Year in review 2019
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Our strategic pillars

Innovation, Sustainability, Digital and Acquisition are our levers for change and provide the tools that will enable us to deliver value.

See it in action

Apparel & Footwear

The global market leader in supplying premium thread to the A&F industries

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Innovation

100% Recycled thread

Coats Epic EcoVerde is a 100% recycled premium polyester corespun sewing thread that has been precisely engineered to create durable, attractive seams across a wide range of recycled fabrics and materials.

Acquisition

Solving complex customer problems with ease

We look to identify companies with unique capabilities technology, innovations, or intellectual property that can be scaled to deliver value for customers and shareholders.

Sustainability

40%reduction in water waste

Our global goal is to reduce our water used per kilogramme of thread produced by 40% by 2022 against our 2018 baseline.

A&F Acquisition

Fabric usage optimisation in apparel manufacturing

Our most recent acquisition ThreadSol, completed early in 2019, complements our previous acquisitions of GSD and Fast React allowing us to offer an ever broader suite of industry leading consultancy, tools and PLM software to garment manufacturers and brands / retailers.

Sustainability

100% Two new sustainable threads

We have manufactured two new 100% sustainable threads: Tre Cerchi Vero and Tre Cerchi Vero+. Both are made from sustainable raw materials, are eco-friendly and free from harmful substances while delivering a premium quality thread.

Sustainability

Pioneering a sustainable future–making it happen

In recognition of our strong ESG credentials and as a member of the FTSE4Good UK Index, and a participant in the UN Global Compact, we set ambitious sustainability targets in March 2019 that build on existing achievements to accelerate our progress towards a more sustainable future.

Digital

Coats Digital

Our newly launched brand offers a technology business delivering great customer value and is ideally placed to solve the Apparel and Footwear industry’s big problems – cost, speed and transparency.

People

A dedicated, energised and agile workforce

Coats is a truly global organisation with over 17,000 employees working in some 50 countries across six continents.

People

Bright minds,
broad talents

Our workforce is at the heart of making our business a success and we recognise that listening to them and keeping them engaged is essential to that success continuing.

Apparel & Footwear Revenue

$1,063m

77% of group

(2018: $1,083m) Jump to performance

Performance Materials

We are experts in the design and supply of a diverse range of technical products that serve a variety of strategic and end use markets

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Acquisition

Pharr HP

The acquisition of Pharr HP provides us with further manufacturing / innovation expertise, and together with our existing Personal Protection business delivers scale and presence in this attractive growth market.

Innovation

FlamePro Splash Protect

FlamePro Splash Protect fabric protects against a range of heat sources and smelting hazards due to its thermal resistant and metal-shedding design. It is engineered to be lightweight but durable.

Innovation

Beyond the
stitch line

More than 20% of our organic Performance Materials revenues are in relation to products that didn’t exist five years ago.

Acquisition

Our acquisitions strategy

We look to identify companies with unique capabilities, technology, innovations, or Intellectual Property that can be scaled to deliver value for customers and shareholders.

Digital

Multi-fibre
blending

We are able to blend up to five different fibres of precise proportions and digitally simulate its properties without needing physical samples. These multi-fibre blends have revolutionised the performance wear industry.

Innovation

Talent meets
technology

Coats is committed to developing innovative new products to help address the safety and performance requirements of the Personal Protection sector.

Working responsibly

99%

At Coats, Health and Safety is our number one priority. 99% of our units scored better than the industry benchmark in the Health and Safety Climate Survey.

Performance Materials Revenue

$326m

23% of group

(2018: $332m) Jump to performance

Highlights

We are continuing to transform for growth and are committed to delivering sustainable value

Acquisition

Pharr HP

On the 29 May 2019 we successfully acquired the business and assets of Pharr HP, a market-leading manufacturer of high-performance engineered yarns based in McAdenville, North Carolina, US.

Digital

Coats Digital

Our newly launched brand offers a technology business delivering great customer value and is ideally placed to solve the Apparel and Footwear industry’s big problems – cost, speed and transparency.

Sustainability

Thread made from sustainable raw materials

Coats, the world’s leading industrial thread company, has launched two new 100% cotton products.

Culture

Empowering our people with the skills to succeed

During the year we implemented programmes to support our people. These included the launch of our refreshed Leadership Capability Framework and the digitisation of key people processes. Our successful Journey to Zero Health and Safety strategy launch resulted in a 20% decrease in injury rate.

Statements

A message from our leaders

Governance

In conversation with our Board

Mike Clasper Chairman

“The publication of our Sustainability strategy, accompanied by tough targets was a big initiative. This has come from our core values and has changed in a positive way the dialogue about Coats with our stakeholders.”

Nicholas Bull Senior Independent Non-Executive Director

“We differentiate ourselves from smaller, in-country competitors through our programme of ‘Doing the Right Thing’ to give our customers confidence in their supply chain management.”

Echo Lu Non-Executive Director

“The biggest challenge we face is changing the mindset to be more digital, agile and take calculated risks. The biggest opportunity is to innovate in the most important markets to drive volume growth.”

David Gosnell Chair Remuneration committee

“Without good governance we will not have the foundation to build our company. It’s a basic requirement.”

Fran Philip Designated Non-Executive Director for Workforce Engagement

“During 2019 I had meetings with employees at all levels across the Group. What really came across was how much they care about Coats and want to share ways to make it a better company.”

Rajiv Sharma Chief Executive Officer

“The Board takes key stakeholders into account by being transparent and honest and by reaching out proactively to them for consultation and feedback.”

Simon Boddie Chief Financial Officer

“What makes Coats unique is its heritage, global footprint, colour quality, great people and customer relationships.”

Alan Rosling Non-Executive Director

“The Board is spending an increasing amount of time on people strategy to ensure that our capabilities to deliver continue to be upgraded and we support the culture and behaviours that Coats represents.”

Anne Fahy Chair Audit & Risk Committee

“Coats has an incredibly long history built on core strengths of customer relationships, global presence, great skills and knowledge, a thirst to innovate and modernise and always act responsibly.”

Performance

2019 in numbers

Revenue ($m)

2019 1,389
2018 1,374

Adjusted Operating Profit ($m)

2019 198
2018 189

Operating profit ($m)

2019 191
2018 147
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