Coats Share Price (COA)

Nice SP rise today. Finally!

Agreed (as does the market) re the pension good news. Trading outlook still remains soft and they need a Q4 beat or stronger '24 outlook to move the SP up from here. Fundamentally good company with strong market position but facing negative macro

Projected sp, target is on the straight line drawn from the trough of 23/10/23, to the second subsequent peak dated 7/12/23. A glance at the projected line, suggests a target of 77/78. The RSI(relative strength index), has crossed above 50, which confirms the uptrend has resumed.

Coats announce that it has reached agreement with the trustee of the Coats UK Pension Scheme ("scheme") to switch off pension deficit repair payments1 from 1 January 2024. The Group has agreed to pay the scheme a one-off lump sum payment of £10 million ($12.6 million) to move it into an expected surplus position against the technical provisions funding basis and enable the switch off threshold to be comfortably met.

The shares bounced to 75p on this announcement but then fell back. This is a significant de-risking of the company in my view and will save them some £2m a month for as long as it lasts. I bought back at 69p (more shares than I had originally).

Don’t no why these were down this morning it was a very positive update especially expecting margin improvement from 15 to 17 that’s a decent jump in profits.Good luck all