Coats Group
Annual Report 2024

Coats Group plc
Annual Report and Accounts 2024
DELIVER TODAY 
REIMAGINE TOMORROW

OUR PURPOSE IS TO 
CONNECT TALENT, 
TEXTILES AND TECHNOLOGY 
TO MAKE A BETTER AND 
MORE SUSTAINABLE WORLD.
We are driving premium profitable growth through 
innovation and sustainability, transforming Coats 
for the future, and creating value for our 
customers, shareholders, and communities.
 Read about our results on page 3
 Read about our strategy on page 13
 Read about our values on page 21
 Read about how coats cares on page 25

Coats Group plc Annual Report and Accounts 2024
Strategic report
01	
Our purpose
03	 Full year results and highlights
04	 Coats at a glance
05	 Chair’s statement
07	
Group CEO’s statement
12	
Medium-term financial framework
13	
Strategy and market trends
14	
Business model
15	
Strategic enablers
21	
Our values
23	 People and culture
27	
Apparel division
31	
Footwear division
35	 Performance Materials division
39	 Financial KPIs
40	 Sustainability KPIs
41	
Non-financial information statement
44	 Stakeholder engagement
47	
Section 172 statement
50	 Principal risks and uncertainties
57	
Long-term viability statement
58	 Operating review
61	
Financial review
Corporate governance
64 	 Chair’s introduction to governance
66 	 Corporate governance report
68	 Board of Directors
77	
Audit and Risk Committee report
83	 Nomination Committee report
86 	 Remuneration Committee report
90 	 Directors’ remuneration report 
106 	Directors’ report
Financial statements
111	 Independent Auditor’s report
124	 Primary financial statements
128	 Notes to the financial statements
179 	 Company financial statements
180 	Notes to the Company financial statements
Taskforce on Climate-Related  
Financial Disclosures
182 	Introduction
183 	Governance
184	 Risk management
185	 Strategy
197	 Summary of risks and opportunities
198	 Metrics and targets
199	 Independent practitioner’s assurance report
Other information
201 	Group structure
207	 Five-year summary
207 	Shareholder information
TABLE OF CONTENTS
PERFORMANCE 
MATERIALS: 
TRANSFORMING 
THE FOOTPRINT 
FOR GROWTH
FOOTWEAR:
MARKET LEADER 
SHAPING THE FUTURE 
OF FOOTWEAR THREAD 
AND COMPONENTS
APPAREL:
PIONEERING LEADERS 
IN CUSTOMER VALUE 
CREATION
27
31
35
DISCOVER OUR DIVISIONS
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at coats.com/results  
A full copy of this Annual Report 
can also be downloaded from 
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02
STRATEGIC REPORT
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FINANCIAL STATEMENTS
TCFD
OTHER INFO

Annual Report and Accounts 2024
Coats Group plc 
We are pleased to have 
delivered another strong 
financial performance in 
2024, and I would like to 
thank all Coats employees  
for this achievement.
Our unparalleled customer 
base, high quality product 
portfolio and our global 
footprint are a great 
foundation to build on, 
supported by our  
financial strength.”
David Paja, 
Group CEO
2024 Full Year  
Results And Highlights
9%
Organic Revenue Growth
144%
Recycled Sales Growth
$153m
Adjusted Free Cash Flow
1.5x
Balance Sheet Leverage
18%
Adjusted EBIT Margin
130bps
EBIT Margin Growth
9.5c
Adjusted EPS
3.12c
Total Dividend up 11%
03
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OTHER INFO

Apparel 51%
Footwear 27%
Performance Materials 22%
Asia 64%
Americas 16%
EMEA 20%
Coats Group plc Annual Report and Accounts 2024
Some of our customers
Financial performance
Continuing operations
FY 2024
FY 2023 4
FY 2024 vs FY 2023
Reported
A CER
 Revenue
$1,501m
$1,394m
8%
9%
Adjusted1
 EBIT5
$270m
$233m
16%
18%
 Basic earnings per share
9.5c
8.0c
18%
 Free cash flow
$153m
$131m
 Net debt (excl. lease liabilities)
$449m
$384m
Reported2
 EBIT5
$200m
$184m
 Basic earnings per share4
5.0c
5.2c
 Net cash generated by operating activities6
$185m
$124m
 Final dividend per share (cents)
2.19c
1.99c
A  Alternative Performance Measures – see note 36.
1.	 Adjusted measures are non-statutory measures (Alternative Performance Measures). These are reconciled to the nearest corresponding statutory measure in 
note 36. Constant Exchange Rate (CER) metrics are 2023 results restated at 2024 exchange rates. 
2. 	Reported metrics refer to values contained in the IFRS column of the primary financial statements in either the current or comparative period.
3. 	Leverage calculated on a frozen GAAP basis and therefore excludes the impact of IFRS 16 on both adjusted EBITDA and net debt. See note 36b for details. 
4. 	From continuing operations.
5. 	EBIT (Earnings before interest and tax) relates to Operating Profit as shown on the face of the P/L.
6. 	Excludes £100 million payment in relation to the pension settlement.
7. 	 Cash conversion defined as adjusted free cash flow divided by normalised attributable profit before exceptional and acquisition items.
8. 	Coats estimates.
At a glance and highlights
Financial highlights
–	Revenue up 8% on a reported basis and 9% CER
–	Group adjusted EBIT margin of 18.0%, ahead of 
previously announced 2024 margin target of 17%, 
and despite in-year margin headwinds from 
Performance Materials Division 
–		Adjusted earnings per share growth of 18% to  
9.5 cents 
–	Strong adjusted free cash flow of $153 million – 
101% cash conversion7 
–		Net debt (excluding lease liabilities) at $449 
million with leverage3 reduced to 1.5x net debt: 
EBITDA (ahead of 1.6-1.7x guidance post pensions 
settlement), comfortably within 1-2x target range 
and providing significant capacity to support the 
Group’s capital allocation strategy
–		Proposed final dividend of 2.19 cents, +10%, 
reflecting the Board’s confidence in growth 
strategy and future performance
Strategic highlights
–	Continued outperformance against the industry in 
Apparel and Footwear – further market share 
gains8 (+100bps Apparel and +200bps Footwear) 
–	Extended global market leadership position in 
100% recycled thread products – revenue grew 
144% to $405 million a further significant 
acceleration in industry adoption 
–	Strategic projects actions now complete -  
$8 million incremental EBIT to be delivered in 
2025 (taking total savings to $75 million)
–	Performance Materials Americas manufacturing 
footprint right sized in Q4 with the closure of  
the Toluca site to align to structural softness in  
North American Yarns – will drive immediate 
margin improvement
We are the global market leader  
in apparel threads, structural 
components and threads for 
footwear, and innovative pioneers 
in performance materials.
We manufacturer sustainability-led innovative 
products, and are a trusted partner to leading 
brands and tier 1 manufacturers across all three 
segments and multiple industries.
A FTSE250 company and a FTSE4Good Index 
constituent, Coats takes part in the UN Global 
Compact and is committed to science-based 
sustainability targets for 2030 and beyond.
>50
Countries
c25,000
Customers globally
>16,000
Permanent employees
>250
Years of textiles experience
Revenue by division
Revenue by production 
region
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Coats Group plc Annual Report and Accounts 2024
Chair’s statement
I am pleased to reflect 
on Coats’ excellent 
performance and 
substantial progress 
towards a top performing 
premium industrial 
company striving to meet 
its strategic goals.”
DAVID GOSNELL
CHAIR
Transforming from ‘Good to Great’
I wrote this time last year about the challenges that 
the world was facing, with conflict in Ukraine and an 
escalating situation in the Middle East. While 2024 has 
seen much of the same instability in the wider world, 
we have encouragingly seen a number of our end 
markets return to growth. I am pleased to reflect on 
Coats’ excellent performance and substantial progress 
towards a top performing premium industrial company, 
Coats is a quality business in a strong position to 
continue to serve our customers and markets.
Our focus on sustainability, innovation and digital, 
combined with our global footprint, has translated 
into strong growth in profitability and cash 
generation, which leaves us well-positioned to  
drive further growth into the future and deliver value 
to shareholders.
As we saw most of our end markets return to more 
normality following a significant period of destocking 
during 2022 and 2023, we have seen our strategy 
play out as the business goes from strength  
to strength.
Our end markets have seen unprecedented volatility 
over recent years, and I am delighted that we 
have successfully navigated this period and at the 
same time exceed margin targets. We continue to 
generate strong cash flows.
Our Apparel and Footwear divisions demonstrate 
an ongoing clear competitive advantage and value 
for our customers, which ultimately drives our 
continuing market share gains and strong financial 
metrics. In Performance Materials, we have seen 
persistent softness in some end markets, and we 
are proactively addressing challenges specific to 
that division to fuel accelerated top line growth and 
improve margins.
People
Our people are at the heart of our success. And our 
culture, a sense of ownership, agility and resilience 
is a big differentiator. This is underlined by Coats 
once again being named as one of the world’s 
top 25 workplaces by the Great Place To Work® 
(GPTW™) organisation. More than 95% of our sites 
globally are accredited and we are delighted to 
have outscored world benchmarks in a number of 
critical areas such as employee trust. We have also 
achieved an outstanding Engagement score of  
85% in ‘Your Voice Matters Survey’, a whole  
11 points above the average external benchmark. 
I am particularly proud of the incredible 
achievements we have seen coming out of the 
Coats Cares programme. Coats Cares is designed 
to highlight the huge contribution made by our 
people to local causes in their communities and are 
rightfully recognised in this year’s Annual Report.
The health and safety of our employees remains 
a key focus for our business, and we continue 
to strive always for a completely safe workplace 
for our teams. We were extremely saddened by 
the loss of a valued contractor during a routine 
plant equipment service in Bangladesh this year. 
This acts as a stark reminder of the critical nature 
of this area and, the Board and management 
are committed to preventing serious injuries 
and delivering a roadmap to zero accidents. 
Pensions 
In September, we announced the final de-risking 
of our UK pension liabilities with the final 80% now 
fully insured in a c.£1.3 billion deal with Pensions 
Insurance Corporation (PIC). This marks a significant 
step forward for the Group. It provides certainty 
for our pensioners, removes a significant cash 
commitment / uncertainty, and enables management 
to focus on accelerating profitable growth and 
deploying capital to our other key priority areas.
The collaborative manner in which Coats was able 
to work with Pension Trustees and advisors over 
a number of years is indicative of our approach 
to building constructive relationships that deliver 
successful outcomes for all of our stakeholders.
Capital allocation
Coats has an excellent record delivering 
progressive dividends and following another 
period of strong financial delivery, we have been 
able to increase our dividends by 11%, whilst 
still maintaining a strong Balance Sheet, with 
leverage comfortably within the 1x-2x range.
The final settlement of our UK pension liabilities 
also meant that we were in a position to revisit our 
Capital Allocation Policy during the latter part of the 
year. Our capital priorities are: continuing to invest 
in organic growth; delivering a progressive dividend 
payout, and performing disciplined and accretive 
M&A while remaining within a leverage range of  
1x-2x. We will consider further options for additional 
shareholder returns should leverage be expected to 
fall below 1x for a sustained period of time. 
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Coats Group plc Annual Report and Accounts 2024
In collaboration with our customers, our Innovation 
Hubs have been working on a range of products, 
including a focus on hard-to-recycle products, 
focussing particularly on hard-to-recycle circular 
solutions, bonding agents and safety critical items.  
We continue to see innovation as a crucial lever to 
deliver our future growth, and under our new Group 
CEO, David Paja’s supervision, this will remain a  
key priority. 
Digital continues to set Coats apart from the 
competition and our scale enables us to invest in our 
digital operations to deliver efficiency, productivity 
and service to our customers, suppliers, and 
employees, in ways that create shareholder value.
Board changes
Rajiv Sharma left his role as Group CEO in 
September. Rajiv’s contribution during his 14 years at 
Coats, eight as Group CEO, has been immeasurable 
and we have reflected on his tenure on page 
11. I am sure you will join me in thanking Rajiv 
for his leadership in transforming Coats into the 
business it is today and providing a robust platform 
to drive the next phase of our growth journey.
After a comprehensive search process, I was 
delighted that David Paja started as Group CEO in 
October. David was CEO of GKN Aerospace, part 
of Melrose Industries PLC, where he oversaw a 
successful business turnaround and growth. Prior 
to this, David held senior leadership positions at 
Aptiv, Honeywell and Valeo. David’s 30 years of 
experience in a range of complementary industries, 
in addition to his proven success in scaling new 
technologies and driving profitable growth, will 
be a great fit for Coats in our next phase.
In January 2025 it was announced that Jackie 
Callaway had decided to step down from 
her role as Group Chief Financial Officer at 
the conclusion of the AGM on 21 May 2025, 
assisting with an orderly transition to 30 June 
2025. Following a comprehensive selection 
process, the Board appointed Hannah Nichols 
as Group Chief Financial Officer designate. 
She will join the Group on 24 April 2025 and 
will assume Group CFO responsibilities at 
the conclusion of the 21 May 2025 AGM. 
Hannah joins from Hill & Smith PLC, the FTSE 
250 international industrial group, where she 
has been Chief Financial Officer since 2019. 
Prior to this she worked at BT Group plc and 
has over 20 years’ experience in a range of 
finance roles. Hannah is also currently a Non-
Executive Director of Oxford Instruments plc. 
I was also pleased to announce that Srinivas Phatak 
joined as a Non-Executive Director in September. 
Srini brings a wealth of knowledge and experience 
both in his current role as Deputy Chief Financial 
Officer and Group Controller at Unilever PLC, but 
also in over 28 years across consumer products 
in a variety of locations around the world.
Nicholas Bull left his role as Senior Independent 
Director and Chair of the Audit and Risk Committee 
in May, after nine successful years on the Board 
where we saw huge progress across the Group. 
Following Nicholas stepping down form the Board, 
Steve Murray became Senior Independent Non-
Executive Director, and Sarah Highfield became 
the Chair of the Audit and Risk Committee.
I would like to conclude by thanking, on behalf of 
the Board, the contribution of our exceptional teams 
across the world.
Chair’s statement cont.
9.5c (18% growth)
EPS growth driven by strong operating performance 
3.12c
Total dividend up 11% from 2023
Strategic enablers
Coats remains committed to its strategic 
enablers and differentiators of Sustainability, 
Innovation and Digital as the catalysts 
for future growth and profitability. 
In a world where corporates such as Coats are 
rightly challenged to ensure we do the right thing 
for people and the environment, I am incredibly 
proud of the way in which we have managed 
to accelerate our industry-leading sustainability 
platform. This can be seen in numerous ways, 
from our 144% year-on-year growth in recycled 
threads, to commitment to transparent working 
via externally assured sustainability reporting. 
Furthermore, 2024 saw external limited assurance 
of Coats’ core sustainability metrics and our 
2050 net-zero target was validated by the 
Science Based Target initiative, affirming our 
commitments to protecting our environment.
06
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OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Group CEO’s statement
Our 2024 results  
show another year  
of strong delivery, 
creating a platform  
for compounding 
earnings growth.”
2024 HIGHLIGHTS
9%
Organic revenue growth
$67m
Strategic projects savings on  
track to deliver $75 million in 2025
18%
Adjusted EBIT margin
$270m
Adjusted EBIT
$153m
Adjusted free cash flow
144%
Recycled sales growth
DAVID PAJA
GROUP CEO
A world-class industrial business
I would like to begin by thanking Rajiv for his years 
of service to Coats and for the quality of the 
business that he has handed over to me. During 
Rajiv’s tenure, Coats has become a more focussed 
and profitable company, with a strong foundation for 
future growth. 
In my first months as Group CEO, I have visited 25 of 
our sites across 13 countries – representing 90% of 
Coats revenue. I have had the pleasure of meeting 
many employees, customers, suppliers and 
shareholders. My visits have reinforced my view that 
Coats is a premium quality business with substantial 
opportunities for accelerated growth. This is driven 
by our global scale and capability, our unparalleled 
customer base of c25,000 manufacturers and 800 
brands, our financial strength, and our culture of 
ownership, agility and collaboration.
Our industry is rapidly changing as consumers 
demand faster product cycles, more innovation in 
performance and comfort, more product 
personalisation, and a drastic reduction in CO2 
emissions because the fashion industry is 
responsible for 10% of total global CO2 emissions. 
These changes are accelerating the deployment of 
digital tools to shorten the design cycles, improve 
manufacturing planning and inventory control, and 
introduce traceability.
The convergence of three mega-trends - 
sustainability, innovation and digital - is accelerating 
the consolidation of the industry around suppliers 
with the scale, capability and financial muscle  
who can lead this transition. And this is why  
oats as global leader in its product categories is  
in a fantastic position to become an even more 
relevant partner.
New medium-term targets
After reviewing the Group’s operations and markets, 
and gathering inputs from across the business, 
I have reflected on the opportunities ahead 
and updated the Group’s medium-term targets. 
Focussing on our existing, strong positions, together 
with a push into some attractive near adjacencies in 
our markets, will underpin continued medium-term 
organic revenue growth of >5% CAGR.  
We are also in a strong position to further drive 
Group profitability forward, with a focus on 
continuous operational improvement. This will 
deliver higher Group margins over the medium-term 
of 19-21%, and in turn deliver adjusted cumulative 
free cash flow of over $750 million (after interest 
and tax, before dividend distribution) over the next 
five years and high single-digit organic EPS CAGR. 
After investing in organic growth, we will continue 
to use our adjusted free cash flow to maintain a 
progressive dividend and execute disciplined and 
accretive M&A to further enhance our position in 
certain markets. We will also continue to maintain 
our current target leverage ratio of 1x-2x.
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Coats Group plc Annual Report and Accounts 2024
Group CEO’s statement cont.
Strategic enablers
Our strategic pillars of sustainability, innovation and 
digital continue to serve Coats well, and these will 
remain core to our strategy going forward. 
We continue to make excellent progress in the five 
key areas of our Sustainability strategy: Energy, 
Materials, Waste, Water and People. I am particularly 
pleased with the increase in sales of products from 
recycled materials which reached $405 million in 
2024, up 144% from 2023. And in the last two 
months of 2024 we achieved zero waste to landfill 
one year ahead of target, which compares to 
c.2,300 tonnes that we sent to landfill in 2022.  
This is massive progress.
Innovation will be key to accelerating our growth 
and, together with Digital, an area of increased focus 
going forward. In 2024, the launch of Rhenoprint™ 
RP 2.0 technology in structural components 
represented a breakthrough in sustainability for 
Footwear. Meanwhile, in Performance Materials the 
introduction of Gotex Xtru™ tapes with carbon fibre 
reinforcements is boosting our growth in energy 
sectors by enabling the transition to non-metallic 
solutions in oil and gas pipelines. Future innovations 
will centre on the development of recycled products, 
bio-based materials, new chemistry designed for 
recycling, and lightweight safety-critical designs.
Our investment in Digital in 2024 continued to focus 
on strengthening our digital infrastructure, 
enhancing our ShopCoats digital platform with the 
launch of the phone app, and expanding our Coats 
Digital offering – our software products business 
that makes our customer operations more efficient. 
Coats Digital grew sales by 21% and bookings by 
50% in 2024.
Divisional performance 
In 2024 the Apparel and Footwear divisions 
delivered strong margin performance, well ahead of 
their original 2024 profit targets. 
In Apparel our strategy of ‘Winning with the Winners’ 
continues to pay off. In 2024 we increased our 
segment share by further 100 points to 26%. Core to 
this achievement was the substantial growth in our 
recycled product sales which reached $405 million 
in 2024 (vs. $172 million in 2023). We also made 
strong progress in our digital roadmap as we 
launched our ShopCoats mobile phone app which 
allows customers to place orders, track deliveries 
and receive tech support from their phones. With 
over 80% of our Apparel customers placing orders 
in ShopCoats, this is a game-changer.
In Footwear, we completed the integration process 
of the structural components businesses delivering 
$22 million annualised savings from back-office 
consolidation and procurement. This is twice the 
level targeted when we announced the Texon and 
Rhenoflex acquisitions in 2022. The result is a single 
business with larger scale and relevance for our 
footwear customers. The completion of our fully 
integrated footwear manufacturing plant in 
Indonesia sets us up for success in this critical 
footwear growth market. The certification by Anta of 
our technical lab in China positions us as the only 
partner with such capability, ready to support the 
fast-growing China domestic brands. Overall, our 
Footwear division increased share by 200bps in 
2024 to 29%. 
Performance Materials had a challenging year with 
most of its end markets simultaneously weakened. 
The problems in our North America yarns business 
are structural and, as a result, we decided to  
right-size our footprint with the closure of our facility 
in Toluca already executed at the end of 2024.  
This has set us up for improved profitability in 2025. 
The rest of the Performance Materials portfolio is 
attractive in terms of growth and profitability profile 
and will benefit with the market recovery. I am 
especially excited by the prospects for our Telecom 
and Energy businesses going forward. In 2024 we 
started production of reinforcement tapes for 
flexible energy pipes in Spain and we see significant 
product-led growth opportunities in this sector over 
the next few years. We have continued to focus on 
performance threads for automotive, and we 
achieved market share gains at two large 
automotive customers. 
Looking ahead
Based on current market conditions and normalised 
customer buying behaviour, we anticipate another 
year of financial and strategic progress in 2025, in 
line with market expectations.
This guidance reflects continued organic growth for 
Apparel and Footwear, in line with the medium-term 
growth targets for these divisions. Organic growth in 
Performance Materials is expected to be modest 
with no expected recovery in the America’s Yarns 
business and a gradual recovery in the Telecoms 
and Energy business. Margins in 2025 should 
benefit from further growth, improvement in 
Performance Materials and the final benefits from 
strategic projects, which will be balanced in part by 
some targeted reinvestment to drive long term 
growth initiatives. 
Free cash generation is again expected to be  
strong in 2025, supporting the Group’s capital 
allocation strategy.
Group delivery
After a challenging period of sharp industry 
destocking, 2024 has seen a progressive return to 
normal order patterns. With orders recovering, we 
have remained focussed on disciplined operational 
and financial delivery. 
This has resulted in a return to strong top-line 
growth, driven primarily by our Apparel and 
Footwear divisions. It has been particularly pleasing 
to deliver, and exceed, the 17% margin that we 
targeted for 2024, achieving 18% for the Group. By 
the end of 2024 we delivered savings from Strategic 
Projects of $67 million and we remain on track to 
$75 million by the end of 2025.
We have seen another year of strong cash 
generation ($153 million adjusted free cash flow) and 
coupled with the UK Pension settlement, this means 
we will deliver even stronger cash generation going 
forward. This leaves us well placed to generate and 
deploy capital to invest in organic opportunities that 
will drive growth and profitability throughout the 
cycle, be agile in the execution of incremental 
inorganic growth opportunities and continue to 
deliver attractive returns to shareholders.
08
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Coats Group plc Annual Report and Accounts 2024
Group CEO’s Q&A
WELCOMING 
DAVID PAJA
DAVID PAJA
GROUP CEO
DAVID PAJA JOINED 
THE COATS BOARD ON 
1 SEPTEMBER 2024 AND 
ASSUMED RESPONSIBILITIES 
AS GROUP CEO ON  
1 OCTOBER 2024
Originally from Spain, David has an engineering 
background and an MBA from Insead. He 
brings a wealth of experience to Coats, with 
an international career spanning more than 30 
years across America, Europe, and Asia. David 
has led multi-billion dollar technology businesses 
in three different industrial sectors: automobile, 
aerospace and defence, and fire and security.
Before joining Coats, David was the CEO of GKN 
Aerospace, part of Melrose Industries PLC, where he 
played a significant role in the successful turnaround 
of the business and delivery of profitable growth. 
He has also led large global engineering and 
manufacturing businesses at both Honeywell and 
Aptiv where he accelerated organic and inorganic 
growth across different industries.
1. What made you want to join Coats?
Coats is a global market leader with a strong focus 
on sustainability. With more than 250 years of 
history, it has continually reinvented itself.
The industries that we serve are undergoing 
substantial transformation with the shifts in 
consumer preferences, the need to become more 
sustainable, and the digital transformation.
I love being a leader in a changing industry. It provides 
the opportunity to shape the future of the industry 
and, as a result, to accelerate the company’s growth.
2. What are your observations on the business?
Coats is a company that punches substantially  
above its weight. 
Before I joined Coats, everybody warned me that 
this is a very complex business. Indeed, we serve 
c.25,000 customers across 50+ countries from 
44 production sites. I have spent the first months 
on the road trying to understand this complexity, 
and how we create value for our customers.
Our products represent a small part of the final 
product cost, but they are critical to its design, 
production efficiency, quality and performance.
We are by far the largest player in our space, and 
as such, we set the industry standards in terms of 
product performance, product quality, sustainability 
and customer service. 
Our financial performance is above what you would 
expect from a textile supplier. This is because of our  
scale, the value of what we do, and the investments  
we make to stay ahead. In fact, our ability to handle  
complexity sets us apart.
I look at Coats as a premium industrial company 
more than a traditional textile supplier. 
3. How will your experiences with other 
organisations shape your approach?
Over the past 10 years Coats has diversified itself, 
evolving from a thread supplier in the textile  
industry and B2C crafting business, to a provider 
of fibre and polymer-based solutions to multiple 
industries. Today, 27% of our sales are non-thread, 
and 16% of our customers are in new industries  
such as automotive, telecom, or personal  
protection equipment.
My experience in managing global multi-billion 
dollar manufacturing and engineering businesses 
across different industrial sectors, and leading 
diverse global teams, is highly transferable to Coats 
as we strengthen our global leadership in our core 
business and continue to expand into adjacencies 
for growth.
4. What is your vision for the Company, over the 
next 3-5 years?
Coats is at a very exciting inflexion point today. 
Over the past few years, we have rationalised  
our portfolio, consolidated our footprint and  
de-risked our pension liability. As a result, we are 
a well-performing business with opportunities 
for further improvement, and our strong cash 
generation gives us optionality for the future. 
My vision is to be a premium industrial 
company, and to accelerate performance to 
consistently deliver annual growth of >5% 
and profitability at 19-21% EBIT margins.
09
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Coats Group plc Annual Report and Accounts 2024
Over the last 6 years we have been gaining share 
in our core markets through our leadership in 
sustainability. We have room to grow this further by 
strengthening our leadership in sustainability and 
stepping up our focus on innovation and digital. 
Additionally, after our two recent successful 
acquisitions in Footwear, we have proven that we 
can deploy capital responsibly, and we intend to 
expand further inorganically. 
5. What is your approach to fostering company 
culture and employee engagement?
Having worked in different companies I can say  
that Coats’ culture is unique and at the heart of  
our success. 
At Coats, we care about our customers and 
communities, collaborate well, and have a real 
can-do attitude. This gives us a strong sense of 
ownership, agility, and resilience, which I see as  
big differentiators. 
This comes through in the GPTW™ results because 
people feel motivated and empowered to deliver. 
Our 2024 survey had a 94% participation rate and 
produced an incredible 90% Trust Index, which is 
well above the world benchmark on engagement. 
I am confident that with this winning culture, 
we can achieve our ambitious growth vision. 
6. How do you envision Coats evolving under  
your leadership? 
Coats has substantially improved over the past few 
years. The current strategic direction is sound, and 
there is no need to change it. You can expect Coats 
to continue to execute with excellence while we put 
more emphasis on growth. We will keep our focus 
on sustainability and become bolder in innovation 
and digital. 
We will also pursue opportunities to expand 
organically and inorganically into adjacencies,  
but we will only do it where we can create 
shareholder value.
After more than 250 years of history, Coats is at the 
top of its game and has exciting prospects ahead.  
I intend to build on this legacy to take the Company 
to the next level.
Group CEO’s Q&A cont.
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Annual Report and Accounts 2024
Coats Group plc 
Case Study
A Fond Farewell
A FOND FAREWELL TO 
RAJIV SHARMA
Rajiv’s nearly 14-year tenure with Coats has been 
marked by many significant achievements.
Under his leadership, Coats has become a pure- 
play B2B industrial company with market-leading 
positions in the global Apparel, Footwear, and 
Performance Materials industries. His strategic 
vision has propelled Coats to new heights, including:
–	Public Listing Success: Transitioning to a publicly-
listed company on the London Stock Exchange, 
joining the FTSE 250 and FTSE4Good Index.
–	Innovation and Sustainability: Establishing four 
innovation hubs and enhancing our reputation 
as a leader in sustainable practices.
–	Financial Growth: Significantly improving 
profitability and cash generation; completing 
eight acquisitions in personal protection, 
software and footwear.
–	Coats Culture: Transforming Coats into one of the 
world’s top 25 best workplaces and strengthening 
our commitment to the communities in which we 
operate with the Coats Cares programme.
As we reflect on another 
successful year at Coats, we bid a 
heartfelt farewell to Group CEO, 
Rajiv Sharma, who stepped 
down from his role at the end of 
September 2024.
As Rajiv embarks on new ventures, he has 
a few final words to share with us all:
GROUP CEO
“
 
Rajiv has been instrumental 
in driving the transformation 
of Coats since being 
appointed Group CEO eight 
years ago. He leaves us in a 
much stronger position, with 
a platform for accelerating 
profitable growth.” 
David Gosnell OBE, 
Chair
“
 
It has been an honour to be part 
of this incredible journey for the 
past 14 years. I feel blessed to 
have worked with very talented 
individuals and teams from the 
factory shop floor to the 
boardroom. Coats is much 
stronger today, and I am 
confident it will have a 
bright future.” 
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Coats Group plc Annual Report and Accounts 2024
Medium-term financial framework
APPAREL
FOOTWEAR
PERFORMANCE 
MATERIALS
3-4%
REVENUE % (CAGR)
EBIT%
>19%
7-9%
REVENUE % (CAGR)
EBIT%
24-26%
6-8%
REVENUE % (CAGR)
EBIT%
13-15%
>5%
REVENUE % (CAGR)
EBIT%
19-21%
FCF 1 (CUMULATIVE)
>$750m 
over 5yrs
ORGANIC EPS3 (CAGR)
TOTAL EPS3 (CAGR)
HSD%4
>10%2
1.	 FCF as adjusted free cashflow before dividend distribution
2.	 Post M&A or share buyback
3.	 From 2025 baseline.	
	
	
	
4.	 High single digit
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Coats Group plc Annual Report and Accounts 2024
Strategy and Market Trends
By leveraging innovation, 
sustainability, digital technologies 
and our global scale to create 
world-class products and 
services, we deliver value to  
our stakeholders.
OUR STRATEGY  
ACCELERATE PROFITABLE 
SALES GROWTH, 
TRANSFORM THE BUSINESS 
AND CREATE VALUE
MARKET TRENDS
OUR STRATEGIC ENABLERS
DELIVERING INDUSTRY- 
LEADING DIGITAL SERVICES
DEVELOPING INNOVATIVE 
SOLUTIONS
PIONEERING A 
SUSTAINABLE FUTURE
For more detail see page 15
For more detail see page 29
For more detail see page 19
TREND 1
TREND 2
TREND 3
Growth of Asian domestic markets and brands
Domestic consumer demand in Asia is growing faster than in the US and Europe. 
Favourable demographics and expanding consumer wealth drive this growth. 
TREND 4
1
For more detail see page 53
2
3
4
Macro-economic conditions
In 2024 we saw continued uncertainty and instability across the globe, including the impending 
threat of global tariffs / trade wars, however we have encouragingly seen a number of our end 
markets return to growth. 
Sustainability
This is increasingly important due to consumer pressures, customer strategies,  
and legislative changes. It is central to our business, influencing our products and  
operations. Many customers are developing sustainability-focussed partner programmes.  
This trend is expected to grow in importance over time.
AI and emerging digital technologies
In 2024, industry adoption of generative AI and digital technologies accelerated, enhancing 
speed, productivity, and supply chain transparency. Investments in technology and Gen AI 
solutions improved supply chain and support functions, while sustainability-led innovations 
reduced waste and increased productivity, all while maintaining cyber security vigilance.
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Coats Group plc Annual Report and Accounts 2024
We look for the right balance 
of global, national and local 
capabilities to maintain supply 
chain agility.
For more detail see page 46
3
2
4
4
2
2
1
1
3 4
2
2
3 4
2
3 4
2
1
2
4
2
1
3
3
1
1
2
2
3
2
3
2
1
4
SPEED
PRODUCTIVITY
INNOVATION
QUALITY
RELIABILITY
Speed to market is critical in an 
industry where lead times are 
short and getting ever tighter.
For more detail see page 30
Innovation is at the heart  
of everything we do.  
We recognise that big, bold, 
game-changing ideas are 
critical to our success.
For more detail see page 17
We manufacture to high 
ethical, labour and 
environmental standards  
whilst delivering consistent 
colour and exceptional  
product quality.
For more detail see page 43
We provide high quality 
products, technical service 
advice and digital solutions 
throughout the production  
and sales process which  
drive efficiency benefits.
For more detail see page 33
Our track record for reliability 
and excellent technical 
customer service allows  
us to partner with leading 
global retailers, brands  
and manufacturers.
For more detail see page 20
QUALITY
SUSTAINABILITY
Sustainability is a core part  
of our wider business strategy 
and an imperative to our  
mid- and long-term  
business success.
For more detail see page 15
HOW WE CREATE VALUE FOR OUR CUSTOMERS
HOW WE CREATE VALUE FOR OUR STAKEHOLDERS
EMPLOYEES
INVESTORS
CUSTOMERS
SUPPLIERS
COMMUNITIES
We are committed to  
delivering superior returns  
and long-term, sustainable 
value for our investors.
For more detail see page 44
Coats is committed to being  
a good corporate citizen and 
an active member of the  
local communities in which  
we operate.
For more detail see page 25
ENVIRONMENT
Relevant market trends 
(see previous page)
Business Model
We are committed to achieving 
our climate goals that align 
with the global efforts to 
ensure a positive and 
sustainable future for all.
For more detail see page 15
We are a proud employer of 
>16,000, highly engaged, 
committed and diverse 
permanent workforce.
For more detail see page 21
We put our customers at the 
centre of everything we do, 
helping them to solve complex 
problems. As their 
expectations evolve, we 
continually drive towards 
responsibly sourced, 
sustainable products.
For more detail see page 20
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Coats Group plc Annual Report and Accounts 2024
Strategic Enabler
SUSTAINABILITY
EXTERNALLY ASSURED METRICS
Sustainability is at the very heart of our strategy at 
Coats. It encompasses the products we create and 
sell through innovation, as well as how we manage 
our operations. Our investment in sustainability, and 
leadership in sustainable innovation provides a 
strong competitive advantage with our customers. 
In 2023, we commenced work to deliver external 
assurance of our seven core sustainability metrics, in 
accordance with ISAE 3000 (revised) and ISAE 3410 
standards. We are delighted to now publish details 
of our 2022 baseline and 2024 results which have 
undergone limited assurance, without qualification. 
Details of our external auditors assurance statement can 
be found after the TCFD section, on page 182 of this 
report, with our comprehensive basis of reporting 
document published and available from the 
downloads section of coats.com.
On the right, we have outlined our highly ambitious 
short-term (2026), medium-term (2030), and long-
term (2050) sustainability targets. By the end of 
2024, we reached the midpoint in our 2023-2026 
targets horizon, and we are fully on track to deliver on 
all targets. Full details of targets delivery and metric 
trends can be found on page 40 of this report.
Longer term, we remain fully committed to:
–	Delivery of ‘science-based target’ emissions 
reduction across Scopes 1, 2 and 3 by 2030
–	Achievement of Net-Zero emissions by 2050
–	Continuing our transition to renewable energy 
with 100% renewable electricity by 2030
–	Driving innovation in development and adoption 
of new market-leading eco materials to underpin 
our journey to 100% non-virgin oil-based materials 
by 2030.
We fully recognise the necessity of moving towards 
a circular economy and are dedicated to taking a 
leading role in this space within our industry. We aim 
to positively impact both the environment and 
society. Our sustainability targets are driven by our 
diverse, dynamic, and engaged team, each member 
contributing unique skills and experiences to Coats.
Our targets for the 2023-2026 period are geared 
towards achieving our longer-term sustainability 
commitments and help direct our focus as well as 
enabling tracking of progress across the Group. 
Through these targets, we embed a holistic 
approach to sustainability, which balances 
sustainable resource management, environmental 
impact reduction and social responsibility.  
We remain fully committed to leading the industry  
in sustainability and social impact.
2026
2030
2050
OUR NEXT CHAPTER SHORT-TERM TARGET
OUR GOALS FOR 2030 ARE CLEAR AND AMBITIOUS
LONG-TERM TARGET
Zero products  
from virgin oil-based 
materials
70% of total energy 
from renewable sources
Circular product and 
packaging solutions
Increased positive 
social impact
Net-Zero
emissions in our value chain by 2050
33%
increase in water 
recycling rate 
by 2026 from 
2022 baseline
46%
reduction in Scopes 1 and 2 
emissions
88%
GPTW™ coverage
30%
women in 
leadership roles
22%
reduction in 
Scopes 1 and 2 
emissions from 
2022 baseline
100%
renewable electricity
60%
transition to 
recycled or 
bio materials
100%
effluent 
compliance 
(Roadmap to Zero)
33%
reduction in  
Scope 3 emissions
0%
waste to  
landfill
APPROVED SCIENCE-BASED TARGETS WITH 2019 BASELINE THAT COMMIT US TO
FURTHER TRANSFORMATIONAL TARGETS
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By implementing a variety of initiatives across 
the Group, Coats has reduced the landfill burden 
since 2022 by 87% to 288 tonnes of landfill in 
2024. In addition, by the end of the fourth 
quarter 2024, we achieved zero waste to landfill, 
one year ahead of our published target.
 
The disposal of waste to landfill is a major environmental 
concern because it produces substantial amounts of 
methane, a greenhouse gas with a negative impact on 
global warming. Additionally, as organic materials break 
down, they have the potential to contaminate land, soil, 
and groundwater, through polluting leachates and toxins, 
adversely affecting nearby communities. 
The initial step towards this goal involved developing  
a thorough understanding of the types and quantities  
of waste each business unit was sending to landfill.  
To facilitate this, we implemented new mechanisms for 
segregating waste and gathering data, enabling us to 
implement action plans to identify and implement more 
environmentally-friendly ways to manage this waste.
These routes include the reuse and recycling of waste 
material, and the conversion of some materials to 
energy, through incineration.
Coats Group plc Annual Report and Accounts 2024
Sustainability strategy in action
SBTI APPROVAL: A MILESTONE  
IN OUR NET-ZERO JOURNEY
In 2024 we achieved Science Based Target Initiative 
(SBTi) approval of our 2050 Net-Zero target. Setting 
and achieving this ambitious target ensures that 
Coats is fully contributing to global efforts to limit 
temperature rise to 1.5°C, which is essential for long-
term environmental and economic sustainability.
The latest UN Intergovernmental Panel on Climate 
Change (IPCC) outlined that human-induced 
warming has already reached ~1.1°C above pre-
industrial levels. The most recent World 
Meteorological Organisation (WMO) State of the 
Climate 2024 Update issued a red alert at the sheer 
pace of climate change in a single generation, turbo-
charged by ever-increasing greenhouse gas levels 
in the atmosphere.
Coats is committed to playing its part to help 
mitigate climate change by transitioning to become 
a Net-Zero company. Reducing greenhouse gas 
emissions across our entire value chain therefore 
remains a bedrock of our short-, medium-, and long-
term sustainability strategy.
In the short-term time horizon of 2023-2026, we have 
committed to deliver a 22% reduction in Scopes 1 
and 2 emissions by 2026 from our 2022 baseline, 
and are proud at the extent to which we have already 
over delivered on this target. In 2024, we delivered a 
51% reduction in absolute Scopes 1 and 2 emissions, 
primarily through the accelerated progress we have 
made on transition of electricity from fossil fuel to 
renewable generation sources. In 2024, 74% of our 
Group electricity was renewable certified – up from 
29% in our baseline year, with delivery coming from  
a combination of rooftop solar, Power Purchase 
Agreements for off-site generated renewable 
electricity, and supplemental green energy through 
purchase of standalone Renewable Energy 
Certificates (iRECs). We now have rooftop solar 
installations in place across ten of our manufacturing 
facilities as at the end 2024.
Emissions related to raw materials continue to make 
up more than two-thirds of our Scope 3 emissions 
and delivery of our 2030 SBTi targets will be 
underpinned by our transition to non-virgin oil-based 
materials. Positive progress has been made against 
this target with dedicated cross-functional project 
teams focusing on materials transitions for threads, 
yarns and structural footwear materials. In 2024, we 
increased our preferred raw materials to a level of 
46%, up from our 2022 baseline of 31% and 2023 
level of 35%. Our innovation teams have dedicated 
efforts to development of new circular products 
which utilise post-industrial and post-consumer 
textile waste as the primary raw materials feedstock. 
Early customer trials in this exciting area are 
underway and we expect to commence scaling in 
the coming 12-18 months.
In 2024 we made further very significant progress 
towards our 2026 Zero Waste to Landfill target. In 
our 2022 baseline year we recorded 2.3k tonnes of 
waste which was sent to landfill, and through cross-
functional team-working and external supply chain 
collaboration, we have reduced our 2024 landfill 
usage to 288 tonnes, equating to an 87% reduction 
from our baseline. As 2024 advanced, more 
business units reached the zero-target marker, 
leaving only a small handful of exceptions 
contributing to landfill waste, which by its nature was 
non-operational waste (predominantly legacy 
asbestos or medical waste which in some 
jurisdictions must be disposed of in controlled and 
regulated landfill facilities).
Equally, due to our stringent enforcement of our 
restrictive substance list on the upstream supply 
chain, we continue to prevent hazardous chemicals 
from entering our value chain and effluent treatment 
systems. This has been a key factor in maintaining 
notably high levels of compliance against the 
voluntary ZDHC Roadmap to Zero – Effluent 
Compliance programme this year.
We have committed to increase our water recycling 
rate by 33% from a 2022 baseline, and remain on 
track for delivery. This year we focussed on 
optimising existing water recycling facilities, 
extending capacities and implementing robust 
maintenance programmes to improve output 
efficiency. A total of 1.1 million cubic metres of water 
were recycled in 2024, equating to 27% of our overall 
water consumption. In addition, two industrial scale 
installations are under construction in both Indonesia 
and Bangladesh, which, once commissioned, will 
deliver a further one million litres of daily water 
recycling. Recycling feasibility studies continue to 
take place with priority attention being given to those 
locations situated in high water stress locations.
REDUCING LANDFILL WASTE  
TO ZERO
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Strategic Enabler
INNOVATION
DRIVING GROWTH  
AND DIFFERENTIATION
Innovation remains a core driver of incremental 
growth, enabling us to meet evolving market 
demands with highly-engineered, differentiated 
solutions. We continue to strengthen our core 
technology in five areas – textile engineering, 
surface science, polymer science, fire science, and 
colour science – through strategic investments in 
capabilities and talent across our global Innovation 
hubs and spokes. These platforms not only allow  
us to solve customer challenges within our existing 
business but also enable us to enter adjacent 
markets, expanding our impact and growth potential.
Our commitment to innovation is exemplified by key 
advancements across all divisions:
–	Apparel: Our focus on material transitions and 
recycled thread products has yielded exceptional 
results, with sales of recycled threads growing 
144% to $405 million. These products underscore 
our leadership in sustainable innovations.
–	Footwear: We continued to push the boundaries 
with Rhenoprint™ RP 2.0 a breakthrough in 
lightweight structural components that significantly 
reduces carbon footprints, made possible by our 
expertise in process and machine design. 
Additionally, we are expanding into the footwear 
woven uppers market, an exciting adjacency where 
we leverage our textile engineering expertise to 
develop high-performance, breathable, and 
durable woven uppers. 
–	Performance Materials: In the Energy sector,  
we are pioneering advanced tape solutions that 
reinforce and protect flexible offshore and 
onshore pipelines, addressing the need for 
durability and extreme environmental resistance. 
Additionally, we are expanding into Personal 
Protection Equipment (PPE) fabrics, applying our 
expertise to develop next-generation materials 
that improve worker safety and comfort.
Our robust technology platforms provide a solid 
foundation to collaborate with customers in creating 
products that address critical market trends, such as 
the adoption of recycled and bio-based materials, 
lightweight and safety-critical designs, and end-of-
life recycling technologies. By harnessing these 
platforms, we not only enhance our product 
offerings but also foster deeper partnerships with 
our clients to co-develop solutions tailored to their 
specific needs. 
Through these initiatives, we remain committed to 
re-imagining both what we produce and how we 
produce it, ensuring that innovation continues to  
drive sustainable and impactful growth for our 
stakeholders. This commitment enables us to stay 
ahead of industry trends and regulatory 
requirements, positioning us as leaders in responsible 
innovation. As we move forward, we will continue to 
invest in research and development, exploring new 
materials and technologies that align with our 
sustainability goals. By doing so, we aim to create a 
future where our products not only meet the highest 
standards of performance but also contribute 
positively to the environment and our communities.
FLAMEPRO™ SPLASH
REDEFINING WORKER SAFETY IN FOUNDRIES
In the high-risk environment of metal foundries, making sure workers are protected is non-
negotiable. Addressing a critical gap in comfort and performance within existing protective 
fabrics, Coats leveraged its expertise in textile engineering and fire science to develop FlamePro™ 
Splash, a revolutionary solution now under patent protection.
THE CHALLENGE: BALANCING SAFETY AND COMFORT
Traditional molten metal protective fabrics, often wool-based, provide effective safety but fall 
short on comfort in high-heat, high-stress conditions. Market research revealed that discomfort 
could compromise worker focus and efficiency. This insight drove Coats’ Innovation hubs in  
Bursa and the Americas to explore wool-free solutions that deliver both protection and comfort.
ADVANCED FEATURES
•	 Shields against molten metal splash, radiant heat, flame, and Category 2 Arc hazards.
•	 Provides enhanced comfort, breathability, and wearability without compromising safety.
•	 Solution-dyed for superior colourfastness, withstanding prolonged use and laundering.
•	 Skin-safe design prevents adhesion and breakage under molten metal exposure.
PROVEN IN THE FIELD
Wear tests at a US aluminium foundry confirmed superior performance by FlamePro™ Splash. 
Workers reported unprecedented comfort and flexibility, many choosing it as their uniform of 
choice. The fabric retained its integrity and appearance after months of use, proving its resilience 
in industrial conditions.
SETTING A NEW BENCHMARK
FlamePro™ Splash exemplifies Coats’ commitment to addressing real-world challenges through 
innovation. Rigorously tested to meet relevant ASTM and ISO standards, it combines advanced 
molten metal protection with comfort, durability, and performance. Its industry-leading innovation 
was recognised at the 2024 National Safety Council (NSC) Safety Congress and Expo, where it 
was crowned ‘Best in Show’ at the New Product Showcase Awards.
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Innovation strategy in action
Threading the future: EcoVerde™  
and material transition in Apparel
In 2018, the Apparel division began their material 
transition and sustainability journey, aiming to shift 
from virgin to recycled thread products. This effort 
has led to increased sales from our Coats EcoVerde™ 
range of recycled products in 2024 – a 144% 
improvement in recycled thread sales over 2023. 
A key factor in this progress has been our systematic 
approach to transitioning virgin polyester substrates 
to recycled materials. By evaluating raw materials, 
qualifying suppliers, and establishing product 
specifications, we are ready for a complete transition. 
Our latest innovation, the Coats EcoVerde™ Eloflex, a 
recycled Polybutylene Terephthalate (PBT) thread 
designed for athleisure, demonstrates our 
commitment to sustainable product development that 
meets the demanding requirements of seam 
softness, stretch, and durability.
Stepping into the future: 
innovations in Footwear
Our innovation pipeline is strategically aligned  
with emerging consumer trends, focusing on 
sustainability and circularity, wearable technology, 
and delivering high performance while enhancing 
comfort. By leveraging our core technology 
platforms in polymer science, surface science,  
and textile engineering, we develop differentiated 
products that meet the evolving needs of 
consumers and customers.
Rhenoprint™: Evolution through digital integration
Building on the success of Rhenoprint™, we 
introduced its latest evolution now featuring an 
integrated RFID chip solution that enhances 
sustainability and drives digital transformation.  
This advancement retains Rhenoprint’s hallmark 
features, such as zero-waste production and 
reduced material usage, while significantly lowering 
CO2 emissions for an even greener footprint.
Our advancements are supported by technology 
platforms in textile engineering and colour science, 
which have accelerated the development of 
sustainable threads. Leveraging these technologies, 
we have achieved measurable environmental 
benefits: recycling 2.9 billion bottles year-to-date, 
saving 869 million kWh of energy, and reducing our 
carbon footprint by 67.9 million kilograms.
As we continue our sustainability journey, we are 
focusing on the next phase of innovation at Coats.
Key areas include:
–	Circular Polyester: Evaluating a polyester fibre 
made from textile waste to prevent millions of 
garments from ending up in landfills or 
incinerators, reducing environmental impact.
–	Bio-Based Materials: Exploring alternatives to 
support our goal of net-zero emissions.
–	Next-Generation Threads: Projects include 
cellulosic threads for circular denim, pucker-free 
thread solutions, and hole-blocking threads for 
outerwear. These threads, designed with 
functional finishes, represent the future of Coats.
Our material transition journey and thread 
innovations are central to our sustainability efforts. 
With support from technology platforms and brand 
collaboration, we remain dedicated to driving 
innovation, reducing environmental impact, and 
shaping a more sustainable textile industry.
The integrated RFID chip offers precise tracking  
and life-cycle management for each component, 
enabling efficient recycling and end-of-life 
processing. Additionally, it provides a robust solution 
for product authentication and helps prevent 
product and brand piracy, safeguarding both 
consumers and businesses. By marrying cutting-
edge digital capabilities with sustainable practices, 
Rhenoprint™ sets a new benchmark for eco-
conscious innovation.
Imperfirm Fuze™: pioneering new technology
During the year, we launched Imperfirm Fuze™, a 
revolutionary toe puff solution used in performance 
running shoes that feature new upper constructions. 
Imperfirm Fuze™ is engineered to withstand bonding 
conditions of above 200°C and 50 bar, delivering 
exceptional bonding and fusion properties.  
This results in a translucent, stiff structural 
component that enhances shoe performance  
and durability.
In addition to its superior performance, Imperfirm 
Fuze™ significantly lowers the carbon footprint and 
minimises waste during production. This innovative 
solution makes shoe manufacturing more energy-
efficient and environmentally friendly. The enhanced 
durability reduces the need for frequent 
replacements, further decreasing material 
consumption and waste.
Imperfirm Fuze™ also enables more intricate and 
sustainable designs that use fewer materials and 
resources, aligning seamlessly with the industry’s 
sustainability goals. Moreover, shoes produced with 
our new technology are easier to disassemble at the 
end of their life cycle.
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Strategic Enabler
DIGITAL
Our digital offering is another differentiator and 
enhancing our global digital infrastructure and 
capability is a key piece of our strategy. 
We are accelerating our vision to build a digital 
platform ecosystem that creates end-to-end 
superior customer value for manufacturers and 
brands globally, spanning across product selection, 
sampling, ordering, tracking, customer service and 
payment management.
In 2024, over 80% of customer orders in Apparel 
were processed through our leading ShopCoats 
platform, with improved customer satisfaction and 
growth from new digital features such as the 
ShopCoats mobile app that allows orders to be 
placed anywhere anytime, increased visibility to our 
available inventories, improved technical support 
through our Tech Connect solution which enables 
our customers to seek real-time online support for 
issues encountered; and for China, the launch of an 
online store on WeChat.
Coats Digital, our software products business,  
offers industry-leading productivity solutions to 
manufacturers and brands by bringing transparency 
and standardisation to the calculation of production 
costs across the value chain, and enabling 
manufacturers to plan their production lines more 
effectively to cope with frequent order changes.  
In an increasingly volatile, uncertain and complex 
world, in which speed, productivity, operational and 
cost efficiency are terms of trade, our solutions are 
increasingly becoming the software of choice.  
In 2024, Coats Digital reported a 21% increase  
in top-line revenue ($11 million), a 50% surge in  
order bookings, and a 12% rise in annual  
recurring revenue.
We track the customer journey from garment 
planning and production, through to delivery and 
payment management. Our strategy is to digitise 
each of these stages as far as possible, creating a 
cohesive trading platform between Coats and its 
customers. This enhances customer loyalty, reduces 
waste, and provides valuable analytics to enable 
better and more efficient production for both Coats 
and its customers.
STRATEGY IN ACTION
OUR DIGITAL PORTFOLIO
Our vision is to create a proprietary and cohesive 
customer experience for brands and tier 1 
garment and footwear manufacturers, making 
trading with us truly frictionless, intuitive, and 
superior to any competitor.
Purchase
Plan
Design
Product Development &
Sourcing
Production
Delivery
Brand Solutions
Tier 1 Solutions
Product 
Catalogue
Sample 
Management
Technical 
Support
Thread 
Calculation 
Tool
Sample 
Management
Order 
Management
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Technology strategy in action
INTEGRATING INTO CUSTOMER 
PREFERRED PLATFORMS
Coats official WeChat Mini Programme: expanding 
into China’s vast and diverse customer base
In October 2024, Coats China launched its Online 
Store via WeChat Mini Programme, marking a key 
milestone in our ongoing efforts to expand our 
digital footprint and engage directly with its 
massively diverse small business customer base  
in China. This launch is an integral part of Coats’ 
strategic ‘Now China’ initiative, designed to harness 
the full potential of digital technologies to drive sales 
growth, streamline customer experiences, and 
support the Company’s long-term vision in the 
important and growing country.
WeChat is China’s largest social media platform  
and provides a comprehensive ecosystem offering 
services like shopping and mobile payments.  
The WeChat Mini Program serves as a robust digital 
store-front. Coats WeChat store provides a seamless 
and integrated shopping experience, enabling local 
customers to browse, chat, and purchase a wide 
range of Coats high-quality products directly from 
their smart phones – anytime, anywhere.
Complementing ShopCoats, the introduction of 
Coats WeChat Store unlocks immense potential  
for Coats in China, a market characterised by  
rapid digital adoption and growing demand for  
high-quality and sustainable solutions. 
TECH CONNECT CHANGING HOW WE WORK
At Coats, we are dedicated to enhancing our customers’ digital experience. The introduction of our 
exclusive Coats Tech Connect App in India has been a game-changer. This innovative app has created 
a community of over 120 technical professionals among our selected customers, leading to an increase 
in technical engagements, improved customer satisfaction, and increased sales.
The Coats Tech Connect App allows customers to place 
sewing thread inquiries, report production line issues, or seek 
advice on productivity improvements within their factories. 
Customers can connect with a Coats technical expert via text, 
voice, or video call in real-time. The call continues until the 
issue is resolved to the customer’s satisfaction.
Whether customers need help choosing the right thread for 
their garments, factory floor advice, or any other support, the 
Coats Tech Connect App ensures they can connect with one 
of our 100 global technical experts quickly and efficiently.
 
Seamless end-to-end system integration enhances 
customer experience
In this new lead-to-cash journey, Coats China 
leverage’s social media platforms to run engaging 
campaigns, which drives traffic to the Coats WeChat 
Store, enabling customers to interact in real-time 
with our customer care team, browse products, 
select their preferred products, order and pay via  
WeChat Pay.
Customers can easily track their orders, monitor 
delivery status, and share feedback. This highly 
automated and integrated system ensures a smooth, 
transparent discovery-to-delivery experience, 
enhancing the overall satisfaction.
Overall, the Coats WeChat Store has positioned 
Coats to capitalise on the growing domestic 
opportunity, diversify its customer base, and 
strengthen its leadership in the Chinese market.
“
Tech Connect has simply changed 
our way of working. It enables our 
technicians on the shop floor to 
connect quickly and directly with  
Coats Technical Services for 
recommendations that save time and 
avoid potential production disruptions.”
Leading Indian apparel manufacturer
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Our values
OUR VALUES CAPTURE COATS’ UNIQUE CULTURE
WE ARE COLLABORATIVE
Coats connects talent, textiles and technology to deliver 
great service and quality to our customers. We collaborate 
across all geographies with partners and customers to 
create the materials and products of tomorrow. We believe 
the success of our colleagues is the success of Coats.
WE ARE AGILE
With a proud heritage dating back more than 250 years 
and a spirit of evolution that drives us to constantly 
stay ahead of the game, we have always adapted to 
change, thriving and becoming stronger as a result.
WE HAVE A ‘CAN-DO’ ATTITUDE
We operate in a fast-paced, ever-changing world. We are 
confident, motivated and energetic dealing with new tasks and 
challenges, committed to serving our customers, trusted to deliver.
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Our values cont.
WE ARE PASSIONATE
We are enthusiastic about our work, our colleagues, our company 
and especially our customers. Passion is seen in everything we 
do. We are proud that our employees find Coats a Great Place To 
Work® and to be voted as one of the top 25 best workplaces.
WE ARE DIVERSE
We operate across more than 50 countries, with a workforce of 
16,000+ permanent employees. We speak over 30 languages 
and come from a wide range of backgrounds, including 
different cultures, genders, ethnicities, ages and experiences. 
We come together as one and are a company for all.
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Coats Group plc Annual Report and Accounts 2024
People and culture
PEOPLE VALUE PROMISE:
For today and tomorrow
An engaged and empowered workforce is the 
heartbeat of our success, driving innovation, 
productivity, and growth at every level. Our culture of 
engagement is not just a strategy, it’s our commitment 
to creating an environment where employees feel 
valued, inspired, and integral to our shared vision.  
This energy radiates beyond our walls, strengthening 
Coats’ reputation as a magnet for top talent, trusted 
clients, and visionary investors. Through our dynamic 
people initiatives, we cultivate a workplace where 
every individual experiences true belonging, fuelling 
resilience and sustainable success. By planting the 
seeds of what it means to be a Great Place To Work®, 
our programmes thrive, helping our people grow and 
flourish alongside the business they help build. 
FOSTERING A THRIVING WORKPLACE:
Creating a Great Place To Work
At Coats, we are passionate about creating a great 
place to work! Every employee feels they belong, 
their voice is valued, and their contributions make a 
real difference. We believe that great people are the 
foundation of extraordinary achievements, and our 
culture of engagement is the driving force behind 
our success. It empowers individuals to bring their 
best selves to work, igniting motivation, commitment, 
and innovation at every level. We are deeply 
committed to magnifying the potential of our people, 
fostering a workplace where personal and 
professional growth go hand in hand. Through our 
diverse range of people-focussed initiatives, our 
dedication to being a Great Place to Work® is more 
than a promise; it’s a reflection of how we value  
our people. We support it with competitive pay, 
comprehensive benefits, and continuous 
opportunities for growth and advancement.  
By nurturing a thriving, inclusive, and supportive 
culture, we attract top talent, delight our  
customers, and deliver sustained value for our 
shareholders. Together, we are building a  
workplace where extraordinary people can  
achieve extraordinary things.
 
People grow businesses, and this is 
why our people are at the heart of 
everything we do. At Coats we are 
focussed on unlocking the potential 
of every individual, ensuring a 
customer-centric culture.”
Farnaz Ranjbar, Chief Human Resources Officer
50+
COUNTRIES
16,000+
PERMANENT EMPLOYEES
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People and culture cont.
GROW AT COATS
Limitless potential of people
Grow is a transformative programme designed to 
accelerate career development and unlock individual 
excellence, used to bridge career growth with 
organisational success. Grow is a journey in two 
parts, tailored to empower employees at every career 
stage. Grow Ready focuses on identifying and 
unlocking individual potential, helping discover 
strengths and chart a path to success. Grow Learning 
equips our people with essential skills needed to 
thrive today and, in the future, preparing them to 
meet challenges with confidence and innovation. 
Grow leverages the latest techniques in talent 
management and learning and development to 
deliver experiences that inspire growth. Through 
personalised development plans, immersive learning 
modules, and hands-on coaching, employees gain 
access to forward-thinking and impactful tools. 
Whether mastering emerging technologies, honing 
leadership capabilities, or exploring cross-functional 
opportunities, Grow ensures our people stay ahead 
of the curve. At Coats, we don’t just invest in careers 
– we invest in people, empowering them to flourish 
and drive Coats success to new heights.
COATS CARES
Connecting people, improving lives
At Coats, we believe in making a difference, not just 
in business but in the world around us. We are 
deeply connected to the communities we touch and 
are endlessly inspired by our passionate colleagues 
who selflessly dedicate their time, energy, and 
compassion to create real change. For years, Coats 
has championed meaningful causes, bringing hope 
and support to charities and communities in need. 
Now in our second year, we celebrate our unsung 
heroes. Coats Cares is our promise to continue this 
legacy and amplify our impact. See page 25 for  
our case study.
ENERGY4PERFORMANCE
Wellbeing at home and at work
Energy4Performance (E4P) is our comprehensive 
wellbeing programme designed to support the 
overall health and wellness of our employees, 
covering physical, mental, emotional, and social 
wellbeing. In 2024, we successfully trained over 900 
managers as mental health first aiders, ensuring that 
employee wellbeing remains a top priority across 
the organisation. We launched more than 170 global 
initiatives, accompanied by consistent 
communication, educational resources, coaching, 
and recognition programmes to celebrate 
achievements. Recognising the diverse nature of 
wellbeing, we tailored global programmes to local 
contexts to maximise their impact. As a result, we 
saw notable improvements in our wellbeing scores, 
with increases of 6% in the Your Voice Matters 
survey and 5% in our Great Place To Work survey. 
In November, our Movember celebration for Men’s 
Health Awareness drew over 460 attendees at our 
global virtual events.
COATS FOR ALL
Celebrating diversity
Since 2021, we have voluntarily collected diversity 
profiling data from employees, including race, 
ethnicity, gender, sexual orientation, and military 
status, to enhance our employee experience 
strategy. Our Board Diversity Policy was updated  
to align with FTSE Women Leaders Review’s 
recommendations on gender diversity and the 
Parker Review guidance on ethnic diversity at the 
board level. Currently, we meet these targets,  
with 44% female representation, two Board members 
from ethnic minority backgrounds, and six 
nationalities represented. Diversity, equity, and 
inclusion (DEI) global events are held biannually.
COATS FOR HER
Women in leadership
The dynamic ‘Coats for Her’ programme continues 
spearheading five impactful initiatives: Women in 
Leadership Fast-Track, Mentoring, Female 
Recruitment Campaign, Women’s Visibility, and 
Return to Work. We introduced a talent acquisition 
playbook to attract the most diverse, equitable, and 
inclusive talent, as part of our recruitment policy.  
And we also elevated the visibility and profiles of 
female leaders across Coats through strategic 
spotlights, reinforcing our commitment to fostering  
a workplace that celebrates and advances  
gender diversity.
Our global female to male gender balance is 39:61 
with 23:77 in senior leadership roles. We delivered a 
meaningful increase from 23% in 2023 to 30% in 
2024 of females in senior leadership roles. Our target 
for 2024 was 25% and with this great achievement, 
we are in a very good position to meet our ambitious 
goal of 40% female representation by 2030.
APPLAUSE
Applauding outstanding employee contributions
Our Applause Recognition Program is all about 
celebrating the outstanding contributions of our 
people. No matter where we operate, we uphold the 
same high standards of excellence and 
professionalism, ensuring that everyone has an 
equal opportunity to be recognised. In 2024, more 
than 4,000 employees were honoured through our 
Applause Awards, which highlighted achievements 
in a range of categories.
APPRECIATION WEEK
Grateful for our people!
Every year, Coats recognises the heart of our 
organisation – our people – during Appreciation 
Week. This special week is a time to truly appreciate 
the dedication, passion, and hard work our 
employees bring every day to delight our customers 
and keep our company running smoothly. In 2024, 
our theme was “Grateful for You”, where managers, 
colleagues, and teams came together to express 
their gratitude, fostering a deep sense of belonging 
and celebrating the unique contributions that each 
individual makes to our success.
24
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Coats Group plc 
Case Study
A Beacon of Hope
For many years, Coats has been  
a beacon of hope and progress, 
reaching out to communities around 
the globe. Coats Cares brings all  
of these community engagement 
projects under one big umbrella.
In October 2023, we introduced the Coats Cares 
competition to celebrate remarkable acts of 
kindness and generosity displayed world-wide.
The outpouring of support and engagement was 
extraordinary, with 101 entries showcasing unique 
and heart-warming stories of community upliftment. 
From this inspiring pool of submissions, our 
dedicated Coats Cares sounding board faced the 
challenging task of short-listing the top ten entries.
The Group Executive Team then selected 
five outstanding initiatives to each be 
awarded a $15,000 prize (which we are 
showcasing here), and all runners-up have 
been given $5,000. In total $100,000 was 
given back to Coats communities in 2024.
Bangladesh: Sponsorship Programme for 
Underprivileged Children
When families have to choose between education 
and food, for many students this would be the 
end of school. However, 15 underprivileged 
children at Utsho School have benefited from 
a full Coats sponsorship. Giving these children 
new hope and allowing them to create a 
better life for themselves and their families.
The prize money won was used to introduce a 
new computer lab at the school giving students 
the opportunity to gain essential digital skills.
CELEBRATING KINDNESS AND GENEROSITY
“
 
At Coats, we believe that a 
sustainable future starts with 
the commitments we make today. 
‘Coats Cares’ is our promise 
to create lasting value for our 
employees, communities and 
the environment – because 
caring is not just what we do, 
it’s who we are.”
Farnaz Ranjbar, 
Chief Human Resources Officer
COATS CARES
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Coats Group plc 
Case Study
A Beacon of Hope cont.
INDIA 
Skill Development Centres 
for Rural Women
For women in rural areas of India there is limited 
opportunity for skills development, reducing any 
potential to become financially independent. With 
this project we teach sewing, fabric design and 
stitching, which has encouraged many women to 
engage in income-generating activities, or even to 
start their own tailoring business. Not only does  
this allow these women to become economically 
empowered, it also contributes to the economic 
development of their region.
INDONESIA 
Providing Water to 
Surrounding Communities
Coats Indonesia has provided a tap with safe 
drinking water just outside the gates of our Pleret 
factory. This has helped many families gain access 
to clean water to use in their daily lives.
This reduces the risk of disease and enabling 
nearby residents to save money and the 
environment as they do not have to buy expensive 
bottled water.
MEXICO 
My Gift,  
Your Smile
Coats has renovated the school breakfast area at 
General Francisco López Elementary School in 
Nogales, close to one of our manufacturing plants  
in Orizaba.
Coats employees donated time to painting the walls 
after helping to design graphics for inside and 
outside of the breakfast area. We donated chairs, 
tables, a refrigerator, and a microwave for the 
benefit of the 193 students and nine teachers,  
who now have a more beautiful and dignified place  
to enjoy their meals. 
COATS CARES
BULGARIA 
Care for Adults  
and Children
Coats Bulgaria has helped many children who have 
no families with gifts of food, clothing, toys and, 
most importantly, love and care. A charity bazaar 
was held to encourage Coats staff to contribute to 
this wonderful cause. This led to further gifts such 
as handmade toys and food being provided to 
orphans. Coats Bulgaria has also donated clothes  
to care homes for the elderly. Such donations and 
gifts have helped brighten the lives of both young 
and old.
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What does Apparel division do?
Coats is the global market leader in supplying 
premium sewing thread to the Apparel industries. 
We are the trusted value-adding partner, providing 
critical supply chain components services and 
software, and our portfolio of world-class products 
and services provide exceptional value creation for 
our customers, brands and retailers. 
2024 results
Revenue of $770 million (2023: $689 million) was up 
13% on a CER basis (12% reported). As previously 
guided we saw customer inventory and buying 
patterns return to more normalised levels during the 
year despite wider macro concerns. This follows a 
prolonged period of industry destocking that 
commenced in 2022 and continued throughout the 
majority of 2023, and as such significantly impacts 
prior year comparators, particularly in the first half of 
the year. 
The Apparel business continues to benefit from 
market share gains (2024 market share c.26% vs 
c.25% in 2023). We were also able to maintain pricing, 
and owing to our proactive procurement strategy, 
leverage moderating input costs in some areas.  
We continue to be very well-positioned in our 
markets, as the global partner of choice for our 
customers, with market-leading product ranges and 
customer service, and a clear leadership position in 
innovation and sustainability. With market conditions 
normalising, our strong market position, agile supply 
chain, global presence, differentiation at scale and 
focus winning brands and manufacturers provide 
further opportunities for growth and market  
share gains.
Adjusted EBIT of $151 million (2023: $120 million) 
increased 28% versus the prior year on a CER basis. 
The adjusted EBIT margin was 220bps higher at 
19.6% on a CER basis (2023: 17.5%), which is well 
ahead of our 2024 margin target of 15-16%. This was 
driven by improving volumes, alongside continued 
savings from our strategic projects, ongoing 
procurement benefits, and some positive foreign 
exchange gains. Excluding these foreign exchange 
gains, underlying margins were around 19%.
Medium-term targets
Over the medium-term we expect Apparel to grow at a 
3-4% CAGR, ahead of underlying market growth at 
1-2% with market share gains and new organic 
adjacencies driving the outperformance. Continued 
market share gains will come from our deep customers 
relationships and our position as leader in 
sustainability, innovation and digital. We see 
opportunities in the China and India domestic markets 
with the growing middle class and opportunities to 
drive our fashion technology business Coats Digital. 
We expect the medium-term EBIT margin to be >19%.
Market conditions
The year 2024 presented significant challenges, 
characterised by shifting demand patterns and 
supply chain volatility driven by social tensions in 
key sourcing markets, disruptions in the Red Sea 
and major ports, and fluctuating consumer demand 
in primary retail markets. Despite these headwinds, 
athleisure continued its strong performance, and 
mid-market brands showed a promising recovery. 
Additionally, we observed a rebalancing of inventory 
levels across several brands and collections 
following the sharp reductions of 2023.
The competitive landscape remained intense but 
offered critical opportunities for Coats to reinforce its 
market lead and strengthen value-adding customer 
partnerships. Through strategic investments in 
sustainability, innovation, and enhanced capacities 
and capabilities, we underscored our commitment to 
setting industry benchmarks and delivering excellence.
Apparel Division
 
We continue to be very well-
positioned, as the global partner  
of choice for our customers, with 
market-leading product ranges  
and customer service, and a clear 
leadership position in innovation 
and sustainability.”
Adrian Elliott
CEO, Apparel Division
$770m
Revenue
c.100bps
Market share gains
Adrian Elliott
CEO, Apparel Division 
Joined Coats in 1988
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Coats Group plc Annual Report and Accounts 2024
People
Coats earned the prestigious Great Place To Work™ 
certifications in China, India, Pakistan, Bangladesh, 
Vietnam, and Honduras, reflecting our dedication to 
fostering inclusive, supportive, and high-performing 
workplaces.
In Shenzhen, China, a summer camp initiative was 
introduced to address childcare concerns, enabling 
employees to focus on their work with peace of mind.
Coats Indonesia and Vietnam conducted cancer 
prevention health sessions, enhancing employee 
wellness and awareness. In India, the inauguration  
of a new childcare facility further demonstrated  
our commitment to supporting employees and  
their families.
Communities
Coats continued to empower communities and 
prioritise environmental sustainability through 
impactful initiatives. In Sri Lanka, we showcased 
the talents of visually impaired women skilled 
in sewing and highlighted the versatility of our 
threads. On Earth Day, Coats teams participated 
in coastal cleanup efforts in Mount Lavinia, Sri 
Lanka, and Patenga Beach, Bangladesh, while in 
Romania, we cleaned up 16 children’s playgrounds.
In Desa Cibolang, Indonesia, staff from Bogor 
facilitated improvements in water distribution, 
reaffirming our commitment to sustainable community 
development and environmental stewardship.
Sustainability
Coats continued to make significant progress in 
advancing sustainability across its global operations 
in 2024. In our Ambas, India, manufacturing site we 
operate Zero Liquid Discharge and have increased 
our level of water recycling from 77% in 2022 to 82% 
in 2023 and 84% in 2024. In Romania, lean projects 
on waste reduction delivered an 18% reduction in 
overall waste levels, while Coats Shenzhen, China, 
successfully attained Zero Waste to Landfill.
Coats Pakistan inaugurated solar power facilities, 
including a 120 kW ground-mounted installation in 
Lahore producing over 175 MWh annually, and a 125 
kW rooftop solar energy installation at Karachi site.
All Coats factories in China achieved Zero 
Discharge of Hazardous Chemicals (ZDHC), while 
India maintained 100% compliance with ZDHC 
wastewater testing requirements for the third 
consecutive year. India also received the National 
Award for Environmental Best Practices 2024 for 
an innovative project recycling 200 tons of plastic 
waste annually. Furthermore, the India sales team 
reached a key milestone by converting 100% of 
premium tailors to Coats EcoVerde Ameto.
These accomplishments reinforce Coats’ 
unwavering commitment to sustainability and 
environmental stewardship, setting benchmarks 
for responsible industry practices.
Coats Digital
Coats Digital, our software solutions and consulting 
division, achieved outstanding results, characterised 
by significant growth, innovation, and industry 
recognition. The business reported a 21% increase 
in top-line revenue, a 50% surge in order bookings, 
and a 12% rise in Annual Recurring Revenue.
GSD Cost earned two Just Style Excellence Awards 
in the Innovation in Supply Chain and Environmental 
Technology. 
Coats Digital developed its commercial organisation 
across key geographies and further expanded its 
portfolio with the launch of three new products: FRP 
Cloud Business, FRF Business, and GSD Excellence, 
reinforcing its position as an industry leader.
Maintaining SOC 2 Type 2 and Microsoft Gold 
certifications for the third consecutive year, Coats 
Digital deepened its collaboration with Microsoft 
to develop innovative AI-powered experiences. 
The business stands well-positioned and poised 
for continued customer expansion and growth.
Apparel Division cont.
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Case Study
China Domestic Market 
CHINA  
DOMESTIC 
MARKET
HIGHLY ATTRACTIVE GROWTH MARKET
“
 
