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| Coats Viyella plc announces preliminary results for year to 31 December 2000. Financial Summary Highlights - Period under Review
Highlights - Post Balance Sheet
Coats Viyella Plc announces interim results for the six months to 30 June 2000 Financial Highlights:
Operational Performance:
Strategic Review: Coats Viyella has separately announced today its intention to refocus the Group on Coats, the global thread business, and to divest all other operations except the Jaeger and Viyella retail businesses. Enquiries:
COATS VIYELLA PLC TRADING STATEMENT Coats Viyella Plc today makes its statement on trading in the second half of 1999. The second half performance of Coats has been in line with expectations foreshadowed at the time of the interim results. The operating performance of the Thread business is ahead of the same period last year, with the benefits of reorganisation schemes coming through strongly. India is now recovering from the effects of the mid-year industrial action and the Garment business has been sold as previously announced. The integration of Barbour Threads is progressing well. Performance in the Viyella businesses has been mixed. Operating performance in the Fashion Retail business is ahead of last year. Home Furnishings finished the year well on the back of the housing market recovery and results will be modestly ahead of last year. On the other hand, the Contract Clothing businesses supplying Marks & Spencer have suffered from tough High Street trading conditions. Overall, the Group expects the operating performance of its continuing businesses, in the second half of the year, to be ahead of last year. Enquiries: Brunswick Group Limited | ||||||||||||||||
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| COATS VIYELLA PLC TRADING STATEMENT The poor market conditions which prevailed during the second half of 1998 have continued into the first half of 1999. The UK high street has seen weak demand and aggressive competition. This contrasts with the first quarter of last year which was a period of relatively buoyant demand in most of our markets. The Coats businesses have suffered from weak demand in most thread markets although conditions have improved lately. Asian markets have shown a steady improvement from the difficult conditions in 1998, and though industrial action in India had a negative impact on the results in the second quarter, this problem is now in the process of being resolved. Results in Brazil were affected by the devaluation in January but trading performance since then has recovered more quickly than expected. Cost reductions from reorganisation are making an impact, notably in North America and Europe. The Viyella businesses, despite operating in an adverse trading climate, have begun to show the benefit of radical management action. In particular Contract Clothing has shown improved results in the first half of this year because the benefits of reorganisation and actions on improved efficiency have outweighed the reduction in volumes. The management of the retail businesses have made significant cost savings and taken action to improve retail operating standards. These steps have begun to yield benefits for Jaeger though the impact of reduced sales has not been mitigated in the first half of this year. Viyella ladieswear continues to perform in line with high street norms. Home Furnishings, which experienced particularly strong sales in the first quarter of last year, has been materially affected by the subdued activity in the high street and by reduced volumes in commission finishing; the benefits of restructuring undertaken at the beginning of 1999 will not show through until later in the year. Overall trading results in the first half of 1999 will be below those of last year. Recently there has been a discernible improvement in demand in the Coats business and in the Viyella businesses and this trend is expected to continue. Cash management in the continuing businesses remains strong and the Group has benefited from the cash proceeds and exceptional profit from the sale of the Precision Engineering Division which was completed in April. Enquiries: Louise Charlton | ||||||||||||||||
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FUTURE DIRECTION AND BOARD CHANGES Following the announcement of the proposed disposal of the Precision Engineering business, the Board has resolved that the future direction of the group will be focused on its two core businesses of Coats, the global leader in industrial and consumer thread under the direction of Martin Flower, and the Viyella businesses led by Michael Hartley. Against the backdrop of a significantly strengthened balance sheet and financial position, the Board will focus its efforts on developing the two core businesses to enable them to become dominant players in their global and national markets. As a consequence, Michael Ost, Chief Executive, will be leaving the group following the EGM on 14 April having successfully executed his strategy of focus and disposal. At the same time, Dr David Speirs, Chief Executive of Precision Engineering, will step down from the Board following the sale of that business. Sir David Alliance, having previously indicated to the Board his desire to step down during 1999, and in the light of the above, will become Non-Executive Chairman with immediate effect and will retire from the Board following the AGM in July. Sir Harry Djanogly, currently a Non-Executive Director, has today been appointed Non-Executive Deputy Chairman and will become Chairman following the AGM. At that time Sir Victor Blank will become Non-Executive Deputy Chairman. The three Executive Directors, Martin Flower, Michael Hartley and Kazia Kantor, Group Finance Director, will report to Sir Harry Djanogly with immediate effect. Commenting today Sir Harry Djanogly said: "It is with regret that w shall say goodbye to Sir David Alliance. He has been a champion for the British textile industry during several decades and has shown great resource in sustaining a number of famous retail and manufacturing brands under the Coats Viyella banner. We wish him well in his continuing range of enterprises and are pleased that his advice will be available to us when required. "Michael Ost has taken great strides to restructure the Group since he joined us, culminating in the recent successful sale of Precision Engineering. Now that the group is