Final Results - Part 2
07 Marzo 2003 - 8:02AM
UK Regulatory
RNS Number:4240I
Coats PLC
7 March 2003
PART 2
Notes to the accounts
1 Continuing and discontinued operations and acquisitions
2002 2001 (Restated)
__________ ___________ ______ __________ ____________ _______
Continuing Discontined Total Continuing Discontinued Total
#m #m #m #m #m #m
_____________________ __________ ___________ ______ __________ ____________ _______
Turnover 1031.4 124.2 1155.6 1069.4 177.6 1247.0
_____________________ __________ ___________ ______ __________ ____________ _______
Cost of sales 678.3 63.3 741.6 720.0 90.6 810.6
_____________________ __________ ___________ ______ __________ ____________ _______
Net operating expenses
Distribution costs 205.6 60.8 266.4 215.1 72.0 287.1
Administrative expenses 93.6 17.3 110.9 94.3 23.6 117.9
Other operating income (1.1) (2.4) (3.5) (1.6) (2.9) (4.5)
(note 3)
__________ ___________ ______ __________ ____________ _______
Total 298.1 75.7 373.8 307.8 92.7 400.5
_____________________ __________ ___________ ______ __________ ____________ _______
Operating profit 55.0 (14.8) 40.2 41.6 (5.7) 35.9
_____________________ __________ ___________ ______ __________ ____________ _______
Profit on sale of fixed 3.4 5.3 8.7 9.2 4.4 13.6
assets
_____________________ __________ ___________ ______ __________ ____________ _______
Sale or termination of
operations:
Losses (7.0) (3.1) (10.1) (24.1) (16.3) (40.4)
Gains - - - - 13.6 13.6
__________ ___________ ______ __________ ____________ _______
(7.0) (3.1) (10.1) (24.1) (2.7) (26.8)
_____________________ __________ ___________ ______ __________ ____________ _______
During the year ended 31 December 2002 the Group continued to withdraw from its
Indian Textile business and completed the sale of its Jaeger Knitwear business.
A loss of #10.1 million was incurred in respect of the disposal of these
operations. The sale of the Jaeger Knitwear business is shown as loss on
disposal of discontinued operations following the sale of substantially the
whole of the remainder of the Fashion Retail business in January 2003.
Subsequent to the year end, on 23 January 2003 the Group completed the disposal
of the majority of its Fashion Retail businesses. In accordance with FRS3, the
results of the businesses disposed have been shown as discontinued and prior
year figures have been restated accordingly.
For the year ended 31 December 2001, the loss on disposal of continuing
operations primarily related to the disposal of a US crafts business, Dimensions
Inc, at a total loss of #11.8 million including #12.7 million of previously
written-off goodwill, and the exit from apparel fabric manufacturing in Madura
Coats Limited in India at a cost of #12.8 million. The balance represented net
adjustments in respect of prior year disposals.
The loss on disposal of discontinued operations related to the sale of the
Group's Branded Clothing businesses and all Home Furnishing businesses other
than the Dorma UK bedwear operations.
All acquisitions during the year have been accounted for using the acquisition
method.
None of these acquisitions was material for the purposes of The Companies Act
1985, FRS 3 or FRS 6.
2(a) Analysis of turnover, operating profit and net assets by product
Turnover Operating profit Net assets
__________ _________ __________ __________ __________ __________
2002 2001 2002 2001 2002 2001
Restated Restated Restated
#m #m #m #m #m #m
__________ _________ __________ __________ __________ __________
Thread
UK and Europe 321.6 325.9 12.8 18.1 125.8 132.8
North America 291.0 304.5 12.0 11.7 174.1 197.6
South America 87.6 103.7 11.5 12.6 64.1 78.8
Asia 222.4 203.8 35.7 29.5 147.0 151.4
Corporate (including net - - 5.3 0.8 (7.8) 28.8
negative goodwill
amortisation of #2.1 million
(2001 - #nil))
________ ________ ________ ________ ________ ________
Total Thread 922.6 937.9 77.3 72.7 503.2 589.4
________ ________ ________ ________ ________ ________
Reorganisation costs and (15.2) (25.7)
impairment
of fixed assets
Exceptional items - (1.1)
________ _________
Thread operating profit 62.1 45.9
________ _________
Other businesses
India Textiles 22.6 32.4 (0.2) (2.3) 5.8 13.7
Bedwear 75.7 86.6 (1.5) 0.7 22.8 23.7
Fashion Retail 134.7 155.7 (16.3) (2.3) 44.4 50.5
Other - 34.4 - (0.4) - 0.7
________ ________ ________ ________ ________ ________
Total other businesses 233.0 309.1 (18.0) (4.3) 73.0 88.6
________ ________ ________ ________ ________ ________
Reorganisation costs and (3.8) (5.8)
impairment
of fixed assets
Exceptional items (0.1) 0.1
________ ________
Other businesses operating loss (21.9) (10.0)
________ ________
Total Group 1155.6 1247.0 40.2 35.9 576.2 678.0
________ ________ ________ ________
Associated companies 0.9 0.6
Profit on sale of fixed assets 8.7 13.6
Loss on sale or termination of (10.1) (26.8)
operations
________ ________
Profit before interest 39.7 23.3
Net interest payable (9.4) (10.5)
Other finance income 14.3 10.2
________ ________
Profit before tax 44.6 23.0
Tax on profit (9.1) (11.0)
________ ________
Profit after tax 35.5 12.0
________ ________
Headline basis
Profit before tax 44.4 38.0
________ ________
Profit after tax 34.9 26.6
________ ________
The analysis of turnover, operating profit before
reorganisation costs and impairment of fixed assets
and exceptional items, and net assets was:
Continuing
Total Thread 922.6 937.9 77.3 72.7 503.2 589.4
India 22.6 32.4 (0.2) (2.3) 5.8 13.7
Textiles
Bedwear 75.7 86.6 (1.5) 0.7 22.8 23.7
Fashion 10.5 12.5 (3.2) (1.1) 0.8 2.2
Retail
_______ ________ _______ ________ ______ ________
1031.4 1069.4 72.4 70.0 532.6 629.0
Discontinued
Fashion 124.2 143.2 (13.1) (1.2) 43.6 48.3
Retail
Other - 34.4 - (0.4) - 0.7
_______ ________ _______ ________ ______ ________
1155.6 1247.0 59.3 68.4 576.2 678.0
_______ ________ _______ ________ ______ ________
Operating profit margins for the Thread business
before reorganisation costs and impairment of fixed
assets and exceptional items were:
Turnover Operating profit Operating margin
________ _______ _______ ________ ______ ________
2002 2001 2002 2001 2002 2001
Thread #m #m #m #m % %
________ _______ _______ ________ ______ ________
UK and 321.6 325.9 12.8 18.1 4.0% 5.6%
Europe
North 291.0 304.5 12.0 11.7 4.1% 3.8%
America
South 87.6 103.7 11.5 12.6 13.1% 12.2%
America
Asia 222.4 203.8 35.7 29.5 16.1% 14.5%
Corporate - - 5.3 0.8 - -
________ _______ _______ ________ ______ ________
Total 922.6 937.9 77.3 72.7 8.4% 7.8%
Thread
________ _______ _______ ________ ______ ________
2(b) Geographical analysis of turnover, operating profit and net assets by
location
Turnover Operating profit Net assets
__________ _________ __________ __________ __________ __________
2002 2001 2002 2001 2002 2001
Restated Restated Restated
#m #m #m #m #m #m
__________ _________ __________ __________ __________ __________
United Kingdom 121.8 137.3 (5.9) (3.4) 53.0 88.4
Rest of Europe 261.3 259.6 17.6 20.2 88.8 91.3
North America 301.0 316.3 9.3 9.9 175.5 200.3
South America 87.6 103.7 11.5 12.6 64.1 78.8
Asia, Australasia and Africa 259.7 252.5 39.9 30.7 151.2 170.2
________ ________ ________ ________ ________ ________
Total continuing operations 1031.4 1069.4 72.4 70.0 532.6 629.0
Discontinued operations 124.2 177.6 (13.1) (1.6) 43.6 49.0
________ ________ ________ ________ ________ ________
1155.6 1247.0 59.3 68.4 576.2 678.0
________ ________ ________ ________ ________ ________
Reorganisation costs and impairment (19.0) (31.5)
of fixed assets
Exceptional items (0.1) (1.0)
________ ________
Operating profit 40.2 35.9
Associated companies 0.9 0.6
FRS 3 exceptional items (1.4) (13.2)
________ ________
Profit before interest 39.7 23.3
________ ________
Net debt (104.4) (128.1)
Other fixed and current asset 29.8 30.8
investments ________ ________
Net assets per consolidated balance 501.6 580.7
sheet ________ ________
The geographical analysis of
discontinued operations by location
was:
United Kingdom 121.0 155.1 (13.0) (0.7) 43.8 49.4
Rest of Europe 0.4 19.7 - (1.2) (0.6) (0.4)
North America 2.8 2.8 (0.1) 0.3 0.4 -
________ ________ ________ ________ ________ ________
124.2 177.6 (13.1) (1.6) 43.6 49.0
________ ________ ________ ________ ________ ________
Note
The geographical analysis of turnover by destination has not been presented as
it does not differ materially from the analysis by location.