We have seen another year of strong double-
digit sales growth in our offering to the China 
domestic market – this is a significant market 
expansion opportunity for us.”
Jamie Brown, 
Managing Director, China
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Case Study
China Domestic Market cont...
In line with this trend, we have accelerated our 
investments in customer-facing systems and 
applications saving time, cost and resources for 
our customers. Examples include the addition of a 
faster sampling service to our Shop Coats website, 
a sample tracking service, order tracking and 
innovative digital marketing. 
4. Sustainability
Our customers working in the Chinese market 
are placing more emphasis on sustainability and 
traceability. 42% of our polyester sales are now 
made with recycled material. Brands have shown 
special interest in both our chemical management, 
with emphasis on restricted substances, and water 
management. Currently 79% of all water used 
in our Shenzhen dyehouses is generated from 
effluent recycled in our waste water treatment plant. 
Furthermore, we are members of the ZDHC advisory 
committee, and they have shown keen interest in 
our water intensity programme.
Our overarching Higg Index Version 3 score was 
98% in 2023 ( which is best-in-class) and for the 
2024 Higg Index, version 4, we also achieved an 
excellent result. This validates the importance that 
Coats China places on all aspects of sustainability.
Our success in 2024 is only possible because of 
effective teamwork throughout the business.  
We achieved the GPTW certificate for the fourth 
consecutive year. Looking forward we expect 
market demands for speed, technical services and 
innovation to increase. We have laid the foundations 
during 2024 to be able to take advantage of the 
more demanding market and to grow our domestic 
business further in 2025.
in automation in our operations, reducing lead-times 
and increasing productivity.
2. Higher quality and garment performance
Secondly, there is a clear trend towards higher quality 
and garment performance. Meeting this trend, our 
technical service teams are actively helping our 
customers to upgrade stitching and garment quality 
and efficiency in the active and outdoor segments. 
Furthermore, during the year we have opened two 
Brand Solution Labs, one in Shenzhen and one 
in Shanghai, spaces where customers and Coats 
can develop technical solutions, optimise stitching 
performance and resolve performance or quality issues. 
3. Digital technology adoption
The third market trend is an acceleration of digital 
technology adoption in brands and manufacturers. 
Our sales have outpaced market development, 
growing double-digit in the Apparel segment and 
doubling in the Footwear segment. These results 
have been achieved as a result of commercial and 
operational excellence in response to four 
important trends in the market. 
1. Speed to market
Firstly, speed to market and smaller garment 
production runs are increasing important as brands 
aim to reduce inventory holdings further and 
consumers look for more choice. To this end we 
have invested in more small lot and sample dyeing 
machinery in both Shanghai and Qingdao. Sample 
lot production has increased by 20% over 2023 
which reflects our commitment to garment makers 
to enable the production of prototype garments 
within days. For bulk production, we have invested 
HARNESSING  
THE GROWTH 
OPPORTUNITY
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Coats Group plc Annual Report and Accounts 2024
What does Footwear division do?
We are the trusted partner to the footwear 
industry, shaping the future of footwear for better 
performance through sustainable and innovative 
solutions. The combination of Coats, Texon and 
Rhenoflex makes us a global champion with a 
portfolio of highly engineered products with strong 
brand component specification, primarily targeted 
at the attractive athleisure, performance, and 
sports markets as well as structural components 
for premium leather handbags (lifestyle).
2024 results
Footwear revenue increased 10% to $403 million 
(2023: $368 million) on a CER and reported 
basis. The revenue growth was driven by the 
normalisation of customer buying patterns and 
inventory levels post the significant destocking 
cycle seen in 2022 and 2023 (which contributed to 
weaker comparators through most of 2024), albeit 
the recovery profile has been slightly behind that 
of the Apparel division, as previously reported. 
Our Footwear division has a focus on innovation 
and sustainability, and this year we have 
introduced new products and technologies that 
meet environmental sustainability criteria, aligned 
with market and customer needs. Our combined 
capability as Coats Footwear has accelerated this 
process. Not only do we have a broad portfolio, 
but we also have a strong focus on fast-growth 
sports and athleisure brands which attract premium 
pricing. Our longstanding partnerships with leading 
brands enables our growth to be ahead of the 
market. We have also continued to deliver share 
gains and new programme wins taking our market 
share to 29% we estimate (2023 market share 
c.27%), strengthening our position as a trusted 
partner for the footwear industry. We continue 
investing in dedicated resources to key brands and 
retailer and sustainable innovation capabilities.
Part of the strategic rationale for combining 
the three footwear businesses (Coats’ existing 
Footwear thread business, Texon and Rhenoflex), 
has been to enable cross-selling of our broad 
range of products to customers through a single 
customer-facing commercial team. We have created 
a number of opportunities for complementary 
offerings, with our customers seeing the potential 
to simplify and optimise their supply chains 
and we are pleased with the progress in 2024. 
We are now seeing the benefits of this, and 
in the period succeeded in cross-selling our 
products to two large well-known European 
sports brands, as well as a leading US brand.
Adjusted EBIT of $95 million (2023: $84 million) 
with adjusted EBIT margin was 70bps higher 
at 23.5% on a CER basis, significantly in excess 
of our 2024 margin target of >20%, driven by 
a combination of improved volumes, strong 
commercial delivery and continued benefits from 
the acquisition integration synergies. Acquisition 
integration has focused on commercial and general 
& administrative costs, as well as on procurement, 
and consequently we have delivered $22 million 
of annualised efficiency savings (significantly 
ahead of our initial guidance of $11 million savings). 
During the second half of the year we have 
commenced some consolidation of sites within 
Europe to drive improved operating efficiencies, 
and also expanded our Indonesia operations 
to provide greater capacity in this fast growing 
footwear market which is becoming increasingly 
important to our customer and supplier base.
Medium-term targets 
Over the medium-term we expect Footwear 
to grow at a 7-9% CAGR, ahead of underlying 
market growth at 4-5% with market share 
gains and organic expansion into adjacencies 
driving the outperformance. Market share 
gains will come from our position as leader in 
sustainability, innovation and digital. We see 
opportunities to cross sell to customers in legacy 
thread or structured components businesses 
and in the China domestic market. We will also 
focus on structured components and threads 
for lifestyle products. We expect the medium-
term EBIT margin to be in 24-26% range.
Footwear Division
 
2024 has been another excellent 
year integrating our Footwear 
division from three businesses into 
one combined industry leader – we 
are excited about the future growth 
and cross-selling opportunities that 
are available to us.”
Frederic Verague,
CEO, Footwear Division
$403m
Revenue
c.200bps
Market share gains
Frederic Verague
CEO, Footwear Division 
Joined Coats in 2001
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Coats Group plc Annual Report and Accounts 2024
Market conditions
As the industry rebounded in 2024, Coats emerged 
as a market leader, thanks to its expanded product 
portfolio and strong brand presence. We leveraged 
cross-selling strategies to continuously drive market 
share gains and support new developments.
Running has re-emerged as a major focus, with 
Coats’ diverse product range and unmatched global 
footprint meeting the growing demand for high-
performance products and local supply chains.
Brands increasingly demand innovative, sustainable 
solutions, and Coats leadership in R&D and 
sustainability is setting it apart from the competition. 
Coats Footwear continues to lead in value, 
innovation, sustainability, team strength, and 
footprint, consistently delivering value added 
solutions for our customers.
People
Our people are our greatest strength, and this year 
we have seen the incredible impact of having one 
unified, focused team with an entrepreneurial spirit 
driving our success. Together, we have empowered 
our employees to unlock their potential, expand 
their knowledge, and deliver groundbreaking results 
fueled by customer-inspired innovation. With a 
shared vision and a dynamic, can-do mindset, our 
team has shown how collaboration and creativity 
can spark lasting value. We have fostered a culture 
that thrives on bold ideas, engages teams across 
every level, and encourages each person to think 
like an entrepreneur – solving challenges and 
seizing opportunities with passion and ingenuity. 
Through tailored development programs, 
knowledge-sharing initiatives, and a commitment to 
innovation, we have equipped our people to excel in 
their roles and lead the charge in creating solutions 
that exceed customer expectations. 
As we look ahead, our dedication to empowering 
talent, embracing a strong culture, and delivering 
customer-focussed innovation remains stronger than 
ever. We are stronger together and together we are 
shaping the future of footwear – and redefining 
what is possible. 
Sustainability
The cornerstone of our innovation strategy is 
Sustainability, driving us to create a positive impact in 
the footwear industry. Our commitment goes beyond 
mere compliance with regulations; it embodies our 
responsibility towards the environment and future 
generations, fostering trust among our customers. 
Our primary focus on reducing the carbon footprint 
of our products is at the heart of everything we 
do. We continuously strive to provide the best 
solutions for our customers, enabling them to 
achieve their sustainability goals and minimise 
their environmental impact. In our continuous 
journey towards a greener future, we are 
progressively introducing a carbon footprint tracker 
step by step across our production processes, 
ensuring transparency and accountability. 
We are proud to announce that almost every one of 
our sites is now connected to Ecochain, enabling us 
to start monitoring and managing our environmental 
impact more effectively. Together, we are making 
significant strides in reducing our environmental 
impact and paving the way for a brighter, more 
sustainable future.
Innovation
We are relentless in our pursuit of reducing our 
environmental footprint and aim to lower the 
consumption of materials, energy, and water. This 
year, we are proud to report that over 48% of the 
raw materials used in our products are sustainable, 
being either recycled, renewable, or bio-based.  
By the end of 2024, we reached zero waste to 
landfill and greatly enhance our use of renewable 
energy sources, far surpassing statutory targets. 
Our innovation project pipeline, aligns with 
consumer trends, focusing on delivering cutting 
edge solutions. Our highly experienced R&D 
team collaborates across specialist fields to 
create innovative products and processes. 
We are excited to introduce the latest evolution 
of our favourite Rhenoprint™, now featuring 
an integrated chip solution that brings even 
more sustainable benefits and supports digital 
transformation. This innovative enhancement 
not only maintains the zero-waste production 
and reduced material usage that Rhenoprint™ 
is known for but also higher performance and 
significantly lowers CO2 emissions, making 
it an even greater and greener choice. 
Footwear Division cont.
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Annual Report and Accounts 2024
Coats Group plc 
Case Study
Investment in Indonesia
Our new Indonesian facility combines our 
existing excellence in thread production 
with cutting-edge structural components 
manufacturing, creating a one-stop-shop 
for our customers in this high growth 
footwear market.
THE FUTURE 
OF FOOTWEAR
New employees
182
Shoe capacity
300m
Sheet goods m2
10m
“
 
Our Pleret site, strategically located to be closer to our 
customers, is a hub of excellence where cutting-edge 
technology and responsible practices come together.” 
Frédéric Verague,
CEO Footwear Division
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Annual Report and Accounts 2024
Coats Group plc 
Case Study
Investment in Indonesia cont.
INNOVATION IN 
INDONESIA
our commitment to innovation and quality.  
With an emphasis on automation, we are  
ensuring our operations are efficient, scalable,  
and adaptable to future advancements.  
The reduction in our CO2 footprint that arises 
from this is aligned with the sustainable practices 
we are adopting across the Group, reflecting 
our responsible approach to the environment
The strategic selection of the location, prioritising 
sustainability, not only brings the business closer 
to its customers, thereby reducing emissions from 
transportation, but also leverages renewable 
energy technology. With solar panels meeting 
The opening of our new footwear structural 
component factory in Pleret, Indonesia, marks 
a significant milestone in our global strategy. 
This investment is designed to bolster growth 
and enhance the Group’s presence in one 
of the most rapidly developing markets for 
footwear production, aligning our production 
footprint with those of our customers.
Our new factory will create job opportunities, 
invigorating the local economy with a skilled 
and diverse workforce committed to progressive 
thinking. The facility is equipped with the latest 
technology and brand-new machinery, underscoring 
10% of the Pleret site’s structural components’ 
energy needs, we are set to reduce our carbon 
emissions by 13 kilotonnes of CO2 over 20 years.
The inauguration of this, our first Centre of 
Excellence for structural components, is a milestone 
that showcases our dedication to quality and 
customer satisfaction. It is the first of its kind in the 
world, integrating our footwear products (thread 
and structural components) under one roof.
Overall, this investment reflects a broader 
shift towards more responsible and advanced 
manufacturing in the footwear industry. It is a 
further testament to the Group’s dedication to 
progress, sustainability, and the cultivation of 
a dynamic and inclusive workplace culture.
Our new Footwear facility 
underscores our commitment 
to innovation, efficiency and 
reducing CO2 emissions.
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Coats Group plc Annual Report and Accounts 2024
What does the Performance Materials division do?
We are experts in the design and supply of a diverse 
range of technical products that serve a variety of 
strategic end use markets. Building on over 250 
years of leadership in textile engineering we 
incorporate specific design features to provide 
highly engineered solutions for our customers.  
The division operates across Personal Protection 
Equipment (PPE), Telecom & Energy and Industrials. 
PPE offers multi-hazard industrial applications for 
industrial thermal protection, firefighting and military 
wear. Telecom & Energy provides products and 
solutions for fibre optic cables and oil & gas pipeline 
sectors. Industrials has applications in a range of 
sewn products including safety-critical automotive 
airbags and seat belts, outdoor goods, household 
products like bedding and furniture, hygiene-
sensitive consumer goods like feminine hygiene 
products and tea bags.
2024 results
Performance Materials is structured as three sub-
segments: PPE (38% of 2024 divisional revenue) 
which includes both the American yarns business 
and PPE threads and fabrics, Telecom and Energy  
17% of 2024 divisional revenue) and Industrials  
(45% of 2024 divisional revenue). 
PM revenue declined 1% to $328 million (2023: $336 
million) on a CER basis (3% decline on a reported 
basis), with Personal Protection Equipment flat on a 
CER basis, Telecom & Energy decreasing by 7% 
(CER) against particularly strong comparators, and 
Industrials increasing by 1% (CER). As previously 
disclosed there have been issues in some US 
markets as well as destocking at some US 
telecommunication customers in Telecoms & Energy. 
Adjusted EBIT was 12% lower vs 2023 on a CER 
basis at $24 million (2023: $29 million). Adjusted 
EBIT margins were 7.4% (2023: 8.6% reported), 
below the 2024 margin target of 13-14%, reflecting 
the softness of our end markets (which we expect to 
continue in 2025) as well as the underutilisation of 
our footprint in Mexico. Action has been taken to 
rightsize the footprint capacity in Mexico in relation 
to the changing medium-term demand dynamics in 
the American Yarns business with the 
announcement of the closure of the Toluca facility in 
December 2024. 2024 PM EBIT margins included 
c.$6 million of under-recovered costs in relation to 
the US / Mexico plant transitions, which will no 
longer be incurred following the decision to close 
the Toluca plant. Although actions taken in Toluca 
will yield immediate benefits, the progression of the 
margin will be dependent on volume recovery in 
yarns and stabilisation of the macroeconomic 
environment in Turkey.
Medium-term targets 
Medium-term revenue growth potential is expected 
to be high single digits for PPE which reflects lower 
growth potential for North American Yarns offset by 
the higher growth PPE threads and fabrics business, 
low double-digits for Telecom & Energy (underlying 
market growth of >5% CAGR), and growth in line 
with global GDP for Industrials. The overall medium-
term revenue growth target for the division is a  
6-8% CAGR and we expect the EBIT margin to  
reach 13-15% in the medium-term through a 
combination of operational improvements, market 
recovery in Industrials and Telecom and growth 
initiatives in composite tapes for the Energy markets 
and PPE fabrics.
Performance Materials Division
 
2024 was a challenging year for most of 
the industries that we serve, however we 
have made excellent progress setting the 
business up for future success through 
accelerated growth and margin 
enhancement, when our end-markets 
return to growth.”
Pasquale Abruzzese,
CEO, Performance Materials Division
$328m
Revenue
6
New products launched
Pasquale Abruzzese
CEO, Performance Materials Division 
Joined Coats in 2025
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Coats Group plc Annual Report and Accounts 2024
Market conditions
The recovery in demand from the Personal 
Protection Equipment, Telecom and Energy sectors 
in the US did not materialise as anticipated in 2024. 
US-based customers believe that this recovery is 
merely postponed, with expectations for a 
resurgence in 2025. In the EMEA region, 
manufacturing activity remained stagnant across  
key customer industries such as automotive and 
household goods for much of the year. Conversely, 
Asia experienced robust demand driven by local 
markets in China, India, Thailand, and Indonesia. 
Although demand from home furnishings exporters 
in Vietnam, India, and Pakistan softened in the latter 
half of the year, our strategic manufacturing footprint 
across key regions enabled us to gain market share 
throughout 2024.
People
In every aspect of our business, it is the passion, 
innovation, and dedication of our people that 
continue to drive Coats’ success. Their commitment 
to excellence, engagement in creating a positive 
workplace culture, and focus on delivering 
outstanding results are the foundation of our 
achievements. With their support, we not only meet 
our goals but also build a stronger, more resilient 
organisation ready to thrive in the future.
Coats is proudly certified as a Great Place To Work™ 
across all Performance Materials sites, a testament 
to our people-centric approach and their exceptional 
contributions.
Our people are deeply committed to delivering 
excellence because they are part of an organisation 
with a purpose that goes beyond business. A key 
driver of this sense of purpose is our Coats Cares 
programme. Coats Cares not only strengthens our 
connection to the communities we serve but also 
instils a sense of pride and fulfilment among our 
employees. This programme exemplifies how 
business can drive positive change, ensuring that 
our success contributes to building stronger, more 
resilient communities.
Sustainability
We are now offering Coats EcoVerde™ Neophil in the 
automotive industry, providing a recycled polyester 
material for all new programmes.
For feminine hygiene and teabag applications, we 
are expanding our range by introducing man-made 
cellulosic fibres (MMCF), specifically Lyocell and 
Lyocell blends with bio-based PLA.
To support disassembly in mattress and workwear, 
we created EcoCycle™ HT, a high-tenacity, water-
soluble polymer thread that dissolves at 110°C after a 
30-minute wash. EcoCycle™ HT can be used in both 
needle and looper threads, or in the looper alone.
Coats is also proud to partner with Nexgen and 
Warren on biodegradable lambswool composite 
fabric for tree protectors. Using EcoRegen™ thread, 
they produced 1,000 tree shelters for the UK 
Forestry Commission, designed to compost into  
the soil.
Innovation
This year we launched the first recycled product in 
Telecoms, Coats EcoVerde™ Gral Ripcord. This eco-
friendly yarn offers a great cutting modulus and is 
proven to perform as good as original polyester, 
providing both durability and efficiency. Excellent 
cutting properties providing easy access to the 
cable core during installation or maintenance of this. 
Available with protective finish coating the following 
additional properties will be obtained: Excellent 
resistance to abrasion, proven to help reduce 
ripcord size and anti-wicking finish to prevent  
water capillarity.
Coats EcoVerde™ Connect a sustainable, high 
strength hook and loop fastener made with recycled 
pre-consumer polyamide. With its significant 
recycled polyamide content and no sacrifice in 
strength parameters or durability. It also meets 
Oeko-Tex Standard 100 Class I and GRS standards. 
Main applications are workwear, bags, outdoor 
equipment, furniture, upholstery and many more.
Gotex Melting Binder product was launched for 
Fibre Optic cable manufacturers. A multi-filament 
yarn that melts in the extrusion process, it’s ideal 
for drop cables and micro cables. This revolutionary 
binder allows the customers to take a step forward 
in offering a cable with improved installation time.  
In customer-led innovations we have provided different 
yarn solutions to the Military market including winter 
camouflage a special blend of Viscose fire resistant 
(FR), Aramid, FR Nylon, Antistatic fibre. We have 
also developed yarns for fire retardant underwear.
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Annual Report and Accounts 2024
Coats Group plc 
Case Study
Performance Materials
TELECOM AND
ENERGY SOLUTIONS
Created a global business through 
organic / inorganic expansion
$50m
Driving  
accretive  
margin  
expansion
Accelerated sales growth
+15%
“
 
Gotex is a place where enthusiasm, technical expertise, and flexibility 
come together to develop innovative engineering solutions.  
These advancements are enabling Soluforce to push the boundaries  
of composite pipe design, unlocking new possibilities for performance.” 
Robbert Laan,
R&D Manager, Soluforce
HIGH-PERFORMANCE COATED YARNS AND TAPES
“
 
The Gotex acquisition in 2016 has enabled 
us to create a market-leading global 
Telecoms and Energy business – we are 
excited about the future growth 
opportunity through innovation.”
Pradipkumar Bahukudumbi, 
Managing Director, Telecom & Energy
5 year sales 
CAGR.
sales in 2024
2017-2022 Telecoms and Energy sales growth -  
prior to recent industry destocking period
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Annual Report and Accounts 2024
Coats Group plc 
Case Study
Performance Materials cont.
COATS GOTEX
Acquisition and global expansion
In 2016, Coats acquired Gotex, a leading Spanish 
manufacturer specialising in high-performance 
coated yarns and tapes for the Telecommunications 
and Energy sectors. Since then, Gotex has 
successfully expanded its product range globally, 
generating $25 million in incremental cash flow 
while strengthening its position in these high-
growth markets. To meet rising demand, Coats 
has invested $8 million in capital expenditures 
to enhance capacity and capability. In 2022, 
Gotex opened a cutting-edge facility, tripling 
its size to 13,000 m². This expansion boosted 
production and enabled strategic investments in 
innovation, strengthening our polymer science 
technology platform to drive future growth.
Building a legacy of innovation in energy  
and telecommunications
Gotex has continued its legacy of innovation 
with advanced product offerings and expanded 
manufacturing capabilities. In 2024, Gotex 
commissioned a state-of-the-art extrusion line 
for extruded tapes, enhancing its ability to 
deliver tailored solutions for the evolving needs 
of the industry. For the Energy sector, Gotex 
Xtru™ composite tapes are transforming pipeline 
technology by enabling the shift from traditional 
steel to lightweight composite pipelines, which 
offer greater durability, faster deployment, and 
reduced lifecycle costs. Customisable with high- 
performance fibres like carbon and aramid, 
Gotex Xtru™ addresses corrosion challenges 
in oil and gas pipelines, significantly boosting 
operational efficiency and pipeline longevity.
TRIPLED CAPACITY
In the Telecommunications sector, Gotex products 
support the development of thinner, lighter fibre-
optic cables that reduce deployment costs and 
withstand environmental stresses. Notably, the 
StremX product line, validated by extensive 
customer trials, achieved a significant reduction 
in material costs by replacing traditional aramid 
strength members in aerial cables. Additionally, 
Gotex’s advanced low-melting binders 
streamline cable installation, further lowering 
deployment times and delivering significant 
cost savings for customers and end-users alike. 
Through these targeted advancements, Gotex 
continues to deliver exceptional efficiency 
and value across telecom infrastructure.
Strengthening employee engagement,  
inclusivity and social responsibility
In 2024, thanks to its impactful initiatives, Gotex 
achieved certification as a Great Place To Work™ 
for the third consecutive year, with a nearly 30% 
increase in its Trust Index. Key activities included 
introducing a “Volunteer Day Off” for community 
service, partnering with migrant youth foundations 
to offer mentorship and job opportunities and 
collaborating with disability organisations to 
enhance workplace inclusivity. Gotex also 
organised environmental volunteer efforts, 
such as a forest clean-up, supported local food 
banks, and held team-building activities to foster 
collaboration and morale. These initiatives reflect 
Gotex’s commitment to community involvement, 
employee development, and sustainability.
Positioned for future growth
With a modernised production facility, an 
expanded product portfolio, robust innovation 
initiatives and excellent customer service, 
Gotex is well-positioned to continue driving 
growth and creating value in the high-demand 
Energy and Telecommunications markets.
Gotex’s acquisition by Coats in 2016 has led to global expansion, 
innovation in Energy and Telecommunications, and enhanced 
employee engagement.
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Coats Group plc Annual Report and Accounts 2024
Key performance indicators
Performance measures of the Group’s progress
FINANCIAL KPIs
Link to strategy
Profitable 
sales growth
Transform 
the business
Value 
creation
For further details of how these financial Alternative Performance Measures are reconciled to the nearest corresponding statutory measure, see note 36 on page 175.
2022 and 2023 KPI comparators are as reported in prior years and do not include any restatement for discontinued operations.
Revenue growth
Adjusted EBIT growth 
EBIT margin
Adjusted earnings 
per share growth
Adjusted free cash flow
Leverage
Adjusted return on capital  
employed (ROCE)
    
    
    
Definition
Annual organic growth in sales 
at like-for-like exchange rates.
Definition
Annual organic growth in 
operating profit, adjusted for 
exceptional and acquisition- 
related items, at like-for-like 
exchange rates.
Definition
Adjusted EBIT as a proportion 
of revenue.
Definition
Annual growth in reported EPS 
from continuing activities, 
excluding exceptional and 
acquisition-related items.
Definition
Cash generated from 
continuing activities less capital 
expenditure, interest, tax, 
dividends to minority interests 
and other items, and excluding 
exceptional and discontinued 
items, acquisitions, and UK 
pension recovery payments.
Definition
Multiple of Net Debt (excluding 
leases) to EBITDA calculated on 
a proforma basis (includes the 
full year impact of acquisitions).
Definition
Pre-exceptional operating profit 
from continuing operations 
for the year divided by capital 
employed (property, plant 
and equipment, acquired 
intangibles, right-of-use assets 
and lease liabilities plus net 
working capital) at year-end.
2024 commentary
Return to normalised buying 
patterns in Apparel and 
Footwear following prolonged 
period of industry destocking, 
with some offset by softness in 
certain Performance Materials 
end markets.
2024 commentary
Volume growth alongside 
continued benefits from 
strategic projects and 
acquisition synergies.   
Inflationary pressures continue 
to be offset by price and 
productivity gains.
2024 commentary
Significantly ahead of 2024 
target of 17% due to out-
performance of the Apparel 
and Footwear divisions, with 
some offset from Performance 
Materials.
2024 commentary
Strong growth driven by 
operating performance, 
alongside well controlled 
interest, tax and minority 
interest charges.
2024 commentary
Very strong performance driven 
by operating performance and 
well controlled working capital.
2024 commentary
In-line with 2023 despite UK 
pensions settlement of £100m 
during the year, as underlying 
cash generation remained very 
strong. Leverage remains in the 
middle of our target range of 
1x-2x.
2024 commentary
Increase in the year driven by 
strong operating performance, 
alongside a well controlled 
asset base.
+9%
Performance
Performance
Performance
Performance
Performance
Performance
Performance
+18%
18.0%
+18%
$153m
1.5x
38%
   
2024
-14%
9%
10%
2023
2022
2024
-4%
18%
22%
2023
2022
2024
18%
14.8%
2023
2022
16.7%
2024
18%
0%
16%
2023
2022
2024
$153m
$131m
$114m
2023
2022
2024
1.5x
1.5x
2023
2022
1.4x
2024
38%
30%
31%
2023
2022
39
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Annual Report and Accounts 2024
Coats Group plc 
Key performance indicators cont.
2024 SUSTAINABILITY KPIs
Having now reached the mid-point of our 2023-2026 sustainability strategy period, we are well on track to deliver our 2026 targets across all 5 of our sustainability pillars. 
We are delighted to confirm that this is our first year of reporting ESG metrics which have undergone public external limited assurance with no qualifications on disclosed metrics.
Energy
Scope 1 & 2 emissions
Materials
Preferred material %
Water
Water recycling rate
Waste
Waste to landfill
Waste
Effluent quality
People
GPTW® certification
People
Diversity and Inclusion
Target of 22% reduction in 
Scope 1 & 2 Emissions from 
2022 baseline by 2026.
Target transition to 
60% sustainable raw 
materials by 2026.
Target to increase rate of 
water recycling by 33% from 
2022 baseline by 2026.
Target to be a zero waste to 
landfill business by 2026.
Target of 100% compliance to 
ZDHC (Zero Discharge of 
Hazardous Chemicals) standard 
by 2026.
Target of 88% employees 
covered by GPTW® certification 
by 2026.
Target of 30% females in senior 
leadership roles by 2026.
Definition
Absolute Scope 1 & 2 CO2e 
emissions in tonnes.
Definition
Percentage of in-scope raw 
materials volume purchased, 
and goods receipted which 
are non-virgin oil-based.
Definition
Percentage of water that  
is recycled.
Definition
Zero waste generated within 
our facilities being diverted to 
landfill sites.
Definition
Percentage of effluent 
that is compliant to ZDHC 
Foundational standards 
for effluent and sludge.
Definition
Percentage of employees in 
Coats units that have a Great 
Place To Work® (GPTW®) or 
equivalent certification.
Definition
Percentage of females in senior 
leadership roles.
2024 commentary
The primary driver for Scope 
1 & 2 emissions reduction 
continues to be linked to 
our transition to renewable 
electricity where further 
progress was made in 2024 
with an increase from 54% 
in 2023 to 74% in 2024. 
In 2024 we delivered an 
overall 51% Scope 1 & 2 
emissions reduction from 
our 2022 baseline.
2024 commentary
Further step progress has 
been made in 2024 in materials 
transition with our procurement, 
supply chain and commercial 
teams collaborating closely 
with upstream suppliers and 
material innovators as well as 
with our wide customer base.
Our preferred raw materials 
increased from 35% in 2023 
to 46% in 2024, up from our 
2022 baseline of 31%.
*   2022 and 2023 figures restated due to 
reclassification of fibreglass and clay materials
2024 commentary
In 2024 we have maintained 
the increased yields in water 
recycling in these facilities 
with existing water recycling 
capacity. Capital investments 
in new water recycling 
capacity planned in 2023 have 
now moved into the project 
implementation phase with 
build and commissioning 
planned through 2025.
In 2024, we delivered an 14% 
uplift in water recycling rate 
versus our 2022 baseline.
2024 commentary
Through intensified focus on 
reducing landfill in 2024, inter-
departmental collaboration, 
and heightened communication 
with suppliers and contractors 
to generate alternative waste 
solutions to landfill across the 
Coats Group, we have delivered 
an 87% reduction in waste to 
landfill from our 2022 baseline. 
2024 commentary
Continued strict focus on all 
suppliers adhering to our 
restricted substances list means 
that we restrict entry of 
hazardous chemicals into our 
value chain, thus preventing 
their discharge in our effluent 
treatment plants.
In 2024 we achieved our 
highest reported compliance 
rate of 99.85%.
2024 commentary
We were recognised as the best 
workplace in Manufacturing 
and Production by Fortune and 
GPTW. Certified across 22 
countries – covering 95% of our 
workforce and exceeding 2024 
goals. Coats was also listed as 
Best Workplace in Manufacturing 
and Production in the UK, USA, 
India, and Honduras. These 
achievements underscore Coats’ 
unique culture and steadfast 
dedication to being a global 
leader in workplace excellence. 
2024 commentary
By laying the foundation of 
Coats for Her Programme and 
consistently nurturing it, we 
have confidently hit our 2026 
target well ahead of schedule. 
The female representation 
in senior leadership roles 
rose from 23% in 2023 to 
30% in 2024, reflecting our 
commitment to advancing 
gender equity and inclusion.
51% reduction
46%
27.4%
87% reduction
99.85%
Performance
Performance
Performance
Performance
Performance
30%
Performance
95%
Performance
2024
111,155
89,712
182,018
2023
2022
2024
46%
35%
31%
2023
2022*
2024
27.4%
27.3%
24.0%
2023
2022
2024
288
1,449
2,296
2023
2022
2024
99.85%
99.83%
99.75%
2023*
2022
2024
30%
23%
19%
2023
2022
2024
95%
87%
86%
2023
2022
40
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Coats Group plc Annual Report and Accounts 2024
Non-financial information statement
The non-financial reporting regulations in section 
414CA and 414CB of the Companies Act 2006 
require the disclosure of specific information 
relating to environmental matters, the Company’s 
employees, social matters, respect for human 
rights and anti-corruption and anti-bribery 
matters, a summary of which is set out below.
Full details of all our policies on these matters 
can be found in our downloads section. We are 
Participants of the United Nations Global Compact 
(UNGC) and are committed to the ten principles  
of the Compact, covering Human Rights, Labour,  
the Environment and Anti-corruption.  
Our Sustainability Report is our formal annual 
UNGC Communication on Progress (COP) and 
contains fuller information across all of these areas.
The environment
We are highly committed to environmental 
sustainability at Coats, and this sits as a central 
focus area in our wider ESG strategy. In 2024, the 
Science Based Target initiatives approval of our 
2050 Net-Zero target signifies our commitment 
to limiting global temperature rise to 1.5oC as set 
out as a requirement for long-term environmental 
and economic sustainability under the Paris 
agreement. Decarbonising our value chain to Net-
Zero levels necessitates that we reduce our energy 
consumption, transition to renewable energy and 
transition away from raw materials derived from 
virgin oil-based products. We have commenced 
development of our detailed transition plan as 
per the Transition Plan Taskforce requirements 
and we plan to have this completed in 2025.
Through 2024 we have contracted project work 
on two sizeable water recycling projects; one in 
Indonesia and the other in Bangladesh and full build 
and commissioning of these recycling plants will be 
completed in late 2025, supporting delivery of  
our 2026 target to increase water recycling rate 
by 33% from our 2022 baseline. We recognise the 
imperative for water stewardship by conserving and 
minimising new water extraction from local water 
tables, and we are actively working to reduce our 
impact in this area.
Our key policies in this area are our Environmental 
and Climate Policies which can be found on 
our website. Fuller details of our environmental 
performance can be found in our Sustainability 
Report. The importance of our environmental 
policies and performance is described on page 43.
Both environmental non-compliance and climate 
change are considered to be principal risks and 
details of our risk evaluations and mitigating 
actions are outlined on pages 186 to 188. Our 
TCFD statement is set out in pages 182 to 198 and 
outlines our approach to responding to the risks 
and opportunities arising from climate change. 
Our greenhouse gas emissions impact across 
Scopes 1 and 2 is assessed monthly with Scope 3 
currently assessed on an annual basis. Details of 
our emissions disclosures can be seen on page 40.
Effluent quality is considered our key risk in 
environmental terms and we real-time on-line 
monitor key effluent measures in our large units, 
complemented by extensive analytical testing 
conducted by external laboratories across all 
effluent parameters every six months. Our effluent 
quality performance is shown in our KPIs section  
on page 40.
Employees
We are committed to providing a safe and respectful 
working environment for our employees and other 
stakeholders. We aim to have an organisational 
culture which promotes inclusion, diversity, belonging, 
equal opportunities, personal development and 
mutual respect. We aspire that our colleagues will 
enjoy being at work and will all contribute to creating 
an environment that is free of any discrimination, 
bullying or harassment. We seek to promote 
physical and mental wellbeing in our workplaces.
Our key people-related policies are our Key People 
Principles, our Health and Safety Policy, our Mental 
Health and Wellbeing Statement, our World-wide 
Employment Standards, our Living Wage Policy 
(see page 43), our Ethics Code (see page 43), our 
Equal Opportunities Statement and our Speak Up 
(Whistleblowing) policy (see page 43). All of these can 
be found on our website. Targets and performance 
on our people policies is described on page 40 
of this report and in our Sustainability Report.
Principal risks related to this area are the failure to 
attract, retain and develop diverse and inclusive talent 
and capability given business changes, growth in new 
areas and labour availability, and the risk of serious 
health and safety incidents. These risk evaluations 
and mitigations are described on pages 50 to 56.
Human rights
Coats is committed to protecting the Human 
Rights of our employees and those working in 
our supply chain. We fully support the United 
Nations (UN) Guiding Principles on Business and 
Human Rights in our operations, and we uphold 
the UN Declaration of Human Rights and the 
Conventions on the Rights of the Child, the core 
International Labour Organisation (ILO) Conventions 
and the Organisation for Economic Co-operation 
and Development (OECD) Guidelines for Multi-
national Enterprises and the related Due Diligence 
Guidelines for the Garment and Footwear Sector. 
Our most recent human rights risk assessment 
was carried out in 2023 and our Group Internal 
Audit (GIA) team include aspects of Human Rights 
assessment in their regular audit programmes. 
Details on the outcomes of our GIA audits in this 
area are included in our Sustainability Report on 
page 66.
GIA audits in the year confirmed a number of 
controls are operating effectively and identified 
no catastrophic risk findings. Management have 
responded to identified issues with comprehensive 
and prompt action plans and implementation of 
these in the year has reduced the identified risks.
We collaborated with our suppliers to extend our 
principles up our supply chain and perform regular 
Group Supplier Code audits on suppliers that 
are identified as being higher risk. The outcomes 
of our Group Supplier Code audits are detailed 
in our Sustainability Report on page 64.
322 supplier audits were conducted in 2024, with 
90% receiving a good rating and 10% deemed 
acceptable with some areas for improvement.
These findings were mainly around improving 
systems and processes across a range of safety, 
labour, environmental requirements and we 
are actively working with all of these suppliers 
for time bound corrective action plans.
Our Group Supplier Code has five red flags for child 
labour, forced labour, physical/mental abuse, anti-
bribery and corruption, and minimum wage as per 
country standards and we have a zero-tolerance 
approach to any violations in these five areas.
As a result of our audits, we identified that four 
suppliers failed to meet our standards and the 
supply arrangements were terminated irrevocably. 
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Our key policies on human rights are our World-
wide Employment Standards and our Group Supplier 
Code, and these can be found on our website. 
Further details on performance in this area can 
be found in our Sustainability Report and in our 
Modern Slavery Statement.
Social
We connect with broader society via our suppliers 
and their workforce, our interactions with local 
communities and neighbours, and through the 
products we offer to our customers and consumers.
Our Group Supplier Code, described on the  
previous page, describes the employment  
standards we expect from our upstream suppliers.  
There is a risk of non-compliance and reputational 
damage here, and the Group Supplier Code audit 
programme helps us to mitigate this risk.
In 2024, we continued to deliver on our Coats 
Cares programme which sets the foundations 
for our community engagement approach and 
enables our business units to engage with their 
communicates on issues that are deemed important 
at a local level. More details on Coats Cares can 
be found on page 25 of this report as well as in 
the People section of our Sustainability Report.
Our Restricted Substances List (RSL) programme 
ensures that our products do not present any risk 
to our customers and consumers and is actively 
managed with annual updates. Application of our 
RSL is a core part of our Group Supplier Code 
management as all inputs into our processes 
have to be certified as compliant to our RSL 
apart from a small number of industrial products 
with performance driven exceptions that are 
approved at senior management level.
Anti-bribery and anti-corruption
Coats is committed to the highest levels of 
ethical behaviour in all of our operations and 
has a zero-tolerance approach to any form of 
bribery or corruption or unethical behaviour in 
our operations and wider supply chains. We have 
a rolling programme of raising awareness across 
our business under the ‘Doing the Right Thing’ 
banner and this is underpinned by biennial training 
for all key employees (approx. 5,000 in total) in 
anti-bribery and anti-corruption, competition law 
and ethical behaviour. We have a whistleblowing 
system, ‘Speak Up’, that has internal and external 
reporting options and where every issue raised 
is fully investigated. The outcomes from our 
whistleblowing process are detailed on page 107.
Our key policies in this area are our Anti-bribery 
and Anti-Corruption Policy, our Competition Law 
Policy, our Ethics code, our Gifts and Entertainment 
Policy, our Speak Up – Whistleblowing Policy 
and our Undue Influence Policy. All of these 
policies can be found on our website. The main 
risk we are exposed to in this area is of non-
compliance from our upstream supply chain 
and the reputational impact that this could have 
on us. This is managed proactively through 
our Group Supplier Code and associated 
Supplier audit programme described earlier.
Other matters
In addition, information required in relation to 
the Company’s business model is described 
on page 14. Principal risks including those that 
relate to matters above are included on pages 
50 to 56. Key non-financial KPIs are shown on 
page 40 where we describe 2024 performance 
against our 2026 sustainability targets.
Non-financial information statement cont.
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POLICY
DESCRIPTION
People
Key People Principles
This statement identifies the range of policies and procedures we have in place 
to manage our key people-related issues.
Health and Safety Policy
This policy outlines our commitment and actions for the prevention of injury and 
ill health and ensuring health and safety excellence across our business.
Ethics Code
The purpose of the Ethics Code is to ensure that employees across Coats  
have a clear understanding of the principles and ethical values that the 
Company wants to uphold. It applies to all employees in all Coats Group 
companies globally.
Speak Up – Whistleblowing Policy
The policy outlines the reasons for maintaining high standards of ethical and 
legal business conduct and describes the procedures for reporting acts which 
are thought to contravene these standards. Also outlined are the actions to be 
taken by the Company.
Global Employment Standards
As a global employer, Coats strives to follow ethical employment standards  
and believes the human rights of its employees are an absolute and universal 
requirement. Coats subscribes to the United Nations Universal Declaration of 
Human Rights and the Convention of the Rights of the Child.
Equal Opportunities Statement
The Company supports equal opportunities in employment and considers it to 
be an integral part of our employee relations policy.
Modern Slavery Statement 
(including a statement on 
transparency in supply chains)
This statement has been prepared for the year ending 31 December 2023 and is 
in accordance with the requirements of the UK Modern Slavery Act 2015 and the 
California Transparency in Supply Chains Act of 2010. Furthermore, we support 
the United Nations Guiding Principles on Business and Human Rights 
throughout all our operations.
Living Wage Policy
At Coats people are at the heart of what we do. We aim to ensure that all 
employees receive a wage that is sufficient to afford a decent standard of living 
for the employee and their family. We are committed to paying a living wage to 
all of our employees.
Governance
Anti-bribery and  
Anti-corruption Policy
This policy outlines the control of actual and suspected corruption and bribery 
within Coats, and the processes to be followed in the event of actual or 
suspected instances of corruption or bribery being discovered.
Gifts and Entertainment Policy
This policy sets forth the rules related to employees accepting and offering gifts, 
entertainment, hospitality and meals from and to current customers, suppliers, 
joint venture partners, brand representatives and others conducting (or 
proposing to conduct) business, directly or indirectly, with Coats.
POLICY
DESCRIPTION
Charitable Donations Policy
The purpose of this policy is to make sure that all Coats’ charitable donations 
and sponsorships are aligned with our approach to ‘Coats Cares’, our Code of 
Ethics, our Anti-Bribery and Anti-Corruption Policy, our HR policies, as well as 
our wider Corporate Responsibility (CR) approach.
Competition Law Policy
This policy supports Coats’ commitment to observing and complying with all 
applicable competition laws, rules and regulations wherever it operates around 
the world while acting with the highest ethical standards, in an open and  
honest way.
Suppliers
Supplier Code
The Group Supplier Code outlines our expectations required of suppliers and 
covers labour practices, environmental management, responsible sourcing of 
materials and products, and business conduct.
Restricted Substances List
As part of Coats Product Safety programme, we require that all Coats’ suppliers 
of raw materials, dyes, chemicals and packaging materials meet the highest 
standards appropriate for their end-use. A comprehensive list of restricted 
chemicals is revised and reissued to all of our material suppliers every year.
Conflict Minerals Policy
Coats is committed to the responsible sourcing of all raw materials and 
purchased goods and we continually review our approach to ethical and 
sustainable supply chain management. This policy refers specifically to our 
approach to avoiding ‘Conflict Minerals’ entering our supply chain and 
supplements our wider supply chain management standards.
Environment
Environmental Policy
We take our responsibility to the environment very seriously and this policy lays 
out our approach. Coats senior management has defined objectives and targets 
to ensure that we deliver on this policy and additional details on progress can 
be found in our Sustainability Report.
Climate Change Policy
We are committed to doing what we can to limit the impact of climate change 
and will always follow the scientific consensus on future impacts in assessing 
how to address this challenge.
Our policies
Non-financial information statement cont.
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Stakeholder engagement
Cultivating and maintaining constructive relationships with our stakeholders is part of our 
culture. Effective communication in these relationships is critical to the fulfilment of our 
purpose and essential to the delivery of our long-term strategic ambitions.
On the following pages we summarise who our key stakeholders are, our approach in 2024 and the insights 
we gained. The Board’s engagement with stakeholders is both direct and via management reporting to the 
Board on stakeholder engagement, the importance of which is embedded throughout our business. In our 
section 172 statement, set out on pages 47 to 49, you can read about how the Board and management 
considered certain insights gained from our stakeholders to make informed decisions that consider and 
address any differing needs and priorities, while ensuring the appropriate focus on strategic and cultural 
outcomes. Read more about why we consider these stakeholder groups to be important to the delivery of 
our strategy in our business model section on page 14.
CUSTOMERS
Our global footprint provides unrivalled 
access to markets and customers. We 
want to work together proactively with our 
customers to deliver additional value.
Our approach in 2024
During the annual away week visit to China, the 
Board met with and toured the facilities of a key 
customer. They also received a detailed overview of 
the business environment and market in China (you 
can read more about the away week on page 73).  
At the annual strategy day, the Board and 
management discussed deep dives into the Indian 
and Indonesian markets, and considered insights 
into customer behaviours, opportunities and 
priorities. The Board also received a detailed review 
of key customers on a divisional basis as part of the 
recurring annual deep dives into the Apparel, 
Footwear and Performance Materials divisions as 
presented by their respective leadership teams. 
In addition, the Executive Directors and 
management provided regular business updates at 
Board meetings throughout the year. This enabled 
us to quickly identify changing consumer trends 
and, where appropriate, respond to these. David 
Paja also shared his insights following his 
interactions during his induction. The Board were 
briefed on the developments in ShopCoats and 
Tech Connect and how these had improved the 
customer experience. 
What we believe matters to customers
Our engagements reveal that our customers continue 
to be attracted and retained by our ability to offer and 
OUR STAKEHOLDERS
develop innovative and sustainable solutions using 
our technology.
They appreciate our ability to manage delivery times 
during periods of supply disruption and a stable 
supply chain remains a priority. Our customers 
continue to seek competitive pricing combined with 
exceptional service and support levels. Enabling 
quicker access to information and facilitating greater 
efficiency in ordering increases effectiveness for our 
customers and should continue to be a focus. 
Ensuring that our footprint and asset utilisation 
remains optimised, as discussed at the annual 
strategy day, helps us to position ourselves to meet 
the increasing demands of our customers.
SHAREHOLDERS
Coats maintains and values regular 
dialogue with shareholders throughout 
the year, so that they can more accurately 
assess our value and the opportunities and 
risks of investing in our business.
Our approach in 2024
There is regular engagement between our investors 
and the Group CEO and the Group Chief Financial 
Officer through the Investor Relations schedule of 
events, which includes conferences and roadshows. 
David Paja also met with a number of key investors as 
part of his induction programme. In September 2024,  
a group of our shareholders, analysts, bankers, 
advisors and brokers visited our Footwear operations 
in Germany and their feedback was shared with the 
Board. The Senior Independent Director consulted 
with key investors regarding the extension of the 
EMPLOYEES
ENVIRONMENT
CUSTOMERS
COMMUNITIES
SHAREHOLDERS
SUPPLIERS
 See page 45
 See page 45
 See page 44
 See page 46
 See page 44
 See page 46
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Chair’s tenure. Further details about this process are 
set out in the Nomination Committee report on page 
85. The Board all attended the AGM held in May and 
were available to answer questions from investors. 
An Investor Relations update is provided at each 
Board meeting, which provides details of investor 
trends and feedback as well as details of planned 
engagements. In 2024 there were various Board 
sessions provided by the Company’s brokers and 
advisors detailing how the Company is perceived 
and valued and what investors were looking for  
the Company to do next. Additionally, the Board 
carefully considered the progressive dividend policy 
when deliberating in relation to the interim and final 
dividend levels, noting the importance of returns  
to shareholders.
What we believe matters to shareholders
Investors reacted positively to our Group CEO 
succession process and to the final de-risking  
of our UK pension scheme. Our strong corporate 
governance, as highlighted in our performance  
in ESG surveys, continues to be important as is  
the focus on shareholder returns through our 
progressive dividend policy. 
Regular conversations with both existing and 
prospective investors allow the Company to share 
timely information on key strategic and operational 
matters and gain insights into how these align with 
investor expectations. Investors appreciated being 
consulted on our Chair succession plan as well as 
having the opportunity to meet David Paja when  
he became Group CEO. Offering site visits allows 
investors to directly experience our operations  
and better understand our value proposition and 
business approach. Executive remuneration remains 
an area of focus for many investors.
Investors continue to value our sustainability and 
DEI-related ambitions, recognising the importance 
of our culture in achieving our goals. The continued 
focus on overall cost efficiency and on footprint 
optimisation have been positively received.
EMPLOYEES
Our 16,000+ permanent employees are 
at the heart of making our business a 
success and we recognise that listening to 
and engaging with our people is essential to 
our continued success.
Our approach in 2024
David Paja visited 25 of our sites across 13 countries 
as part of his induction, interacting directly with 
employees at every level of the business. Fran 
Philip conducted a successful programme of 
engagement in her role as Designated Non-
Executive Director for Workforce Engagement 
including meeting directly with groups of employees 
and joining global diversity calls. You can read 
more about Fran’s work during 2024 on page 74. 
During the visit to China in October 2024, the 
Board toured several of our local facilities and 
attended various events with local employees 
including the 20th anniversary celebration of 
our Shenzhen site as well as other presentations 
and social events (you can read more on page 
73. Board members also had the opportunity to 
participate in the Global Leadership Conference 
and interacted with the other attendees during all 
of the working sessions and social events as well 
as at the factory tour. A number of employees have 
also presented to the Board at Board meetings in 
2024 covering topics such as the divisional deep 
dives and the various areas covered at our annual 
strategy day, including sustainability and talent. 
Ensuring that our desired culture has been 
embedded into our divisions has continued to 
be a priority for the Board and it has accordingly 
continued to monitor metrics relating to culture 
and diversity at every Board meeting. At both the 
Board and the Nomination Committee, there were 
discussions regarding succession and development 
opportunities and employee insights were used 
to inform talent planning. The Remuneration 
Committee conducted its annual review of 
remuneration levels of all employees. The Chief HR 
Officer provided various updates throughout the 
year across various topics, including the insights 
from the annual Your Voice Matters survey, as well 
as providing updates on the Coats for All and Coats 
for Her initiatives. Regular reviews of the results of 
Great Place To Work® surveys were also presented. 
People updates continued to be discussed as part 
of the divisional deep dives.
Additionally, the Board was updated on the action 
taken to provide support and keep our people safe 
when natural disasters impacted our sites. 
What we believe matters to employees
Our culture, characterised by our employees’ 
collaborative and ‘can do’ attitude, is key to attracting 
new, and retaining existing, talent. Employees continue 
to value the prioritisation of health and safety and well-
being, the latter as part of Coats Cares. The growing 
impact of DEI-initiatives as part of the Coats for All and 
Coats for Her programmes continue to be appreciated 
with employees showing enthusiasm for even greater 
development. Our employees remain passionate 
about our sustainability agenda and are committed 
to continuing to support our ambitions in this area. 
Employees valued the communication and 
programme of engagement that accompanied 
the Group CEO succession process, appreciating 
the opportunity to provide direct feedback to the 
outgoing and incoming Group CEO. 
The increased focus on simplification and 
standardisation, which has followed the move to the 
divisional structures, has been welcomed but there 
is a desire for further progress in this area. 
ENVIRONMENT
Coats is working proactively with 
customers and suppliers to help them 
improve the sustainability of their products, 
and to minimise the environmental impact of 
our industry.
Our approach in 2024
Environmental metrics are presented at every 
Board meeting and progress is tracked across 
key performance measures. Communication on 
environmental issues is tracked and escalated as 
appropriate within the Group, with relevant updates 
being provided to the Board on key environmental 
issues. The annual divisional deep dives 
presented at the Board consider environmental 
and sustainability performance and innovation.
There was a detailed discussion of our sustainability 
strategy at the annual strategy day. This included 
the Board considering the perspectives of all 
our stakeholders, our progress on our previously 
communicated 2050, 2030 and 2026 targets  
and the considerations for both our energy and  
materials transition journeys  
Stakeholder engagement cont.
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(read more in our Sustainability Report online  
(www.coats.com/sustainability)). Additionally,  
the impact of current operations on our 
environmental footprint and how these could be 
further reduced formed part of the discussion 
relating to asset utilisation.
The Sustainability Committee composition was 
reviewed and expanded to include the divisional 
CEOs and Group Sustainability Director. It met twice 
and considered inputs from a range of stakeholders 
as well as monitoring current performance against 
targets and reviewed the detailed plans to achieve 
these. Updates were also provided on the Group’s 
preparations to meet the upcoming Corporate 
Sustainability Reporting Directive (CSRD) 
requirements and, in particular, on the progress 
relating to the CSRD double materiality assessment, 
which will determine the material topics on which 
Coats will have to make future disclosures.  
The Audit and Risk Committee (ARC) continued its 
review of sustainability reporting which resulted  
in the publication of assurance on this data in this 
Annual Report. You can read more about this 
process in the ARC report on page 77.
What we believe matters to the environment
Helping to make a better more sustainable world is 
part of our purpose. Our engagements with all of 
our stakeholders confirm that sustainability, and the 
need to further reduce our environmental impact, 
continues to be a key priority. Our results in ESG 
surveys show our considerable progress but also 
confirm that there is more to do. The Board will 
continue to ensure strategic planning is aligned  
to meeting our environmental goals.
A key focus of the Board and its Committees  
has been the upcoming changes to legislation, 
regulation and best corporate governance practices 
in 2024. The global regulatory and reporting 
environment continues to develop globally and  
at pace. Our commitment to sustainability and 
corporate responsibility has prepared us well for 
these forthcoming changes but we will have to 
continue to be proactive and ambitious to meet 
increased stakeholder expectations.
COMMUNITIES
We operate in over 50 countries 
across six continents. By empowering 
people and championing inclusion and 
diversity, we can help build thriving 
communities and strengthen our business.
Our approach in 2024
The Board and the Nomination Committee discussed 
the various initiatives and development opportunities 
taking place as a result of Coats for All, Coats for Her 
and Coats Cares programmes at various times 
throughout 2024. The annual divisional deep dives 
included a variety of sustainability and people-related 
topics, including DEI matters, and there were regular 
reports on macroeconomic and sociopolitical events 
provided to the Board. The Board also reviewed our 
Health and Safety dashboard at every Board meeting, 
which includes metrics relating to commuting 
incidents and also sets out our commuter safety 
initiatives including training requirements. 
As part of the visit to China in October 2024, the 
Board were able to directly interact with people living 
in the areas in which we operate as part of their visits 
as well as hearing about the effect that our 
operations have locally in terms of opportunity 
and investment. 
In 2024, the Board continued to assess the impact  
of the changes to the location of our operations 
when considering consolidation and closure 
proposals. More details of our activities can be 
found in our Sustainability Report online  
(www.coats.com/sustainability). 
What we believe matters to communities
We understand the impact of our business on local 
communities and economies, both for our workforce 
and those in the areas in which we operate. People 
continue to want access to skills development and 
employment, in an organisation that promotes DEI and 
is committed to doing business in the right way. 
Communities continue to demand that environmental 
impact continues to be meaningfully reduced and 
that resources are used responsibly.
SUPPLIERS
Our suppliers do not just supply goods 
and services to us. They are true 
partners throughout our processes and 
aligned to our requirements on compliance, 
quality, sustainability and innovation ethos.
Our approach in 2024
The Board considered insights from suppliers as 
part of the annual divisional deep dives, which 
included consideration of supply chain issues and 
trends. Discussions relating to India and Indonesia 
were held as part of the annual strategy day and 
there were insights into supply trends and potential 
future risks and opportunities. These themes were 
also considered as part of the various discussions 
held by the Board during the visit to China. 
The Board considered the risk of ‘supplier non-
performance, unavailability and/or price increases  
of raw materials, labour and freight and/or logistical 
challenges’ and temporarily reclassified the risk 
trend as increasing in July 2024 as a result of the 
ongoing Red Sea-related disruptions. Following a 
period during which the situation stabilised, and also 
as a result of freight suppliers increasing their freight 
capacity in response to the Red Sea-related 
challenges, the Board then decreased the risk trend 
to stable in December 2024. The Board reviewed all 
key supply contracts in line with the Group’s 
Delegated Authorities Policy.
Supplier-related items remained a focus for the ARC 
with the annual review of supplier payment terms, 
and regular reporting on compliance and training 
relating to the Group Supplier Code. The ARC 
shared these insights with the full Board. You can 
read more about the ARC’s work in this area on 
page 78.
What we believe matters to suppliers
Reliable and ethical supply chains are essential  
for serving our customers and maximising overall 
shareholder value. We believe that suppliers value 
our mutually beneficial relationships, and continue  
to prioritise fair contracts and payment terms.
Sustainability credentials and our continued focus 
on innovation both attract new, and work to retain 
existing, suppliers. Our Group Supplier Code 
provides clarity on our expectations of suppliers, 
and what will happen if these expectations are not 
met. As global uncertainty continues, supply chain 
management and strong relationships continue  
to be critical.
Stakeholder engagement cont.
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Section 172 of the Companies Act 2006 
requires the Directors to promote the success 
of the Company for the benefit of the members 
as a whole, having regard to the interests of 
stakeholders in their decision making (S172 
Factors). When making decisions, the Board 
recognises the importance of considering the 
needs and priorities of our stakeholders to  
help determine what is most likely to drive 
sustainable value creation over the longer term.
The ways that the Board has engaged with our six  
groups of stakeholders are outlined on pages 44 to 
46, including what was learned as a result of this 
engagement. The Board understands the value of taking 
into account the views of stakeholders and the impact  
of the Company’s activities on local communities,  
the environment and the Group’s reputation.
Our purpose, strategy and culture
–	Coats’ purpose – to connect talent, textiles and 
technology to make a better and more sustainable 
world – shows our stakeholders are central to our 
decision making. 
–	The Board is responsible for setting and overseeing 
the Group’s culture, and for the Company’s purpose, 
strategy and values. The Board’s knowledge and 
understanding of the Company’s stakeholders, and 
their respective priorities and interests, is central to 
discharging these responsibilities, and supports key 
aspects of its decision‑making.
–	The Board believes that our culture, values and 
high standards of business conduct all contribute 
to long-term value creation for our stakeholders. 
The importance of maintaining our reputation for 
‘doing the right thing’ is well understood.
–	The Board, together with the Audit and Risk 
Committee, monitors the critical areas of governance 
and compliance, including considering these  
areas in relation to our broader supply chain,  
and discusses interventions with management 
where required.
Balancing the needs and priorities of our stakeholders
–	The various interests of stakeholders are 
considered in the business decisions we make  
at all levels of the organisation. 
–	At times, the Board has to make decisions based 
on balancing the differing interests of, or impacts 
on, our stakeholders, while ensuring they are in 
the best interests of the Group. The Board is able 
to probe, challenge and debate the various 
stakeholder-related factors, to ensure any differing 
views and outcomes are taken into account.
–	The diversity of skills, knowledge and experience 
amongst our Board assists debate and results in 
the provision of strategic guidance and informed 
decision-making that considers the various needs 
of our stakeholders.
–	Our leadership is appropriately contactable at  
and in between meetings to allow the timely 
provision of sensitive information and feedback 
when required.
The right inputs – Board information and monitoring 
–	Board papers identify the key stakeholder groups 
for matters under discussion. 
–	Assurance is sought as and when required.
–	There are consistent Group-wide governance  
and reporting structures.
–	Appropriately timed updates on actions and 
implementation are tracked and provided to the 
Board to ensure timely delivery or adjustment  
in the event that priorities or needs change. 
Specific examples of Board decision making, including how stakeholders were considered and further 
examples of how their input contributed to the outcomes, are shown on pages 44 to 46. Other information 
considered by the Board during 2024 relating to the S172 Factors is set out below:
Section 172 statement
S172 Factor
Relevant disclosures
(a)	The likely 
consequences  
of any decision  
in the long-term.
–	 Chair’s statement (pages 5-6)
–	 Group CEO’s statement (pages 7-8)
–	 Strategy (page 13)
–	 Business model (page 14)
–	 Sustainability (pages 15-16 and TCFD disclosures (pages 182-198)
–	 Principal risks and uncertainties (pages 50-56)
–	 Long-term viability statement (page 57)
(b) The interests of  
the Company’s 
employees.
–	 People and culture (pages 21-26)
–	 Business model (page 14)
–	 Division updates (pages 27-38)
–	 Key performance indicators (GPTW® certification, page 40)
–	 Stakeholder engagement (page 45)
–	 The Board and culture (page 74)
(c) The need to foster the 
Company’s business 
relationships with 
suppliers, customers 
and others.
–	 Business model (pages 14)
–	 Division updates (pages 27-38)
–	 Stakeholder engagement (pages 44-46)
–	 Principal risks and uncertainties (pages 50-56)
–	 Operating review (pages 58-60)
(d) The impact of the 
Company’s operations 
on the community and 
the environment.
–	 Stakeholder engagement (pages 45-46)
–	 Sustainability (pages 15-16)
–	 Principal risks and uncertainties (pages 50-56)
–	 Directors’ report (SECR disclosures, page 108-109)
–	 TCFD disclosures (pages 182-198)
(e) The desirability of the 
Company maintaining 
a reputation for high 
standards of business 
conduct.
–	 People and culture (pages 23-26)
–	 Non-financial information statement (pages 41-43)
–	 Principal risks and uncertainties (pages 50-56)
–	 Audit and Risk Committee Report (pages 77-82)
–	 Whistleblowing (page 107)
(f) The need to act fairly 
as between members 
of the Company.
–	 Stakeholder engagement (pages 44-45)
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Coats Group plc Annual Report and Accounts 2024
Examples of Board decision-making during the year and S172 Factors considered
Stakeholder considerations
Pensions
Continuing the progress achieved in relation to the UK Pension Scheme (Scheme) 
in recent years, in September 2024 the Board announced its decision to provide up 
to c.£100 million ($128 million) of additional funding from the Group to facilitate the 
purchase of a c.£1.3 billion ($1.7 billion) bulk annuity policy by the UK Pension Trustee 
(buy-in). As a result of the buy-in, all the financial and demographic risks relating to the 
Scheme’s liabilities are now fully hedged, with this new bulk annuity policy, along with 
the previous policy purchased, paying the Scheme a regular stream of income that 
matches its pension payments to all members. 
EMPLOYEES
SHAREHOLDERS
The Board considered the significant benefits of de-risking the Scheme for both current and future pensioners 
and removing volatility and uncertainty for our investors.
The Board also noted that permanent cessation of deficit repair contributions would result in a c.£30 million 
per annum benefit. The free cash flow generation had been well received by investors, both in terms of the 
ability of the Company to reinvest those cash flows to compound growth or provide additional returns to 
shareholders. The Board considered investor feedback in relation to previous pension actions.
Operational footprint changes in 2024 (changes in manufacturing locations)
The Board continued to consider the footprint of the organisation to ensure that this 
remained optimised to meet the ongoing needs of the Group and its stakeholders. In 
particular, during 2024, the Board approved the relocation of production of certain of 
the Group’s products to move these closer to customers and to maximise utilisation 
of existing facilities. This included optimising the Performance Materials footprint in 
North America to align to latest industry demand trends, the consolidation of Footwear 
sites in Europe, and the expansion of our Indonesian operations to align with Footwear 
customer growth.
COMMUNITIES
CUSTOMERS
EMPLOYEES
ENVIRONMENT
SHAREHOLDERS
When considering the opportunities and challenges arising from further optimising the footprint of the 
business, Directors recognised Coats’ strategic aim to bring operations closer to customers and the potential 
impacts on new and existing suppliers. The Board also considers the insights provided from meetings and 
engagements with customers and suppliers, as attended by Directors or presented in the divisional deep 
dives, when making decisions.
The Board is aware that changing the location of where we do business can have significant impacts on the 
employees and the communities in which we operate, especially when decisions result in us exiting an area 
and the impact on that local economy. Accordingly, the Board considered the wide-ranging impacts resulting 
from the closures and relocations, including discussions relating to the closure of the Performance Materials 
site in Toluca, as well as the potential effects on the local economy and, in particular, any reduction in local 
opportunity and relocation possibilities.
Moving operations closer to customers can result in environmental benefits as the supply chain is shortened 
and this was considered as a contributor to our ambitious sustainability targets. The Board continues to focus 
on having the right range of product solutions manufactured in the right way in the right location. These were 
considered by the Board, for example, in relation to the location of the new Footwear structural component 
factory in Indonesia, which was strategically located to be close to customers.
The Board remained mindful of the positive reception from investors to the range of self-help initiatives 
undertaken to help the Group continue to manage it cost base during the continued period of  
economic uncertainty.
Section 172 statement cont.
BOARD DECISION-MAKING DURING THE YEAR
SUPPLIERS
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Coats Group plc Annual Report and Accounts 2024
Examples of Board decision-making during the year and S172 Factors considered
Stakeholder considerations
Financial considerations including dividend payments
The Board approved the 2024 Group’s budget, which sets the allocation of capital 
to deliver our strategy. The Board considered the current global economic and 
geopolitical circumstances and the Group’s short to medium-term priorities. During 
the year, there were also detailed considerations of the level of both the interim and 
final dividend based on a full assessment of the Group’s position considering, amongst 
other factors, pensions de-risking and the Group’s market share gains. The Board also 
considered the refinancing of the Revolving Credit Facility agreement and the issuance 
of an additional $250million USPP.
SHAREHOLDERS
The Board considered the wider interests of its stakeholders, including customers, employees, and 
suppliers when setting the annual budget to ensure these remained appropriately balanced with the 
need to ensure continued delivery of growth and the protection of shareholders’ interests. The Board 
understands the importance of regular returns to shareholders and the need for equitable treatment of 
our shareholders. Feedback received regarding the Group’s progressive dividend policy supports this. 
Board and leadership changes 
A key area of Board focus during the year related to the various succession-related 
activities that were planned and implemented during the period under review. 
The Nomination Committee and Board acted to identify and appoint David Paja as  
an Executive Director and Group CEO designate to succeed Rajiv Sharma, who  
stepped down from the Board as part of a mutually agreed succession process.  
A comprehensive selection process, supported by external advisors, was undertaken 
and resulted in the announcement of the outcome on 30 May 2024, and David 
succeeded Rajiv as Group CEO on 1 October 2024. 
On 7 January 2025, the Company announced the appointment of Hannah Nichols as  
an Executive Director and Group Chief Financial Officer designate with effect from  
24 April 2025. Hannah will succeed Jackie Callaway as Group Chief Financial Officer  
at the conclusion of the 2025 AGM, at which time Jackie will step down from the Board 
as part of a mutually agreed transition process.
The Board provided input into the process that led to the appointment of Pasquale 
Abruzzese as CEO, Performance Materials Division and Group Chief Operations 
Officer with effect from 13 January 2025 following Soundar Rajan’s retirement from 
the business on 31 December 2024. During the year, the Board also approved the 
appointment of Adrian Elliott as Group Chief Commercial Officer with effect from  
1 July 2024. This is in addition to Adrian’s role as CEO, Apparel Division.
EMPLOYEES
Identifying the correct individuals to act as our leaders, and to complement the overall composition of our 
leadership, is essential to promote the success of the Company and maintain effective relationships with 
our stakeholders, as well as maintaining our reputation for doing the right thing. In both Executive Director 
appointment processes and in relation to the changes to the composition of the GET, consideration was given 
to the gender and ethnic diversity of our leadership team.
The Board considered David Paja’s proven track record in scaling new technologies and delivering profitable 
growth, as well as his extensive leadership experience across a number of complex and fast-changing 
industries, managing operations in the UK and globally, leadership skills and relevant industry experience.  
The Board considered how these would assist the delivery of the Company’s strategic ambitions and the fit 
with stakeholder expectations. 
The Board considered Hannah Nichols’s extensive financial expertise, considerable international experience 
and track record of driving transformational change, when considering stakeholder expectations for the 
Group’s next Chief Financial Officer. 
After careful consideration, the Board concluded that the appointment of David as Group CEO and the 
appointment of Hannah Nichols as Group Chief Financial Officer designate, and their appointments as 
Executive Directors, would be in the best interests of the Company, its shareholders and wider stakeholders.
When considering the composition of the GET, the Board considers stakeholder expectations and the updates 
provided in the divisional deep dives to inform their view of the future skillset required by the Group.
Section 172 statement cont.
SHAREHOLDERS
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Coats Group plc Annual Report and Accounts 2024
Principal risks and uncertainties
Effective and pragmatic risk management drives better decisions, protects our business  
and supports our growth.
Risk framework and governance
We strive to ensure that our risk management procedures remain holistic and integrated to support the 
making of risk-informed decisions that benefit our stakeholders as a whole. While our processes are well 
established and embedded, we embrace a culture of continuous improvement and regularly review our risk 
management-related ways of working to ensure these remain robust and fit for purpose in the dynamic and 
ever-changing business environment in which we operate.
We employ a ‘three lines of defence’ model to provide a simple and effective way to enhance our risk and 
internal controls management processes, and ensure that responsibilities are well defined and supported by 
clear reporting processes and delegated authorities. Consistent with this, the Group operates a top‑down, 
bottom‑up approach to risk management. A summary of risk management responsibilities across the Group 
is set out in the diagram below. 
The Board retains overall responsibility for 
determining the nature and scope of the Company’s 
principal, key and emerging risks, the extent of the 
Group’s risk tolerance in the pursuit of its strategic 
ambitions, and for monitoring and reviewing 
the effectiveness of the Group’s systems of risk 
management and internal controls, including the 
activities undertaken by the three lines of defence. 
The Audit and Risk Committee (ARC) monitors, 
oversees and reviews the effectiveness of the risk 
management and internal control systems and 
processes implemented across the Group and has 
confirmed to the Board that these all operated 
effectively during 2024. A description of the ARC’s 
activities relating to risk management and internal 
controls during the year can be found on page 80. 
The Group Executive Team (GET) is responsible  
for day-to-day monitoring, management and,  
where appropriate, mitigation of key risks that 
impact the business and receives regular updates 
on these from the divisions, risk champions in the 
business and Group Internal Audit (GIA).  
The Group Risk Management Committee (GRMC) 
comprises of all members of the GET and meets 
regularly, facilitating timely and responsive 
risk assessment and agile action taking.
The divisional management teams are responsible 
for monitoring division‑level risk and implementing 
and maintaining an effective risk and control 
environment as part of day‑to‑day operations, in line 
with the Group risk management framework and 
internal control systems determined by the Board. 
Our risk framework is based around five categories 
of principal risks (strategic, external, climate, 
operational, and legacy), as well as key and 
emerging risks. We use internal and external 
data to monitor our risks and make appropriate 
interventions. GIA embeds the relevant Group risks 
in their audit process, for instance, compliance with 
anti-bribery and corruption requirements, the risk 
of internal fraud, sustainability-related risks, health 
and safety-related processes, and IT/cyber security 
controls. GIA then reports on these to management 
and the ARC. GIA also reports to the ARC on the 
results of the semi-annual risk questionnaire, which 
covers topics appropriately aligned to principal 
and key risks, to allow the ARC to consider any 
exceptions or risks arising from operations. 
You can read more about the information 
provided by GIA to the ARC on pages 80-81. 
Risk registers, tracking our identified risks, are 
maintained at unit, divisional and Group level. 
GIA reviews the Group Risk Register and unit 
and divisional risk registers regularly throughout 
the year. These reviews include an assessment 
of the risk management practices in divisions 
such as the frequency and adequacy of local risk 
management committee discussions, the risks 
identified and discussed, and the completion 
of the actions contained in the risk registers. 
Climate-related risks, impacts and mitigating 
actions are assessed as part of our Taskforce 
for Climate-related Financial Disclosures (TCFD) 
which are outlined from page 182 of this report. 
First Line
–	Divisions
–	Enabling 
functions
–	Senior 
management
Second Line
–	Risk 
management
–	Internal 
controls
–	Compliance 
functions
Third Line
–	Group Internal 
Audit
The Board*
–	Identifies which risks are most important for the Group, effectiveness of risk management and reviews the 
Group’s risk profile
–	Sets risk tolerance in the aggregate and, in particular, for each of the principal risks
–	Monitors risk experience
Group Executive Team (GET)
–	Responsible for operational delivery of the Group’s 
strategy, including day-to-day management of 
operations and responsibility for monitoring detailed 
performance of all aspects of the Group’s business. 
Necessarily, this includes many elements of practical 
risk management
Group Risk Management Committee (GRMC)
–	Responsible for formulating risk management strategies 
and policies and monitoring risk management 
throughout the Group
Divisions/Enabling Functions/Senior Management/
Risk Champions
–	Responsible for identifying, managing and mitigating 
appropriate sets of risks including emerging risks
–	Regularly review a broad range of individual current 
strategic and operational risks
–	Monitors key risk indicators
–	Reports and provide feedback to GRMC, GET, Audit 
and Risk Committee and the Board
Audit and Risk Committee (ARC)
–	Supports Board in monitoring the effectiveness of the 
systems of risk management and internal control
–	Reviews reports from Group Executive Team (GET), 
Group Risk Management Committee (GRMC), Group 
Internal Audit (GIA) and the external auditor relating 
to effectiveness
Key
 Report for 
evaluation 
 Direct and 
monitor
*	
The Board has appropriate regard for all the factors 
set out in S172 of the Companies Act 2006 in its 
consideration of risk and other matters. You can read 
about this on pages 47 to 49 in the S172 Statement.
Top-down 
–	Define risk 
tolerance
–	Monitor 
exposure
–	Oversight 
of risk 
management
Bottom-up 
–	Identify
–	Monitor
–	Report
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Principal risks and uncertainties cont.
Risk tolerance
We focus on understanding the risks, and their 
potential impacts, to appropriately mitigate and/or 
leverage risks and related opportunities and ensure 
any residual risks are acceptably within our risk 
parameters and do not impact business  
operations adversely.
The Board, with input from a range of internal 
stakeholders, undertook a comprehensive 
assessment of the emerging, key and principal risks 
facing the Group, along with the risk trends and 
levels of risk tolerance for each of those risks using 
the four categories set out below. In undertaking 
this exercise, the Board has considered the 
expectations of its shareholders and other 
stakeholders to practically inform the appropriate 
level of tolerance. The results of this review will 
support the Board’s decision-making during 2025. 
Very risk 
averse
Where we are very cautious and 
seek to minimise the financial 
and reputational risk as far as 
possible. Mitigation costs are 
accepted albeit that they might 
exceed the potential loss.
Risk averse
Where we are cautious and 
seek to reduce the financial 
and reputational risk. Mitigation 
actions are proportional and 
based on cost effectiveness.
Somewhat risk 
tolerant
Where we are willing to take some 
financial and reputational risk to 
achieve our objectives. Mitigation 
actions are again proportional and 
based on cost effectiveness.
High degree of 
risk tolerance
Where we are willing to take 
significant financial risk to 
achieve our objectives. Mitigation 
involves an active management 
of risk-return trade-offs.
Emerging risks
We consider emerging risks as part of our risk 
management horizon scanning process and as part of 
the everyday management of the business. In addition 
to the day-to-day management of such risks, these 
reviews consider emerging risk factors identified at 
unit and divisional level during the bottom‑up 
assessment process and are also informed by 
consulting internal and external experts. The emerging 
risks identified via these processes are then 
considered by the GRMC/GET/Board. During 2024, 
potential emerging risks were monitored and assessed 
during these review processes, particularly in relation 
to technology-related risks and opportunities.  
The Board will continue to monitor the evolution of 
emerging risks and reassess the landscape at least  
on an annual basis, having regard to the processes 
described above.
Modern slavery 
During the year, the Board approved the Group’s 
Modern Slavery Statement. We remain committed 
to addressing the potential risks of modern slavery 
and human rights abuses, to acting in an ethical 
manner with integrity and transparency in all 
business dealings, and to investing in the creation 
of effective systems and controls across the Group 
to safeguard against adverse human rights impacts.
Examples of key risk management actions in 2024
–	Succession planning at Board and GET level 
undertaken by the Board and its Committees: 
Review of succession plans for senior leaders 
required careful consideration of talent and 
capability-related risks. 
–	Review of GIA: ARC oversight of the externally 
facilitated review of GIA including consideration of 
the scope and focus of GIA activities, review of 
the short and medium-term audit plans and 
agreement of a hybrid resourcing model for the 
function culminating in the appointment of BDO 
as the co-source partner.
–	Internal control environment: Following the 
publication of the UK Corporate Governance Code 
2024, the ARC oversaw management’s enhanced 
focus on our material risks and the further 
formalisation and review of our internal control 
environment, including both financial and non-
financial controls. This included triangulation with 
our other risk management activities including our 
Group Risk Register. This will continue to be a focus 
in 2025 (see page 80 for further information). 
–	Creation of new role: A Group Head of Ethics and 
Risk role (reporting to the Chief Legal and Risk 
Officer) has been appointed to reflect the Group’s 
ongoing commitment to the highest standards  
of ethics and integrity and the enhanced 
management of Group-wide risks and  
related opportunities.
–	Divisional risk overviews presented at Board and 
ARC meetings: Scheduled presentations were 
provided by divisional leadership teams and 
included a holistic view of risks, covering principal, 
key and emerging risks, and gave input on the 
steps planned to mitigate these risks and leverage 
opportunities where appropriate. 
–	Cyber security deep dives and simulation exercise 
at Board: Cyber security deep dives and a 
simulation exercise were undertaken to ensure that 
the role of the Board, their decision-making 
requirements and stakeholder considerations were 
front of mind. The Board also considered the cyber 
security maturity level of the organisation.
–	AI: The Board receives regular updates on 
evolution of AI as part of its training programme 
and in line with its ongoing cyber security focus. 
Group has AI guidelines for use in relation to 
specific AI-related tools (e.g. generative pre-
trained transformers (GPTs)), and these are kept 
under review and revised appropriately.  
The Board will continue to monitor the usage of  
AI internally and externally and approve continued 
evolution of internal governance structures in 
relation to this.
–	Strategic review of industry trends, technology 
evolutions, deep dives into key markets and 
review of M&A strategy and Talent undertaken at 
annual strategy day: Presentations by external 
experts, the GET and senior management 
provided the Board with a fresh lens to consider 
recent evolutions in strategically important areas. 
–	ESG assurance: The ARC and Sustainability 
Committee provided oversight of the preparations 
and approach to the external limited assurance 
provided on ESG-related data included in this 
Annual Report. 
–	Review of Health and Safety, sustainability, 
people, performance, M&A, supply chain, legal 
and environmental matters provided at Board 
meetings: Regular updates provided to the Board 
and its Committees by the GET and senior 
management. 
–	Review of Group’s ongoing insurance programme 
by the Board: Regular review to ensure that this 
continues to provide an appropriate balance 
between retained risk and risk transfer.
Throughout all discussions, risks were considered 
both in isolation and also the correlation between 
risks and the likelihood of one risk occurring at 
the same time as another or even triggering it, 
and the potential combined impact of that and any 
further mitigating actions that could be taken.
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Principal risks and uncertainties cont.
Our 11 principal risks, along with a summary of any changes to risk descriptions and/or risk trends,  
the measures we have put in place to manage and mitigate them or leverage these risks and any  
related opportunities, are set out in the table below.
As stated above, the Board will continue to keep the management and mitigation of these principal risks, 
as well as the appropriateness of this list and the constantly changing broader risk environment, under 
ongoing review.
Principal risk
Action/mitigation
1. STRATEGIC
M&A programme ambition 
risk in light of Group’s 
increasing ambition in 
scale of its acquisition 
programme and its ability 
to source, satisfactorily 
acquire and integrate 
suitable targets
–	 Appropriately skilled and experienced in-house M&A resources co-ordinate and 
oversee strategic M&A programme. 
–	 Maintenance of robust and prioritised acquisition pipeline developed, utilising internal 
networks and external consultants, with clear acquisition criteria mapped to Coats’ 
Group and divisional-level strategic goals.
–	 Relationships developed with potential acquisition targets where practicable.
–	 Structured and appropriate due diligence undertaken on potential new targets where 
permitted and practicable.
–	 Use of professional advisory firms to conduct thorough due diligence and prepare 
robust integration plans spanning across all Group functions.
–	 Clear accountability and authority limits for initiation and approval of M&A activity are 
defined in Group Delegated Authorities Policy and Group M&A Process.
–	 In-house M&A expertise utilised to operate proven, structured integration process.
–	 Post-completion, detailed and established integration processes are used to ensure 
adequate resources are in place, appropriate progress is being achieved in line with 
agreed schedule and that anticipated synergies are being realised.
–	 Regular updates provided to Board on all M&A activities including identification  
of opportunities, transactional progress and integration.
Risk trend 
Link to strategy 
–	 Accelerate profitable 
sales growth
–	 Transform the business
–	 Create value
Principal risk
Action/mitigation
Risk of ever-increasing 
customer product and 
sustainability expectations 
and Group’s continuing 
ability to meet and exceed 
those expectations as part 
of its strategic growth and 
sustainability ambitions
–	 Regular engagement with customers undertaken at all levels within Group via well-
established lines of communication across various platforms.
–	 Continued monitoring of trends that have potential to change our industry undertaken 
at both Group and divisional level, which are tracked and escalated where required via 
well-established reporting processes. 
–	 Regular review and maintenance of customer-centric operational footprint to ensure 
enhanced productivity and responsiveness resulting in continuous improvement and 
speed of delivery. In 2024, a new Footwear structural component factory opened in 
Indonesia, strategically located to customers, with a focus on continued innovative, 
efficient and sustainable manufacturing practices. Our recently opened customer 
experience centre in Vietnam aims to inspire collaboration and innovation.
–	 Monitoring and ensuring an agile supply chain.
–	 Establishment of cross-Divisional Commercial Leadership Group to drive enhanced 
customer value creation and market focus. 
–	 Laser focus on customer service and quality to ensure globally consistent, superior and 
safe products resulting in reliability to facilitate superior partnering.
–	 Notable development of sustainability-led innovations to drive progress towards  
2030 sustainability-related goals with launch of products such as Rhenoprint RP 5.0 
technology, Gotex Xtru tapes, Imperfirm Fuze™ and FlamePro Splash in 2024.
–	 Strategic investment in capabilities and talent in our four global innovation hubs, which 
focus on effectively anticipating and addressing customer needs across our divisions. 
–	 Introduction of new Group Senior Vice President of Innovation who will maintain a 
differentiated innovation roadmap across all divisions and build on our world-class 
technical capabilities in collaboration with our Divisional CEOs.
–	 Continued focus on development and enhancement of customer-facing software and 
proprietary applications to better support their needs. Coats Digital continues to 
enable customers to optimise, connect and accelerate business critical processes 
seamlessly. ShopCoats helps customers manage their orders digitally assisted by new 
technology such as our new phone app. We have also developed Coats WeChat Store 
and expanded TechConnect to new markets. Coats Seamworks continues to be 
industry standard for thread calculations in apparel industry.
Risk trend 
Link to strategy 
–	 Accelerate profitable 
sales growth
–	 Create value
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Principal risks and uncertainties cont.
Principal risk
Action/mitigation
1. STRATEGIC CONTINUED
Risk of failure to develop 
diverse and inclusive set  
of talent and capability to 
ensure robust succession 
planning for critical roles  
in organisation given ever-
evolving business and 
external environment*
*Risk description has been 
refined in 2024 to (i) remove 
references to attracting and 
retaining talent and (ii) 
include reference to 
developing successors  
for critical roles 
–	 Review of succession plans for senior and critical roles regularly discussed at both  
GET and Board meetings and succession KPIs determined.
–	 Internal talent review conducted by GET to identify high-potential individuals and  
agree action plans for development. These are discussed at least annually at 
Nomination Committee and Board. Variable pay incentives in place, benchmarked and 
overseen by Remuneration Committee and aligned to both Group and individual 
performance. Individual performance appropriately calibrated to ensure fair and 
appropriate outcomes.
–	 ‘Grow Ready’ programme introduced outlining annual talent cycle with regular talent 
reviews and discussions and ensuring talent calibration at all levels.
–	 Formal performance cycle with clear objectives and individual development plans, 
including formal learning and experience learning opportunities, being agreed 
between each employee and their leaders.
–	 Investment in internal and external talent to strengthen capability in key roles,  
develop future leaders and drive internal career progression.
–	 Recruitment policy maintained and clearly communicated throughout Group.
–	 Employee engagement continues to be key part of HR strategy. Partnering with  
Great Place To Work® organisation, and review of internal employee surveys/feedback, 
provides 360 degree feedback and allows action plans to be developed to address 
key themes. Actions are tracked and updates are provided to Board annually.  
In 2024 Coats was recognised as best workplace in Manufacturing and Production by 
Fortune and is now certified by Great Place To Work® across 22 countries (covering 
95% of our workforce).
–	 Regular cultural monitoring and people driven initiatives (you can read more about 
these programmes on page 24) continued in 2024 which focussed on recognition and 
appreciation; belonging and DEI; wellbeing; philanthropy and appropriate flexibility for 
individual roles.
Risk trend 
Link to strategy 
–	 Accelerate profitable 
sales growth
–	 Transform the business
–	 Create value
Principal risk
Action/mitigation
2. EXTERNAL
Economic and geopolitical 
risk arising from significant 
macro-economic and 
demand uncertainty – 
across both key Asian and 
developed markets – 
including risk to free trade 
conventions and risk of 
tariffs and retaliatory 
actions leading to decrease 
in consumer confidence 
and spending – as well as 
global inflationary pressures 
and ongoing geopolitical 
developments*
*Risk description has been 
refined in 2024 to refer to 
risk of tariffs and retaliatory 
actions in light of potential 
political developments
–	 Group-level and divisional-level strategic analysis and scenario planning undertaken 
utilising well established modelling processes. Review of local and global key business 
factors to reflect impacts of any potential changes in external environment, including 
potential for changes in global tariff arrangements. 
–	 Appropriate use of external consultants, data sources and systems to supplement and 
inform internal review findings, including stress testing.
–	 Regular and timely updates provided to GET and Board to enable informed  
strategic decisions.
–	 Continued review of potential strategic levers including cost base efficiency. Group 
portfolio / footprint remains under review with decisions taken to further enhance our 
strategic positioning. 
–	 Continued focus on differentiation from competitors, and enhancing the value we 
deliver to our customers, through (for example) consistency and quality as well as 
innovation and sustainability.
–	 Central hedging and currency monitoring take place to manage volatility which  
arises. Bank financing is readily available to Group, with comfortable liquidity and 
covenant headroom.
–	 Strength of our global business, ability to flex production and active global supply 
chain management allow operational processes to be maintained despite volatility.
–	 Strong customer relationships built on long-term partnerships are supported by local 
operations, technical excellence and quality.
–	 Regular monitoring of legal and regulatory matters at both Group and unit level. 
Consultation with external advisors where necessary.
–	 Appropriate insurance cover in place to mitigate the financial impact of certain types  
of risk.
Risk trend 
Link to strategy 
–	 Accelerate profitable 
sales growth
–	 Transform the business
–	 Create value
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Principal risks and uncertainties cont.
Principal risk
Action/mitigation
2. EXTERNAL CONTINUED
Risk of cyber incidents 
leading to corruption of 
applications, critical IT 
infrastructure, compromised 
networks, operational 
technology and/or loss 
of data
–	 Cyber Security Team responsible for all aspects of security across Coats’ global 
organisation and is appropriately resourced.
–	 Cyber Security Steering Committee in place to oversee strategy and plans, provide 
investment support and monitor progress throughout the year. GRMC, ARC and Board 
review progress at regular intervals.
–	 Established Group-wide control areas, supported by maturing controls, including 
Endpoint Detection and Response; Internet Security Protection; Email Security 
Protection; Education and Awareness programmes; and Identity and Access 
Management processes and procedures. These processes and solutions allow 
proactive real-time monitoring and identification of potential threats to enable these  
to be removed/mitigated.
–	 Continued education of employees and protection of key systems ensures business 
continuity and reduces potential impact of future threats.
–	 Two cyber security deep dive sessions presented at Board meetings in 2024 providing 
detailed insights into cyber security and Board also participated in simulation exercise 
to review and test protocols.
–	 Group cyber security maturity rating increased against NIST Cyber  
Security Framework.
–	 New controls introduced during 2024 included strengthening of email defences, 
protection of key accounts and systems, and secure third-party support. These will 
continue to mature through 2025.
–	 Focus areas for 2025 include Advanced Network Security, Advanced Internet 
Protections and Enhanced Vulnerability Management.
Risk trend 
Link to strategy 
–	 Transform the business
Principal risk
Action/mitigation
Risk of supplier non-
performance, unavailability 
and/or price increases of 
raw materials, labour and 
freight and/or logistical 
challenges causing major 
disruption to Coats’ supply 
chain and/or reputational 
damage as result of non-
compliance with Group’s 
ethical standards
–	 Group continues policy of maintaining strategic supply arrangements to achieve 
optimal balance between cost and having supply chain localised to production teams.
–	 Business contingency planning undertaken at Group and divisional level, supported  
by regular scenario analysis and continuity planning with any necessary adjustments  
to stocking policy implemented to ensure robust and reliable supply chain.
–	 During 2024, supply disruptions caused by Red Sea crisis were mitigated by activating 
alternate supply routes and optimising inventory.
–	 Monitoring of global geopolitical and macro-economic factors to identify potential 
future sources of disruption and enable timely pro-active engagement with key 
suppliers to secure required stock and activate alternate freight arrangements.
–	 Challenges of availability and quality of recycled materials were mitigated through 
engagement with both direct suppliers and their feedstock sources to build new 
strategic relationships. 
–	 All suppliers have to commit to compliance with our Group Supplier Code as condition 
of doing business with Coats, and suppliers with annual spend over defined threshold 
and any supplier that falls under high-risk category have to undergo mandatory on-site 
supplier audits. 
–	 In person and virtual workshops held with suppliers to provide further training to 
enhance understanding of, and ensure compliance with, Group Supplier Code. 
–	 Continuation of programme of audits that are targeted at suppliers that have high-risk 
profile. On our behalf, Bureau Veritas conducted 261 third-party audits in 2024. 
Risk trend 
*
* Risk trend has been 
decreased from 
“increasing” to “stable” in 
December 2024 given that 
the situation had not further 
deteriorated and that freight 
suppliers had considerably 
increased freight capacity  
in response to Red Sea-
related challenges
Link to strategy 
–	 Accelerate profitable 
sales growth
–	 Transform the business
–	 Create value
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Coats Group plc Annual Report and Accounts 2024
Principal risks and uncertainties cont.
Principal risk
Action/mitigation
2. EXTERNAL CONTINUED
Environmental non-
performance risk given 
changing standards, 
increasing scrutiny, 
customer and investor 
demands and expectations 
and scale of Group’s own 
self-imposed standards 
and ambitions, creating 
commercial, financial and 
reputational risks as well 
as opportunities
–	 Continuation of delivery towards 2026 sustainability targets, with 2024 performance 
across all metrics fully on track.
–	 Fully embedded and industry leading restricted substances list ensuring only permitted 
chemistry can be supplied to and utilised by any of our manufacturing facilities globally.
–	 Robust chemical management procedures implemented and maintained across all 
operational sites which are complemented with training drills and simulations to 
prepare local site teams for real-life scenarios such as chemicals spills and hazard 
identification.
–	 Regional Environmental and Compliance Management structure tracking and 
implementing new and updated legislative requirements using subscription-based 
environmental software system.
–	 Permit management system for all permits and licences held in each country where  
we operate.
–	 Annual sustainability assessment conducted by all 32 apparel and footwear 
manufacturing units through Higg Facility Environmental Module (FEM). This 
assessment tool is specifically designed to assess environmental performance  
of manufacturing units within textile industry and comprehensively assesses 
environmental management systems, energy and greenhouse gas emissions, water, 
waste, wastewater, air emissions and chemicals management.
–	 Transparent reporting and management of root cause and corrective and preventative 
actions for all environmental incidents through use of global software platform. 
–	 All facilities with direct discharge of effluent into natural waterways are equipped with 
online analytical monitoring equipment of key water quality parameters ensuring that 
local water discharge permit conditions are met as well as ensuring we meet more 
stringent effluent standards set by Roadmap to Zero Programme for effluent 
compliance.
–	 Global Business Continuity Plans include environmental emergency preparedness and 
response plans. Environmental risks are tracked through our environmental aspects 
and impacts management system. Environmental management plans are run through 
series of workstreams to ensure key stakeholders have input into their delivery through 
define, measure, analyse, improve and control (DMAIC) process.
–	 Further details on our sustainability strategy can be found in our annual Sustainability 
Report (www.coats.com/sustainability).
Risk trend 
Link to strategy 
–	 Transform the business
Principal risk
Action/mitigation
3. CLIMATE
Climate change risk arising 
from either (i) impact of 
failing to sufficiently 
address need to 
decarbonise Company’s 
operations and reduce 
emissions (including 
potentially as result of 
energy security challenges 
and ability to access 
sufficient renewable 
energy in relevant 
locations), leading 
principally to commercial 
and reputational risks and 
financial risk of emissions 
taxes or other legislative 
changes, or (ii) physical 
impact of climate change 
on company’s operations 
and business model and 
that of its customers in 
textile supply chain
–	 GET, through Group Sustainability function, has responsibility for overseeing reporting 
of environmental data by business, and driving sustainability strategy and climate 
change risk management processes. Board and Sustainability Committee provide 
strategic oversight and monitor execution of Company’s sustainability strategy and 
initiatives. ARC reviews processes for reporting of environmental data externally.
–	 Maintenance of detailed register of climate-related risks and opportunities, which are 
assessed based on their level of materiality and impact over short, medium and long- 
term time horizons under different climate scenarios. 
–	 In 2024, approach for assessment of physical climate risks changed from use of in-
house developed models to use of Munich Re Location Risk Intelligence Tool which 
enables assessment of a wide range of physical risks for given geo-tagged locations 
globally. This assessment was conducted for all of our manufacturing business units 
globally, irrespective of their production volume output. Risks assessed included flood 
risk, drought stress, extreme heat and precipitation stress.
–	 In 2024, full approval achieved of 2050 Net-Zero targets from Science Based Targets 
Initiative, fully incorporating revised 2019 baseline which includes 2022 acquisitions  
of Texon and Rhenoflex.
–	 Positive progress towards our 2026 Energy target of reducing Scopes 1&2 emissions 
achieved, having already exceeded 2026 target having delivered a 51% reduction from 
2022 baseline, versus set target of 22% reduction. Good progress maintained in 2024 
towards 2030 target of 100% electricity from renewable sources, delivering 72% of 
green certified electricity in 2024 (up from 54% in 2023 and 29% in 2022).
–	 You can read more about our sustainability targets in our 2024 Sustainability Report 
(www.coats.com/sustainability). 
–	 Quantification and mitigation of climate risks and opportunities continues to be carried 
out using TCFD Recommendations as detailed in ‘Recommendations of Task Force on 
Climate-related Financial Disclosures’, 2017, with use of additional guidance from 
‘Implementing Recommendations of Task Force on Climate-related Financial 
Disclosures’, 2021. 
–	 Full details of our 2024 TCFD disclosures can be found in TCFD section of this annual 
report (see pages 182-198).
Risk trend 
Link to strategy 
–	 Accelerate profitable 
sales growth
–	 Transform the business
–	 Create value
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Coats Group plc Annual Report and Accounts 2024
Principal risk
Action/mitigation
4. OPERATIONAL
Health & Safety risk – 
risk of (i) safety incident(s) 
leading to injury or fatality 
involving our employees 
or other interested parties 
such as contractors, visitors, 
onsite suppliers, etc. along 
with potential resulting 
prosecution, financial costs, 
business disruption and/or 
reputational damage; and/
or (ii) physical and mental 
health issues impacting 
wellbeing, engagement, 
productivity*
*Risk description has been 
refined to remove reference 
to “talent retention”
–	 Risk-based management system approach in force in relation to safety and 
occupational health to drive continuous reduction in both likelihood and severity 
of injury or occupational illness. Hazard identification processes are in place.
–	 Health and safety subject matter experts at unit level in place to set health and safety 
strategy, conduct audit of health and safety controls, and support local efforts.
–	 Group CEO responsible for health and safety within Group, and provides reports at 
every Board meeting to support Board in its oversight of positive and proactive health 
and safety culture, with appropriate focus on prevention of injury. 
–	 ‘Coats Safety Circle Programme’ developed to enhance communication and sharing of 
learnings from incidents and best practices to facilitate continuous improvement, with 
supporting information stored in centralised ‘Coats Health and Safety sharepoint hub’.
–	 Global programme ‘Energy for Performance’ focuses on four pillars of wellbeing (mental, 
physical, social and emotional support). This provides framework for countries to determine 
and implement tailored initiatives to meet local needs e.g. mental health seminars and 
trainings, exercise programs and support, and other wellbeing focussed activities. 
–	 Global roll-out of hand safety training including bespoke ‘Global Hand Safety Training 
program’ (15,703 workers trained in 2024), extensive communications and activities 
made during ‘Journey to Zero week’, and an additional 80 hand safety campaigns.
–	 Key elements of ISO 45001 (international standard for occupational health safety 
management systems) are in place including:
–	 Group hazard identification and incident management system (Intelex).
–	 Defined Group health and safety standards that serve as baseline controls  
to mitigate known hazards.
–	 Annual targets and objectives are set and monitored in regular reports that are 
considered at GET and Board meetings.
–	 Regular training programmes and inspection programmes are conducted globally 
e.g. ‘Dye Machine Audit Program’ provided training to 129 employees in five 
workshops supported by audit of dye machines during 2024.
–	 ‘Top-5 risk’ approach utilised to ensure that sites are focussing on reducing their top 
risks. All actions, both preventive and reactive, are prioritised by risk and closure of 
top risk actions is priority.
–	 Audits of both health and safety systems and the hazard controls are undertaken.
–	 Behaviour management system utilised to influence risk behaviour at Coats’ sites 
using artificial intelligence software (Intenseye) and Safety Score increased to 92%.
Risk trend 
**
**Risk trend has been 
increased from “stable” to 
“increasing” due to 
increasing manufacturing 
volumes as well as our 
changing business model, 
and moves into new 
technologies and 
machinery
Link to strategy 
–	 Transform the business
Principal risks and uncertainties cont.
Principal risk
Action/mitigation
Legal and regulatory 
compliance risk – risk of 
breach of law in relation to 
areas such as anti-
corruption, competition, 
sanctions, chemical 
compliance and ESG 
regulatory and reporting 
requirements, resulting in 
material fine(s) and/or 
reputational damage*
* Risk description has been 
refined in 2024 to include 
reference to (i) chemical 
compliance and (ii) ESG 
regulatory and reporting 
requirements, given ever-
increasing number and 
scope of such requirements
–	 Robust control framework maintained, supported by comprehensive corporate governance 
and compliance policies and procedures at both Group and unit level.
–	 Regular monitoring of legal and regulatory developments at both Group and unit level, with 
appropriate consultation with external advisors where necessary. Group policies regularly 
reviewed and enhanced to incorporate relevant changes and best practice. Group policies 
are translated into the languages most commonly spoken by employees. 
–	 Comprehensive suite of mandatory compliance training modules covering areas such 
as Ethics at Work, Anti-bribery, Competition Law, Cyber Security, Data Protection and 
Anti-Slavery is maintained in multiple languages. These training modules are 
completed by all relevant employees every two years and by all new starters. In 2024, 
the modules were relaunched for all employees. Targeted training is provided to 
specific groups and functions where additional training needs are identified e.g. trade 
sanctions compliance training for commercial teams.
–	 Specific areas of compliance are highlighted through the global ‘Doing The Right 
Thing’ programme, which is led by members of senior management and supported by 
local ethics champions. In 2024, this focussed on Anti-Harassment, Anti-Bullying and 
Anti-Discrimination, Health and Safety and Trade Sanctions Compliance.
–	 During 2024, key Group policies and procedures, including Anti-Bribery and Anti-
Corruption Policy, Competition Law Policy and Ethics Code, were refreshed. 
Additionally, customised communications and specialised training were provided  
to teams within each division. 
–	 All potential customers and vendors are required to pass sanctions compliance checks 
before any transaction can proceed.
–	 Each unit completes semi-annual compliance review checklist, with any deviations 
being reported to GET/GRMC and ARC.
–	 GIA include regulatory and policy compliance as part of their audit remit. During 2024, 
GIA completed ten market audits.
–	 Dedicated whistleblowing email address and confidential, multi-language external 
web-based reporting system available in line with Whistleblowing Policy.
Risk trend 
Link to strategy 
–	 Accelerate profitable 
sales growth
–	 Transform the business
5. LEGACY
Lower Passaic River legacy 
environmental matter
–	 Board continues to monitor developments very closely.
–	 Board approves the strategy in relation to Lower Passaic River proceedings.
Risk trend 
Link to strategy 
–	 Transform the business
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Coats Group plc Annual Report and Accounts 2024
Long-term viability statement
The Directors have also taken into account a 
number of assumptions that they consider 
reasonable within these assessments including: 
–	The assumption that funding facilities will continue 
to be available throughout the period under 
review: the core US private placement borrowings 
are due between 2027 and 2034 and the 
revolving facility matures in 2027, with the ability 
for two one-year extensions. During the 
assessment period it has been assumed that the 
US private placement borrowings maturing in 
December 2027 are successfully refinanced and 
the term of the revolving facility, maturing in 
August 2027, is successfully extended;
–	The assumption that following a material risk 
event, the Group would adjust capital 
management to preserve cash; and 
–	The assumption that the Group will be able  
to mitigate risks effectively through other  
available actions. 
As part of the going concern assessment, the 
Directors also considered a reverse stress test 
flexing sales to determine what circumstance would 
be required to either reduce headroom to zero on 
committed borrowing facilities or breach borrowing 
covenants, whichever occurred first. As set out on 
page 130, the Directors consider the likelihood of 
the condition in the reverse stress test occurring to 
be remote. 
Based on this assessment, the Directors have a 
reasonable expectation that the Group will be able 
to continue in operation and meet its liabilities as 
they fall due over the period of the assessment.
In accordance with provision 31 of the revision of the 
2018 UK Corporate Governance Code, the Directors 
have assessed the longer term viability of the Group 
over the period to December 2027. The Directors’ 
assessment has been made with reference to the 
Group’s current position and prospects, as detailed 
in the Strategic Report. This takes into account the 
Group’s business model, strategy, approach to 
allocating capital and the potential impact of the 
principal risks and how these are managed.  
The Directors have also considered committed 
finance facilities which, following the refinancing 
exercises concluded in August and December 2024, 
have maturities which range from August 2027 
through to 2034.
The Group’s strategic objectives and associated 
principal risks are underpinned by an annual budget 
and Medium Term Plan process, which comprises 
financial projections for the next three years (2025–
2027). The Medium Term Plan represents a common 
process with standard outputs and requirements at 
the Group level. The Board reviews and challenges 
the Medium Term Plan annually. Although this 
period provides less certainty of outcome, the 
underlying methodology is considered to provide  
a robust planning tool against which strategic 
decisions can be made.
The Directors consider that the three year period 
considered by the Medium Term Plan reflects an 
appropriate period over which its business and 
investment cycles, as well as its prospects, can be 
considered. The Medium Term Plan and the severe 
but plausible downside scenarios (as set out below) 
both consider the implications of risks around 
sustainability and climate change over the three 
year assessment period. Longer term implications 
and prospects, including both risks and 
opportunities, of climate change have been 
considered as part of the Task Force on Climate-
related Financial Disclosures report. 
The Directors have taken into account the Group’s 
current position and the potential impact of the 
principal risks set out on pages 50 to 56 as well as 
other risks that could crystallise during the medium-
term. The Directors have considered a range of 
severe but plausible scenarios that explore the 
Group’s resilience to the potential impact of the 
principal risks as set out on pages 50 to 56 as well 
as other risks that could crystallise during the 
medium-term.
After assessing the potential impact of the principal 
risks, the specific areas considered as part of the 
severe but plausible scenarios include: 
–	Sales growth is lower than expected throughout 
the assessment period, with reduced margins and 
cash generation. Lower sales growth could result 
from a prolonged industry de-stocking cycle, 
lower demand because of macro-economic 
uncertainties, escalation in geopolitical tensions, 
resurgence of Covid or similar pandemic with 
resulting lockdowns and subsequent supply chain 
challenges, as well as Coats being unable to meet 
customer expectations (including sustainability 
targets); and
–	Supply chain challenges cause unavailability and/ 
or price increases of raw materials, labour, freight 
and/or logistical challenges causing major 
disruption to Coat’s supply chain. 
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Coats Group plc Annual Report and Accounts 2024
Operating review
Continuing operations
FY 2024  
$m
 FY 2023  
$m
FY 2023  
CER 1  
$m
Inc / (dec)  
%
CER 1  
inc / (dec) 
%
Revenue
 
