For Coats’ revenue for 2017 grew by four per cent, driven by apparel and footwear (up five per cent) and Performance Materials (up 12 per cent). Adjusted operating profit was up 11 per cent. Group operating margin was up 11.5 per cent. UK-based Coats, is an industrial thread manufacturer. Coats delivered a strong performance in 2017. The momentum continued throughout the year in key apparel and footwear markets, where it continued to take share, and it saw double-digit growth in hi-tech end-uses in Performance Materials.

In an environment of rising input costs, Coats was able to grow its operating margins, through realising price increases, productivity and procurement gains, as well as tight control of its cost base. Adjusted EPS was up 30 per cent as a result of higher operating profits, a further reduction in the effective tax rate and a reduction in finance costs.

Adjusted free cash flow growth was up 12 per cent. Following the strong performance in 2017 the company has announced a full year dividend per share, which represents a 15 per cent year-on-year increase. As such, 2018 adjusted operating profits are expected to be slightly ahead of previous expectations. Coats will also continue to focus on cash flow generation.