3 Operating profit
2002 2001
#m #m
Operating profit is
stated after charging:
Depreciation - Owned assets 41.7 45.0
- Leased assets 0.3 0.5
Amortisation of goodwill (1.6) 0.7
Reorganisation costs 17.1 31.6
Impairment of fixed 1.9 (0.1)
assets
Exceptional items 0.1 1.0
Hire of plant and 6.4 6.4
machinery
Other operating lease 21.5 20.8
rentals
Research and development 2.1 2.2
expenditure
Directors' remuneration 1.5 2.1
( note 4 )
Auditors' remuneration - Audit fees 1.7 1.7
- Non audit related fees - UK - 0.1
- Overseas 0.3 0.2
__________________
In addition to the non audit related fees charged to operating profit, a further
#4.5 million was incurred in 2001 in respect of advisory work in relation to
the disposal of businesses, and was included in the loss on sale or termination
of operations.
and after crediting other operating income:
Rental income net of expenses 1.1 0.9
Royalties and licensing income 0.9 1.1
Credit card income 1.5 1.6
Exchange gain - 0.9
________ ________
3.5 4.5
________ ________
______________________________________________________________
Product category analysis of reorganisation costs and impairment of fixed assets
Thread
UK and Europe 8.9 11.1
North America 3.8 10.5
South America 1.1 1.8
Asia 1.4 1.7
Corporate - 0.6
________ ________
Total Thread 15.2 25.7
India Textiles 0.3 -
Bedwear 1.3 1.6
Fashion Retail 0.5 -
________ ________
Continuing operations 17.3 27.3
Discontinued operations
Fashion Retail 1.7 4.1
Other - 0.1
________ ________
Total 19.0 31.5
______________________________________________________________
Analysis of other exceptional items
Impairment of goodwill - 1.1
________ _______
Continuing operations - 1.1
Discontinued operations 0.1 (0.1)
________ _______
Total 0.1 1.0
________ _______
______________________________________________________________
4 Directors' emoluments
2002 2001
#m #m
Aggregate emoluments 1.5 1.1
Compensation for loss of office - 1.0
Total 1.5 2.1
________________________________________________________________________________________
5 Employees
2002 2001
Number Number
_____________________________________________________________________ ________ ________
The average numbers employed by the Group during the year were:
Direct 19250 22310
Indirect 5373 5291
Staff 10880 12069
________ ________
35503 39670
_____________________________________________________________________ ________ ________
Comprising:
UK 5484 6702
Overseas 30019 32968
________ ________
35503 39670
_____________________________________________________________________ ________ ________
The total numbers employed at the end of the year were:
UK 4879 5919
Overseas 29453 31162
________ ________
34332 37081
_____________________________________________________________________ ________ ________
The costs incurred in respect of these employees were:
#m #m
________ ________
Wages and salaries 287.6 309.7
Social security 31.7 37.1
costs
Other pension costs included in operating profit 11.6 15.5
(note 29):
included in other finance costs (14.3) (10.2)
included in statement of total recognised 40.8 5.9
gains and losses
________ ________
357.4 358.0
_____________________________________________________________________ ________ ________
6 Interest receivable and similar income
2002 2001
#m #m
_____________________________________________________________________ ________ ________
Interest receivable 7.7 9.5
Income from other fixed and current asset investments 2.5 2.6
Gain on sale of other fixed and current asset investments - 0.6
________ ________
Gross interest receivable and similar income 10.2 12.7
Less: credit card interest transferred to other operating income (0.5) (0.7)
________ ________
9.7 12.0
_____________________________________________________________________ ________ ________
7 Interest payable and similar charges
Loans 6.2 10.6
Bank overdrafts and other borrowings 7.7 6.9
Discounting interest re onerous leasehold provisions 0.1 0.1
Finance leases 0.3 0.7
________ ________
14.3 18.3
Cost of financing convertible debt (note 17) 3.9 3.9
Share of net interest payable of associated companies 0.9 0.3
________ ________
Total interest payable and similar charges 19.1 22.5
_____________________________________________________________________ ________ ________
The above interest includes interest on borrowings not repayable in - 0.6
full within five years of:
_____________________________________________________________________ ________ ________
8 Tax on profit on ordinary activities
2002 2001
Restated
#m #m
_______________________________ ______________ __________ _________
UK taxation based on profit
for the year:
Corporation tax at 30% 6.1 5.1
Double taxation relief (6.1) (5.1)
Deferred taxation 1.6 (1.4)
Prior year adjustments - Corporation tax (2.0) 0.8
Deferred taxation 0.3 0.9
_________ _________
(1.7) 1.7
__________ __________
Total UK taxation (0.1) 0.3
__________ __________
Overseas taxation:
Current taxation 12.4 10.6
Deferred taxation (1.6) 0.4
__________ __________
10.8 11.0
Prior year adjustments - Current taxation (1.3) (1.7)
Deferred taxation (0.3) 1.3
_________ _________
(1.6) (0.4)
__________ __________
Total Overseas taxation 9.2 10.6
__________ __________
Associated companies taxation - 0.1
__________ __________
9.1 11.0
_______________________________ ______________ __________ _________
The tax charge for the year ended 31 December 2001 has been restated to reflect
the adoption of FRS 19 - Deferred tax, resulting in a #0.1 million reduction in
overseas deferred taxation.
The standard rate of current tax for the year, based on the UK standard rate of
corporation tax, is 30% (2001 - 30%). The current tax charge for the year is
lower than 30% (2001: higher than 30%) for the reasons set out in the following
reconciliation:
___________________________________________________________
_______________________________ ______________ __________ _________
Profit on ordinary activities before tax 44.6 23.0
_______________________________ ______________ __________ _________
Tax on profit on ordinary activities at standard rate 13.4 6.9
Adjusted for the effects of:
Expenses not deductible for tax purposes (including 3.1 3.5
goodwill amortisation)
Income not liable to taxation (4.2) (5.2)
Losses not recognised 9.4 5.4
Utilisation of brought forward losses not previously (5.2) (1.6)
recognised
Capital allowances for the year in excess of depreciation (2.1) 1.3
Other short term timing differences (1.2) (2.6)
Profits on sale of fixed assets covered by reliefs (2.4) (3.9)
Losses on sales or termination of operations not eligible 2.7 6.6
for relief
Inter-group dividends not covered by double tax relief 1.2 1.7
Lower rates of tax on overseas earnings (2.8) (0.6)
Withholding tax on remittances 2.5 1.9
Corporation taxes not on profits 1.7 1.7
Local tax incentives (1.8) (3.8)
Other (1.9) (0.6)
__________ _________
Current tax charge for the year 12.4 10.7
_______________________________ ______________ __________ _________
Actuarial losses have been taken to reserves along with the associated tax
credit of #12.3 million (2001 - #1.5 million).
9 Profit for the year
________________________________________________________________ __________ _________
The Company's loss for the financial year was (114.1) (122.9)
________________________________________________________________ __________ _________
Under the provisions of Section 230 Companies Act 1985 a Profit and Loss Account
for the Company is not presented.
10 Ordinary dividends
2002 2001
2002 2001 #m #m
_____________________________________________ ______ _______ ________ _________
Ordinary shares (equity shares)
Interim 1.50 p 1.50 p 10.6 10.6
Special second interim 2.50 p - p 17.8 -
Final - p 1.50 p - 10.5
______ _______ ________ _________
4.00 p 3.00 p 28.4 21.1
______ _______ ________ _________
The interim dividend of 1.5p net per share was paid on 6 January 2003.
In connection with the recommended offer, the Board has declared a special
second interim dividend of 2.5p (in lieu of a final dividend for the year). The
payment of this dividend is conditional on the offer being declared wholly
unconditional. In the event that this offer is not successful, this special
second interim dividend will not be paid. In this situation the Board will
propose a final dividend.
11 Earnings per share
2002 2001
Restated
2002 2001 #m #m
_____________________________________________________ ______ _______ ________ _________
Earnings per share are based on profit available for
Ordinary shareholders of: 29.6 10.2
and on average number of shares of: 706.4 m 703.6 m
resulting in basic and diluted earnings per share of: 4.2 p 1.4 p
Less: amortisation of goodwill (0.2) p 0.1 p (1.6) 0.7
impairment of goodwill - p 0.2 p - 1.1
profit on sale of fixed assets (1.2) p (1.9) p (8.7) (13.6)
losses on sale or termination of
operations 1.4 p 3.8 p 10.1 26.8
taxation relating to these items (0.1) p (0.1) p (0.4) (0.4)
minority interests relating to these items (0.3) p (0.7) p (2.0) (5.1)
______ _______ ________ _________
Headline earnings per share 3.8 p 2.8 p 27.0 19.7
_____________________________________________ ______ _______ ________ _________
Headline earnings per share have been calculated in accordance with Statement of
Investment Practice Number 1 issued by The Institute of Investment Management
and Research and are provided in order to assist users of accounts to identify
earnings derived from trading activities.
Exercise of outstanding share options and conversion of all the #60.458 million
(2001 - #60.461 million) 6.25% Senior Convertible Bonds of Coats plc would not
result in any dilution of earnings per share.
12 Tangible assets
Land Plant,
and machinery
buildings & vehicles Total
#m #m #m
____________________________________________________ _________ ___________ ________
Group
Cost
At beginning of year 211.3 661.7 873.0
Exchange difference (9.0) (33.1) (42.1)
Subsidiaries acquired - 0.7 0.7
Subsidiaries disposed (0.7) (14.9) (15.6)
Additions 4.8 52.1 56.9
Disposals (7.1) (35.9) (43.0)
____________________________________________________ _________ ___________ ________
At 31 December 2002 199.3 630.6 829.9
____________________________________________________ _________ ___________ ________
Depreciation
At beginning of year 74.6 395.9 470.5
Exchange difference (3.5) (16.2) (19.7)
Subsidiaries acquired - 0.5 0.5
Subsidiaries disposed (0.3) (11.9) (12.2)
Charge for the year 5.0 37.0 42.0
Impairment of fixed assets - 1.9 1.9
Disposals (4.2) (28.7) (32.9)
____________________________________________________ _________ ___________ ________
At 31 December 2002 71.6 378.5 450.1
____________________________________________________ _________ ___________ ________
Net book value
At 31 December 2002 127.7 252.1 379.8
____________________________________________________ _________ ___________ ________
At beginning of year 136.7 265.8 402.5
____________________________________________________ _________ ___________ ________
2002 2001
Land and buildings #m #m
____________________________________________________ ___________ ________
Cost
Freehold 163.4 173.1
Long leasehold 14.1 14.3
Short leasehold 21.8 23.9
____________________________________________________ ___________ ________
199.3 211.3
____________________________________________________ ___________ ________
Accumulated depreciation
Freehold 56.4 59.1
Long leasehold 4.2 3.9
Short leasehold 11.0 11.6
____________________________________________________ ___________ ________
71.6 74.6
____________________________________________________ ___________ ________
The cost of long leasehold land and buildings includes capitalised interest of
#1.4 million.
