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(Alliance News) - Coats Group PLC on Thursday said it has seen an improved performance in the past couple of months after its revenue decreased by almost a quarter in the first half of 2020.
The industrial thread manufacturer reported a 24% decline in revenue for the six months to the end of June to USD536 million from USD705 million a year earlier. On a constant currency basis, revenue fell by 21% year-on-year.
Coats reported a significant impact from the supply-and-demand disruption caused by Covid-19. In the second quarter of 2020, organic revenue was down 45% after a 8% fall in the first quarter.
Pretax profit declined to USD10.6 million in the first half from USD85.4 million a year prior. Net exceptional and acquisition-related items before taxation were USD5.1 million in the first half of 2020 versus a USD300,000 credit a year before.
"I am proud of the speed, confidence, clarity and empathy with which Coats has responded to the Covid-19 challenges," said Chief Executive Rajiv Sharma.
"We have seen an improving sales trend in recent, albeit low-season, months with organic sales declines reducing to 25% in June and 18% in July. As we look to the remainder of the second half we are mindful of the ongoing wider macro-economic uncertainty caused by Covid-19 and the importance of trading in the peak months of September, October and November," added Sharma.
FTSE 250-listed Coats Group shares were trading 3.9% lower on Thursday at 59.60 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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