For the half year, Coats’ revenue was up five per cent. There was a strong growth of seven per cent in the industrial division across both apparel and footwear (five per cent) and performance materials (18 per cent). Adjusted operating profit was up 14 per cent with group revenue growth further underpinned by margin increase across both industrial (50 basis points) and crafts (260 basis points).

Coats is the world’s leading industrial thread manufacturer and a major player in the Americas textile crafts market. Return on capital employed increased 400 basis points to 34 per cent mainly as a result of higher profitability. There was good operational progress on identified focus areas of simplification, innovation and enhancing digital capabilities.

The company has continued to increase its market share in the apparel and footwear segments. It has had a customer-led approach to innovation, digital solutions and corporate social responsibility. It continues to leverage its global footprint and customer base in performance materials business, develop new product solutions for customers, and sees a good contribution from Gotex business which was acquired in 2016. Coats’ strong cash generation allows it to service various stakeholder capital demands, while allowing for increased investment in its existing asset base which is scheduled in the second half of the year.