(2001 #1.4 million).
Plant, machinery and vehicles
The net book value of capitalised finance leases included in plant, machinery
and vehicles is #0.8 million (2001 #1.5 million).
13 Investments
Associated
companies Other Total
#m #m #m
_________________________________________________ __________ _______ ________
Group
Cost
At beginning of year 0.7 8.7 9.4
Exchange - (0.2) (0.2)
Transfer to investment in subsidiaries - (0.1) (0.1)
Disposals - (0.4) (0.4)
_________________________________________________ __________ _______ ________
At 31 December 2002 0.7 8.0 8.7
_________________________________________________ __________ _______ ________
Provisions
At beginning of year - (4.8) (4.8)
Exchange - - -
_________________________________________________ __________ _______ ________
At 31 December 2002 - (4.8) (4.8)
_________________________________________________ __________ _______ ________
Share of profits/(losses) retained
At beginning of year 1.7 - 1.7
Share of losses for the year (0.1) - (0.1)
_________________________________________________ __________ _______ ________
At 31 December 2002 1.6 - 1.6
_________________________________________________ __________ _______ ________
Net book value
At 31 December 2002 2.3 3.2 5.5
_________________________________________________ __________ _______ ________
At beginning of year 2.4 3.9 6.3
_________________________________________________ __________ _______ ________
Including investments listed on a recognised
Stock Exchange
At 31 December 2002 - 2.3 2.3
_________________________________________________ __________ _______ ________
At beginning of year - 2.5 2.5
_________________________________________________ __________ _______ ________
Other fixed asset investments include an investment of #0.3 million (2001 - #0.3
million) in the Company's own shares held by the Employee Share Ownership Plan.
Other fixed
Subsidiaries Asset
Shares Loans Investments Total
Company #m #m #m #m
_____________________________________________ _______ _______ __________ ___________
Cost
At beginning of year 1622.2 493.6 6.2 2122.0
Additions 8.5 298.4 - 306.9
Group transfers (829.5) - - (829.5)
Repaid - (293.7) - (293.7)
_____________________________________________ _______ _______ __________ ___________
At 31 December 2002 801.2 498.3 6.2 1305.7
_____________________________________________ _______ _______ __________ ___________
Provisions
At beginning of year - - (5.3) (5.3)
Provided in the year (44.0) (94.7) - (138.7)
_____________________________________________ _______ _______ __________ ___________
At 31 December 2002 (44.0) (94.7) (5.3) (144.0)
_____________________________________________ _______ _______ __________ ___________
Net book value
_____________________________________________ _______ _______ __________ ___________
At 31 December 2002 757.2 403.6 0.9 1161.7
_____________________________________________ _______ _______ __________ ___________
At beginning of year 1622.2 493.6 0.9 2116.7
_____________________________________________ _______ _______ __________ ___________
Loans to subsidiaries include #nil million (2001 - #2.4 million) in respect of
back-to-back finance leases. The maturity profile of these leases is shown in
note 18.
14 Stocks
Group Company
________ ________ ________ ________
2002 2001 2002 2001
#m #m #m #m
____________________________________________ ________ ________ ________ ________
Raw materials and consumables 52.8 66.7 - -
Work in progress 66.1 67.9 - -
Finished goods and goods for resale 136.7 157.3 - -
____________________________________________ ________ ________ ________ ________
255.6 291.9 - -
____________________________________________ ________ ________ ________ ________
15 Debtors
Group Company
________ ________ ________ ________
2002 2001 2002 2001
#m #m #m #m
____________________________________________ ________ ________ ________ ________
Debtors due within one year:
Trade debtors 189.4 185.7 - 0.1
Amounts owed by subsidiaries - - 3.4 3.5
Amounts owed by associated companies 0.4 1.5 - -
Corporation and overseas tax recoverable 9.2 12.1 - 0.6
Other debtors 31.1 28.4 0.1 0.5
Prepayments and accrued income 11.7 11.3 - 0.3
____________________________________________ ________ ________ ________ ________
241.8 239.0 3.5 5.0
____________________________________________ ________ ________ ________ ________
Debtors due in more than one year:
Trade debtors 0.6 1.0 - -
Amounts owed by associated companies 0.8 - - -
Other debtors 8.4 15.0 - 0.7
Prepayments and accrued income 0.2 0.2 - -
____________________________________________ ________ ________ ________ ________
10.0 16.2 - 0.7
____________________________________________ ________ ________ ________ ________
16 Current asset investments
Group Company
________ ________ ________ ________
2002 2001 2002 2001
#m #m #m #m
____________________________________________ ________ ________ ________ ________
Listed investments 23.7 23.8 - -
Unlisted investments 0.6 0.7 - -
____________________________________________ ________ ________ ________ ________
24.3 24.5 - -
____________________________________________ ________ ________ ________ ________
Market value of listed investments 24.2 25.4 - -
____________________________________________ ________ ________ ________ ________
17 Other creditors (amounts falling due within one year)
Group Company
________ ________ ________ ________
2002 2001 2002 2001
#m #m #m #m
___________________________________________ ________ ________ ________ ________
Trade creditors 118.4 105.1 - 0.1
Loans and loan stock ( note 19 ) 74.1 117.0 55.4 76.5
Amounts owed to subsidiaries - - - 0.1
Amounts owed to associated companies 0.7 0.4 - -
Bills of exchange 5.6 8.2 - -
Corporation tax and overseas taxation 23.2 22.3 10.0 10.0
Other taxation and social security 15.7 23.4 - -
Payments in advance 0.6 - - -
Other creditors 30.0 21.5 0.4 0.4
Accruals and deferred income 33.5 37.7 2.9 2.4
Proposed dividends 28.3 21.1 28.3 21.1
Finance lease obligations (note 18) 0.6 0.8 0.3 0.5
Leaving indemnities (note 20) 4.6 3.0 - -
___________________________________________ ________ ________ ________ ________
335.3 360.5 97.3 111.1
___________________________________________ ________ ________ ________ ________
Convertible debt
Coats plc - #60.458m 6.25% senior
convertible
bonds due 2003 (see note) 60.4 - 60.4 -
___________________________________________ ________ ________ ________ ________
Note
On 9 August 1993, Coats plc issued #75.625m 6.25% senior convertible bonds.
As a result of redemptions and conversions since the issue, the value of bonds
currently in issue is #60.458 million (2001 - #60.461 million).
These bonds are convertible into ordinary shares of Coats plc at a price of 270p
per share at any time up to
2 August 2003. The conversion price was adjusted in accordance with the Trust
Deed with effect from 17 May 1994 as a result of the dilution effect of the
enhanced share dividend. The bonds then outstanding will be redeemed at their
principal value on 9 August 2003. The company has the power to redeem the bonds
in whole or in part at any time after 31 August 1998.
In accordance with FRS4, the expenses of the issue have been deducted from the
gross proceeds of the issue and, together with the finance costs, are allocated
to the profit and loss account over the life of the debt at a constant rate on
the carrying amount.
18 Other creditors (amounts falling due after more than one year)
Group Company
_______ ________ ______ _______
2002 2001 2002 2001
#m #m #m #m
____________________________________________ _______ ________ ______ _______
Trade creditors 0.1 0.7 - -
Loans and loan stock (note 19) 3.0 10.7 - -
Amounts owed to subsidiaries - - 423.0 1243.2
Other creditors 1.3 5.0 - 0.2
Accruals and deferred income 2.0 2.5 - -
Finance lease obligations 1.7 3.4 0.4 1.9
____________________________________________ _______ ________ ______ _______
8.1 22.3 423.4 1245.3
____________________________________________ _______ ________ ______ _______
The amounts owed to subsidiaries have no specified dates of repayment but are
repayable only on receipt of twelve months' notice and do not bear interest.
Finance lease obligations are repayable as
follows:
Within one year 0.6 0.8 0.3 0.5
Between one and two years 0.7 1.0 0.4 0.7
Between two and five years inclusive 0.5 1.5 - 0.9
Over five years 0.5 0.9 - 0.3
____________________________________________ ________ ________ ______ _______
2.3 4.2 0.7 2.4
____________________________________________ ________ ________ ______ _______
Convertible debt
Coats plc - #60.458 million 6.25% senior
convertible
bonds due 2003 (note 17) - 60.2 - 60.2
____________________________________________ ________ ________ ______ _______
19 Borrowings and financial instruments
(a) Loans and loan stock
Group Company
________ ________ ________ _____
2002 2001 2002 2001
#m #m #m #m
____________________________________________ ________ ________ ________ _____
Loans 77.1 118.5 55.4 76.5
Loan stock - 9.2 - -
________ ________ ________ _____
77.1 127.7 55.4 76.5
Repayable within one year (74.1) (117.0) (55.4) (76.5)
____________________________________________ ________ ________ ________ _____
Amounts falling due after more than one year 3.0 10.7 - -
____________________________________________ ________ ________ ________ _____
Repayable as follows:
Between one and two years 2.3 0.9 - -
Between two and five years 0.7 0.6 - -
After five years - 9.2 - -
____________________________________________ ________ ________ ________ _____
3.0 10.7 - -
____________________________________________ ________ ________ ________ _____
Loans
Repayable within five years:
Bank loans 73.4 112.0 52.3 73.1
Other loans 3.7 6.1 3.1 3.4
Not wholly repayable within five years:
Bank loans - 0.4 - -
____________________________________________ ________ ________ ________ _____
77.1 118.5 55.4 76.5
____________________________________________ ________ ________ ________ _____
Loans repayable after one year:
Other 3.0 1.5 - -
____________________________________________ ________ ________ ________ _____
The rates of interest paid on the above loans conform to the terms ruling in
each country and the repayment dates extend to 2007.
