All following references are at CER unless specified.

Following a strong first half, sales growth improved to 11% in the period (H1: up 8%) with accelerating growth in Footwear and continued momentum in Apparel, partly offset by sustained weakness in Performance Materials.

The Apparel and Footwear divisions continued to benefit from a return to normalised levels of customer buying and inventory patterns, with both divisions showing strong year-on-year growth of 14% (H1: up 14% and 7% respectively), albeit against a weaker prior year comparator due to the impact of destocking in 2023.

The Performance Materials division returned to growth in the period of 1% (H1: down 3%) but remains impacted by lower order book activity in the personal protection and composites sectors, particularly in the Americas. The lower capacity utilisation in the Americas continues to negatively impact Performance Materials margins.

As a result of the strong overall Group sales growth, alongside continued delivery of our strategic projects, we expect to deliver a full year operating margin of around 18%.

Cash generation remained good through the period, and we anticipate a year-end leverage position, including the additional pension funding payment, of 1.6-1.7x, in line with previous guidance.

Our outlook is unchanged with full year performance expected to be in line with market expectations. The Group remains well positioned for the medium term, supported by good momentum in our Apparel and Footwear Divisions and strong cash generation.

David Paja, Group Chief Executive said:

“It has been a pleasure to meet many of the Coats team and visit many of our key sites in my first couple of months as CEO. This has confirmed my view that we have a premium quality business, executing well with opportunities for further improvement, and a strong platform for future profitable growth.”

“In the four months to the end of October the Group continued to perform well, led by Apparel and Footwear. We are confident in the Group’s ability to sustain this momentum through the final quarter and consequently in delivering a full year performance in line with market expectations.”

The Group will release its Full Year 2024 results on 6 March 2025.

1. Constant exchange rate (CER) figures are 2023 results restated at 2024 exchange rates.

ENDS