Shares of Coats Group (LON: COA) exploded 17% in today’s trading session after the company said its trading activity has been ahead of market expectations this year.
Thread manufacturer now expects its adjusted operating profit to come in the range of $100 million and $110 million.
Coats saw its sales fall 9% on a year-to-year basis in the third quarter ending October 31. This is much better than a plunge of 21% reported for the first half of the year.
“Improving demand trend seen across both Apparel and Footwear and Performance Materials, notably into the start of the peak trading period of September to November,” the company said in today’s trading statement.
“Further incremental new customer wins and share gains from competitors as we leverage our global footprint, flexibility and digital tools to deliver high levels of customer service.”
Net debt is reported at $211 million in September while cash generation is also “ahead of expectations”. On a dividend payout, the firm is keeping its options open.
“The board is mindful of the importance of income to shareholders and as performance continues to progress, it will keep future dividends, including the final 2020 dividend, under review”.
Coats share price soared 17% to print the highest levels since August.
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