Group Company
________ ________ ________ ______
2002 2001 2002 2001
#m #m #m #m
____________________________________________ ________ ________ ________ ______
Loan stock
Not wholly repayable within five years:
Coats Patons Ltd 6.75% unsecured stock 2002/ - 6.5 - -
2007
Coats Patons Ltd 4.5% unsecured stock 2002/ - 2.7 - -
2007
____________________________________________ ________ ________ ________ ______
- 9.2 - -
____________________________________________ ________ ________ ________ ______
Net debt
Loans and loan stock 77.1 127.7 55.4 76.5
Bank overdrafts 26.8 24.9 26.5 22.6
Lease finance 2.3 4.2 0.7 2.4
____________________________________________ ________ ________ ________ ______
106.2 156.8 82.6 101.5
Convertible debt 60.4 60.2 60.4 60.2
____________________________________________ ________ ________ ________ ______
Total borrowings 166.6 217.0 143.0 161.7
Cash and short-term deposits (62.2) (88.9) (3.1) (19.7)
Net debt 104.4 128.1 139.9 142.0
____________________________________________ ________ ________ ________ ______
Group
________ ______
2002 2001
#m #m
________ ______
Maturity of debt
Total borrowings are repayable as follows:
Within one year 161.9 142.7
Between one and two years 3.0 62.1
Between two and five years 1.2 2.1
After five years 0.5 10.1
____________________________________________ ________ ______
166.6 217.0
____________________________________________ ________ ______
Total secured indebtedness 9.5 9.3
____________________________________________ ________ ______
Total indebtedness guaranteed by parent company 30.5 25.1
____________________________________________ ________ ______
(b) Financial instruments
Group
The Group's policies as regards derivatives and other financial information are
set out in the Financial review and the Statement of accounting policies. The
Group does not trade in financial instruments.
Short term debtors and creditors have been omitted from all disclosures other
than the currency profile.
Details of non-equity shares issued by the Group are given in note 22.
Maturity profile of financial liabilities
The maturity profile of the Group's total borrowings is stated in note 19(a).
Total borrowings include the Group's finance lease obligations and convertible
debt; the payment profile of both of these liabilities is further analysed in
note 17 and 18.
The 4.9% Cumulative preference shares issued by Coats plc are not redeemable
(see note 22).
Undrawn committed borrowing facilities
At 31 December 2002 the Group had undrawn committed borrowing facilities of
#117.8 million (2001 - #86.5 million) expiring in more than one year.
Currency analysis of net assets
The analysis of net assets by currency is as follows:
2002 2001
Restated
#m #m
______________________________________________________ _________ _________
Currency analysis of net assets
Sterling 141.8 172.1
US dollar and dollar related 211.0 264.0
Euro 72.2 71.3
Indian rupee 31.1 44.3
Other 120.1 126.3
______________________________________________________ _________ _________
576.2 678.0
______________________________________________________ _________ _________
Interest rate and currency profile
The interest rate and currency profile of the Group's financial liabilities and
assets by principal currency is stated after taking into account the various
interest rate and currency swaps entered into by the Group.
In this analysis, fixed rate financial liabilities and assets are defined as
those where the interest rate is fixed for a period of more than one year from
the balance sheet date.
Fixed Floating Non-interest
rate rate bearing Total
Financial liabilities at 31 December #m #m #m #m
2002
________________________________________ ________ ________ ___________ _______
Sterling cross currency swaps - (144.8) - (144.8)
Sterling 2.0 60.7 - 62.7
US dollar and related 36.7 142.4 0.4 179.5
Euro 5.8 9.0 0.2 15.0
Other 0.4 53.7 0.1 54.2
________________________________________ ________ ________ ___________ _______
Gross financial liabilities 44.9 121.0 0.7 166.6
________________________________________ ________ ________ ___________ _______
Fixed rate Non-interest
bearing
_____________ ______________ _____________
Weighted
Weighted average period Weighted
Average for which the average period
interest rate rate is fixed until maturity
Financial liabililities at 31 December % Years Years
2002
_____________________________________ _____________ ______________ _____________
Sterling 7.8 3.2 -
US dollar and related 4.4 2.5 -
Euro 5.0 1.9 2.3
Other 12.0 3.8 -
_____________________________________ _____________ ______________ _____________
Interest on floating rate liabilities is based on the relevant inter bank
offered rate.
Fixed Floating Non-interest
rate rate bearing Total
Financial liabilities at 31 December #m #m #m #m
2001
_____________________________________ _____________ _________ ___________ _________
Sterling cross currency swaps - (172.5) - (172.5)
Sterling 71.8 21.7 - 93.5
US dollar and related 42.0 202.5 - 244.5
Euro 3.5 11.9 0.2 15.6
Other 1.3 34.6 - 35.9
_____________________________________ _____________ _________ ___________ _________
Gross financial liabilities 118.6 98.2 0.2 217.0
_____________________________________ _____________ _________ ___________ _________
Fixed rate Non-interest
bearing
____________ _______________ ________________
Weighted
Weighted average period Weighted
average for which the average period
interest rate rate is fixed until maturity
Financial liabilities at 31 December % Years Years
2001
_____________________________________ ____________ _______________ ________________
Sterling 6.3 2.2 -
US dollar and related 4.7 3.5 -
Euro 5.3 3.0 2.8
Other 10.2 2.6 -
_____________________________________ ____________ _______________ ________________
Interest on floating rate liabilities is based on the relevant inter bank
offered rate.
The financial liabilities other than borrowings in creditors falling due after
more than one year and other provisions are not material.
Fixed Floating Non-interest
rate rate bearing Total
Financial assets at 31 December #m #m #m #m
2002
__________________________________ __________ ________ __________ _______
Sterling cross currency swaps - (25.7) - (25.7)
Sterling - 4.5 - 4.5
US dollar and related - 16.6 3.7 20.3
Euro - 34.2 1.3 35.5
Other - 21.2 6.4 27.6
__________________________________ __________ ________ __________ _______
Gross financial assets - 50.8 11.4 62.2
__________________________________ __________ ________ __________ _______
Fixed Floating Non-interest
rate rate bearing Total
Financial assets at 31 December #m #m #m #m
2001
__________________________________ __________ ________ __________ _______
Sterling cross currency swaps - (33.7) - (33.7)
Sterling - 11.4 - 11.4
US dollar and related - 33.0 1.2 34.2
Euro - 47.9 2.3 50.2
Other - 17.8 9.0 26.8
__________________________________ __________ ________ __________ _______
Gross financial assets - 76.4 12.5 88.9
__________________________________ __________ ________ __________ _______
Interest on floating rate bank deposits is based on the relevant national inter
bank rates and is fixed in advance for periods of up to one year.
All of the non-interest bearing financial assets mature within one week of the
balance sheet date.
Fair values of financial assets and liabilities
Set out below is a comparison by category of book value and estimated fair value
of the Group's financial assets and liabilities:
2002 2001
___________________________________________ ________ __________ ________ ________
Book Estimated Book Estimated
value fair value value fair value
#m #m #m #m
Primary financial instruments held or
issued to finance the Group's operations:
Cash and short term deposits (62.2) (62.2) (88.9) (88.9)
___________________________________________ ________ __________ ________ ________
Loans and loan stock 77.1 77.1 127.7 127.6
Lease finance 2.3 2.4 4.2 4.3
Convertible debt 60.4 60.3 60.2 59.8
Bank overdrafts 26.8 26.8 24.9 24.9
___________________________________________ ________ __________ ________ ________
166.6 166.6 217.0 216.6
___________________________________________ ________ __________ ________ ________
Derivative financial instruments held to
manage the
Group's interest rate and currency profile:
Forward foreign exchange contracts (3.3) (3.3) (1.4) (1.3)
Interest rate swaps - 3.6 0.4 (0.3)
____________________________________________ ________ ___________ ________ ________
(3.3) 0.3 (1.0) (1.6)
____________________________________________ ________ ___________ ________ ________
Coats plc 4.9% Cumulative Preference Shares 14.6 9.9 14.6 11.1
____________________________________________ ________ ___________ ________ ________
Market values have been used to determine the estimated fair values of forward
exchange contracts, all swaps and listed instruments held or issued. The
estimated fair value of all other items has been calculated by discounting
expected cash flows at the interest rates prevailing at the year end.
Hedging
The aggregate unrecognised loss at 31 December 2002, being the difference
between book value and estimated fair value of the above derivative financial
instruments, is #3.6 million (2001 - #0.6 million gain). Of this approximately
#1.1 million loss (2001 - approximately #0.3 million gain) will be recognised in
the profit and loss account for the year ending 31 December 2003.