 
 
 
By division
Apparel
770
689
678
12%
13%
Footwear
403
368
368
10%
10%
Performance Materials
328
336
330
-3%
-1%
Total
1,501
1,394
1,377
8%
9%
By region
Asia
964
823
818
17%
18%
Americas
234
246
248
-5%
-5%
EMEA
302
325
310
-7%
-3%
Total
1,501
1,394
1,377
8%
9%
Adjusted EBIT 2, 3
By division
Apparel
151
120
118
25%
28%
Footwear
95
84
84
13%
13%
Performance Materials 
24
29
28
-16%
-12%
Total adjusted EBIT
270
233
229
16%
18%
Exceptional and acquisition-related items
-70
-49
EBIT 3
200
184
Adjusted EBIT margin 2, 3
By division
Apparel
19.6%
17.5%
17.4%
210 bps
220 bps
Footwear
23.5%
22.8%
22.8%
70 bps
70 bps
Performance Materials 
7.4%
8.6%
8.4%
 (120 bps)
 (100 bps)
Total
18.0%
16.7%
16.7%
120 bps
130 bps
1.	 Constant Exchange Rate (CER) are 2023 results restated at 2024 exchange rates. 
2.	 On an adjusted basis which excludes exceptional and acquisition-related items.
3.	 EBIT (Earnings before interest and tax) relates to Operating Profit as shown on the face of the P/L.
2024 Operating Results Overview
Group revenue of $1,501 million increased 8%  
on a reported basis and 9% on a CER basis.  
We continued to see the recovery from the 
widespread industry destocking in Apparel and 
Footwear which was reflected in softer prior year 
comparators, partly offset by ongoing weakness in 
Performance Materials. 
Group adjusted EBIT of $270 million increased by 
18% on a CER basis (2023: $229 million on a CER 
basis), largely driven by improved revenue 
performance and continued benefits from strategic 
projects and acquisition synergies. Inflationary 
pressures continued to be well managed through 
pricing and productivity levers, and we have made 
targeted reinvestments in our cost base as our end 
markets continue to recover. As a result, adjusted 
EBIT margins were up 130bps to 18.0% (2023: 16.7% 
on a CER basis), ahead of our stated 2024 Group 
adjusted EBIT margin target of 17%. 
On a reported basis EBIT was $200 million (2023: 
$184 million), after $70 million of exceptional and 
acquisition-related items (2023: $49 million) which 
predominantly relate to the execution of our 
strategic projects, delivery of the 2022 footwear 
acquisitions synergies, as well as the recent decision 
to right size our North American Yarns footprint to 
the medium-term demand trends.
Adjusted earnings per share (‘EPS’) increased by 
18% to 9.5 cents (2023: 8.0 cents) and was driven by 
our improved operating performance. In addition we 
continued to tightly manage our interest costs, tax 
charge and profit attributable to minority interests. 
Reported EPS of 5.0 cents (2023: 5.2 cents) was 
broadly flat year on year due to the higher level of 
exceptional and acquisition-related items as we 
completed our actions from our strategic project 
initiatives and acquisition integration activities. 
Exceptional related items are expected to be 
significantly reduced going forward due to the 
completion of these actions during 2024. 
Our Group cash performance was strong with 
adjusted free cash flow of $153 million (2023: $131 
million) as we returned to normalised levels of 
working capital alongside ongoing market recovery. 
This cash performance represented a cash 
conversion level of 101% (2023: 101%) and reflects 
our ability to deliver high quality of earnings, and 
cash flow efficiencies, whilst continuing to deliver 
top line growth, together with some one-off timing 
benefits such as tax payments and VAT receipts. 
Our Balance Sheet remains in a strong position, with 
net debt (excluding lease liabilities) of $449 million 
(December 2023: $384 million), and leverage of 1.5x. 
Leverage was flat year-on-year despite the £100 
million contribution made to complete the remaining 
80% buy-in of the UK pension scheme liabilities 
during the year.
58
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Coats Group plc Annual Report and Accounts 2024
Operating review cont.
Footwear revenue increased 10% to $403 million 
(2023: $368 million) on a CER and reported basis. 
The revenue growth was driven by the normalisation 
of customer buying patterns and inventory levels 
post the significant destocking cycle seen in 2022 
and 2023 (which contributed to weaker comparators 
through most of 2024), albeit the recovery profile 
has been slightly behind that of the Apparel division, 
as previously reported. 
Our Footwear division has a focus on innovation and 
sustainability, and this year we have introduced new 
products and technologies that meet environmental 
sustainability criteria, aligned with market and 
customer needs. Our combined capability as Coats 
Footwear has accelerated this process. Not only do 
we have a broad portfolio, but we also have a strong 
focus on fast-growth sports and athleisure brands 
which attract premium pricing. Our longstanding 
partnerships with leading brands enables our 
growth to be ahead of the market. We have also 
continued to deliver share gains and new 
programme wins taking our estimated market share 
to 29% (2023 market share 27%), strengthening our 
position as a trusted partner for the footwear 
industry. We continue investing in dedicated 
resources to key brands and retailer and sustainable 
innovation capabilities.
Part of the strategic rationale for combining the 
three footwear businesses (Coats’ existing Footwear 
thread business, Texon and Rhenoflex), has been to 
enable cross-selling of our broad range of products 
to customers through a single customer-facing 
commercial team. We have created a number of 
opportunities for complementary offerings, with our 
customers seeing the potential to simplify and 
Adjusted EBIT of $151 million (2023: $120 million) 
increased 28% versus the prior year on a CER basis. 
The adjusted EBIT margin was 220bps higher at 
19.6% on a CER basis (2023: 17.5% reported), 
which is well ahead of our 2024 margin target of 
15-16%. This was driven by improving volumes, 
alongside continued savings from our strategic 
projects, ongoing procurement benefits, and some 
foreign exchange gains. Excluding these foreign 
exchange gains, underlying margins were  
around 19%. 
Over the medium-term we expect Apparel to grow 
at a 3-4% CAGR, ahead of underlying market growth 
at 1-2% with market share gains and new organic 
adjacencies driving the outperformance. Continued 
market share gains will come from our deep 
customers relationships and our position as leader 
in sustainability, innovation and digital. We see 
opportunities in the China and India domestic 
markets with the growing middle class and 
opportunities to drive our fashion technology 
business Coats Digital. We expect the medium-term 
EBIT margin to be >19%. 
Footwear 
We are the trusted partner to the footwear industry, 
shaping the future of footwear for better 
performance through sustainable and innovative 
solutions. The combination of Coats, Texon and 
Rhenoflex makes us a global champion with a 
portfolio of highly engineered products with strong 
brand component specification, primarily targeted at 
the attractive athleisure, performance, and sports 
markets as well as structural components for 
premium leather handbags (lifestyle).
Apparel
Coats is the global market leader in supplying 
premium sewing thread to the Apparel industries. 
We are the trusted value-adding partner, providing 
critical supply chain components services and 
software, and our portfolio of world-class products 
and services provide exceptional value creation for 
our customers, brands and retailers. 
Revenue of $770 million (2023: $689 million) was up 
13% on a CER basis (12% reported). As previously 
guided we saw customer inventory and buying 
patterns return to more normalised levels during the 
year despite wider macro concerns. This follows a 
prolonged period of industry destocking that 
commenced in 2022 and continued throughout the 
majority of 2023, and as such significantly impacts 
prior year comparators, particularly in the first half  
of the year. 
The Apparel business continues to benefit from 
market share gains (2024 market share c.26% vs 
c.25% in 2023). We were also able to maintain 
pricing, and owing to our proactive procurement 
strategy, leverage moderating input costs in  
some areas. 
We continue to be very well-positioned in our 
markets, as the global partner of choice for our 
customers, with market-leading product ranges and 
customer service, and a clear leadership position  
in innovation and sustainability. With market 
conditions normalising, our strong market position, 
agile supply chain, global presence, differentiation  
at scale and focus winning brands and 
manufacturers provide further opportunities for 
growth and market share gains.
optimise their supply chains and we are pleased 
with the progress in 2024. We are now seeing the 
benefits of this, and in the period succeeded in 
cross-selling our products to two large well-known 
European sports brands, as well as a leading  
US brand. 
Adjusted EBIT of $95 million (2023: $84 million) with 
adjusted EBIT margin 70bps higher at 23.5% on a 
CER basis, significantly in excess of our 2024 margin 
target of >20%, driven by a combination of improved 
volumes, strong commercial delivery and continued 
benefits from the acquisition integration synergies. 
Acquisition integration has focused on commercial 
and general & administrative costs, as well as on 
procurement, and consequently we have delivered 
$22 million of annualised efficiency savings 
(significantly ahead of our initial guidance of $11 
million savings). During the second half of the year 
we commenced some consolidation of sites within 
Europe to drive improved operating efficiencies. We 
also expanded our Indonesia operations to provide 
greater capacity in this fast growing footwear market 
which is becoming increasingly important to our 
customer and supplier base. 
Over the medium-term we expect Footwear to grow 
at a 7-9% CAGR, ahead of underlying market growth 
at 4-5% with market share gains and organic 
expansion into adjacencies driving the 
outperformance. Market share gains will come from 
our position as leader in sustainability, innovation 
and digital. We see opportunities to cross sell to 
customers in legacy thread or structural 
components businesses and in the China domestic 
market. We will also focus on structural components 
and threads for lifestyle products. We expect the 
medium-term EBIT margin to be in 24-26% range.
59
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OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Operating review cont.
Adjusted EBIT was 12% lower vs 2023 on a CER 
basis at $24 million (2023: $29 million). Adjusted 
EBIT margins were 7.4% (2023: 8.6% reported), 
below the 2024 margin target of 13-14%, reflecting 
the softness of our end markets (which we expect 
to continue in 2025) as well as the under utilisation 
of our footprint in Mexico. Action has been taken 
to right size the footprint capacity in Mexico in 
relation to the changing medium-term demand 
dynamics in the North American Yarns business 
with the announcement of the closure of the Toluca 
facility in December 2024. 2024 PM EBIT margins 
included c.$6 million of under-recovered costs 
in relation to the US / Mexico plant transitions, 
which will no longer be incurred following the 
decision to close the Toluca plant. Although actions 
taken in Toluca will yield immediate benefits, 
the progression of the margin will be dependent 
on volume recovery in yarns and stabilisation of 
the macroeconomic environment in Turkey.
Medium-term revenue growth potential is expected 
to be high single digits for PPE which reflects 
lower growth potential for North American Yarns 
offset by the higher growth PPE threads and 
fabrics business, low double-digits for Telecom & 
Energy (underlying market growth of >5% CAGR), 
and growth in line with global GDP for Industrials. 
The overall medium-term revenue growth target 
for the division is a 6-8% CAGR and we expect 
the EBIT margin to reach 13-15% in the medium-
term through a combination of operational 
improvements, market recovery in Industrials 
and Telecom and growth initiatives in composite 
tapes for the Energy markets and PPE fabrics.
Performance Materials (‘PM’)
We are experts in the design and supply of a 
diverse range of technical products that serve a 
variety of strategic end use markets. Building on 
over 250 years of leadership in textile engineering 
we incorporate specific design features to provide 
highly engineered solutions for our customers. 
The division operates across Personal Protection 
Equipment (PPE), Telecom & Energy and Industrials. 
PPE offers multi-hazard industrial applications 
for industrial thermal protection, firefighting and 
military wear. Telecom & Energy provides products 
and solutions for fibre optic cables and oil & gas 
pipeline sectors. Industrials has applications in a 
range of sewn products including safety-critical 
automotive airbags and seat belts, outdoor 
goods, household products like bedding and 
furniture, hygiene-sensitive consumer goods 
like feminine hygiene products and tea bags.
PM is structured as three sub-segments: 
PPE (38% of 2024 divisional revenue) which 
includes both the American yarns business 
and PPE threads and fabrics, Telecom & 
Energy ( 17% of 2024 divisional revenue) and 
Industrials (45% of 2024 divisional revenue). 
PM revenue declined 1% to $328 million (2023: 
$336 million) on a CER basis (3% decline on a 
reported basis), with PPE flat on a CER basis, 
Telecom & Energy decreasing by 7% (CER) 
against particularly strong comparators, and 
Industrials increasing by 1 % (CER). As previously 
disclosed there have been issues in some US 
markets as well as destocking at some US 
telecommunication customers in Telecoms & Energy. 
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Coats Group plc Annual Report and Accounts 2024
Financial review
The Group’s adjusted EBIT margins increased by 
130bps to 18.0% on a CER basis (2023: 16.7%), with 
the impact of the year-on-year volume increases, 
self-help actions, strategic project savings and 
acquisition synergies all contributing. 
On a reported basis, Group EBIT, including 
exceptional and acquisition-related items, increased 
to $200 million (2023: $184 million). A breakdown of 
these items is provided below. Exceptional and 
acquisition-related items are not allocated to 
divisions and, as such, the divisional profitability 
referred to above is on an adjusted basis.
Foreign exchange
The Group reports in US Dollars and translational 
currency impacts can arise, as its global footprint 
generates significant revenue and expenses in a 
number of other currencies. During the year, this 
was a headwind of 1% on revenue and 2% on 
adjusted EBIT. As previously announced, these 
adverse translation impacts were primarily due to 
the previous adoption of hyperinflation accounting 
in Turkey, and furthermore saw local EBIT 
headwinds as inflationary pressures continued to 
accelerate. Aside from the impact of the Turkish Lira, 
and the resulting volatility of hyperinflation 
accounting, underlying headwinds were modest and 
driven primarily by the depreciation of Chinese and 
Egyptian currencies. At latest exchange rates, we 
expect a 1-2% headwind impact on revenue and 
adjusted EBIT for full year 2025 (excluding any 
future hyperinflation impact in Turkey, which cannot 
be forecasted with accuracy).
Following the significant volume headwinds during 
2023, primarily due to widespread industry 
destocking in Apparel and Footwear, there has  
been a return to year-on-year volume growth during 
2024 against these weaker comparators. The direct 
and indirect impact of this contributed to a 
significant improvement in operating profits and 
margins vs 2023. 
We have benefited from an effective pricing strategy 
as the benefits of easing raw material costs seen 
during 2023 and H1 2024 have largely now ended. 
Other cost categories such as freight and energy 
have returned to an inflationary trend, and labour 
inflation has maintained throughout and remains at 
relatively normal levels. Overall, our ability to deliver 
price gains and continue to generate productivity 
benefits has again more than offset our overall 
inflationary pressures. 
Selling, Distribution and Administration (SD&A) costs 
are above last year as certain costs have returned to 
the business. This increase is in part due to the 
return to top line growth, but also due to targeted 
reinvestments into the business after a period of 
significant cost containment during the destocking 
cycle, as well as higher incentive payouts due to the 
strong financial performance in the year. We have 
also benefited from a further $10 million of efficiency 
savings (total savings to date are $67 million), in 
relation to our strategic projects announced in 
March 2022, for which the actions are now largely 
complete as planned during 2024. Our 2022 
acquisitions, Texon and Rhenoflex, will deliver a total 
of $22 million of annualised synergy benefits with 
$6 million of incremental benefits versus 2023. 
Revenue
Group revenue from continuing operations 
increased 8% on a reported basis and 9% on a  
CER basis. All commentary below is on a CER basis 
unless otherwise stated.
Operating Profit (EBIT)
At a Group level, adjusted EBIT from continuing 
operations increased 18% to $270 million and 
adjusted EBIT margins increased 130bps to 18.0%. 
The table sets out the movement in adjusted EBIT 
during the year.
$m
Margin %
2023 adjusted EBIT
233
16.7%
Volumes impact (direct and 
indirect)
37
 
Price/mix
11
 
Raw material deflation
9
 
Labour inflation
(22)
 
Other inflation (incl. energy / 
freight) 
(9)
 
Productivity benefits 
(manufacturing and sourcing)
25
 
Strategic projects savings
10
 
Increased incentive payments 
(SD&A)
(10)
 
Other SD&A increases
(16)
Others
(5)
 
Texon and Rhenoflex synergies
6
 
2024 adjusted EBIT
270
18.0%
Exceptional and acquisition 
related items
(70)
 
2024 reported EBIT
200
 
Non-operating results
Adjusted EPS increased by 18% year-on-year to 9.5 
cents (2023: 8.0 cents), supported by a return to 
growth in Apparel and Footwear during the year. 
Interest costs were broadly flat year on year, despite 
the higher net debt due to the UK pensions 
settlement payment, as we managed our cash 
position well throughout the year. Our effective tax 
rate remained well controlled, alongside a marginal 
increase in profit attributable to minority interests as 
a result of strong operational performance in 
Vietnam and Bangladesh. Reported EPS of 5.0 cents 
(2023: 5.2 cents) was broadly flat year on year as 
improved trading performance was offset by higher 
exceptional items as we largely completed our 
strategic project and acquisition integration actions. 
The adjusted taxation charge for the year was $70 
million (2023: $58 million). Excluding the impact of 
exceptional and acquisition-related items, the 
effective tax rate on pre-tax profit remained at 29% 
(2023: 29%), in line with our guidance. The reported 
tax rate for the year was 42% (2023: 35%), after 
exceptional and acquisition related items.
Exceptional and acquisition-related items
Net exceptional and acquisition-related items before 
taxation were $70 million (2023: $49 million). These 
include $27 million of restructuring costs in relation 
to the remaining actions on our strategic projects, 
$15 million of costs in relation to the closure of the 
Toluca site, Footwear integration synergy costs of 
$1 million, UK pension related costs of $2 million, 
and other acquisition-related items of $25 million. 
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Coats Group plc Annual Report and Accounts 2024
expenditure to remain in the $30-40 million range 
as we continue to invest in support of our growth 
strategy, in productivity and in our environmental 
performance. 
Minority dividends of $18 million (2023: $20 million) 
were paid, as cash was repatriated from those 
relevant overseas entities to the Group. Tax paid 
was $71 million (2023: $61 million). Interest paid was 
$32 million (2023: $34 million). 
The Group delivered an overall free cash outflow of 
$58 million (2023: $15 million inflow). This primarily 
reflects the adjusted free cash inflow of $153 million, 
offset by:
–	Exceptional and other non-recurring, mainly 
relating to strategic projects of $21 million; 
–		UK pension settlement of £100 million  
($128 million); 
–		Dividend payments of $46 million.
Net debt (excluding lease liabilities) at 31 December 
2024 was $449 million (31 December 2023: $384 
million). Including lease liabilities, net debt was  
$533 million (31 December 2023: $471 million).
UK pension update
As referred to above, in September we announced 
that the trustee of the Coats UK Pension Scheme 
(the “scheme”) purchased a c.£1.3 billion ($1.7 billion) 
bulk annuity policy (“buy-in”) from Pension Insurance 
Corporation plc (“PIC”) which insures benefits 
payable under the scheme in respect of the 
remaining 80% of the scheme’s liabilities. This is 
further to the purchase of a bulk annuity policy for 
20% of the scheme liabilities in December 2022. 
Exceptional P&L costs in 2025 in relation to strategic 
projects and the footwear acquisition synergies are 
expected to be minimal, following completion of  
the actions in respect of those initiatives.  
The remaining cash exceptional costs of up to 
around $7 million (net of property proceeds) in 
relation to the strategic project actions are expected 
to be incurred in 2025, keeping overall project cash 
costs within the $50 million total project guidance 
for $75 million total savings. In addition, the 
remaining cash costs in relation to the Toluca plant 
closure of around $6 million will be incurred in 2025.
Cash flow
The Group delivered a strong adjusted free cash 
flow of $153 million (2023: $131 million), driven by 
improved profitability as a result of market recovery 
and a return to normalised levels of working capital, 
as well as some one-off timing benefits such as tax 
payments and VAT receipts. Adjusted free cash flow 
is measured before acquisitions, disposals and 
dividends, and excludes exceptional items.
We have continued to manage net working capital 
closely, with a focus on inventory (inventory days 
down by four days during the year), without 
compromising service levels. We also continued our 
disciplined approach to payables and receivables 
management during the year as an input to working 
capital efficiency. 
Capital expenditure was $28 million (2023: $31 
million) as we continued to maintain a selective 
approach to investing in growth opportunities and in 
strategic projects which will favourably impact long-
term returns. We anticipate 2025 full year capital 
Strategic project costs of $27 million relate to the 
strategic initiatives commenced during 2022; and 
primarily consist of severance costs of $7 million, 
legal / advisor / closure costs of $12 million, and non-
cash asset impairments of $8 million. These costs 
have supported the acceleration of project benefits, 
with $10 million of incremental adjusted EBIT 
delivered in the year (with $67 million incremental 
savings on the projects to date). These costs 
include the activities in relation to our Footwear 
division footprint transition in Europe where we are 
consolidating two sites into one in order to drive 
operating efficiencies, and the expansion of our 
Indonesian operations in a strong footwear industry 
growth market.
A $15 million charge was incurred in relation to the 
rightsizing of the North American Yarns footprint 
(Toluca) to align to long-term demand expectations, 
and consisted of $1 million of severance costs, $10 
million of non-cash impairment charges on PPE and 
right-of-use lease facilities and $5 million of advisor 
/ decommissioning fees. Expected cash costs of this 
closure are $8 million. 
A further $1 million of costs have been incurred in 
relation to the delivery of the Footwear acquisition 
synergies, which has now yielded annualised 
savings of $22 million, significantly ahead of the 
original $11 million target. 
Other acquisition-related items of $25 million 
consisted of the amortisation charges from the 
newly recognised intangible assets from the  
Texon and Rhenoflex acquisitions, and the 
amortisation of intangible assets acquired with 
previous acquisitions. 
As a result of the buy-in, all the financial and 
demographic risks relating to the scheme’s liabilities 
are now fully hedged, with the two policies paying 
the scheme a regular stream of income that matches 
its pension payments to all members.
This buy-in is the final and most significant step in 
Coats fully insuring its UK pension obligations. 
Subject to customary post-transaction data 
reconciliations and the scheme liquidating certain 
assets in order to meet a deferred element of the 
PIC premium, it will also give Coats the option to 
remove the scheme fully from the Group balance 
sheet in the future at very limited further 
administrative cost.  
The agreement with PIC is anticipated to require up 
to c.£100 million ($128 million) of additional funding 
from the Group, with Coats making a £70 million 
($90 million) upfront cash contribution to the scheme 
and a further £30 million ($38 million) provided 
initially as a loan to the scheme. The £100 million 
cash contribution was made in H2 2024.
As previously reported, deficit repair contributions  
to the scheme, of around $30 million per annum, 
were temporarily switched off in January 2024  
and will now permanently cease as a result of 
this agreement. 
Financial review cont.
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Coats Group plc Annual Report and Accounts 2024
At 31 December 2024, our leverage ratio (net debt to 
EBITDA; both excluding lease liabilities) remains well 
within our 3x covenant limit, and towards the middle 
of our target leverage range of 1-2x. 
There was also significant headroom on our interest 
cover covenant at 31 December 2024 which was 
11.4x, with a covenant limit of greater than 4x.  
The covenants are tested twice annually in June  
and December and monitored throughout the year.
Going concern
On the basis of current financial projections and  
the facilities available, the Directors are satisfied  
that the Group and the Company has sufficient 
resources to continue in operation for the period 
from the date of this report to 30 June 2026, and, 
accordingly, consider it appropriate to adopt the 
going concern basis in preparing the financial 
statements. Further details of our going concern 
assessment, financial scenarios and conclusions  
are set out in Note 1. 
This Strategic Report was approved by order of 
the Board.
On behalf of the Board
David Paja
Group CEO
5 March 2025
Balance sheet and liquidity
Group net debt (excluding lease liabilities) at  
31 December 2024 was $449 million ($533 million 
including lease liabilities), which was above  
31 December 2023 ($384 million). This reflects 
strong and disciplined cash management as noted 
above, offset by residual exceptional cash costs in 
relation to strategic projects, shareholder dividends, 
and the UK pensions settlement during H2.  
During 2024, we successfully refinanced our 
revolving credit facility with our banks (increased  
by $60 million to $420 million) and replaced the 
original $125 million 2017 tranche of USPP notes 
with $250 million 6 to 10 year notes at attractive 
investment grade rates. This leaves our total 
committed debt facilities at $1,020 million with well 
diversified source and tenor; being $420 million 
revolving credit facility, and $600 million USPP 
notes (with a range of remaining tenors between  
3 and 10 years). The committed headroom on our 
banking facilities was approximately $420 million  
at 31 December 2024. 
Financial review cont.
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Coats Group plc Annual Report and Accounts 2024
Chair’s introduction to governance
David Gosnell
Chair
 
