¹ Excluding US Yarns business
² Constant exchange rate (CER) figures are 2024 results restated at 2025 exchange rates

All following references are at CER unless specified.

The Group delivered a good performance in the period with revenue up 4%, reflecting continued momentum in Apparel and Footwear which both achieved 5% year-on-year growth, building further on the recovery seen in 2024. Performance Materials traded in line with expectations, with revenue excluding US Yarns at a similar level to the same period last year, as subdued conditions continue to affect a number of key end markets.

In line with our medium-term financial framework, underlying Group EBIT margins continued to improve, with further efficiency gains funding investment in our growth drivers.

Following the closure of our plant in Toluca, Mexico in Q4 2024, we announced in April 2025 our intention to fully exit from the low-margin US Yarns business based in Kings Mountain, North Carolina. Earlier this month, we agreed to sell the business and assets of US Yarns, and this will generate net cash proceeds of around $16m, with completion expected in June 2025. The US Yarns business had sales of $68m and EBIT of $3m in 2024, and this exit will further improve the quality of the Coats portfolio as well as margins.

Outlook

Given the positive start to the year and our current order book visibility, we expect the first half performance to reflect an adjusted EBIT margin within our medium-term margin target range of 19-21%.

The recently announced US-led trade tariffs have created elevated uncertainty in a number of markets and we continue to monitor this situation closely. This remains a dynamic backdrop and consequently challenging at this point to determine any indirect impact on future demand, but we have been encouraged by the continued positive momentum through the period. The Group is a global market leader with a proven and resilient business model – with a global footprint, low capital intensity, a flexible cost base and proven pricing power – which continues to position us strongly to navigate any market volatility.

Whilst mindful of the dynamic backdrop, our full year expectations remain unchanged, with a broadly equal profit weighting across H1 and H2. We expect another year of strong free cash flow generation, supporting the Group’s active and flexible capital allocation strategy. We continue to build a pipeline of attractive acquisition targets to further strengthen our portfolio, with the capacity to take advantage of any opportunities created by any disruption.

Commenting on the results David Paja, Group Chief Executive, said:

“We have traded well in the first few months of 2025 and we expect to finish the first half with performance ahead of the prior year, reflecting both growth and further margin expansion.

It is too early to be definitive on any longer-term impact from tariffs and trade restrictions but I am confident in the Group’s ability to navigate different scenarios with a well-honed playbook, while continuing to invest in our growth initiatives. Our client relationships, global footprint and high-quality product portfolio will underpin the delivery of market leading growth and profitability, together with substantial and increasing free cash flow.”

The Group will release its 2025 Interim Results on 31 July 2025.

ENDS