Our approach
Our economic contribution
Coats is a global business manufacturing industrial sewing threads and zips.
Through our activities, we make an economic contribution that stretches far beyond the boundaries of our own operations: we buy from local, regional and global suppliers; this is evident through the wages we pay our employees; and as we pay interest to financial institutions and taxes and remittances to governments.
We are economically linked with the local communities in which we operate and the markets that we serve around the world. As our business grows, then so does the positive economic contribution we make.
During the year ending 31 December 2021, we gave employment to nearly 18,000 people across some 50 countries and sourced goods from even more countries worldwide. In the year ended 31 December 2021, Coats Group plc generated $1,508 million of economic value, of which the majority was distributed to our suppliers (60%) and employees (23%). A further 4% was paid in taxes to local and national governments.
In 2021 we were not subject to any fines or penalties and nor did we make any settlements relating to corruption in our business activities.
Taxation paid
During the year the Group made Corporate Income Tax payments in respect of continuing operations (including withholding and dividend distribution taxes) of $47.9m (2020: $46.3m).
The amount of tax paid in each jurisdiction is as follows:
| Year ended 31 December |
2021 |
2020 |
|
US$m |
US$m |
|
|
UK |
9.3 |
12.3 |
|
Vietnam |
13.9 |
14.0 |
|
Indonesia |
4.4 |
2.7 |
|
China |
3.8 |
3.0 |
|
India |
3.0 |
2.5 |
|
Singapore |
2.3 |
1.7 |
|
Bangladesh |
1.8 |
2.2 |
|
Colombia |
1.3 |
0.9 |
|
Hong Kong |
1.2 |
0.8 |
|
Spain |
1.0 |
0.9 |
|
Thailand |
1.0 |
0.6 |
|
Pakistan |
0.8 |
0.2 |
|
Poland |
0.6 |
0.7 |
|
Thailand |
0.6 |
0.7 |
|
Pakistan |
0.2 |
0.6 |
|
Sri Lanka |
0.8 |
0.9 |
|
Hungary |
0.7 |
0.3 |
|
Poland |
0.5 |
0.6 |
|
Turkey |
0.4 |
(0.5) |
|
Brazil |
0.2 |
1.0 |
|
Morocco |
- |
0.7 |
|
Others (1 country less than $0.5 million) |
1.5 |
1.5 |
|
Total Corporate Income Tax paid |
47.9 |
46.3 |
(1) The taxes paid in the UK and Singapore are primarily withholding taxes on royalties, group charges and dividends, deducted and paid at source in the following jurisdictions:
|
2021 |
2020 |
|
|
US$m |
US$m |
|
|
Indonesia |
2.9 |
2.7 |
|
India |
2.0 |
0.8 |
|
China |
1.9 |
0.9 |
|
Bangladesh |
1.8 |
1.5 |
|
Vietnam |
1.7 |
1.2 |
|
Estonia |
0.6 |
2.8 |
|
Thailand |
0.5 |
0.5 |
|
Others (each less than $0.5 million) |
0.4 |
3.2 |
|
Total withholding taxes paid |
11.8 |
14.0 |
Direct economic value generated
| 2020 | ||
|---|---|---|
| $m | % | |
| Direct economic value generated | 1,508.4 | 100% |
| Economic value distributed | ||
| Operating costs | ||
| (before exceptional items and excluding depreciation and amortisation and employee remuneration) | 900.5 |
60% |
| Employee remuneration | ||
| (wages, salaries, social security and other pension costs) | 352.9 |
23% |
| Providers of capital | ||
| (interest payable on bank loans, overdrafts and other borrowings and dividends payable to external shareholders) | 38.3 |
3% |
| Payments to governments | ||
| (taxes payable in respect of taxable profit and remittances) | 56.3 |
4% |
| Other net utilisations | 79.4 | 5% |
| Economic value retained / (losses for the year absorbed) | 81.0 |
5% |
Note: These figures are extracted from the Coats Group plc Annual Report 2021 and have been prepared in accordance with guidance provided by the Global Reporting Initiative (GRI 201), which can be downloaded here.
For more information on our historical performance download our full data disclosure.
For more information on our tax strategy please refer to our Corporate Tax Strategy Statement.