I am pleased to introduce the 
Governance report for the year 
ended 31 December 2024. This 
report summarises how the Board 
and our governance structures 
have supported Coats in seeking  
to achieve our strategic goals and 
deliver long-term sustainable 
success for our stakeholders.”
HIGHLIGHTS FOR 2024
The year in review
Following the significant transformation of the 
business in recent years, during 2024 the Board has 
particularly focussed on ensuring that there is the 
right leadership, and the desired culture and risk 
management approach, embedded at all levels of 
the business. This will continue our momentum and 
enable our growth ambitions, building on the strong 
foundations that we have developed during a period 
of significant demand volatility.
Leadership
As I mentioned in my Chair’s statement, 
implementing effective succession and providing 
support in relation to the Board changes has been a 
priority this year. In 2024, Steve Murray became our 
Senior Independent Director and Sarah Highfield 
assumed the position of Chair of the Audit and Risk 
Committee. This followed Nicholas Bull stepping 
down from the Board at the 2024 AGM after serving 
as a Director for nine years. In May 2024, we 
announced that David Paja would join the Board in 
September 2024, and become Group CEO in 
October 2024. This followed Rajiv Sharma stepping 
down from the Board as mutually agreed to facilitate 
an orderly succession process.
In August 2024, we announced that Srinivas Phatak 
would join the Board as a Non-Executive Director in 
September 2024 and would also join the Audit and 
Risk Committee and the Nomination Committee. 
Most recently, on 7 January 2025, we announced 
that Hannah Nichols will join the Board as Group 
Chief Financial Officer designate and an Executive 
Director on 24 April 2025 and will succeed Jackie 
Callaway as Group Chief Financial Officer at the 
conclusion of the 2025 AGM. I would like to thank 
Jackie for her contributions, and I look forward to 
working with Hannah.
I would also like to thank Nicholas and Rajiv once again 
for their commitment and service to the Company 
during their tenure. I have enjoyed working with Steve 
and Sarah in their new roles, and I am delighted to 
welcome Srinivas to the Board. I am confident that we 
will continue to have the effective and resilient 
leadership required to achieve our ambitions. You can 
read more about our succession planning processes in 
the Nomination Committee report on pages 83 to 85. 
Biographical details for the Board are set out on pages 
68 to 70.
A summary of how we have applied the principles of 
the UK Corporate Governance Code is set out below.
Subject matter
Page(s)
Board leadership and Company purpose
Promoting the long-term sustainable success  
of the Company
13 to 20
Generating value for shareholders
14 to 38
Contributing to wider society
15 to 16, 44 to 46
Purpose, values and strategy, and how  
these and our culture are aligned
13 to 22 and 74
Resources available to allow Coats  
to meet its objectives and measure  
performance against them
39 to 40
Control framework
80 
Stakeholder engagement
44 to 46
Workforce policies and practices
24 and 43
Division of responsibilities
The Chair
67
Board roles
67
Non-Executive Directors
67
Information and support
67 and 72
Composition, succession and evaluation
Succession planning
84 to 85
Board diversity
 85
Board evaluation
65 and 76
Audit, risk and internal control
Independence and effectiveness of internal  
and external audit functions
80 to 82
Fair, balanced and understandable reporting
79
Principal risks
50 to 56
Remuneration
Remuneration policies and practices that  
support strategy and promote long-term  
sustainable success
86 to 105
A formal and transparent procedure  
for developing policy on executive  
remuneration
86 to 105
Exercise independent judgement and  
discretion when authorising remuneration  
outcomes
86 to 105
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Coats Group plc Annual Report and Accounts 2024
Chair’s introduction to governance cont.
understanding were suitably robust. You can read more 
about our approach to risk management in the Principal 
risks and uncertainties report on pages 50 to 56.
Culture, ESG and DEI
Our culture is a key component to enable us to make 
progress with our strategic plans. The Board has a 
critical role in monitoring the degree to which culture 
and values are embedded within the Group. The 
Board monitors cultural and diversity metrics at each 
Board meeting, has detailed people-related sessions 
throughout the year and ensures that management 
is appropriately following up and intervening when 
inconsistent working behaviours are identified. You can 
read more about the Board and culture on page 74.
Sustainability at Coats, including climate-related 
governance, continues to be led by the Board and 
supported by the Sustainability Committee. Strategy 
development and monitoring of action plans at 
an executive level is championed by the Group 
CEO and the whole Group Executive Team (GET). 
The responsibilities for each element of our ESG 
activities are set out in the Committees’ section 
(see page 72). Our independent Non-Executive 
Directors play a large role in the Board’s ESG 
oversight, including through Committee membership 
and designated responsibilities at Board level.
Further details of the Group’s stance and focus 
on ensuring effective stewardship in respect of 
key ESG matters are set out in the Sustainability 
section of this Annual Report, and also in our 
Sustainability Report (available on www.coats.
com/sustainability). The Board is delighted 
that the Group has published external limited 
assurance on its ESG-related data this year. 
You can also review our report on our compliance with 
the Task Force on Climate-related Financial Disclosures 
(TCFD) recommendations on pages 182 to 198.
Board evaluation
In 2024, an internal review process of the Board 
and all of its Committees was undertaken to assess 
their composition, dynamics, scope of work and 
effectiveness. In a year of changing leadership, this 
process was critically important in ensuring that 
we continued to operate effectively. As usual, we 
assessed the outcomes of previous reviews to ensure 
that suitable progress had been achieved. Focus areas 
for 2025 were also identified.
Our process for conducting a further standalone 
extensive appraisal for each Non-Executive Director 
that has served for a further term of three years from 
either election or from their last full appraisal has 
continued. The Board remains satisfied with its own 
performance and the standalone appraisal exercise 
rated all Board members’ performances positively.  
You can read more about these areas on page 76  
and in the individual Committee reports.
David Gosnell
Chair
5 March 2025
>16,000 PERMANENT EMPLOYEES SPREAD  
ACROSS 50+ COUNTRIES
In last year’s Annual Report, the Board set out its 
plans for the succession of the role of Chair. In a 
process led by the Senior Independent Director, 
from which the Chair recused himself, and in 
consultation with our shareholders, it was 
proposed to extend David Gosnell’s term for up 
to three years (subject to annual re-election).
In line with that previously communicated plan, 
the Board is proposing David’s re-election as 
Chair. David has now served as a Director for ten 
years, although has only served as Chair since 
May 2021. The Board believes this is 
appropriate, in line with provision 19 of the Code, 
in particular in light of the recent and 
forthcoming transitions of the Executive Director 
roles and the recent period of significant 
transformation of the Group. 
You can find full details of the process that has 
been undertaken to consider the proposal for 
David’s re-election in the Nomination Committee 
report on page 85 and in the Notice of AGM.
THE UK CORPORATE GOVERNANCE CODE
Compliance statement 
Coats has applied all of the principles and complied 
with all the relevant provisions of the 2018 UK 
Corporate Governance Code (Code) during the 
course of the year ended 31 December 2024.
A summary of how we have applied the 
principles set out in the Code is presented in the 
table on page 64.
Risk
Operating in a dynamic business environment 
requires the Board to have a robust and pragmatic 
risk management approach. Thanks to the hard work 
undertaken over a number of years, the Board was 
pleased to announce the final de-risking of the Coats 
UK Pension Scheme as a result of the purchase of a 
bulk annuity policy as announced in September 2024. 
During 2024, the Audit and Risk Committee has 
overseen the review of the Group Internal Audit function 
which has resulted in the realignment of the scope and 
focus of that function as well as implementing changes 
in its resourcing. The Audit and Risk Committee 
has also spent significant time considering the 
requirements of the 2024 UK Corporate Governance 
Code, which has applied since 1 January 2025. You 
can read more about both of these subjects in the 
Audit and Risk Committee report on pages 77 to 82. 
The Board itself has also conducted various in-depth 
discussions on the topic of cyber security, a continued 
area of focus. This culminated in the Board participating 
in a simulation exercise to ensure our processes and 
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Coats Group plc Annual Report and Accounts 2024
Strategic goal
ACCELERATE PROFITABLE SALES GROWTH
 Read more on page 13
TRANSFORM THE BUSINESS
 Read more on page 13
CREATE VALUE
 Read more on page 13
Key stakeholders
The Board’s governance role
The Board approves the Group’s strategy and annual operating plan, reviews 
subsequent progress and makes decisions related to matters reserved for the 
Board in order to support the delivery of this strategy.
The Board reviews the strategy for sustainable growth and leverages its 
collective experience to advise on related matters.
The Board reviews key proposals relating to business capability.
HOW GOVERNANCE SUPPORTS STRATEGY
Stakeholders key
Corporate governance report
EMPLOYEES
CUSTOMERS
SHAREHOLDERS
ENVIRONMENT
COMMUNITIES
SUPPLIERS
Board discussions during 2024
Strategy
–	 Annual strategy day focussing on key strategic matters including India and Indonesia, review of asset utilisation,  
talent and sustainability.
–	 Regularly reviewed performance against strategy. 
–	 Reviewed Group’s tax strategy and policy. 
–	 Carried out deep-dives into each division, which considered strategy, market update and outlook, review of retail 
segments/customer developments, performance against competitors, sustainability, innovation and internal talent.
–	 Received reports on macro-economic environment and geopolitical developments. 
–	 Considered and approved of footprint changes – including Germany, India, Mexico and UK –  
and reviewed potential M&A pipeline.
–	 Reviewed analyst and broker presentations.
Operational
–	 Update on markets and divisional performance presented at every Board meeting.
–	 Reviewed, approved and regularly monitored annual operating plan and Medium Term Plan.
–	 Reviewed and approved refinancing arrangements for USPP and Revolving Credit Facility.
–	 Deep dives into cyber security including simulation exercise. 
–	 Reviewed the Company’s capital allocation and considered, and approved, interim and final dividends. 
–	 Consideration of going concern and long-term viability statement.
ESG
–	 Tracking of ESG (including H&S, GPTW® and diversity) metrics at every Board meeting via Group CEO dashboard 
to ensure appropriate progress against internal and external targets.
–	 Received reports on workforce engagement, culture and results of the Your voice Matters survey.
–	 Oversaw preparations for external limited assurance on ESG-related data at the Audit and Risk Committee.
–	 Reviewed succession plans and talent strategy, including updates on Coats for All and Coats for Her at both Board 
and Nomination Committee meetings.
–	 Conducted extensive assessment of all employee reward and living wage commitment at the 
Remuneration Committee.
–	 Deep dive into talent pools for below-GET level succession including reviews of diversity and 
suggestions for development opportunities.
–	 Reviewed Group Internal Audit function at the Audit and Risk Committee.
Governance
–	 Approved appointment of David Paja as an Executive Director and Group CEO, and of Srinivas Phatak as a  
Non-Executive Director, and changes to the GET to be effective in 2025. Group Chief Financial Officer transition 
announced in January 2025. 
–	 Reviewed interactions with investors at every Board meeting.
–	 Quarterly whistleblowing and fraud report reviews and consideration of remedial actions.
–	 Deep dive into each division’s internal controls and risk management processes at the Audit and Risk Committee.
–	 Reviewed Group Supplier Code compliance and Supplier payment terms at the Audit and Risk Committee.
–	 Preparation for the implementation of the 2024 UK Corporate Governance Code.
–	 Reviewed insurance arrangements and risk register, including risk trends.
–	 Received reports in relation to material legal matters, including disputes and regulatory and 
governance developments. 
–	 Regular reports from the Chairs of the Audit and Risk Committee, Nomination Committee, 
Remuneration Committee and Sustainability Committee. 
–	 Reviewed and approved of key Board and Group policies including Modern Slavery.
–	 Reviewed Board and Committee effectiveness, including action tracking.
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Coats Group plc Annual Report and Accounts 2024
Corporate governance report cont.
GOVERNANCE STRUCTURE:
Our governance framework enables effective decision making and 
ensures collaboration between the Board, its Committees and the 
GET while also maintaining clear separation of key Board roles to 
ensure the correct division of responsibilities.
AUDIT AND RISK COMMITTEE
 See page 77 for more information.
NOMINATION COMMITTEE
 See page 83 for more information.
REMUNERATION COMMITTEE
 See page 86 for more information.
SUSTAINABILITY COMMITTEE
 See page 72 for more information.
GROUP CHIEF FINANCIAL OFFICER
 See biography on page 68.
–	 Responsible for financial management 
and implementing and monitoring effective 
financial controls.
–	 Supports the Group CEO in developing 
and implementing the Company’s strategy.
–	 Oversees relationships with the investment 
and banking community.
 See page 84 for more information on the succession 
process for the Group Chief Financial Officer.
GROUP CEO
 See biography on page 68.
–	 Responsible for Executive Management of the 
Group as a whole.
–	 Leads the GET (see page 71).
–	 Delivers strategic and commercial objectives within 
the parameters agreed by the Board and within the 
Board’s stated risk appetite (see pages 50 to 56 for 
more details on key risks).
–	 Builds positive relationships with all the Group’s 
stakeholders (see pages 44 - 46).
 See page 84 for more information on the succession process for 
the Group CEO.
NON-EXECUTIVE DIRECTORS
–	 Contribute to developing our strategy.
–	 Scrutinise and constructively challenge the 
performance of management in the execution 
of our strategy.
–	 Responsible for the governance of the 
Company.
–	 Bring their diverse expertise to the Board and 
the Board Committees.
–	 Devote such time as is necessary to the proper 
performance their duties.
SENIOR INDEPENDENT DIRECTOR
–	 Provides a sounding board to the Chair.
–	 Leads the appraisal of the Chair’s performance 
with the other Directors annually.
–	 Acts as an intermediary for other Directors, 
if needed.
–	 Available to respond to shareholder concerns 
if contact through the normal channels is 
inappropriate.
CHAIR
–	 Primarily responsible for the overall 
effectiveness of the operation, leadership 
and governance of the Board.
–	 Leads the Board, sets the agenda and 
promotes a culture of open debate between 
Executive and Non-Executive Directors. 
Ensures that there is a focus on Board 
succession plans to maintain continuity 
of skilled resource. Responsible for CEO 
succession.
–	 Provides advice and acts as a sounding board 
to the Board and management. Has open and 
regular contact and interaction with the CEO.
–	 Ensures effective communication with our 
shareholders. 
COMPANY SECRETARY
–	 Provides support to the Board and ensures 
information is made available to the Board in 
a timely manner.
–	 Supports the Chair on meeting management 
arrangements including setting the agenda for 
the Board, administering effectiveness reviews, 
ensuring appropriate Board training and 
coordinating Board inductions.
–	 Provides advice on corporate governance 
matters.
All Directors have access to the advice of the 
Group Company Secretary.
THE BOARD OF DIRECTORS
The Board is collectively responsible for the long-term 
success of the Group and for ensuring leadership within 
a framework of effective controls. The key roles of the 
Board are:
–	 setting the strategic direction of the Group, 
including consideration of strategic acquisitions 
and divestments;
–	 overseeing implementation of the strategy and 
monitoring performance by ensuring that the Group 
is suitably resourced to achieve its aspirations;
–	 overseeing returns to shareholders and monitoring 
the share price;
–	 encouraging entrepreneurial leadership by providing 
a framework of prudent and effective controls which 
enables risk, including risk tolerance, to be assessed 
and managed, supported by robust systems of 
governance, ethics and compliance; 
–	 engaging appropriately with stakeholders to 
understand their views; and 
–	 setting and monitoring the Group’s culture, 
supported by its values, and ensuring alignment 
with the Company’s purpose and strategy. 
 See page 66 for examples of discussions of key strategic topics 
at Board meetings in 2024.
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Coats Group plc Annual Report and Accounts 2024
Board of Directors as at 31 December 2024
David Gosnell OBE
Chair of the Board
British
Appointed as a Non-Executive Director on 2 March 2015,  
Chair of the Board since 19 May 2021
David Paja
Group CEO
Spanish
Appointed as an Executive Director on 1 September 2024, 
Group CEO since 1 October 2024.
Jackie Callaway
Group Chief Financial Officer
New Zealander
Appointed as an Executive Director on 1 December 2020,  
Group Chief Financial Officer since 1 April 2021
Key skills and experience
–	 Strong and deep supply and procurement background in global 
multinational companies
–	 International and strategic mindset
Key skills and experience
–	 Over 30 years of leadership in automotive, aerospace & defence, and 
fire & security industries
–	 Proven success in scaling new technologies, turning around 
businesses, and driving substantial growth
–	 Expertise in managing global operations across nine countries and 
three continents
Key skills and experience
–	 Strong finance track record
–	 Experience across multinational manufacturing and supply 
chain businesses
Previous experience and external appointments
Was previously Chair of Old Bushmills Distillery Company Ltd and a 
Non Executive Director of Brambles Ltd. David retired from Diageo plc 
in 2014 where he had most recently held the role of President of Global 
Supply and Procurement. Prior to joining Diageo, David spent 25 years 
at HJ Heinz in various operational roles.
Previous experience and external appointments
David was CEO of GKN Aerospace, part of Melrose Industries PLC, 
where he played a major role in the successful turnaround of the 
business and delivery of profitable growth. Prior to this, David held 
senior leadership positions at Aptiv, Honeywell and Valeo.
Previous experience and external appointments
Non-Executive Director of IMI plc. Member of Australian Institute of 
Company Directors since 2017.
Previously Chief Financial Officer of Devro plc, one of the world’s 
leading manufacturers of collagen products for the food industry. Prior 
to that, Jackie was Group Financial Controller of Brambles Ltd, the ASX 
top 20 supply chain logistics company
Qualifications
David is a Fellow of the Institute of Engineering and Technology and 
holds a Bachelor of Science degree in Electrical and Electronic 
Engineering from Middlesex University. He has completed Supply Chain 
Manufacturing – Drive Operational Excellence at INSEAD (Singapore).
 See the Nomination Committee report on page 83 and an overview  
of the activities of the Sustainability Committee on page 72.
Qualifications
David holds an Engineering degree from the University of Valladolid,  
as well as an MBA from INSEAD.
 See the Group CEO’s statement on page 7.
Qualifications
Jackie is a Fellow of the Chartered Accountants Australia and New 
Zealand, and of the Institute of Chartered Accountants in England and 
Wales. She has a Bachelor of Business Management Studies from the 
University of Waikato, New Zealand.
As announced on 7 January 2025, Jackie will step down from the Board 
and as Group Chief Financial Officer at the conclusion of the 2025 AGM 
as part of a mutually agreed succession process. Jackie will be 
succeeded by Hannah Nichols, who will join the Board as an Executive 
Director and Group Chief Financial Officer designate on 24 April 2025.
Key to Committee memberships
	 Committee chair
A 	 Audit and Risk
N 	 Nomination
R 	 Remuneration
S 	 Sustainability
N
S
S
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Coats Group plc Annual Report and Accounts 2024
Board of Directors cont.
Stephen (Steve) Murray
Senior Independent Non-Executive Director
British
Appointed as a Non-Executive Director on 1 September 2022, 
Senior Independent Non-Executive Director since 22 May 2024
Sarah Highfield
Independent Non-Executive Director
British
Appointed 1 November 2023
Hongyan Echo (Echo) Lu
Independent Non-Executive Director
British/Chinese
Appointed 1 December 2017
Key skills and experience
–	 More than 30 years’ experience in the apparel and footwear industry
–	 Strong background in general management and track record of 
delivering positive change globally and regionally
Key skills and experience
–	 Strong finance track record
–	 Significant experience of driving growth globally, including in the 
US and China
Key skills and experience
–	 Global business experience gained in different sectors in Europe, 
Asia and the US
–	 Strong background in general management and track record  
of building strong teams and delivering positive change
Previous experience and external appointments
Previously Global Brand President of The North Face and a member 
of the group executive leadership team at VF Corporation, one of the 
world’s largest apparel, footwear and accessories companies and the 
parent company of The North Face, Timberland and Vans. Steve 
previously served as CEO of Airwair International (Dr. Martens, the 
iconic British footwear brand), and prior to that he served as Global 
Brand President of Vans, Global Brand President of Urban Outfitters 
and EMEA President of Deckers Brands.
Previous experience and external appointments
Chief Financial Officer of Away Resorts Ltd, a UK holiday parks business. 
Previously Chief Executive Officer of Elvie, the female technology firm, 
having previously served as Chief Operating Officer & Chief Financial 
Officer and Deputy Chief Executive Officer. Sarah was also a Non-
Executive Director and Chair of the Audit Committee at Seraphine Group 
plc, which was listed on the main market from 2021 to 2023. Prior to 
joining Elvie, Sarah was Group Chief Financial Officer at Costa Coffee for 
over five years, including during the c£3.9billion sale to The Coca-Cola 
Company. She was also Chief Financial Officer of Tesco’s Hungary and 
Slovakia businesses.
Previous experience and external appointments
Managing Director, UK and ROI, of Sonova Group AG, the global leader 
for innovative hearing solutions. Previously Chief Executive Officer 
of Haulfryn Group Ltd, a UK leisure business, Managing Director, 
International of Holland & Barrett International and Managing Director 
of Homebase Ltd as part of Home Retail Group plc. Echo spent ten 
years at Tesco plc in a variety of senior leadership roles. Echo was a 
Non-Executive Director of Dobbies Garden Centres and was a member 
of the Advisory Board for Diversity in Hospitality, Travel and Leisure.
Qualifications
Steve holds a bachelor’s degree in Business Studies from Middlesex 
University, England.
Qualifications
Sarah has a BSc in Mathematical Sciences from the University of 
Birmingham and is a qualified accountant, Chartered Institute of 
Management Accountants.
Sarah was appointed as Chair of the Audit and Risk Committee on 22 
May 2024 having succeeded Nicholas Bull, who stepped down from the 
Board at the conclusion of the 2024 AGM. Sarah brings extensive 
financial experience through her previous roles with global businesses. 
 See the Audit and Risk Committee report on page 77.
Qualifications
Echo has a Bachelor of Arts in International Economy and Finance 
from Fudan University, Shanghai and a Master of Science in Industrial 
Relations and Human Resources from West Virginia University.
Echo was appointed as Chair of the Remuneration Committee on 
1 May 2021, having served on the Remuneration Committee since 
her appointment to the Board in December 2017. Her background 
and qualifications in Industrial Relations and Human Resources provide the 
Company with an ideally experienced Chair of the Remuneration Committee.
 See the Remuneration Committee report on page 86.
N
R
A
N
S
N
R
A
Key to Committee memberships
	 Committee chair
A 	 Audit and Risk
N 	 Nomination
R 	 Remuneration
S 	 Sustainability
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Coats Group plc Annual Report and Accounts 2024
Board of Directors cont.
Srinivas (Srini) Phatak
Independent Non-Executive Director
Indian
Appointed 1 September 2024
Frances (Fran) Philip
Independent Non-Executive Director, Designated  
Non-Executive Director for Workforce Engagement
American
Appointed 1 October 2016
Jakob Sigurdsson
Independent Non-Executive Director
Icelandic
Appointed 1 October 2020
Key skills and experience
–	 Extensive technical and commercial finance expertise
–	 Strong track record of driving competitive and sustainable growth 
across categories and markets and leading enterprise-wide 
transformation programmes
Key skills and experience
–	 Extensive speciality retailing business experience
–	 Deep background in product innovation, design and development
–	 Workforce dynamics experience
Key skills and experience
–	 International business experience across a diverse range of sectors 
with particular emphasis on growth in new or developing markets
–	 Strong background in general management and track record of 
delivering positive change
Previous experience and external appointments
Acting Chief Financial Officer for Unilever Plc. Srinivas has over 28 years 
of experience in the consumer products industry, working in the US, 
Europe, LATAM and India. During 2017 and 2021, Srinivas was Chief 
Financial Officer and Executive Director of Hindustan Unilever Limited, a 
Unilever subsidiary listed in India with a market capitalisation of over € 
60bn. His other Unilever experiences include heading financial shared 
services, leading finance for supply chain in the Americas, large-scale 
M&A (including integration) and heading global treasury operations for 
Asia.
Previous experience and external appointments
Non-Executive Director of Vera Bradley Inc. and Sea Bags. Previously 
Fran worked for The Gap, Williams Sonoma, The Nature Company, and 
LL Bean, where she initially served as Director of Product Development, 
Home Furnishings, going on to hold a number of roles including Vice 
President, Affiliated Brands, before becoming Chief Merchandising 
Officer until her retirement. Fran was previously a Non-Executive 
Director of Regent Holdings, Totes Isotoner and Vista Outdoor Inc, and 
an industry executive for Freeman Spogli.
Previous experience and external appointments
Chief Executive Officer of Victrex plc, an innovative world leader in 
high-performance polymer solutions. Jakob has more than 20 years’ 
experience in large multinational companies, both listed and private, 
including nine years with Rohm & Haas (now part of Dow Chemical) in 
the US, as well as Chief Executive of food manufacturer Alfesca in 
Europe and Chief Executive of Promens.
Between September 2016 and June 2017, Jakob was Chief Executive 
Officer of VÍS, the largest Icelandic insurance and reinsurance company. 
He has held various Non-Executive roles and was a Member of the 
University of Iceland Council and a Non-Executive Director of the 
Icelandic Technology and Development Board.
Qualifications
Srinivas has a postgraduate qualification in finance. He is a qualified 
accountant with professional degrees from the Institute of Chartered 
Accountants (ICAI) and the Institute of Cost Accountants (ICMAI).
Qualifications
Fran has a degree in English and Sociology from Bowdoin College, 
Maine, and an MBA from the Harvard Business School.
 See an overview of the activities of the Designated Non-Executive 
Director for Workforce Engagement on page 74.
Qualifications
Jakob has a BSc in Chemistry from the University of Iceland and an MBA 
from the Northwestern University.
S
N
N
R
A
A
N
Key to Committee memberships
	 Committee chair
A 	 Audit and Risk
N 	 Nomination
R 	 Remuneration
S 	 Sustainability
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Coats Group plc Annual Report and Accounts 2024
Group Executive Team (GET) as at 31 December 2024
Adrian Elliott
CEO, Apparel Division and Group 
Chief Commercial Officer
Stuart Morgan
Chief Legal & Risk Officer and 
Group Company Secretary
Soundar Rajan
CEO, Performance Materials 
Division
Farnaz Ranjbar
Chief Human Resources Officer
Frederic Verague
CEO, Footwear Division
Read about Apparel on page 27
Read about our principal risks and 
uncertainties on page 50
Read about Performance Materials on page 35
Read about People and Culture on page 23
Read about Footwear on page 31
–	 Responsible for the overall performance of 
the Apparel division including delivery of the 
division’s strategy, and the financial and 
non-financial KPIs.
–	 Responsible for all of the commercial and 
operational activities in the Apparel division.
–	 Drives innovation and sustainability delivery 
in line with Group objectives and strategy.
–	 Adrian also serves on the Board of Twine, a 
technology start-up, and chairs Coats Digital.
–	 Responsible for legal and compliance, 
governance, risk management and company 
secretarial matters.
–	 Responsible for the overall performance of 
the Performance Materials division including 
delivery of the division’s strategy, and the 
financial and non-financial KPIs.
–	 Responsible for all of the commercial and 
operational activities in the Performance 
Materials division.
–	 Drives innovation and sustainability delivery 
in line with Group objectives and strategy.
–	 Responsible for delivering the global Human 
Resources strategy, including performance 
management, progression planning, reward 
and talent acquisition.
–	 Responsible for the overall performance of 
the Footwear division including delivery of 
the division’s strategy, and the financial and 
non-financial KPIs.
–	 Responsible for all of the commercial and 
operational activities in the Footwear 
division.
–	 Drives innovation and sustainability delivery 
in line with Group objectives and strategy.
David Paja
Group CEO 
See biography on page 68
–	 Responsible for executive management of 
the Group as a whole and is accountable for 
the overall performance of the Group. 
–	 Delivers strategic and commercial objectives 
within the Board’s stated risk appetite (see 
page 50 for more detail on key risks). 
–	 Builds positive relationships with all the 
Group’s stakeholders (see page 44).
Jackie Callaway
Group Chief Financial Officer
See biography on page 68
–	 Responsible for financial management and 
implementing and monitoring effective 
financial controls. 
–	 Supports the Group CEO in developing and 
implementing the Company’s strategy. 
–	 Oversees relationships with the investment 
and banking community.
The Group Executive Team, or GET, is the body through which the Group CEO exercises 
the authority delegated to him by the Board. The Group CEO leads the GET and has 
executive responsibility for the management, development and performance of the 
business. The Group CEO, Group Chief Financial Officer and the GET also take the lead in 
developing the strategy for review, constructive challenge and approval by the Board as 
part of the annual strategy review process.
CHANGES TO THE GET:
–	Adrian Elliott was appointed Group Chief Commercial Officer effective from 1 July 2024.
–	Soundar Rajan retired from Coats Group plc on 31 December 2024. Pasquale Abruzzese 
joined Coats Group plc on 13 January 2025 and succeeded Soundar as CEO, 
Performance Materials Division and he is also Group Chief Operations Officer.
–	Hannah Nichols will succeed Jackie Callaway as Group Chief Financial Officer at the 
conclusion of the 2025 AGM.
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Coats Group plc Annual Report and Accounts 2024
Corporate governance
BOARD COMMITTEES
Our governance framework enables effective decision making and ensures collaboration between the Board, its Committees and the GET.
OTHER COMMITTEES
AUDIT AND RISK COMMITTEE
–	Oversees and monitors the integrity of the 
Company’s financial statements, accounting 
processes and audits (internal and external).
–	Ensures that risks are carefully identified and 
assessed, and that effective systems of risk 
management and internal control are in place and 
appropriately monitored.
–	Reviews matters relating to fraud.
–	Oversight of the governance-related element 
of ESG.
 See page 77 for more information. 
DISCLOSURE COMMITTEE
The Disclosure Committee oversees the Company’s 
compliance with its disclosure obligations.  
The Group CEO chairs the Committee, and its other 
members are the Group Chief Financial Officer and 
the Group Company Secretary.
GROUP RISK MANAGEMENT COMMITTEE (GRMC)
The GRMC is responsible for formulating risk 
management strategies and polices, and monitoring 
risk management throughout the Group. Its Chair is 
the Group CEO, and its membership is aligned to 
the GET.
 See page 71 for information on the GET.
ACQUISITION COMMITTEE
The Acquisition Committee is authorised to oversee 
specified projects by the Board when appropriate. 
The Group CEO chairs the Committee, and it 
includes the Group Chief Financial Officer and the 
Group Company Secretary.
NOMINATION COMMITTEE
–	Reviews the structure, size, composition and 
mix of skills and experience of the Board and 
its Committees.
–	Identifies and nominates suitable executive and 
non-executive candidates to be appointed to the 
Board and reviews the talent pool.
–	Considers wider elements of succession  
planning below Board level, including diversity 
and inclusion.
–	Oversight of the diversity and inclusion-related 
social element of ESG.
 See page 83 for more information. 
REMUNERATION COMMITTEE
–	Reviews and recommends the framework and 
policy for the remuneration of the Chair, the 
Executive Directors, the Company Secretary and 
senior executives, in alignment with the Group’s 
reward principles.
–	Reviews workforce remuneration and related 
policies, and alignment of incentives and rewards 
with culture, to help inform the setting of the 
Directors’ Remuneration Policy.
–	Consults with shareholders on the  
Remuneration Policy.
–	Considers the business strategy of the Group and 
how the Remuneration Policy reflects and 
supports that strategy.
–	Oversight of the remuneration-related social 
element of ESG.
 See page 86 for more information. 
SUSTAINABILITY COMMITTEE
–	Provides strategic oversight and monitors the 
execution of the Company’s sustainability strategy 
and initiatives.
–	Oversees, reviews and provides input as required 
to refine, enhance and accelerate the progress of 
the Company’s sustainability strategy, projects 
and targets.
–	Oversees the environmental and employee 
engagement-related social elements of ESG.
The Sustainability Committee is chaired by David 
Gosnell. During 2024 its other members were the 
Group CEO, Sarah Highfield (Independent Non 
Executive Director), Fran Philip (Independent Non 
Executive Director), the three Divisional CEOs and 
the Group Sustainability Director. 
The Committee was established in December 2021. 
Its terms of reference are reviewed annually and are 
available on coats.com.
The Committee met twice during 2024 and 
conducted an internal evaluation, which concluded 
it was working effectively with suggestions made 
for the 2025 workplan. 
See the Sustainability section (page 15 to 16) and the 
TCFD section (from page 182 of this Report, and the 
Sustainability Report (available from www.coats.
com/sustainability) for more information about our 
sustainability strategy and activities.
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Coats Group plc Annual Report and Accounts 2024
Corporate governance cont.
Conflicts of interest, independence, 
and external appointments
The Company has procedures in place for managing 
conflicts of interest, including situational conflicts 
of interest. Potential situational conflicts of interest 
are identified prior to appointment and the Board 
will consider and authorise these if appropriate. 
If a conflict of interest has been identified and 
approved, the Group Company Secretary ensures 
that the Director in question is absented from 
relevant discussions and/or decision making. 
Should an existing Director become aware that 
they, or any of their connected parties, have an 
interest in an existing or proposed transaction 
with the Company, they should notify the Board 
in writing or at the next Board meeting. Internal 
controls are in place to ensure that any related 
party transactions involving Directors, or their 
connected parties, are conducted on an arm’s 
length basis. Directors have a continuing duty to 
update the Board on any changes to these conflicts.
The Chair was considered to be independent on 
appointment. As set out in the 2025 Notice of 
AGM, David Gosnell has been proposed for re-
election as a Director and Chair, notwithstanding 
that he has been a Director for ten years. You can 
read more about this in the Nomination Committee 
report on page 85. There are currently nine 
Directors of the Company: the Chair, the Senior 
Independent Director, five other Independent 
Non-Executive Directors and two Executive 
Directors. The Board considers that all its Non-
Executive Directors continue to demonstrate 
independence and maintain constructive and 
challenging debate in the Boardroom.
During the course of the year, Board members 
continued to inform the Chair of any proposed  
new external appointments, and these were 
considered and approved by the Board, including 
consideration of any potential conflicts.  
The Group Company Secretary maintains a register 
of Interests and Conflicts to track the commitments 
of the Directors and ensure these are in line with 
overboarding guidance. The Board is satisfied that 
the external commitments of its Chair and members 
do not conflict with their duties as Directors of 
the Company and that any situational conflicts 
have been authorised in line with the process set 
out in the Company’s Articles of Association.
Articles of Association
The Articles of Association set out the rules agreed 
between shareholders as to how the Company is 
run, including the powers and responsibilities of  
the Directors.
Coats’ Articles of Association were approved for 
adoption at the 2021 AGM, and the Company 
considers that these reflect best practice and 
current legal and governance standards.
Service contracts
The Company maintains the terms of appointment 
of the Chair and Non-Executive Directors to ensure 
that they continue to meet the requirements of the 
Code. Details of the Executive Directors’ service 
contracts and the Chair’s and the Non-Executive 
Directors’ letters of appointment are set out in 
the Directors’ Remuneration Report on page 95. 
These documents are available for inspection 
at the registered office of the Company during 
normal business hours and at the AGM venue. 
These documents were reviewed during 2024 
and will continue to be reviewed regularly.
Committee terms of reference
The Board is assisted by four Board Committees 
to which it delegates matters as appropriate.
Each Committee has full terms of reference 
that are reviewed annually and have been 
approved by the Board and which can be found 
on our website at www.coats.com/en/ About/
Corporate-Governance/Board-Committees.
Directors indemnities
The Company maintains Directors’ and Officers’ 
liability insurance, which provides appropriate cover 
for any legal actions brought against its Directors.
Each Director has been granted indemnities 
in respect of potential liabilities that may be 
incurred as a result of their position as an 
officer of the Company. A Director will not be 
covered by the insurance or the indemnity 
in the event that they have been proven to 
have acted dishonestly or fraudulently.
Delegated authorities
The Coats Delegated Authorities policy is an internal 
document that sets out the delegations below 
Board level. It is reviewed and approved annually. 
It provides a structured framework to ensure the 
correct level of scrutiny of various decisions covering 
matters including contracts, capital expenditure, 
tax, treasury and human resourcing decisions.
SPOTLIGHT ON…
BOARD VISIT TO CHINA
The visit took place in October 2024 as part 
of the annual Board away week. The Board 
visited our factories in Shenzhen and Dongguan, 
and considered the developments in local 
operations including touring the new Footwear 
technical labs in Weiheng and Shilong. 
While in China the Board conducted in-depth 
reviews of current local strategies, operations and 
technology. The Board received briefings from 
external advisors on the Chinese market including 
the macro environment, customers, suppliers, 
industry dynamics and consumer trends. There 
was also a tour of a local customer’s operations.
The Board visit coincided with the 20th-
anniversary celebration of the Coats 
Shenzhen factory’s opening and the Board 
joined the celebrations with local employees. 
David Paja led a ‘Town Hall’ with colleagues 
from Shenzhen, Qingdao, Shanghai, Hong 
Kong, Korea, and Japan attending. 
The trip was inspiring for both the Board and 
the local employees, exciting everyone about 
the future opportunities for Coats in China.
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Coats Group plc Annual Report and Accounts 2024
Corporate governance cont.
THE BOARD AND CULTURE
The Board assesses and monitors our 
inclusive culture to ensure it supports the 
delivery of our strategy and our long-term 
sustainable success, generating value for 
shareholders, whilst being characterised by 
our values and guided by our purpose.
How the Board monitored culture in 2024
–	Site visits and employee events – Directors are 
encouraged to visit the group’s offices and 
operations in different regions so that they can 
get a better understanding of the business and 
interact with the workforce. In 2024, Board  
visits included: 
–	the Board trip to China (see page 73),  
which included tours of several of our  
factories/operations and participation in 
employee events.
–	the Global Leadership Conference, at which 
Directors that attended had the opportunity to 
visit operations and discuss local and Group 
strategic and cultural issues with management 
and the members of the workforce. 
–	additional site visits by Directors, including the 
Group CEO and the Group Chief Financial 
Officer, to Indonesia and the US.
–	Designated Non-Executive Director for 
Workforce Engagement visits and calls  
(see right).
–	Employee engagement survey and Great Place 
To Work® feedback – The Board receives reports 
from the Chief HR Officer on the results of the 
global annual ‘Your Voice Matters’ survey and on 
the insights from our work with Great Place To 
Work®, including levels of engagement, employee 
perceptions, and any themes raised. The results 
also give visibility of areas on which management 
must continue to focus on a global and local basis. 
(read more about our results on pages 24 and 40).
–	Information reported and discussed at Board, 
Committee and strategy meetings – The Board 
reviews key metrics relating to health and safety 
(including the outcomes of investigation reports 
where relevant), DEI, Great Place To Work® 
certification and sustainability at every meeting. 
There are also regular updates on progress 
relating to the Group’s employee development/
succession planning and DEI-related internal 
initiatives (e.g. Coats for All and Coats for Her). 
The insights from supplier audits, and cultural 
impacts resulting from the outcomes agreed, are 
considered at the Audit and Risk Committee (read 
more from page 77). Divisional updates are 
provided on relevant strategic, talent, cultural and 
risk-related matters at least annually to the Board 
and, where relevant, its Committees to further 
assist the assessment of culture at a Group level. 
–	Whistleblowing (reporting of concerns) – Regular 
reports are provided to the Board and the Audit 
and Risk Committee, providing information and 
data on reported allegations of Group policies, 
including those received through our confidential 
and externally hosted whistleblowing service. 
These reports also include analyses of trends, 
investigation status reports and closure rates, and 
summaries of actions taken. This information 
enables the Board to identify common issues and 
assess how embedded our purpose, values and 
culture are across our business.
–	Policies and ways of working* – The Board and its 
Committees regularly review and approve key 
employee policies to ensure that they 
appropriately capture and reflect the Group’s 
values and culture. All employees, including the 
Board, are required to complete online training on 
key policies. These training programmes are 
regularly refreshed and are available in multiple 
languages. As new policies are developed, 
appropriate training is provided to all employees. 
The Board also annually considers and approves 
the statement required in accordance with the UK 
Modern Slavery Act 2010.
* As set out in Group’s Human Rights Statement (available on our website) and 
in our Sustainability Report, we support the United Nations Guiding Principles 
on Business and Human Rights in all our operations. Underpinned by our 
global policies, we uphold the requirements of the United Nations Declaration 
of Human Rights and the Convention on the Rights of the Child, the core 
International Labour Organisation Conventions and The Organisation for 
Economic Co-operation and Development Guidelines for Multinational 
Enterprises. We uphold the aims of the California Transparency in Supply 
Chains Act of 2010.
During 2024, Fran held nine listening sessions 
engaging with workers from various functions 
and organisational levels across geographies. 
Sessions took place both virtually and face 
to face. Fran also met with members of each 
division’s leadership team to identify any 
new themes, and get a top-down view of 
local issues. Fran continued to co-host the 
Group’s DEI calls, held twice a year, that are 
attended by workers around the world. 
Fran, and those that have attended the various 
sessions, have valued the open and collaborative 
nature of the forums and the opportunity to 
gather insights on a variety of key areas. 
Central themes emerging from Fran’s sessions 
during 2024 include pride and appreciation of 
the: Group’s culture, particularly the commitment 
to ‘Doing the Right Thing’; continued focus on 
sustainability; and our Coats Cares initiatives. 
Various sessions included discussion of diversity 
and talent development programmes within the 
Group, with employees citing their desire to see 
the continuation of these areas to provide further 
opportunities in 2025 and beyond. Employees 
also noted the impact of remuneration due to 
continued inflation in certain geographies. 
Fran provided scheduled feedback at 
the July and December Board meetings. 
Additionally, she shared real time insights 
gained from the workforce at both Board and 
Committee meetings throughout the year. 
Fran’s role and feedback provide a critical 
form of engagement to help further inform 
the Board’s view and understanding of 
how the desired culture desired culture, 
ways of working and values are embedded 
throughout different sites and markets.
Fran Philip, Designated Non-Executive Director for 
Workforce Engagement (since March 2019)
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0–3 years 45% 
3–6 years 22% 
6–9 years 33% 
0–3 years 43% 
3–6 years 14% 
6–9 years 43% 
People 18% 
Legal 16% 
Risk 15% 
Finance 18% 
Technology/Digital 15% 
Customer 18% 
Men 56% 
Women 44% 
Not specified/prefer not to say 0% 
White British or other White (including 
minority-white groups) 78% 
Asian/Asian British 22% 
Mixed/Multiple Ethnic Groups 0% 
Black/African/Caribbean/Black British 0% 
Other ethnic group, including Arab 0% 
Not specified/prefer not to say 0% 
Global Business Experience 26% 
US Market Experience 22% 
European Market Experience 26% 
Asia Market Experience 26% 
Coats Group plc Annual Report and Accounts 2024
Corporate governance cont.
GOVERNANCE AT A GLANCE
Board profiles:
Length of service – 
Directors
Length of service – 
Non-Executive Directors
Relevant Functional  
Experience
Gender Diversity
Ethnic Diversity
Geographic Expertise
During October 2024, the Board visited several of the 
Groups operations in China as part of the annual away 
week. Further details about this trip are set out on 
page 73. In January 2025, a number of the Directors 
joined the Global Leadership Conference held in 
Vietnam. During the course of the event, the Directors 
toured local facilities and engaged with colleagues 
during the various sessions which covered strategic 
matters. You can read more about the Board’s 
engagement with stakeholders on pages 44 to 46.
In addition to the scheduled meetings, the Senior 
Independent Director and the Non-Executive 
Directors meet once a year without the Chair 
present in order to appraise his performance. 
This process was led by Steve Murray in 2024.
The Chair and the Non-Executive Directors also 
periodically attend sessions without management 
present to discuss, amongst other things, the 
performance of key members of management. 
Board and Committee attendance
The Directors’ attendance record at the last AGM, 
scheduled Board meetings and Board Committee 
meetings regularly attended by Non-Executive 
Directors, for the year ended 31 December 2024 
is set out in the table below. For Board and 
Committee meetings, attendance is expressed 
as the number of meetings attended out of the 
number that each Director was eligible to attend.
During the year, the Board held nine scheduled 
meetings. All Directors received papers for meetings 
in advance. The Board continued to meet in person 
for the majority of meetings held during the year 
but utilised technology to hold hybrid or fully virtual 
meetings when it was appropriate to do so, mindful 
of the environmental and efficiency benefits.
The Board attended the annual strategy day 
in September 2024 and discussed a variety of 
topics relating to current business priorities.
Board
Audit and Risk
Nomination6
Remuneration
Sustainability
AGM
David Gosnell
9/9
7/7
2/2
1/1
Rajiv Sharma²
7/7
1/1
1/1
David Paja³
4/4
1/1
Jackie Callaway 
9/9
1/1
Nicholas Bull¹
4/4
4/4
5/5
3/3
1/1
1/1
Sarah Highfield
9/9
6/6
7/7
2/2
1/1
Echo Lu
9/9
7/7
5/5
1/1
Steve Murray
9/9
6/6
7/7
5/5
1/1
Srinivas Phatak⁴
3/4⁴
1/1
2/2
Fran Philip
9/9
6/7⁵
5/5
2/2
1/1
Jakob Sigurdsson
9/9
6/6
7/7
1/1
1.	 Nicholas Bull stepped down from the Board on 22 May 2024.
2.	 Rajiv Sharma stepped down from the Board as mutually agreed to facilitate an orderly succession process on 30 September 2024. 
3.	 David Paja was appointed to the Board on 1 September 2024. 
4.	 Srinivas Phatak was appointed to the Board on 1 September 2024. Srinivas was unable to attend the Board call held on 19 November 2024 due to a longstanding 
commitment that existed prior to his appointment to the Board. Srinivas had been involved in all previous discussions regarding the business of the meeting and 
discussed the outcomes of the call with the Chair. 
5. 	Fran Philip was unable to attend the Nomination Committee call held on 8 November 2024, due to a long-standing pre-existing commitment that existed prior 
to scheduling of the meeting and could not be rearranged. Fran had been involved in all previous discussions regarding the business of the meeting and 
discussed the outcomes of the call with the Chair.
6.	 Certain Nomination Committee discussions were conducted as part of scheduled Board meetings.
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Coats Group plc Annual Report and Accounts 2024
Corporate governance cont.
Board effectiveness improvements implemented during 2024
The Board progressed the agreed action plan in relation to the feedback received as part of the 2023 
internal effectiveness review and a summary is set out below:
Actions taken in 2024 as a result of previous evaluation feedback
Enhanced focus on oversight 
of technology (including Al)
–	 Two deep dives into cyber security and full Board participation in a cyber attack 
simulation and GIA review of cyber security tools undertaken.
–	 Al-related updates provided as part of management reporting at Board meetings, 
particularly as part of divisional deep dives and at the presentations at the Board 
trip to China.
–	 Annual strategy day considered technological developments in the industry.
Further focus on changing 
customer needs and 
expectations
–	 Customer trends considered as part of divisional deep dives presented to the 
Board throughout the year.
–	 Industry developments and trends considered as part of annual strategy day 
agenda and in relation to market specific presentations on China, India and 
Indonesia provided during the year.
–	 Updates provided in relation to Coats’ technology including ShopCoats,  
TechConnect and Coats Digital.
Continued focus on executive 
succession planning
–	 Numerous discussions on Board, GET and below GET talent/development and 
succession plans presented to the GET, Nomination Committee and Board by the 
Chief HR Officer.
–	 Divisional deep dives presented to the Board and Audit and Risk Committee 
continued to include summary of talent and diversity.
–	 Tracking of diversity in leadership metrics at every Board meeting.
2024 review of effectiveness
Board evaluation 
In line with the Code, this year an internal evaluation of the Board and its Committees was conducted, 
and an external evaluation will be undertaken in 2025. The internal evaluation process of the Board and 
its Committees was led by the relevant Chair and utilised a questionnaire that was circulated 
electronically supplemented with additional feedback where appropriate. The Board and its Committees 
recognise the value of a full and transparent evaluation of their performance and seek feedback from 
both Board members and regular Board and Committee meeting attendees.
Review of previous year’s evaluation findings and progress help  
to define the scope for this year’s evaluation.
Evaluation undertaken by a combination of quantitative rating scale  
and open-ended questions on a no-names basis.
Recommendations for the Board and each of the Committees  
are analysed and discussed, and action plans agreed.
The Board report identified key strengths, including Board dynamics and the balance of strategy/
performance/governance-related discussions. Respondents also noted the positive engagement and 
ways of working with the GET. Action plans and focus areas for 2025, including timelines for delivery, 
were agreed as set out below and in the relevant Committee reports.
Areas for development and planned for the Board in 2025 
Key areas for focus
Actions identified for 2025
Further focus on long-term 
strategy and strategy articulation
–	 Additional long-term strategy-related discussions added to 2025 Board 
planned agenda.
Continued focus on executive 
succession planning and talent 
development
–	 Further review of short and mid-term succession plans for GET scheduled as 
part of 2025 Board and Nomination Committee planned agenda.
–	 Board oversight of talent development programme to be continued.
Ongoing focus on the detail and 
length of papers presented to the 
Board
–	 Revised guidance to be provided to management.
–	 Group CEO and Group Company Secretary to continue to assess how to 
further improve focus of Board papers.
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Coats Group plc Annual Report and Accounts 2024
Audit and Risk Committee report
Sarah Highfield
(Chair since May 2024)
Member since 2023
Steve Murray
Member since 2022
Srinivas Phatak
Member since  
1 September 2024
Jakob Sigurdsson
Member since 2020 
Dear Shareholder,
I am pleased to present my first report as the Chair 
of the Audit and Risk Committee. This report, 
for the year ended 31 December 2024, sets out 
how the Committee has discharged the duties 
delegated to it by the Board, including how it 
ensured compliance with the relevant regulations 
and guidance, such as the 2018 UK Corporate 
Governance Code (2018 Code), as well as setting 
out the key topics and findings during the year.
A key focus of the Committee in 2024 has been 
the externally facilitated review of the Group 
Internal Audit function (GIA). This has ensured that 
our approach remains appropriately positioned 
in relation to the market and our peers. Through 
this review, the Committee also considered the 
scope and focus of GIA activities and reviewed 
the short and medium-term audit plans. These 
plans were developed in conjunction with 
management to ensure that they were suitably 
aligned to strategy and business operations, as 
well as our principal risks and uncertainties. The 
review also identified the appropriate resourcing 
model for GIA. You can read further details about 
the outcomes of the process later in this report.
Following the publication of the 2024 UK Corporate 
Governance Code (2024 Code) in January 2024, 
the Committee has dedicated significant time to 
considering the Company’s preparations for the 
forthcoming requirements, particularly those relating 
to the need for the Board to identify, monitor and 
review all material risks and controls in order to 
make a future declaration as to their effectiveness. 
The Committee has continued to monitor the 
various other developments in the regulatory 
environment to ensure that the Company is 
well positioned for incoming requirements.
I am delighted that the Group has now published 
external limited assurance on its ESG-related 
data as set out in this Annual Report. This is the 
culmination of a number of years of work by 
management and the Committee, and we are 
confident that our stakeholders will welcome 
this development in our reporting. During 
2024, we have continued to increase the level 
of governance through on-site reviews of ESG 
data in selected locations undertaken by GIA.
The Committee reviewed the basis for 
reporting ESG-related data (available on 
our website www.coats.com) as well as 
continuing to monitor the progress of external 
assurance work throughout the year. 
Preparatory work took place for the upcoming 
EU Corporate Sustainability Reporting Directive 
(CSRD), which was expected to impact Coats 
from January 2025, and in relation to which we 
have elected to adopt the reporting requirements 
at non-EU parent group level. This will bring 
the entire Coats Group into scope. Following 
the EU Omnibus update in February 2025, we 
are waiting for the final conclusions from the 
EU on when our first reporting year will be.
Our Sustainability function has been working with 
key internal and external stakeholders on the 
completion of our Double Materiality Assessment 
(DMA) which will determine the European 
Sustainability Reporting Standards under which 
we will make future disclosures. The DMA will 
undergo limited assurance once we are clearer 
on the finalised EU mandates for reporting.
Principal objectives of the Audit and Risk Committee
–	 To monitor the integrity of the Group’s financial 
reporting processes.
–	 To ensure the independence and effectiveness of 
internal and external audit functions.
–	 To ensure that risks are carefully identified and 
assessed, and that sound systems of risk 
management and internal control are in place.
Key responsibilities
–	 Oversee the accounting principles, policies and 
practices adopted in the Group’s accounts.
–	 Oversee the external financial reporting and 
associated announcements.
–	 Provide advice to the Board on whether the Annual 
Report and Accounts is fair, balanced and 
understandable and provides the necessary 
information to assess the Company’s performance, 
business model and strategy.
–	 Ensure the adequacy and effectiveness of the 
internal control environment.
–	 Monitor the Group’s risk management processes 
and performance.
–	 Review the resourcing, plans, reports and 
effectiveness of GIA. 
–	 Oversee the appointment of, and monitoring the 
performance of, the internal audit partner.
–	 Conduct a competitive tender process for external 
audit when required and oversee the appointment, 
independence, effectiveness and remuneration of the 
Group’s external auditor, including the policy on the 
supply of non-audit services.
–	 Ensure the establishment and oversight of fraud 
prevention arrangements and consider reports under 
the whistleblowing policy in conjunction with 
the Board.
–	 Monitor the Audit and Assurance Policy.
–	 Review the Group’s compliance with the Code.
–	 Monitor forthcoming regulatory changes.
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Coats Group plc Annual Report and Accounts 2024
Audit and Risk Committee report cont.
Highlights of 2024
–	 Completion and implementation of review of GIA.
–	 Preparations for regulatory changes including further 
evolution of internal controls environment.
–	 Publication of external limited assurance of ESG-
related data.
Areas of focus for 2025
–	 Continue preparations for 2024 Code changes 
including documenting controls and testing 
procedures.
–	 Continue preparations for CSRD disclosures.
–	 Continue focus on Cyber and IT risk and governance, 
as well as ESG.
–	 Support transition of Group Chief Financial Officer.
focussing on key areas of financial judgement 
and estimates made by management to ensure it 
was satisfied with the outcome, critical accounting 
policies, disclosures (including those relating 
to contingent liabilities, climate change and 
principal risks) and provisioning, as well as any 
changes required in these areas or policies.
Particular focus areas during the year were the 
accounting treatment of the UK pension buy-
in transaction, strategic projects, impairment 
risk (in particular in the Americas due to trading 
softness in Performance Materials), and the 
continued integration of the Footwear business. 
The Committee reviewed the updated wording of 
the Group’s longer-term viability statement, set out 
on page 57. The Committee reviewed the process 
undertaken to ensure that the model used was 
consistent with the approved business plan and that 
the relevant scenario and sensitivity testing aligned 
clearly with the principal risks of the Group. The 
Committee challenged the underlying assumptions 
used and reviewed the results of the detailed 
work performed. The Committee was satisfied 
that the analysis supporting the viability statement 
had been prepared on an appropriate basis. 
The Committee also reviewed the going concern 
statement, set out on page 107 and confirmed 
its satisfaction with the methodology including 
the appropriateness of sensitivity testing.
The Committee continues to focus on both the basis 
of preparation of the going concern and viability 
analysis as well as the external disclosures, to ensure 
they are prepared in line with current FRC guidance.
An independent internal review was also conducted 
on our TCFD models for determining financial 
impact of climate related risks and opportunities.
The Committee continued to receive deep dive 
presentations from each of the Finance Directors 
of the Apparel, Footwear and Performance 
Materials divisions relating to internal controls 
and risk management processes. These help 
the Committee to consider how effectively risk 
management is embedded within the business 
operations and how it is monitored on a day-to-
day basis. There has also been a significant focus 
on the communication of the Group’s Supplier 
Code, including monitoring the outcomes of, and 
follow-up on actions from, audits of key suppliers. 
One of the outcomes of the review of GIA was 
the creation of a new role in our Supply function 
to further strengthen our risk management 
processes in this area. This new role is responsible 
for driving further consistencies around ethical 
behaviour across our supply chain, monitoring 
and escalating any potential breaches in relation 
to the Group’s Supplier Code in accordance with 
agreed processes and timelines, and incorporating 
industry best practices, where appropriate, in 
conjunction with an outsourced verification partner. 
The Committee also monitored the progress in 
relation to, and the accounting treatment of, the 
Coats UK Pension Scheme buy-in transaction that 
was agreed in September 2024. This transaction 
was the final and most significant step in Coats’ 
full insurance of its UK pension obligations. 
During the course of 2024, the Financial Reporting 
Council (FRC) considered certain aspects of 
EY’s audit of our 2023 consolidated financial 
statements. You can read more about this process 
in the ‘Assessment of audit process’ on page 82.
the maximum number of meetings possible. Further 
details of individual Directors’ attendance can be 
found on page 75. The Committee met privately with 
the external auditor and with GIA. To enable robust 
and timely discussion, the Group Chief Financial 
Officer, the Chief Legal & Risk Officer and Group 
Company Secretary, the Group Financial Controller, 
the Senior Financial Reporting Manager, the Head 
of GIA, divisional CEOs, divisional Finance Directors 
and the external auditor attended parts of Committee 
meetings by invitation. The Group Chair and Group 
CEO also attended meetings when appropriate. The 
Deputy Company Secretary acts as Secretary to the 
Committee. The Chair of the Committee holds regular 
meetings with both internal and external auditors, 
and each has an opportunity to discuss matters with 
the Committee without management being present.
‘Financial expert’, recent and relevant 
financial experience
The Board has confirmed that it is satisfied that the 
Committee possesses an appropriate level of 
independence and depth of financial and commercial, 
including sectoral, expertise.
For the purposes of the 2018 Code, in respect of the 
financial year ended 31 December 2024, Nicholas 
Bull, Sarah Highfield and Srinivas Phatak were the 
members of the Committee determined by the Board 
as having recent and relevant financial experience. 
You can read more about the skills and experience of 
the members of the Committee on pages 68 to 70.
Financial reporting, going concern and 
viability statement
During the year, the Committee reviewed the 
interim results announcement, including the 
interim financial statements, the Annual Report 
and associated preliminary results announcement, 
Following nine years’ service on the Board and this 
Committee, Nicholas Bull stepped down at the 
conclusion of the 2024 AGM at which time I 
succeeded him as Chair of this Committee.  
I was delighted to welcome Srinivas Phatak as a 
Non-Executive Director and member of this 
Committee in September 2024. Srinivas brings 
significant financial expertise to this Committee, 
continuing to enhance the mix of skills and 
experience amongst Committee members. 
Sarah Highfield, 
Chair, Audit and Risk Committee
5 March 2025
Membership and meetings
The members of the Committee are independent 
Non-Executive Directors. During the year, the 
Committee met five times and held one additional 
call, and all members of the Committee attended 
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Coats Group plc Annual Report and Accounts 2024
Audit and Risk Committee report cont.
Significant issues relating to the financial statements 
The Committee considered the following issues relating to the financial statements during the year. These include the matters relating to risks disclosed in the external 
auditor’s report:
Issue
Review and conclusion
Exceptional and 
acquisition-
related items
In 2024, exceptional and acquisition-related items of $69.8 million have been recorded in operating profit; the disclosures in note 4 to the financial 
statements provide further details. The Committee assessed management’s judgements, took into account the views of the external auditor and 
concluded that the accounting treatment was appropriate given the one-off nature of the events.
Pension matters 
– valuation of 
obligations and 
buy-in 
accounting
At 31 December 2024 the Group’s Pension deficit calculated under IAS19 was $42.4 million (including $38.3 million loan due to the company from the UK 
scheme). The UK surplus is significantly reduced following the buy-in transaction that completed during the year, and which in due course resulted in an 
actuarial loss of $224.9 million in the statement of other comprehensive income. The Committee reviewed the underlying assumptions, including those 
relating to the UK scheme buy-in transaction that was agreed with PIC in September 2024 to insure the remaining 80% of uninsured pension liabilities, 
which were also agreed with Coats’ external advisors and auditors. Note 10 to the financial statements sets out these assumptions and, also provides 
further details on the UK scheme buy-in transaction. The Committee is satisfied that the overall Group Pension deficit on the balance sheet has been 
appropriately recognised.
US legacy 
environment 
provision
The Group has recognised a provision of $11.2 million in respect of remediation and legal/professional costs for the Lower Passaic River. The Committee 
considered management’s position on the accounting and disclosure implications surrounding this environmental case, taking into account advice 
received from external counsel Sive Paget & Riesel P.C. Following the delivery of the US Environmental Protection Agency’s Record of Decision in March 
2016, the Committee has continued to review whether subsequent events, including those impacting other parties considered to be responsible for the 
most significant contamination in the river, have triggered the requirement to remeasure the level of remediation provisioning previously established. The 
Committee is satisfied that there is no requirement to remeasure the remediation provision at 31 December 2024 and that the disclosures provided in note 
28 to the financial statements are appropriate.
Taxation
The Group operates in numerous jurisdictions around the world, with different regulations applying in different territories. This complexity, together with 
intra-Group cross-border transactions, give rise to inherent risks including the risk of challenge by national tax authorities. In addition to reviewing the 
Group’s adjusted effective tax rate, which remained at 29% in the current year, the Committee also considered the Group’s uncertain tax provisions and 
deferred tax assets, which amount in total to $26.0 million and $13.6 million respectively. The Committee is satisfied with the approach and disclosures 
adopted by management as reflected in the financial statements in note 9 to the financial statements.
The Committee also received regular updates on provisions made for litigation and tax matters and the Committee considered the appropriateness of the 
methodology applied.
Fair, balanced and understandable
As part of its review of the Company’s Annual 
Report and associated disclosures, the Committee 
has considered whether this report is ‘fair, balanced 
and understandable’ and provides the information 
necessary for shareholders and other stakeholders 
to assess the Company’s position, performance, 
business model and strategy, as required by the  
2018 Code. 
The Committee used the established assurance 
processes to ensure its input was appropriately 
timed, including providing feedback on the planning 
process, and considering the reviews taken by 
external advisors. The Committee received a full 
draft of the Annual Report and provided feedback 
on it, highlighting the areas that would benefit 
from further clarity or balance, and this feedback 
was appropriately incorporated. In this respect the 
Committee focussed on ensuring consistency and 
completeness in non-financial reporting, including 
ESG and TCFD reporting, principal risks and 
uncertainties and reviewing the use of alternative 
performance measures and their appropriateness in 
aiding users of our financial statements to understand 
better our performance year-on-year. 
On this basis, the Committee recommended to  
the Board that it could make the required statement 
that the Annual Report is ‘fair, balanced and 
understandable’.
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Fundamental components of the Company’s 
internal control and risk management 
framework include:
Coats Group plc Annual Report and Accounts 2024
Audit and Risk Committee report cont.
Internal control and risk management
The Board is responsible for the Group’s risk 
management framework and for defining its risk 
appetite. During 2024, the Committee continued to 
keep under review the Company’s internal financial 
controls systems that identify, assess, manage and 
monitor financial risks and other internal control and 
risk management systems, and the effectiveness 
of the Group’s risk management system, through 
regular updates from management. This included a 
review of the key findings presented by the external 
and internal auditors having agreed the scope, 
mandate and review schedule in advance. The 
principal risks and uncertainties facing the Company 
are addressed in the Strategic Report and in the 
table on pages 50 to 56 in this Annual Report.
The Committee continued to conduct deep dives 
into the financial control and risk framework of 
each division. The relevant divisional Finance 
Director provided: an overview of their part 
of the business; insights into the structure of 
their finance team, including metrics relating to 
diversity and tenure, and a talent review. There 
was also an analysis of the division’s approach to 
embedding and monitoring internal controls and 
risk management. These were accompanied by 
a summary of the assurance processes currently 
in place in the division. The divisional Finance 
Directors also reported on the implementation of 
previously outlined plans relating to the further 
development of the internal controls environment 
and opportunities for further automation. There 
was also an update regarding future plans.
The Committee undertook its annual review 
of ESG reporting and disclosures, including 
consideration of the TCFD disclosures. 
This was in addition to the various updates 
provided to allow the correct oversight of 
the journey to external limited assurance of 
ESG-related data in this Annual Report.
A key focus has been the preparation for the 
requirements of the 2024 Code and the Committee 
has received updates at each of its meetings 
in 2024 to allow appropriate oversight of the 
approach and progress in this area. The Committee 
has provided input on the scope, timing and 
planned activities to ensure it will be appropriately 
positioned to make the required effectiveness 
declarations in due course. This has included 
working with external consultants to ensure that 
we are responding to the 2024 Code requirements 
appropriately, and in line with industry practice. 
Whilst leveraging existing risk frameworks, 
management has performed wide stakeholder 
consultation to further analyse and identify material 
risks for the business, and has a detailed roadmap 
in place to deliver the required declarations in line 
with the timings of the 2024 Code requirements. 
The Committee discussed instances where there 
was opportunity for enhanced controls during the 
year with updates being provided when required. 
In particular, during 2024 the Committee conducted 
a further deep dive into supplier payments and 
there were periodic updates on Group Supplier 
Code compliance and on sanctions documentation 
and training. There were also reviews of cyber 
security tools and Data Protection processes, 
as well as procure to pay processes. Reviews of 
business areas are presented in line with the GIA 
plan, and these are appropriately scheduled to 
align with business priorities to ensure the timely 
identification of any internal control compliance-
related issues. Remediation plans continue to 
be closely monitored on an ongoing basis.
In addition to the divisional risk and control deep-
dives, a Group-wide assessment of internal controls 
over financial reporting was presented, which 
included analytical reviews of balance sheets 
conducted in the business, deep dives into key 
financial risks and judgements and a review of 
the timeliness of previous GIA follow-up actions.
The annual review of the effectiveness of the 
Company’s risk management and internal control 
systems covering all material controls was 
conducted, including operational, compliance 
and fraud-related controls. Following the robust 
assurance process, the Committee was satisfied 
that these systems operate effectively in all 
material respects with no significant weaknesses 
identified and others remediated appropriately.
The Committee reviews the minutes of all Group 
Risk Management Committee meetings and 
discusses any relevant matters that have arisen  
with management.
Internal audit
As mentioned earlier in this report, the Committee 
has devoted significant time to reviewing the strategy 
of GIA, including agreeing a three year audit plan 
based on five identified risk domains that align to the 
Group’s principal risks and uncertainties. The 
Committee, in conjunction with an external facilitator 
and management, considered resourcing and 
determined it was appropriate to move to a hybrid 
model. After a thorough tender process, in which all 
of the members of the Committee participated, BDO 
was appointed as the co-source partner. 
A new Head of GIA was also appointed, with 
members of the Committee participating in the 
recruitment process. The Committee believes that 
these changes will appropriately align GIA with the 
current and evolving needs of the business. 
management structure supported by clear 
approval limits and delegated authorities;
appropriately drafted and communicated 
policies, procedures, and guidance to support 
business operations;
a thorough and co-ordinated annual planning 
process and strategy review, combined with 
comprehensive financial forecasting, reporting, 
and budgeting;
embedded tools and technology such as SAP 
and Concur;
a well-established sign off system in relation to 
financial reporting and other business matters;
appropriate post-acquisition integration 
activities to ensure adherence to Group 
standards;
GIA activities and investigations; and
an externally operated whistleblowing helpline 
and robust process to allow anonymous 
reporting and suitable investigations.
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Coats Group plc Annual Report and Accounts 2024
Audit and Risk Committee report cont.
The proposed GIA audit plan is presented at the 
December meeting of the Committee to ensure this is 
agreed in advance and it is then reviewed at each 
Committee meeting. Updates are provided on audit 
coverage and any recommended changes to the 
schedule of work. 
The Committee reviews key findings from GIA 
reports, receives detailed reports from management 
where appropriate, and monitors the rate at which 
actions agreed with management are implemented. 
GIA presents its annual audit opinion at the February 
meeting of the Committee. The Head of GIA 
continues to present to the Committee a semi-annual 
review of in-country operational risks which are 
appropriately aligned against the Group’s principal 
risks, which includes a summary of any new risks that 
have arisen in the period with agreement on 
appropriate actions and interventions. GIA grades the 
severity of any findings in their reporting to the 
Committee, with significant control findings being 
defined as a material deficiency in the design or 
implementation of a control. This might include a risk 
of material misstatement of financial information 
where controls in operations are largely deficient or 
where there is a pervasive violation of policies and 
procedures. No significant control findings were 
identified during the period.
GIA findings and report ratings and supporting 
criteria have been revised in the year to be clearer on 
the level of risks identified so as to support the 
business in appropriately prioritising actions in 
response, and to better align to the risk framework. 
The revised ratings and criteria were agreed by the 
Committee. The Committee considers the findings of 
the investigations and will provide a final view on the 
rating to be assigned to the investigation and 
communicated to the business.
In 2024, GIA focused on supporting Coats in the 
achievement of its stated purpose ‘to connect talent, 
textiles and technology to make a better and more 
sustainable world’ by bringing a systematic, 
disciplined approach to support and promote 
effective governance, risk management and control 
processes. To achieve its purpose, GIA has 
positioned itself as follows:
–	Trusted advisor, adding value and being solution 
driven as a business partner
–	Risk-based, focusing on the greatest risks and 
bringing key insights
–	Adopter of technology, including using data 
analytics and implementing a web-based tool for 
reporting and action tracking
During the year, GIA activity has been aligned to the 
Group principal risks and uncertainties, and the plan 
kept under review and aligned throughout the year. 
Work at unit level has been prioritised on a risk basis, 
focussed on our key markets. The majority of reviews 
were conducted onsite and were aligned to the Key 
Control Framework controls and test activities. A 
“guest auditor” from the business resourcing model 
was implemented to provide independent peer 
review and development opportunities.
GIA has strived to make its ways of working more 
transparent and facilitated more “live” feedback of 
potential issues, enabling faster resolution and 
remediation from the business. A more robust and 
disciplined approach to planning and delivery has been 
implemented, supporting a more effective auditing 
approach and reducing the disruption to the business.
Engagement of BDO as a co-source partner to GIA 
has brought further capabilities to the team and the 
business, most notably in Digital and Technology and 
sustainability, as well as the ability for GIA to bring 
wider insights to the business.
GIA presented the outcomes of its reviews of the 
Group’s cyber security tools and data protection 
governance to the Committee. There were also 
appropriate updates on items that had arisen as key 
themes in previous years including HR controls 
compliance in markets and Group Supplier 
Code compliance.
The Committee has continued to monitor and  
review the Company’s Audit and Assurance Policy, 
which is available on the Company’s website  
(www.coats.com), to ensure that this keeps pace  
with internal and external developments, noting the 
changes that had occurred in the associated 
regulatory environment in particular as result of the 
release of the updated Corporate Governance Code 
in January 2024. The Committee anticipates that this 
policy statement will continue to evolve and provide 
further opportunities for engagement.
External audit 
Independence
The Committee is responsible for reviewing the 
independence and objectivity of the Company’s 
external auditor, Ernst & Young LLP, agreeing the 
terms of engagement with them and the scope of 
their audit. Ernst & Young LLP has a policy of partner 
rotation, which complies with regulatory standards, 
and, in addition, has a structure of peer reviews 
for its engagements, which are aimed at ensuring 
that its independence is maintained. Maintaining 
an independent relationship with the Company’s 
external auditor is a critical part of assessing the 
effectiveness of the audit process. The Committee 
annually reviews the policy on non-audit fees to 
ensure it complies with latest FRC Ethical Standards.
The Committee also reviewed the level of audit 
and non-audit fees paid to EY. The key principles 
of the policy on non-audit services are:
–	The auditor is prohibited from providing any services 
that are not included in the list of permitted non-
audit services. Permitted services include audit 
related services such as reviews of interim financial 
information or any other review of accounts required 
by law to be provided by the auditor.
–	Any service that is included on the list of 
permitted non-audit services, if in excess of 
$150,000, requires the approval of the Committee.
During 2024, the external auditor provided non-audit 
services primarily in relation to the Group’s interim 
results and ESG assurance. The external auditor 
has confirmed to the Committee that they did not 
provide any prohibited services and that they have 
not undertaken any work that could lead to their 
objectivity and independence being compromised.
The non-audit fees in relation to the services 
supplied by the external auditor can be found in 
note 5 of the financial statements. Non-audit fees 
presented as a percentage of total audit fees is 13%.
The lead partner is rotated every five years. Anup 
Sodhi was appointed as the lead audit engagement 
partner in 2023.
The Group is in compliance with the requirements 
of the Statutory Audit Services for Large 
Companies Market Investigation (Mandatory 
Use of Competitive Tender Processes and Audit 
Committee Responsibilities) Order 2014.
Audit tender
The Company conducted a competitive tender 
process for the Group’s external auditor during 
2022. Ernst & Young LLP was re-appointed as the 
Company’s auditor for the year ending 31 December 
2024 at the 2024 Annual General Meeting of 
the Company. No members of the Committee 
have any connection with the current auditors. 
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Coats Group plc Annual Report and Accounts 2024
Audit and Risk Committee report cont.
Assessment of audit process
The scope of the external audit is formally 
documented by the auditor. They discuss the draft 
proposal with management before it is referred to the 
Committee which reviews its adequacy and holds 
further discussions with management and the auditor 
before final approval.
During the year under review, the Audit Quality 
Review team of the FRC considered certain aspects 
of EY’s audit of the Company’s 2023 consolidated 
financial statements. Having received a full copy of 
the report, the Committee was pleased to note that 
no key findings arose from the review, with only two 
areas identified for limited improvement. These areas 
have been discussed with EY and the Committee is 
satisfied that they were addressed appropriately. 
In respect of the year under review, the Committee 
conducted an assessment of the performance and 
effectiveness of the external auditor. This assessment 
was undertaken by way of a questionnaire-based 
internal review which was completed by regular 
attendees to the Committee and those Coats 
colleagues globally who interact most frequently with 
the external auditor. Feedback was also provided by 
Committee members. The items pertaining to the 
review of the external auditor, as listed in the FRC’s 
‘Audit Committee and the External Audit: Minimum 
Standard’ and the 2018 Code, were included in the 
review. The questionnaire covered topics such as the 
robustness of the audit, and the quality of delivery, 
reporting and service as well as covering areas such 
as consideration of the auditor’s culture and mindset 
including free form questions to allow consideration 
of any other points that respondents wished to raise. 
The Committee appropriately assessed the auditor’s 
view of the risks to audit quality, performance against 
the audit plan and also considered the FRC’s annual 
report on the auditor. The summary of the results of 
the questionnaire has been reviewed by the 
Committee and appropriate feedback has been 
shared with the external auditor.
Assessment of the effectiveness of the Committee
The Committee’s effectiveness in respect of the year 
ended 31 December 2024 was evaluated by way of a 
questionnaire-based internal review. Respondents 
included Committee members, regular attendees and 
the external auditor. The Committee considered the 
findings of the process in relation to both the 
Committee and GIA at its December meeting, as  
well as considering whether the feedback identified 
in the previous year’s assessment had been 
adequately addressed.
The 2024 evaluation indicated that the Committee 
was working effectively and identified opportunities 
for the 2025 Committee work plan, which have been 
appropriately included.
Signed on behalf of the Audit and Risk Committee by: 
Sarah Highfield, 
Chair, Audit and Risk Committee
5 March 2025
Areas of focus in 2024
Key stakeholders
Corporate reporting
–	 Half and full year external 
reporting
–	 Interim and preliminary results 
announcements
–	 Annual Report and consolidated 
financial statements
–	 Review of tax and statutory filing 
status
–	 Reporting and external limited 
assurance of ESG data
SHAREHOLDERS
Internal controls
–	 Completion and implementation 
of review of the GIA function
–	 GIA updates
–	 Semi-annual review of internal 
financial controls
–	 Monitoring agreed actions status
–	 Deep dives into Apparel, Footwear 
and Performance Materials divisions 
risk management and internal controls
–	 Review of updates to regulatory reform 
to ensure appropriate internal 
preparation
EMPLOYEES
SHAREHOLDERS
Risk management
–	 Litigation, cyber tools, suppliers, 
PTP processes and tax risk 
reviews
–	 Bi-annual risk review including 
environmental compliance
–	 Horizon scanning for changes to 
regulatory environment for audit
–	 Sanctions update including review of 
Company’s ways of working to ensure 
compliance
–	 Monitoring of refresh of Group’s 
Supplier Code, including internal and 
external training and compliance 
updates
–	 Review of Supplier payment terms
CUSTOMERS
EMPLOYEES
ENVIRONMENT
SHAREHOLDERS
SUPPLIERS
External audit
–	 Report on external audit at half 
and full year
–	 Insights and observations on 
reporting review
–	 Auditor independence and non-
audit work reviews
–	 Review of management representation 
letters
–	 Review of fees of external auditor
–	 Review of the effectiveness of the 
external auditor
CUSTOMERS
EMPLOYEES
SHAREHOLDERS
SUPPLIERS
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Coats Group plc Annual Report and Accounts 2024
Nomination Committee report
David Gosnell 
(Chair since November 2020) 
Member since 2015
Sarah Highfield 
Member since 2023
 
Steve Murray
Member since 2022
Fran Philip
Member since 2016
Echo Lu
Member since 2017
Srinivas Phatak
Member since 1 
September 2024 
Jakob Sigurdsson
Member since 2020
Dear Shareholder,
I am pleased to present the report of the Nomination 
Committee for the year ended 31 December 2024.
This has been an unusually busy year for the 
Committee. As set out elsewhere in this Annual 
Report, a principal activity in 2024 was the 
succession process which culminated in the 
announcement in May 2024 of the appointment of 
David Paja as Group CEO. David joined the Board as 
an Executive Director on 1 September 2024 and 
succeeded Rajiv Sharma as Group CEO on 1 
October, when Rajiv stepped down from the Board 
as part of a mutually agreed succession process. 
Additionally, in August 2024, we announced the 
appointment of Srinivas Phatak as a Non-Executive 
Director and member of the Audit and Risk and 
Nomination Committees. Finally, on 7 January 2025, 
we announced that Hannah Nichols would join the 
Board as an Executive Director and Group Chief 
Financial Officer designate to succeed Jackie 
Callaway as Group Chief Financial Officer at the 
conclusion of our 2025 AGM, as part of a mutually 
agreed succession process. I was delighted to 
welcome both David and Srinivas to Coats and I 
look forward to welcoming Hannah in due course. 
Their appointments are the result of significant work 
by the Committee, management and our advisors.
Following Nicholas Bull stepping down from the Board 
at the 2024 AGM after serving for nine years, the 
succession plans for the key Board roles that Nicholas 
held were successfully implemented as detailed in the 
last report of this Committee. Steve Murray now acts 
as our Senior Independent Director and Sarah 
Highfield is the Chair of the Audit and Risk Committee. 
In light of these notable changes to the Board and 
the recent period of significant transformation of 
the Group, and consistent with the succession 
plan that was set out in last year’s Annual Report 
and the resolution passed at the 2024 AGM, the 
Board is proposing that my term of appointment 
as Chair continues for a further two years. You can 
read more details about this process, including the 
processes being led by the Senior Independent 
Director to identify my successor, later in this report.
In conjunction with the processes set out above, 
the Committee also reviewed the succession  
plans for members of the GET and reviewed  
talent development plans for key below-GET  
level employees. 
Committee membership and meetings
The members of the Committee comprise 
independent Non-Executive Directors only. No 
Executive Directors are appointed to the Committee; 
however, they may attend by invitation if the matters 
to be discussed require their participation. You can 
read more about the skills, tenure and experience of 
the members of the Committee on pages 68 to 70.
During the year, the Committee met seven times 
in separately scheduled meetings, with further 
discussions taking place as required and as part 
of scheduled Board meetings. All Committee 
members attended the maximum number of regularly 
scheduled meetings that they were eligible to attend. 
However, in light of the number of meetings held this 
year and noting that some of these were convened 
at relatively short notice to facilitate timely decision 
making, some Committee members were not able 
to attend all meetings. In these circumstances, 
those Committee members provided their input in 
advance of the meeting and the Chair discussed the 
outcomes of the meetings with the relevant member 
shortly thereafter. Further details of individual 
Directors’ attendance can be found on page 75.
Principal objectives of the Nomination Committee
–	 To make sure the Board comprises individuals with 
the necessary skills, knowledge and experience to 
ensure that it is effective in discharging 
its responsibilities.
–	 Oversight of the diversity and inclusion-related 
elements of ESG.
Key responsibilities
–	 Ensuring the appropriate composition of the Board 
and its Committees, and overseeing a rigorous and 
transparent procedure for appointments to the Board.
–	 Maintaining ongoing succession plans for the Board 
and GET, and reviewing the leadership needs of 
the organisation.
–	 Ensuring diversity in the pipeline for senior 
management roles.
Highlights of 2024
–	 Implementation of succession of Group CEO and 
Group Chief Financial Officer, and ongoing Non-
Executive Director succession.
–	 In-depth review of GET succession plans.
–	 Further development of skills matrix.
Areas of focus for 2025
–	 Group Chief Financial Officer transition.
–	 Continued focus on executive succession planning 
and talent development.
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Coats Group plc Annual Report and Accounts 2024
Nomination Committee report cont.
Board and Committee changes and  
appointment processes
As set out in my introduction, the Committee has 
overseen a number of appointment processes 
during the period under review. In relation to the 
comprehensive selection processes that culminated 
in the appointment of David Paja as Group CEO, and 
Hannah Nichols as Group Chief Financial Officer 
designate, professional search agencies were 
appointed in accordance with the Company’s 
procurement policy based on their expertise. Russell 
Reynolds was engaged in relation to the Group CEO 
search and Egon Zehnder was engaged in relation 
to the Group Chief Financial Officer search. Neither 
agency had any connection to the Company or to 
the Board.
In both appointment processes, a diverse longlist of 
candidates was prepared and carefully considered 
to identify the shortlist of candidates that would 
proceed to the interview panel and assessment. 
During the course of a number of meetings, the 
Committee considered the results of externally 
facilitated executive leadership assessments 
together with the feedback provided by the 
interview panel.
David Paja was ultimately identified as the preferred 
candidate as Group CEO due to his proven 
experience in driving growth and highly relevant 
expertise gained in related industries. You can read 
more about David Paja’s induction on the following 
pages of this report. 
In January 2025, it was announced that Hannah 
Nichols had been appointed as the Company’s next 
Group Chief Financial Officer due to her extensive 
financial expertise, considerable international 
experience and track record of driving 
transformational change.
As a result of Nicholas Bull’s departure from the 
Board, the Committee determined that it would be 
helpful to identify an additional Non-Executive 
Director with extensive professional financial 
expertise, in addition to Sarah Highfield, as a result 
of a review of the skills matrix. The recruitment 
process for the appointment of Srinivas Phatak in 
2024 included agreeing the criteria for the candidate 
profile and the most appropriate interview panel to 
lead the process. Inzito was engaged to create a 
comprehensive and diverse longlist of candidates 
for the role. The shortlisted candidates were then 
interviewed, and the appropriate due diligence was 
undertaken to ensure the appropriate fit with the 
requirements including consideration of their skillset 
and experience, their ability to contribute across the 
requisite range of Board topics, whether their 
appointment was in line with the Board’s diversity 
aims and whether they could meet the expected 
time commitment. Recommendations were then 
made to the Board.
Any new Directors are appointed by the Board and, 
in accordance with the Company’s articles of 
association, they must be elected at the next AGM 
to continue in office. All existing Directors stand for 
re-election every year. This year, all Directors, with 
the exception of Jackie Callaway, who is not 
standing for re-election, will submit themselves for 
re-election or election at the AGM.
The announced succession plans for the roles of 
Senior Independent Director and Chair of the Audit 
and Risk Committee, also triggered by the planned 
retirement of Nicholas Bull at the 2024 AGM, were 
implemented. Sarah Highfield also joined the 
Sustainability Committee on 1 January 2024, at the 
same time as the three divisional CEOs and the 
Group Sustainability Director joined.
Induction
Following their appointments in 2024, both David Paja 
and Srinivas Phatak took part in comprehensive and 
tailored induction programmes. David Paja has visited 
25 of our sites representing 90% of Coats revenue, 
allowing him to truly understand the business and to 
engage with employees and key customers. He has 
also engaged with other key stakeholders through 
results presentations, investor roadshows and in 
separately arranged sessions. The Committee is 
delighted with the smooth transition of the Group CEO. 
Effectiveness
–	 Training on ethics and  
other governance topics
–	 Briefed on outcomes 
of most recent 
effectiveness review
Accountability
–	 Information on the 
Group budget and 
strategy
–	 Last Annual Report
Leadership
–	 Meeting senior 
executives
–	 Site visits
Relations with 
stakeholders
–	 Meeting with employees  
during site visits
–	 Meeting with key 
customers
In line with our usual process, Srinivas Phatak received 
training on his Directors’ duties, and his obligations in 
relation to serving on the Board of a listed company. 
Srinivas met with each Board member, received deep 
dive sessions on each of the divisions presented by 
the relevant leadership team as well as in-depth 
presentations on sustainability and Group Finance, and 
he has also met with relevant external advisors (such 
as our brokers and our auditors). Our induction 
programme ensures that Directors are appropriately 
briefed on current Board topic areas, the Group’s 
strategy, purpose, culture and structure, our 
stakeholders as well as our operations and the  
wider industry.
Succession planning, talent and skills review
The Committee, on behalf of the Board, regularly 
assesses the composition of the Board and its 
Committees in terms of skills, experience, diversity 
and capacity. 
The Board tenure tracker is regularly presented to 
ensure that discussions are held well in advance of 
planned departures, to allow appropriate skills gap 
identification and timely succession.
The Committee uses the Board skills matrix to 
provide a detailed and transparent assessment of the 
current skill set on the Board and identify any training 
needs or skills/experience gaps on the Board. The 
Board continues to undertake all regular training 
required for Group employees and also received in-
depth cyber-security training, including participating 
in a simulation exercise that was facilitated by a 
variety of internal and external experts. 
The Committee held several detailed sessions 
considering the succession plans for the GET and 
the talent available below GET level. Management 
provided an overview of the talent development 
plans for those talent pools.
In making recommendations for the annual re-
election of the Chair and Non-Executive Directors, 
the Committee considers the skills, knowledge, 
experience, independence and the time 
commitments of each Director to ensure that they 
have sufficient time to fulfil their responsibilities to 
the business. The Non-Executive Directors are 
considered independent. On appointment to the 
Board, the Chair was considered independent in 
accordance with the terms of the 2018 UK Corporate 
Governance Code.
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Coats Group plc Annual Report and Accounts 2024
Nomination Committee report cont.
Review on ethnic diversity as at least 40% of the 
individuals on the Board are women; the position of 
Chief Financial Officer is held by a woman; and at 
least one individual on the Board is from a minority 
ethnic background. 
The Company has collected the diversity data used for 
these purposes from each individual on a voluntary 
basis. As set out in this Committee’s report last year, the 
Board agreed a target that the Group should maintain 
circa 50% ethnic diversity in our senior leadership team 
(using the definition recommended by the Parker 
review), while recognising that periods of change in  
the composition of senior leadership may result in 
temporary periods when this balance is not achieved. 
The Board considers this that target continues to be 
appropriate and suitably challenging. You can read 
more about our progress against our other sustainability 
objectives, which form an integral part of our Long Term 
Incentive share plan measures, and read more about 
the diversity of our global workforce in the Sustainability 
Report (www.coats.com/sustainability).
Board and GET gender identity or sex*
Number of 
Board 
members
Percentage 
of the 
Board
Number of 
senior 
positions 
on the 
Board 
(CEO, CFO, 
SID and 
Chair)
Number in 
executive 
management 
(GET and 
direct 
reports)
Percentage of 
executive 
management 
(GET and 
direct reports
Men
5
56%
3
35
70%
Women
4
44%
1
15
30%
Other categories
Not specified/prefer 
not to say
At Coats, we define our senior management team as 
employees that are band three or above in the 
organisation (Senior Management). As at 31 
December 2024, there were 53 women (30%) and 124 
men (70%) in Senior Management.
Board and GET ethnic background*
Number of 
Board 
members
Percentage 
of the 
Board
Number of 
senior 
positions 
on the 
Board 
(CEO, CFO, 
SID and 
Chair)
Number in 
executive 
management 
(GET and 
direct reports)
Percentage of 
executive 
management 
(GET and 
direct reports
White British or other 
White (including 
minority-white 
groups)
7
78%
4
20
40%
Mixed/Multiple Ethnic 
Groups
Asian/Asian British
2
22%
14
28%
Black/African/
Caribbean/Black 
British
Other ethnic group, 
including Arab
3
6%
Not specified/prefer 
not to say
13
26%
*	
The data in the tables above was collected directly from the Board and GET.
Members of the Board and GET were asked to indicate their gender identity, 
sex and ethnic background against the categories in the table above.
Assessment of the effectiveness of the Committee
The Committee’s effectiveness in respect of the 
year ended 31 December 2024 was evaluated by 
way of a questionnaire-based internal review. 
Respondents included Committee members and 
regular attendees. The Committee considered the 
findings of the process, as well as confirming that 
the findings from last year’s assessment had been 
adequately addressed.
The 2024 evaluation indicated that the Committee 
was working effectively and identified opportunities 
for the 2025 Committee work plan, which have been 
appropriately included and are included in the 
Committee’s workplan for 2025.
Signed on behalf of the Nomination Committee by: 
David Gosnell
Chair, Nomination Committee
5 March 2025
When reviewing the wider composition of the Board 
and GET, the Committee considered the various 
aspects of DEI, ensuring the desired culture of the 
Group is maintained, and also reviewed the required 
skills profile for the Group.
Diversity
The Board recognises the many benefits of building a 
diverse leadership team and the charts on page 75 set 
out the gender and ethnic background, as well as 
diversity of experience, of the Board. The Board 
believes that embracing diversity, in all its forms, 
promotes inclusivity and supports good decision 
making by the Board.
Our Board Diversity Policy, which is available at  
www.coats.com, was updated in 2022 to reflect the 
targets set by the FTSE Women Leaders Review on 
gender diversity. Our workforce diversity policy is 
included in our Coats Key People Principles, which 
set out the range of policies in place to ensure fair 
and equitable treatment of our diverse workforce. 
The diversity section includes the same definitions 
and references as our Board policy and aims to 
promote an inclusive working environment. You can 
access our Coats Key People Principles on our 
website (www.coats.com/en/Download-Centre).
We are now a number of years into our internal 
diversity programmes Coats for All and Coats for 
Her, and the Board and the Committee have 
continued to monitor the initiatives and outcomes 
regularly to ensure the Company is tracking 
appropriately against our ambitious internal targets. 
You can read more about this in the People and 
Culture section of this report on pages 23 to 24.
The Committee is pleased to report that during the 
year ended 31 December 2024 and up to the date of 
this Report, the Board had met the targets of the 
FTSE Women Leaders Review and the Parker 
Last year, Coats set out our succession plan for the role of 
Chair of the Board. The Committee and Board, in a process led 
by the Senior Independent Director and from which the Chair 
recused himself, engaged with shareholders to explain the 
rationale for this proposal and the associated resolution was 
passed at the 2024 AGM, for which we value your support, 
with over 95% of the votes cast being voted in favour. 
In line with the plan communicated last year and set out in this 
year’s Notice of AGM, the Board is proposing David Gosnell’s 
re-appointment to the Board and the Committees on which he 
sits for the remaining term of two years, subject to annual 
re-election. The Board and Committee are satisfied that David 
continues to demonstrate independent character and 
judgement, and promotes constructive challenge amongst the 
Board, and that he continues be independent in accordance 
with the Code. They are also satisfied that he continues to 
perform effectively and demonstrate commitment to the role.
The Committee and the Board, acting with David having 
recused himself, are highly mindful of the vital need for strong 
and consistent leadership from the Chair to continue to guide 
the Board, the Committees on which he sits and the Group in 
a period of changing leadership during the transition of the 
Group CEO and Group Chief Financial Officer, and the recent 
wider changes within the Group. Accordingly, after careful 
consideration, the Board has concluded that David’s proposed 
re-appointment is appropriate and in the best interests of the 
Company and its stakeholders to ensure continuity during this 
transitional period. 
In the second half of 2024 and in early 2025, Steve Murray, 
Senior Independent Director, has engaged with a number of 
the Company’s key institutional investors and several proxy 
advisory firms to confirm the process and timing for identifying 
David’s successor, which is expected to commence later in 
2025. The shareholders indicated clear support for David 
continuing as Chair, with the majority supportive of his re-
appointment for the remaining term of two years, subject to 
annual re-election.
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Coats Group plc Annual Report and Accounts 2024
Remuneration Committee report
Dear Shareholder,
As Chair of the Committee, I am pleased to present 
the Directors’ Remuneration Report for 2024.
This report consists of three parts: this letter 
summarising the work of the Committee and the 
decisions made, the Annual Report on 
Remuneration for 2024 (the Report), and a summary 
of the Directors’ Remuneration Policy (the Policy) 
approved by shareholders at the 2023 AGM.
This letter and the Report will be subject to an 
advisory vote from shareholders at the 2025 AGM.
Highlights of 2024
–	Enabled and supported smooth Executive Director 
succession planning, including determining the 
treatment of remuneration for the Group CEO and 
Group Executive Team (GET) roles and in early 
2025, Group CFO roles. 
–	Balancing the volatility of the macro economic 
environment and shareholder interests with 
remuneration packages for our Executive 
Directors, GET members and wider workforce. 
–	Considering developments in market practice and 
the associated implications for the Group.
–	Determining the 2023 annual bonus awards and 
the vesting of the 2021 LTIP award. 
–	In-depth review of remuneration arrangements 
within the wider workforce including the annual 
review of our global Living Wage policy, to which 
we are proud our employees are above the  
living wage.
–	Reviewing Executive Directors and Group 
Executive Team salaries.
–	Considering the implementation of the Policy for 
2025, including performance measures, targets 	
and weightings with early consideration of our 
policy which will be reviewed in full during 2025.
Areas of focus for 2025 
–	Reviewing the effectiveness of the current Policy 
against the current market and developing a new 
Policy ahead of the 2026 AGM. 
–	Overseeing the implementation of the current 
Policy for 2025.
–	Setting incentive targets in a continuing 
challenging macro-environment, ensuring 
alignment with strategy and shareholder interests, 
as well as ensuring fairness and transparency.
–	Continuing to review workforce remuneration 
policies to support our environmental, social and 
governance strategy as well as our Diversity, 
Equity and Inclusion objectives.
Workforce context
Whilst the challenges of high levels of inflation and 
cost of living pressures across the geographies 
in which we operate reduced in 2024 relative to 
previous years, the Committee remained mindful 
of these challenges and the need to ensure that 
the wider workforce were adequately supported, 
through a combination of approaches, including 
out of cycle salary increases and amendments 
to our benefits offering within countries.
Salary increases for the Executive Directors and the 
Group Executive Team were approved considering 
the increases applied to the relevant local workforce 
and their overall position against the market. 
Increases for our Executive Directors and GET in 
the UK were positioned below the UK workforce 
increase of 3.6%, with the exception of the Group 
CFO who received an exceptional increase of 10% 
to align her with the full market rate for the role. 
This increase reflected a number of factors that 
included her growth in her role and exceptional 
performance. The Committee also took into account 
the importance of Group CFO retention during a 
Echo Lu
(Chair since May 2021)
Member since 2017
	
Steve Murray
Member since 2022
 
Fran Philip
Member since 2016
Principal objectives of the Remuneration 
Committee
Our main objectives are to have fair, equitable 
and competitive reward packages that support 
our vision and strategy and help ensure that 
rewards are performance based and encourage 
longer-term shareholder value creation.
Key responsibilities
–		Implementing the Directors’ Remuneration 
Policy (the Policy).
–	Ensuring the competitiveness of reward.
–	Designing the incentive plans.
–	Setting incentive targets and determining 
award levels.
–	Reviewing workforce remuneration and 
related policies and the alignment of 
incentives and rewards with business 
strategy and culture.
–	Engaging with shareholders on remuneration 
matters, including the Directors’ 
Remuneration Policy.
Our executive remuneration principles
–	Competitive with the local market and 
industry where we recruit from.
–	Rewards the achievement of personal goals 
for each role.
–	Linked to company performance over the 
short and long term.
–	Fair and transparent rewards linked to clear 
measures and aligned to business strategy 
and goals.
–	Aligned to the principles and operation of the 
remuneration policy for the wider workforce.
–	Ensures that Remuneration appropriately 
reflects and incentivises the Company’s 
Sustainability goals.
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Coats Group plc Annual Report and Accounts 2024
Remuneration Committee report cont.
critical period of Group CEO transition. As a result, 
the Committee increased her salary to around the 
median of the companies within the top half of the 
FTSE 250 Index (excluding investment trusts). This 
peer set was considered to be of similar size and 
complexity to Coats given the FTSE ranking of Coats 
and the nature of the companies in this peer set. 
Fran Philip, our Designated Non-Executive for 
Workforce Engagement, continued her programme 
of meetings with our employees in all our local 
markets. Employees were encouraged to discuss 
matters of remuneration across the Group and 
raise any issues that they considered appropriate. 
The impact on remuneration of continued high 
inflation on employees was raised as part of 
these discussions in certain geographies. 
Incentive structures remain aligned within the Coats 
business, therefore, the key metrics that apply to 
senior management compensation are applied 
consistently throughout the organisation, with our 
main bonus plan being subject to the same key 
financial measures as our Executive Directors. 
As noted last year, we are in the process of 
enhancing and harmonising our benefits offering 
across the Group to ensure we continue to offer 
the most appropriate packages to our employees 
and are pleased to see the introduction of our 
global employee assistance programme in 
2025, allowing all our employees to have the 
assistance they need at the time they need it.
Executive Director changes during 2024
As announced on 30 May 2024, as part of Coats 
Group plc’s leadership succession plan, the Board 
reached agreement with Rajiv Sharma that he would 
step down from the Board and role of Group CEO. 
He stepped down from the Board and role of Group 
CEO on 30 September 2024. 
Given his leaving employment was by way of mutual 
agreement in connection with the Board’s leadership 
succession plans, the Committee determined that, in 
line with the discretions included within the relevant 
plan rules, that he would remain eligible to participate 
in the annual bonus plan for 2024, pro-rata for his 
period of employment, and also retain a pro-rata 
entitlement to his in-flight LTIP awards. Performance 
conditions will be tested at the end of the relevant 
performance periods and remain subject to the 
relevant malus and clawback provisions. In line with 
typical practice for executives leaving employment 
part way through a financial year (and Coats’ 
Remuneration Policy), the 2024 bonus will be paid in 
cash. Rajiv Sharma remains subject to the Company’s 
post-cessation of employment share ownership 
guidelines and is therefore required to retain 200% of 
his salary at 30 September 2024 for a period of two 
years. Further details of Rajiv’s remuneration are set 
out later in this report.
Also announced on 30 May 2024, was the 
appointment of our new Group CEO David Paja. 
David commenced employment on 1 September 
2024 and became Group CEO on 1 October 2024. 
David was appointed on a base salary of £720,000, 
positioning him around the median of the companies 
within the top half of the FTSE 250 Index (excluding 
investment trusts) which was considered the 
appropriate level of remuneration given the size and 
complexity of Coats. The Committee had regard to 
the remuneration package in his previous role and 
noted that the structure of his package remains 
comparable to his previous remuneration package. 
David’s annual bonus and LTIP terms are aligned 
with those of the former Group CEO. David received 
a partial buyout, mirroring the terms of remuneration 
forfeit, in connection with joining Coats. Full details 
of his remuneration are set out later in this report.
Executive Director changes in 2025
It was announced on 7 January 2025 that our  
Group Chief Financial Officer, Jackie Callaway,  
had mutually agreed to step down from the Board  
at the conclusion of the AGM on 21 May 2025.  
Her remuneration arrangements on cessation of 
employment will be treated consistently with the 
Directors’ Remuneration Policy and the relevant plan 
rules. Our intentions in relation to her leaver terms 
are set out later in this report.
Also announced on 7 January was the appointment 
of our new Group CFO, Hannah Nichols. She will join 
as Group CFO Designate on 24 April 2025 and will 
become Group CFO at the conclusion of the AGM 
on 21 May 2025. Hannah’s base salary has been set 
at £465,000 which is around the median of the 
companies within the top half of the FTSE 250 Index 
(excluding investment trusts) which is considered the 
appropriate rate for the role given the size and 
complexity of Coats. Hannah’s remuneration 
package, including the annual bonus and LTIP terms 
are aligned with those of our current Group CFO. 
Hannah will receive a performance related buyout, 
mirroring the terms of what was forfeit, in connection 
with her appointment. Further details of her 
remuneration are set out later in this report.
2024 remuneration outcomes
During 2024, the Group has delivered strong 
performance; strong Sales and EBIT performance 
was delivered by a faster than anticipated recovery 
from the destocking cycle in Apparel and Footwear 
and continued market share gains, with some offset 
from subdued end markets in PM. Further detail can 
be found on page 39.
The 2024 annual bonus outcomes reflect strong 
financial and strategic performance delivered by our 
Executive Directors during the year. All financial 
elements of the bonus exceeded the maximum 
target levels. This resulted in 100% of maximum 
being payable for the financial elements of the  
2024 annual bonus. 
Page 91 provides further information regarding 
performance against the Executive Directors’ 
individual objectives and the associated individual 
outcomes, including the pro-rated bonus paid to 
David Paja and Rajiv Sharma.
The Committee critically assessed performance for 
the year and is comfortable that the annual bonus 
outcome reflects the strong financial and non-
financial performance during the year. As a result, 
no adjustments to the formulaic outcome  
were made.
With regards to long-term performance, we achieved 
growth in Normalised EPS over the three-year 
period ending 31 December 2024 to 9.09 cents, 
post adjustment for pension buy-in, delivered a total 
shareholder return of circa 56%, and made strong 
strategic progress against a balanced scorecard of 
objectives. This resulted in 80.2% of the total award 
vesting. Further details, including details of our 
approach to the pension buy-in, are provided on 
page 92. As with the annual bonus the Committee 
reviewed this outcome in the context of 
performance delivered over the performance period, 
and the experience of our stakeholders, and 
concluded that this outcome was a fair reflection of 
performance. As a result, no adjustments to the 
formulaic outcome were made.
The Committee can confirm that the Policy approved 
at the 2023 AGM was implemented in 2024 as the 
Committee intended and worked effectively. 
The Committee continues to monitor this on an 
ongoing basis.
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Coats Group plc Annual Report and Accounts 2024
Remuneration Committee report cont.
Implementation of Policy for 2025
As the remuneration arrangements for the Group 
CEO and the incoming Group CFO were set on 
appointment, the Committee is comfortable that no 
material changes are required to remuneration 
levels for 2025.
No material changes to the measures of the 2025 
annual bonus or LTIP grants are envisaged relative 
to 2024. With a 5% increase in the Sales weighting 
to 15% under the annual bonus plan and an equal 
reduction to Free Cash Flow to 25%. All other 
weightings remain the same.
Base salary – as of 1 January 2025:
Group CEO (David Paja) – £720,000
Outgoing Group CFO (Jackie Callaway) – £474,705
Incoming Group CFO (Hannah Nichols) – £465,000
The Committee remains mindful of institutional 
investor guidance in relation to salary increases and 
the compounding impact of Executive Director 
increases during periods of higher inflation and will 
continue to balance this with the need to recognise 
the performance, experience and calibre of the 
Executive Directors.
Pension – the pension provision for the Executive 
Directors is aligned to the typical rate of pension 
provision for the UK workforce of 12%.
Annual bonus – the maximum annual bonus 
opportunity will remain at 150% of salary for the 
Group CEO and 125% of salary for the incoming 
Group CFO with 50% deferred into shares for  
the Group CEO and 40% for the Group CFO.  
The deferral period is three years. The performance 
metrics are as detailed above.
The targets for the annual bonus will be disclosed 
retrospectively in next year’s Remuneration Report. 
The Committee is comfortable that the targets 
reflect our business objectives and will be 
appropriately stretching.
LTIP – the Long Term Incentive Plan awards are 
expected to be granted at 175% and 150% of salary 
for the Group CEO and the incoming Group CFO 
respectively, with awards vesting subject to three-
year performance targets. The award levels are 
consistent with the awards granted in 2024. 
As a result of the leadership changes during the 
year and the wider market environment, the 
performance targets to apply to the 2025 awards 
will be included in the market announcement at the 
time of granting the awards. 
Jackie Callaway, as part of our agreed leadership 
transition, will remain eligible to earn a pro-rata 
bonus for her period of employment up to 30 June 
2025. Jackie will not be eligible to receive an LTIP 
grant in respect of 2025. 
Conclusion
The Committee is satisfied that the decisions made 
during 2024 reflect the financial and non-financial 
performance of the Group during the year and 
balance the interests of all key stakeholders.
As part of the development of a new Policy ahead of 
our 2026 AGM, the Committee is planning to 
engage with our largest shareholders regarding any 
proposed changes in advance. 
I look forward to receiving your support for our 
Annual Report on Remuneration at our 2025 AGM.
Echo Lu
Chair, Remuneration Committee
5 March 2025
 