Currency exposures
The main functional currencies of the Group are sterling, US dollar and the
euro. The following analysis of net monetary assets and liabilities shows the
Group's currency exposures after the effects of forward contracts and other
financial derivatives used to manage the currency exposure. The amounts shown
represent the transactional exposures that give rise to the net currency gains
and losses recognised in the profit and loss account. Such exposures comprise
the monetary assets and monetary liabilities of the Group which are not
denominated in the functional currency of the operating unit involved, other
than certain non-sterling borrowings treated as hedges of net investments in
overseas operations.
Sterling US Dollar Euro Other Total
31 December 2002 #m #m #m #m #m
____________________________________ ________ _________ _______ _______ ________
Sterling - (4.8) (0.6) - (5.4)
US dollar 0.4 - (0.8) 1.3 0.9
Euro - (0.6) - - (0.6)
Other 0.1 12.8 4.9 (0.1) 17.7
____________________________________ ________ _________ _______ _______ ________
0.5 7.4 3.5 1.2 12.6
____________________________________ ________ _________ _______ _______ ________
Sterling US Dollar Euro Other Total
31 December 2001 #m #m #m #m #m
____________________________________ ________ _________ _______ _______ ________
Sterling - (1.6) 2.4 0.3 1.1
US dollar - - (2.1) 0.4 (1.7)
Euro (0.4) (0.3) - 0.2 (0.5)
Other 0.9 2.8 4.8 (1.1) 7.4
____________________________________ ________ _________ _______ _______ ________
0.5 0.9 5.1 (0.2) 6.3
____________________________________ ________ _________ _______ _______ ________
( ) represents uncovered monetary
liabilities.
20 Provisions for liabilities and charges
Deferred Closures and Leaving
taxation reorganisation indemnities Total
Restated Restated
#m #m #m #m
_____________________________________ ________ _____________ ___________ ________
Group
At beginning of year as originally (2.8) 35.6 5.0 37.8
reported
Prior period adjustment (deferred tax) 30.9 - - 30.9
________ _____________ ___________ ________
At beginning of year as restated 28.1 35.6 5.0 68.7
Exchange difference (1.6) (1.0) (0.5) (3.1)
Provided - deferred tax - - - -
- reorganisations - 17.1 - 17.1
- sale or termination of operations - 10.1 - 10.1
- discounting interest - 0.1 - 0.1
- other - 2.3 1.8 4.1
Transfer from current tax 0.1 - - 0.1
Transfer to pension liabilities (4.0) (1.1) - (5.1)
Utilised - (34.6) (3.1) (37.7)
_____________________________________ ________ _____________ ___________ ________
At 31 December 2002 22.6 28.5 3.2 54.3
_____________________________________ ________ _____________ ___________ ________
Total
#m
________
Company
At beginning of year 1.5
Provided - sale or termination of operations 0.6
- other (0.1)
Utilised (0.8)
__________________ ______________________________ ________
At 31 December 2002 1.2
__________________ ______________________________ ________
2002 2001
Restated
Analysis of Group deferred tax liability #m #m
_______________________________________________________________ ____________ ________
Capital allowances in excess of depreciation 26.8 26.4
Other timing differences 2.5 5.5
Losses carried forward (6.7) (3.8)
_______________________________________________________________ ____________ ________
22.6 28.1
_______________________________________________________________ ____________ ________
The Group has unutilised tax losses of #137.7 million (2001 - #117.0 million)
and unrecovered advance corporation tax of #69.1 million (2001 - #63.0 million)
that have not been recognised since it is more likely than not that there will
be no suitable future taxable profits against which they may be offset.
Other provisions
Provisions for reorganisations and closures will usually be utilised within one
year.
In many countries including India and much of South America, there are legal
requirements to make payments to employees on the termination of their
employment by retirement, redundancy, or otherwise. These payments are commonly
based on the number of years service with the company that each employee has.
The Group's policy is to accrue for this liability on a service basis and to
charge amounts actually paid out against the provisions. The resultant
provisions are included above under the heading "leaving indemnities".
The maturity profile of provisions for leaving indemnities is as follows:
#m #m
___________ __________
Payable between one and two years 0.3 0.6
Payable between two and five years 0.4 0.9
Payable in more than five years 2.5 3.5
________________________________________________________ ___________ __________
3.2 5.0
________________________________________________________ ___________ __________
21 Goodwill
Fair Fair value
Book value to the
The fair values attributed to the net value adjustments Group
tangible assets
acquired during the year were: #m #m #m
___________________________________________ _________ ____________ ___________
Fixed assets 0.2 - 0.2
Current assets 2.2 0.1 2.3
Creditors and provisions (1.3) - (1.3)
Pension liabilities (1.4) - (1.4)
Cash 0.4 - 0.4
Minority interest 22.3 - 22.3
___________________________________________ _________ ____________ ___________
22.4 0.1 22.5
___________________________________________ _________ ____________ ___________
Fair value of consideration: Cash 11.5
transfer from fixed asset investments 0.1
___________________________ ________________________________________ ___________
11.6
___________________________ ________________________________________ ___________
Goodwill arising during the (10.9)
year
___________________________ ________________________________________ ___________
Positive -
Negative (10.9)
___________________________ ________________________________________ ___________
(10.9)
___________________________ ________________________________________ ___________
The fair value adjustments relate to minor adjustments to stock valuations in
respect of 2001 acquisitions.
The goodwill capitalised in the balance sheet is as follows:
Amortisation
Cost and impairment Net
Positive goodwill #m #m #m
________________________________________ __________ ________________ ___________
At beginning of year 60.3 8.5 51.8
Exchange (0.8) (0.1) (0.7)
Amortised in the year - 2.8 (2.8)
Disposals (0.9) (0.9) -
________________________________________ __________ ________________ ___________
Carried forward at 31 December 2002 58.6 10.3 48.3
________________________________________ __________ ________________ ___________
Negative goodwill
________________________________________
At beginning of year 7.1 2.4 4.7
Exchange (0.2) (0.2) -
Acquisitions 10.9 - 10.9
Amortised in the year - 4.4 (4.4)
________________________________________ __________ ________________ ___________
Carried forward at 31 December 2002 17.8 6.6 11.2
________________________________________ __________ ________________ ___________
Of the negative goodwill arising during the year, #3.7 million (2001- #1.9
million) has been identified as relating to working capital and released during
the year. The balance has been capitalised in accordance with FRS 10 and will be
amortised over 10 years.
There was no purchased goodwill attributable to businesses sold or terminated
during the year (2001 - #12.5 million). As at 31 December 2002, the cumulative
amount of goodwill on acquisitions made prior to 1 January 1998 charged to
reserves is #192 million (2001 - #192 million).
Number 2002 Number 2001
22 Called up share capital of shares #m of shares #m
_________________________________________ _____________ ________ ___________ ________
Authorised:
Ordinary shares of 20p each 876,952,750 175.4 876,952,750 175.4
4.9% Cumulative Preference shares of #1 each 14,609,450 14.6 14,609,450 14.6
_________________________________________ _____________ _______ ________
190.0 190.0
_________________________________________ _____________ _______ ________
Allotted and fully paid:
Ordinary shares of 20p each - equity shares 707,973,426 141.6 705,360,873 141.1
4.9% Cumulative Preference shares of #1 each 14,609,449 14.6 14,609,449 14.6
- non equity shares
_________________________________________ _____________ _______ ________
156.2 155.7
_________________________________________ _____________ _______ ________
The 4.9% Cumulative Preference Shares of #1 each confer on the holders thereof
the right to receive a cumulative preferential dividend at the rate of 4.9 per
cent on the capital for the time being paid up thereon and the right on a
winding up or repayment of capital to a return of the capital paid thereon
(together with a premium calculated at the rate of #0.125 for every #1 of such
capital) and a sum equal to any arrears or deficiency of the fixed dividend
thereon calculated down to the date of the return of capital subject to such
taxes as shall be in force at that date and to be payable whether such dividend
has been declared or earned or not in priority to any payment to the holders of
the Ordinary Shares, but the Preference Shares shall not entitle the holders to
any further or other participation in the profits or assets of Coats plc.
The Preference Shares shall not entitle the holders thereof to attend or vote at
any general meeting unless either:
(i) at the date of the meeting, the fixed dividend on the Preference
Shares is six months in arrears, and so that for this purpose such dividend
shall be deemed to be payable half-yearly on the 31 March and the 30 September
in every year; or
(ii) the business of the meeting includes the consideration of a
resolution for winding up or reducing the capital of Coats plc or directly and
adversely affecting any of the special rights or privileges for the time being
attached to the Preference Shares.
The Preference Shares shall nevertheless entitle the holders thereof to receive
notice of every general meeting. At a general meeting at which the holders of
Preference Shares are entitled to attend and vote the Preference Shares shall,
in voting upon a poll, entitle a holder thereof or the proxy to the vote only
for every Preference Share held.
The conversion rights attaching to the #60.458m 6.25% Senior Convertible Bonds
issued by Coats plc are detailed in note 17.
Options granted for ordinary shares not exercised are as follows:
Number
Options granted Price per share Period of option of shares
_____________ _______________ _____________ _________
1984 Executive Share Option 1993 to 1994 223.41p to 256.08p 2003 to 2004 135,320
Scheme
Overseas Executive Share Option 1993 to 1994 223.41p to 256.08p 2003 to 2004 389,774
Scheme
1994 Executive Share Option 1994 to 2001 33.75p to 214.50p 2003 to 2011 13,475,677
Scheme
Sharesave Scheme 1995 to 1997 110.00p to 156.00p 2003 557,269
2002 Executive Share Option Plan 2002 52.50p to 54.75p 2003 to 2012 6,750,000
________________________________ _____________ _______________ _____________ _________
21,308,040
________________________________ _____________ _______________ _____________ _________
Options exercised during the year totalled 2,611,443 (2001 - 1,734,073). The
consideration was #1.0 million (2001: #0.6 million).
