Coats Group plc (Group), the new UK-based owner of Ortholite, and a Tier 2 supplier of critical components to the apparel and footwear industries, has released a trading update for the four-month year-to-date period through April 30 (April YTD). The move came as the company prepares for its Annual General Meeting (AGM) on Wednesday, May 20, 2026.
All trend references reported in the April YTD trading update were said to be at organic constant exchange rates (CER) unless otherwise specified.
The Group said it delivered a robust performance for the April YTD period with revenue dipping 1 percent year-over-year against a solid pre-tariff comparative period in 2025.
Apparel division revenue was reportedly up 1 percent for the April YTD period, said to strongly outperform the core thread end market, driven by the company’s key differentiators of operational agility, enduring customer relationships and global manufacturing capabilities. The Group said the Apparel division continues to win market share across its portfolio including in China domestic and also saw strong growth in automotive thread.
Footwear division revenue was 4 percent lower on an organic basis, which was said to be in line with expectations. The Group estimated the trend to be in line with industry trends, as customer caution persisted and inventory levels remained low.
OrthoLite revenue was said to be lower than the same period last year on a pro forma basis against a very strong prior year comparative period and temporary capacity challenges in Indonesia, where it is expanding its footprint.
“Our plans to realise cost synergies are on track and we are increasingly positive on sales synergies,” the company said in the trading update. “We remain confident in OrthoLite’s growth prospects.”
Group EBIT margin was said to be “slightly higher” than the April YTD period last year, reportedly reflecting “the benefits of the 2025 footprint consolidation in Footwear and the positive contribution from OrthoLite.”
“While the ongoing tensions in the Middle East have not had a material impact on trading to date, we are monitoring conditions closely,” the company said on Wednesday ahead of the AGM. “We have promptly enacted our well-honed operational and commercial playbook ensuring optimal pricing and cost discipline. We will continue to take action as required to mitigate supply chain pressures and raw material and energy cost increases.”
Outlook
The Group’s full year outlook was said to remain unchanged with a modest second half profit weighting due to expected inflation cost recovery timing.
Coats Group plc expects full-year free cash flow generation to remain strong, enabling the Group to continue to reduce leverage into its target range of 1x to 2x by year-end.
Image courtesy Ortholite/Coats Group plc