We are committed 
to maintaining a GPTW™ 
for our employees by 
delivering fair and 
equitable remuneration 
practices globally.”
Echo Lu,
Chair, Remuneration Committee
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Coats Group plc Annual Report and Accounts 2024
Remuneration Committee report cont.
Remuneration Policy summary (Executive Directors)
Element
Key features of policy
Fixed base and benefits
–	 Base salary is benchmarked against the FTSE 250 and a selected comparator 
group of similar size and complexity
–	 Benefits benchmarked to local market practice and reflect the nature of the 
Executive’s role
–	 Pension benefits aligned to the workforce where the role is based
Annual bonus
–	 Maximum award opportunity: 150% of base salary
–	 A proportion of annual bonus is subject to a mandatory deferral. Deferred 
bonuses are converted into share awards and are released after a three-year 
retention period so that the value of annual incentives is significantly aligned 
to the longer term performance of the Company
LTIP
–	 Maximum LTIP award opportunity: 175% of base salary (200% exceptional 
circumstances)
–	 Awards are discretionary and may be made annually
–	 Vesting is conditional on three-year performance conditions. Any shares vesting 
after three years are also subject to an additional two-year holding period
–	 Performance measures and targets are determined by the Committee, taking into 
account the balance of strategic priorities for Coats for the upcoming three-year 
performance period
–	 Any LTIP shares awarded are subject to malus and clawback 
Shareholding Requirement
–	 200% of salary within five years of appointment
–	 Applies for 2 years post termination of employment based on the lower of the 
shareholding requirement or the actual shares held on termination
Remuneration release profile
2024
2025
2026
2027
2028
Base salary/Benefits/Pension
Cash & benefits
Short Term Incentive
Cash
Deferred shares
Long Term Incentive
Performance Period
Holding Period
Summary of implementation in 2024
Fixed remuneration
Implementation in 2024
Base salary
1 July 2024 review
–	 Increase of 3.4% for Rajiv Sharma and 10% for Jackie Callaway, against a 
budgeted increase for the UK workforce of 3.6%. Further details on the increase 
for Jackie Callaway are provided the Chair’s introductory letter. 
–	 David Paja joined the Group on 1 September 2024 on a salary of £720,000.
Pension benefit
Aligned to the UK workforce
–	 12% of salary for all Executive Directors
Annual bonus
Performance measures:
Sales: 10%
EBIT margin 20%
EBIT: 20%
Free Cash Flow: 30% 
Personal objectives: 20%
–	 For David Paja and Rajiv Sharma, a maximum bonus of 150% of salary pro-rated 
for time served in the year. David’s bonus is subject to a 50% deferral of the 
outcome into shares, whilst Rajiv’s bonus was paid in cash as detailed in the 
Chair’s introductory letter. 
–	 For Jackie Callaway a maximum bonus of 125% with a deferral of 40% of the 
outcome in shares.
–	 Outcomes for 2024 shown on page 91.
Long Term Incentive
Performance measures: 
EPS growth: 30%
Average Cash Conversion: 20% 
Total Shareholder Return: 25% 
Sustainability: 25%
–	 Grant of 175% of salary to Rajiv Sharma. As set out in the Chair’s introductory 
letter and in line with the approach taken for Rajiv’s other in-flight awards, this 
was pro-rated for time served during the performance period.
–	 Grant of 150% of salary to Jackie Callaway.
–	 Three-year performance period with subsequent two-year holding period.
–	 Targets for 2024-2026 on page 93.
–	 David Paja did not receive an LTIP grant in 2024. David received a buy-out award 
detailed on page 94.
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Coats Group plc Annual Report and Accounts 2024
Directors’ remuneration report
for the year ended 31 December 2024
Annual Report on Remuneration
This Annual Report on Remuneration has been prepared in accordance with the relevant provisions of the 
Companies Act 2006 and as prescribed in The Large and Medium-sized Companies and Groups (Accounts 
and Reports) Regulations 2008 as amended (the Regulations). Where indicated, information has been 
audited by Ernst & Young LLP.
The Annual Report on Remuneration will be subject to an advisory vote at the AGM on 21 May 2025.
Executive Directors
Rajiv Sharma was appointed to the Board on 2 March 2015 and was Group Chief Executive with effect from 
1 January 2017 until 30 September 2024. David Paja was appointed to the Board on 1 September 2024 and 
took on the role of Group CEO on 1 October 2024. Jackie Callaway was appointed to the Board on 
1 December 2020 and appointed as Group Chief Financial Officer on 31 March 2021, remaining as such 
during 2024.
Single total figure for Executive Directors’ remuneration for 2024 (audited information)
David Paja
Rajiv Sharma
Jackie Callaway
£000’s
2024
2023
2024
2023
2024
2023
Base salary
240.0
–
527.2
678.5
453.1
421.3
Benefits
15.7
–
90.7
46.4
28.1
21.8
Other
–
–
– 
–
–
–
Pension
28.8
–
63.3
81.4
54.4
50.6
Total Fixed
284.5
–
681.1
806.3
535.6
493.6
Annual bonus
360.0
–
807.0
693.3
593.4
358.8
LTIP
1,007.7
–
1,085.0
1,401.2
692.9
745.7
Total Variable
1,367.7
–
1,892.0
2,094.5
1,286.3
1,104.4
Total
1,652.2
–
2,573.1
2,900.8
1,821.9
1,598.1
The figures in the table above have been calculated on the basis of the following:
–		David Paja’s remuneration has been disclosed from commencement of employment on 1 September 2024. 
He received a base salary of £720,000 (pro-rated) and received a pro-rated annual bonus.
–		Rajiv Sharma’s remuneration has been disclosed up to 30 September 2024. 
–		Benefits: this is the value of all benefits including a car allowance, private medical insurance, life insurance 
and income replacement insurance, tax return support where applicable, and a payment in lieu of untaken 
holidays for Rajiv Sharma. A car allowance of £20,000 per annum was paid to David Paja and Rajiv Sharma, 
with an allowance of £15,000 per annum paid to Jackie Callaway.
–	Annual bonus: is the total value in cash and shares of the annual bonus that is attributable to each  
year. 50% of the 2024 bonus outcome for David Paja and 40% for Jackie Callaway will be awarded in 
shares under the terms of the Deferred Annual Bonus Plan. Rajiv Sharma’s bonus was pro-rated to  
30 September 2024 and David Paja’s bonus was pro-rated from the commencement of his employment  
on 1 September 2024. 
–	Pension: represents the value of all employer contributions to any pension plan or cash payments paid in 
lieu of a pension benefit. No Executive Director participates in any defined benefit pension arrangement. 
All Executive Director pension benefits are based in 12% of base salary, being the rate received by the 
majority of the UK workforce rate. 
–	The value of the LTIP awards shown for 2023 have been restated to reflect the value on the vesting date 
(7 March 2024) including dividend equivalents accrued to this date, using the share price on 7 March 2024 
of £0.764.
–	Of the amount shown, £270,971 and £144,214 of this value represents the value attributable to share price 
growth over the three-year period (excluding dividend equivalents) to Rajiv Sharma and Jackie Callaway 
respectively. No discretion was exercised in respect of these amounts.
–	The value of the LTIP awards shown for Rajiv Sharma and Jackie Callaway for 2024 reflects the vesting of 
LTIP awards with a performance period ending in 2024. Of the amount shown, £347,547 and £221,970 of 
this value represents the value attributable to share price growth for Rajiv Sharma and Jackie Callaway 
respectively, over the three-year period based on the average share price for the last three months for 
2024. No discretion was exercised in respect of these amounts. 
–	The value of the LTIP award shown for David Paja reflects the buy-out award granted on 6 September 2024 
to David Paja based on the share price immediately prior to grant of £0.998. The award was granted over 
1,009,693 shares, in partial compensation for awards forfeited from his previous employer in connection 
with joining Coats and reflects the structure of the forfeit award. The award is subject to remaining in 
employment is not subject to a performance condition. Further details are set out on page 94.
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Coats Group plc Annual Report and Accounts 2024
Directors’ remuneration report cont.
Annual bonus outcome 2024 (audited information)
The annual bonus for 2024 was determined in accordance with the details provided in the 2023 Directors’ 
Remuneration Report. Details of the bonus measures and opportunities are provided in the table below.
The measures were selected to incentivise a balance of outcomes that reflected the strategic priorities  
of the Group.
Annual bonus 2024
Weighting
Achievement
 
Performance 
achieved in 2024
Performance Measure
Threshold 
(10% of max)
Target 
(50% of max)
Maximum
(100% of max)
Outcome 
as % of max
Group Sales $m
10%
1,401
1,445
1,485
1,520
10%
Earnings Before Interest and Taxation (EBIT) $m 
20%
240
255
270
274
20%
EBIT Margin (%)
20%
16.7%
17%
17.3%
18%
20%
Free Cash Flow (adjusted) (FCF) $m
30%
100
115
130
154
30%
Individual objectives
20%
–-
–
–
See below
20%
Total
100%
100%
Targets were set in relation to budget for the 2024 financial year. The Committee resolved that the Board’s 
decision to undertake a pension buy-in during the year should not result in the 2024 bonus targets becoming 
easier or harder to achieve as a result of de-risking the pension scheme. The figures in the table above have 
not been adjusted for the marginal reduction in Free Cash Flow as a result of the pension buy-in. The 
Committee did consider the numbers adjusted for the pension buy-in (i.e. adjusting for the higher interest 
costs and reduced pension contributions in 2024) but noted it did not impact the bonus outcome (i.e. 
maximum was earned with or without a pension buy-in adjustment) and so no adjustment was made. 
All figures reflect the 2024 Plan exchange rates.
The performance reflected in the table above reflects the figures disclosed in this Annual Report adjusted to 
exclude the impact of any exchange rate fluctuations during the year $19 million for Sales, $4 million for EBIT, 
and $0.8 million for FCF respectively.
For the 2024 annual bonus, challenging individual objectives were established by the Committee for each 
Executive Director that reflected activities and initiatives intended to improve the performance of the Group. 
The objectives established and assessed for 2024 are reflected in the section below.
Personal objectives linked to 2024 bonus
At the beginning of the year the Committee determined that the following personal objectives would be 
linked to 20% of the maximum annual bonus outcome. All objectives were equally weighted.
Objective
Outcome
Group CEO – 
David Paja
Higher EBIT margin of 18% 
at Group level
With 18% EBIT margin achievement for 2024, the Committee considered 
David’s efforts instrumental in ensuring our EBIT margin for 2024 went 
beyond the target set for the former CEO and CFO at the start of the 
year. The Committee therefore considered this object to be met in full.
Deliver an in-depth review 
of PM with actionable plans 
for 2025
A clear and compelling strategy for Performance Materials was 
presented to the Board. In addition, David identified the need to close 
Toluca, which at the time of assessment, was in active progress for 
completion in 2025, and appointed a new CEO, Performance Materials 
Division and Group Chief Operations Officer.
The Committee determined the outcome of 20% out of a possible 20% of maximum bonus.
Former Group 
CEO – Rajiv 
Sharma
Deliver 17% EBIT margin at 
Group level in H1 and FY
With the full year target of 17% achieved well ahead of the stretch target 
set for H1, and with 18% EBIT margin achievement for 2024, the 
Remuneration Committee is satisfied this objective was met in full.
Deliver 2024 sustainability 
targets
Our 2024 sustainability targets included: a reduction in Scope 1 & 2 
emissions; transition of in-scope raw materials to non-virgin oil-based 
materials; increase in water recycling rate; zero waste to landfill; effluent 
compliance; GPTW™ coverage; and females in senior leadership roles. 
Performance against these targets is set out on page 40. Given the high 
performance levels to date, the Committee is satisfied this objective was 
met in full.
The Committee determined the outcome of 20% out of a possible 20% of maximum bonus.
Group CFO – 
Jackie Callaway
Deliver 17% EBIT margin at 
Group level in H1 and FY
With the full year target of 17% achieved well ahead of the stretch target 
set for H1, and with 18% EBIT margin achievement for 2024, the 
Remuneration Committee is satisfied this objective was met in full.
De-risk pensions
We are now fully insured in a £1.3 billion deal, marking a significant step 
forward for the Group. It provides certainty for our pensioners, removes 
a significant cash commitment and enables management to focus on 
accelerating profitable growth and deploying capital to our other key 
priority areas for 2025 and beyond with the final terms and timing of the 
buy-in delivered ahead of the Board’s original planning. Therefore, the 
Committee is satisfied this objective was met in full. 
The Committee determined the outcome of 20% out of a possible 20% of maximum bonus.
The above table includes the targets set and actual performance against them other than where information 
is considered price sensitive by the Remuneration Committee. 
In making its final determination of performance against the targets, the Committee had regard to the 
exceptional financial performance and stakeholder experience during 2024, including a substantial 
shareholder return, which resulted in the Committee being comfortable that paying bonuses in line with the 
original formulas set was appropriate.
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Coats Group plc Annual Report and Accounts 2024
Directors’ remuneration report cont.
The EPS targets were set in 2022 to be adjusted for the impact of IAS 19 and wider pension finance charges, 
so that the performance condition reflected underlying performance. EPS was restated for the pensions buy-
in. The Committee, is comfortable this approach ensures the impact of the targets are no more or less 
challenging than originally intended when the target was set, this adjustment restated EPS for the financing 
impact of the buy-in on the targets. There was no material impact on the Cumulative Free Cash Flow target 
over the performance period. As intended at the time the targets were set, the Committee intends to treat 
in-flight LTIP awards in a similar manner with final determination being made prior to vest.
Summary of performance against sustainability targets
The extent of achievement in performing against the sustainability targets set for the 2022 LTIP is set  
out below. 
The Committee tested the extent of achievement against each individual target. All targets are measured 
against a 2022 baseline. For a partial achievement of each measure, up to 25% of the award will vest if a 
minimum threshold performance standard is obtained in all three targets, rising to 100% vesting for the 
achievement of all three. 
Area
Target
Performance
Percentage 
Achievement of 
Target
Recycled materials
To achieve a growth in sustainable 
(non-virgin oil based) materials to 40% 
by 2024
Growth to 46% was achieved.
100%
Emissions
Pro-rata reduction in Scope 1 & 2 
emissions of 11%
Reduction of 51% achieved.
100%
Water Usage
Increase water recycling rate and 
achieve a 5% increase.
14% increase was achieved by the end 
of 2024.
100%
Overall performance
100%
The Committee considered the Group’s overall performance over the 2022 LTIP performance period and felt 
that the outcome of 80.2% appropriately reflected the performance of the business during the performance 
period which included an unforeseen and significant destocking cycle. As a result, no adjustments to the 
formulaic outcomes were made.
Share awards granted in 2024 (audited information)
The following share awards were granted to Executive Directors during the financial year ended 
31 December 2024. The targets for achieving minimum performance for each measure, where these apply, 
are shown in the table overleaf.
The share price shown, was used to calculate the number of options awarded under the terms of the Coats 
Group plc Long Term Incentive Plan, is based on the mid-market closing price for the day immediately 
preceding the grant date.
Summary 2024 Bonus Outcome
The Committee assessed the formulaic outcome and were comfortable that these outcomes were reflective 
of a holistic assessment of performance delivered during the year, reflected shareholder value, and the 
experience of employees during the year, who have generally excelled against their bonus targets. As a 
result, no adjustments to the formulaic outcomes were made.
Performance Measure
Bonus opportunity (% of salary)
2024 bonus outcome (% of maximum)
Bonus outcome (£)
Group CEO – David Paja
150%
100%
£360,0001
Group CEO – Rajiv Sharma
150%
100%
£806,9862
Group CFO – Jackie Callaway
125%
100%
£593,381
1.	 The amount of bonus for David Paja reflects his time in role between 1 September 2024 to the end of the financial year.
2.	 The amount of bonus for Rajiv Sharma was pro-rated to 30 September 2024.
Long Term Incentive award vesting (audited information)
On 4 March 2022 Rajiv Sharma and Jackie Callaway were granted an award over 1,698,806 and 904,157 
shares under the terms of the Long Term Incentive Plan respectively in the form of nil cost options. Awards 
vest according to performance over the period from 1 January 2022 to 31 December 2024 (referred to as 
2022 LTIP). Due to Rajiv stepping down from the Board, his outstanding awards were pro-rated, resulting in 
1,415,672 shares outstanding under the 2022 LTIP after cessation. 
As set out in the table below 80.2% of the shares granted will vest on 6 March 2025.
The performance measures were based upon Total Shareholder Return performance (TSR), Earnings Per 
Share CAGR (EPS) and Cumulative Free Cash Flow relating to Coats Group plc. The achievement of the  
Long Term Incentive Plan performance measures and the consequent vesting of the awards are shown in  
the table below.
2022 LTIP: Performance period 1 January 2022 to 31 December 2024
Measure
Weighting
Threshold 
(25% vesting)
Mid 
(62.5% vesting)
Maximum 
(100% vesting)
Actual
Outcome as % of 
max LTIP
EPS CAGR
40.0%
5% CAGR 12.5% CAGR 20% CAGR 10.1% CAGR
20.2%
Cumulative Free Cash Flow
20.0%
$321m
$359m
$396m
$398m
20%
Total Shareholder Return versus the FTSE 250 
excluding investment trusts
20.0%
Median
62.5th 
Percentile
Upper 
Quartile
88th 
Percentile
20%
Sustainability
20.0%
See summary of performance below
20%
Total
80.2%
92
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TCFD
OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Directors’ remuneration report cont.
Awards were granted as nil cost options under the terms of the Coats Group plc Long Term Incentive Plan 
that was approved by shareholders on 22 May 2014. Awards were also granted to over 80 senior managers 
on similar terms. The LTIP awards will vest, subject to the achievement of performance measures, on the third 
anniversary of the date of grant. For Executive Directors an additional two-year holding period applies. The 
notional value of any dividends paid on any vested share during the period from grant to the end of the 
holding period is awarded as additional shares upon exercise.
Executive Director
Date of grant
Number of options 
awarded
Face value at award 
date
Award value as a 
% of salary
Share price to 
calculate no of 
shares
% vesting for 
minimum 
performance
Performance period
Vesting date
Jackie Callaway
22–Mar–24
821,478
£647,325
150%
£0.788
25%
1 Jan 2024
to 
31 Dec 2026
22–Mar–27
Rajiv Sharma
22–Mar–24
1,543,464
£1,216,250
175%
Rajiv Sharma’s award was pro-rated for time, resulting in 257,244 shares outstanding.
Long Term Incentive Plan awards performance measures
The performance measures applicable to awards granted in respect of the three-year performance period 
that commenced on 1 January 2024 (LTIP 2024) are shown below.
Measure
Weighting
Threshold 
(25% vesting)
Maximum 
(100% vesting)
EPS CAGR
30.0%
5%
13%
Total Shareholder Return versus the FTSE 250  
excluding investment trusts
25.0%
Median
Upper 
quartile
Average Cash Conversion
20.0%
70%
90%
Sustainability (see details below)
25.0% See below
See below
The EPS CAGR measure is based on normalised EPS, adjusted to exclude the impact of exceptional costs 
such as property gains or losses and the impact of variation of the IAS 19 (pensions finance) charge. Total 
Shareholder Return is the total return to shareholders which includes share price growth and ordinary 
dividends (reinvested on the ex-dividend date). The performance measure is assessed against a comparator 
group consisting of the FTSE 250, excluding investment trusts.
Average Cash Conversion is defined as the average of the adjusted Free Cash Flow divided by normalised 
Attributable Profit for each of the three years in the performance period. The adjusted Free Cash Flow is 
before deficit repair contributions to the UK pension scheme and after maintaining the Company’s asset base 
i.e. operating cash flow minus capital expenditures, adjusted for exceptional items such as property gains  
or losses.
The Sustainability targets are as follows:
Sustainability
Threshold (25% vesting)
Maximum (100% vesting)
Energy: reduction in Scope 1 & 2 emissions
20%
24%
Recyclable materials: growth in sustainable 
(non-virgin oil) based materials
Growth to 55%
Growth to 65%
Waste: reduction in waste to landfill
93% reduction
100% reduction and zero 
total waste to landfill
Diversity & inclusion: percentage representation of women
in the leadership (senior manager and above) population
28%
32%
Wellbeing: percentage of employees in Coats units that 
have a GPTW or equivalent certification
87%
89%
Targets for energy, waste reduction, and growth in recyclable materials are measured against a 2022 baseline. 
The Committee will test the extent of achievement against each equally weighted target shown above. 
The Committee retains the discretion to consider whatever adjustments it considers are fair and reasonable 
when considering performance against the targets shown. The Committee may adjust the level of vesting if it 
considers that the performance measures do not reflect the overall performance of the Company during the 
performance period or if there has been a material event such as an acquisition or disposal during the course 
of the performance period.
93
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OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Directors’ remuneration report cont.
David Paja buy-out award
The share price shown below, reflects the mid-market closing price for the day immediately preceding the 
grant date. When granting the award, the five day average immediately preceding commencement of 
employment was used.
The award was granted as a nil cost option and was intended to partially replace the award in David Paja’s 
previous employer (GKN Aerospace) that was forfeited on cessation of employment.
The structure of the award, being an award of shares vesting over 3 years from the commencement of 
employment subject to continued employment, mirrors the structure of the award forfeit on joining Coats. 
There were no performance conditions on the award forfeit and the amount was determined with reference 
to the total amount forfeited. As a result, while the buy-out did not fully replace the award forfeit, it was 
considered proportionate to what was lost in connection with joining Coats. 
Executive Director
Date of grant
Number of options
awarded
Face value at award 
date
Award value as a
% of salary
Share price 
immediately 
preceding grant
% vesting for 
minimum 
performance
Performance
Period
Vesting date
David Paja
6-Sept-24
1,009,693
£1,007,674
140%
£0.998
n/a
n/a
1-Sept-27
Non-Executive Directors
Fees were increased by 3% with effect from 1 July. Therefore, the base fee increased to £68,135; the 
supplementary Chair and Senior Independent Director fees increased to £13,519 and the fee as Designated 
Non-Executive for Workforce Engagement increased to £8,111. 
The fee for the Chair payable to David Gosnell following the extension of his term was increased by 3% to 
£257,500 aligning to market rates. David Gosnell had not received a fee increase previously, following his 
appointment on 19 May 2021.
Single total figure for Non-Executive Directors’ remuneration for 2024 (audited information)
Non-Executive Directors, excluding the Chair, who are required to travel long haul (more than five hours one-
way) to meetings are entitled to an additional travel allowance of £1,500 for each round trip subject to a 
maximum of five trips per annum. Additional fees may be paid for additional duties and time commitments 
that are undertaken outside the terms of appointment.
Base fee 
£000
Supplementary fee 
£000
Benefits1 
£000
Other fee2 
£000
Total 
£000
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
David Gosnell
253.8
250.0
–
–
4.6
–
–
–
258.3
250.0
Nicholas Bull3
27.6
64.6
10.9
24.4
0.2
–
1.5
1.5
40.2
90.5
Sarah Highfield4
67.1
11.0
8.3
–
0.5
–
3.0
–
78.9
11.0
Echo Lu
67.1
64.6
13.3
12.8
–
–
1.5
1.5
82.0
78.9
Stephen Murray
67.1
64.6
8.3
–
–
–
3.0
1.5
78.4
66.1
Fran Philip
67.1
64.6
8.0
7.7
2.2
1.8
7.5
7.5
84.8
81.6
Jakob Sigurdsson
67.1
64.6
–
–
–
–
3.0
1.5
70.1
66.1
Srinivas Phatak5
22.7
–
–
–
–
–
–
–
22.7
–
Total
639.7
584
48.8
44.9
7.4
1.8
19.5
13.5
715.4
644.1
1.	 The figure under benefits for Non-Executive Directors relates to support with tax returns and any taxable expenses, reported to the relevant tax authorities 
during the year.
2.	 Fees under Other fee represent the £1,500 per trip travel fee payable for Directors (excluding the Chair) who travel long haul to attend Board meetings. 
3.	 Steve Murray was appointed Senior Independent NED in May 2024.
4.	 Sarah Highfield was appointed Chair of the Audit and Risk Committee in May 2024 and appointed to the Board in November 2023.
5.	 Srinivas Phatak was appointed to the Board effective 1 September 2024.
94
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OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Directors’ remuneration report cont.
Payments for loss of office (audited information) & Payments to former Directors (audited information)
As announced on 30 May 2024, as part of Coats Group plc’s leadership succession plan, the Board reached 
agreement with Rajiv Sharma that he would step down from the role of Group Chief Executive and Executive 
Director on 30 September 2024. The treatment of his remuneration was agreed as follows:
•	 Salary and benefits – Rajiv received his normal remuneration in accordance with his service agreement up 
to and including 30 September 2024, when he ceased to be employed by the Group. Rajiv received a 
payment in lieu of accrued but untaken holiday as of 30 September 2024. No further payments relating to 
salary or benefits were made in connection with Rajiv’s 12-month contractual notice period.
•	 Annual bonus – As a result of cessation of employment being by way of mutual agreement in connection 
with the Board’s leadership succession plans, Rajiv remained eligible to participate in the Coats Group 
Annual Bonus Plan for the financial year ending 31 December 2024. As disclosed above, his entitlement to 
a bonus was pro-rated for his service from 1 January 2024 to 30 September 2024 and remained subject to 
achievement of performance measures. The bonus payment will be paid in cash at the normal payment 
date and will remain subject to malus and clawback as well as the wider terms of the plan. 
•	 Deferred Annual Bonus Plan Awards – Rajiv’s unvested DABP awards will vest in full on the awards’ 
normal vesting dates, subject to the rules of the DABP. Any dividend equivalents accrued in respect of 
these awards will be paid in the form of additional shares and capable of exercise thereafter. Any shares 
acquired in connection with these awards will remain subject to the rules of the DABP, including provisions 
relating to malus and clawback. Details of all outstanding awards are detailed on page 96.
•	 Long Term Incentive Plan Awards – As a result of cessation of employment being by way of mutual 
agreement in connection with the Board’s leadership succession plans, the Remuneration Committee 
determined that Rajiv is a good leaver in respect of his outstanding awards under the LTIP. Details of the 
outstanding awards are on page 96. Rajiv’s unvested LTIP awards will remain eligible to vest on their 
normal vesting dates, each subject to a pro-rata reduction to reflect the period from grant to 30 September 
2024 relative to three years, and the application of performance targets. In accordance with the rules of 
the LTIP, any vested shares will remain subject to the terms of the Plan which include a two year holding 
period from vesting and malus and clawback provisions. Rajiv’s outstanding awards remain eligible to be 
exercised up until one month following the end of the relevant holding period. Any accrued dividend 
equivalents will be paid in the form of additional shares.
•	 Post cessation of employment share ownership requirement – Rajiv is contractually bound to hold 200% 
of his base salary for two years following cessation of employment.
•	 Contribution to legal costs – Rajiv was entitled to a contribution not exceeding £1,750 in respect of the 
legal costs incurred in relation to this cessation of employment.
No other payments were made in connection with loss of office or to former Directors in the year. 
Jackie Callaway Leaver Terms
As announced on 7 January 2025, it was mutually agreed with Jackie Callaway that as part of the ongoing 
leadership transition she would step down from the role of Chief Financial Officer at the AGM on 21 May 
2025 and remain in employment until 30 June 2025. 
It is intended that she will remain eligible to receive a pro-rata bonus based on performance during 2025 
paid at the normal time in 2026. She will also remain eligible to receive her previously earned DABP awards 
at the relevant vesting dates. 
As a result of her cessation of employment being by way of mutual agreement in connection with the  
Board’s ongoing leadership succession plans, it is anticipated that she will retain the right to receive her  
in-flight LTIP awards, reduced pro-rata for her period of employment relative to the three years and subject  
to performance. 
Jackie Callaway will not receive any payment in lieu of any unexpired notice period following cessation  
of employment. 
Full details of the treatment of her remuneration in connection with her cessation of employment will be set 
out in next year’s Directors’ remuneration report. 
Directors service agreements and appointment letters
All Executive Directors have service agreements which are rolling with an indefinite term and provide for a 
notice period from either side of 12 months and all of this notice is unexpired. No appointment letters for 
Non-Executive Directors, including the Chair, contain a notice period. All service agreements and 
appointment letters for Directors are available for inspection at the Company’s registered office during 
normal hours of business and will also be available for inspection at the Company’s Annual General Meeting.
Non-Executive Director
Latest Letter of Appointment
David Gosnell
26-Feb-24
Sarah Highfield
16-Oct-23
Echo Lu
28-Feb-24
Stephen Murray
26-Feb-24
Fran Philip
28-Feb-24
Srinivas Phatak
09-Aug-24
Jakob Sigurdsson
26-Feb-24
95
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OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Directors’ remuneration report cont.
Statement of Directors’ shareholding and share interests (audited information)
The interests of the Directors who held office during the year, and their closely associated persons (if any), in 
the shares, options and listed securities of Coats Group plc and its subsidiaries. For David Paja and Jackie 
Callaway, the below represents interests as at 31 December 2024 and for Rajiv Sharma the below represents 
interests as at 30 September 2024.
Shareholding requirement in 
2024
Shares beneficially owned
Deferred bonus shares subject to 
vesting period
LTIP share options (subject to 
performance conditions)
Share options (no performance 
conditions)
Number of 
shares3
Equivalent 
% of salary
Condition 
met?
1-Jan-202411
31-Dec-20242
1-Jan-20241
31-Dec-20242
1-Jan-20241
31-Dec-20242
1-Jan-20241
31-Dec-20242
Executive Director
Jackie 
Callaway1,098,346 200%
Yes
 333,489  333,489 
 464,702 
 673,892  2,632,657  2,511,987 
 –
 907,006 
David 
Paja
1,665,895 200%
No
 –  300,000 
 – 
 – 
 – 
 – 
– 1,009,693 
Rajiv 
Sharma 1,431,534 200%
Yes 4,596,492 4,596,492  1,246,906  1,752,251  4,946,731  2,411,755  283,660 1,987,877 
Chair and Non-Executive Directors
David Gosnell
N/A  1,717,470  1,717,470 
 – 
 – 
 – 
 – 
 – 
 – 
Nicholas Bull
N/A
 550,000  550,000 
 – 
 – 
 – 
 – 
 – 
 – 
Sarah Highfield
N/A
 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 
Echo Lu
N/A
 22,874 
 22,874 
 – 
 – 
 – 
 – 
 – 
 – 
Stephen Murray
N/A
 65,000  100,000 
 – 
 – 
 – 
 – 
 – 
 – 
Srinivas Phatak
N/A
 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 
Fran Philip
N/A
 75,984 
 75,984 
 – 
 – 
 – 
 – 
 – 
 – 
Jakob Sigurdsson
N/A
 77,244 
 77,244 
 – 
 – 
 – 
 – 
 – 
 – 
1.	 Or date of appointment, if later.
2.	 Or date of cessation, if earlier.
3.	 The target number of shares is based on the average share price for 2024 which was 86.44p, Rajiv Sharma’s requirement represents the number fixed  
on cessation.
The Executive Directors’ shareholding requirement must be met within five years of their appointment to 
the Board. There is no requirement for Non-Executive Directors. For the purposes of achieving this target 
the total number of shares beneficially owned by the Executive Director or a closely associated person is 
considered as well as the estimated post- tax number of vested but unexercised share options or deferred 
bonuses that are not subject to a performance condition. All unexercised Long Term Incentive Plan awards 
granted to Executive Directors include a requirement to retain any vested shares (save for any shares that 
may be sold to satisfy income tax liabilities) until a minimum of the fifth anniversary of the date of grant.
Details of scheme interests as at 31 December 2024 (audited information)
David Paja
Award
Vesting date
Retention period
Expiry date
No.
Status
Performance 
conditions?
Share options (no performance conditions)
LTIP – Buyout Award
01-Sep-27
N/A
06-Sep-34  1,009,693 
Unvested
No
Rajiv Sharma2
Award
Vesting date
Retention period
Expiry date
No.1
Status
Performance 
conditions?
Deferred bonus shares subject to vesting period
DABP22
04-Mar-25
N/A
04-Mar-32
 706,218 
Unvested
No
DABP23
03-Mar-26
N/A
03-Mar-33
 540,688 
Unvested
No
DABP24
07-Mar-27
N/A
07-Mar-34
 505,345 
Unvested
No
Sub-total
 1,752,251 
LTIP share options (subject to performance conditions)
LTIP22
04-Mar-25
04-Mar-27
04-Mar-32  1,415,672 
Unvested
Yes
LTIP23
17-Mar-26
17-Mar-28
17-Mar-33
 738,839 
Unvested
Yes
LTIP24
22-Mar-27
22-Mar-29
22-Mar-34
 257,244 
Unvested
Yes
Sub-total
 2,411,755 
Share options (no performance conditions)1
LTIP20
06-Mar-23
06-Mar-25
06-Mar-30
 283,660 
Vested
No
LTIP21
07-Mar-24
07-Mar-26
05-Mar-31  1,704,217 
Vested
No
Sub-total
 1,987,877 
1.	 Excluding dividend equivalents acquired on vesting
2.	 Rajiv’s unvested awards were subject to a pro-rata reduction on cessation
96
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OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Directors’ remuneration report cont.
Jackie Callaway
Award
Vesting date
Retention period
Expiry date
No.1
Status
Performance 
conditions?
Deferred bonus shares subject to vesting period
DABP22
04-Mar-25
N/A
04-Mar-32
 258,709 
Unvested
No
DABP23
03-Mar-26
N/A
03-Mar-33
 205,993 
Unvested
No
DABP24
07-Mar-27
N/A
07-Mar-34
 209,190 
Unvested
No
Sub-total
 673,892 
LTIP share options (subject to performance conditions)
LTIP22
04-Mar-25
04-Mar-27
04-Mar-32
 904,157 
Unvested
Yes
LTIP23
17-Mar-26
17-Mar-28
17-Mar-33
 786,352 
Unvested
Yes
LTIP24
22-Mar-27
22-Mar-29
22-Mar-34
 821,478 
Unvested
Yes
Sub-total
 2,511,987 
Share options (no performance conditions)1
LTIP21
07-Mar-24
07-Mar-26
05-Mar-31
 907,006 
Vested
No
1.	 Excluding dividend equivalents acquired on vesting.
Share options (exercised during the year)
No share options were exercised by Directors during the year.
No options have been exercised by any Director between the year-end and the signing of this report. No 
other Directors have entered into any transactions since the year-end. The middle market price of Coats 
Group plc shares at 31 December 2024 was 94.4 pence and the range during the year was 67.4 pence to 
104.2 pence.
Review of performance
The graph below shows the difference between investing £100 in the Company and the constituents of the 
FTSE 250 from 1 January 2015 to 31 December 2024. It is assumed dividends are reinvested over that period. 
The Board feels the FTSE 250 provides an appropriate comparator given the Company’s market 
capitalisation and its presence on the London Stock Exchange. 
0
50
100
150
200
250
300
350
400
450
500
550
Dec 14
Dec 15
Dec 16
Dec 17
Dec 18
Dec 19
Dec 20
Dec 21
Dec 22
Dec 23
Dec 24
FTSE250 Index
Coats
Chief Executive total remuneration for the last 10 years1
Executive Director
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2024
Name
Paul 
Forman
Paul 
Forman
Rajiv 
Sharma
Rajiv 
Sharma
Rajiv 
Sharma
Rajiv 
Sharma
Rajiv 
Sharma
Rajiv 
Sharma
Rajiv 
Sharma
Rajiv 
Sharma
David 
Paja
CEO single figure 
remuneration (£k)
1,017.0 1,760.3 2,566.9 3,356.7 2,228.1
787.4 1,758.5 1,868.7
2,900.8
2,573.1
1,652.2
Annual bonus as a % 
of maximum 
opportunity
87.1%
77.0%
79.5%
66.7%
67.3%
5.0%
97%
84%
66.5%
100%
100%
LTIP award as a % of 
maximum opportunity
–
43.6%
60.0%
84.2%
95.8%
0%
0%
18.2%
96.27%
80.2%
N/A
1.	 The Company did not have an Executive Director who performed the role of CEO until 2 March 2015, when the Company completed its transition from Guinness 
Peat Group plc to Coats Group plc. The increase in CEO remuneration from 2015 to 2016 is therefore largely influenced by the 2015 single figure data being 
part year data. The CEO figures for 2017, 2018 and 2019 reflect the appointment of Rajiv Sharma and in particular the increase in benefits reflect the relocation 
and expatriate support that was offered to him following his appointment as CEO on 1 January 2017. The 2023 single figure of remuneration has been restated 
to reflect the value of the LTIP on vesting. The 2024 figure reflects the appointment of David Paja and departure of Rajiv Sharma.
97
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OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Directors’ remuneration report cont.
Director’s remuneration – annual percentage change
The table below shows the percentage change in the annual remuneration of Directors and the average UK colleague 
from 2019 onwards.
Salary or fees3 (% change)
Benefits2 (% change)
Bonus (% change)
2023 to 
2024
2022 to 
2023
2021 to 
2022
2020 to 
2021
2019 to 
2020
2023 to  
2024
2022 to 
2023
2021 to 
2022
2020 to 
2021
2019 to 
2020
2023 to 
2024
2022 to 
2023
2021 to 
2022
2020 to  
2021
2019 to 
2020
David Paja
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Rajiv Sharma
-22.3%
5%
4%
6.9% -3.6%
95.7%
12%
-12.7%
25.8%
-46.8% 16.4% -16.9%
-9%
1898.8% -91.1%
Jackie 
Callaway
7.6%
5%
4%
1.4%
N/A
28.9%
2.4%
35.7%
-0.6%
N/A 65.4%
-9.7%
-5.5%
100%
N/A
David 
Gosnell
1.5%
0%
37.7% 163.4%
-5%
0%
0%
0%
0%
0%
N/A
N/A
N/A
N/A
N/A
Nicholas Bull
3.8% 11.3%
13.7%
4.4%
-5%
0%
0%
0%
0%
0%
N/A
N/A
N/A
N/A
N/A
Sarah 
Highfield
21.4%
N/A
N/A
N/A
N/A
0%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Echo Lu
3.9%
6.6%
6%
22.5%
-5%
0%
0%
0%
0%
0%
N/A
N/A
N/A
N/A
N/A
Stephen 
Murray
18.7%
7.4%
0%
N/A
N/A
0%
0%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Srinivas 
Phatak
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Fran Philip
3.6%
6.4%
11.1%
2.9%
-5%
0%
0%
0%
0%
0%
N/A
N/A
N/A
N/A
N/A
Jakob 
Sigurdsson
6.2%
4.9%
2.4%
-6.8%
-5%
0%
0%
0%
0%
0%
N/A
N/A
N/A
N/A
N/A
Average of 
all 
employees1
4.6%
7.6%
5.5%
3.1%
0%
4%
10.8%
0%
0%
0% 140% -13.8%
N/A
N/A
N/A
1.	 The average of all employees reflects the total number of employees based in the UK excl. Texon. The UK has been chosen as the most appropriate comparator group because 
the Executive Directors are employed by the UK parent company and the majority of Coats employees who are employed outside the UK are working in locations with very 
different inflationary and market pressures. The UK employee population includes employees across all levels of the organisation and for prior year comparisons, excludes 
acquisitions made during the relevant year.
2.	 Non-Executive Directors do not receive benefits-in-kind however, figures are disclosed in the benefits Single Figure table to reflect business expense payments and tax support 
where applicable, that are regarded as taxable by the UK tax authority. Year-on-year variations in the reported benefits value have been ignored for this purpose unless there is 
the provision of a material specific benefit or if the difference in benefit is greater than £5,000 from one year to the next.
3.	 David Paja, Srinivas Phatak, Jackie Callaway, Sarah Highfield, and Stephen Murray do not have five years’ worth of disclosure as they joined the business during this time. 
4.	 To enable comparisons, non-executive leavers and joiners figures have been annualised. The figures for Stephen Murray, Sarah Highfield, David Gosnell, Echo Lu and Nicholas 
Bull in 2024, 2022 and 2021 reflect their increased fees following their appointments as SID, Audit Chair, Chairman, Remuneration Committee and Audit Chairs respectively.
Relative importance of spend on pay
The table below shows the total pay for all of the Company’s employees compared to other key 
financial indicators.
Year to  
31 December 2024
Year to  
31 December 2023
% change
Employee costs (US$m)
304.3
293.7
4%
Distributions to shareholders1 (US$m)
46.5
40.6
15%
Average number of employees
15,878
15,539
2%
Revenues from continuing operations (US$m) – CER basis
1500.9
1,376.5
9%
Operating profit pre-exceptional (US$m) – CER basis
269.6
229.3
18%
1.	 By way of dividends.
Additional information on number of employees, total revenues and profit has been provided for 
context. The figures for employee costs, average number of employees, revenues and 
operating profit in 2024 and 2023 have been stated on the basis of continuing operations only. 
The figures for revenues and operating profit are on a constant exchange rate (CER) basis with 
amounts for 2023 restated at 2024 exchange rates.
CEO pay ratio
Coats is not required to publish a CEO pay ratio as the Group employs less than 250 employees 
in the UK. However, the Company publishes a disclosure on a voluntary basis. This ratio shows 
the CEO’s pay relative to our UK employees.
Salary
Salary plus bonus
Total pay
Financial Year 
Calculation 
methodology
P25
P50 
P75
P25
P50 
P75
P25
P50 
P75
2019
A
21
12
8
37
20
11
58
36
19
2020
A
20
12
7
20
12
7
20
14
7
2021
A
16
12
8
37
27
13
41
27
12
2022
A1
15
10
6
34
21
10
42
23
11
2023
A1
14
9
5
28
17
8
50
30
14
2024
A1
11
8
5
27
18
10
37
24
14
1.	 During 2022, Coats acquired Texon which includes approximately 100 UK based employees. These employees have been excluded from 
the analysis, however, based on high-level analysis, Coats was comfortable that the inclusion of these employees would not have had a 
material impact on the overall historical CEO pay ratios, and that the ratios for are reflective of the overall Group.
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The ratios have remained relatively stable over the year, however the ratios presented in 2024 are influenced 
by a change in Group CEO during the year and a change in UK headcount. 
The lower quartile, median and upper quartile employees in the table below were identified on the basis  
of full-time equivalent total remuneration and benefits in the 12-month period ending 31 December 2024  
(this is referred to as methodology A according to the Regulations). This calculation methodology was 
selected as it was the closest comparative methodology to the basis on which the remuneration for the 
Group CEO is disclosed for the year ended 31 December 2024. The UK workforce is the most appropriate 
comparator group because the Group CEO is employed by the UK parent company and the pay of the global 
workforce is subject to very significant fluctuations due to local inflationary pressures and foreign exchange  
rate movements. 
The Committee has considered the pay data for the three individuals and concludes that the median ratio is 
a fair reflection of pay and reward policies for the UK workforce as a whole. In addition, the data was 
compared to the average of five individuals above and below their remuneration in terms of total 
compensation and mix of pay for the year to 31 December 2024 to ensure the percentile ranking for each 
individual was comparable to all individuals within that quartile grouping. No adjustments have been made to 
the data other than to ensure full-time equivalence. Where a performance bonus is paid, an assumption 
about the estimated attainment for some of the personal objectives have been made. The Committee is 
satisfied that any assumptions do not have a material impact on the selected reference employee nor on the 
calculated ratio. The remuneration details for the individuals are shown below.
CEO
Lower quartile
Median
Upper quartile
Base Pay
£706,175
£63,921
£87,502
£128,583
Base and Bonus
£1,873,161
£70,672
£103,033
£185,640
Total Remuneration
£2,958,130
£79,236
£121,272
£211,734
A significant proportion of the Group CEO’s remuneration is appropriately linked to the Company’s 
performance and share price movements, which may fluctuate materially over time. Therefore, to enable  
a more meaningful comparison to be made, we have also presented a ratio based on base pay plus  
annual bonus. 
Corporate Governance Code requirements
The Directors believe that the principles outlined in Provision 40 of the Corporate Governance Code 
continue to be met in the operation of the Remuneration Policy. Remuneration arrangements are clearly 
communicated and straightforward. Incentives are linked to the key performance metrics of sales, profit and 
cash generation. These measures are aligned throughout the Group’s incentive schemes and there is a 
balance between overall Group performance across all three metrics and each individual local business unit, 
where relevant. Personal performance is also an element, both in incentives and in salary reviews, but there 
is an overall link to the achievement of company performance to ensure that the risk of excessive rewards in 
cases of poor performance is managed. Teamwork is a key strength and cultural aspect for Coats, and 
incentives are managed to ensure that there is cooperation and flexibility in delivering performance and to 
ensure that incentive structures do not negatively impact the culture of the organisation.
Although the Company does not formally consult with employees in determining the Remuneration Policy 
there are several routes by which employee engagement is achieved. Fran Philip is the Designated Non-
Executive for Workforce Engagement and is also a member of the Remuneration Committee. During 2024 a 
programme of meetings was conducted by Fran with business unit leadership teams to discuss a variety of 
issues of interest to employees. All employees were encouraged to raise any areas of concern, including 
matters of remuneration, directly or through line managers. Further details of the Board’s engagement with 
the workforce is set out on pages 45 and 74. In addition, during 2024 the Committee considered in-depth for 
all employees the competitiveness of the remuneration offering, the level of any minimum Living Wage and 
whether any employees were below this level, the gender profile and pay differentials of the workforce 
across the main operating countries.
Statement of implementation of Remuneration Policy for 2025
Base salaries for Executive Directors and fees for the Non-Executive Directors will be reviewed on 1 July 2025.
David Paja’s current base salary is £720,000, he receives a car allowance of £20,000 and a pension 
contribution (aligned to the UK workforce) of 12%.
Jackie Callaway’s current base salary is £474,705, she receives a car allowance of £15,000 and a pension 
benefit (aligned to the UK workforce) of 12%.
As set out in our announcement dated 7 January 2025, on appointment as Group CFO Hannah Nichols will 
receive a base salary of £465,000. She will also receive a car allowance of £15,000 and a pension benefit 
(aligned to the UK workforce) of 12%.
All Executive Directors also receive private medical insurance, life and income replacement insurance.
In line with the Policy, it is expected that the LTIP award for the Group CEO will be 175% and the maximum 
annual bonus opportunity will remain 150%.
The role of Group CFO has a maximum bonus opportunity of 125% of salary. Any bonus for Jackie Callaway 
and Hannah Nichols will be pro-rated to reflect the period served as a Director during the year. 
A minimum shareholding requirement of 200% applies during employment and a post-employment 
shareholding requirement applies to all Executive Directors for two years following termination of 
employment based on the lower of 100% of the minimum shareholding requirement or the actual 
shareholding at termination.
Directors’ remuneration report cont.
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As detailed in the Chair’s Introductory Letter, the annual bonus and LITP performance measures were are 
unchanged relative to 2024, with a slight adjustment to annual bonus weightings, and are as follows:
Annual bonus
Long Term Incentive
Measure
Weighting
Measure
Weighting
Sales
15%
Earnings Per Share
30%
Earnings Before Interest and 
Taxation Margin
20%
Three-year Average 
Cash Conversion
20%
Earnings Before Interest 
and Taxation
20%
Total Shareholder Return 
compared to the FTSE 250
25%
Free Cash Flow
25%
Sustainability
25%
Individual objectives
20%
Annual bonus targets are based on EBIT, EBIT Margin, Adjusted Free Cash Flow and individual objectives, 
excluding the impact of any exchange rate fluctuations. The Company does not publish annual bonus targets 
in advance as these figures are considered commercially sensitive but will do so at the time the bonus award 
is disclosed.
The Long Term Incentive Plan awards granted in 2025 will be subject to targets that will vest at a level  
no more than 25% (for each measure) for threshold performance and at 100% (for each measure) for 
performance at maximum. There will be straight-line between threshold, maximum and any  
intervening points.
The specific targets for both the annual bonus and Long Term Incentive Plan are set to be challenging by  
the Committee having regard to internal planning expectations, external expectations for the Company’s 
performance and economic conditions.
As detailed in the Chair’s Introductory Letter, it is the Committee’s intention to publish the targets in the 
announcement notifying the market of the grant of the award.
With regard to Hannah Nichols, as part of her recruitment, it was agreed that a buyout award would be 
granted to compensate for the value forfeit in joining the Company. Details of the buyout award will be set 
out in next year’s Directors’ Remuneration Report following the grant of the award. The award will be made 
over an equivalent value of Coats shares to the value of Hill & Smith shares forfeit on joining. The award will 
match the time period to vesting and the performance targets applicable to the Hill & Smith awards that 
Hannah is forfeiting so that the replacement award is no more or less valuable that the award forfeit  
on joining. 
Consideration by the Directors of matters relating to Directors’ remuneration
In reviewing remuneration arrangements, the Committee considers the terms and conditions of employees 
across the Group. In this regard, Fran Philip, as a member of the Committee, is able to provide insight and 
support from her role as the Designated Non-Executive for Workforce Engagement.
The responsibilities of the Committee are set out in the Corporate Governance section of the Annual Report. 
The Committee also received assistance from Stuart Morgan (who also acted as Secretary to the Committee), 
Farnaz Ranjbar (Chief HR Officer) and the Reward function. No Directors are involved in deciding their  
own remuneration.
The Remuneration Committee receives independent external advice on executive remuneration from Korn 
Ferry, a member of the Remuneration Consultants Group and signatory to its Code of Conduct, who were 
appointed as remuneration advisors in 2022. Korn Ferry, who do not have any connection with any Directors 
of the Company, provide advice to the Remuneration Committee which supports robust and sound decision 
making. The Remuneration Committee is satisfied that its remuneration advisors act independently. Korn 
Ferry fees for advising the Remuneration Committee during 2024 were £93,153 (excl VAT).
Statement of voting at the General Meeting
The table below sets out the result of the votes for the latest Directors’ Remuneration Report and 
Remuneration Policy, at the 2024 AGM and 2023 AGM respectively. 
Votes for
Votes against
Votes total
Votes withheld
Number
%
Number
%
Number
Number
Approval of 
Remuneration 
Report  
(resolution 2)
1,393,057,196
99.49
7,147,109
0.51
1,400,204,305
110,713
Approval of 
Remuneration 
Policy (resolution 3)
1,412,457,273
99.74
3,641,947
0.26
1,416,099,220
70,423
Committee performance and effectiveness
The Committee effectiveness in respect of the year ended 31 December 2024 was evaluated internally again 
this year following an externally facilitated review process undertaken previously, as set out in the 2022 
Annual Report. The Committee considered the key points that were identified in previous year’s assessment. 
The 2024 evaluation indicated that the Committee’s ways of working and dynamics were working effectively 
and noted areas they can further enhance their performance in 2025.
Signed on behalf of the Remuneration Committee by:
Echo Lu
Chair, Remuneration Committee
5 March 2025
Directors’ remuneration report cont.
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Remuneration policy report 
A summary of the Directors’ Remuneration Policy approved by shareholders at the 2023 AGM has been 
reproduced here. The full Policy approved by shareholders can be found in the Coats plc Annual Report 
2022. The summary set out below applies to all Directors who are appointed to the Board during the life of 
this policy.
Executive Directors’ Remuneration Policy table
FIXED REMUNERATION
Purpose and link to strategy
Operation and opportunity 
Salary
To attract and retain 
the key talent that 
the Company needs 
to achieve its 
objectives.
Salaries for new Executive Directors will be set by the Board taking into account such factors as it 
determines to be necessary, as discussed above.
There is no set maximum salary.
Pension
To provide a market 
competitive level of 
retirement provision.
Executive Directors are entitled to participate in a defined contribution scheme, on a non-
contributory basis, with an employer contribution of up to the typical UK workforce (or other 
relevant local workforce where appropriate) rate which is currently 12% of salary, or will be 
provided with a cash alternative in lieu of any pension benefits of up to an equivalent value.
Benefits
To provide a market 
competitive level of 
benefits.
Benefit provision to Executive Directors will be determined by the Committee taking into account 
such factors as it determines to be necessary, with the aim of creating a competitive overall 
package. There are no set maximum levels.
Benefits may include the provision of private medical insurance, ill-health protection and/or life 
insurance and a cash-for-car allowance. In addition, the Company may provide assistance in 
connection with the relocation of an Executive Director and, in the event of an international 
transfer, may provide tax equalisation arrangements.
Executive Directors may also participate in any all-employee incentive plan operated by the 
Company from time to time, up to the same limit for participation as applies for other employees.
VARIABLE REMUNERATION
Purpose and link to strategy
Operation and opportunity 
Performance
Annual bonus, Cash bonus and deferral into shares under the rules of the Deferred Bonus Plan 
Annual bonus 
incentivises key 
individuals to 
achieve the 
objectives of the 
annual business 
plan.
The deferred 
element ensures 
that the final value of 
the annual incentive 
is linked to the 
longer-term value 
of the Group.
Annual bonuses will be determined by 
reference to performance, measured over 
one financial year.
The maximum annual bonus that may be 
awarded to any executive director will be 150% 
of salary.
Any bonuses awarded will be subject to a 
mandatory deferral which is normally 50% of 
any bonus earned where the maximum bonus 
opportunity is 150% of salary and 40% of any 
bonus earned where the maximum bonus 
opportunity is below 150% of salary.
Deferred bonuses will be transferred into 
shares, to be held for a three-year retention 
period, under the terms of the Deferred  
Bonus Plan.
The annual bonus including cash paid or 
deferred element of the bonus may be subject 
to malus or clawback. Details of malus and 
clawback terms are set out below.
The performance measures, weightings and 
targets for the annual bonus will be set by the 
Committee on an annual basis.
Performance measures will normally include 
tests of both business and individual 
performance.
The Committee will have the discretion to 
reduce vesting levels if it determines the result 
of the performance targets does not accurately 
reflect the financial health of the Company.
Malus & clawback
The Committee may, at any time within three years of a cash bonus payment, LTIP or deferred bonus award 
vesting, determine that malus and/or clawback shall apply if the Committee determines that:
–	there was a material misstatement of the financial statements of the Company upon which the 
performance targets were assessed, or an erroneous calculation was made in assessing the extent 
to which performance targets were met;
–	the award holder has contributed to serious reputational damage to the Company or one of its 
business units;
–	the award holder’s conduct has amounted to serious misconduct, gross negligence, fraud, dishonesty, 
a breach of the Code of Business Conduct or material wrongdoing; or
–	where corporate failure or failure in risk management has occurred.
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Purpose and link to strategy
Operation and opportunity 
Performance
Long Term Incentive Plan
To incentivise key 
individuals to 
achieve key long-
term objectives, in 
line with the Group’s 
long-term strategy.
To create alignment 
between executives 
and shareholders.
To retain key 
individuals.
Awards will be made annually, conditional on 
the achievement of three-year performance 
conditions. Any vested shares will be subject 
to an additional two-year holding period.
Award levels for any Director will be up to a 
maximum of 175% of salary. Awards may be 
made to other senior executives within the 
Group. Larger awards may be made in 
exceptional circumstances, but in no case 
to exceed 200% of salary.
Awards will be subject to malus and clawback 
provisions. The malus provisions give the 
Committee discretion to reduce the level of an 
award prior to vesting in the event of personal 
misconduct or if events have happened that 
caused the Committee to determine the grant 
level was not appropriate.
Details of malus and clawback terms are set out 
on the previous page.
The performance measures used, the weighting 
on each measure, the definition of the measures 
and the performance targets, will be determined 
by the Committee considering the balance of 
strategic priorities for the Company for the 
upcoming three-year performance period.
The Committee will be able to reduce vesting 
levels if it determines the result of the 
performance targets does not accurately reflect 
the financial health of the Company.
Following grant of an award, the Committee will 
have power to amend performance measures 
and targets if events happen that mean they 
are no longer a fair test of performance, but not 
so as to make the assessment of performance 
materially less onerous.
Shareholding requirements
Executive Directors will be required to attain a shareholding, over a five-year period, equivalent to 200% of 
salary. This requirement will apply for a two year period post termination of employment based on the lower 
of the in-post requirement and the Executive Director’s actual shareholding on termination of employment.
Legacy matters in respect of future Executive Directors
In the event that an executive of the Group is promoted to the Board, the Company retains discretion to 
honour any existing remuneration commitments. In particular, any long term awards, both cash and share 
awards, will continue to be capable of vesting on their existing terms. This would include awards previously 
granted under legacy Group incentive plans. This would also include any awards granted under the Long 
Term Incentive Plan or Deferred Bonus Plan prior to the individual being appointed as a Director (although it 
would be intended that any such awards would in any event comply with the Policy as set out above).
Recruitment Policy
When appointing an Executive Director, including a promotion to the Board of an executive from within the 
Group, the Committee will offer the recruit a remuneration package that it believes is appropriate, taking into 
account the skills and experience of the individual and the need to attract, retain and motivate individuals of 
the appropriate calibre. In determining the remuneration package that may be offered to a new Executive 
Director, the Committee may also take into account external and internal comparisons and relevant market 
factors, as well as any other factors which the Board determines to be relevant.
External appointment
In the cases of hiring or appointing a new Executive Director from outside the Company, the Committee may 
make use of all the existing components of remuneration, as follows:
Component
Approach
Maximum annual grant value
Base salary
Salaries for new appointees will be determined by reference to the relative 
skills and experience of the individual, the market competitive level of pay in 
other companies and any other relevant external or internal comparisons.
Benefits
New appointees will be eligible to receive benefits which may include (but are 
not limited to) the provision of private medical insurance, ill-health protection 
and/or life insurance and a cash- for-car-allowance, and, where appropriate, 
relocation, international transfer or tax equalisation arrangements.
Pension
New appointees will receive pension contributions or cash alternative in lieu 
of any pension benefit.
Currently 12% of salary if 
UK based
Annual bonus
The structure described in the policy table will apply to new appointees with 
the relevant maximum being pro-rated to reflect the proportion of 
employment over the year. Targets for the personal element will be tailored to 
each Executive Director. The Committee retains discretion to set different 
targets for a new Executive Director in the year of appointment to the other 
Executive Director(s) targets depending on the timing of their appointment.
150% of salary
LTIP
New appointees will be granted awards under the LTIP on the same terms as 
other Executive Director’s, as described in the policy table.
200% of salary in 
exceptional circumstances
For external appointment, the Committee may determine that there may be exceptional circumstances  
where it would be appropriate, in order to secure the right candidate, to compensate for lost awards incurred 
by an individual as a result of leaving their former employer. In the case of any long term incentive awards, 
save where such awards are close to vesting, any such award on appointment would normally be granted as 
a share based award, subject to such vesting and/or performance conditions as the Committee determines 
VARIABLE REMUNERATION cont.
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to be appropriate, either under a one-off arrangement or under the terms of the Long Term Incentive Plan. 
In determining the terms of any such awards, the Committee would take account of the vesting schedule  
and conditions attached to the forfeited awards, but also other factors that it determines to be relevant, 
including the need to suitably incentivise and retain the individual during the initial years of their 
applicable appointment.
Internal promotion
In cases of appointing a new Executive Director by way of internal promotion, the Committee and Board will 
be consistent with the policy for external appointees detailed above.
Service contracts for Executive Directors
The Committee’s policy is for service contracts for Executive Directors to reflect the Committee’s 
understanding of best corporate practice for listed companies. However, in the event that an executive of the 
Group is promoted to the Board, the Committee may include terms in any new service contract which are 
consistent with that individual’s existing service contract and legacy arrangements.
Subject to this, the key elements of a service contract offered to a UK based Executive Director  
appointment are:
Incentive plans
Good leavers
Notice period
Contracts are rolling with an indefinite term. The notice period is no more than 12 months (in the case of 
notice being given by the Company or the Executive Director). 
An Executive Director may be placed on garden leave during some or all of the notice period.
Payment in lieu 
of notice 
(PILON)
Save in circumstances justifying summary termination, employment may be terminated without notice by 
paying a PILON comprising basic salary and contractual benefits. Subject to any legacy terms, the 
Company will have discretion to pay on a phased basis, which will normally be subject to mitigation.
Pension
The service contract may include entitlement to pension benefits, subject to the provisions and any limits 
set out in this Policy and the pension scheme rules or an annual allowance. The entitlement to pension 
benefits may continue during any notice period.
Benefits
The service contract may include entitlement to other benefits, subject to the provisions and limits set 
out in this Policy. The entitlement to benefits may continue during any notice period.
Incentive plans The Executive Director will be eligible to be considered (at the Committee’s discretion) to participate in 
the annual bonus and long term incentive arrangements operated from time to time, subject to the 
provisions and limits set out in this Policy. The terms of such arrangements would apply in the event of a 
cessation of office or employment, as set out in the table below.
Service contracts offered to non-UK based, external appointments will generally be in line with the 
provisions set out above, subject to any local law requirements. All Executive Director letters of appointment 
are available for inspection at the Company’s registered office during normal hours of business, and will also 
be available at the Company’s AGM.
Executive Directors will be able to accept non-executive appointments outside the Company (as long as this 
does not lead to a conflict of interest) with the consent of the Board, as such appointments can enhance their 
experience and add value to the Company. Any fees received (excluding positions where the Executive 
Director is appointed as the Company’s representative) may be retained by the Executive Director.
Policy on payment for loss of office of Executive Directors
In the case of an executive of the Group who is promoted to the Board, the terms on cessation of office or 
employment would be governed by the terms of the individual’s existing employment agreement. In addition, 
the terms of any incentive awards made to the individual prior to being appointed as an Executive Director, 
and the terms of any pre-existing participation in a pension scheme, would govern the treatment of  
such arrangements.
The policy that applies to the appointment of any Executive Director is shown below. The remuneration 
package may include the components of remuneration described below in the Executive Directors’ 
Remuneration Policy table subject to the relevant limits as set out in the following tables.
Notice periods, salary and contractual rights
The notice periods and contractual rights on termination that would be included in a service contract offered 
to an external recruit are set out above. In addition, the Executive Director would be entitled to accrued but 
untaken holiday.
In respect of any awards made to an Executive Director under any all-employee share plan, the same leaver 
conditions will apply as apply in respect of employees generally.
Discretions
In considering the exercise of its discretions under the incentive arrangements, as referred to above, or 
otherwise in connection with the cessation of office or employment of an Executive Director, the Committee 
will take into account all relevant circumstances, having regard to their duties as Directors.
In doing so, factors that the Committee may take into account shall include, but not be limited to, considering 
the best interests of the Company, whether the Executive Director has presided over an orderly handover, 
the contribution of the Executive Director to the success of the Company during their tenure, the need to 
ensure continuity, the need to compromise any claims that the Executive Director may have, whether the 
Executive Director received a PILON and whether, had the Executive Director served out their notice, 
a greater proportion of the outstanding award may have vested.
Other
The Company may enter into new contractual and financial arrangements with a departing Executive 
Director in connection with the cessation of office or employment, including (but not limited to) in respect of 
settlement of claims, confidentiality, restrictive covenants and/or consultancy arrangements, where the 
Committee determines it necessary or appropriate to do so. Appropriate disclosure of any such arrangement 
would be made.
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Corporate actions
On a corporate action affecting the Company, the rules of the Long Term Incentive Plan and Deferred Bonus 
Plan will apply. In summary, on a change of control awards will vest, subject to the performance conditions 
and, unless the Committee determines otherwise, time pro-rating.
Deferred shares awarded under the terms of the Deferred Bonus Plan, which represent deferrals of 
previously earned bonus, will vest in full. Under the Long Term Incentive Plan and Deferred Bonus Plan,  
the Committee may determine that a demerger or similar event shall constitute a corporate action.
On a variation of share capital or similar event, the Committee may make such adjustment to awards under 
the Long Term Incentive Plan and the Deferred Bonus Plan as the Committee considers appropriate.
Incentive plans
Good leavers
Other leavers
Annual bonus
The Company does not consider it appropriate to set defined 
‘good leaver’ and ‘bad leaver’ conditions in respect of the 
annual bonus arrangements. Instead, where an Executive 
Director has ceased to hold office or employment with the 
Group, or is under notice, other than due to personal 
misconduct, the Committee will determine whether or not the 
individual will be eligible to receive any annual bonus.
If the Committee determines that a departing Executive Director 
is eligible to receive a bonus, the amount of the bonus will be 
assessed by reference to the performance targets set for that 
financial year.
The deferral requirement in respect of any bonus awarded will 
continue to apply if the Committee so determines.
The amount of any bonus will be pro-rated for time, provided 
that the Committee has discretion to waive time pro-rating.
Where the reason for cessation of 
office or employment is personal 
misconduct no bonus will be payable. 
In other cases, unless the Committee 
determines that the departing 
Executive Director is eligible to 
receive a bonus, no bonus will  
be payable.
Long Term 
Incentive  
Plan
A departing Executive Director will be a ‘good leaver’ on 
ceasing employment due to retirement, injury, disability, ill-
health, death, redundancy or the sale of a business or 
subsidiary out of the Group.
Awards held by ‘good leavers’ will normally vest on the normal 
vesting date (i.e. the third anniversary of grant) to the extent that 
the performance conditions are met, and be pro-rated for time.
Any awards that the Committee determines to have vested will 
ordinarily be subject to the additional two-year holding period, 
unless the Committee determines in its discretion to accelerate 
vesting to the date of cessation. The Committee will also have 
discretion to waive the time pro-rating requirement.
Unvested awards will lapse in full 
where the cessation of office or 
employment is on grounds of  
personal misconduct.
In other cases, the Committee will 
have discretion to determine that 
unvested awards will vest (in which 
case the terms applicable to ‘good 
leavers’ will apply). Unless this 
discretion is exercised, no bonus  
will be payable.
Incentive plans
Good leavers
Other leavers
Deferred  
Bonus Plan
Unvested deferred shares (which represent deferrals of earned 
bonus) will vest in full on the normal vesting date (i.e. the third 
anniversary of grant), provided that the Committee will have 
discretion to accelerate vesting to the date of cessation.
Where the reason for cessation of 
office or employment is personal 
misconduct unvested awards lapse  
in full.
Non-Executive Directors
The Chair and Non-Executive Directors receive an annual fee (paid in monthly instalments). Non-Executive 
Directors (excluding the Chair) may also receive an additional fee in respect of travel if over five hours of 
one‑way flight time is required to attend a Board meeting, up to an annual cap. The fee for the Chair is set by 
the Remuneration Committee and the fees for the Non-Executive Directors are approved by the Board, on 
the recommendation of the Chair. In determining the appropriate level of fees the Committee and the Chair 
consider advice from external sources and data on the fee levels in other similar companies. No individual is 
present when his or her own level of remuneration is discussed. 
Remuneration policy report cont.
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For Non-Executive Directors, the remuneration arrangements will be in line with those set out in the relevant 
section below.
Non-Executive Directors’ Remuneration Policy table
Element
Purpose and link to strategy
Operation
Fees
To attract and retain a high-calibre Chair and 
Non-Executive Directors by offering market 
competitive fee levels.
The Chair is paid an all-inclusive fee for all Board 
responsibilities. The other Non-Executive 
Directors receive a basic Board fee, with 
supplementary fees payable for additional Board 
responsibilities and travel (if appropriate). The fee 
levels are reviewed on a periodic basis and may 
be increased taking into account factors such as 
the time commitment of the role and market levels 
in companies of comparable size and complexity.
Additional payments may be made above the basic 
Board fee if duties significantly exceed expectations.
Supplementary 
fees
Supplementary fees may be payable to the Senior 
Independent Director, Chair of the Audit and Risk 
Committee, and Chair of the Remuneration 
Committee and the Director responsible for 
employee engagement.
Travel fees
The Board benefits from the diverse global 
business experience of its Non-Executive 
Directors, some of whom do not reside in the 
UK. However, the increasingly global nature of 
our business means that our Non-Executive 
Directors are required to travel. The Board 
wishes to recognise the additional time 
commitment required for Non-Executive 
Directors (excluding Chair) in travelling to Board 
meetings.
An additional fee may be payable to any Non-
Executive Director (excluding the Chair) who is 
required to travel for more than a specified length 
of time to attend a Board meeting.
The maximum total fees for travel will be subject 
to an annual cap.
For 2024, a travel fee will be payable for any 
journey longer than five hours of one-way flight 
time and the maximum fee will be capped at the 
equivalent of five trips. The length of journey and 
maximum cap will be reviewed annually to ensure 
their continued relevance and appropriateness.
No benefits or other remuneration will be provided to Non-Executive Directors. However, in some cases reimbursement of business travel, entertaining and 
accommodation expenses claimed in accordance with the UK expenses policy may be deemed taxable benefits under UK tax rules. The Company pays the 
resulting tax liability. In addition, professional fees may be paid to assist a non-UK tax resident Director submit appropriate UK income tax returns; the cost of these 
fees may be regarded as a taxable benefit.
In determining the level of fees for a new Non-Executive Director, the Committee will take into account all 
factors it determines to be relevant, including the skills and experience of the individual and the need to 
attract Non-Executive Directors of the appropriate calibre. The Committee will also take into account the 
level of fees offered by equivalent companies.
Under their respective Non-Executive Director appointment letters, all of the Non-Executive Directors are 
entitled to receive an annual fee. None of the appointment letters contains a set term of office. None of the 
appointment letters contains a notice period. There are no provisions in the Non-Executive Directors’ letters 
of appointment that would give rise to any compensation payments for loss of office.
Removal of the Non-Executive Directors would be governed by the Articles of Association of the Company. 
All Non-Executive Director letters of appointment are available for inspection at the Company’s registered 
office during normal hours of business, and will also be available at the Company’s AGM.
Remuneration policy report cont.
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Coats Group plc Annual Report and Accounts 2024
Directors’ report
Coats Group plc (Company) is the holding 
company of the Coats group of companies 
(Group).
Annual General Meeting
The Annual General Meeting (AGM) of the Company 
will be held on 21 May 2025 at 2.30pm at FTI 
Consulting, 200 Aldersgate, London EC1A 4HD.
Corporate Governance Statement
Together with this Directors’ Report, the Corporate 
Governance Statement, prepared in accordance 
with rule 7.2 of the Financial Conduct Authority’s 
Disclosure Guidance and Transparency Rules, 
comprises the following sections of the Annual 
Report: the ‘Strategic Report’; the ‘Corporate 
Governance Report’; the ‘Audit and Risk Committee 
Report’; the ‘Nomination Committee Report’; and the 
‘Remuneration Committee Report’. As permitted by 
legislation, some of the matters required to be 
included in the Directors’ Report have been 
included in the Strategic Report by cross-reference, 
including details of the Group’s financial risk 
management objectives and policies, business 
review, future prospects, stakeholder engagement, 
Section 172 Statement and environmental policy. 
The 2018 UK Corporate Governance Code is 
available from the Financial Reporting Council’s 
website (www.frc.org.uk).
Directors
The names and biographical details of the current 
Directors are shown on pages 68 to 70 of this 
Annual Report. Particulars of their emoluments and 
beneficial and non-beneficial interests in shares are 
given in the Directors’ Remuneration Report on 
pages 90, 94 and 96 to 97.
The appointment and removal of Directors are 
governed by the Company’s Articles of Association 
and the Companies Act 2006. The Directors may, 
from time to time, appoint one or more Directors.  
In accordance with the provisions of the Code, all 
Directors will retire and submit themselves for 
election or re-election at the forthcoming AGM.
Directors’ powers
The Board manages the business of the Company 
under the powers set out in the Company’s Articles 
of Association. These powers include the Directors’ 
ability to issue or buy back shares. Shareholders’ 
authority to empower the Directors to make market 
purchases of up to 10% of its own ordinary shares is 
sought at the AGM each year (as set out in the Share 
Capital section below).
The Company’s Articles of Association can only be 
amended, or new Articles adopted, by a resolution 
passed by shareholders in a general meeting by at 
least three quarters of the votes cast. The Company 
adopted new Articles at the AGM held in May 2021.
In the event that a Director raises any concerns 
about the operation of the Board or management  
of the Company that cannot be resolved, a record 
would be kept in the Board minutes, and this should 
also be noted in the Director’s resignation letter.
Further discussion of the Board’s activities, powers 
and responsibilities appears within the Corporate 
Governance Report on pages 64 to 76. Information on 
compensation for loss of office is contained in the 
Directors’ Remuneration Report on page 95.
Directors’ indemnities
The Directors of the Company have entered into 
individual deeds of indemnity with the Company 
which constitute ‘qualifying third-party indemnity 
provisions’ for the purposes of the Companies Act 
2006. The deeds indemnify the Directors, and the 
directors of the Company’s subsidiary companies,  
to the maximum extent permitted by law. The deeds 
were in force for the whole of the year, or from the 
date of appointment for those appointed during the 
year. In addition, the Company had Directors’ and 
Officers’ liability insurance cover in place throughout 
the year.
Share capital
Details of the Company’s issued share capital, 
together with details of the movements in the 
Company’s issued share capital during the year,  
are shown in note 26.
The Company has one class of ordinary shares with  
a nominal value of five pence each (ordinary shares), 
which does not carry the right to receive a fixed 
income. Each share carries the right to one vote at 
general meetings of the Company. There are no 
restrictions or agreements known to the Company 
that may result in restrictions on share transfers or 
voting rights in the Company. There are no specific 
restrictions on the size of a holding, on the transfer of 
shares, or on voting rights, all of which are governed 
by the provisions of the Articles of Association and 
prevailing legislation. Shareholder authority for the 
Company to purchase up to 159,781,039 (representing 
approximately 10% of the Company’s issued shares 
as at the latest practicable date before the publication 
of the notice of the Annual General Meeting held in 
May 2024) of its own ordinary shares was granted at 
the 2024 AGM. No shares were purchased pursuant 
to this authority during the year.
Shareholder authority for the Company to allot 
ordinary shares up to an aggregate nominal amount 
of £53,255,020 was granted at the 2024 AGM.  
No shares were allotted pursuant to this authority 
during the year.
The issued share capital of the Company at 
31 December 2024 was approximately £79,890,520 
divided into 1,597,810,385 ordinary shares.
Since 31 December 2024, 0 new shares have been 
issued as a result of the exercise of share options  
by the Company’s share option scheme participants 
and the total issued share capital at 5 March 2025  
is 1,597,810,385 ordinary shares. The Company’s 
ordinary shares are listed on the London Stock 
Exchange. The register of shareholders is held in the 
UK. The number of ordinary shares of the Company 
in which the Directors were beneficially interested 
as at 31 December 2024 is set out in the Directors’ 
Remuneration Report on pages 96 to 97.
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Coats Group plc Annual Report and Accounts 2024
Substantial interests
Information provided to the Company pursuant  
to the Financial Conduct Authority’s Disclosure 
Guidance and Transparency Rules (DTRs) is 
published on a Regulatory Information Service  
and on the Company’s website. The following 
information has been received, in accordance with 
DTR 5, from holders of notifiable interests in the 
Company’s issued share capital.
As at  
31 December 
2024*
As at  
5 March 2025*
Nature of  
holding
Liontrust Investment 
Partners LLP
10.01
10.01
Direct
Kempen Capital 
Management N.V.
7.49
7.49
Indirect
FIL Limited
6.12
6.12
Indirect
M&G Plc
5.30
5.30
Indirect
BlackRock Inc
5.14
5.14
Indirect
Abrdn Plc
5.00
5.00
Indirect
*	
% holding based on total number of shares in issue at the time of 
respective notification.
The Company has not been notified of any other 
substantial interests in its securities. The Company’s 
substantial shareholders do not have different voting 
rights. The Group, as far as is known by the Company, 
is not directly or indirectly owned or controlled 
by another corporation or by any government.
Change of control
The Company is not party to any significant 
agreements that would take effect, alter or terminate 
upon a change of control of the Company following a 
takeover bid. However, the Group’s Revolving Credit 
Facility Agreement and US Private Placement would 
terminate upon a change of control of the Company. 
The Company does not have agreements with any 
Director or employee providing compensation for 
loss of office or employment that occurs because of a 
takeover bid, except for provisions in the rules of the 
Company’s share schemes which result in options or 
awards granted to employees vesting on a takeover.
Political donations
No contributions were made to political parties 
during the year (2023: £nil).
Whistleblowing procedure
A whistleblowing, ethics and fraud report is a standing 
agenda item that is presented quarterly at Board 
meetings. Coats has a well-publicised whistleblowing 
procedure, which can be found on our website. This is 
designed to empower all employees, contractors and 
anyone else who is aware of, suspects, or is concerned 
about potential misconduct, illegal activities, fraud, 
abuse of assets or other violations of Company 
policy/Ethics Code to report these confidentially 
via email through the Group ethics channel or via 
an externally hosted web service whistleblowing 
hotline. ‘Doing the right thing’ and ways to raise 
concerns are regularly communicated and discussed.
During the year ended 31 December 2024, 
there were 228 whistleblowing concerns raised 
(2023: 125*). Of these concerns raised, following 
investigation, 16% (2023: 19%*) of the closed cases 
were upheld and 7 cases are still under review. In 
the case of substantiated concerns, disciplinary 
action, up to and including termination, was 
taken whenever there was any evidence of 
misdemeanour, and training and enhanced controls 
were implemented wherever appropriate.
*2023 figures have been restated in order to 
enable a like-for-like comparison with 2024, 
reflecting the categories of investigation 
undertaken as part of our Speak Up Policy.
Going concern
The Company’s business activities, together 
with the factors likely to affect its future 
development, performance and position 
are set out in the Chair’s statement.
In addition, note 33 to the financial statements 
includes the Group’s objectives, policies and 
processes for managing its capital; its financial 
risk management objectives; details of its financial 
instruments and hedging activities; and its 
exposures to credit risk and liquidity risk.  
The Directors believe that the Group is well  
placed to manage its business risks successfully.
The Board expects to be able to meet any 
actual and contingent liabilities from existing 
resources. Further information on the Group’s 
cash and borrowings is set out in note 30(g).
The Directors are satisfied that the Company 
and Group have sufficient resources to 
continue in operation for the period from 
the date of this report to 30 June 2026.
Accordingly, the Directors consider that the going 
concern basis of accounting is appropriate for 
the Company and the Group and the financial 
statements have been prepared on that basis.
In assessing the Group’s going concern position, 
the Directors have considered a number of factors, 
including the current balance sheet position and 
available liquidity, the principal and emerging risks 
which could impact the performance of the Group 
and compliance with borrowing covenants. Further 
details are provided in note 1 of the accounts.
Directors’ report cont.
Concern is raised via  
whistleblowing procedure
Acknowledgement is sent to the whistleblower 
within seven days of receipt of the concern.
The investigation team, independent of the 
relevant operational business or function, is 
nominated by the Group Chief Financial Officer, 
Chief Legal & Risk Officer and Group Company 
Secretary, Chief Human Resources Officer and 
the relevant GET member.
Allegation is investigated by  
the nominated team
Findings are presented to the Group Chief 
Financial Officer, Chief Legal & Risk Officer and 
Group Company Secretary, Chief Human 
Resources Officer and the relevant GET member 
to decide appropriate remedial actions and any 
controls/process enhancements.
The outcome of the investigation is 
appropriately communicated to the 
whistleblower once any remedial actions and/ 
or any controls/process enhancements (even in 
circumstances where the allegation has not 
been upheld) have been determined.
Reports and outcomes are reviewed by the 
Board and the Audit and Risk Committee.
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Coats Group plc Annual Report and Accounts 2024
Results and dividends
The results of the Group are shown on page 124 and movements in reserves are set out in note 27 to the 
financial statements.
The Board is mindful of the importance of returns to shareholders and is pleased to propose a final dividend 
of 2.19 cents per share (2023 final dividend: 1.99 cents). Subject to approval at the forthcoming AGM, the final 
dividend will be paid on 29 May 2025 to ordinary shareholders on the register at 2 May 2025, with an  
ex-dividend date of 1 May 2025. Alongside the interim dividend of 0.93 cents per share, this makes a total  
of 3.12 cents per share for the full year 2024.
Greenhouse Gas (GHG) emissions
Absolute emissions for last three years plus 2019 baseline
Thousands of tonnes of CO2e
2019
20196
2022
20226
2023
20236
2024
Scope 1 Direct2
73.5
59.6
59.7
51.7
51.9
52.4
Scope 2 Indirect3
Location-based
232.6
201.9
201.8
172.2
172.2
181.2
Market-based
190.9
122.4
122.3
59.4
59.3
37.3
Scope 3 Value Chain4
1,060.8
1,009.9
999.2
944.7
882.8
824.2
865.5
Biogenic Emissions CO25
38.2
27.5
24.1
25.7
1. 	 All data is calculated following GHG Protocol guidelines.
2. 	Direct emissions relate to the use of fuels to generate energy on Group 
facilities, mainly the use of oil and gas to generate heat in the form of steam for 
use in processing. On-site generation of electricity using diesel or gas fired 
generators and the use of diesel, petrol and LPG for on-site transport is also 
included. The calculation methodology here is to convert fuel purchased in 
each country to kWh and then to CO2e equivalent using DEFRA conversion 
factors; the data is consolidated globally. 
3. 	Indirect emissions relate mainly to the purchase of electricity from third-party 
suppliers. This is mostly taken from local electricity grids, but does include 
some on-site generation of electricity or steam from third-party suppliers. The 
methodology converts the electricity or other purchased energy from kWh to 
CO2e using the country level conversion factors published by the International 
Energy Authority (IEA) for electricity and DEFRA conversion factors for other 
energy types. This provides the location-based calculation. Market-based 
calculation deducts any certified renewable energy that is purchased by 
country and continues to calculate the residue of the energy consumed at the 
IEA country or DEFRA conversion factors as appropriate. The data is then 
consolidated globally.
4.	 Scope 3 value chain emissions cover all other emissions that occur throughout 
our product and business value chain. This includes the cumulative emissions 
to produce our raw materials and capital equipment and installations, product 
and people transport at all stages, downstream processing and consumer use 
of our sold products and treatment for our waste and our products at the end 
of their life. The methodology for this varies for each Scope 3 category and 
follows the GHG Protocol hierarchy of data quality to determine the best 
available inventory calculation approach. Calculation models are maintained 
for each individual category and are updated annually as required and 
consolidated globally.
5. 	Biogenic emissions cover CO2 emissions that occur from burning bio-mass for 
the purposes of steam generation. These CO2 emissions are excluded from 
our reported emissions, however the CH4 and N²0 emissions associated with 
bio-mass are included in our reported.
6. 	Scope 3 emissions values up to 2023 have been restated by eliminating the 
impact associated with Category 11 (Use of sold goods) emissons. This change 
was requested by SBTi during our recent re-baseline approval process. Minor 
restatement has been made to Scope 1 & 2 emissions in 2022 and 2023 due 
to reclassificaion of fuel energy in a single manufacturing location.
Scopes 1 and 2 combined absolute emissions on a 
market-based approach decreased by 19% between 
2023 and 2024, and by 51% between 2022 and 
2024. This significant reduction in emissions is 
primarily attributed to continued acceleration of 
our energy transition programme, with electricity 
being transitioned from fossil-fuel to renewable 
generation methods. In 2024 we increased the 
proportion of electricity covered by energy attribute 
certificates (EACs) to 74%, up from 54% in 2023 and 
29% in 2022. Additionally, in 2024 we improved 
our energy intensity (kWh energy per Kg finished 
goods) by 4% from 2023 through continued delivery 
of energy efficiency projects across the group. 
Scopes 1 and 2 emissions from our UK facilities in 
2023 were 307 tonnes CO2e and represented 0.3% 
of our global emissions. 100% of our UK emissions 
were related to our Skelton manufacturing site, 
which produced footwear structural components, 
however this facility ceased to operate and consume 
energy from October 2024.
Emissions Intensity1
Greenhouse gas emissions intensity per unit  
of production
kg CO2e per kg of 
finished product
2022
20223
2023
20233
2024
Scopes 1 & 2
1.5
1.1
0.8
Scope 3
8.3
7.8
8.6
8.0
7.7
Greenhouse gas emissions intensity per US$  
sales value
tonnes CO2e per 
million $ sales
2022
20223
2023
20233
2024
Scopes 1 & 22
118.4
79.7
59.8
Scope 3
649.8
613.7
633.2
590.3
572.9
1.	 We have used these two ratios for several years. The first uses volume of 
finished goods production in tonnes (Kilo tonnes used for Scopes 1 & 2 are 
2024: 112, 2023: 102, 2022: 120) and hence relates directly to the industrial 
activity that drives emissions, while the second uses Group turnover and 
hence relates to overall commercial activity.
2. 	Figures are calculated on a market basis for Scope 2 emissions.
3. 	Scope 3 emissions values up to 2023 have been restated by eliminating the 
impact associated with Category 11 (Use of sold goods) emissions. 
This change was requested by SBTi during our recent re-baseline 
approval process.
Our Scopes 1 & 2 volume emissions intensity shows 
a 26% reduction between 2023 and 2024, and a 
47% reduction between 2022 and 2024. This has 
been delivered primarily due to the positive 
progress made in transition to renewable indirect 
energy. Scope 3 volume intensity has reduced by 
4% from 2023 to 2024 and reflects positive progress 
made in transition to non-virgin oil-based materials. 
Scope 3 emissions have been restated back to 2019 
by eliminating the impact associated with Category 
11 (Use of sold products) emissions, with this change 
being made at the request of the Science Based 
Targets Initiative (SBTi) during our recent emissions 
re-baseline approval to incorporate emissions from 
our 2022 Texon and Rhenoflex footwear 
components acquisitions.
The overall value intensity for Scopes 1 & 2 
emissions reduced by 25% compared to 2023, with 
the Scope 3 value intensity reducing by 2%. 
The difference between the volume and value 
intensity movements is largely related to movements 
in price and product mix.
Full details of all reportable greenhouse gas 
emissions and on the reporting methodology used 
for the above figures can be found in our online 
Sustainability Report.
Energy Consumption
Million kWh
2022
2023
2024
Direct (Fuels)
311
264
271
Indirect (bought electricity 
and steam)
446
390
410
Total
756.4
654.4
681.1
1.	 All years data excludes divestments made during that year. All include 
acquisition of Footwear Division business units (Texon and Rhenoflex).
Through 2024 we continued our focus on delivering 
improvements in energy efficiency, with further 
sites brought on-line with use of our global smart 
energy metering programme. Energy efficiency 
initiatives focussed on improved use of natural 
lighting in factories to reduce artificial illumination 
requirements, use of invertors to optimise efficiency 
when running electric motors, and optimisation 
projects on compressed air generation.
Directors’ report cont.
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Coats Group plc Annual Report and Accounts 2024
Energy consumption in our UK facilities in 2024 was 2,522MWh and represented 0.4% of global  
energy consumption.
The following methodology is used for calculating emissions and energy consumption:
Boundary
All emissions from operating companies that are consolidated in the Group financial statements are included. 
Operational joint ventures are included based on equity share.
Scope 1
Fuel consumption data is collated monthly from all units, based on metered or invoiced consumption 
converted into kWh. We use DEFRA published gross calorific value conversion factors to  
standardise emissions.
Scope 2
Electricity or steam purchase volumes are collected from all units monthly. All electricity kWhs are converted 
using IEA country level conversion factors for the location-based data. For the market-based data certified 
renewable electricity purchased is not included and the remainder is converted using the same IEA country 
factors, or country level residual emissions factors where available.
Scope 3
Scope 3 emissions are calculated annually using multiple sources for data (including suppliers, lifecycle 
assessment data providers and industry data sources). Each category is calculated with the best available set 
of data sources, and is consistent over the three reported years. Products & Services, Upstream Energy and 
Transport are the main components of Scope 3 emissions.
More detail on methodology is available in our Sustainability Report online.
Auditor
A resolution to re-appoint Ernst & Young LLP as auditor will be proposed at the 2025 AGM.
A statement in respect of the current auditor, Ernst & Young LLP, in accordance with Section 418 of the 
Companies Act 2006, has been included below.
Disclosure of information to the auditor
The Directors who held office at the date of approval of this Directors’ Report confirm that, as far as they are 
aware, there is no relevant audit information of which the Company’s auditor is unaware, and each Director 
has taken all reasonable steps to ascertain any relevant audit information and to ensure that the Company’s 
auditor is aware of that information.
Branches
The Company, through various subsidiaries, has branches in several different jurisdictions in which the 
business operates outside the UK. The full list of subsidiary companies can be found from page 201.
Other information
Other information relevant to this Directors’ Report, 
and which is incorporated by reference, including 
information required in accordance with the UK 
Companies Act 2006 and Listing Rule 6.6.1, can be 
located as follows:
Subject matter
Page(s)
Important events since the financial year-end
175
Likely future developments in  
the business
8 & 13
Exposure to price risk, credit risk,  
liquidity risk and cash flow risk
168-174
Research and development
13
Information on financial instruments
168-174
Environmental policy
15-16
Energy efficiency	
108-109
Employment of disabled persons
23-24
Employee involvement
45, 47-49 & 74
Stakeholder engagement
44-46
Diversity policy
85
This Directors’ Report was approved by order of 
the Board.
On behalf of the Board 
Stuart Morgan
Company Secretary
5 March 2025
Directors’ report cont.
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Coats Group plc Annual Report and Accounts 2024
Directors’ responsibilities 
The Directors are responsible for preparing the 
Annual Report and the financial statements in 
accordance with applicable law and regulations. 
Company law requires the Directors to prepare 
financial statements for each financial year.  
Under that law the Directors are required to prepare 
the group financial statements in accordance with 
United Kingdom adopted international accounting 
standards. The Directors have chosen to prepare the 
parent company financial statements in accordance 
with United Kingdom Generally Accepted 
Accounting Practice (United Kingdom Accounting 
Standards and applicable law), including FRS 102 
‘The Financial Reporting Standard applicable in the 
UK and Republic of Ireland’. Under company law the 
Directors must not approve the financial statements 
unless they are satisfied that they give a true and 
fair view of the state of affairs of the Company and 
of the profit or loss of the Company for that period.
In preparing the parent company financial 
statements, the Directors are required to:
–	select suitable accounting policies in accordance 
with Section 10 of FRS 102 and then apply them 
consistently;
–	make judgements and accounting estimates that 
are reasonable and prudent;
–	present information, including accounting policies, 
in a manner that provides relevant, reliable, 
comparable and understandable information;
–	state whether applicable UK Accounting 
Standards, including FRS 102, have been followed, 
subject to any material departures disclosed and 
explained in the financial statements; 
–	provide additional disclosures when compliance 
with the specific requirements in FRS 102 are 
insufficient to enable users to understand the 
impact of particular transactions, other events and 
conditions on the entity’s financial position and 
financial performance; and
–	prepare the financial statements on the going 
concern basis unless it is inappropriate to 
presume that the Company will continue 
in business.
In preparing the Group financial statements, 
International Accounting Standard 1 requires 
that Directors:
–	properly select and apply accounting policies 
in accordance with IAS 8 Accounting Policies, 
Changes in Accounting Estimates and Errors;
–	present information, including accounting policies, 
in a manner that provides relevant, reliable, 
comparable and understandable information;
–	state whether United Kingdom adopted 
international accounting standards have been 
followed, subject to any material departures 
disclosed and explained in the financial 
statements; and
–	provide additional disclosures when compliance 
with the specific requirements in United Kingdom 
adopted international accounting standards are 
insufficient to enable users to understand the 
impact of particular transactions, other events 
and conditions on the entity’s financial position 
and financial performance; and
–	make an assessment of the Company’s ability to 
continue as a going concern.
The Directors are responsible for keeping adequate 
accounting records that are sufficient to show and 
explain the Company’s transactions and disclose 
with reasonable accuracy at any time the financial 
position of the Company and enable them to ensure 
that the financial statements comply with the 
Companies Act 2006. They are also responsible for 
safeguarding the assets of the Company and hence 
for taking reasonable steps for the prevention and 
detection of fraud and other irregularities.
Under applicable law and regulations, the Directors 
are also responsible for preparing a strategic report, 
Directors’ report, Directors’ remuneration report and 
corporate governance statement that comply with 
that law and those regulations. The Directors are 
responsible for the maintenance and integrity of the 
corporate and financial information included on the 
Company’s website.
Directors’ responsibility statement
We confirm that to the best of our knowledge:
–	the financial statements, prepared in accordance 
with the relevant financial reporting framework, 
give a true and fair view of the assets, liabilities, 
financial position and profit or loss of the 
Company and the undertakings included in the 
consolidation taken as a whole;
–	the Annual Report including, the Strategic Report, 
includes a fair review of the development and 
performance of the business and the position of 
the Company and the undertakings included in 
the consolidation taken as a whole, together with 
a description of the principal risks and 
uncertainties that they face; and
–	the Annual Report and financial statements, taken 
as a whole, are fair, balanced and understandable 
and provide the information necessary for 
shareholders to assess the Company’s position, 
performance, business model and strategy.
This responsibility statement was approved by the 
Board of Directors on 5 March 2025 and is signed 
on its behalf by:
David Paja
Group CEO
5 March 2025
Directors’ report cont.
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Coats Group plc Annual Report and Accounts 2024
Opinion
In our opinion:
–	 Coats Group plc’s group financial statements and parent company financial statements (the 
“financial statements”) give a true and fair view of the state of the Group’s and of the parent 
company’s affairs as at 31 December 2024 and of the Group’s profit for the year then ended;
–	 the Group financial statements have been properly prepared in accordance with United Kingdom 
adopted international accounting standards;
–	 the parent company financial statements have been properly prepared in accordance with United 
Kingdom Generally Accepted Accounting Practice; and
–	 the financial statements have been prepared in accordance with the requirements of the Companies 
Act 2006.
We have audited the financial statements of Coats Group plc (the ‘parent company’) and its subsidiaries  
(the ‘Group’) for the year ended 31 December 2024 which comprise:
Group
Parent company
Consolidated statement of financial position as at 31 December 2024
Balance sheet as at 31 December 2024
Consolidated income statement for the year then ended
Statement of changes in equity for the year then 
ended
Consolidated statement of comprehensive income for the year  
then ended
Statement of cash flow for the year then ended 
Consolidated statement of changes in equity for the year then ended Related notes 1 to 6 to the financial statements 
including a summary of significant accounting 
policies
Consolidated statement of cash flows for the year then ended
Related notes 1 to 36 to the financial statements, including material 
accounting policy information
The financial reporting framework that has been applied in the preparation of the group financial statements 
is applicable law and United Kingdom adopted international accounting standards. The financial reporting 
framework that has been applied in the preparation of the parent company financial statements is applicable 
law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard 
applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion 
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable 
law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the 
audit of the financial statements section of our report. We believe that the audit evidence we have obtained is 
sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group and parent in accordance with the ethical requirements that are relevant to 
our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed public 
interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the 
parent company and we remain independent of the Group and the parent company in conducting the audit.
Conclusions relating to going concern 
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis 
of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ 
assessment of the Group and parent company’s ability to continue to adopt the going concern basis of 
accounting included:
–	 Confirming our understanding of management’s going concern assessment process, including how 
principal and emerging risks were considered.
–	 Obtaining the forecast cash flows to 30 June 2026 used by management in its going concern assessment 
and testing the arithmetical accuracy of the models, verifying inputs against budgets approved by the 
Board and agreeing the opening net debt to the audited 31 December 2024 consolidated financial 
statements.
–	 Evaluating the appropriateness of the duration of the going concern assessment period to 30 June 2026 and 
considering the existence of any significant events or conditions beyond this period, based on our inquiries 
of management, Coats Group plc’s three-year plan and knowledge arising from other areas of the audit.
–	 Challenging the reasonableness of the cash flow forecast by performing analysis of management’s 
historical forecasting accuracy and checking for consistency of the forecasts with other areas of the audit, 
including the impairment assessment and deferred tax asset recognition.
–	 Evaluating key assumptions used by management in preparing the going concern models and:
–	 assessing contrary evidence by considering industry data, key customers’ outlook,  
analyst expectations and information obtained from other areas of the audit;
–	 assessing whether assumptions made were reasonable and appropriate, in light of the Group’s 
relevant principal risks and uncertainties and our own independent assessment of those risks;
–	 assessing the impact of Coats Group plc’s climate commitments on the cash flow forecasts.
Independent auditor’s report to the members of Coats Group plc
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Coats Group plc Annual Report and Accounts 2024
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Our key observations
–	 The directors’ assessment forecasts that the Group will maintain sufficient liquidity and covenant 
compliance throughout the going concern period to 30 June 2026. We observed that in management’s 
base case and in the downside sensitivity scenario’s, there is liquidity headroom and covenant 
compliance without considering any identified controllable mitigations.
–	 Management also performed a reverse stress test, showing the business was able to withstand a more 
severe decline in performance. Management considers such a scenario to be remote, and has noted that 
the impact can be mitigated by implementing actions which are within their control.
Based on the work we have performed, we have not identified any material uncertainties relating to events 
or conditions that, individually or collectively, may cast significant doubt on the Group and parent company’s 
ability to continue as a going concern for the period to 30 June 2026.
In relation to the Group and parent company’s reporting on how they have applied the UK Corporate 
Governance Code, we have nothing material to add or draw attention to in relation to the directors’ statement 
in the financial statements about whether the directors considered it appropriate to adopt the going concern 
basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in 
the relevant sections of this report. However, because not all future events or conditions can be predicted, 
this statement is not a guarantee as to the Group’s ability to continue as a going concern.
–	 Obtaining the Group’s existing borrowing facility agreements and:
–	 reviewing the refinancing of the revolving credit facility and USPP notes and checking that the terms 
attached to the new agreements were correctly factored into the going concern models and debt 
covenant compliance tests;
–	 performing an examination of all agreements, to assess their continued availability to the Group throughout 
the going concern period and to ensure completeness of debt covenants identified by management.
–	 Assessing the accuracy of management’s debt covenants forecast model on the base case, verifying 
inputs to board approved forecasts and facility agreement terms.
–	 evaluating the compliance of the Group with debt covenants in the forecast period by reperforming 
calculations of the covenant tests;
–	 assessing the impact of the downside risk scenarios on debt covenant compliance and performing 
sensitivity analysis on the remaining headroom.
–	 Challenging the appropriateness of management’s ‘reverse stress test’ scenario, to understand how 
severe conditions would have to be to breach liquidity and/or debt covenant compliance and whether 
the required conditions have no more than a remote possibility of occurring when compared to historical 
financial performance.
–	 Assessing management’s ability to execute controllable mitigating actions to respond to the downside 
risk scenarios including the reverse stress test based on our understanding of the Group and the sector.
–	 Performing an independent reverse stress test to understand the extent of reduction in sales required  
to breach the compliance of debt covenants.
–	 Considering whether management’s disclosures in the financial statements sufficiently and appropriately 
reflect the going concern assessment including key judgements made and outcomes. 
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Coats Group plc Annual Report and Accounts 2024
Independent auditor’s report to the members of Coats Group plc cont.
We identified 11 components as individually relevant to the Group due to relevant events and conditions 
underlying the identified risks of material misstatement of the group financial statements being associated 
with the reporting components or a pervasive risks of material misstatement of the group financial 
statements or a significant risk or an area of higher assessed risk of material misstatement of the group 
financial statements being associated with the components.
We then identified 7 components of the Group as individual relevant due to materiality or financial size of the 
component relative to the Group.
For those individually relevant components, we identified the significant accounts where audit work needed 
to be performed at these components by applying professional judgement, having considered the Group 
significant accounts on which centralised procedures will be performed, the reasons for identifying the financial 
reporting component as an individually relevant component and the size of the component’s account balance 
relative to the Group significant financial statement account balance.
We then considered whether the remaining Group significant account balances not yet subject to audit 
procedures, in aggregate, could give rise to a risk of material misstatement of the group financial statements. 
We selected 6 components of the Group to include in our audit scope to address these risks.
Having identified the components for which work will be performed, we determined the scope to assign  
to each component.
Of the 24 components selected, we designed and performed audit procedures on the entire financial 
information of 13 components (“full scope components”). For 8 components, we designed and performed 
audit procedures on specific significant financial statement account balances or disclosures of the financial 
information of the component (“specific scope components”). For the remaining 3 components,  
we performed specified audit procedures to obtain evidence for one or more relevant assertions.
Our scoping to address the risk of material misstatement for each key audit matter is set out in the Key audit 
matters section of our report on page 115.
Overview of our audit approach
Audit scope
–	 We performed an audit of the complete financial information of 13 components, 
full audit procedures on specific balances for a further 8 components and 
specified audit procedures on specific balances for a further 3 components.
–	 We performed centralised procedures on the following accounts: goodwill, 
acquired intangibles, borrowings, loan receivable, investment in joint ventures, 
funded defined benefit obligations, equity (Group and parent company), 
investment in subsidiaries (parent company), intercompany eliminations and 
consolidation journals.
–	 In addition to group oversight procedures, we, as the primary team, 
performed supplementary procedures on certain accounts audited by 
component auditors being: revenue including rebates, cash and cash 
equivalents, exceptional and acquisition related items, income tax liabilities, 
deferred tax assets, deferred tax liabilities and inventories.
Key audit matters
–	 Revenue recognition (cut-off).
–	 Impairment of assets allocated to the US and Mexico Cash Generating Unit.
–	 Valuation of the UK pension scheme defined benefit obligations and 
accounting for the buy-in transaction.
–	 Provisions for uncertain tax positions.
Materiality
–	 Overall Group materiality of $12.0 million which represents 5.0% of adjusted 
profit before tax.
–	 Parent Company is determined to be $13.5 million which is 1.0% of equity.
An overview of the scope of the parent company and group audits 
Tailoring the scope
In the current year our audit scoping has been updated to reflect the new requirements of ISA (UK) 600 
(Revised). We have followed a risk-based approach when developing our audit approach to obtain sufficient 
appropriate audit evidence on which to base our audit opinion. We performed risk assessment procedures, 
with input from our component auditors, to identify and assess risks of material misstatement of the Group 
financial statements and identified significant accounts and disclosures. When identifying components at 
which audit work needed to be performed to respond to the identified risks of material misstatement of the 
Group financial statements, we considered our understanding of the Group and its business environment, 
the components’ contribution to Group revenue and profit before tax, the number of significant account 
balances with associated risk of material misstatements, historical misstatements identified at each 
component, the applicable financial framework, the Group’s system of internal control at the entity level,  
the existence of centralised processes, applications and any relevant internal audit results.
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Coats Group plc Annual Report and Accounts 2024
Independent auditor’s report to the members of Coats Group plc cont.
Climate change 
Stakeholders are increasingly interested in how climate change will impact the Group. The Group has 
determined that the most significant future impacts from climate change on their operations will be from 
introduction of carbon taxes, disruption of water supply and extreme weather events (floods and extreme 
heat). These are explained on pages 182-198 in the required Task Force On Climate Related Financial 
Disclosures and on pages 50 to 56 in the principal risks and uncertainties. They have also explained 
their climate commitments on pages 65-66. All of these disclosures form part of the “Other information,” 
rather than the audited financial statements. Our procedures on these unaudited disclosures therefore 
consisted solely of considering whether they are materially inconsistent with the financial statements or our 
knowledge obtained in the course of the audit or otherwise appear to be materially misstated, in line with our 
responsibilities on “Other information”.
In planning and performing our audit we assessed the potential impacts of climate change on the Group’s 
business and any consequential material impact on its financial statements.
As explained in note 1, the basis of preparation, consideration of climate change impact on the judgements  
in the accounts is not considered to have a material impact at this time. Governmental and societal responses 
to climate change risks are still developing, and are interdependent upon each other, and consequently 
financial statements cannot capture all possible future outcomes as these are not yet known. The degree 
of certainty of these changes may also mean that they cannot be taken into account when determining 
asset and liability valuations and the timing of future cash flows under the requirements of United Kingdom 
adopted international accounting standards.
Our audit effort in considering the impact of climate change on the financial statements was focused on 
evaluating management’s assessment of the impact of climate risk being appropriately reflected in asset 
values and associated disclosures where values are determined through modelling future cash flows, being 
the impairment tests of tangible and intangible assets, deferred tax asset recognition and related disclosures.
We also challenged the Directors’ considerations of climate change risks in their assessment of going 
concern and viability and associated disclosures.
Based on our work we have not identified the impact of climate change on the financial statements to be  
a key audit matter or to impact a key audit matter.
Involvement with component teams 
In establishing our overall approach to the Group audit, we determined the type of work that needed to be 
undertaken at each of the components by us, as the Group audit engagement team, or by component auditors 
operating under our instruction.
The Group audit team continued to follow a programme of planned visits that has been designed to ensure that  
the Senior Statutory Auditor and delegates visit key locations on a rotational basis. During the current year’s 
audit cycle, visits were undertaken by the primary audit team to the component teams in Mexico and Spain. 
These visits involved understanding the audit approach with the component team and any issues arising from 
their work, meeting with local management, attending planning and closing meeting, reviewing relevant audit 
working papers on risk areas. The Group audit team interacted regularly with all component teams where 
appropriate during various stages of the audit, reviewed relevant working papers and were responsible for 
the scope and direction of the audit process.
Where relevant, the section on key audit matters details the level of involvement we had with component 
auditors to enable us to determine that sufficient audit evidence had been obtained as a basis for our opinion 
on the Group financial statements as a whole.
We maintained continuous and open dialogue with the component audit teams in addition to holding formal 
meetings to ensure that we were fully aware of their progress and the results of their procedures. Close meetings 
for full, specific, and specified audit procedures components (excluding those performed by the primary audit 
team) were held via video conference in January and February 2025 and were attended by the Senior Statutory 
Auditor and/or other members of the primary audit team. This, together with the additional procedures performed 
at Group level, gave us appropriate evidence for our opinion on the Group financial statements.
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Coats Group plc Annual Report and Accounts 2024
Independent auditor’s report to the members of Coats Group plc cont.
Key audit matters 
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material 
misstatement (whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts  
of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
Risk
Our response to the risk
Key observations communicated to the Audit Committee 
Revenue recognition (Cut-off) $1,501 million (2023: $1,394 million)
Refer to the Audit Committee Report (page 77); Accounting policies 
(page 135); and Note 3 of the Consolidated Financial Statements (page 
139)
There is a potential incentive to overstate revenue for the financial year 
in order to meet individual or Company financial targets (principally 
adjusted operating profit and adjusted EPS targets).
The process for accounting for revenue transactions at or near the year 
end contains manual elements and therefore there is opportunity for 
error (either accidental or with intent).
Further, due to the varied incoterms across the Group as well as some 
export products with longer delivery lead times, there is a risk of revenue 
being recorded prior to the performance obligations being satisfied.
We performed full or specific audit procedures over this risk area in 
13 full scope, 8 specific scope and 3 specified procedure components 
with material revenue balances, which covered 85% (2023: 80%) of the 
Group’s revenue.
Procedures around this risk area are primarily performed at a 
component level and therefore, form a significant part of our oversight 
procedures. We instructed our component teams and each of them:
–	 Performed walkthroughs to obtain an understanding of the revenue 
recognition processes and key controls.
–	 Obtained an understanding of management’s cut off assessment 
at year-end, including the split between export and domestic sales 
and the delivery lead time assumptions utilised by management.
–	 Tested revenue cut off by obtaining management’s sales cut off 
assessment, where material, and independently tested a sample of 
transactions therein by vouching to invoices and proof of delivery.
–	 Tested an independent sample of transactions invoiced in the 21 
days for the pre- year end period and 7 days for the post year end 
period. We stratified the population between revenue type and 
selected our sample based on the following criteria:
–	 Statistical sample of items invoiced within the 14 day prior to the 
balance sheet date, which we considered to be of higher risk 
based on average delivery lead times.
–	 We tested our sample by vouching to invoices and third-party 
evidence (e.g., proof of delivery, bill of lading) to assess whether 
the performance obligation is satisfied.
We concluded that the revenue recognised at or near year end 
was properly accounted for and that revenue was appropriately 
recognised in accordance with the relevant accounting standards.
We concluded that management’s disclosures in relation to revenue, 
including disclosed accounting policies, to be appropriate.
As part of our procedures, we noted no indication of deliberate or 
other manipulation of revenue cut-off or management override.
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Coats Group plc Annual Report and Accounts 2024
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Risk
Our response to the risk
Key observations communicated to the Audit Committee 
–	 Inspected third party evidence (e.g., purchase orders) to test the 
validity of incoterms and understand the conditions required to 
satisfy the performance obligations.
–	 Tested a sample of journal entries recorded at or near year end  
as well as top- side adjustments by verifying to appropriate 
supporting documentation.
–	 Performed a search for significant post year end credit notes raised 
up to 21 days from the year- end date to identify any material sales 
reversal by verifying to appropriate supporting documentation.
–	 With the exception of 2 components, analysed sales-related 
journal entry data to track sales from revenue through to accounts 
receivable through to cash collection using data analytics tools.  
We used this analysis to validate the appropriateness of transaction 
flows and tested a sample of transactions to determine if the journals 
accurately reflected the substance of transactions recorded.
–	 For the remaining 2 components, we selected a statistical sample 
from the entire population of revenue transactions in the year,  
and vouched to invoices and proof of delivery, to confirm these  
had been recorded in the correct period.
For the remaining entities, constituting the residual 15% of revenue,  
we performed analytical review procedures and we utilised a combination 
of data analytical tools and monthly sales data to search for any unusual 
items and/or activities.
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Coats Group plc Annual Report and Accounts 2024
Independent auditor’s report to the members of Coats Group plc cont.
Risk
Our response to the risk
Key observations communicated to the Audit Committee 
Impairment of assets allocated to US and Mexico Cash Generating 
Unit (‘CGU’)
(CGU carrying value: $106 million (2023: $142 million)
Refer to the Audit Committee Report (page 77); Accounting policies 
(page 132); and Note 14 of the Consolidated Financial Statements 
(page 156)
This is an area of focus due to the impairment	indicator	of 
underperformance of the CGU against plan during the year.
The estimation of recoverable amount involves significant judgements 
including assumptions relating to future cashflows, discount rate, long-
term growth rates. In addition, we considered management’s new 
strategy and revised forecasts for the US and Mexico business to be 
subject to a higher degree of estimation risk.
The procedures described below were performed by the primary team.
We validated that management’s impairment methodology is 
consistent with the requirements of IAS 36 Impairment of Assets.  
In particular, we considered management’s new strategy to close the 
site in Toluca, Mexico, removing the impacted assets from the Cash 
Generating Unit (‘CGU’) and valuing these at their Fair Value, less Cost to 
Sell (‘FVLCS’), in line with the requirements of IAS 36.
Below we summarise the procedures performed in relation to the key 
assumptions for the carrying value of the assets allocated to the US & 
Mexico business CGU:
For the assets at the Toluca site, valued using the FVLCS basis, we:
–	 Obtained a breakdown of the carrying value of the assets impacted 
by the closure of the Toluca site. For each of these we obtained an 
understanding of how management would recover the fair value of 
the assets and the potential cost to sell.
–	 For the most significant judgement related to a long-term lease, 
we made inquiries directly of third-party brokers to validate 
management’s assumptions in relation to expected subletting  
of the property.
For the assets expected to recover their value through continued use 
in the US & Mexico business, and therefore, valued using a ‘Value in 
Use’ (VIU) basis, we:
–	 Understood management’s process for the impairment testing and 
gained an understanding of the controls through a walkthrough  
of the process management has in place to assess impairment.
–	 Obtained management’s value in use model and tested for 
mathematical accuracy.
Based on our audit procedures we have concluded that no further 
impairment of the assets in the US & Mexico Cash Generating Unit  
is required.
We have accepted management’s impairment conclusion based on 
the strategic actions taken to date, including the shift to the US,  
focus on productivity, optimisation and also closure of the Toluca site.  
We also considered the nature of the remaining asset base in the 
CGU, noting these to be largely plant & machinery and land and 
buildings, which have value in their own right and allocation of assets 
subject to separate valuation assessments.
We have concluded appropriate disclosures have been included in  
the financial statements as required under the accounting standards.
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Coats Group plc Annual Report and Accounts 2024
Independent auditor’s report to the members of Coats Group plc cont.
Risk
Our response to the risk
Key observations communicated to the Audit Committee 
–	 Engaged EY Valuation specialists to assess the appropriateness 
of the discount rate, long-term growth rates, and the overall 
methodology used in the value-in- use model prepared for the 
purposes of the US & Mexico cash generating unit impairment 
assessment.
–	 Assessed management’s forecasting ability by comparing forecasts 
to actual results for this year and the prior year.
–	 Understood management’s strategy to grow Revenue and EBIT 
of the remaining business by making inquiries of the Performance 
Materials and Coats Group Leadership Team and reviewing 
submission of strategic options to the Board of Directors of Coats 
Group Plc.
–	 Performed independent research, including expected industry 
growth rates, to identify contrary information and evaluate 
assumptions for evidence of management bias.
–	 Reviewed recent actual monthly performance against plan to 
assess the impact of strategic actions taken by management.
–	 Performed sensitivity analysis over key assumptions underpinning 
management’s forecasts including discount rate, long term growth 
rate and assumptions relating to revenue and margin growth.
We have also assessed the appropriateness of the Group’s related 
disclosures in the consolidated financial statements.
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Coats Group plc Annual Report and Accounts 2024
Independent auditor’s report to the members of Coats Group plc cont.
Risk
Our response to the risk
Key observations communicated to the Audit Committee 
Valuation of the UK defined benefit pension obligations and 
accounting for buy-in transaction– $9.1m (net deficit) (2023: 
$102.2m (net surplus)) and $242m loss recognised in other 
comprehensive income as a result of the buy-in.
Refer to the Audit Committee Report (page 77); Accounting policies 
(page 135); and Note 10 of the Consolidated Financial Statements 
(page 145)
There is a risk of material misstatement relating to the judgements 
made by management in valuing the UK pension scheme defined 
benefit obligations including the use of key model input assumptions, 
specifically the discount rate, mortality assumption and inflation rate.
After the completion of the buy-in during the current year, the 
UK pension scheme defined benefit obligations are now fully 
hedged, reducing the overall risk of movements in key assumptions 
underpinning the pension liability, as any future fluctuations will be 
offset by corresponding movements in the insurance asset.
However, a risk of material misstatement still exists in relation to the 
one-off buy-in transaction due to its magnitude, complexity and the 
accounting judgements involved, particularly regarding the recognition 
of the actuarial loss in OCI instead of the income statement.
In the prior year, management identified the key assumptions 
underpinning the UK pension scheme defined benefit obligations 
as a key source of estimation uncertainty in Note 1 of the financial 
statements. Following the completion of the buy-in in the current year, 
management determined that the UK pension scheme defined benefit 
obligations are no longer a key source of estimation uncertainty.
The procedures described below were performed by the Primary team:
–	 Understood management’s process for valuing the UK pension 
defined benefit obligation including the completion of the buy-in 
transaction and gained an understanding of the controls through a 
walkthrough of the process management has in place.
–	 Engaged internal actuarial specialists to assess the key 
assumptions applied in determining the pension obligations for 
the UK pension schemes and the buy-in transaction to conclude 
on whether the key assumptions are within a reasonable expected 
range.
–	 Challenged management’s key assumptions by reference to 
illustrative benchmark rates, sensitising for any difference between 
management’s rates and the illustrative benchmark rates.
–	 Benchmarked key assumptions against other listed companies  
to check for outliers in the data used.
–	 With the assistance of our pension specialists, assessed the  
impact of the High Court ruling on contracted-out defined benefit 
pension schemes and evaluated management’s progress to date  
in determining the impact.
–	 Examined the buy-in agreement with Pension Insurance 
Corporation (“PIC”) and supporting schedules to understand the 
terms of the transaction.
–	 Reviewed bank statements, proof of payment and other supporting 
evidence to verify the accuracy of the actuarial loss recorded.
–	 Assessed management’s accounting treatment of the buy-in transaction,
–	 including the judgement that there is no committed buy-out and 
that the actuarial loss is appropriately presented in the statement  
of comprehensive income.
–	 Reviewed the financial statement disclosures related to the UK 
pension liability and buy-in transaction to ensure they were complete, 
accurate and in compliance with IAS 19. This included assessing 
the disclosures regarding the transaction’s impact on key source of 
estimation uncertainty and critical accounting judgements.
From the work performed, we are satisfied that the key assumptions 
applied in respect of the valuation of the UK scheme liabilities and  
the accounting applied by management for the buy-in transaction  
are appropriate.
We concluded that the related disclosures in the financial statements 
are appropriate.
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Coats Group plc Annual Report and Accounts 2024
Risk
Our response to the risk
Key observations communicated to the Audit Committee 
Provisions for uncertain tax positions – $26.0 million  
(2023:$29.3 million)
Refer to the Audit Committee Report (page 77); Accounting policies 
(page 136); and Note 9 of the Consolidated Financial Statements  
(page 143)
The Group operates in a number of international jurisdictions, and as a 
result there is a risk of uncertain tax exposures arising around the Group, 
as well as heightened risk around estimates in determining the tax effect 
of cross border transactions including transfer pricing arrangements. 
The Group is subject to tax authority audits and has a number of open 
tax enquiries in multiple jurisdictions at any point in time.
As a result of this, management are required to exercise judgement in 
making determinations as to the amount of tax that is payable.
The Group has recognised a number of provisions for uncertain tax 
positions, the valuation of which requires significant assumptions  
and judgement.
We focused on this area due to the complexity,	subjectivity, 
quantification of the provision and the judgement around the trigger for 
recognition or release.
Our procedures on the uncertain tax position provisions were 
performed centrally by the Group team supported by subject matter 
specialists (including UK transfer pricing specialists) and overseas tax 
teams with expertise in local tax regulations where appropriate.
To address the risk, we:
–	 Performed a walkthrough of the tax provisioning process and 
identifying key controls place noting that they were designed 
appropriately. We also evaluated the appropriateness of the 
Group’s transfer pricing and uncertain tax provisioning policies.
–	 Met with management to understand the status of all significant 
matters, including those provided for, and any changes to 
management’s judgements in the year.
–	 Reviewed correspondence with tax authorities and external 
advisors to inform our assessment of recorded estimates and 
evaluate the completeness of the provisions recorded.
–	 Independently assessed management’s significant assumptions 
and judgements to record or release provisions following tax audits, 
settlements and the expiry of statute of limitations.
–	 Tested the accuracy of the calculation of the year end provisions by 
inspecting underlying documentation and supporting schedules.
–	 Evaluated the adequacy of tax disclosures within the  
financial statements.
We are satisfied that management’s judgements in relation to the 
provisions for uncertain tax positions are supportable.
We consider the disclosures with respect to uncertain tax positions to 
be appropriate.
In the current year, the following changes have been reflected in our Key Audit Matters (‘KAMs’):
–	 For the year ended 31 December 2023, our auditor’s report included a Key Audit Matter in relation to classification of the disposal of the European Zips business as an IFRS 5 discontinued operation. The disposal of the 
European Zips business was completed in the prior year, with no ongoing impact. Consequently, there is no impact on the current year’s results, hence we concluded this no longer represents a Key Audit Matter.
–	 For the year ended 31 December 2023, our Key Audit Matter on impairment focused on the carrying value of assets in the newly formed Footwear Cash Generating Unit (‘CGU’). This is no longer considered a Key Audit 
Matter given the actual performance of the Footwear division and the available headroom compared to the carrying value of assets in the CGU.
–	 For the year ended 31 December 2023, our Key Audit Matter regarding the UK pension scheme focused on the assumptions underpinning the defined benefit obligation. In the current year, this Key Audit Matter has 
been updated to include also the risks associated with the accounting for the buy-in.
Independent auditor’s report to the members of Coats Group plc cont.
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a. Materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified 
misstatements on the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be 
expected to influence the economic decisions of the users of the financial statements. Materiality provides  
a basis for determining the nature and extent of our audit procedures.
We determined materiality for the Group to be $12.0 million (2023: $10.0 million), which is 5.0% (2023: 5.0%) 
of adjusted profit before tax. We believe that adjusted profit before tax provides us with appropriate measure 
given the prominence of this metric to investors, shareholders, and management.
We determined materiality for the Parent Company to be $13.5 million (2023: $13.4 million), which is 1.0% 
(2023: 1.0%) of equity which is the metric the investors and shareholder are most interested in given that the 
Parent Company holds the investment of the entire Coats Group.
–	 $172.1 million
–	 Profit before tax
Starting  
basis
Adjustments
Materiality
–	 Add back $69.8 million for exceptional and acquisition related 
items
–	 Totals $241.9 million adjusted profit before tax 
–	 Materiality of $12 million (c.5.0% of adjusted profit before tax)
During the course of our audit, we reassessed initial materiality noting that there was an increase compared with 
the original assessment attributable to the performance and profit before tax of the Group. The underlying basis 
of materiality was not changed compared with the planning stage.
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to 
an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements 
exceeds materiality.
On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, 
our judgement was that performance materiality was 75% (2023: 50%) of our planning materiality, namely $9.0 
million (2023: $5.0 million). We have set performance materiality at this percentage due to our assessment of the 
control environment and lower likelihood of misstatements. We set our performance materiality at 50% in the 
prior year due to it being the first year for which we performed the audit.
Audit work was undertaken at component locations for the purpose of responding to the assessed risks of 
material misstatement of the group financial statements. The performance materiality set for each component 
is based on the relative scale and risk of the component to the Group as a whole and our assessment of the 
risk of misstatement at that component. In the current year, the range of performance materiality allocated to 
components was $1.6 million to $2.5 million (2023: $1.0 million to $1.8 million).
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in 
excess of $0.6 million (2023: $0.5 million), which is set at 5% of planning materiality, as well as differences 
below that threshold that, in our view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed 
above and in light of other relevant qualitative considerations in forming our opinion.
Other information 
The other information comprises the information included in the annual report on pages 1 to 110, including 
taskforce on climate-related financial disclosures report, Group structure and five-year summary set out on 
pages 182 to 207, other than the financial statements and our auditor’s report thereon. The directors are 
responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent 
otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.
Independent auditor’s report to the members of Coats Group plc cont.
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Coats Group plc Annual Report and Accounts 2024
Independent auditor’s report to the members of Coats Group plc cont.
Our responsibility is to read the other information and, in doing so, consider whether the other information 
is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit 
or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent 
material misstatements, we are required to determine whether this gives rise to a material misstatement in 
the financial statements themselves. If, based on the work we have performed, we conclude that there is a 
material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in 
accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
–	 the information given in the strategic report and the directors’ report for the financial year for which the 
financial statements are prepared is consistent with the financial statements; and
–	 the strategic report and the directors’ report have been prepared in accordance with applicable  
legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the parent company and its environment 
obtained in the course of the audit, we have not identified material misstatements in the strategic report or 
the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 
requires us to report to you if, in our opinion:
–	 adequate accounting records have not been kept by the parent company, or returns adequate for our 
audit have not been received from branches not visited by us; or
–	 the parent company financial statements and the part of the Directors’ Remuneration Report to be 
audited are not in agreement with the accounting records and returns; or
–	 certain disclosures of directors’ remuneration specified by law are not made; or
–	 we have not received all the information and explanations we require for our audit.
Corporate Governance Statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of 
the Corporate Governance Statement relating to the Group and company’s compliance with the provisions of 
the UK Corporate Governance Code specified for our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements 
of the Corporate Governance Statement is materially consistent with the financial statements or our 
knowledge obtained during the audit:
–	 Directors’ statement with regards to the appropriateness of adopting the going concern basis of 
accounting and any material uncertainties identified set out on page 106;
–	 Directors’ explanation as to its assessment of the company’s prospects, the period this assessment 
covers and why the period is appropriate set out on page 106;
–	 Director’s statement on whether it has a reasonable expectation that the group will be able to continue in 
operation and meets its liabilities set out on page 57 and 106;
–	 Directors’ statement on fair, balanced and understandable set out on page 79;
–	 Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set 
out on page 50;
–	 The section of the annual report that describes the review of effectiveness of risk management and 
internal control systems set out on page 80; and
–	 The section describing the work of the audit committee set out on page 77.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 110, the directors are 
responsible for the preparation of the financial statements and for being satisfied that they give a true and 
fair view, and for such internal control as the directors determine is necessary to enable the preparation of 
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group and parent 
company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern 
and using the going concern basis of accounting unless the directors either intend to liquidate the Group or 
the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole 
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that 
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an 
audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. 
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, 
they could reasonably be expected to influence the economic decisions of users taken on the basis of these 
financial statements.
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Coats Group plc Annual Report and Accounts 2024
Independent auditor’s report to the members of Coats Group plc cont.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud 
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design 
procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of 
not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from 
error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, 
or through collusion. The extent to which our procedures are capable of detecting irregularities, including 
fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged 
with governance of the company and management.
–	 We obtained an understanding of the legal and regulatory frameworks that are applicable to the group 
and determined that the most significant are frameworks which are directly relevant to specific assertions 
in the financial statements are those that relate to the reporting framework (United Kingdom adopted 
international accounting standards, United Kingdom GAAP, the Companies Act 2006 and the UK 
Corporate Governance Code) and the relevant tax laws and regulations in the jurisdictions in which the 
Group operates. In addition, we concluded that there are certain significant laws and regulations which 
may have an effect on the determination of the amounts and disclosures in the financial statements being 
the Listing Rules of the UK Listing Authority, and those laws and regulations relating to health and safety, 
employees, environmental and bribery and corruption practices.
–	 We understood how Coats Group plc is complying with those frameworks by making enquiries of 
management, internal audit, those responsible for legal and compliance procedures and the company 
secretary. We corroborated our enquiries through our review of board minutes, papers provided to 
the Audit Committee, correspondence received from regulatory bodies and information relating to the 
Group’s anti-money laundering procedures as part of our walkthrough procedures.
–	 We assessed the susceptibility of the Group’s financial statements to material misstatement, including 
how fraud might occur by and met with finance and operational management from various parts of 
the business to understand where it considered there was susceptibility to fraud. We also considered 
performance targets and their potential to influence management to manage earnings or influence the 
perceptions of analysts. We have determined there is a risk of fraud associated to revenue recognition. 
We considered the policies, processes and controls that the Group has established to address the risks 
identified, including the design of controls over revenue recognition. We also considered the controls 
that the Group has that otherwise prevent, deter and detect fraud, and how senior management monitors 
these controls. We performed audit procedures to address each identified fraud risk. These procedures 
were designed to provide reasonable assurance that the financial statements as a whole are free from 
material misstatement, due to fraud or error.
–	 Based on this understanding we designed our audit procedures to identify non-compliance with such 
laws and regulations including providing specific instructions to full scope and specific scope component 
teams and, where necessary, using our forensic and other relevant specialists. Our procedures included 
journal entry testing, with a focus on manual journal entries, consolidation journals and journal entries 
indicating large or unusual transactions using data analytics. We based this testing on our understanding 
of the business, enquiries of management, including internal audit, legal and other advisors, the 
company secretary and reading relevant reports. We performed specific searches derived from forensic 
investigations experience and leveraged our data analytics platform in performing our testing. We have 
also reviewed the whistleblowing reports issued during the year. Any instances of non-compliance with 
laws and regulations identified that might have an impact on components were communicated to the 
component audit teams and considered in our audit approach.
A further description of our responsibilities for the audit of the financial statements is located on the Financial 
Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our 
auditor’s report.
Other matters we are required to address 
–	 Following the recommendation from the Audit Committee we were appointed by the company on  
16 May 2023 to audit the financial statements for the year ending 31 December 2023 and subsequent 
financial periods.
–	 The period of total uninterrupted engagement including previous renewals and reappointments is two 
years, covering the years ended 31 December 2023 and 31 December 2024.
–	 The audit opinion is consistent with the additional report to the audit committee.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members 
those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest 
extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the 
company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Anup Sodhi
(Senior statutory auditor)
for and on behalf of Ernst & Young LLP 
Statutory Auditor 
Luton
5 March 2025
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Coats Group plc Annual Report and Accounts 2024
Year ended 31 December
Notes
2024
2023
Before 
exceptional 
and acquisition 
related  
items  
US$m
Exceptional 
and acquisition 
related  
items  
(see note 4)  
US$m
Total  
US$m
Before 
exceptional 
and acquisition 
related 
items  
US$m
Exceptional 
and acquisition 
related 
items  
(see note 4)  
US$m
Total  
US$m
Continuing operations:
Revenue
2,3
1,500.9
–
1,500.9
1,394.2
–
1,394.2
Cost of sales
(953.1)
(36.8)
(989.9)
(910.9)
(18.2)
(929.1)
Gross profit
547.8
(36.8)
511.0
483.3
(18.2)
465.1
Distribution costs
(122.3)
(1.5)
(123.8)
(115.9)
(2.6)
(118.5)
Administrative expenses
(155.9)
(31.5)
(187.4)
(134.0)
 (34.4)
(168.4)
Other operating income
–
–
–
–
5.8
5.8
Operating profit
2,4,5
269.6
(69.8)
199.8
233.4
(49.4)
184.0
Share of profits of joint ventures
16
1.9
–
1.9
1.1
–
1.1
Finance income
6
3.1
–
3.1
4.6
–
4.6
Finance costs
7
(32.7)
–
(32.7)
(33.9)
–
(33.9)
Profit before taxation
5
241.9
(69.8)
172.1
205.2
(49.4)
155.8
Taxation
9
(70.1)
(1.8)
(71.9)
(57.9)
2.9
(55.0)
Profit from continuing operations
171.8
(71.6)
100.2
147.3
(46.5)
100.8
Loss from discontinued operations            31
–
(0.5)
(0.5)
(1.3)
(25.4)
(26.7)
Profit for the year
171.8
(72.1)
99.7
146.0
(71.9)
74.1
Attributable to:
Equity shareholders of the company
152.2
(72.1)
80.1
127.8
(71.3)
56.5
Non-controlling interests
19.6
–
19.6
18.2
(0.6)
17.6
171.8
(72.1)
99.7
146.0
(71.9)
74.1
Earnings per share (cents):
11
Continuing operations:
Basic
5.03
5.18
Diluted
4.96
5.13
Continuing and discontinued operations:
Basic
4.99
3.52
Diluted
4.93
3.48
Adjusted earnings per share
36(d)
9.49
8.04
Notes on pages 128 to 178 form part of these financial statements.
Year ended 31 December 
 2024  
US$m
2023  
US$m
Profit for the year 
99.7
74.1
Items that will not be reclassified subsequently to profit or loss: 
Remeasurements of defined benefit schemes (note 10)
(225.1)
(70.8)
Tax relating to items that will not be reclassified 
(0.6)
(0.2)
(225.7)
(71.0)
Items that may be reclassified subsequently to profit or loss: 
Exchange differences on translation of foreign operations
(20.4)
(0.4)
Remeasurement of equity investment at fair value
–
(6.7)
(20.4)
(7.1)
Items reclassified to profit or loss: 
Exchange differences transferred to income statement on sale of business
–
6.6
Other comprehensive income and expense for the year 
(246.1)
(71.5)
Net comprehensive income and expense for the year 
(146.4)
2.6
Attributable to: 
Equity shareholders of the company 
(165.6)
(14.3)
Non-controlling interests 
19.2
16.9
(146.4)
2.6
Notes on pages 128 to 178 form part of these financial statements.
Consolidated income statement
Consolidated statement of comprehensive income
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Coats Group plc Annual Report and Accounts 2024
31 December 
Notes
2024  
US$m
2023  
US$m
Non-current assets:
Goodwill
13
120.4
126.1
Other intangible assets
13
443.5
470.7
Property, plant and equipment
14
226.3
243.2
Right-of-use assets
15
68.9
74.4
Investments in joint ventures
16
13.7
12.8
Other equity investments
16
0.6
0.9
Deferred tax assets
17
13.6
18.0
Pension surpluses
10
44.0
148.2
Loan receivable
10
38.3
–
Trade and other receivables
19
25.0
19.5
994.3
1,113.8
Current assets:
Inventories
18
176.1
173.5
Trade and other receivables
19
292.2
292.0
Pension surpluses
10
1.5
1.6
Cash and cash equivalents
30(g)
146.0
132.4
Non-current assets classified as held for sale
0.6
1.0
616.4
600.5
Total assets
1,610.7
1,714.3
Current liabilities:
Trade and other payables
21
(299.2)
(285.6)
Income tax liabilities
(49.5)
(45.5)
Bank overdrafts and other borrowings
23
(0.2)
(144.3)
Lease liabilities
15
(16.6)
(17.5)
Retirement benefit obligations:
– Funded schemes
10
(0.4)
(0.8)
– Unfunded schemes
10
(7.5)
(7.7)
Provisions
25
(26.5)
(17.1)
 (399.9)
(518.5)
Net current assets
216.5
82.0
31 December 
Notes
2024  
US$m
2023  
US$m
Non-current liabilities:
Trade and other payables
21
(7.4)
(3.2)
Deferred tax liabilities
24
(58.0)
(63.9)
Borrowings
23
(595.1)
(372.2)
Lease liabilities
15
(66.6)
(69.3)
Retirement benefit obligations:
– Funded schemes
10
(14.4)
(2.9)
– Unfunded schemes
10
(65.6)
(75.6)
Provisions
25
(25.1)
(19.3)
(832.2)
(606.4)
Total liabilities
(1,232.1)
(1,124.9)
Net assets
378.6
589.4
Equity:
Share capital
26
99.0
99.0
Share premium account
27
111.4
111.4
Own shares
26, 27
(5.3)
(6.1)
Translation reserve
27
(129.7)
(109.7)
Capital reduction reserve
27
59.8
59.8
Other reserves
27
246.3
246.3
Retained (loss)/profit
27
(35.4)
157.4
Equity shareholders’ funds
346.1
558.1
Non-controlling interests
27
32.5
31.3
Total equity
378.6
589.4
David Paja	
	