smaller and the two parts - the Coats and Viyella businesses - are led by two highly experienced and talented Board directors, Martin Flower and Michael Hartley respectively, Michael Ost felt his immediate task was completed. We wish him every success in his future plans." Press enquiries: Coats Viyella Plc Brunswick Group Limited Sale of Precision Engineering Division ("PED") Coats Viyella announces that it has reached agreement to sell its Precision Engineering Division (Dynacast) to Cinven, a leading private equity investor, for a cash consideration of 322 million on a debt-free basis. Proceeds from the Disposal will be applied initially to reduce Group borrowings. The sale is conditional upon approval by shareholders of Coats Viyella at an extraordinary general meeting; a circular convenin an extraordinary general meeting will be posted to Shareholders in due course, which will contain further information on PED. Commenting today, Sir David Alliance, Chairman of Coats Viyella, said: "Today's transaction, together with the recent trading update, underlines the strides forward that the management team is making at both operational and strategic levels to create value for shareholders. I would like to thank Cinven for their efficiency and to congratulate the management team on having moved with impressive speed to complete this deal ahead of the timetable they set themselves. We all wish Dr David Speirs and his team good fortune for the future. Their recent successes in securing major global contracts have proven Precision Engineering's pre-eminence as a one-stop global supplier of precision-engineered components. For further information: Coats Viyella Plc J.P. Morgan Brunwick Group Limited Cinven Hudson Sandler | ||||||||||||||||
| 4th February 1999 Coats Viyella Clothing Knitwear Loughborough Coats Viyella Clothing Knitwear has announced with regret, its decision to close its knitwear manufacturing unit in Loughborough. The decision, which will affect 430 employees has been taken in order to achieve the effective cost base and to bring the Company's total manufacturing capacity into line with overall demand. There will be some transfer of manufacturing capacity to the Company's Shepshed site which will provide on-going employment for approximately 140 Loughborough employees. The Company is in consultation with employees and thier representatives and every effort is being made to seek alternative employment for those affected. Enquiries to: Mr Max Playfer | ||||||||||||||||
| 20th January 1999 Trading statement Coats Viyella Plc today makes its regular statement on current trading. Highlights: In the second half of the year, despite experiencing increasingly adverse conditions in most territories and sectors, the Group's performance is broadly in line with the expectations indicated at the time of the half-year announcement. Moreover, in the face of these tougher conditions, the Group has successfully reduced working capital and as a result has significantly improved its cash flow for the year. Sales in the Thread Division have suffered world-wide. However, towards the end of the year there were detectable improvements in Asia Pacific, Mexico and Brazil. Although there were price pressures in certain markets, these were mitigated in savings in raw material costs and in profit improvement initiatives. alloggio in albergo economico Stavanger Production and sales in the North American industrial segment declined as retailers and clothing manufacturers reduced stocks. Craft sales, however, have held up. In Europe the market continued to be weak in all territories either as a result of subdued consumer demand or structural shifts in the market. India has performed to expectation with the Thread business continuing its recovery and the Garments business growing satisfactorily. The Precision Engineering division has continued to grow its sales and to benefit from the increasing trend towards global sourcing. Conditions for the Plastics business were tough in the second half, but overall the business in the USA benefited from new contracts which came on stream in the second half of the year and which provide a good platform for growth in sales and profits in 1999. In common with their major competitors, the Viyella businesses have all been affected by the reduction in demand in the UK retail sector. Both margins and volumes have been under pressure. However, the steps taken to restructure and refocus the business have begun to show through in the results. The Clothing division, despite substantially lower sales, has continued to improve its profitability in the second half. Particular improvements have been achieved in Ladieswear and Hosiery. Build-ups of stock have been avoided by reducing production in the second half. The Home Furnishings division has seen very difficult market conditions. Volume and margin pressures in the UK bedwear sector and the continuing impact on the commission finishing businesses of the anti-dumping regulations which were imposed earlier in the year, have combined to produce a negative impact on performance. The Retail businesses have experienced mixed fortunes. The Viyella brand has performed well and achieved strong like-for-like sales growth, whilst Jaeger suffered from weak demand. Pre-exceptional profit of the Group for 1998 will be broadly in line with expectations. The continuing programme of rationalisation and profit improvement will provide a sound base for progress in 1999. | ||||||||||||||||
| 3rd December 1998 Coats Viyella: Potential Disposal Since Coats Viyella's announcement on 8th September 1998 that it had deferred the demerger of the Viyella business, the group has received several approaches for its Precision Engineering Division ("PED"). Given the credibility of the counterparties, and the level of interest expressed, the Board of Coats Viyella has determined that it should explore these approaches to establish whether sales of PED offers more value to Coats Viyella than would be realisable through the demerger of PED as previously intended. Accordingly, it has retained J P Morgan to handle the process, and discussions are in their early stages with a number of potential buyers. A further update will be given when the company makes its usual Trading Statement in January. For further information: Michael Ost, Group Chief Executive Louise Charlton/Patrick Handley | ||||||||||||||||
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