding lease liabilities) of $399 million, with 1.6x leverage, comfortably within 1-2x target range