	
	
	
	
Jackie Callaway
Group Chief Executive	Officer	 	
Group Chief Financial Officer
Approved by the Board 5 March 2025
Company Registration No.103548
Notes on pages 128 to 178 form part of these financial statements.
Consolidated statement of financial position
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Coats Group plc Annual Report and Accounts 2024
Consolidated statement of changes in equity
Share  
capital  
US$m
Share 
premium 
account 
US$m
Own  
shares  
US$m
Translation 
reserve 
US$m
Capital 
reduction 
reserve 
US$m
Other 
reserves 
US$m
Retained 
(loss)/  
profit  
US$m
Total  
US$m
Non-
controlling 
interests 
US$m
Total  
equity  
US$m
Balance as at
1 January 2023
99.0
111.4
(0.1)
(116.6)
59.8
246.3
216.7
616.5
34.1
650.6
Profit for the year
–
–
–
–
–
–
56.5
56.5
17.6
74.1
Other comprehensive 
income and expense 
for the year
–
–
–
6.9
–
–
(77.7)
(70.8)
(0.7)
(71.5)
Dividends 
–
–
–
–
–
–
(40.6)
(40.6)
(19.7)
(60.3)
Purchase of own 
shares by Employee 
Benefit Trust
–
–
(10.1)
–
–
–
–
(10.1)
–
(10.1)
Movement in 
own shares
–
–
4.1
–
–
–
(4.5)
(0.4)
–
(0.4)
Share based payments
–
–
–
–
–
–
7.0
7.0
–
7.0
Balance as at 
31 December 2023
99.0
111.4
(6.1)
(109.7)
59.8
246.3
157.4
558.1
31.3
589.4
Profit for the year
–
–
–
–
–
–
80.1
80.1
19.6
99.7
Other comprehensive 
income and expense  
for the year
–
–
–
(20.0)
–
–
(225.7)
(245.7)
(0.4)
(246.1)
Dividends  
(see notes 12 and 27)
–
–
–
–
–
–
(46.5)
(46.5)
(18.0)
(64.5)
Purchase of own 
shares by Employee 
Benefit Trust
–
–
(8.7)
–
–
–
–
(8.7)
–
(8.7)
Movement in 
own shares
–
–
9.5
–
–
–
(8.6)
0.9
–
0.9
Share based payments
–
–
–
–
–
–
7.9
7.9
–
7.9
Balance as at 
31 December 2024
99.0
111.4
(5.3)
(129.7)
59.8
246.3
(35.4)
346.1
32.5
378.6
Notes on pages 128 to 178 form part of these financial statements.
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Coats Group plc Annual Report and Accounts 2024
Consolidated statement of cash flows
Year ended 31 December
Notes
2024  
US$m
2023  
US$m
Net increase/(decrease) in cash and cash equivalents
38.1
(43.4)
Net cash and cash equivalents at beginning of the year
111.5
157.7
Foreign exchange losses on cash and cash equivalents 
(3.8)
(2.8)
Net cash and cash equivalents at end of the year
30(g)
145.8
111.5
Reconciliation of net cash flow to movements in net debt
Net increase/(decrease) in cash and cash equivalents
38.1
(43.4)
Repayment of term loan acquisition facility
30(g)
–
240.0
Issue of senior notes
30(g)
(248.7)
(248.6)
Repayment of senior notes
30(g)
125.0
–
Net decrease in other borrowings
28.0
67.0
Change in net debt resulting from cash flows (free cash flow)
36(e)
(57.6)
15.0
Net movement in lease liabilities during the year 
1.0
17.5
Movement in fair value hedges
(1.6)
(1.2)
Other non-cash movements
(2.2)
(1.5)
Foreign exchange losses
(1.2)
(0.9)
(Increase)/decrease in net debt
(61.6)
28.9
Net debt at the start of the year
(470.9)
(499.8)
Net debt at the end of the year
30(g)
(532.5)
(470.9)
Notes on pages 128 to 178 form part of these financial statements.
Year ended 31 December
Notes
2024  
US$m
2023  
US$m
Cash inflow from operating activities:
Cash generated from operations 
30(a)
196.7
217.3
Interest paid
30(b)
(31.5)
(33.7)
Taxation paid
30(c)
(69.4)
(59.7)
Net cash generated by operating activities
95.8
123.9
Cash outflow from investing activities:
Investment income
30(d)
1.0
0.6
Net capital expenditure and financial investment
30(e)
(24.0)
(19.7)
Disposals of businesses
30(f)
–
(1.2)
Loan made to UK pension Scheme
30(a)
(38.3)
–
Net cash absorbed in investing activities
(61.3)
(20.3)
Cash inflow/(outflow) from financing activities:
Purchase of own shares by Employee Benefit Trust
(8.7)
(10.1)
Dividends paid to equity shareholders
(46.2)
(40.3)
Dividends paid to non-controlling interests
(18.0)
(19.7)
Payment of lease liabilities
(19.2)
(18.5)
Repayment of term loan acquisition facility
30(g)
–
(240.0)
Issue of senior notes
30(g)
248.7
248.6
Repayment of senior notes
30(g)
(125.0)
–
Net decrease in other borrowings
(28.0)
(67.0)
Net cash generated from/(absorbed in) financing activities
3.6
(147.0)
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Coats Group plc Annual Report and Accounts 2024
1 Principal accounting policies
The following are the principal accounting policies adopted in preparing the financial statements.
Critical accounting judgements and key sources of estimation uncertainty
The principal accounting policies adopted by the Group are set out in this note to the consolidated financial 
statements. Certain of the Group’s accounting policies inherently rely on subjective assumptions and judgements, 
such that it is possible over time the actual results could differ from the estimates based on the assumptions 
and judgements used by the Group. Due to the size of the amounts involved, changes in the assumptions 
relating to the following policies could potentially have a significant impact on the result for the year and/or the 
carrying values of assets and liabilities in the consolidated financial statements.
Critical judgements in applying the Group’s accounting policies
In the course of preparing the financial statements, the critical judgement set out below has had a significant 
effect on the amounts recognised in the financial statements for the year ended 31 December 2024. 
Exceptional and acquisition related items
Judgement is used to determine those items which should be separately disclosed as exceptional and acquisition 
related items to provide valuable additional information for users of the financial statements in understanding 
the Group’s performance. This judgement includes assessment of whether an item is of sufficient size or of a 
nature that is not consistent with normal trading activities. Please see note 4 for further details.
This critical accounting judgement made by management in applying the Group’s accounting policies also 
applied to the consolidated financial statements for the year ended 31 December 2023.
In addition, in the course of preparing the financial statements for the year ended 31 December 2023, critical 
accounting judgements were made by management in relation to the recognition of the surplus in the UK 
pension scheme and discontinued operations. These were not critical accounting judgements which had a 
significant effect on the amounts recognised in the financial statements for the year ended 31 December 2024.
Discontinued operations 
In management’s judgement the European Zips business which was sold in August 2023 represented a separate 
major line of business and therefore its results for 2023 were presented as a discontinued operation.
Judgement is used by the Group in assessing whether a disposal of a business represents a disposal of a 
separate major line of business considering the facts and circumstances of each disposal. In determining 
whether a disposal represents a separate major line of business, the Group considers both quantitative and 
qualitative factors.
If the Group had concluded that the disposal of the European Zips business did not represent a discontinued 
operation, the Group’s revenue and operating profit before exceptional and acquisition related items from 
continuing operations for the year ended 31 December 2023 would have been $1,419.5 million and $232.1 
million respectively.
Key sources of estimation uncertainty
There are no sources of estimation uncertainty at the 31 December 2024 balance sheet date, that may have a 
significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next 
financial year. 
At 31 December 2023 key assumptions were made in the determination of UK pension scheme defined benefit 
obligations which represented a key source of estimation uncertainty. These key assumptions were discount 
rates, beneficiary mortality and inflation rates. Changes in any or all of these assumptions could have materially 
changed scheme liabilities. However, as set out in note 10, as a result of buy-ins, all the financial and demographic 
risks relating to the UK pension scheme’s liabilities are fully hedged at 31 December 2024. Future changes in 
scheme liabilities due to movements in discount and inflation rates would have fully offsetting impacts from the 
buy-in assets. Accordingly, the net UK pension amount recognised in the consolidated statement of financial 
position will not change in the future as a result of changes in any or all of these assumptions.
Other areas of estimation uncertainty
Other areas of estimation uncertainty include the assumptions used in determining the value in use for the US 
and Mexico cash generating unit (“CGU”). A change in key revenue and margin growth assumptions could result 
in a change in the assessed recoverable amount of the CGU. The impact of sensitivities on key assumptions 
are set out in note 13. 
Notes to the financial statements
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Discontinued operations
On 30 June 2023 the Group entered into an agreement to sell its European Zips business to Aequita, a German 
family office. The sale was completed on 31 August 2023, the date which control passed to the acquirer. 
The exit from the European Zips business was in line with Coats’ previously announced strategic initiatives to 
optimise the Group’s portfolio and footprint, and improve the overall cost base efficiency. The results of the 
European Zips business were presented as a discontinued operation in the consolidated income statement for 
the year ended 31 December 2023. Note 31 provides further details of the sale.
Joint ventures
Joint ventures are entities in which the Group has joint control, shared with a party outside the Group. 
The Group reports its interests in joint ventures using the equity method.
Going concern
The Directors are satisfied that the Group and the Company has sufficient resources to continue in operation 
for the period from the date of this report to 30 June 2026. Accordingly, they continue to adopt the going 
concern basis in preparing the consolidated financial statements. In assessing the Group’s going concern 
position, the Directors have considered a number of factors, including the current balance sheet position and 
available liquidity, the current trading performance as set out in the Full Year Results Overview section of the 
Chief Executive’s Review included in the 2024 Annual Report, the principal and emerging risks which could 
impact the performance of the Group and compliance with borrowing covenants. 
In order to assess the going concern status of the Group management has prepared:
–	 A base case scenario, aligned to the latest Group budget for 2025 as well as the Group’s updated Medium 
Term Plan for 2026; 
–	 A downside scenario has been prepared, which assumes that the global economic environment is depressed 
over the assessment period. This scenario assumes trading below 2024 levels, this scenario is considered to 
be severe but plausible given the current uncertain global macro-economic and geo-political environment; 
and
–	 A reverse stress test flexing sales to determine what circumstance would be required to either reduce 
headroom to nil on committed borrowing facilities or breach borrowing covenants, whichever occurred first. 
As more fully described in the Outlook section on page 8, the Directors anticipate, based on current market 
conditions and normalised customer buying behaviour, another year of financial and strategic progress in 2025, 
in line with market expectations. The severe but plausible downside scenario includes further management 
actions that would be deployed if required (for example further reduction in costs). 
a) Accounting convention and format 
The Group’s financial statements for the year ended 31 December 2024 have been prepared in accordance 
with United Kingdom adopted international accounting standards and with the requirements of the Companies 
Act 2006, and complies with the disclosure requirements of the Listing Rules of the UK Financial Conduct 
Authority. The financial statements are prepared under the historical cost convention except for investments 
and derivatives which are stated at fair value and retirement benefit obligations which are valued in accordance 
with IAS 19 Employee Benefits.
Except for the changes arising from the adoption of new accounting standards, interpretations and amendments 
(as detailed in note 1), the same accounting policies, presentation and methods of computation have been 
followed in these consolidated financial statements as applied in the Group’s annual financial statements for 
the year ended 31 December 2023.
b) Basis of preparation
Subsidiaries
Subsidiaries are consolidated from the effective date of acquisition or up to the effective date of disposal, 
as appropriate. The effective date is when control passes to or from the Group. Control is achieved when 
the Group has the power over the investee and is exposed, or has the rights to variable returns from its 
involvement with the investee and has the ability to use its power to affect its returns. The existence and 
effect of potential voting rights that are currently exercisable or convertible are considered in determining 
the existence or otherwise of control. Where necessary, adjustments are made to the financial statements 
of subsidiaries to align their accounting policies with those used by the Group.
Where subsidiaries are not 100% owned by the Group, the share attributable to outside shareholders is reflected 
in non-controlling interests. Non-controlling interests are identified separately from the Group’s equity, and 
may initially be measured at either fair value or at the non-controlling interests’ share of the fair value of the 
subsidiary’s identifiable net assets. The choice of measurement is made on an acquisition-by-acquisition basis. 
Changes in the Group’s interests in subsidiaries, that do not result in a loss of control, are accounted for as equity 
transactions. Where control is lost, a gain or loss on disposal is recognised through the consolidated income 
statement, calculated as the difference between the fair value of consideration received (plus the fair value of 
any retained interest) and the Group’s previous share of the former subsidiary’s net assets. Amounts previously 
recognised in other comprehensive income in relation to that subsidiary are reclassified and recognised through 
the income statement as part of the gain or loss on disposal.
1 Principal accounting policies cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
c) Functional currency
The functional currency of Coats Group plc the company continued to be United States dollars (USD) during 
the year ended 31 December 2024.
d) Foreign currencies
Foreign currency translation
The Group’s presentation currency is USD. Transactions of companies within the Group are recorded in the 
functional currency of that company. Currencies other than the functional currency are foreign currencies. 
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary 
assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the 
period end. All currency differences on monetary items are taken to the consolidated income statement with 
the exception of currency differences that represent a net investment in a foreign operation, which are taken 
directly to equity until disposal of the net investment, at which time they are recycled through the consolidated 
income statement. Non-monetary items that are measured in terms of historical cost in a foreign currency are 
translated using the exchange rate as at the date of initial transaction.
Group companies
Assets and liabilities of subsidiaries whose functional currency is not USD are translated into the Group’s 
presentation currency at the rates of exchange ruling at the period end and their income statements are 
translated at the average exchange rates for the year. 
The exchange differences arising on the retranslation since 1 January 2004 are taken to a separate component 
of equity. On disposal of such an entity, the deferred cumulative amount recognised in equity since 1 January 
2004 relating to that particular operation is recycled through the consolidated income statement. Translation 
differences that arose before the date of transition to IFRS in respect of all such entities are not presented as 
a separate component of equity.
Goodwill and fair value adjustments arising on acquisition of such operations are regarded as assets and 
liabilities of the particular operation, expressed in the currency of the operation and recorded at the exchange 
rate at the date of the transaction and subsequently retranslated at the applicable closing rates.
The reverse stress test noted an implausible decrease in trading performance, with revenues almost 30% 
below the base case, would be required. The test also includes further controllable management actions that 
could be deployed if required (for example no bonus payments, reduced discretionary costs and significantly 
reduced capital expenditure). The outcome of the reverse stress test was that the leverage covenant would be 
breached, however, at the breaking point in the test the Group still maintained sufficient liquidity on committed 
borrowing facilities. The Directors consider the likelihood of the condition in the reverse stress test occurring 
to be remote on the basis that the Group has not experienced such a decline historically.
Liquidity headroom
As at 31 December 2024 the Group’s net debt (excluding IFRS 16 leases liabilities) was $449.3 million (2023: 
$384.1 million). The Group’s committed debt facilities total $1,020 million across its Banking and US Private 
Placement group, with a range of maturities from August 2027 through to 2034. As of 31 December 2024 the 
Group had around $420 million of headroom against these committed banking facilities. In each scenario 
liquidity headroom exists throughout the assessment period.
Covenant testing
The Group’s committed borrowing facilities are subject to ongoing covenant testing. Covenants are measured 
twice a year, at full year and half year on a twelve month rolling basis and are measured under frozen accounting 
standards and therefore exclude the effects of IFRS 16. The financial covenants under the borrowing agreements 
are for leverage (net debt / EBITDA) to be less than 3.0 and interest cover (EBITDA / interest charge) to be in 
excess of 4.0. All banking covenants tests were met at 31 December 2024, with leverage of 1.6x and interest 
cover of 11.4x. The base case forecast indicates that banking covenants will be met throughout the assessment 
period. Under the severe but plausible downside scenario covenant compliance is still projected to be achieved 
throughout the assessment period.
Conclusion
In conclusion, after reviewing the base case, the severe but plausible downside scenario and considering the 
remote likelihood of the scenario in the reverse stress test occurring, the Directors have formed the judgement 
that, at the time of approving the consolidated financial statements, there are no material uncertainties that 
cast doubt on the Group’s and the Company’s going concern status and that it is appropriate to prepare the 
consolidated financial statements on the going concern basis for the period from the date of this report to 
30 June 2026.
1 Principal accounting policies cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
g) Exceptional and acquisition related items
The Group has adopted an income statement format which seeks to highlight significant items within the 
Group results for the year. Exceptional items may include significant restructuring associated with a business or 
property disposal, litigation costs and settlements, profit or loss on disposal of property, plant and equipment, 
non-actuarial gains or losses arising from significant one-off changes to defined benefit pension obligations, 
regulatory investigation costs and impairment of assets. Acquisition related items include amortisation of 
acquired intangible assets, acquisition transaction costs, contingent consideration linked to employment and 
adjustments to contingent consideration. Please see note 4 for further details on why management consider 
these items to be exceptional.
Judgement is used by the Group in assessing the particular items, which by virtue of their scale and nature, should 
be presented in the income statement and disclosed in the related notes as exceptional items. In determining 
whether an event or transaction is exceptional, materiality is a key consideration and qualitative factors, such 
as frequency or predictability of occurrence, are also considered. This is consistent with the way financial 
performance is measured by management and reported to the Board.
h) Property, plant and equipment
Owned assets
Items of property, plant and equipment are stated at cost less accumulated depreciation and any accumulated 
impairments.
Subsequent expenditure
Expenditure incurred to replace a component of an item of property, plant and equipment that is accounted for 
separately, including major inspection and overhaul expenditure, is capitalised. Other subsequent expenditure 
is capitalised only when it increases the future economic benefits embodied in the item of property, plant and 
equipment. All other expenditure is recognised in the income statement as an expense as incurred.
The principal exchange rates (to the US dollar) used in preparing these financial statements are as follows:
2024
2023
Average
Sterling 
0.78
0.80
Euro
0.92
0.92
Chinese Renminbi 
7.20
7.08
Indian Rupee
83.66
82.56
Turkish Lira*
32.82
23.79
Period end
Sterling
0.80
0.79
Euro
0.97
0.91
Chinese Renminbi 
7.30
7.10
Indian Rupee
85.55
83.19
Turkish Lira
35.34
29.48
* Cumulative inflation rates over a three-year period exceeded 100% in Turkey in May 2022 and since then Turkey is considered as hyperinflationary. 
As a result, IAS 29 “Financial Reporting in Hyperinflationary Economies” has been applied. In accordance with IAS 29, the financial statements 
of the Company’s subsidiary in Turkey are translated into the Group’s US Dollar presentational currency at the year end exchange rate. Monetary 
assets and liabilities are not restated. All non-monetary items recorded at historical rates are restated for the change in purchasing power caused 
by inflation from the date of initial recognition to the year end balance sheet date. The income statement of the Company’s subsidiary in Turkey is 
adjusted for inflation during the reporting period. A net monetary gain of $0.3 million for the year ended 31 December 2024 (2023: $2.3 million) was 
recognised within finance income on non-monetary items held in Turkish Lira. The inflation rate used is the consumer price index published by the 
Turkish Statistical Institute, TurkStat. The movement in the price index for the year ended 31 December 2024 was 44% (2023: 65%).
e) Operating segments
Operating segments are components of the Group about which separate financial information is available 
that is evaluated by the Coats Group plc Group Executive Team in deciding how to allocate resources and 
in assessing performance. See note 2 for further details.
f) Operating profit
Operating profit is stated before the share of results of joint ventures, investment and interest income, finance 
costs and foreign exchange gains and losses from financing activities.
1 Principal accounting policies cont.
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Notes to the financial statements cont.
Goodwill is allocated to cash-generating units (CGUs) for the purpose of impairment testing. CGUs represent 
the smallest group of assets that generate cash inflows that are largely independent of the cash inflows from 
other assets or groups of assets.
Negative goodwill is recognised immediately in the income statement.
Intangible assets acquired in a business combination
Intangible assets acquired in a business combination and recognised separately from goodwill are initially 
recognised at their fair value at the acquisition date (which is regarded as their cost).
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost 
less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets 
that are acquired separately.
The estimated useful lives (other than Coats Brand) are as follows:
Brands and trade names
5 years to 20 years
Technology
4 years to 10 years
Customer relationships
9 years to 15 years
The useful life of the Coats Brand is considered to be indefinite.
Other intangibles
Acquired computer software licences and computer software development costs are capitalised on the basis 
of the costs incurred to acquire and bring to use the specific software and are amortised over their estimated 
useful lives of up to 5 years.
Intellectual property, comprising trademarks, designs, patents and product development which have a 
finite useful life, are carried at cost less accumulated amortisation and impairment charges. Amortisation is 
calculated using the straight-line method to allocate the cost over the assets’ useful lives, which vary from 
5 to 10 years.
The amortisation charge for both acquired and other intangibles assets is included within the distribution costs 
and administrative expense lines in the consolidated income statement.
Impairment of property, plant and equipment, right-of-use assets and intangible assets excluding goodwill
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. 
Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes 
in circumstances indicate that the carrying amount may not be recoverable.
Depreciation
Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of 
property, plant and equipment, and major components that are accounted for separately. Land is not depreciated. 
The estimated useful lives are as follows:
Freehold buildings
50 years to 100 years
Leasehold improvements
10 years to 50 years or over the term of the lease if shorter
Plant and equipment
3 years to 20 years
Vehicles and office equipment
2 years to 10 years
Assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each period end. 
i) Business combinations and Intangible assets
Business combinations
Acquisitions of businesses are accounted for using the acquisition method. The cost of an acquisition is measured 
as the aggregate of the consideration transferred, which is measured at acquisition date fair value. Acquisition-
related costs are recognised in the consolidated income statement, as incurred, in operating costs.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the 
combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. 
Those provisional amounts are adjusted during the measurement period (see below), or additional assets or 
liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of 
the acquisition date that, if known, would have affected the amounts recognised as of that date. 
The measurement period is the period from the date of acquisition to the date the Group obtains complete 
information about facts and circumstances that existed as of the acquisition date and is subject to a maximum 
of one year.
Goodwill
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any 
non‑controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest 
in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the 
liabilities assumed. Goodwill is recognised as an asset and tested for impairment at least annually. Any impairment 
is recognised immediately in the income statement. On disposal of a subsidiary, the attributable amount of 
goodwill is included in the determination of the profit or loss on disposal.
1 Principal accounting policies cont.
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Notes to the financial statements cont.
The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use 
asset) whenever: 
–	 the lease term has changed or there is a change in the assessment of exercise of a purchase option, in 
which case the lease liability is remeasured by discounting the revised lease payments using a revised 
discount rate; 
–	 the lease payments change due to changes in an index or rate or a change in expected payment under a 
guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease 
payments using the initial discount rate (unless the lease payments change is due to a change in a floating 
interest rate, in which case a revised discount rate is used); and 
–	 a lease contract is modified and the lease modification is not accounted for as a separate lease, in 
which case the lease liability is remeasured by discounting the revised lease payments using a revised 
discount rate.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments 
made at or before the commencement day and any initial direct costs. They are subsequently measured at cost 
less accumulated depreciation and impairment losses. 
Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site 
on which it is located or restore the underlying asset to the condition required by the terms and conditions 
of the lease, a provision is recognised and measured under IAS 37 ‘Provisions, Contingent Liabilities and 
Contingent Assets’. The costs are included in the related right-of-use asset, unless those costs are incurred to  
produce inventories.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying 
asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that 
the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful 
life of the underlying asset. The depreciation starts at the commencement date of the lease. 
Variable rents that do not depend on an index are not included in the measurement of the lease liability and 
the right-of-use asset. The related payments are recognised as an expense in the period in which the event or 
condition that triggers those payments occurs.
k) Financial instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual 
provisions of the relevant financial instrument.
An impairment charge is recognised for the amount by which the asset’s carrying amount exceeds its recoverable 
amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. 
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific to 
the asset for which the estimates of future cash flows have not been adjusted. For the purposes of assessing 
impairment, assets are measured at the CGU level.
Research and development
All research costs are expensed as incurred.
An internally-generated intangible asset arising from development is recognised only if all of the following 
conditions are met:
–	 an asset is created that can be separately identified;
–	 it is probable that the asset created will generate future economic benefits; and
–	 the development costs can be measured reliably.
Internally-generated intangible assets are amortised on a straight-line basis over their useful lives.
Where no internally-generated intangible asset can be recognised, development expenditure is recognised as 
an expense in the period in which it is incurred.
j) Leases
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises 
a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the 
lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of 
low value assets (defined as assets with a value of US$5,000 or less when new). For these leases, the Group 
recognises the lease payments as an operating expense on a straight-line basis over the term of the lease 
unless another systematic basis is more representative of the time pattern in which economic benefits from the 
leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the 
commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, 
the Group uses its incremental borrowing rate.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the 
lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease 
payments made.
1 Principal accounting policies cont.
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Notes to the financial statements cont.
(iii) Compound instruments
The component parts of compound instruments are classified separately as financial liabilities and equity 
in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability 
component is estimated using the prevailing market interest rate for a similar non-convertible instrument, and 
this amount is recorded as a liability at amortised cost. The equity component is the fair value of the compound 
instrument as a whole less the amount of the liability component, and is recognised in equity, net of income tax 
effect, without subsequent remeasurement.
(iv) Derivative financial instruments and hedge accounting
The Group’s activities expose it to the financial risks of changes in foreign exchange rates and interest rates.
The use of financial derivatives is regulated by the Board or that of the relevant operating subsidiary in accordance 
with their respective risk management strategies. Changes in values of all derivatives of a financing nature are 
included within finance costs in the income statement.
Derivative financial instruments are initially measured at fair value at contract date and are remeasured at each 
reporting date.
The Group designates hedging instruments as either fair value hedges, cash flow hedges or hedges of 
net investments in foreign operations. Hedges of interest rate risk are accounted for as fair value or cash 
flow hedges.
At the inception of each hedge transaction the issuing entity documents the relationship between the hedging 
instrument and the hedged item and the anticipated effectiveness of the hedge transaction, and monitors the 
ongoing effectiveness over the period of the hedge. Hedge accounting is discontinued when the issuing entity 
revokes the hedging relationship, the hedge instrument expires, is sold, exercised or otherwise terminated, and 
the adjustment to the carrying amount of the hedged item arising from the hedged risk is amortised through 
the income statement from that date. 
(v) Fair value hedges
Changes in the fair values of derivatives that are designated and qualify as fair value hedges are recognised 
immediately through the income statement, together with any changes in the fair value of the related hedged 
items due to changes in the hedged risks. On discontinuation of the hedge the adjustment to the carrying amount 
of the hedged item arising from the hedged risk is amortised through the consolidated income statement from 
that date.
Financial assets
(i) Investments in equity securities
Investments in equity securities are recognised and derecognised on a trade date basis and are initially 
measured at fair value, plus directly attributable transaction costs and are remeasured at subsequent reporting 
dates at fair value, with movements recorded in other comprehensive income. Listed investments are stated at 
market value. Unlisted investments are stated at fair value based on directors’ valuation, which is supported by 
external experts’ advice or other external evidence.
(ii) Cash and cash equivalents 
Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-
term deposits maturing in less than three months. For the purposes of the statement of cash flows, cash and 
cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
(iii) Trade and other receivables
Trade receivables are recognised at fair value (which ordinarily reflects the invoice amount) and carried at 
amortised cost, less an allowance for expected lifetime losses as permitted under the simplified approach 
in IFRS 9. Fully provided balances are not written off from the balance sheet until the Group has decided to 
cease enforcement activity.
Financial liabilities
(i) Trade payables
Trade payables are not interest-bearing and are recognised at fair value, and measured subsequently at 
amortised cost.
(ii) Borrowings
Interest-bearing loans and overdrafts are initially measured at fair value, net of direct issue costs. These financial 
liabilities are subsequently measured at amortised cost using the effective interest method, with interest 
expense recognised over the period of the relevant liabilities. Financial liabilities designated as hedged items 
in a fair value hedge are subsequently measured at fair value.
1 Principal accounting policies cont.
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Notes to the financial statements cont.
m) Inventories
Inventories are valued at the lower of cost and net realisable value. Costs incurred in bringing each product to 
its present location and condition are accounted for as follows:
Raw materials are valued at cost on a first-in, first-out basis.
The costs of finished goods and work in progress include direct materials and labour and a proportion of 
manufacturing overheads based on normal operating capacity but excluding borrowing costs. Net realisable 
value is the estimated selling price in the ordinary course of business, less estimated costs of completion 
and the estimated costs necessary to make the sale. Provision is made for obsolete, slow-moving and 
defective inventories.
n) Employee benefits
(i) Retirement and other post-employment obligations
For retirement and other post-employment benefit obligations, the cost of providing benefits is determined 
using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each reporting 
period by independent actuaries.
Remeasurement comprising actuarial gains and losses, the effect of the asset ceiling (if applicable) and the 
return on scheme assets (excluding interest) are recognised immediately in the consolidated statement of 
financial position with a charge or credit to the consolidated statement of comprehensive income in the period 
in which they occur. Remeasurement recorded in the consolidated statement of comprehensive income is 
not recycled.
Current and past service costs, along with the impact of any settlements or curtailments, are charged to 
the consolidated income statement. The net interest expense on pension plans’ liabilities and the expected 
return on the plans’ assets is recognised within finance expense in the consolidated income statement.
In addition, pension scheme administrative expenses including the Pension Protection Fund (PPF) levy and 
actuary, audit, legal and trustee charges are recognised as administrative expenses.
The retirement benefit and other post-employment benefit obligation recognised in the consolidated statement 
of financial position represents the deficit or surplus in the Group’s defined benefit schemes. Any surplus resulting 
from this calculation is limited to the present value of any economic benefits available in the form of refunds 
from the schemes (net of taxes) or reductions in future contributions to the schemes and refunds expected 
from the schemes to fund other Group defined benefit schemes, in accordance with relevant legislation.
For defined contribution plans, the Group pays contributions to publicly or privately administered pension 
plans on a mandatory, contractual or voluntary basis. The contributions are recognised as employee benefit 
expenses when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund 
or a reduction in the future payments is available.
(vi) Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges 
is deferred in equity. Once the related hedged item is recognised in the income statement, the amounts deferred 
in equity are recycled through the consolidated income statement. The gain or loss arising from any ineffective 
portion of the hedge is recognised immediately through the consolidated income statement.
(vii) Hedges of net investments in foreign operations
Gains and losses on hedging instruments relating to the effective portion of such hedges are recognised 
through the translation reserve, and recycled through the consolidated income statement on disposal of 
the respective foreign operations. The gain or loss arising from any ineffective portion of such hedges is 
recognised immediately through the consolidated income statement. 
l) Revenue
Revenue comprises the fair value of the sale of goods and services, net of sales tax and discounts and rebates, 
and after eliminating sales within the Group. Revenue is recognised as follows:
(i) Sales of goods
Sales of goods are recognised in revenue at a single point in time when control of the goods has been 
transferred to the buyer. The point in time at which control is deemed to have transferred varies depending on 
the commercial terms agreed with the buyer.
(ii) Sales of services
Sales of services are recognised in the period in which the services are rendered, as follows:
–	 Software implementation and licensing income – performance obligations are satisfied over a period of time 
and therefore revenue is recognised by reference to the stage of completion at the period end. The Group 
uses labour hours expended to assess the stage of completion as it is deemed to be the most appropriate 
basis to measure progress.
–	 Maintenance income – performance obligations are satisfied evenly over a fixed period of time and therefore 
revenue is recognised on a straight line basis over the maintenance period.
Advances received from customers are included within contract liabilities.
(iii) Income from sales of property
Income from sales of property is recognised on completion when legal title of the property passes to the buyer.
 
