Coats Group Leads FTSE 250 Gainers After Resilient First-Half Results

Coats Group (LON: COA) was the standout performer on the FTSE 250 on Tuesday, with shares surging 9.9% to 85.2p, as the industrial thread and technical textiles maker reassured investors with a resilient set of first-half results and reaffirmed full-year guidance.

The Uxbridge-based group reported revenue of $837 million for the six months to June, up 19% year-on-year on a reported basis, though organic growth was a more modest 1% as it navigated soft conditions across several end markets.

Crucially, Coats continued to outperform its core apparel and footwear markets, which contracted by mid-single digits during the period, gaining market share through product innovation and strong customer relationships.

Adjusted operating profit came in at $166 million, with the group holding its adjusted EBIT margin steady at 19.8% despite higher investment in growth initiatives, thanks to disciplined cost control and procurement efficiencies.

Adjusted earnings per share dipped 6% to $0.04, reflecting increased spending on technology and long-term expansion, including newer ventures such as composite energy tapes and digital solutions.

Management struck a confident tone on the outlook, targeting a further $15 million of cost savings in the second half, including synergies from the OrthoLite acquisition, while flagging strong free cash flow generation in support of its five-year goal of $1 billion in cumulative free cash flow.

The rally came amid a broader positive session for UK equities, with the FTSE 250 up 0.5% and the FTSE 100 gaining 0.9%, buoyed also by upbeat results from Unilever and Croda, even as Barclays shares slipped despite beating profit forecasts.