In addition 1,110 shares were issued on conversion of 6.25% convertible bonds
due 2003.
23 Other reserves
Share Other
premium capital Pension
account reserve reserve Total
Restated Restated
#m #m #m #m
_________________________________________ ____________ _________ _________ _________
Group
At beginning of year as originally 206.7 34.1 (2.2) 238.6
reported
Prior period adjustment (Deferred tax - - - 3.1 3.1
note 29)
_________________________________________ ____________ _________ _________ _________
At beginning of year as restated 206.7 34.1 0.9 241.7
Shares issued during the year 0.5 - - 0.5
Actuarial losses (note 29) - - (28.5) (28.5)
Transfer from profit and loss account - - (2.2) (2.2)
_________________________________________ ____________ _________ _________ _________
At 31 December 2002 207.2 34.1 (29.8) 211.5
_________________________________________ ____________ _________ _________ _________
Company
At beginning of year 206.7 35.6 - 242.3
Shares issued during the year 0.5 - - 0.5
_________________________________________ ____________ _________ _________ _________
At 31 December 2002 207.2 35.6 - 242.8
_________________________________________ ____________ _________ _________ _________
24 Profit and loss account
Group Company
Restated
#m #m
_______________________________________________________ _______ ___________ __________
At beginning of year as originally reported 148.4 303.4
Prior year adjustment (Deferred tax) (30.4) -
_______________________________________________________ _______ ___________ __________
At beginning of year as restated 118.0 303.4
Foreign currency translation (losses)/gains
- overseas net assets* (34.4)
- related hedging 9.0
_______________________________________________________ _______
(25.4) 0.3
Retained profit/(loss) for the year 1.2 (143.2)
Transfer to pension reserve 2.2 -
_______________________________________________________ _______ ___________ __________
At 31 December 2002 96.0 160.5
_______________________________________________________ _______ ___________ __________
Retained in Group companies (including # 40.9 million 94.4
overseas)
Retained in associated companies 1.6
_______________________________________________________ _______ ___________
96.0
_______________________________________________________ _______ ___________
*Including # 17.5 million of net exchange gains arising on foreign currency
borrowings less deposits.
25 Equity minority interests
Group
___________ __________
2002 2001
Restated
#m #m
_________________________________________________________ ___________ __________
Equity minority interests 37.9 65.3
_________________________________________________________ ___________ __________
The reported equity minority interest at 31 December 2001 was #65.8 million. The
restated balance of #65.3 million reflects an adjustment of #0.5 million
relating to the adoption of FRS 19 - Deferred tax.
26 Future capital expenditure
Group Company
___________ __________ __________ ________
2002 2001 2002 2001
#m #m #m #m
_________________________________________ ___________ __________ __________ ________
Contracted but not provided for 6.8 3.3 - -
Authorised but not contracted for 45.5 12.5 - -
___________ __________ __________ ________
52.3 15.8 - -
_________________________________________ ___________ __________ __________ ________
27 Contingent liabilities
Group Company
_________ ________ _________ ________
2002 2001 2002 2001
#m #m #m #m
________________________________________________ _________ ________ _________ ________
Loan, overdraft and finance lease
guarantees in respect of certain subsidiaries
(see
note 19) - - 30.5 25.1
Others including performance guarantees and
documentary
credits on overseas contracts 22.0 28.9 4.0 8.0
Company undertaking relating to deferred tax
liabilities
of UK subsidiaries (note 20) - - 5.0 10.2
________________________________________________ _________ ________ _________ ________
28 Operating lease rentals
Group Company
________ ________ ________ _________
2002 2001 2002 2001
#m #m #m #m
________________________________________________ ________ ________ ________ _________
The committed amounts payable during 2003 are:
Leases of land and buildings expiring:
Within one year 1.3 2.8 - -
Within two to five years inclusive 5.1 6.4 - -
Over five years 12.2 13.3 - -
________ ________ ________ _________
18.6 22.5 - -
________________________________________________ ________ ________ ________ _________
Other operating leases expiring:
Within one year 0.8 1.9 - -
Within two to five years inclusive 3.0 2.7 - -
________ ________ ________ _________
3.8 4.6 - -
________________________________________________ ________ ________ ________ _________
29 Pensions
Group
__________ ___________
2002 2001
Restated
#m #m
__________ ___________
Pension assets UK 11.5 24.4
North America 19.6 26.3
__________ ___________
31.1 50.7
____________________________________ _____________________ __________ ___________
Pension and other post retirement 60.9 49.8
liabilities
____________________________________ _____________________ __________ ___________
Following the adoption of FRS 19 - Deferred tax, the pension related deferred
tax assets at 31 December 2001 and 31 December 2000 have been increased by
#3.1million to #5.4 million and #3.4 million to #6.0 million respectively. The
Group operates a number of defined benefit and defined contribution plans
throughout the world. The principal defined benefit arrangements are in the UK
and North America and the assets of these plans are mainly held under
self-administered trust funds and hence are separated from the Group's assets.
The Group accounts for pension costs in accordance with FRS 17 - Retirement
Benefits and therefore the costs in respect of defined benefit plans have been
assessed in accordance with the advice of independent, professionally qualified
actuaries and consultants.
(a) UK
The Group operates a defined benefit scheme in the UK. A full actuarial
valuation was carried out at 1 April 2000 and updated to 31 December 2002 by a
qualified independent actuary. The major assumptions used by the actuary were:
At At At
31.12.02 31.12.01 31.12.00
---------- ---------- ----------
Rate of increase in salaries 3.80% 4.00% 4.00%
Rate of increase in pensions in payment 2.30% 2.50% 2.50%
Discount rate 5.60% 6.00% 6.00%
Inflation assumption 2.30% 2.50% 2.50%
The assets in the scheme and the expected rate of return were:
Long-term Long-term Long-term
rate of rate of rate of
return Value at return Value at return Value at
expected 31.12.02 expected 31.12.01 expected 31.12.00
at 31.12.02 #m at 31.12.01 #m at 31.12.00 #m
_________ ________ __________ ________ __________ _______
Equities 6.00% 406.2 6.50% 719.3 6.50% 915.2
Corporate 5.00% 883.4 5.40% 719.2 5.50% 654.6
bonds and
gilts
________ ________ _______
Total market 1289.6 1438.5 1569.8
value of
assets
Actuarial (1273.1) (1219.5) (1177.8)
value of
scheme
liabilities
________ ________ _______
Gross 16.5 219.0 392.0
surplus
Adjustment - (184.1) (352.6)
due to
surplus cap
________ ________ _______
Recoverable 16.5 34.9 39.4
surplus in
the scheme
Related (5.0) (10.5) (11.9)
deferred tax
liability
________ ________ _______
Net pension 11.5 24.4 27.5
asset
________ ________ _______
The analysis of amounts charged to operating profit and credited to other
finance income are summarised in 29(d) and 29(e) below.
Analysis of amounts recognised in the statement of Group
total
recognised gains and losses are: 2002 2001
#m #m
__________ _________
Actual return less expected return on assets (160.1) (139.1)
Experience gains and losses on liabilities (10.0) (25.1)
Changes in assumptions (38.0) -
__________ _________
Actuarial loss (208.1) (164.2)
Adjustment due to surplus cap 184.1 159.6
__________ _________
Actuarial loss recognised in statement of total (24.0) (4.6)
recognised gains and losses
__________ _________
The movements in the gross and Gross surplus Recognised surplus
recognised
surpluses during the year were: 2002 2001 2002 2001
#m #m #m #m
________ ________ _________ ________
At the beginning of the year 219.0 392.0 34.9 39.4
Movement in year:
Current service cost (6.4) (7.7) (6.4) (7.7)
Contributions - 0.1 - 0.1
Cost of benefit improvements - (8.9) - -
Other finance income 12.0 24.0 12.0 7.7
Actuarial loss (208.1) (180.5) (24.0) (4.6)
________ ________ _________ ________
At the end of the year 16.5 219.0 16.5 34.9
________ ________ _________ ________
The actuarial valuation at 31 December 2002 showed a decrease in the gross
surplus in the scheme from #219.0 million to #16.5 million and a fall in the
recognised recoverable surplus from #34.9 million to #16.5 million. The
recognised recoverable surplus in 2001 was restricted to the present value of
the anticipated long term contribution holiday relating to the Group's core UK
business.
No improvements in benefits were made in 2002 (2001 - #8.9 million). In 2001 the
costs were charged against the unrecognised surplus in the scheme. It has been
agreed with the trustee that the contribution holiday will continue until the
next formal actuarial review of the scheme.
Group
_________ _______ _______
2002 2001 2000
The history of experience gains and losses #m #m #m
has been:
_________ _______ _______
Difference between the expected and actual (160.1) (139.1) (95.0)
return on scheme assets
Percentage of scheme assets (12)% (9)% (6)%
Experience gains and losses on scheme (10.0) (25.1) (13.3)
liabilities
Percentage of scheme liabilities (1)% (2)% (1)%
Total amount recognised in statement of total (24.0) (4.6) 4.5
recognised gains and losses
Percentage of scheme liabilities (2)% - -
As it is not possible to allocate the assets and liabilities of the UK pension
scheme between individual companies, the above amounts are reflected on
consolidation only. As a result there are no pension assets or liabilities
included in the accounts of the Company.