1 Principal accounting policies cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
o) Taxation
The tax expense represents the sum of the current tax and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported 
in the consolidated income statement because it excludes items of income and expense that are taxable or 
deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability 
for current tax is calculated using tax rates that have been enacted by the period end.
Deferred tax is provided using the liability method, providing for temporary differences between the 
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation 
purposes. Deferred taxation is measured on a non-discounted basis. The following temporary differences are 
not provided for: goodwill not deducted for tax purposes, the initial recognition of assets or liabilities that affect 
neither accounting, nor taxable profit, and differences relating to investments in subsidiaries to the extent that 
they will probably not reverse in the foreseeable future.
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the 
carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the period end. A 
deferred tax asset is recognised only to the extent that it is probable that future profits will be available against 
which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that 
the related tax benefit will be realised. Deferred tax liabilities are recognised for taxable temporary differences 
arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group 
is able to control the reversal of the temporary difference and it is probable that the temporary difference 
will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences 
associated with such investments and interests are only recognised to the extent that it is probable that there 
will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are 
expected to reverse in the foreseeable future.
The carrying values of deferred tax assets are reviewed at each period end.
Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited 
directly to other comprehensive income or equity, in which case the deferred tax is also dealt with in other 
comprehensive income or equity.
p) Government grants 
Government grants are not recognised until there is reasonable assurance that the Group will comply with the 
conditions attaching to them and that the grants will be received. Government grants are recognised in profit 
or loss on a systematic basis over the periods in which the Group recognises as expenses the related costs for 
which the grants are intended to compensate. 
Government grants that are receivable as compensation for expenses or losses already incurred or for the 
purpose of giving immediate financial support to the Group with no future related costs are recognised in profit 
or loss in the period in which they become receivable.
(ii) Share-based compensation
Cash-settled 
Cash-settled share-based payments are measured at fair value (excluding the effect of non-market-based 
vesting conditions) at each reporting date. The fair value is expensed on a straight-line basis over the vesting 
period, with a corresponding increase in liabilities. 
Equity-settled 
The Group operates an equity-settled Long Term Incentive Plan for executives and senior management. Awards 
under this Plan are subject to both market-based and non-market-based vesting criteria. 
The fair value at the date of grant is established by using an appropriate simulation method to reflect the 
likelihood of market-based performance conditions being met. The fair value is charged to the consolidated 
income statement on a straight-line basis over the vesting period, with appropriate adjustments being made 
during this period to reflect expected vesting for non-market-based performance conditions and forfeitures. 
The corresponding credit is to equity shareholders’ funds.
To satisfy awards under this Plan, shares may be purchased in the market by an Employee Benefit Trust over 
the vesting period.
(iii) Non-share-based long-term incentive schemes 
The anticipated present value cost of non-share-based incentive schemes is charged to the consolidated 
income statement on a straight-line basis over the period the benefit is earned, based on remuneration rates 
that are expected to be payable. 
(iv) Termination benefits 
Termination benefits are payable when employment is terminated before the normal retirement date, or 
whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises 
termination benefits when it is demonstrably committed to either: terminating the employment of current 
employees according to a detailed formal plan without possibility of withdrawal; or providing termination 
benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 
months after the period end are discounted to present value. 
1 Principal accounting policies cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
u) Assets held for sale and discontinued operations
Non-current assets and businesses which are to be sold (disposal groups) classified as held for sale are measured 
at the lower of carrying amount and fair value less costs to sell. Non-current assets (and disposal groups) are 
classified as held for sale if their carrying amount is expected to be recovered through a sale transaction rather 
than through continuing use. This condition is regarded as met only when such a sale is highly probable and 
the asset (or disposal group) is available for immediate sale in its present condition. Management must be 
committed to the sale, which should be expected to qualify for recognition as a completed sale within one year 
from the date of classification.
Non-current assets are classified as held for sale from the date these conditions are met, and such assets are 
no longer depreciated. 
Discontinued operations are classified as held for sale and are either a separate major line of business or 
geographical area of operations that is part of a single coordinated plan to sell. Once an operation has been 
identified as discontinued, or is reclassified as discontinued, the comparative information in the Income 
Statement is restated.
v) Climate change
In preparation of the consolidated financial statements, consideration has been given to the impact of climate 
change on the Group’s key accounting policies, estimates and judgements. As noted in the Taskforce on 
Climate-related Financial Disclosures (TCFD) on pages 182-198 we are exposed to specific transitional and 
physical climate related risks. The key areas in the consolidated financial statements that were identified for 
consideration of potential impacts from these climate related risks were the assumptions used to support 
impairment reviews of cash generating units (CGUs) and accounting policies on estimated useful lives of 
tangible fixed assets.
(i) Impairment of assets
The key climate related risks considered were the introduction of carbon taxes, disruption of water supply 
and extreme weather events (floods and extreme heat). These risks as well as any potential mitigations were 
considered when assessing the appropriateness of the assumptions used to project future cash flows to support 
the value in use of a CGU. No specific significant financial impacts relating to climate related risks were identified 
in relation to the CGUs that were subject to an impairment review during the year ended 31 December 2024 
(see note 13). In addition, no significant short to medium term (pre 2045) climate related impacts have been 
identified for individual assets or other CGUs in the Group.
q) Borrowing costs 
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are 
assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added 
to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. 
Investment income earned on the temporary investment of specific borrowings pending their expenditure on 
qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in the income statement in the period in which they are incurred.
r) Provisions
A provision is recognised in the consolidated statement of financial position when the Group has a legal or 
constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be 
required to settle the obligation. If the effect is material, a provision is determined by discounting the expected 
future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, 
where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision 
due to the passage of time is recognised as a borrowing cost. 
When some or all of the economic benefits required to settle a provision are expected to be recovered from an 
insurer, a receivable is recognised as an insurance reimbursement asset and included separately within other 
receivables if it is virtually certain that reimbursement from the insurer will be received and the amount of the 
receivable can be measured reliably.
s) Onerous contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from 
a contract are lower than the unavoidable cost of meeting its obligations under the contract.
t) Restructuring
A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring 
plan, and the restructuring has either commenced or has been announced publicly. Future operating costs are 
not provided for.
1 Principal accounting policies cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
The directors do not expect that the adoption of the Standards and Interpretations listed above will have 
a material impact on the financial statements of the Group in future periods, although the full assessment is 
not complete. 
2 Segmental analysis
Operating segments are components of the Group’s business activities about which separate financial 
information is available that is evaluated regularly by the chief operating decision maker (the Group Executive 
Team) in deciding how to allocate resources and in assessing performance. 
The Group’s customers are grouped into three segments Apparel, Footwear and Performance Materials which 
have distinct different strategies and differing customer/end-use market profiles. The Footwear Division consists 
of the footwear thread business and the acquired structural components businesses, Texon and Rhenoflex.
This is the basis on which financial information is reported internally to the chief operating decision maker 
(CODM) for the purpose of allocating resources between segments and assessing their performance.
a) Segment revenue and results
Year ended 31 December 2024
 Apparel  
US$m
Footwear
US$m
Performance 
Materials  
US$m
Total  
US$m
Continuing operations
Revenue
769.8
403.5
327.6
1,500.9
Segment profit
150.6
94.8
24.2
269.6
Exceptional and acquisition related items (note 4)
(69.8)
Operating profit
199.8
Share of profits of joint ventures
1.9
Finance income
3.1
Finance costs
(32.7)
Profit before taxation from continuing operations
172.1
(ii) Fixed asset useful lives
Consideration was given as to whether the impact of physical risks relating to extreme weather events (e.g. 
flood risk damage) may require a reassessment of the estimated useful lives of fixed assets. As noted in the 
physical risks section in our TCFD disclosures, no significant impacts are currently expected in the short to 
medium term (pre 2045), after which point the majority of the Group’s current fixed asset portfolio will be fully 
depreciated. As such, the reassessment of fixed asset useful lives to reflect potential impacts of climate change 
was not deemed necessary.
In light of the above, the Group’s current assessment is that the climate related risks detailed in the TCFD 
disclosures section of the Annual Report do not have a material impact on the key accounting policies, estimates 
and judgements that form the basis of these consolidated financial statements.
New IFRS accounting standards, interpretations and amendments adopted in the year
During the year, the Group has adopted the following standards, interpretations and amendments: 
–	 Non-current Liabilities with Covenants and classification of Liabilities as Current or Non-current (Amendments 
to IAS 1);
–	 Lease liability in a Sale and Leaseback (Amendments to IFRS 16); and
–	 Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7).
The adoption of these standards has not had a material impact on the financial statements of the Group. 
New IFRS accounting standards and interpretations not yet adopted 
The following published standards and amendments to existing standards, which have not yet all been endorsed 
by the UKEB, are expected to be effective as follows: 
From the year beginning 1 January 2025:
–	 Lack of Exchangeability (Amendments to IAS 21).
From the year beginning 1 January 2026:
–	 Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7.
–	 Annual Improvements to IFRS Accounting Standards – Volume 11.
From the year beginning 1 January 2027:
–	 IFRS 18 Presentation and Disclosure in Financial Statements.
–	 IFRS 19 Subsidiaries without Public Accountability: Disclosures.
1 Principal accounting policies cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
b) Geographic information
Year ended 31 December
Revenue by origin
Revenue by destination
Non-current assets
2024  
US$m
2023  
US$m
2024  
US$m
2023  
US$m
2024  
US$m
2023  
US$m
Europe, Middle East & Africa (EMEA)
UK
29.2
29.8
9.1
12.5
263.1
258.7
Rest of EMEA
273.1
295.5
236.7
257.2
160.9
182.3
Americas
USA
124.4
141.9
130.6
155.9
29.9
37.6
Rest of Americas
110.0
104.4
116.4
99.6
45.1
62.0
Asia & Rest of World
India
173.6
163.4
173.3
162.1
38.9
34.6
China and Hong Kong
276.9
228.4
242.0
192.5
259.3
277.6
Vietnam
232.1
198.4
213.7
173.5
34.8
34.7
Other
281.6
232.4
379.1
340.9
66.4
60.2
1,500.9
1,394.2
1,500.9
1,394.2
898.4
947.7
Non-current assets excludes derivative financial instruments, investments, pension surpluses, pension loan 
receivable and deferred tax assets.
3 Revenue
An analysis of the Group’s revenue is as follows:
Year ended 31 December
2024  
US$m
2023 
US$m
Goods transferred at a point in time
1,489.6
1,385.1
Software solutions services transferred over time
11.3
9.1
1,500.9
1,394.2
Other operating income
–
5.8
Finance income
3.1
4.6
1,504.0
1,404.6
The software solutions business is included in the Apparel segment.
Year ended 31 December 2023
Apparel  
US$m
Footwear
US$m
Performance 
Materials  
US$m
Total  
US$m
Continuing operations
Revenue
689.4
368.4
336.4
1,394.2
Segment profit
120.4
84.1
28.9
233.4
Exceptional and acquisition related items (note 4)
(49.4)
Operating profit
184.0
Share of profits of joint ventures
1.1
Finance income
4.6
Finance costs
(33.9)
Profit before taxation from continuing operations
155.8
Segment results include items directly attributable to a segment as well as those that can be allocated on 
a reasonable basis. Exceptional and acquisition related items are not allocated to segments. In addition, no 
measures of total assets and total liabilities are reported for each reportable segment as such amounts are not 
regularly provided to the chief operating decision maker. 
2 Segmental analysis cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Total exceptional and acquisition related items charged to profit before taxation from continuing operations for 
the year ended 31 December 2024 were $69.8 million (2023: $49.4 million) comprising exceptional items for 
the year ended 31 December 2024 of $45.2 million (2023: $27.9 million) and acquisition related items for the 
year ended 31 December 2024 of $24.6 million (2023: $21.5 million). Taxation in respect of exceptional and 
acquisition related items is set out in note 9.
Exceptional items
Exceptional items charged/(credited) to profit before taxation from continuing operations during the year ended 
31 December 2024 are set out below:
Year ended 31 December
2024  
US$m
2023 
US$m
Exceptional items:
Strategic project costs/(income):
– Cost of sales
21.5
18.2
– Distribution costs
1.0
1.3
– Administration costs
4.3
9.1
26.8
28.6
– Other operating income – profit on sale of property
–
 (5.8)
26.8
22.8
Costs to deliver Footwear acquisitions integration synergies:
– Distribution costs
0.5
1.3
– Administration costs
0.8
0.2
1.3
1.5
Costs relating to rightsizing North America Yarns footprint:
– Cost of sales
15.3
–
Lower Passaic River non-cash impairment charge:
– Administration costs
–
3.6
UK pension scheme costs:
– Administration costs
1.8
–
Total exceptional items charged to profit before taxation from continuing operations
45.2
27.9
Disaggregation of revenue
The following table shows revenue disaggregated by primary geographic markets which reconciles with the 
Group’s reportable segments:
Year ended 31 December
2024  
US$m
2023  
US$m
Continuing operations:
Asia
964.2
822.6
Americas
234.4
246.3
EMEA
302.3
325.3
1,500.9
1,394.2
Continuing operations:
Apparel 
769.8
689.4
Footwear
403.5
368.4
Performance Materials
327.6
336.4
1,500.9
1,394.2
The Group had no revenue from a single customer which accounts for more than 10% of the Group’s revenue.
4 Exceptional and acquisition related items
The Group’s consolidated income statement format is presented before and after exceptional and acquisition 
related items. Adjusted results exclude exceptional and acquisition related items on a consistent basis with 
the previous reporting period to provide valuable additional information for users of the financial statements 
in understanding the Group’s performance and reflects how the performance of the business is managed and 
measured on a day-to-day basis. Further details on alternative performance measures are set out in note 36. 
Exceptional items may include significant restructuring associated with a business or property disposal, litigation 
costs and settlements, profit or loss on disposal of property, plant and equipment, non-actuarial gains or losses 
arising from significant one off changes to defined benefit pension obligations, regulatory investigation costs and 
impairment of assets. Acquisition related items include amortisation of acquired intangible assets, acquisition 
transaction costs, contingent consideration linked to employment and adjustments to contingent consideration.
Judgement is used by the Group in assessing the particular items, which by virtue of their scale and nature, 
are presented in the income statement and disclosed in the related notes as exceptional items. In determining 
whether an event or transaction is exceptional, materiality is a key consideration and qualitative factors, such 
as frequency or predictability of occurrence, are also considered. This is consistent with the way financial 
performance is measured by management and reported to the Board.
3 Revenue cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Lower Passaic River non-cash impairment charge – A non-cash exceptional impairment charge of $3.6 million 
was made for the year ended 31 December 2023 relating to the full amount of an insurance asset that had 
previously been recognised for the expected partial recovery of future remediation costs and associated legal 
and professional costs in connection with the Lower Passaic River legacy environmental matter. The impairment 
charge was recognised for accounting purposes because at the end of 2023 the insurer was placed into 
liquidation. This is without prejudice to any future claims against the insurer in the liquidation proceedings.
UK Pension Scheme costs – In September 2024 the Group and the UK pension scheme Trustees agreed to 
purchase a £1.3 billion bulk annuity policy (“buy-in”) purchase from Pension Insurance Corporation plc, which 
insures the remaining 80% of UK scheme’s pension liabilities. As a result of the buy-in, all the financial and 
demographic risks relating to the scheme’s liabilities are now fully hedged. This buy-in represents a significant 
step in Coats fully insuring its UK pension obligations. During the year ended 31 December 2024 following the 
buy-in, a provision for estimated administration costs relating to the UK pension scheme of $8.5 million has 
been made and was charged to the profit and loss account. In addition an exceptional past service credit of 
$6.7 million has been recognised in the profit and loss account as a result of adjustments made to member 
benefits during the year ended 31 December 2024. As a result, the overall exceptional charge relating to 
the UK pension scheme recognised in the profit and loss account in the year ended 31 December 2024 was 
$1.8 million.
Acquisition related items
Acquisition related items are set out below:
Year ended 31 December
2024  
US$m
2023  
US$m
Acquisition related items:
Administrative expenses:
Acquired intangibles assets – amortisation and impairment charges
24.6
21.5
Total acquisition related items charged to profit before taxation from continuing operations
24.6
21.5
Amortisation and impairment charges of intangible assets acquired through business combinations are not 
included within adjusted operating profit and adjusted earnings per share. These costs are acquisition related 
and management consider them to be capital in nature and are not included in profitability measures by 
which management assess the performance of the Group. Excluding amortisation and impairment charges 
of intangible assets acquired through business combinations and recognised in accordance with IFRS 3 
“Business Combinations” from adjusted results also ensures that the performance of the Group’s acquired 
businesses is presented consistently with its organically grown businesses. It should be noted that the use of 
acquired intangible assets contributed to the Group’s results for the years presented and will contribute to the 
Group’s results in future periods as well. Amortisation of acquired intangible assets will recur in future periods. 
Amortisation of software is included within operating results as management consider these cost to be part of 
the trading performance of the business.
Strategic project costs/(income) – Strategic project initiatives commenced during 2022 to optimise the Group’s 
portfolio and footprint and improve the overall cost base efficiency. During the year ended 31 December 
2024 the Footwear division continued with the optimisation of its footprint with the expansion of operations 
in Indonesia and the closing of facilities in the UK and Germany, which had been acquired in 2022 through 
the Texon acquisition. Further site reorganisation activities continued in the Americas to deliver operating 
efficiencies and, in India, further optimisation activities were completed. These strategic project activities have 
been largely concluded. 
As a result of the above activities, exceptional restructuring costs totalling $26.8 million were incurred during 
the year ended 31 December 2024 (2023: $28.6 million) which included:
–	 severance and related employee costs of $6.6 million (2023: $14.8 million);
–	 non-cash impairment charges of property, plant and equipment and right-of-use assets of $8.0 million 
(2023: $5.5 million); and 
–	 site related costs, legal and advisor fees and other restructuring costs of $12.2 million (2023: $8.3 million).
During the year ended 31 December 2024 profit from the sale of land and buildings as part of strategic projects 
was $nil (2023: $5.8 million). Strategic project costs net of income from sale of property for the year ended 31 
December 2024 were $26.8 million (2023: $22.8 million).
Costs to deliver Footwear acquisitions integration synergies – During the year ended 31 December 2024 
exceptional costs of $1.3 million (2023: $1.5 million) were charged to the profit and loss account relating to 
the integration of the Texon and Rhenoflex businesses, which were acquired in 2022. These costs to deliver 
integration synergies has resulted in the Footwear Division now being one customer-facing organisation with 
an integrated back office. The exceptional costs primarily relates to severance and related employee costs. 
These integration synergy initiatives are now largely completed. 
Costs relating to rightsizing North America Yarns footprint – In December 2024, the Group announced the 
closure of its Performance Materials site in Toluca, Mexico. The Group concluded that volume expectations 
when the site was originally planned and launched will not materialise due to structural market changes and 
that it can serve its North America yarns customers more efficiently from a single site in the US. As a result of the 
above, costs totalling $15.3 million relating to Toluca have been charged in the year ended 31 December 2024 
which includes severance and related employee costs of $0.6 million, non-cash impairment charges of property, 
plant and equipment and right-of-use leased assets of $9.7 million and closure, decommissioning costs, advisor 
and other related costs of $5.0 million. In addition, in connection with the closure of the Performance Materials 
site in Toluca intangible assets relating to North America Yarns businesses acquired in 2017 and 2020 were 
fully impaired. This resulted in non-cash impairment charges totalling $3.0 million of which $2.6 million related 
to goodwill and $0.4 million related to other acquired intangible assets. The total impairment charge relating to 
these acquired intangible assets of $3.0 million is included within acquisition related items (see below).
4 Exceptional and acquisition related items cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
7 Finance costs
Year ended 31 December
2024  
US$m
2023  
US$m
Interest on bank and other borrowings
31.3
30.3
Interest expense on lease liabilities
5.2
5.6
Net interest on pension scheme assets and liabilities
(4.2)
(4.4)
Other finance costs including unrealised gains and losses on foreign exchange contracts
0.4
2.4
32.7
33.9
8 Staff costs
The average monthly number of employees was:
Year ended 31 December
2024
2023
Continuing operations:
Manufacturing
12,970
12,635
Other staff
2,908
2,904
15,878
15,539
Discontinued operations1
–
457
Total number of employees
15,878
15,996
Comprising:
UK
75
220
Overseas
15,803
15,319
15,878
15,539
The total numbers employed at the end of the year were:
UK
90
199
Overseas
15,952
15,203
Total number of employees
16,042
15,402
1.	 The 2023 average number of employees for the discontinued European Zips business are for the period until disposal on 31 August 2023 (see note 31). 
5 Profit for the year (including discontinued operations)
Year ended 31 December
2024  
US$m
2023  
US$m
Profit for the year is stated after charging/(crediting):
Amortisation and impairment of intangible assets
26.2
22.9
Depreciation of owned property, plant and equipment
25.4
27.0
Depreciation of right-of-use assets
18.0
18.8
Impairment of property, plant and equipment and other assets
18.9
9.4
Profit on disposal of property, plant and equipment
(2.4)
(5.9)
Fees charged by EY LLP 
Group audit fees:
– Fees payable for the audit of the Company’s annual accounts 
1.9
2.1
– Fees payable for the audit of the Company’s subsidiaries
1.4
1.8
Fees payable to the Company’s auditor in respect of non-audit related services1
0.5
0.6
Total fees charged by EY LLP
3.8
4.5
Research and development expenditure
5.7
6.5
Expected credit losses
3.6
1.6
Net foreign exchange (gains)/losses
(2.8)
4.4
Rental income from land and buildings
(0.1)
(0.1)
Inventory as a material component of cost of sales
602.3
585.4
Inventory write-downs to net realisable value
5.9
5.1
1.	 Includes assurance services provided by EY in relation to the Sustainability Report and the interim results review.
6 Finance income
Year ended 31 December
2024  
US$m
2023  
US$m
Income from investments
0.3
0.1
Net monetary gain arising from hyperinflation accounting (see note 1)
0.3
2.3
Other interest receivable and similar income
2.5
2.2
3.1
4.6
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
The tax charge for the year can be reconciled as follows:
Year ended 31 December
2024
2023
Adjusted  
US$m
Exceptional and 
acquisition related 
items  
US$m
Total  
US$m
Adjusted  
US$m
Exceptional and 
acquisition  
related items  
US$m
Other  
adjustments1  
US$m
Total  
US$m
Profit before tax
241.9
(69.8)
172.1
200.8
(49.4)
4.4
155.8
Expected tax charge/
(credit) at the UK 
statutory rate of 25% 
(2023: 23.5%)
60.5
(17.5)
43.0
47.2
(11.6)
1.0
36.6
Differences between 
overseas and UK 
taxation rate
(6.7)
0.9
(5.8)
(7.7)
–
–
(7.7)
Non-deductible 
expenses 
2.3
3.4
5.7
7.9
8.7
(1.0)
15.6
Non-taxable income
(1.8)
(0.1)
(1.9)
(2.5)
–
(0.2)
(2.7)
Local tax incentives 
(2.3)
–
(2.3)
(0.4)
–
–
(0.4)
Utilisation of 
unrecognised 
deferred tax assets
(1.0)
–
(1.0)
(3.3)
–
–
(3.3)
Potential deferred 
tax assets not 
recognised
6.8
15.1
21.9
9.8
–
–
9.8
Prior year 
adjustments
(2.9)
–
(2.9)
(2.8)
–
–
(2.8)
Withholding tax on 
remittances (net of 
double tax credits) 
15.2
–
15.2
9.9
–
–
9.9
Income tax charge/
(credit)
70.1
1.8
71.9
58.1
(2.9)
(0.2)
55.0
Effective tax rate
29%
(3)%
42%
29%
6%
5%
35%
1.	 In September 2024 the Group and the UK pension scheme Trustees agreed to purchase a bulk annuity policy (“buy-in”), which insures the remaining 
80% of the UK scheme’s pension liabilities. As a result of the buy-in, all the financial and demographic risks relating to the UK pension scheme’s 
liabilities are now fully hedged (see note 10). The Group no longer adjusts net interest on pension scheme assets and liabilities in arriving at the adjusted 
effective tax rate as volatility in this interest for the Coats UK pension scheme has now been eliminated. This is the basis on which management now 
monitors and manages the effective tax rate. For the year ended 31 December 2023 and prior periods, net interest on pension scheme assets and 
liabilities was adjusted in arriving at the adjusted effective tax rate. The adjusted effective tax rate for the year ended 31 December 2023 would have 
been 28% if the same basis of calculation used for the year ended 31 December 2024 had been applied.
Year ended 31 December
2024  
US$m
2023 
US$m
Employee aggregate remuneration comprised (including directors):
Wages and salaries
270.2
261.4
Social security costs
28.1
25.9
Other pension costs (note 10)
6.0
6.4
304.3
293.7
Discontinued operations
–
12.5
304.3
306.2
9 Tax on profit from continuing operations
Year ended 31 December
2024  
US$m
2023  
US$m
Current tax charge
(72.6)
(64.0)
Deferred tax credit
0.7
9.0
Total tax charge
(71.9)
(55.0)
The current tax charge includes withholding tax charges for the year ended 31 December 2024 of $16.7 million 
(2023: $10.2 million) including withholding taxes arising from the repatriation of earnings and payment of intra-
group charges mainly to the United Kingdom. The United Kingdom current corporation tax charge at 25% 
(2023: 23.5%) was $nil for the year ended 31 December 2024 and 2023. 
For the year ended 31 December 2024 the tax charge in respect of exceptional and acquisition related items 
was $1.8 million (2023: credit of $2.9 million). This includes exceptional tax credits of $1.1 million (2023: $2.3 
million) in connection with the exceptional strategic projects, an exceptional deferred tax charge on writing 
down deferred tax assets in Mexico of $7.2 million (2023: $nil) and an exceptional tax credit totalling $4.3 
million (2023: $0.6 million) relating to the unwinding of deferred tax liabilities on the amortisation of acquired 
intangible assets which in 2023 included the impact of tax rate differences.
8 Staff costs cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Taxation paid
During the year the Group made Corporate Income Tax payments in respect of continuing operations (including 
withholding and dividend distribution taxes) of $69.4 million (2023: $59.7 million). The amount of tax paid in 
each jurisdiction is as follows:
Year ended 31 December
2024  
US$m
2023  
US$m
UK
16.0
8.2
Vietnam 
12.4
12.3
Indonesia
6.6
11.0
Hong Kong
6.8
4.4
India 
5.5
4.1
China
4.8
1.9
USA
3.2
1.7
Others (26 countries each less than $2.5 million) 
14.1
16.1
Total Corporate Income Tax paid 
69.4
59.7
The taxes paid in the UK are withholding taxes on royalties, group charges and dividends, deducted and 
paid at source. In the year ended 31 December 2024 the Group paid withholding taxes of $16.8 million 
(2023: $9.9 million). 
The Group’s adjusted effective tax rate is higher than the blended rate of the countries we operate in primarily 
due to the impact of unrecognised tax losses and the impact of withholding taxes on the repatriation of earnings 
and payment of intra-group charges to the UK.
Excluding exceptional and acquisition related items, the adjusted effective rate on pre-tax profits was 29% 
(2023: 29%). 
Pillar Two
For the year ended 31 December 2024 the tax charge in the income statement related to Pillar Two income 
taxes was $1.2 million (2023: $nil). This current tax charge mainly relates to profits earned in Honduras, Hungary 
and Singapore, which either have statutory tax rates of less than 15% or where the Group is able to take 
advantage of a tax holiday. The Group has applied the temporary exception issued by the IASB in May 2023 
from the accounting requirements for deferred taxes in IAS 12. Accordingly, the Group neither recognises nor 
discloses information about deferred tax assets and liabilities related to Pillar Two income taxes for the current 
financial year. 
Uncertain tax positions
The Group’s tax liability includes a number of tax provisions, which together total $26.0 million (2023: $29.2 
million). The decrease in the year is primarily due to the settlement of an audit in Indonesia ($3 million). 
These provisions relate to management’s estimate of the amount of tax payable on open tax returns yet to be 
agreed with the local tax authorities. 
The final outcome on resolution of open issues with the relevant local Tax Authorities may vary significantly 
due to the uncertainty associated with such tax items and the continual evolution and development of local Tax 
Authorities. There is a wide range of possible outcomes and any variances in the final outcome to the provided 
amount will affect the tax financial results in the year of agreement. 
The amount provided for uncertain tax positions has been made using the best estimate of the tax expected 
to be ultimately paid, taking into account any progress on the discussions with local Tax Authorities, together 
with expert in-house and third-party advice on the potential outcome and recent developments in case law, 
Tax Authority practices and previous experience. 
9 Tax on profit from continuing operations cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
b) Defined contribution schemes
The Group operates a number of defined contribution plans around the world to provide pension benefits. 
c) Defined benefit schemes
The Group operates various defined benefit pension and other post-employment arrangements in most of the 
countries in which it operates. The most significant defined benefit pension schemes are the Coats UK Pension 
Scheme and the Coats North America Pension Plan (US Plan), both of which are closed to future accrual.
Coats UK Pension Scheme
The Coats UK Pension Scheme (“the Scheme”) is administered by a trustee. Its assets are held in funds that are 
legally separated from the Group and are subject to UK legislation with oversight from the Pensions Regulator. 
It was formed in 2018 by bringing together three historic UK schemes, the last of which closed to future accrual 
in 2016. The trustee board is composed of representatives of both the Group and scheme members together 
with two independent trustees. The trustee board is required by law and the Scheme’s rules to act in the 
interest of the Scheme’s members and other stakeholders (for example the Group). 
The sponsor of the Scheme is Coats Limited and the Company provides a guarantee to the Scheme.
The trustee board is responsible for setting the Scheme’s investment policy following consultation with the 
wider Group. 
Cash funding commitments
The Scheme is subject to full actuarial valuations every three years using assumptions agreed between the 
trustee board and the wider Group. The purpose of this valuation is to design a cash funding plan to ensure 
that the pension scheme has sufficient assets available to meet the future payment of benefits to Scheme 
members. It is this funding valuation basis, not accounting valuations under IAS 19, that determines the cash 
funding the Group provides to the Scheme. The next triennial valuation will be as at 31 March 2027. 
a) Pension and other post-employment costs
Pension and other post-employment costs charged to operating profit for the year (continuing and discontinued 
operations) were:
Year ended  
31 December  
2024  
US$m
Year ended  
31 December  
2023  
US$m
Defined contribution schemes
2.8
3.1
Defined benefit schemes – funded and unfunded schemes
3.2
3.3
Past service credit
(6.4)
(0.4)
Settlements
– 
0.3
Administrative expenses for defined benefit schemes
11.9
4.6
11.5
10.9
Included in the above table is a net exceptional charge relating to the UK pension scheme of $1.8 million 
(see note 4). This consists of a provision for estimated administration costs relating to the UK pension scheme 
of $8.5 million, offset by an exceptional past service credit of $6.7 million which arose due to adjustments 
made to member benefits during the year ended 31 December 2024. 
10 Retirement and other post-employment benefit arrangements
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
The agreement with PIC required up to c.£100 million ($128 million) of additional funding from the Group, with 
Coats making a £70 million ($90 million) upfront cash contribution to the scheme and a further £30 million ($38 
million) provided initially as a loan to the Scheme. As the insurance premium for the purchase of the PIC policy was 
higher than the pension liabilities measured on an IAS 19 basis, an actuarial loss arose, which for the year ended 
31 December 2024 totalled $224.9 million (2023: $72.3 million). This has been recognised in the consolidated 
statement of comprehensive income and includes a provision for the estimated costs relating to completion of 
the buy-in transaction of $6.8 million. 
At 31 December 2024 the loan receivable from the UK pension scheme including accrued interest was $38.3 
million (2023: $nil). The loan is due for repayment on 4 September 2029 or on winding up of the UK Pension 
Scheme, whichever is earlier, or at an earlier date if agreed between the parties. The interest rate on the loan 
is SONIA (Sterling Over Night Indexed Average) plus 150 basis points per annum. The loan was made to the 
UK pension scheme in connection with the premium payable to PIC in respect of the buy-in transaction and 
provides the UK pension scheme with cash until certain long-term assets are realised. The loan is expected to 
be recovered in full on or before 4 September 2029.
The two bulk annuity policies are assets of the Scheme and form part of the total Scheme assets disclosed 
below. Under IAS 19 it is deemed a qualifying insurance policy, due to it exactly matching the amount and timing 
of benefits payable by the Scheme to the covered members. Under IAS 19, the value of the bulk annuity policy is 
therefore set equal to the corresponding IAS 19 liabilities for covered members; not the premium paid. 
Coats North America Pension Plan
The Coats North America Pension Plan (Coats US) is a defined benefit scheme, the assets of which are held in 
funds that are legally separated from the Group. In 2019 the Group agreed to amend the Plan to close to new 
hires from 1 January 2020, and to cease future accrual for current employees from 1 January 2022. 
Overall Group position
The UK and US schemes represent around 95% of the Group’s total defined benefit obligations. 
Both these schemes are pre-funded, whereas the majority of the Group’s other arrangements (most significantly 
in Germany) are unfunded and benefits are met on an ongoing basis by the Group. The overall balance sheet 
position for the Group in respect of the retirement and other post-employment defined benefit arrangements 
on an IAS 19 basis, was a net deficit of $4.1 million as at 31 December 2024, excluding a loan payable by the 
Coats UK Pension Scheme to the Group of $38.3 million. Including the loan of $38.3 million as a liability of 
the Coats UK Pension Scheme payable to the Group, the net deficit for the Group’s retirement and other post-
employment defined benefit, on an IAS 19 basis, was $42.4 million as at 31 December 2024.
The valuation of liabilities for funding purposes differs from the IAS 19 valuation used for accounting purposes, 
mainly due to the different actuarial assumptions used but also due to differences in market conditions between 
valuation dates (31 March 2024 for funding valuations vs 31 December 2024 for IAS 19). Whilst there are some 
specific differences relating to discount rates, in the round the assumptions used to calculate the funding 
valuation liabilities (the “Technical Provisions”) are required to be set prudently, given this drives cash funding 
contributions, whereas the assumptions used under IAS 19 are required to be the Group directors’ best estimate 
of future experience. Taking two of the main assumptions as examples: 
–	 Discount rates: For the Technical Provisions valuation this is set using a relatively cautious expectation of 
future returns on the Scheme’s assets, a significant portion of which are liked to UK gilts, whilst under the 
IAS 19 accounting valuation this is set using high-quality (AA rated) corporate bond yields with no linkage 
to actual investment strategy the Scheme has. At the current time this typically means IAS 19 discount rates 
are higher than Technical Provisions discount rates and so deliver a lower IAS 19 liability figure.
–	 Mortality: The Technical Provisions valuation, with the requirement for prudence, assumes Scheme members 
live longer than the IAS 19 account valuation, where the requirement is to assume best estimate of future 
life expectancy. This therefore delivers a lower IAS 19 liability figure.
The funding deficit has evolved significantly over the last 5-10 years. In 2015 the estimated total funding deficit 
across the three historic UK schemes was just under £600 million. Significant Group contributions and strong 
investment performance have helped reduce this to a broadly fully funded position. 
In December 2024, the Group and the trustee board agreed the latest funding valuation of the Scheme with an 
effective date of 31 March 2024. This showed a funding surplus of £20 million ($25 million at 31 December 
2024 exchange rates) and therefore no deficit repair contributions are payable. 
Buy-ins
Pensioner buy-in
In December 2022, the trustee board purchased a circa £350 million bulk annuity policy from Aviva, which insures 
all the benefits payable in respect of around 3,700 pensioner members (a “pensioner buy-in”). This policy saw 
all financial and demographic risks, including those related to longevity, covered for approximately 20% of 
Scheme members. 
Additional buy-in
In September 2024, the trustee board purchased a circa £1.3 billion bulk annuity policy from Pension Insurance 
Corporation plc (“PIC”), which insures all the benefits payable in respect of the remaining 80% of the scheme’s 
liabilities. As a result of the buy-in, all the financial and demographic risks relating to the scheme’s liabilities are 
now fully hedged. This buy-in represents a significant step in Coats’ fully insuring its UK pension obligations.
10 Retirement and other post-employment benefit arrangements cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Risk
Description
Commentary
Investment  
risk
The scheme assets are shown on a mark-to-
market basis. A decrease in asset values at a 
relevant measurement date, to the extent assets 
do not hedge liabilities, would lead to an increased 
disclosed deficit or reduced surplus.
The UK funded scheme’s bought in status means 
investment risk is carried on the illiquid assets still 
held whilst awaiting their redemption.
The US scheme is fully funded and has a significant 
proportion of fixed income. The fixed income is 
invested directly to protect the funded status of 
the scheme. Trustees work with fixed income 
managers to consider the liabilities (including 
key period durations, credit spread duration 
and convexity) and have created a custom 
fixed income benchmark to match the liabilities 
and protect the funded status. In addition the 
schemes’ investment policies recognise the need 
to generate cash flows to meet members’ benefits 
as they fall due.
Liquidity risk
The scheme needs available financial resources 
to meet obligations when they fall due. Not being 
able to sell assets in a timely manner for the 
expected valuation could lead to an increased 
disclosed deficit or reduced surplus.
The schemes’ investment policies recognise the 
need to generate cash flows to meet members’ 
benefits as they fall due. The buy-ins for the Coats 
UK Pension Scheme means income equal to the 
benefits payable is being received on a monthly 
basis.
The following disclosures are required in accordance with the requirements of IAS 19 and do not include 
information in respect of schemes operated by joint ventures. The information provided below for defined 
benefit plans has been prepared by independent qualified actuaries based on the most recent formal actuarial 
valuations of the schemes (effective at 31 March 2024 and 1 January 2024 for the UK and US respectively), 
updated to take account of the valuations of assets and liabilities as at 31 December 2024.
i) Principal risks
The Group is exposed to actuarial and investment risks, the principal risks are:
Risk
Description
Commentary
Interest rate 
risk
The present value of the defined benefit plan 
liabilities is calculated using a discount rate 
determined by reference to bond yields. A 
decrease in bond yield rates will increase defined 
benefit obligations.
The impact of the movement in discount rates are 
shown on page 152. The Trustees of the UK and 
US schemes hedge these sensitivities through 
physical bonds, derivatives and insurance 
policies. The buy-ins for the Coats UK Pension 
Scheme means this risk is fully hedged in the UK.
Inflation
The present value of the defined benefit liabilities 
are calculated by reference to assumed future 
inflation rates. An increase in inflation rates will 
increase defined benefit obligations.
The impact of the movement in inflation rates are 
shown on page 152. The Trustees of the UK and 
US schemes hedge these sensitivities through 
physical bonds, derivatives, real assets and 
insurance policies. The buy-ins for the Coats UK 
Pension Scheme means this risk is fully hedged 
in the UK.
Longevity risk
The present value of the defined benefit plan 
liability is calculated by reference to the best 
estimate of member life expectancies. An increase 
in life expectancy will increase liabilities.
The impact of an increase in life expectancy is 
shown on page 152. The buy-ins for the Coats UK 
Pension Scheme means this risk is fully hedged 
in the UK.
10 Retirement and other post-employment benefit arrangements cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
iii) Amounts recognised in the consolidated income statement
Amounts recognised in income in respect of these defined benefit schemes are as follows:
Year ended 31 December 2024
Coats UK  
Pension Scheme  
US$m
Coats US  
US$m
Other  
US$m
Group  
US$m
Current service cost
–
–
(3.2)
(3.2)
Past service credit/(cost)
6.7
–
(0.3)
6.4
Administrative expenses
(11.4)
(0.5)
–
(11.9)
(4.7)
(0.5)
(3.5)
(8.7)
Interest on defined benefit obligations – unwinding of discount
(82.4)
(1.2)
(4.6)
(88.2)
Interest income on pension scheme assets
89.9
5.0
0.6
95.5
Effect of asset ceiling
(1.5)
(1.6)
–
(3.1)
6.0
2.2
(4.0)
4.2
Year ended 31 December 2023
Coats UK  
Pension Scheme  
US$m
Coats US  
US$m
Other  
US$m
Group  
US$m
Current service cost
–
–
(3.3)
(3.3)
Past service credit/(cost)
–
(0.2)
0.6
0.4
Settlements
–
–
(0.3)
(0.3)
Administrative expenses
(4.0)
(0.5)
(0.1)
(4.6)
(4.0)
(0.7)
(3.1)
(7.8)
Interest on defined benefit obligations – unwinding of discount
(84.9)
 (1.4)
 (4.8)
 (91.1)
Interest income on pension scheme assets
 94.5 
 5.0 
 0.5 
 100.0 
Effect of asset ceiling
 (3.1)
 (1.4)
 – 
 (4.5)
 6.5 
 2.2 
 (4.3)
 4.4 
ii) Principal assumptions
The principal assumptions for the UK and US schemes are as follows:
Principal assumptions at 31 December 2024
Coats UK  
Pension Scheme  
%
Coats US  
%
Other  
%
Rate of increase in salaries
–
–
5.9
Rate of increase for pensions in payment
Various
–
1.7
Discount rate
5.4
5.6
6.7
Inflation assumption
3.3
–
5.0
Principal assumptions at 31 December 2023
Coats UK  
Pension Scheme  
%
Coats US  
%
Other  
%
Rate of increase in salaries
–
–
5.8
Rate of increase for pensions in payment
Various
–
1.7
Discount rate
4.5
5.0
6.0
Inflation assumption
3.2
–
4.1
The rate of increase for pensions in payment for members of the combined Coats UK Pension Scheme vary 
in accordance with each member’s former scheme category and period of membership. For former Coats 
UK plan members the increases for pensions in payment are assumed to be at a rate of 3.1% (2023: 2.9%). 
For former Staveley scheme members, the majority of the increases for pensions in payment fall within the 
range 2.3%–3.1% (2023: 2.1%–2.9%). For former Brunel scheme members, the majority of the increases for 
pensions in payment fall within the range 3.4%–4.0% (2023: 3.4%–4.0%).
The assumed life expectancy on retirement is:
Year ended 31 December 2024
Year ended 31 December 2023
Coats UK  
Pension Scheme  
Years
Coats US  
Years
Coats UK  
Pension Scheme  
Years
Coats US  
Years
Retiring today at age 60:
Males
24.8
25.0
25.0
25.0
Females
27.6
27.2
27.9
27.2
Retiring in 20 years at age 60:
Males
26.0
26.7
26.1
26.6
Females
28.8
28.8
29.0
28.7
10 Retirement and other post-employment benefit arrangements cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
v) Amounts recognised in the consolidated statement of financial position
The amounts included in the consolidated statement of financial position arising from the Group’s defined 
benefit arrangements are as follows:
Year ended 31 December 2024
Coats UK  
Pension Scheme  
US$m
Coats US  
US$m
Other  
US$m
Total  
US$m
Cash and cash equivalents
16.9
 1.0 
 2.5 
20.4
Other scheme liabilities
 (129.9)
 – 
 – 
 (129.9)
Equity instruments:
US
 – 
 13.1 
 – 
 13.1 
UK
 2.2 
 1.2 
 – 
 3.4 
Eurozone
 0.5 
 3.9 
 – 
 4.4 
Other regions
 – 
 7.4 
 1.7 
 9.1 
Debt instruments:
Corporate bonds (Investment grade)
 – 
 44.4 
 – 
 44.4 
Corporate bonds (Non-investment grade)
 25.2 
 1.3 
 – 
 26.5 
Government/sovereign instruments
 – 
 25.5 
 – 
 25.5 
Global real estate
 78.1 
 – 
 – 
 78.1 
Assets held by insurance company:
Insurance contracts
 1,664.6 
 0.2 
 0.8 
 1,665.6 
 Other
 (1.9)
 – 
 2.2 
 0.3 
Total market value of assets
 1,655.7 
 98.0 
 7.2 
 1,760.9 
Actuarial value of scheme liabilities
 (1,664.8)
 (25.4)
 (82.0)
 (1,772.2)
Net asset/(liability) in the scheme
 (9.1)
 72.6 
 (74.8)
 (11.3)
Adjustment due to asset ceiling1
–
(31.1)
–
(31.1)
Recoverable net asset/(liability) in the scheme
(9.1)
41.5
(74.8)
(42.4)
1.	 The accounting surplus under IAS 19 for the Coats US pension scheme is presented net of tax on the consolidated statement of financial position. 
Please see section viii for further details.
The other scheme liabilities for the Coats UK Pension Scheme in the above table include a $38.3 million 
loan payable to the Group and a $86.8 million deferred premium balance payable to PIC in respect of the 
buy-in transaction. 
The insurance contract asset for the Coats UK Pension Scheme in the above table includes excess insurance 
of $16.3 million, which will be subject to customary post-transaction data reconciliations. This will be utilised 
during the buy-in transaction completion process, which will include insuring the incremental defined benefit 
obligations arising as a result of the Guaranteed Minimum Pension equalisation.
iv) Amounts recognised in the consolidated statement of comprehensive income 
Actuarial gains and losses were as follows:
Year ended  
31 December 
2024  
US$m
Year ended  
31 December 
2023  
US$m
Effect of changes in demographic assumptions
39.3
 33.7 
Effect of changes in financial assumptions
142.2
 (63.0)
Effect of experience adjustments
(46.7)
 (39.9)
Remeasurement on assets (excluding interest income)
(398.0)
 (33.4)
Adjustment due to asset ceiling
38.1
31.8
Included in the statement of comprehensive income
(225.1)
(70.8)
10 Retirement and other post-employment benefit arrangements cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
The amounts are presented in the consolidated statement of financial position as follows:
Year ended 31 December
2024  
US$m
2023  
US$m
Non-current assets:
Funded
 44.0 
 148.2 
Current assets:
Funded 
 1.5 
 1.6 
Current liabilities:
Funded
 (0.4)
 (0.8)
Unfunded
 (7.5)
 (7.7)
Non-current liabilities:
Funded
 (14.4)
 (2.9)
Unfunded
 (65.6)
 (75.6)
 (42.4)
 62.8 
The above overall net deficit balance for the Group’s retirement and other post-employment defined benefit 
arrangements of $42.4 million includes the $38.3 million loan payable by the Coats UK Pension Scheme to 
the Group. 
Excluding the loan payable by the Coats UK Pension Scheme to the Group of $38.3 million, the net deficit 
for the Group’s retirement and other post-employment defined benefit arrangements was $4.1 million as at 
31 December 2024.
The schemes disclosed as part of the ‘other’ column in the tables above include surplus positions of $4.1 million 
(2023: $3.8 million).
Year ended 31 December 2023
Coats UK  
Pension Scheme  
US$m
Coats US  
US$m
Other  
US$m
Total  
US$m
Cash and cash equivalents
 53.5 
 0.5 
 3.4 
 57.4 
Equity instruments:
US
 62.2 
 13.1 
 – 
 75.3 
UK
 5.2 
 1.2 
 – 
 6.4 
Eurozone
 8.6 
 4.2 
 – 
 12.8 
Other regions
 28.9 
 7.0 
 1.6 
 37.5 
Debt instruments:
Corporate bonds (Investment grade)
 519.3 
 46.7 
 – 
 566.0 
Corporate bonds (Non-investment grade)
 74.0 
 1.4 
 – 
 75.4 
Government/sovereign instruments
 611.1 
 26.8 
 – 
 637.9 
Global real estate
 127.0 
 – 
 – 
 127.0 
Derivatives:
Total return, interest and inflation swaps
 (7.5)
 – 
 – 
 (7.5)
Assets held by insurance company:
Insurance contracts
 396.4 
 0.2 
 0.8 
 397.4 
Diversified investment fund
 17.2 
 – 
 – 
 17.2 
Other
 134.6 
 – 
 0.2 
 134.8 
Total market value of assets
 2,030.5 
 101.1 
 6.0 
 2,137.6 
Actuarial value of scheme liabilities
 (1,894.3)
 (25.5)
 (89.1)
 (2,008.9)
Net asset/(liability) in the scheme
 136.2 
 75.6 
 (83.1)
 128.7 
Adjustment due to asset ceiling1
 (34.0)
 (31.9)
 – 
 (65.9)
Recoverable net asset/(liability) in the scheme
 102.2 
 43.7 
 (83.1)
 62.8 
1.	 The accounting surplus under IAS 19 for the Coats UK and US pension schemes is presented net of tax on the consolidated statement of financial 
position. Please see section viii for further details.
10 Retirement and other post-employment benefit arrangements cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
vi) Assets without a quoted price in an active market
For the Coats UK Pension Scheme, all assets in the table in section v of this note do not have a quoted price 
in an active market. For the Coats US scheme, included in the in section v of this note are $44.4 million (2023: 
$46.7 million) of corporate bonds (Investment grade), $1.3 million (2023: $1.4 million) of corporate bonds (Non-
investment grade) and $0.2 million (2023: $0.2 million) of insurance contracts without a quoted price in an 
active market. All other assets have a quoted price in an active market.
vii) Basis of asset valuation
Under IAS 19, plan assets must be valued at the bid market value at the balance sheet date. For the main asset 
categories:
–	 Equities and bonds listed on recognised exchanges are valued at closing bid prices; 
–	 Other bonds are measured using a combination of broker quotes and pricing models making assumptions 
for credit risk, market risk and market yield curves;
–	 Global real estate assets are valued on either a fair value approach as provided by the investment manager 
or notional bid valuations provided by the investment managers due to investments being held within a 
single priced pooled investment vehicle. Valuations are prepared in accordance with the current RICS 
Valuation – Global Standards (1 July 2017) and the RICS Valuation – Professional Standards UK January 
2014 (revised April 2015);
–	 Certain unlisted investments, for example derivatives and insurance contracts, are valued using a model 
based valuation such as a discounted cash flow; and
–	 Diversified investment funds are valued at fair value which is typically the Net Asset Value provided by the 
investment manager.
viii) Recoverability of plan surplus
The recoverable surplus on the Coats US scheme has been recognised in line with the annual refunds expected 
from the scheme to fund the US post-retirement medical scheme in accordance with relevant US legislation, 
and the residual surplus recognised net of applicable US taxes. The pension scheme was in a surplus position 
of $72.6 million at 31 December 2024 of which a recoverable surplus of $41.5 million is recognised on the 
Balance Sheet. 
Year ended  
31 December 
2024  
US$m
Year ended  
31 December 
2023  
US$m
Movements in the present value of defined benefit obligations were as follows:
At 1 January
 (2,008.9)
 (1,912.2)
Current service cost
 (3.2)
 (3.3)
Decrease in liabilities on settlements
 – 
 3.8 
Past service credit
 6.4 
 0.4 
Interest on defined benefit obligations – unwinding of discount
 (88.2)
 (91.1)
Actuarial gains/(losses) on obligations
 134.8 
 (69.2)
Benefits paid
 154.3 
 154.1 
Net movement due to acquisitions and disposals of subsidiaries
 – 
 1.1 
Exchange difference
 32.6 
 (92.5)
At 31 December
 (1,772.2)
 (2,008.9)
Movements in the fair value of scheme assets were as follows:
At 1 January 
 2,137.6 
 2,072.3 
Interest income on scheme assets
 95.5 
 100.0 
Remeasurement on assets (excluding interest income)
 (398.0)
 (33.4)
Decrease in assets on settlements
 – 
 (4.1)
Contribution from sponsoring companies
 108.2 
 56.1 
Benefits paid
 (154.3)
 (154.1)
Administrative expenses paid from plan assets
 (0.5)
 (0.6)
Exchange difference
 (27.6)
 101.4 
At 31 December
 1,760.9 
 2,137.6 
Administrative expenses paid from plan assets excludes those expenses paid directly by the Group.
The reconciliation of the effect of the asset ceiling is as follows:
Unrecognised surplus at 1 January 
 65.9 
 90.5 
Interest cost on unrecognised surplus
 3.1 
 4.5 
Changes in the effect of limiting a net defined benefit asset to the asset ceiling (excluding 
interest)
 (38.1)
 (31.8)
Exchange difference
 0.2 
 2.7 
Unrecognised surplus at 31 December
 31.1 
 65.9 
10 Retirement and other post-employment benefit arrangements cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
In presenting the above sensitivity analysis, the present value of the defined benefit obligation has been 
calculated using the projected unit credit method at the end of the reporting period, which is the same as 
that applied in calculating the defined benefit obligation liability recognised in the consolidated statement 
of financial position. There was no change in the methods and assumptions used in preparing the sensitivity 
analysis from prior years.
+1%  
US$m
Year ended 
31 December  
2024  
-1%  
US$m
+1%  
US$m
Year ended 
31 December  
2023  
-1%  
US$m
Sensitivity of medical schemes to medical cost trend rate assumptions:
Effect on total service cost and interest cost components of other 
schemes
–
–
–
–
Effect on defined benefit obligation of other schemes
0.5
(0.3)
0.5
(0.5)
xi) Expected contributions for 2025
The total estimated amount to be paid in respect of all of the Group’s retirement and other post-employment 
benefit arrangements during the 2025 financial year (excluding administrative expenses paid by the Company) 
is $6.8 million. 
d) United Kingdom Pension Benefits — High Court of Justice Ruling on Actuarial Confirmations 
In June 2023, the High Court ruled in the case between Virgin Media and the NTL Pension Trustees II Limited 
(and others) that the absence of a “Section 37” certificate accompanying an amendment to benefits in a 
contracted-out pension scheme would render the amendment void, which could potentially lead to additional 
liabilities for some pension schemes and sponsors. The appeal on the Virgin Media and the NTL Pension 
Trustees II Limited (and others) case was dismissed on 25 July 2024. 
Whilst the Coats UK Pension Scheme was only formed in 2018, after the end of contracting out, historic schemes 
whose benefits were transferred into the Scheme did exist in the relevant time period and may have had 
amendments subject to the Section 37 certificate requirement. 
The Trustees of the pension scheme have engaged their legal advisors to review amendments made in the 
scheme during the relevant period. This review has concluded that the majority of amendments are compliant 
with the legislation. However, there remains a minority where further work is to be completed to identify 
whether actuarial certification in respect of these amendments was required and obtained at the time. 
Given the status of the ongoing review, at this time the Group’s current expectation is that no adjustments to 
the Coats UK Pension Scheme defined benefit obligations will be required. The Group and the Trustee of the 
Coats UK Pension Scheme will continue to keep this matter under review.
ix) Duration of plan liabilities
The weighted average duration of benefit obligations is 10 years (2023: 12 years) for the Coats UK scheme and 
10 years (2023: 11 years) for the Coats US scheme.
x) Sensitivities
Sensitivities regarding the discount rate, inflation (which also impacts the rate of increases in salaries and rate of 
increase for pension in payments assumptions for the UK scheme) and mortality assumptions used to measure 
the liabilities of the principal schemes, along with the impact they would have on the scheme liabilities, are set 
out below. Interrelationships between assumptions might exist and the analysis below does not take the effect 
of these interrelationships into account:
+0.25%  
US$m
Year ended 
31 December  
2024  
-0.25%  
US$m
+0.25%  
US$m
Year ended 
31 December  
2023  
-0.25%  
US$m
Coats UK Pension Scheme discount rate
 (39.5)
 41.1 
(55.9)
58.7
Coats US discount rate
 (0.6)
 0.6 
(0.7)
0.7
Coats UK Pension Scheme inflation rate
 26.1 
 (22.7)
32.3
(36.6)
Coats US inflation rate
 – 
 – 
–
–
An increase of 1.0% in the discount rate would result in the Coats UK Pension Scheme and the Coats US scheme 
liabilities decreasing by $149.1 million and $2.3 million (2023: $208.7 million and $2.7 million). A decrease of 
1.0% in the discount rate would result in the Coats UK Pension Scheme and the Coats US scheme liabilities 
increasing by $175.3 million and $2.7 million (2023: $253.1 million and $3.1 million) respectively. The above 
sensitivity analysis (on a IAS 19 basis) considers the impact on the scheme liabilities only and excludes any 
impacts on scheme assets from changes in discount and inflation rates. As noted on page 147, the Coats UK 
Pension Scheme is currently fully bought in and so changes in scheme liabilities due to movements in discount 
and inflation rates would have fully offsetting impacts from the buy-in assets.
If members of the Coats UK Pension Scheme live one year longer the scheme liabilities will increase by 
$61.2 million (2023: $66.3 million), however, there would be no balance sheet impact as the buy-in asset 
would also increase by the same amount. If members of the Coats US scheme live one year longer scheme 
liabilities will increase by $0.4 million (2023: $0.4 million), however, there would be no overall impact on the  
recoverable surplus. 
10 Retirement and other post-employment benefit arrangements cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Profit from continuing operations attributable to equity shareholders for the year ended 31 December 2024 
of $80.6 million (2023: $83.2 million) comprises the profit from continuing operations for the year ended 
31 December 2024 of $100.2 million (2023: $100.8 million) less non-controlling interests for the year ended 
31 December 2024 of $19.6 million (2023: $17.6 million) as reported in the income statement.
12 Dividends
Year ended 31 December
2024  
US$m
2023  
US$m
2024 interim dividend paid – 0.93 cents per share
14.8
–
2023 final dividend paid – 1.99 cents per share
31.7
–
2023 interim dividend paid – 0.81 cents per share
–
13.0
2022 final dividend paid – 1.73 cents per share
–
27.6
46.5
40.6
The proposed final dividend of 2.19 cents per ordinary share for the year ended 31 December 2024 is not 
recognised as a liability in the consolidated statement of financial position in line with the requirements of IAS 
10 Events after the Reporting Period and, subject to shareholder approval, will be paid on 29 May 2025 to 
ordinary shareholders on the register on 2 May 2025, with an ex-dividend date of 1 May 2025.
11 Earnings per share
The calculation of basic earnings per ordinary share from continuing operations is based on the profit from 
continuing operations attributable to equity shareholders and the weighted average number of Ordinary Shares 
in issue during the year, excluding shares held by the Employee Benefit Trust but including shares under share 
incentive schemes which are not contingently issuable.
The calculation of basic earnings per ordinary share from continuing and discontinued operations is based on 
the profit attributable to equity shareholders. The weighted average number of ordinary shares used for the 
calculation of basic earnings per ordinary share from continuing and discontinued operations is the same as 
that used for basic earnings per ordinary share from continuing operations.
For diluted earnings per ordinary share, the weighted average number of ordinary shares in issue is adjusted to 
include all potential dilutive ordinary shares. The Group has two classes of dilutive potential Ordinary Shares: 
those shares relating to awards under the Group Deferred Bonus Plan which have been awarded but not 
yet reached the end of the three year retention period and those long-term incentive plan awards for which 
the performance criteria would have been satisfied if the end of the reporting period were the end of the 
contingency period.
Year ended 31 December
2024  
US$m
2023  
US$m
Profit from continuing operations attributable to equity shareholders
80.6
83.2
Profit from continuing and discontinued operations attributable to equity shareholders
80.1
56.5
Year ended 31 December
2024  
Number of  
shares  
m
2023  
Number of  
shares  
m
Weighted average number of ordinary shares in issue for basic earnings per share
1,604.5
1,605.0
Adjustment for share options and LTIP awards
20.1
 16.4
Weighted average number of ordinary shares in issue for diluted earnings per share
1,624.6
1,621.4 
Year ended 31 December
2024 
cents
2023  
cents
Continuing operations:
Basic earnings per ordinary share
5.03
5.18
Diluted earnings per ordinary share
4.96
 5.13
Continuing and discontinued operations:
Basic earnings per ordinary share
4.99
3.52
Diluted earnings per ordinary share
4.93
 3.48
153
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
The carrying value of the Coats brand at 31 December 2024 and 31 December 2023 is $239.6 million. There is 
no foreseeable limit to the net cash inflows from royalties, which are generated from continued sales of thread 
resulting from the Coats brand, and the brand is therefore assessed as having an indefinite useful life, and as 
such, is reviewed for impairment annually. The recoverable amount of the Coats brand has been estimated 
using the relief from royalty method to calculate the fair value and is re-assessed annually by reference to the 
discounted cash flow arising from the royalties generated by the Coats brand. The fair value measurement 
is categorised in its entirety in line with level 3 of the fair value hierarchy. The valuation has been based on 
the latest budget and Medium Term Plan approved by the Board, covering the period to 31 December 2027, 
applying a pre-tax discount rate of 10.5% (2023: 11.6%) and long-term growth of 2.5% (2023: 2.5%). Management 
believes that no reasonable potential change in any of the above key assumptions would cause the carrying 
value to exceed its recoverable amount. The Coats brand is allocated to cash-generating units (CGUs) that are 
expected to benefit from the Coats brand for the purposes of impairment testing of CGUs.
Goodwill acquired in a business combination is allocated, at acquisition, to the CGUs that are expected to 
benefit from that business combination. 
The carrying amount of goodwill has been allocated as follows:
Year ended 31 December
2024  
US$m
2023  
US$m
Footwear
98.6
100.8
Gotex
11.9
12.6
US and Mexico
–
2.6
Coats Digital
8.2
8.4
Other
1.7
1.7
120.4
126.1
13 Intangible assets
Cost
Acquired intangibles
Computer 
software  
US$m
Total  
US$m
Goodwill  
US$m
Brands &  
trade names  
US$m
Technology  
US$m
Customer 
relationships  
US$m
Total  
acquired  
US$m
At 1 January 2023
124.7
284.5
57.4
166.6
508.5
76.1
709.3
Currency translation differences
1.4
0.6
0.8
2.4
3.8
0.6
5.8
Disposal of subsidiaries
–
–
–
–
–
(1.7)
(1.7)
Additions
–
–
–
–
–
2.0
2.0
Disposals
–
–
–
–
–
(2.1)
(2.1)
At 31 December 2023
126.1
285.1
58.2
169.0
512.3
74.9
713.3
Currency translation differences
(3.1)
(1.0)
(1.6)
(3.7)
(6.3)
(1.0)
(10.4)
Additions
–
–
–
–
–
1.1
1.1
Disposals
–
–
–
–
–
(0.1)
(0.1)
At 31 December 2024
123.0
284.1
56.6
165.3
506.0
74.9
703.9
Cumulative amounts charged
At 1 January 2023
–
3.8
13.6
7.9
25.3
70.6
95.9
Currency translation differences
–
–
0.4
0.2
0.6
0.7
1.3
Amortisation charge for the year
–
4.5
6.1
10.9
21.5
1.4
22.9
Disposal of subsidiaries
–
–
–
–
–
(1.7)
(1.7)
Disposals
–
–
–
–
–
(1.9)
(1.9)
At 31 December 2023
–
8.3
20.1
19.0
47.4
69.1
116.5
Currency translation differences
–
(0.2)
(0.7)
(0.6)
(1.5)
(1.1)
(2.6)
Amortisation charge for the year
–
4.7
5.7
11.2
21.6
1.6
23.2
Impairment charge (see note 4)
2.6
–
0.4
–
0.4
–
3.0
Disposals
–
–
–
–
–
(0.1)
(0.1)
At 31 December 2024
2.6
12.8
25.5
29.6
67.9
69.5
140.0
Net book value at  
31 December 2024
120.4
271.3
31.1
135.7
438.1
5.4
563.9
Net book value at  
31 December 2023
126.1
276.8
38.1
150.0
464.9
5.8
596.8
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
The revenue and margin growth assumptions used in the US and Mexico CGU are sensitive to change. 
A change in these key assumptions could result in a change in the assessed recoverable amount of the CGU. 
Revenue growth and operating margin improvement assumptions in 2028–2029 for the US and Mexico CGU 
are as follows:
Revenue  
growth
2028  
%
Revenue  
growth
2029  
%
Operating 
margin 
improvement
2028  
%
Operating 
margin 
improvement
2029  
%
Terminal
value
growth
rate
%
US and Mexico
3.3
3.3
0.6
0.4
1.9
The following scenarios would result in headroom being completely eliminated in the US and Mexico value in 
use impairment assessment:
–	 the discount rate increasing by 340 bps; or
–	 revenue CAGR for 2025–2029 decreasing to 2%; or
–	 Operating margin for 2029 and the terminal period decreasing by 230 bps.
The carrying value of the goodwill allocated to the Footwear, Gotex and Coats Digital CGUs has also been 
tested for impairment during the year by comparing the carrying value of the CGU to their value in use. 
As set out in note 4, the Group announced the closure of its Performance Materials site in Toluca, Mexico in 
December 2024, as part of the reorganisation of North America Yarns footprint. In light of this reorganisation, 
the goodwill allocated to the US and Mexico CGU of $2.6 million, which previously arose from North America 
Yarns acquisitions in 2017 and 2020, was fully impaired. Excluding the assets impacted by the Toluca, Mexico 
site closure, which were reviewed for impairment separately (see note 4), the remaining assets in the US and 
Mexico CGU have been tested for impairment by comparing the carrying value of the CGU to its value in use. 
The key assumptions used in the value in use calculation are set out below. 
The value in use calculations were based on projected cash flows, derived from the latest budgets approved 
by the Board and factoring in the most recent trading activity. Projected cash flows are, discounted at CGU 
specific, risk adjusted, discount rates to calculate the net present value.
The calculation of ‘value in use’ is most sensitive to the following assumptions:
–	 CGU specific operating assumptions that are reflected in the budget and Medium Term Plan periods for the 
financial year to December 2027;
–	 discount rates; and
–	 growth rates used to extrapolate risk adjusted cash flows beyond the medium-term period.
CGU specific operating assumptions are applicable to the cash flows for the years 2025 to 2027 and relate to 
revenue forecasts and forecast operating margins. A short-term growth rate is applied to the December 2027 
plan to derive the cash flows arising in 2028–2029 and a long-term rate is applied to 2029 to determine a 
terminal value. 
The pre-tax discount rates applied to the cash flow forecasts are derived from the Group’s post-tax weighted 
average cost of capital. The Group’s weighted average cost of capital is based on estimations of the assumptions 
that market participants operating in similar sectors to Coats would make, using the Group’s economic profile 
as a starting point and adjusting appropriately. The pre-tax base discount rate of 10.5% (2023: 11.6%) has been 
adjusted for economic risks that are not already captured in the specific operating assumptions. This results in 
the impairment testing using a pre-tax discount rate of 11.2% for Footwear, 13.3% for Gotex, 10.4% for US and 
Mexico, and 14.7% for Coats Digital. 
Revenue growth rate assumptions in 2028-2029 are 8.0-8.0% for Footwear, 6.5-7.0% for Gotex, and 18.3-18.4% 
for Coats Digital, and terminal value growth rate assumptions are 2.5% for Footwear, 1.7% for Gotex, and 2.5% 
for Coats Digital.
13 Intangible assets cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Analysis of net book value of land and buildings 31 December
2024  
US$m
2023  
US$m
Freehold
54.5
57.8
Leasehold improvements:
Over 50 years unexpired
2.4
2.5
Under 50 years unexpired
9.6
10.0
66.5
70.3
The impairment charge of $17.2 million in the year ended 31 December 2024 relates to the rightsizing of the 
North America Yarns footprint and footprint optimisation Strategic Projects (see note 4). For the property, plant 
and equipment relating to the Toluca site, the Group applied the fair value less costs of disposal approach to 
identify the best estimate of the impairment charge. This method uses inputs that are unobservable, using 
the best information available in the circumstances for valuing the specific assets subject to impairment, and 
therefore falls into the level 3 category of fair value measurement. The remaining property, plant and equipment 
for the US and Mexico CGU was reviewed for impairment using the value in use method, as set out in note 13. 
In addition, an impairment charge of $2.2 million was also recognised in the year ended 31 December 2024 in 
relation to the Toluca site right-of-use asset. The assumptions made in determining the amount of the impairment 
charge of the right-of-use asset were the expected timing and cost of exiting the lease. 
15 Leases
The Group leases several assets including buildings, plants, vehicles and office equipment. The average 
lease term is 4 years (2023: 4 years). The Group’s consolidated balance sheet includes the following amounts 
relating to leases:
Right-of-use assets
Net carrying amount
Land and 
buildings  
US$m
Plant and 
equipment  
US$m
Vehicles 
and office 
equipment  
US$m
Total  
US$m
At 1 January 2024
67.3
1.7
5.4
74.4
At 31 December 2024
59.0
4.4
5.5
68.9
Depreciation expense for the year ended
31 December 2023
15.0
1.4
2.4
18.8
31 December 2024
14.3
1.0
2.7
18.0
Additions to the right-of-use assets during the year ended 31 December 2024 were $18.3 million 
(2023: $9.6 million).
14 Property, plant and equipment
Cost
Land and 
buildings  
US$m
Plant and 
equipment  
US$m
Vehicles 
and office 
equipment  
US$m
Total  
US$m
At 1 January 2023
157.4
529.1
60.9
747.4
Currency translation differences
(0.3)
(6.1)
0.2
(6.2)
Application of IAS 29 (see note 1)
–
1.5
–
1.5
Disposal of subsidiaries (see note 31)
(9.0)
(40.3)
(4.2)
(53.5)
Additions
0.5
23.9
1.5
25.9
Transfer to non-current assets held for sale
(2.5)
–
–
(2.5)
Disposals
(15.1)
(49.2)
(6.5)
(70.8)
At 31 December 2023
131.0
458.9
51.9
641.8
Currency translation differences
(2.1)
(11.7)
(0.7)
(14.5)
Application of IAS 29 (see note 1)
–
1.5
–
1.5
Additions
4.8
22.4
1.9
29.1
Disposals
(1.2)
(3.5)
(2.1)
(6.8)
At 31 December 2024
132.5
467.6
51.0
651.1
Cumulative amounts charged
At 1 January 2023
75.4
 363.2
52.5
491.1
Currency translation differences
–
(3.9)
0.2
(3.7)
Depreciation charge for the year
5.1
19.3
2.6
27.0
Impairment charge (see note 4)
1.2
0.5
–
1.7
Transfer to non-current assets held for sale
(1.5)
–
–
(1.5)
Disposal of subsidiaries (note 31)
(7.6)
(39.3)
(4.2)
(51.1)
Disposals
(11.9)
(46.5)
(6.5)
(64.9)
At 31 December 2023
60.7
293.3
44.6
398.6
Currency translation differences
(1.1)
(8.4)
(0.9)
(10.4)
Depreciation charge for the year
4.4
18.9
2.1
25.4
Impairment charge (see note 4)
2.5
14.6
0.1
17.2
Disposals
(0.5)
(3.8)
(1.7)
(6.0)
At 31 December 2024
66.0
314.6
44.2
424.8
Net book value at 31 December 2024
66.5
153.0
6.8
226.3
Net book value at 31 December 2023
70.3
165.6
7.3
243.2
156
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OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
16 Non-current investments
Year ended 31 December
2024  
US$m
2023  
US$m
Interests in joint ventures (see below)
13.7
12.8
Investments in equity securities: Unlisted investments
0.6
0.9
14.3
13.7
Interests in joint ventures
US$m
At 1 January 2023
12.8
Dividends receivable
(1.0)
Share of profit after tax
1.9
At 31 December 2024
13.7
Year ended 31 December
2024  
US$m
2023  
US$m
Share of net assets on acquisition
10.6
11.3
Disposals
–
(0.7)
Share of post-acquisition retained profits
3.1
2.2
Share of net assets
13.7
12.8
The following table provides summarised financial information on the Group’s share of its joint ventures, 
relating to the period during which they were joint ventures, and excludes goodwill:
Year ended 31 December
2024  
US$m
2023 
US$m
Summarised income statement information:
Revenue
28.7
24.7
Profit before tax
2.5
1.5
Taxation
(0.6)
(0.4)
Profit after tax
1.9
1.1
Year ended 31 December
2024  
US$m
2023  
US$m
Summarised balance sheet information:
Non-current assets
5.2
4.8
Current assets
17.4
16.1
22.6
20.9
Liabilities due within one year
(8.9)
(8.1)
Net assets
13.7
12.8
Lease liabilities

