Revisits are often disappointing, as fans of TV shows such as Grand Designs and Location, Location, Location know well. ‘Where are they now’ episodes tend to involve reels of old footage of a project’s groundworks until, right at the end, the developers are revealed to have run out of money or built an ill-advised conservatory. We’ll aim to avoid such potholes in revisiting the investment case for Coats (COA), which has had an eventful – and encouraging – 10 months since it last appeared in our Ideas section last April.
- Smart cost-saving plan
- Pricing power
- Progress on pension
- New footwear division
- Grim consumer outlook
- Labour shortages
Coats makes industrial thread – and lots of it. According to one fund manager, its factories make enough thread every three hours to stretch to the moon and back. It has 34,000 customers in 100 countries and, with a 23 per cent market share, is over twice the size of its nearest competitor.