Coats Group PLC (LON:COA): H117 results provided clear evidence of business momentum with a strategy to accelerate the influence of innovation on future growth rates. Following a series of announcements and the H1 cash flow presentation, the ongoing pension, and therefore group, funding positions are now fully visible. The combination of these points indicates an aspiration to achieve faster group progress, in our view.
Encouraging H1 performance
Group revenue and EBIT grew by 4% and 12% respectively, primarily due to the encouraging performance from Industrial operations. Overall finance costs reduced such that adjusted EPS increased by 38% in the period and the payment of a maiden H1 dividend after a return to the dividend list with the FY16 final was another highlight. Pension cash payments dominated balance sheet funding movements in the period, but the underlying cash flow performance was positive and ahead of the previous year.
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