(b) North America
The Group operates defined benefit schemes in the USA and Canada. Full actuarial
valuations were carried out at 31 December 2002 by a qualified independent
actuary. The major assumptions used by the actuary were:
At At At
31.12.02 31.12.01 31.12.00
______________ ______________ ______________
Rate of increase in 5.00% 6.00% 4.25%
salaries
Discount rate 6.75% 7.25% 7.50%
The assets in the scheme and the expected rate of return were:
Long-term Long-term Long-term
rate of rate of rate of
return Value at return Value at return Value at
expected 31.12.02 expected 31.12.01 expected 31.12.00
at 31.12.02 #m at 31.12.01 #m at 31.12.00 #m
________ _______ _________ _______ _________ _______
Equities 8.00% 83.1 9.25% 114.4 9.00% 129.5
Corporate 5.50% 54.0 6.50% 60.5 6.50% 65.0
bonds
Other 3.50% 4.8 5.75% 6.4 5.50% 3.8
_______ _______ _______
Total market 141.9 181.3 198.3
value of
assets
Actuarial (110.2) (117.7) (118.3)
value of
scheme
liabilities
_______ _______ _______
Gross 31.7 63.6 80.0
surplus
Adjustment (0.5) (21.5) (41.5)
due to
surplus cap
_______ _______ _______
Recoverable 31.2 42.1 38.5
surplus in
the scheme
Related (11.6) (15.8) (14.9)
deferred tax
liability
_______ _______ _______
Net pension 19.6 26.3 23.6
asset
_______ _______ _______
The analysis of amounts charged to operating profit and credited to other
finance income are summarised in 29(d) and 29(e) below.
Group
_______ ________
2002 2001
#m #m
_______ ________
Analysis of amounts recognised in the statement of total
recognised gains and losses are:
Actual return less expected return on assets (22.1) (19.2)
Experience gains and losses on liabilities 2.2 (0.3)
Changes in assumptions (6.7) (1.4)
_______ ________
Actuarial loss (26.6) (20.9)
Adjustment due to surplus cap 17.2 20.6
_______ ________
Actuarial loss recognised in statement of total (9.4) (0.3)
recognised gains and losses
_______ ________
The movements in Gross surplus Recognised surplus
the gross
and recognised 2002 2001 2002 2001
surpluses
during the year #m #m #m #m
were:
_______ _______ ________ _______
At the beginning 63.6 80.0 42.1 38.5
of the year
Movement in
year:
Current service (2.0) (2.7) (2.0) (2.7)
cost
Contributions - 0.1 - 0.1
Cost of benefit (3.1) (0.5) - -
improvements
Other finance 2.1 5.8 2.1 5.8
income
Actuarial loss (26.6) (20.9) (9.4) (0.3)
Transfer from 1.9 - 1.9 -
pension
liabilities
Exchange (4.1) 1.8 (3.5) 0.7
difference
_______ _______ ________ _______
At the end of 31.8 63.6 31.2 42.1
the year
_______ _______ ________ _______
The actuarial valuation at 31 December 2002 showed a decrease in the gross
surplus in the scheme from #63.6 million to #31.8 million and a decrease in the
recognised recoverable surplus from #42.1 million to #31.2 million. The
recognised recoverable surplus has been restricted to the present value of the
anticipated long term contribution holiday. Improvements in US benefits costing
#3.1 million were made in 2002 (2001 - #0.5 million). In both years the costs
were charged against the unrecognised surplus in the scheme. It has been agreed
with the trustee that the contribution holiday will continue until the next
formal actuarial review of the scheme.
Group
2002 2001 2000
The history of experience gains and losses #m #m #m
has been:
_________ ______ _________
Difference between the expected and actual (22.1) (19.2) (10.1)
return on scheme assets
Percentage of scheme assets (16)% (11)% (5)%
Experience gains and losses on scheme 2.2 (0.3) 2.5
liabilities
Percentage of scheme liabilities 2% - 2%
Total amount recognised in statement of (9.4) (0.3) 7.0
total recognised gains and losses
Percentage of scheme liabilities (9)% - 6%
(c) Other schemes
The Group operates defined benefit schemes in other countries, mainly in Europe.
In the majority of cases, as is normal local practice, these schemes are
unfunded and provisions are carried in the balance sheets of the companies
concerned.
These liabilities have been reassessed in line with FRS 17 at 31 December 2002
with the assistance and advice of independent qualified actuaries. The average
major assumptions made by the actuaries were:
At At At
31.12.02 31.12.01 31.12.00
_________ _________ _________
Rate of increase in salaries 3.00% 3.00% 3.00%
Rate of increase in pensions in payment 2.00% 2.00% 2.00%
Discount rate 5.50% 6.00% 6.00%
The net liabilities of these schemes Value at Value at Value at
(including pensions
and other post retirement benefits) were: 31.12.02 31.12.01 31.12.00
Restated
#m #m #m
_________ _________ _________
Assets:
Equities 2.2 2.4 1.0
Corporate bonds 4.1 2.3 1.1
Other 0.6 0.7 0.4
_________ _________ _________
Total market value of assets 6.9 5.4 2.5
Actuarial value of scheme liabilities (72.5) (60.6) (60.6)
_________ _________ _________
(65.6) (55.2) (58.1)
Related deferred tax asset 4.7 5.4 6.0
_________ _________ _________
Net pension liabilities (60.9) (49.8) (52.1)
_________ _________ _________
The analysis of amounts charged to operating profit and credited to other
finance income are summarised in 29(d) and 29(e) below.
Analysis of amounts recognised in the statement Group
of total recognised gains and losses are: 2002 2001
#m #m
__________ __________
Actual return less expected return on assets (1.0) (0.2)
Experience gains and losses on liabilities (3.5) 0.1
Changes in assumptions (3.4) (0.2)
__________ __________
(7.9) (0.3)
Adjustment due to surplus cap 0.5 -
__________ __________
Actuarial loss recognised in statement of total
recognised gains and losses (7.4) (0.3)
__________ __________
The movements in net defined benefit liabilities
during the year were:
Liabilities of the schemes at the beginning
of the year (55.2) (58.1)
Movement in year:
Current service cost (4.0) (4.7)
Settlements and curtailments 0.7 -
Past service credit 0.1 -
Contributions 14.6 9.8
Other finance income (3.7) (3.4)
Actuarial loss (7.4) (0.3)
Companies acquired (1.4) -
Transfer from creditors (4.2) -
Transfer from reorganisation provisions (1.2) -
Transfer to pension assets (1.9) -
Exchange difference (2.0) 1.5
__________ __________
Liabilities of the schemes at the end of the year (65.6) (55.2)
__________ __________
(d) Analysis of amounts charged to operating profit
Group
2002 2001
Restated
#m #m
__________ ________
Current service cost UK - continuing operations 4.5 5.3
million)
(including #2.8 million
(2001 - #3.0
for Thread businesses)
- discontinued operations 1.9 2.4
North America 2.0 2.7
Other overseas assets - 0.4
Other scheme liabilities 4.0 4.7
__________ ________
12.4 15.5
Past service cost 3.1 9.4
Covered by unrecognised (3.1) (9.4)
surplus
__________ ________
- -
Settlements and Other scheme liabilities (0.7) -
curtailments
Past service credit Other scheme liabilities (0.1) -
__________ ________
Total operating charge 11.6 15.5
__________ ________
(e) Other finance income
Analysis of net returns on pension schemes:
Group
2002 2001
#m #m
__________ __________
Analysis of net returns on
pension schemes:
Expected return on pension UK 83.0 76.7
scheme assets
North America 10.1 14.5
Other overseas - 0.3
assets
Other scheme 0.5 -
liabilities
__________ __________
93.6 91.5
__________ __________
Interest on pension UK (71.0) (69.0)
liabilities
North America (8.0) (8.7)
Other overseas - (0.2)
assets
Other scheme (4.2) (3.4)
liabilities
__________ __________
(83.2) (81.3)
__________ __________
__________ __________
Refund received from 3.9 -
discontinued scheme
__________ __________
__________ __________
Net return 14.3 10.2
__________ __________
(f) Actuarial gains and losses charged to statement of total recognised gains
and losses
UK (24.0) (4.6)
North America (9.4) (0.3)
Other overseas assets - (0.7)
Other scheme liabilities (7.4) (0.3)
__________ __________
Total actuarial losses (40.8) (5.9)
Related deferred tax movement 12.3 1.5
__________ __________
Net loss (28.5) (4.4)
__________ __________
30 Related party transactions
There are no individual transactions with related parties which are material to
the Group. Set out in the table is an aggregation of related party transactions
defined by type and relationship.
Associated Associated
companies companies
2002 2001
Group #m #m
_____________________________________________________________ ___________ ___________
Sales to 1.0 0.5
Purchases from 3.3 3.3
Other income 1.4 1.0
Debtors 1.2 1.5
Creditors 0.7 0.4
Company
The Company has taken advantage of the exemption allowed by FRS8, Related Party
Transactions, whereby the Company is exempted from disclosure of related party
transactions when any such relevant items are included within the Group's
disclosure.
Directors
In 1992, the Company, through a subsidiary, acquired a joint interest in a
property with Martin Flower on his taking permanent residence in England. The
subsidiary's investment was #180,000. Under the agreement, Martin Flower has the
option to purchase the Group's interest at market value. The Group's investment
was reduced to #75,000 in January 1994 following partial exercise of Martin
Flower's option. In 1999, the Company, through a subsidiary, acquired a joint
interest in properties with Jonathan Lea and Bryan Anderson respectively. The
subsidiary's investment in both cases was #75,000 and Jonathan Lea and Bryan
Anderson have an option to purchase the Group's interest at market value.
