LONDON, October 23, 2015 /PRNewswire/ --
Edison Investment Research, a leading international investment research firm, announces the initiation of full coverage of Coats Group
Highlights of the analysis by Edison's Industrials analysts Toby Thorrington and Roger Johnston include:
Coats Group is a leading producer of industrial thread and consumer craft textiles with over 70 manufacturing sites internationally. Its divisions are Industrial - Apparel & Footwear (c 64%) and Speciality (c 16%) - and Crafts (20%) based on FY14 revenue.
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Since confirming the company's newly independent status at the end of February 2015, Coats' share price has increased by c 28% in contrast to a c 7% decline in the FTSE All-Share Index. We see prospective P/E multiples in single digits, falling to 7.2x by FY17. Allowing for a material cash injection into the UK pension schemes, we believe that EV/EBITDA multiples adjusted for this would be in the mid- to low-single digit multiple range. We acknowledge that there are uncertainties with regard to the ultimate outcome. In the absence of pension recovery cash payments, we believe that Coats' cash-generation profile is capable of supporting a dividend payout yielding of up to 5.7% at the current share price level.
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About Edison: Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals works with leading companies, fund managers and investment banks worldwide to support their capital markets activities. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority (http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).
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For more information please contact:
Toby Thorrington
Edison Investment Research
+44-(0)20-3077-5721
Roger Johnston
Edison Investment Research
+44-(0)20-3077-5722
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