Coats reinstated its dividend despite a halving of annual profits as the industrial thread maker reported a recovery in trading in recent months.
Pre-tax profit fell to $79.6m from $166.8m for the year to December 31 as revenue declined 16% to $1.16bn due to the Covid-19 pandemic. A final dividend of 1.3 cents a share was declared.
Adjusted operating profit came in at $111m, down 44% but ahead of previous expectations, with a solid recovery in the second half, Coats said on Thursday.
“In the second half of the year we saw a continued improving trend in demand with organic revenues down 12%, including most recently an exit rate in November/December of 5% down year-on-year on an organic basis,’ the company said.
“We remain cautious around the recovery profile of our various global end markets and will be vigilant regarding inflationary pressures within the supply chain. Notwithstanding this uncertainty we are encouraged by our improved trading performance towards the end of last year as well as in the first two months of this year, and the Board expects to see continued recovery through 2021.”