All materials below should be read in conjunction with the RNS announcement of 07 March 2016 – available here.
Highlights
- Operating profit up 19% to $139 million on a like-for-like basis before exceptional items (13% reported)
- Group operating margin up 130bps to 9.4% (like-for-like); good growth in both Industrial and Crafts
- Adjusted EPS up 38% to 3.96c (like-for-like); reported EPS of (3.30)c primarily impacted by discontinued items related to disposal of EMEA Crafts
- Adjusted free cash flow of $74 million ($88 million in 2014)
- Strengthened business portfolio with disposal of loss-making EMEA Crafts business and first acquisition
- Repositioned Company as a UK headquartered, global industrial manufacturing business and made a number of Director changes
- Initiated settlement discussions with the Trustees of the Company’s three UK pension schemes to attempt a resolution of the ongoing pensions investigations
Commenting on the results, Paul Forman, Group Chief Executive said:
‘Coats delivered a strong performance in 2015 with like-for-like operating profit growth of 19%. The core Apparel and Footwear business continued to gain market share; in Speciality we continued to grow through product innovation and geographic expansion, despite tough conditions in certain key markets; and in our Americas Crafts business we delivered an encouraging second half profit. Across the Group margins increased due to volume growth, lower input prices and procurement and productivity savings. This contributed to like-for-like adjusted EPS growth of 38%. However, discontinued losses related to the sale of our loss-making EMEA Crafts business negatively impacted reported earnings.
‘We enter 2016 on a solid footing with improving returns and quality of earnings and a stronger business portfolio. Our cash flow generation will remain strong which will allow us to continue to reinvest in organic and inorganic growth opportunities. Whilst we face a backdrop of mixed economic conditions, we are cautiously optimistic of growing the business in 2016.’
ENDS