Coats

Street

Our approach

Our economic contribution

Coats is a global business manufacturing industrial sewing threads and zips.

Through our activities, we make an economic contribution that stretches far beyond the boundaries of our own operations: we buy from local, regional and global suppliers; this is evident through the wages we pay our employees; and as we pay interest to financial institutions and taxes and remittances to governments.

We are economically linked with the local communities in which we operate and the markets that we serve around the world.  As our business grows, then so does the positive economic contribution we make.

During the year ending 31 December 2020, we gave employment to nearly 18,000 people across some 50 countries and sourced goods from even more countries worldwide. In the year ended 31 December 2020, Coats Group plc generated $1,166 million of economic value, of which the majority was distributed to our suppliers (62%) and employees (23%). A further 4% was paid in taxes to local and national governments.

In 2020 we were not subject to any fines or penalties and nor did we make any settlements relating to corruption in our business activities.

Taxation paid

During the year the Group made Corporate Income Tax payments in respect of continuing operations (including withholding and dividend distribution taxes) of $46.3m (2019: $46.3m).
The amount of tax paid in each jurisdiction is as follows:

Year ended 31 December

2020

2019

US$m

US$m

UK

12.3

11.7

Vietnam

14.0

12.7

China

3.0

1.5

Indonesia

2.7

3.2

India

2.5

5.7

Bangladesh

2.2

1.7

Singapore

1.7

1.8

Brazil

1.0

(1.4)

Sri Lanka

0.9

1.1

Colombia

0.9

0.7

Spain

0.9

0.3

Hong Kong

0.8

0.1

Morocco

0.7

0.6

Poland

0.6

0.7

Thailand

0.6

0.7

Pakistan

0.2

0.6

USA

-

1.3

Turkey

(0.5)

1.5

Others (16 countries each less than $0.5 million)

1.8

1.8

Total Corporate Income Tax paid

46.3

46.3

(1)    The taxes paid in the UK and Singapore are primarily withholding taxes on royalties, group charges and dividends, deducted and paid at source in the following jurisdictions:

2020

2019

US$m

US$m

Estonia

2.8

-

Indonesia

2.7

2.8

Bangladesh

1.5

2.4

Vietnam

1.2

1.5

China

0.9

1.0

India

0.8

2.3

Thailand

0.5

0.2

Colombia

0.4

0.6

Others (each less than $0.5 million)

3.2

2.7

Total withholding taxes paid

14.0

13.5

Direct economic value generated

  2020
  $m %
Direct economic value generated 1,166.1 100%
Economic value distributed    
Operating costs    
(before exceptional items and excluding depreciation and amortisation and employee remuneration) 724.6  62%
Employee remuneration    
(wages, salaries, social security and other pension costs) 270.7  23%
Providers of capital    
(interest payable on bank loans, overdrafts and other borrowings and dividends payable to external shareholders) 11.2  1%
Payments to governments    
(taxes payable in respect of taxable profit and remittances) 43.0  4%
Other net utilisations 74.4  6%
Economic value retained / (losses for the year absorbed) 42.2  4%

Note: These figures are extracted from the Coats Group plc Annual Report 2020 and have been prepared in accordance with guidance provided by the Global Reporting Initiative (GRI 201), which can be downloaded here.

For more information on our historical performance download our full data disclosure.

For more information on our tax strategy please refer to our Corporate Tax Strategy Statement.

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