31 Notes to the cash flow statement
(a) Reconciliation of operating profit to net cash inflow from operating
activities
2002 2001
#m #m
______________________________________________________________ ________ _______
Operating profit 40.2 35.9
Dividends from associated companies - 0.1
Depreciation 42.0 45.5
Amortisation of goodwill (1.6) 0.7
Reorganisation costs 17.1 31.6
Impairment of fixed assets 1.9 (0.1)
Other exceptional items 0.1 1.0
Decrease/(increase) in stocks 22.4 (7.4)
(Increase)/decrease in debtors (9.4) 30.4
Increase/(decrease) in creditors 5.8 (33.1)
Refund from discontinued pension scheme 3.9 -
Other non-cash movements (2.9) 9.8
______________________________________________________________ ________ _______
Net cash inflow from normal operating activities 119.5 114.4
______________________________________________________________ ________ _______
Continuing operations 125.1 116.7
Discontinued operations (5.6) (2.3)
______________________________________________________________ ________ _______
119.5 114.4
______________________________________________________________ ________ _______
Net cash outflow in respect of reorganisation costs:-
Utilisation of provisions - closures and (19.2) (29.5)
reorganisation
- other - 0.1
- non-cash asset write 0.4 1.9
downs
__________________________________ ___________________________ _________ _______
(18.8) (27.5)
__________________________________ ___________________________ _________ _______
Net cash inflow from operating 100.7 86.9
activities
__________________________________ ___________________________ _________ _______
(b) Analysis of financing cash flows
Issue of ordinary share capital 1.0 0.6
Issue of shares to minorities 0.6 0.1
______________________________________________________________ ________ _______
1.6 0.7
______________________________________________________________ ________ _______
Decrease in - new short term loans 19.5 116.1
borrowings:
- repayment of amounts borrowed (61.9) (126.9)
- capital element of finance lease rental (2.0) (24.4)
payments
____________________ _________________________________________ ________ _______
(44.4) (35.2)
_____________________________________________________________ _________ _______
Net cash outflow from financing (42.8) (34.5)
_______________________________________________________________ _________ _______
Acquisitions
At 1 /disposals Other At 31
January Cash (excl. cash/ non-cash December
(c) Analysis of net 2002 flow overdrafts) changes Exchange 2002
debt
____________________ _______ ______ ___________ ________ ________ ________
Cash at bank and in 63.0 49.4
hand
Bank overdrafts (24.9) (26.8)
_______ ________
Net cash 38.1 (15.3) (0.2) 22.6
Short-term deposits 25.9 (12.0) (1.1) 12.8
Loans and loan stock (127.7) 42.4 8.2 (77.1)
Convertible debt (60.2) - (0.2) - (60.4)
Lease finance (4.2) 2.0 (0.2) 0.1 (2.3)
______
44.4
_______ ______ ___________ ________ ________ ________
Total (128.1) 17.1 - (0.4) 7.0 (104.4)
____________________ _______ ______ ___________ ________ ________ ________
(d) Purchase of subsidiary undertakings 2002 2001
#m #m
____________________________________________________________ ________ ________
Tangible fixed assets 0.2 6.3
Stocks 0.9 10.4
Debtors 1.0 13.2
Current asset investment 0.4 0.8
Cash at bank and in hand 0.4 3.5
Loans - (0.4)
Creditors (1.3) (11.1)
Provisions - (2.3)
Pension liabilities (1.4) -
Minority shareholders interests 22.3 10.5
____________________________________________________________ ________ ________
22.5 30.9
Goodwill (10.9) (6.1)
____________________________________________________________ ________ ________
Total 11.6 24.8
____________________________________________________________ ________ ________
Satisfied by:
Cash 11.6 22.4
Loan notes issued - 2.5
Transfer from deferred consideration (0.1) (0.1)
Transfer from fixed asset investments 0.1 -
____________________________________________________________ ________ ________
11.6 24.8
____________________________________________________________ ________ ________
(e) Sale of subsidiary undertakings
_____________________________________________________________
Goodwill - 3.7
Tangible fixed assets 3.4 21.8
Stock 3.4 29.9
Debtors 1.2 33.8
Cash at bank and in hand - 3.5
Creditors (1.3) (18.0)
Provisions (1.7) (23.4)
Current and deferred taxation - (0.9)
_____________________________________________________________ ________ ________
5.0 50.4
Loss on disposal (10.1) (26.8)
Profit on sale of fixed assets - 4.0
Write-back of purchased goodwill - 12.5
_____________________________________________________________ ________ ________
(5.1) 40.1
_____________________________________________________________ ________ ________
Satisfied by:
Cash 1.0 36.6
Deferred consideration - 4.8
Fixed asset investments - 0.1
Transfer from deferred consideration (6.1) (1.4)
_____________________________________________________________ ________ ________
(5.1) 40.1
_____________________________________________________________ ________ ________
(f) Cash flow relating to exceptional items
_____________________________________________________________ ________ ________
Profit on sale of fixed assets 8.7 13.6
Book value of fixed assets sold 4.6 11.7
Less: included in sale of operations - (6.8)
_____________________________________________________________ ________ ________
Proceeds of sale of fixed assets 13.3 18.5
_____________________________________________________________ ________ ________
Proceeds of sale or termination of operations (note e) 1.0 36.6
_____________________________________________________________ ________ ________
32 Post balance sheet events
The Group completed the disposal of the majority of its Fashion Retail
businesses on 23 January 2003 for a nominal consideration. The net assets of the
businesses sold totalled approximately #36.0 million and the loss on disposal of
approximately #38.0 million, including expenses, will be reflected in the
accounts for the year ending 31 December 2003.
On 28 February 2003, the Group completed its acquisition of the industrial
thread business of Vicunha Textil, Brazil's largest textile manufacturer for
approximately #6.0 million. Goodwill of approximately #5.0 million arises on
this acquisition, and this will be accounted for in the accounts for the year
ending 31 December 2003.
33 Basis of preparation
The above accounts are an abridged version of the Company's full accounts which
carry an unqualified report, which do not contain a statement under s237(2) or
(3) of the Companies Act 1985 and which will be filed in due course with the
Registrar of Companies.
The 2001 figures are extracted from the restated comparative figures contained
in the Company's full accounts for 2002, referred to above.
PRINCIPAL SUBSIDIARY UNDERTAKINGS
Country of incorporation or Country of incorporation or
registration and principal registration and principal
country of operation country of operation
Holding and Finance Thread continued
Companies
------------------ ------- ----------------- ---- -----
*Coats Finance Company
Limited England Coats American Inc. US
------------------ ------- ----------------- ---- -----
Coats Holdings Limited England Coats & Clark Inc. US
------------------ ------- ----------------- ---- -----
Jaeger Holdings Limited England Coats Phong Phu Co Ltd 75% Vietnam
------------------ ------- ----------------- ---- -----
Tootal Thread Limited England
------------------ ------
*Viyella Holdings Limited England Fashion Retail
------------------ ------ ----------------- ---- ------
Coats Deutschland GmbH Germany The Jaeger Company England
Limited
------------------ ------ ----------------- ---- ------
*Coats Patons Limited Scotland The Jaeger Company's England
Shops Limited
------------------ ------ ----------------- ---- ------
J. & P. Coats, Limited Scotland William Hollins & Company England
Limited
------------------ ------ ----------------- ---- ------
*Coats Invers SLU Spain Jaeger Sportswear US
Limited
------------------ ------ ---- ------
-----------------
Coats North America US
Consolidated Inc.
------------------ ------
Bedwear
----------------- ---- ------
Dorma Group Limited England
----------------- ---- ------
Thread Other
------------------ ------ ------- ------------- ----- -----
Coats (UK) Limited England Madura Coats India
Limited
------------------ ------ -------
Coats Bangladesh 80% Bangladesh Ordinary Shares 93%
Ltd
------ -------
------------------
Coats Cadena SA Argentina (Thread and India
Textiles)
------------------ ------ -------
------------- ----- -----
Coats Australian Pty Australia
Ltd
------------------ ------ -------
Coats Corrente Brazil
Ltda
------------------ ------ -------
Coats Canada Inc Canada
------------------ ------ -------
Coats Cadena SA 60% Chile
------------------ ------ -------
Guangzhou Coats 90% China
Limited
------------------ ------ -------
Guangying Spinning 50% China
Company Limited
------------------ ------ -------
Jinying Spinning 50% China
Company Limited
----------------- ------ -------
Coats France SA France
----------------- ------ -------
Coats GmbH Germany
-------------------- -------
China Thread Development Hong Kong
Company Limited
---------------- ----- -------
Coats Hong Kong Hong Kong
Limited
---------------- ----- -------
Coats Hungary Hungary
Limited
---------------- ----- -------
PT Coats Rejo Indonesia
Indonesia
---------------- ----- -------
Coats Cucirini SpA 72.8% Italy
---------------- ----- -------
Coats Thread 51% Malaysia
(Malaysia) Sdn Bhd
---------------- ----- -------
Grupo Coats Timon, Mexico
S.A. De C.V.
---------------- ----- -------
Cia de Linha Coats & Portugal
Clark Lda
--------------- ----- -------
Coats South Africa South Africa
(Pty) Ltd
--------------- ----- -------
Coats Fabra SA 98.9% Spain
--------------- ----- --------
Coats Thread Lanka 86.8% Sri Lanka
(Private) Ltd
--------------- ----- --------
Coats (Turkiye) 76.8% Turkey
Iplik Sanayii AS
All the above companies carry on businesses, the consolidated results of which,
in the opinion of the Directors, principally affect the amount of the profit or
the amount of the assets of the Group. All companies are wholly owned unless
otherwise stated; percentage holdings shown represent the ultimate interest of
Coats plc.
A complete list of subsidiary undertakings and companies in which Coats plc
holds more than 10% of the equity share capital will be filed with the next
annual return.
Companies marked with an asterisk are direct subsidiaries of Coats plc.
This information is provided by RNS
The company news service from the London Stock Exchange
FR UNSURONRORUR