Coats is the global market leader in supplying premium sewing thread to the apparel industry, and is estimated to be over twice the size of the nearest thread competitor. The global thread market is estimated to be c.$3.4bn and whilst thread alone is 1-2% of the cost of a typical garment, it is a critical component in the manufacturing process and for the quality and performance of the finished product. We are one of the few global players of a key supply chain component in the $1.4tn global apparel industry which is projected to grow at low single digits in the medium term. We also manufacture selected zip and trim products, and our fashion tech business supplies software solutions for speed, productivity and transparency in customers’ operations. Whilst economic volatility, inflation and supply chain disruption impacted our industry in 2022, we expect industry growth rates to continue to demonstrate resilience in the medium term. In Apparel we are growing faster than the market because of our excellent reputation for quality, our value proposition, our global footprint and our strong sustainability agenda.

Coats is the global market leader in supplying highly engineered structural components and performance thread to the footwear industry. We estimate the structural components addressable markets to be $0.6bn in which, through our recent acquisitions of Texon and Rhenoflex, we enjoy a market leading share of over 20% in a fragmented market. The global footwear threads market is c.$0.6bn, where we also have a long-established leading position.

Our acquisitions have opened new markets, particularly in footwear insoles, and in lifestyle and luxury structural components. In aggregate, the global footwear markets we serve are expected to grow 7-8% over the medium term. These markets are driven by sustainable innovation, reliability and reputation, and we are well positioned to take advantage of future growth in this industry.

We are global experts in the design and supply of highly engineered performance threads, yarns and lightweight composites used in a range of industries including thermal and cut-protective wear, telecom and oil & gas infrastructure, automotive and feminine hygiene products. We estimate the total addressable market that we could realistically supply in the near term to be c.$3.0bn, giving us an estimated market share of around 15%. We aim to deliver mid- to high-single digit organic growth in the medium-term in Performance Materials as a whole. Specifically, Composites and Personal Protection affords better growth opportunities where we expect to grow revenues at a higher rate compared to Performance Thread where growth is likely to be in the mid-single digit range.