Year ended 31 December
2024  
US$m
2023  
US$m
Current
16.6
17.5
Non-current
66.6
69.3
83.2
86.8
Lease liability maturity analysis
Undiscounted 
2024  
US$m
Undiscounted
2023 
US$m
Discounted
2024 
US$m
Discounted
2023  
US$m
Payable within one year
20.8
22.0
16.6
17.5
Payable between one and two years
17.7
16.0
14.0
12.3
Payable between two and five years
43.4
38.8
37.0
31.5
Payable after more than five years
19.3
30.6
15.6
25.5
At 31 December 2024
101.2
107.4
83.2
86.8
The net decrease in lease liabilities during the year ended 31 December 2024 was $3.6 million (2023: increase 
$18.6 million) which includes foreign exchange gains on lease liabilities of $2.6 million (2023: $1.1 million). 
The total cash outflow for leases in the year ended 31 December 2024 was $24.3 million (2023: $24.1 million).
The Group’s consolidated income statement includes the following amounts relating to leases:
Year ended 31 December
2024 
US$m
2023  
US$m
Depreciation expense
18.0
18.8
Interest expense on lease liabilities
5.2
5.6
Expenses relating to short-term leases
0.2
0.3
Expenses relating to leases of low value assets
0.1
0.1
Expense relating to variable lease payments not included in the measurement of the lease liability
1.8
1.7
Impairment of right-of-use assets 
3.3
4.6
Income from subleasing right-of-use assets
(0.1)
(0.1)
The Group subleases some of its right-of-use assets. At the balance sheet date, the Group had contracted 
with tenants for receipt of the following minimum lease payments:
Year ended 31 December
2024  
US$m
2023  
US$m
Receivable within one year
0.1
0.1
Receivable between one and two years
0.1
–
0.2
0.1
15 Leases cont.
157
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OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
19 Trade and other receivables
Year ended 31 December
2024  
US$m
2023  
US$m
Non-current assets:
Trade receivables
6.5
2.9
Other receivables
13.7
14.0
Current income tax assets
2.4
–
Prepaid pension contributions
2.4
2.6
25.0
19.5
Current assets:
Trade receivables
245.7
238.1
Current income tax assets
2.8
1.2
Prepayments and accrued income
7.3
7.6
Derivative financial instruments
0.9
1.3
Prepaid pension contributions
2.2
2.3
Other receivables
33.3
41.5
292.2
292.0
The fair value of trade and other receivables is not materially different to the carrying value. Other receivables 
includes VAT and other taxes receivable.
Interest charged in respect of overdue trade receivables is immaterial.
Included within trade receivables is $14.8 million (2023: $11.1 million) relating to software solutions revenue 
contracts, for which performance obligations are fulfilled over a period of time (see note 21).
The Group applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which 
requires the use of the lifetime expected loss provision for all trade receivables. Credit risk is minimised due to 
the quality and short-term nature of the Group’s trade receivables as well as the fact that the exposure is spread 
over a large number of customers. An allowance has been made for expected losses on trade receivables of 
$10.1 million (2023: $7.3 million).
The Group monitors receivables for any significant increases in credit risk, and fully provides for trade receivables 
which are more than 6 months overdue, unless there are specific circumstances which would indicate otherwise. 
For all other trade receivables, when determining expected losses, the Group takes into account the historical 
default experience and the financial position of the counterparties, as well as the future prospects considering 
various sources of information. Impairment has been considered for other receivables, and is considered not 
to be significant.
17 Deferred tax assets
Year ended 31 December
2024  
US$m
2023  
US$m
Deferred tax assets
13.6
18.0
The Group’s deferred tax assets are included within the analysis in note 24.
The movements in the Group’s deferred tax asset during the year were as follows:
2024 
US$m
2023  
US$m
At 1 January
18.0
24.4
Currency translation differences
(0.3)
(1.1)
Charged to the income statement
(3.5)
(5.1)
Charged to other comprehensive income and expense
(0.6)
(0.2)
At 31 December
13.6
18.0
18 Inventories
Year ended 31 December
2024  
US$m
2023  
US$m
Raw materials and consumables
93.8
84.9
Work in progress
17.0
22.0
Finished goods and goods for resale
65.3
66.6
176.1
173.5
158
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FINANCIAL STATEMENTS
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OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
21 Trade and other payables
The fair values of these financial instruments are calculated by discounting the future cash flows to net present 
values using appropriate market interest and foreign currency rates prevailing at the year end.
Year ended 31 December
2024  
US$m
2023  
US$m
Amounts falling due within one year:
Trade payables
167.2
163.2
Amounts owed to joint ventures
16.1
15.3
Other tax and social security payable
4.3
5.6
Other payables
23.9
33.7
Accruals 
43.1
38.7
Contract liabilities
9.5
11.1
Derivative financial instruments
2.3
3.6
Employee entitlements 
32.8
14.4
299.2
285.6
Amounts falling due after more than one year:
Contract liabilities
7.2
1.6
Employee entitlements 
0.2
1.6
7.4
3.2
The fair value of trade and other payables is not materially different to the carrying value.
Interest paid to suppliers in respect of overdue trade payables is immaterial. 
Contract liabilities amounting to $7.2 million (2023: $5.9 million) which were outstanding at 31 December 2023 
were released to revenue during the year ended 31 December 2024, with the remainder expected to be 
released in 2025.
The loss allowance has been determined as follows:
Current
1–3 months past 
due
3–6 months 
past due
6+ months past 
due
Total  
2024
Expected loss rate
0.2%
3%
35%
83%
Gross carrying amount (US$m)
226.6
23.0
3.1
9.6
262.3
Loss allowance provision (US$m)
0.4
0.6
1.1
8.0
10.1
Current
1–3 months past 
due
3–6 months past 
due
6+ months past 
due
Total  
2023
Expected loss rate
0.2%
2%
27%
79%
Gross carrying amount (US$m)
213.5
25.4
2.2
7.2
248.3
Loss allowance provision (US$m)
0.4
0.4
0.6
5.9
7.3
The movements in the expected loss allowance are analysed as follows:
2024  
US$m
2023  
US$m
At 1 January
7.3
7.6
Currency translation differences
(0.3)
(0.1)
Disposal of subsidiaries
–
(0.9)
Charged to the income statement
3.6
1.6
Amounts written off during the year
(0.5)
(0.9)
At 31 December
10.1
7.3
As at 1 January 2023, trade receivables amounted to $236.4 million (net of loss allowance of $7.6 million).
20 Derivative financial instruments – assets
Derivative financial instruments within current assets comprise:
Year ended 31 December
2024  
US$m
2023  
US$m
Fair value through the income statement:
Forward foreign currency contracts
0.9
1.3
Amounts shown within current assets
0.9
1.3
19 Trade and other receivables cont.
159
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FINANCIAL STATEMENTS
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OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
In August 2024 the Group refinanced its bank facility and entered into a $420 million three year bank facility, 
with the ability for two one-year extensions. The facility bears interest at the risk free rate plus a margin. 
In February 2023, the Group completed the refinancing of the Texon acquisition term loan of $240 million, 
which had been fully drawn down in July 2022, via the US Private Placement (USPP) market with $250 million 
of notes. $150 million 5.26% Series A Senior Notes are due on 16 February 2028 and $100 million 5.37% Series 
B Senior Notes are due on 16 February 2030. 
The Group also issued $100 million of 4.07% Series B Senior Notes in December 2017, which are due on 
6 December 2027. 
Interest on all Senior Notes is payable semi-annually in arrears. The Senior Notes are unsecured and rank 
equally with all the Group’s other unsecured and unsubordinated indebtedness.
The currency and interest rate profile of the Group’s borrowings is included in note 33 on page 172.
24 Deferred tax liabilities
2024  
US$m
2023  
US$m
At 1 January
63.9
78.2
Currency translation differences
(1.7)
(0.2)
Credited to the income statement
(4.2)
(14.1)
At 31 December
58.0
63.9
22 Derivative financial instruments – liabilities
Derivative financial instruments within current liabilities comprise:
Year ended 31 December
2024  
US$m
2023  
US$m
Fair value through the income statement:
Forward foreign currency contracts
2.3
1.8
Interest rate swap contracts
–
1.8
Amounts shown within current liabilities
2.3
3.6
The fair values of these financial instruments are calculated by discounting the future cash flows to net present 
values using appropriate market interest and foreign currency rates prevailing at the year end.
23 Borrowings
Year ended 31 December
2024  
US$m
2023  
US$m
Bank overdrafts
0.2
20.9
Borrowings repayable within one year
–
123.4
Due within one year
0.2
144.3
Borrowings repayable between two and five years
246.8
272.7
Due after more than five years
348.3
99.5
Due after more than one year
595.1
372.2
Bank overdrafts
0.2
20.9
Series A and Series B Senior Notes
595.1
472.3
Bank and other borrowings 
–
23.3
595.3
516.5
In December 2024, the Group completed the refinancing of the $125 million Series A Senior Notes, issued 
in 2017, via the US private placement (USPP) market with $250 million of notes. $100 million 5.36% Series A 
Senior Notes are due on 4 December 2030, $100 million 5.44% Series B Senior Notes are due on 4 December 
2031 and $50 million 5.54% Series C Senior Notes are due on 4 December 2034. 
160
STRATEGIC REPORT
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FINANCIAL STATEMENTS
TCFD
OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
At 31 December 2024 the Group had approximately $1.9 billion (2023: $1.6 billion) of unused gross revenue 
losses, approximately $1.4 billion (2023: $1.4 billion) of unused gross capital losses. A deferred tax asset of 
$59.6 million (2023: $65.2 million) has been recognised in respect of $251.2 million (2023: $277.2 million) of 
such income tax losses. No deferred tax asset has been recognised in respect of the remaining losses due to 
lack of certainty regarding the availability of future taxable income. 
The Group’s income tax losses can be analysed as follows:
2024  
US$m
2023  
US$m
Expiring within 5 years
24.7
23.2
Expiring in more than 5 years
53.7
19.0
Available indefinitely
1,824.8
1,573.5
1,903.2
1,615.7
At 31 December 2024, the Group has not recognised a deferred tax asset in respect of other gross deductible 
temporary differences of $69.6 million (2023: $62.1 million). These deferred tax assets have not been recognised 
on the basis that their future economic benefit is uncertain. Timing differences are only recognised in the 
financial statements to the extent that it is considered more likely than not that sufficient future taxable profits 
will be available for offset.
At 31 December 2024, the aggregate amount of temporary differences associated with undistributed earnings 
of subsidiaries for which deferred tax liabilities have not been recognised is $14.2 million (2023: $8.6 million). 
Deferred tax on distribution of these profits of $184.7 million at 31 December 2024 (2023: $116.1 million) has 
not been provided on the grounds that the Group is able to control the timing of the reversal of the remaining 
temporary differences and it is probable that they will not reverse in the foreseeable future.
25 Provisions
Year ended 31 December
2024  
US$m
2023  
US$m
Provisions are included as follows:
Current liabilities
26.5
17.1
Non-current liabilities
25.1
19.3
51.6
36.4
2024
 2023 
Provided/ 
(recognised)  
US$m
Unprovided/ 
(unrecognised)  
US$m
Provided/ 
(recognised)  
US$m
Unprovided/  
(unrecognised)  
US$m
The Group’s net deferred tax liabilities/(assets) are analysed 
as follows:
Accelerated tax depreciation on tangible fixed assets
(1.3)
0.2
(3.8)
0.1
Other temporary differences
(20.6)
(8.8)
(5.8)
(7.3)
Revenue losses carried forward1
(59.6)
(408.1)
(65.2)
(330.1)
Capital losses carried forward
–
(369.5)
–
(362.8)
Investment in subsidiaries
12.0
14.2
10.0
8.6
Acquired intangibles
107.1
–
104.3
–
Retirement benefit obligations
6.8
(10.9)
6.4
(0.7)
44.4
(782.9)
45.9
(692.2)
1.	 Revenue losses include restricted interest amounts available for future reactivation. 
Certain deferred tax assets and liabilities have been offset. The following is the analysis of the deferred tax 
balances (after offset) for financial reporting purposes:
2024
 2023 
Provided/ 
(recognised)  
US$m
Provided/ 
(recognised)  
US$m
Deferred tax assets (note 17)
(13.6)
(18.0)
Deferred tax liabilities
58.0
63.9
44.4
45.9
A deferred tax liability is recognised in respect of the taxable temporary difference on the Coats brand intangible 
asset owned in the UK. This is fully offset by an equivalent deferred tax asset recognised in respect of tax 
attributes in the same jurisdiction. These tax attributes are expected to be utilised against the taxable income 
arising on a reversal of the taxable temporary difference in respect of the brand. In the analysis of the Group’s 
deferred tax balances above, the amounts are disclosed on a gross basis.
The amount of the UK deferred tax asset that can be recognised is dependent on the time period over which 
the taxable temporary difference reverses, and in certain jurisdictions including the UK, is impacted by the 
restriction on utilisation of brought forward tax losses, after utilisation of current year tax attributes. For the 
purpose of deferred tax asset recognition the Group takes the view that any future reversal of the taxable 
temporary difference on the Coats brand intangible will take place over an extended period of time, and 
consequently any taxable income will be fully offset by available losses and other tax attributes in each individual 
accounting period.
24 Deferred tax liabilities cont. 
161
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FINANCIAL STATEMENTS
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OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
27 Reserves and non-controlling interests
Share  
premium  
account  
US$m
Own  
shares  
US$m
Translation 
reserve  
US$m
Capital  
reduction  
reserve  
US$m
Other  
reserves  
US$m
Retained 
(loss)/ 
profit  
US$m
Non- 
controlling 
interests  
US$m
At 1 January 2024
111.4
(6.1)
(109.7)
59.8
246.3
157.4
31.3
Dividends
–
–
–
–
–
(46.5)
(18.0)
Currency translation differences 
–
–
(20.0)
–
–
–
(0.4)
Actuarial losses on employee 
benefits
–
–
–
–
–
(225.1)
–
Tax on actuarial gains 
–
–
–
–
–
(0.6)
–
Purchase of own shares
–
(8.7)
–
–
–
–
–
Movement in own shares
–
9.5
–
–
–
(8.6)
–
Share based payments
–
–
–
–
–
7.9
–
Profit for the year 
–
–
–
–
–
80.1
19.6
At 31 December 2024
111.4
(5.3)
(129.7)
59.8
246.3
(35.4)
32.5
Other reserves of $246.3 million in the above table relate to legacy non-distributable reserves, which arose 
during the period when the Group was part of the Guinness Peat Group. 
The table below shows financial information of non-wholly owned subsidiaries of the Group that have 
non‑controlling interests:
Profit allocated to  
non-controlling interests
Accumulated  
non-controlling interests
Year ended  
31 December  
2024  
US$m
Year ended 
31 December  
2023  
US$m
31 December  
2024  
US$m
31 December  
2023  
US$m
EMEA
–
0.9
1.4
1.7
Asia & Rest of World 
19.6
16.7
31.1
29.6
19.6
17.6
32.5
31.3
The proportion of ownership interests and voting rights of non-wholly owned subsidiaries of the Group held by 
non-controlling interests is set out on pages 201 to 206.
Provisions are analysed as follows:
Year ended 31 December
2024  
US$m
2023  
US$m
Property related provisions
2.3
3.4
UK pension related provisions
14.5
–
Other provisions
34.8
33.0
51.6
36.4
Property related 
provisions  
US$m
UK pension 
related
provisions
US$m
Other  
provisions  
US$m
Total  
US$m
At 1 January 2024
3.4
–
33.0
36.4
Currency translation differences
–
–
(0.5)
(0.5)
Charged to the income statement
0.4
8.5
22.8
31.7
Charged to other comprehensive income
–
6.8
–
6.8
Utilised in year
(1.5)
(0.8)
(20.5)
(22.8)
At 31 December 2024
2.3
14.5
34.8
51.6
As set out in note 4 and note 10, following the buy-in transaction in the current year, the Group recognised 
provisions of $6.8 million and $8.5 million, in relation to completing the buy-in transaction and administrative 
costs for the UK Pension Scheme. Other provisions include amounts in relation to strategic projects (see note 
4) of $9.9 million (2023: $3.2 million) as well as amounts set aside to cover certain legal and other regulatory 
claims, including $11.2 million in respect of the Lower Passaic River (see note 28 for further details), which are 
expected to be substantially utilised within the next ten years.
26 Share capital
Year ended 31 December
2024
2023
Number
US$m
Number
US$m
Ordinary Shares of 5p each
1,597,810,385
99.0
1,597,810,385
99.0
As at 1 January 2023 the company had 1,597,810,385 Ordinary shares in issue. The company has one class of 
Ordinary shares which carry no right to fixed income. 
The own shares reserve of $5.3 million at 31 December 2024 (2023: $6.1 million) represents the cost of shares 
in Coats Group plc purchased in the market and held by an Employee Benefit Trust to satisfy awards under the 
Group’s share based incentive plans. The number of shares held by the Employee Benefit Trust at 31 December 
2024 was 4,905,769 (2023: 6,124,223).
Details of share awards outstanding under the Group’s LTIP and Deferred Bonus Plans are set out in note 34.
25 Provisions cont.
162
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FINANCIAL STATEMENTS
TCFD
OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
In March 2017, EPA notified 20 parties not associated with the disposal or release of any contaminants of 
concern that they were eligible for early cash out settlements. As expected, EPA did not identify CC as one 
of those 20 parties. EPA invited approximately 80 other parties, including CC, to participate in an allocation 
process to determine their respective allocation shares and potential eligibility for future cash out settlements. 
In the allocation, CC presented factual and scientific evidence that it is not responsible for the discharge of 
dioxins, furans or PCBs – the contaminants that are driving the remediation of the LPR – and that it is a de 
minimis or even smaller de micromis party. The allocation process concluded in December 2020. The EPA-
appointed allocator determined that CC is in the lowest tier (Tier 5) of allocation parties, and is responsible for 
only a de micromis share of remedial costs.
On 30 June 2018, OCC filed a lawsuit against approximately 120 defendants, including CC, seeking recovery of 
past environmental costs and contribution toward future environmental costs. OCC released claims for certain 
past costs from 41 of the defendants, including CC, and is not seeking recovery of those past costs from CC. 
OCC’s lawsuit seeks resolution of many of the same issues addressed in the EPA sponsored allocation process, 
and does not alter CC’s defences or CC’s continued belief that it is a de micromis party. 
In 2015, a provision totalling $15.8 million was recorded for remediation costs for the entire 17 miles of the 
LPR and the estimated associated legal and professional costs in defence of CC’s position. The provision for 
remediation costs was based on CC’s estimated share of de minimis costs for (a) EPA’s selected remedy for 
the lower 8 miles of the LPR and (b) the remedy for the upper 9 miles proposed by the CPG, which was later 
substantively adopted by the EPA. This charge to the income statement was net of insurance reimbursements 
and was stated on a net present value basis. During the year ended 31 December 2018, an additional provision 
of $8.0 million was recorded as an exceptional item to cover legal and professional fees. 
At the end of 2023, CC’s insurer was placed into liquidation. As a result, the previously recognised insurance 
receivable for future expected partial recovery of remediation costs and associated legal and professional 
costs was treated for accounting purposes as being impaired in full resulting in an exceptional charge of 
$3.6 million being recognised for the year ended 31 December 2023, without prejudice to any future claims 
against the insurer in the liquidation proceedings. 
At 31 December 2024, the remaining provision was $11.2 million (31 December 2023: $12.2 million). The process 
concerning the LPR continues to evolve and these estimates are subject to change based upon legal defence 
costs associated with the EPA process and OCC’s lawsuit, the share of remedial costs to be paid by the major 
polluters on the river, and the share of remaining remedial costs apportioned among CC and other companies. 
28 Contingent liabilities and environmental matters
Environmental matters
As noted in previous reports, in December 2009, the US Environmental Protection Agency (‘EPA’) notified 
Coats & Clark, Inc. (‘CC’) that CC is a ‘potentially responsible party’ (‘PRP’) under the US Superfund law for 
investigation and remediation costs at the 17-mile Lower Passaic River Study Area (‘LPR’) in New Jersey in 
respect of alleged operations of a predecessor’s former facilities in that area prior to 1950. Over 100 PRPs have 
been identified by EPA. In 2011, CC joined a cooperating parties group (‘CPG’) of companies formed to fund 
and conduct a remedial investigation and feasibility study of the area. 
CC has analysed its predecessor’s operating history prior to 1950, when it left the LPR, and has concluded that 
it was not responsible for the contaminants and environmental damage that are the primary focus of the EPA 
process. CC also believes that there are many parties that will participate in the LPR’s remediation, including 
those that are the most responsible for its contamination. 
In March 2016, EPA issued a Record of Decision selecting a remedy for the lower 8 miles of the LPR at an 
estimated cost of $1.38 billion on a net present value basis. In September 2021, EPA issued a Record of Decision 
selecting an interim remedy for the upper 9 miles of the LPR (involving targeted removal of contaminants and 
ongoing monitoring to assess whether additional contaminant removal would be necessary), at an estimated 
cost of $441 million on a net present value basis. 
EPA has entered into an administrative order on consent (‘AOC’) with Occidental Chemical Corporation (‘OCC’), 
which has been identified as being responsible for the most significant contamination in the river, concerning 
the design of the selected remedy for the lower 8 miles of the LPR.
Maxus Energy Corporation (‘Maxus’), which provided an indemnity to OCC that covered the LPR, has been 
granted Chapter 11 bankruptcy protection, but OCC remains responsible for its remedial obligations even in 
the absence of Maxus’ indemnity. The approved bankruptcy plan created a liquidating trust to pursue potential 
claims against Maxus’ parent entity, YPF SA, and potentially others. A settlement of those claims is expected 
to result in additional funding for the LPR remedy. 
While the ultimate costs of the remedial design and the final remedy for the full 17-mile LPR are expected to 
be shared among more than a hundred parties, including many who are not currently in the CPG, a pending 
settlement involving CC and other parties has not yet been approved by the court and the share of payments 
for other parties has not yet been determined. 
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
30 Notes to the consolidated cash flow statement
a) Reconciliation of operating profit to cash generated from operations
Year ended 31 December
2024  
US$m
2023  
US$m
Operating profit1
199.8
184.0
Depreciation of owned property, plant and equipment
25.4
27.0
Deprecation of right-of-use assets
18.0
18.8
Amortisation and impairment of intangible assets 
26.2
22.9
Impairment of property, plant and equipment and other assets
18.9
9.4
(Increase)/decrease in inventories
(9.4)
21.1
Increase in debtors
(16.4)
(22.8)
Increase in creditors
26.5
18.9
Provisions and pension movements 
(93.0)
(53.1)
Foreign exchange and other non-cash movements
2.1
(4.9)
Discontinued operations
(1.4)
(4.0)
Cash generated from operations
196.7
217.3
1.	 Refer to the consolidated income statement for a reconciliation of profit before taxation to operating profit from continuing operations.
In connection the UK pension buy-in transaction, which represents a significant step in Coats fully insuring 
its UK pension obligations (see note 10), additional funding was provided to the UK pension scheme by the 
Group totalling $127.8 million. The Group made a $89.5 million (£70 million) upfront cash contribution to the 
scheme and a further $38.3 million (£30 million) was provided to the UK pension scheme as a loan. The upfront 
cash contribution is included in cash generated from operations in the consolidated statement of cash flows. 
The cash paid to the UK pension scheme as a loan is included in cash absorbed in investing activities in the 
consolidated statement of cash flows. The cash paid to the UK pension scheme as a loan is included in cash 
absorbed in investing activities in the consolidates statement of cash flows. Cash generated from operations 
and net cash from operations (after interest and tax paid) for the year ended 31 December 2024 was $286.2 
million (2023: $217.3 million) and $185.3 million (2023: $123.9 million) respectively excluding the upfront cash 
contribution to the UK pension scheme. 
b) Interest paid
Year ended 31 December
2024  
US$m
2023  
US$m
Interest paid
(31.5)
(33.7)
28 Contingent liabilities and environmental matters cont.
In 2022, CC and other parties entered into a settlement with EPA in which the settling parties agreed to pay 
$150 million toward remediation of the full 17-mile LPR in exchange for a release for those matters addressed in 
the settlement. CC’s share of the cash-out settlement is consistent with a de micromis share of total remedial 
costs for the full 17-mile LPR. EPA has indicated it will seek the balance of LPR remedial costs from OCC and a 
small number of other parties that EPA has determined were not eligible to participate in a cash-out settlement. 
These other parties would be responsible for most remedial costs over-runs. The settlement does not address 
claims for natural resource damages by federal natural resource trustees. The Group believes that CC’s share, 
if any, of such costs would be de micromis.
In late 2022, the cash-out settlement for the full 17-mile LPR was lodged with the court by the Department of 
Justice (DOJ) on behalf of EPA. In January 2024, DOJ moved for entry of the settlement on behalf of EPA, with 
amendments that are not material to CC. In December 2024, the court approved the settlement, finding that it 
is fair and reasonable and consistent with applicable law. OCC is opposed to the settlement and has appealed 
the court’s approval. Although the Company believes the court’s approval of the settlement is well founded, 
it is nonetheless possible that the appellate court could reverse the lower court’s approval in whole or in part. 
It is also possible that the lower court may permit OCC’s separate private party litigation against the settling 
parties to continue in whole or in part. Because of these continued uncertainties, the Group is maintaining its 
current provision for the LPR for the present time. 
Coats believes that CC’s predecessor did not generate any of the contaminants which are driving the current 
and anticipated remedial actions in the LPR, that it has valid legal defences which are based on its own analysis 
of the relevant facts, that the EPA-appointed allocator correctly concluded that it has a de micromis share of 
the total remediation costs, and that OCC and other parties will be responsible for a significant share of the 
ultimate costs of remediation. As this matter evolves, the provision may be reduced if the settlement is approved 
by the court and if the court bars further litigation against CC and other settling parties. It is nonetheless still 
possible that additional provisions could be recorded and that such provisions could increase materially based 
on further decisions by the court, negotiations among the parties and other future events.
Following the sale of the North America Crafts business, including CC, announced on 22 January 2019, Coats 
North America Consolidated Inc. (the seller) retains the control and responsibility for the eventual outcome of 
the ongoing LPR environmental matters. 
29 Capital commitments
As at 31 December 2024, the Group had commitments of $5.0 million in respect of contracts placed for future 
capital expenditure (2023: $8.7 million). 
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
For financial covenant purposes under the Group’s borrowing arrangements, the Group’s leverage is calculated 
on the basis of net debt without IFRS 16 lease liabilities and at the Coats Group Finance Company Limited level. 
Net debt excluding IFRS 16 lease liabilities at the Coats Group Finance Company Limited level at 31 December 
2024 for covenant purposes was $454.3 million (31 December 2023: $388.8 million).
The components of net debt and movements during the periods are set out below:
Series A  
and Series B  
Senior Notes  
US$m
Bank  
loans  
US$m
Lease  
liabilities  
US$m 
Total  
financing  
activity  
liabilities  
US$m
Bank 
overdrafts  
US$m
Cash  
at bank  
and in hand  
US$m
Net debt  
US$m
At 1 January 2023
(222.3)
(329.8)
(105.4)
(657.5)
(14.7)
172.4
(499.8)
Financing cash flows
(248.6)
307.0
18.5
76.9
–
–
76.9
Other cash flows
–
–
5.6
5.6
(6.2)
(36.0)
(36.6)
Disposal of subsidiaries 
–
–
0.9
0.9
–
(1.2)
(0.3)
Non-cash movements
(1.4)
(1.3)
(7.5)
(10.2)
–
–
(10.2)
Foreign exchange
–
0.8
1.1
1.9
–
(2.8)
(0.9)
At 31 December 2023
(472.3)
(23.3)
(86.8)
(582.4)
(20.9)
132.4
(470.9)
Financing cash flows
(123.7)
28.0
19.2
(76.5)
–
–
(76.5)
Other cash flows
–
–
5.2
5.2
20.7
9.8
35.7
Non-cash movements
0.9
(4.7)
(18.2)
(22.0)
–
–
(22.0)
Foreign exchange
–
–
(2.6)
(2.6)
–
3.8
1.2
At 31 December 2024 
(595.1)
–
(83.2)
(678.3)
(0.2)
146.0
(532.5)
The non-cash movement during the year ended 31 December 2024 of $18.2 million (2023: $7.5 million) 
within lease liabilities relates to the following: the unwind of lease liabilities of $5.2 million (2023: $5.6 million) 
and the impact of entering into new leases, disposals and modification of existing leases of $13.0 million 
(2023: $1.9 million). 
Total interest paid during the year ended 31 December 2024 was $31.5 million (2023: $33.7 million), which 
primarily relates to the above Senior Notes, bank loans and overdrafts and lease liabilities. Total interest charged 
to the profit and loss account for the year ended 31 December 2024 for the above Senior Notes, bank loans 
and overdrafts and lease liabilities was $36.5 million (2023: $35.9 million).
c) Taxation paid
Year ended 31 December
2024  
US$m
2023  
US$m
Overseas tax paid
(69.4)
(59.7)
d) Investment income
Year ended 31 December
2024  
US$m
2023  
US$m
Dividends received from joint ventures
1.0
0.6
e) Capital expenditure and financial investment
Year ended 31 December
2024  
US$m
2023  
US$m
Purchase of property, plant and equipment and intangible assets
(27.7)
(31.0)
Purchase of other equity investments
–
(0.4)
Proceeds from disposal of property, plant and equipment
3.7
11.8
Discontinued operations
–
(0.1)
(24.0)
(19.7)
f) Acquisitions and disposals of businesses
Year ended 31 December
2024  
US$m
2023  
US$m
Disposal of businesses
–
(1.2)
–
(1.2)
g) Summary of net debt
Year ended 31 December
2024  
US$m
2023  
US$m
Cash and cash equivalents
146.0
132.4
Bank overdrafts
(0.2)
(20.9)
Net cash and cash equivalents
145.8
111.5
Borrowings (see note 23)
(595.1)
(495.6)
Net debt excluding lease liabilities
(449.3)
(384.1)
Lease liabilities (see note 15)
(83.2)
(86.8)
Total net debt
(532.5)
(470.9)
30 Notes to the consolidated cash flow statement cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
a) Discontinued operations
The results of the discontinued European Zips business for the year ended 31 December 2023 is presented below:
 
US$m
Revenue
25.3
Cost of sales
(23.7)
Gross profit
1.6
Distribution costs
(2.6)
Administrative expenses
(2.0)
Operating loss from discontinued operations 
(3.0)
Loss on disposal (note 31 (b))
(17.1)
Exchange losses transferred to income statement on disposal
(6.6)
Total loss from discontinued operations
(26.7)
The operating loss before exceptional items of the European zips business for the year ended 31 December 
2023 was $1.3 million. Exceptional items charged to operating loss from discontinued operations was $1.7 
million. As a result the operating loss of the European Zips business for the year ended 31 December 2023 
was $3.0 million. 
During the year ended 31 December 2024 the loss from discontinued operations was $0.5 million which 
related to businesses disposed in prior years.
Exceptional items charged to loss from discontinued operations for the year ended 31 December 2023 are 
set out below:
 
US$m
Strategic project costs
(1.7)
Loss on disposal 
(17.1)
Exchange losses transferred to income statement on disposal
(6.6)
Total exceptional items – discontinued operations
(25.4)
Loss per ordinary share from discontinued operations
The loss per ordinary share from discontinued operations is as follows:
Year Ended 31 December
2024 
Cents
2023 
Cents
Loss per ordinary share from discontinued operations:
Basic loss per ordinary share
(0.04)
(1.66)
Diluted loss per ordinary share
(0.03)
(1.64)
30 Notes to the consolidated cash flow statement cont.
Total net debt is presented in the consolidated statement of financial position as follows:
Year ended 31 December
2024  
US$m
2023  
US$m
Current assets:
Cash and cash equivalents
146.0
132.4
Current liabilities:
Bank overdrafts and other borrowings
(0.2)
(144.3)
Lease liabilities
(16.6)
(17.5)
Non-current liabilities:
Borrowings
(595.1)
(372.2)
Lease liabilities
(66.6)
(69.3)
Total net debt
(532.5)
(470.9)
31 Discontinued operations
Sale of European Zips business
On 30 June 2023 the Group entered into an agreement to sell its European Zips business to Aequita, a German 
family office. The sale was completed on 31 August 2023, the date which control passed to the acquirer. 
The European Zips business is included in the Apparel segment. The exit from the European Zips business was 
in line with Coats’ previously announced strategic initiatives to optimise the Group’s portfolio and footprint, and 
improve the overall cost base efficiency. 
The results of the European Zips business were presented as a discontinued operation in the consolidated 
income statement for the year ended 31 December 2023. 
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
32 Related party transactions
Remuneration of key management personnel
The Group Executive Team and Non-Executive Directors are deemed to be the key management personnel 
of the Group. The remuneration of the Group Executive Team and Non-Executive Directors, is set out below 
in aggregate for each of the categories specified in IAS 24 Related Party Disclosures. Further information 
regarding the remuneration of individual directors is provided on pages 86 to 100 in the audited part of the 
Directors’ Remuneration Report.
Year ended 31 December
2024  
US$m
2023  
US$m
Short-term employee benefits
8.7
6.2
Share based payments
3.9
3.0
12.6
9.2
Trading transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on 
consolidation and are not disclosed in this note. Transactions between the Group and its joint ventures are 
disclosed below.
During the year, Group companies entered into the following transactions with related parties who are not 
members of the Group:
Sale of goods
Purchase of goods
2024  
US$m
2023  
US$m
2024  
US$m
2023  
US$m
Joint ventures
1.9
1.4
63.2
55.7
Amounts owing by/(to) joint ventures at the year end are disclosed in notes 19 and 21. All transactions with joint 
ventures are at an arm’s length and payment terms are consistent with normal trading terms with third parties.
Cash flows from discontinued operations
The table below sets out the cash flows from discontinued operations:
Year ended 31 December
2024 
US$m
2023
US$m
Net cash outflow from operating activities
(1.4)
(4.0)
Net cash outflow from investing activities
–
(0.1)
Net cash flows from discontinued operations
(1.4)
(4.1)
b) Loss on disposal
Net assets disposed during the year ended 31 December 2023 relating to the European Zips business amounted 
to $13.9 million. The exceptional loss on disposal included in the results of discontinued operations for the 
year ended 31 December 2023 was $17.1 million, which included disposal costs and completion adjustments 
of $5.1 million. 
The consideration received for the sale of the European Zips business was $1.9 million and, net of cash and 
cash equivalents and bank overdrafts disposed, there was a net inflow of $0.7 million. Disposal costs of 
$2.7 million were paid in the year ended 31 December 2023 and as a result the cash outflow in the year ended 
31 December 2023 on the sale of the European Zips business was $2.0 million.
31 Discontinued operations cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Financial liabilities
The Group’s financial liabilities are summarised below:
Year ended 31 December
2024  
US$m
2023  
US$m
Financial liabilities carried at amortised cost:
Trade payables (note 21)
167.2
163.2
Amounts owed to joint ventures (note 21)
16.1
15.3
Other financial liabilities
67.0
72.4
Provisions 
0.7
0.8
Lease liabilities (note 15)
83.2
86.8
Borrowings (note 23)
595.3
516.5
929.5
855.0
Financial liabilities carried at fair value through the income statement:
Derivative financial instruments (note 22)
2.3
3.6
Total financial liabilities
931.8
858.6
Other financial liabilities include other payables, other than taxation, contract liabilities, employee entitlements 
and other statutory liabilities. 
33 Derivatives and other financial instruments
The Group’s main financial instruments comprise:
Financial assets:
–	 cash and cash equivalents;
–	 trade and other receivables that arise directly from the Group’s operations; and
–	 derivatives, including forward foreign currency contracts and interest rate swaps.
Financial liabilities:
–	 trade, other payables and certain provisions that arise directly from the Group’s operations;
–	 bank borrowings and overdrafts; and
–	 derivatives, including forward foreign currency contracts and interest rate swaps.
Financial assets
The Group’s financial assets are summarised below:
Year ended 31 December
2024  
US$m
2023  
US$m
Financial assets carried at amortised cost:
Cash and cash equivalents
146.0
132.4
Trade receivables (note 19)
252.2
241.0
Loan receivable (note 10)
38.3
–
Other receivables (note 19), net of non-financial assets $31.7 million (2023: $35.6 million)
15.3
19.9
451.8
393.3
Financial assets carried at fair value through the income statement:
Derivative financial instruments (note 20)
0.9
1.3
0.9
1.3
Other financial assets carried at fair value through the statement of comprehensive income:
Other investments (note 16)
0.6
0.9
0.6
0.9
Total financial assets
453.3
395.5
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Financial assets measured at fair value
Year ended 31 December
Total  
US$m
Level 1  
US$m
Level 2  
US$m
Level 3  
US$m
2024
Financial assets measured at fair value through the income 
statement:
Trading derivatives 
0.9
–
0.9
–
Financial assets measured at fair value through the statement of 
comprehensive income:
Other investments
0.6
–
–
0.6
2023
Financial assets measured at fair value through the income 
statement:
Trading derivatives
1.3
–
1.3
–
Financial assets measured at fair value through the statement of 
comprehensive income:
Other investments
0.9
–
–
0.9
 
Financial liabilities measured at fair value
Year ended 31 December
Total  
US$m
Level 1  
US$m
Level 2  
US$m
Level 3  
US$m
2024
Financial liabilities measured at fair value through the income 
statement:
Trading derivatives
(2.3)
–
(2.3)
–
2023
Financial liabilities measured at fair value through the income 
statement:
Trading derivatives
(1.8)
–
(1.8)
–
Derivatives designated as effective hedging instruments
(1.8)
–
(1.8)
–
(3.6)
–
(3.6)
–
Fair value of financial assets and liabilities
The fair value of the Group’s financial assets and liabilities is summarised below:
Year ended 31 December
2024
2023 
Book value  
US$m
Fair value  
US$m
Book value  
US$m
Fair value  
US$m
Primary financial instruments:
Cash and cash equivalents
146.0
146.0
132.4
132.4
Trade receivables
252.2
252.2
241.0
241.0
Loan receivable
38.3
38.3
–
–
Other receivables
15.3
15.3
19.9
19.9
Other investments
0.6
0.6
0.9
0.9
Trade payables
(167.2)
(167.2)
(163.2)
(163.2)
Amounts owed to joint ventures
(16.1)
(16.1)
(15.3)
(15.3)
Other financial liabilities and provisions
(67.7)
(67.7)
(73.2)
(73.2)
Borrowings
(595.3)
(595.3)
(516.5)
(516.5)
Derivative financial instruments:
Forward foreign currency contracts
(1.4)
(1.4)
(0.5)
(0.5)
Interest rate swaps
–
–
(1.8)
(1.8)
Net financial liabilities
(395.3)
(395.3)
(376.3)
(376.3)
Unlisted investments are stated at fair value. For floating rate financial assets and liabilities, and for fixed 
rate financial assets and liabilities with a maturity of less than 12 months, it has been assumed that fair values 
are approximately the same as book values. Fair values for forward foreign currency contracts have been 
estimated using applicable forward exchange rates at the year end. All other fair values have been calculated 
by discounting expected cash flows at prevailing interest rates.
Fair value measurements recognised in the statement of financial position
The following tables provide an analysis of financial instruments that are measured subsequent to initial 
recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:
–	 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for 
identical assets or liabilities;
–	 Level 2 fair value measurements are those derived from inputs other than quoted prices that are observable 
for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
–	 Level 3 fair value measurements are those derived from valuation techniques which include inputs for the 
asset or liability that are not observable market data (unobservable inputs).
33 Derivatives and other financial instruments cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Currency risk
The income and capital value of the Group’s financial instruments can be affected by exchange rate movements 
as a significant portion of both its financial assets and financial liabilities are denominated in currencies other 
than US Dollars, which is the Group’s presentational currency. The accounting impact of these exposures will 
vary according to whether or not the Group company holding such financial assets and liabilities reports in the 
currency in which they are denominated.
The Board recognises that the Group’s US Dollar statement of financial position will be affected by short-
term movements in exchange rates, particularly the value of Sterling, Euro and Indian Rupee. The Group’s 
investments reflect the requirements of its customers, which results in investments in potentially more volatile 
developing market currencies. However, as a diverse global business, there are many natural offsets within the 
Group that tend to mitigate the risk associated with any individual currency volatility.
The Group uses forward foreign currency contracts to mitigate the currency exposure that arises on business 
transacted by group companies in  currencies other than their functional currency. Such foreign currency 
contracts are only entered into when there is a commitment to the underlying transaction. The contracts used 
to hedge future transactions typically have a maturity of between three months and one year.
Interest rate risk
In 2024, the Group financed its operations through shareholders’ funds, bank borrowings, Senior Notes and 
overdrafts. The Group’s trading subsidiaries use a mixture of fixed and floating rate debt. The Group also has 
access to committed bank facilities amounting to some $420.0 million, of which $nil had been drawn down at 
year end, and $600.0 million of Senior Notes (see note 23).
Interest rate risk is managed by maintaining an appropriate mix between fixed and floating rate borrowings 
using interest rate swap contracts. Interest rate swaps are accounted for as fair value or cash flow hedges, 
depending on initial designation. Hedging activities are evaluated regularly to align with interest rate views 
and risk appetite. In order to achieve hedge effectiveness, when entering into interest rate swap contracts, the 
cash flows, interest rate references and maturity of the underlying exposure of the hedged item are considered 
so as to match the hedging instrument. The ratio of fixed to floating rate hedging is established according to 
Group policy which prescribes a banded range for the fixed to floating ratio. The ratio of fixed to floating will 
decrease over a rolling 5-year period. 
As at 31 December 2024 the Group did not have any interest rate swap contracts designated as fair value or 
cash flow hedges. 
The Group’s interest income does not vary significantly from the returns it would generate through investing 
surplus cash at floating rates of interest since the interest rates are re-set on a regular basis.
Level 1 financial instruments are valued based on quoted bid prices in an active market. Level 2 financial 
instruments are measured by discounted cash flow. For interest rates swaps future cash flows are estimated 
based on forward interest rates (from observable yield curves at the end of the reporting period) and contract 
interest rates, discounted at a rate that reflects the credit risk of the various counterparties. For foreign exchange 
contracts future cash flows are estimated based on forward exchange rates (from observable forward exchange 
rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects the credit 
risk of the various counterparties. 
The main risks arising from the Group’s financial instruments are as follows:
–	 currency risk;
–	 interest rate risk;
–	 capital risk;
–	 market price risk;
–	 liquidity risk; and
–	 credit risk.
The Group’s policies for managing those risks are described on pages 170 to 174 and, except as noted, have 
remained unchanged since the beginning of the year to which these financial statements relate.
33 Derivatives and other financial instruments cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
A reasonably possible change of one per cent in market interest rates would reduce profit before tax by 
approximately $0.8 million (2023: $1.8  million), and would reduce shareholders’ funds by approximately 
$0.8 million (2023: $1.8 million). If interest rates fluctuate by a different rate, the aforementioned approximate 
impact can be linearly interpolated.
Trade and other receivables and trade and other payables are excluded from the following disclosure (other 
than the currency disclosures) as there is limited interest rate risk.
Capital risk management
The Group manages its capital so as to ensure that the Company and the Group will be able to continue as 
a going concern.
The Group’s capital structure comprises cash and cash equivalents and borrowings (see summary of net debt 
on page 165), and share capital and reserves attributable to the equity shareholders of the Company.
Currency exposure
The table below shows the extent to which Group companies have financial assets and liabilities, excluding forward 
foreign currency contracts, in currencies other than their functional currency. Foreign exchange differences arising 
on retranslation of these assets and liabilities are taken to the Group income statement. The table excludes loans 
between Group companies that form part of the net investment in overseas subsidiaries on which the exchange 
differences are dealt with through reserves, but includes other Group balances that eliminate on consolidation.
Functional currency 2024
Net foreign currency financial assets/(liabilities)
Sterling  
US$m
US dollars  
US$m
Euro  
US$m
Indian Rupees  
US$m
 Other  
US$m
 Total  
US$m
Sterling
–
2.5
2.9
–
–
5.4
United States dollars
(16.4)
–
(1.8)
0.9
6.4
(10.9)
Euros
–
(3.4)
–
–
0.4
(3.0)
Indian Rupees
–
3.2
(0.5)
–
–
2.7
Other currencies 
(1.7)
12.8
3.9
–
8.6
23.6
(18.1)
15.1
4.5
0.9
15.4
17.8
33 Derivatives and other financial instruments cont.
Functional currency 2023
Net foreign currency financial assets/(liabilities)
Sterling  
US$m
US dollars  
US$m
Euro  
US$m
Indian Rupees  
US$m
Other  
US$m
Total  
US$m
Sterling
 – 
 (9.4)
 0.8 
 – 
 0.5 
 (8.1) 
United States dollars
 (16.0)
 – 
 (7.0)
 0.7 
 6.0 
 (16.3)
Euros
–
 17.5
 – 
 – 
 (0.6)
 16.9 
Indian Rupees
 (0.2)
 3.3 
 – 
 – 
 0.9 
 4.0 
Other currencies 
 (0.8)
 20.7 
 8.4 
 – 
 4.6 
 32.9 
(17.0)
 32.1 
 2.2 
 0.7 
 11.4 
 29.4 
The following table shows the impact on pre-tax profit and shareholders’ funds of reasonably possible changes 
in exchange rates against each of the major foreign currencies in which the Group transacts:
2024
Sterling  
US$m
Euro  
US$m
Indian Rupees  
US$m
Increase in US dollar exchange rate
10%
10%
10%
(Decrease)/increase in profit before tax
(2.1)
0.2
(0.2)
Increase in shareholders’ funds
6.8
4.3
6.5
2023
Sterling  
US$m
Euro  
US$m
Indian Rupees  
US$m
Increase in US dollar exchange rate
10%
10%
10%
Decrease in profit before tax
(0.8)
(2.5)
(0.3)
Increase in shareholders’ funds
13.9
7.9
5.3
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Details of fixed and non interest-bearing liabilities (excluding derivatives and trade and other payables) are 
provided below:
Year ended 31 December
2024
2023
Fixed rate 
financial  
liabilities
 
Financial 
liabilities  
on which  
no interest  
is paid
Fixed rate  
financial  
liabilities
 
Financial  
liabilities  
on which  
no interest  
is paid
Weighted 
average  
interest  
rate  
%
Weighted  
average  
period for  
which rate  
is fixed  
(months)
Weighted 
average  
period until 
maturity  
(months)
Weighted 
 average  
interest  
rate  
%
Weighted 
 average  
period for  
which rate  
is fixed  
(months)
Weighted  
average  
period until 
maturity  
(months)
Currency:
Sterling
–
–
18
–
–
18
United States dollars
5.15
61
–
4.79
49
–
Weighted average
5.15
61
18
4.79
49
18
Currency profile of foreign exchange derivatives
Year ended 31 December
Assets
Liabilities 
2024  
US$m
2023  
US$m
2024 
US$m
2023  
US$m
Currency:
Sterling
11.3
 18.0 
–
 – 
United States dollars
18.8
 26.1 
(66.4)
 (42.7)
Euros
0.2
 – 
(12.6)
 (16.3)
Indian Rupee
–
 3.2 
–
 – 
Other currencies
52.8
 21.9 
(5.5)
 (10.7)
83.1
 69.2 
(84.5)
 (69.7)
Market price risk
The Group has equity investments at 31 December 2024 of $0.6 million (2023: $0.9 million) held for strategic 
rather than trading purposes. The Group does not actively trade these investments and is not materially exposed 
to price risk.
The sensitivity analyses below have been determined based on the exposure to reasonably possible price 
changes for the investments held at the year end.
Currency profile of financial assets
The currency profile of the Group’s financial assets was as follows:
31 December
2024
2023 
Investments  
US$m
Cash 
and cash 
equivalents  
US$m
Trade 
and other 
receivables  
US$m
Derivative 
financial 
instruments  
US$m
Total  
US$m
Investments  
US$m
Cash 
and cash 
equivalents  
US$m
Trade 
and other 
receivables  
US$m
Derivative 
financial 
instruments  
US$m
Total  
US$m
Currency:
Sterling
 –
 –
42.1
 –
42.1
 – 
 0.9 
 6.2 
 2.9 
 10.0 
United States dollars
 –
81.7
138.1
10.5
230.3
 – 
 70.9 
 127.8 
 (18.7)
 180.0 
Euros
0.1
3.9
26.4
(12.6)
17.8
 0.1 
 9.4 
 36.5 
 (0.4)
 45.6 
Indian Rupees
0.5
17.8
29.9
 –
48.2
 0.5 
 19.5 
 26.0 
 0.5 
 46.5 
Other currencies 
 –
42.6
69.3
3.0
114.9
 0.3 
 31.7 
 64.4 
 17.0 
 113.4 
Total financial assets
0.6
146.0
305.8
0.9
453.3
 0.9 
 132.4 
 260.9 
 1.3 
 395.5 
The investments included above comprise unlisted investments in shares and bonds. Trade and other 
receivables in the above table include the pension loan receivable.
Currency and interest rate profile of financial liabilities
The currency and interest rate profile of the Group’s financial liabilities was as follows:
31 December
2024
2023 
Floating 
rate  
US$m
Fixed rate  
US$m
Interest 
free  
US$m
 Lease 
liabilities  
US$m
Derivative 
financial 
instruments  
US$m
Total  
US$m
Floating 
rate  
US$m
Fixed rate  
US$m
Interest 
free  
US$m
 Lease 
liabilities  
US$m
Derivative 
financial 
instruments  
US$m
Total  
US$m
Currency:
Sterling
–
–
2.1
2.7
 (11.3)
 (6.5)
 0.8 
 – 
 6.1 
 3.6 
 (15.1)
 (4.6)
United States 
dollars
–
595.1
115.1
23.9
 58.0  792.1 
 102.4 
 410.0 
 102.8 
 25.5 
 (0.4)  640.3 
Euros
0.2
–
17.5
8.5
 (0.2)
 26.0 
 3.3 
 – 
 21.5 
 10.3 
 15.9 
 51.0 
Indian Rupees
–
–
34.3
5.8
–
 40.1 
 – 
 – 
 43.0 
 2.2 
 (2.7)
 42.5 
Other 
currencies
–
–
82.0
42.3
(44.2)
 80.1 
 – 
 – 
 78.3 
 45.2 
 5.9 
 129.4 
Total financial 
liabilities
0.2
595.1
251.0
83.2
2.3
 931.8 
 106.5 
 410.0 
 251.7 
 86.8 
 3.6 
 858.6 
The benchmark for determining floating rate liabilities in the UK is the risk-free rate for both sterling and 
US$ amounts.
33 Derivatives and other financial instruments cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Maturity of undiscounted financial liabilities (excluding derivatives)
The expected maturity of the Group’s financial liabilities, using undiscounted cash flows, was as follows:
Year ended 31 December
2024  
US$m
2023  
US$m
In one year or less, or on demand
 271.6 
417.6 
In more than one year but not more than two years
 17.7 
16.1 
In more than two years but not more than five years
 293.4 
313.8 
In more than five years
 370.6 
131.9 
 953.3 
879.4 
The above table comprises the gross amounts payable in respect of borrowings (including interest thereon), 
lease liabilities, trade and other non-statutory payables and certain provisions, over the period to the maturity 
of those liabilities.
Maturity of undiscounted financial derivatives
The maturity of the Group’s financial derivatives (on a gross basis), which include interest rate and foreign 
exchange swaps, using undiscounted cash flows, was as follows:
Year ended 31 December
Assets
Liabilities 
2024  
US$m
2023  
US$m
2024  
US$m
2023  
US$m
In one year or less, or on demand
83.0
69.2
(84.4)
(71.9)
83.0
69.2
(84.4)
(71.9)
Year ended 31 December
2024  
US$m
2023  
US$m
Impact of a 10% increase in prices:
Increase in pre-tax profit for the year
–
–
Increase in equity shareholders’ funds
0.1
0.1
Liquidity risk
The Group typically holds cash balances in deposits with a short maturity. Additional resources can be drawn 
through committed borrowing facilities at operating subsidiary level. During the year the Group has complied 
with all externally imposed capital requirements.
The Group had the following undrawn committed borrowing facilities in respect of which all conditions 
precedent had been met at the year-end:
Year ended 31 December
2024 
US$m
2023  
US$m
Expiring between one and two years
–
–
Expiring between two and five years
420.0
335.0
Maturity of undiscounted financial assets (excluding derivatives)
The expected maturity of the Group’s financial assets, using undiscounted cash flows, was as follows: 
Year ended 31 December
2024  
US$m
2023  
US$m
In one year or less, or on demand
 403.0 
387.9 
In more than one year but not more than two years
 10.5 
5.4 
In more than two years but not more than five years
 38.3 
– 
In more than five years
 0.6 
0.9 
 452.4 
394.2 
33 Derivatives and other financial instruments cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Customers requesting credit facilities are subject to a credit quality assessment, which may include a review 
of their financial strength, previous credit history with the Group, payment record with other suppliers, bank 
references and credit rating agency reports. All active customers are subject to an annual, or more frequent 
if appropriate, review of their credit limits and credit periods.
The Group applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which 
requires the use of the lifetime expected loss provision for all trade receivables (see note 19).
When determining expected losses for trade receivables, the Group takes into account the historical default 
experience and the financial position of the counterparties, as well as the future prospects considering various 
sources of information.
The Group does not have a significant credit risk exposure to any single customer.
Hedges
During 2024, the Group has hedged the following exposures:
–	 interest rate risk – using interest rate swaps which are designated as fair value or cash flow hedges; and
–	 currency risk – using forward foreign currency contracts.
The interest rate swaps matured in December 2024 and therefore the Group does not have any interest rate 
swaps designated as fair value or cash flow hedges at 31 December 2024. At 31 December 2024, the fair value 
of forward foreign currency contracts was a net liability of $1.4 million (2023: $0.5 million). 
Credit risk
Year ended 31 December
2024  
US$m
2023  
US$m
The Group considers its maximum exposure to credit risk to be as follows:
Cash and cash equivalents
 146.0 
 132.4 
Derivative financial instruments
 0.9 
 1.3 
Trade receivables (net of impairment provision)
 252.2 
 241.0 
Loan receivable
 38.3 
 – 
Other receivables
15.3
19.9
452.7
394.6
Financial assets considered not to have exposure to credit risk:
Other investments
0.6
0.9
Total financial assets
453.3
395.5
Analysis of trade receivables over permitted credit period:
Trade receivables up to 1 month over permitted credit period
 15.3 
 19.6 
Trade receivables between 1 and 2 months over permitted credit period
 5.2 
 3.7 
Trade receivables between 2 and 3 months over permitted credit period
 1.9 
 1.7 
Trade receivables between 3 and 6 months over permitted credit period
 2.0 
 1.6 
Trade receivables in excess of 6 months over permitted credit period
 1.6 
 1.3 
Total trade receivables (net of impairment provision) in excess of permitted credit period
 26.0 
 27.9 
Trade receivables within permitted credit period
 226.2 
 213.1 
Total net trade receivables
 252.2 
 241.0 
Analysis of trade receivables impairment provision:
Trade receivables up to 1 month over permitted credit period
 0.5 
 0.6 
Trade receivables between 1 and 2 months over permitted credit period
 0.1 
 0.1 
Trade receivables between 2 and 3 months over permitted credit period
 0.4 
 0.1 
Trade receivables between 3 and 6 months over permitted credit period
 1.1 
 0.6 
Trade receivables in excess of 6 months over permitted credit period
 8.0 
 5.9 
Total impairment provision
 10.1 
 7.3 
Trade receivables consist of a large number of customers, spread across diverse geographical areas and 
industries.
33 Derivatives and other financial instruments cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
The total cost recognised in the consolidated Income Statement in respect of equity settled share-based 
payment plans was as follows:
Year ended 31 December
2024  
US$m
2023  
US$m
Long Term Incentive Plan (LTIP)
7.0
6.1
Deferred bonuses
0.9
0.9
7.9
7.0
The average share price for the year ended 31 December 2024 was 86.4p (2023: 72.1p).
LTIP
Under the terms of the Coats Group LTIP, executive directors and key senior executives may be awarded 
each year conditional entitlements over ordinary shares in the Company in the form of nil cost options. The 
vesting of awards is usually subject to the satisfaction of a three year performance period, determined by the 
Remuneration Committee at the time of grant. Where performance conditions have applied, these include both 
market and non-market based measures.
Details of options outstanding under equity settled awards:
2024  
Options
2023  
Options
Outstanding at 1 January
 35,570,376 
40,895,571
Granted during the year
 11,317,541 
11,100,414
Vested during the year
(432,103)
(10,718,829)
Lapsed during the year
(4,474,341)
(2,819,551)
Exercised during the year
(9,025,994)
(2,887,229)
Outstanding at 31 December
 32,955,479 
35,570,376
Exercisable at 31 December
 5,731,656 
3,188,382
The options outstanding at 31 December 2024 had a weighted average remaining contractual life of 7.6 years 
(2023: 7.5 years).
The fair value of the market-based component of these awards was calculated using the Monte Carlo simulation 
method to reflect the likelihood of the market-based Total Shareholder Return (TSR) performance condition, 
which attach to 25% (2023: 30%) of the award, being met, using the following assumptions:
2024
2023
Vesting period
3 Years
3 Years
Share price at valuation date
78.8p
78.4p
Exercise price
Nil
Nil
Risk free rate
3.93%
3.29%
Expected dividend yield
0%
0%
Expected volatility
34.16%
35.84%
Fair value per share
49.2p
56.5p
Deferred bonuses
Under the terms of the Coats Group Deferred Bonus Plan, any bonuses awarded to executive directors and 
key senior management will be the subject of a mandatory 25% to 50% deferred into shares, to be held for a 
three year retention period. Annual bonuses will be determined by reference to performance, in the normal 
course measured over one financial year. Awards are normally exercisable after three years.
The options outstanding at 31 December 2024 had a weighted average remaining contractual life of 7.9 years 
(2023: 8.4 years).
35 Post balance sheet events
There are no material post balance sheet events requiring adjustment or disclosure.
36 Alternative performance measures
This Annual Report contains both statutory measures and alternative performance measures which, in 
management’s view, provide valuable additional information for users of the financial statements in understanding 
the Group’s performance.
The Group’s alternative performance measures and key performance indicators are aligned to the Group’s 
strategy and together are used to measure the performance of the business. A number of these measures 
form the basis of performance measures for remuneration incentive schemes.
34 Share-based payments
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Alternative performance measures are non-GAAP (Generally Accepted Accounting Practice) measures and 
provide supplementary information to assist with the understanding of the Group’s financial results and with 
the evaluation of operating performance for all the periods presented. Alternative performance measures, 
however, are not a measure of financial performance under United Kingdom adopted international accounting 
standards (‘IFRS’) and should not be considered as a substitute for measures determined in accordance with 
IFRS. As the Group’s alternative performance measures are not defined terms under IFRS they may therefore 
not be comparable with similarly titled measures reported by other companies. 
A reconciliation of alternative performance measures to the most directly comparable measures reported in 
accordance with IFRS is provided below. 
a) Organic growth on a constant exchange rate (CER) basis 
Organic growth measures the change in revenue and operating profit before exceptional and acquisition 
related items after adjusting for acquisitions. The effect of acquisitions is equalised by:
–	 removing from the year of acquisition, their revenue and operating profit; and
–	 in the following year, removing the revenue and operating profit for the number of months equivalent to the 
pre-acquisition period in the prior year.
There were no acquisitions in the year ended 31 December 2024 and 2023. 
The effects of currency changes are removed through restating prior year revenue and operating profit at 
current year exchange rates. The principal exchange rates used are set out in note 1.
Organic revenue growth on a CER basis measures the ability of the Group to grow sales by operating in 
selected geographies and segments and offering differentiated cost competitive products and services.
Adjusted organic operating profit growth on a CER basis measures the profitability progression of the Group.
Adjusted operating profit is calculated by adding back exceptional and acquisition related items (see note 4 for 
further details).
Year ended 31 December
2024  
US$m
2023  
US$m
%  
Growth
Revenue from continuing operations
1,500.9
1,394.2
8%
Constant currency adjustment
–
(17.7)
Organic revenue on a CER basis
1,500.9
1,376.5
9%
Year ended 31 December
2024  
US$m
2023  
US$m
%  
Growth
Operating profit from continuing operations1
199.8
184.0
9%
Exceptional and acquisition related items (note 4)
69.8
49.4
Adjusted operating profit from continuing operations
269.6
233.4
16%
Constant currency adjustment
–
(4.1)
Organic adjusted operating profit on a CER basis
269.6
229.3
18%
1.	 Refer to the consolidated income statement for a reconciliation of profit before taxation to operating profit from continuing operations.
b) Adjusted EBITDA 
Adjusted EBITDA is presented as an alternative performance measure to show the operating performance of the 
Group excluding the effects of depreciation of property, plant and equipment and right-of-use, amortisation 
and impairments and excluding exceptional and acquisition related items.
Operating profit from continuing operations before exceptional and acquisition related items and before 
depreciation of property, plant and equipment and right-of-use assets and amortisation (Adjusted EBITDA) 
is as set out below:
Year ended 31 December 
 2024  
US$m
 2023  
US$m
Profit before taxation from continuing operations
172.1
155.8
Share of profit of joint ventures
(1.9)
(1.1)
Finance income (note 6)
(3.1)
(4.6)
Finance costs (note 7)
32.7
33.9
Operating profit from continuing operations1
199.8
184.0
Exceptional and acquisition related items (note 4)
69.8
49.4
Adjusted operating profit from continuing operations
269.6
233.4
Depreciation of owned property, plant and equipment
25.4
27.0
Amortisation of intangible assets 
1.6
1.4
Adjusted EBITDA including IFRS 16 depreciation of right-of-use assets (Pre-IFRS 16 basis)
296.6
261.8
Depreciation of right-of-use assets
18.0
18.8
Adjusted EBITDA
314.6
280.6
1.	 Refer to the consolidated income statement for a reconciliation of profit before taxation to operating profit from continuing operations.
36 Alternative performance measures cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
Net debt including lease liabilities under IFRS 16 at 31 December 2024 was $532.5 million (2023: $470.9 million). 
This gives a leverage ratio of net debt including lease liabilities to adjusted EBITDA at 31 December 2024 of 1.7 
(2023: 1.7).
Net debt excluding lease liabilities under IFRS 16 at 31 December 2024 was $449.3 million (2023: $384.1 million). 
This gives a leverage ratio on a pre-IFRS 16 basis at 31 December 2024 of 1.5 (2023: 1.5). 
For the definition and calculation of net debt excluding lease liabilities see note 30 (g). 
For financial covenant purposes under the Group’s borrowing arrangements, leverage is measured at the Coats 
Group Finance Company consolidated level under frozen accounting standards and excludes the effects of 
IFRS 16. Adjusted EBITDA at the Coats Group Finance Company Limited consolidated level for the year ended 
31 December 2024 for covenant purposes was $290.8 million (2023: $260.0 million). Net debt excluding IFRS 
16 lease liabilities at the Coats Group Finance Company Limited consolidated level at 31 December 2024 for 
covenant purposes was $454.3 million (2023: $388.8 million). This gives a leverage ratio at 31 December 2024 
of 1.6 (2023: 1.5) for covenant purposes. The financial covenant under the Group’s borrowing arrangements is 
for leverage to be less than 3.0 and this covenant was met at 31 December 2024 and 31 December 2023.
c) Adjusted effective tax rate
The adjusted effective tax rate removes the tax impact of exceptional and acquisition related items to arrive at 
a tax rate based on the adjusted profit before taxation.
Year ended 31 December 
2024  
US$m
2023  
US$m
Profit before taxation from continuing operations
172.1
155.8
Exceptional and acquisition related items (note 4) 
69.8
49.4
Net interest on pension scheme assets and liabilities* 
–
(4.4)
Adjusted profit before taxation from continuing operations
241.9
200.8
Taxation charge from continuing operations
71.9
55.0
Tax (charge)/credit in respect of exceptional and acquisition related items
(1.8)
2.9
Tax credit in respect of net interest on pension scheme assets and liabilities*
–
0.2
Adjusted tax charge from continuing operations
70.1
58.1
Adjusted effective tax rate
29%
29%
*In September 2024 the Group and the UK pension scheme Trustees agreed to purchase a bulk annuity 
policy (“buy-in”), which insures the remaining 80% of the UK scheme’s pension liabilities. As a result of the 
buy-in, all the financial and demographic risks relating to the UK pension scheme’s liabilities are now fully 
hedged (see note 10). The Group no longer adjusts net interest on pension scheme assets and liabilities in 
arriving at the adjusted effective tax rate as volatility in this interest for the Coats UK pension scheme has now 
been eliminated. This is the basis on which management now monitors and manages the effective tax rate. 
For the year ended 31 December 2023 and prior periods, net interest on pension scheme assets and liabilities 
was adjusted in arriving at the adjusted effective tax rate. The adjusted effective tax rate for the year ended 
31 December 2023 would have been 28% if the same basis of calculation used for the year ended 31 December 
2024 had been applied.
d) Adjusted earnings per share
The calculation of adjusted earnings per share is based on the profit from continuing operations attributable to 
equity shareholders before exceptional and acquisition related items as set out below. Adjusted earnings per 
share growth measures the progression of the benefits generated for shareholders.
Year ended 31 December
2024  
US$m
2023  
US$m
Profit from continuing operations
100.2
100.8
Non-controlling interests
(19.6)
(17.6)
Profit from continuing operations attributable to equity shareholders
80.6
83.2
Exceptional and acquisition related items net of non-controlling interests (note 4)
69.8
48.8
Tax charge/(credit) in respect of exceptional and acquisition related items
1.8
(2.9)
Adjusted profit from continuing operations
152.2
129.1
Weighted average number of Ordinary Shares
1,604,461,401
1,604,955,182
Adjusted earnings per share (cents)
9.49
8.04
Adjusted earnings per share (growth %)
18%
The weighted average number of Ordinary Shares used for the calculation of adjusted earnings per share 
for the year ended 31 December 2024 is 1,604,461,401 (2023: 1,604,955,182), the same as that used for basic 
earnings per ordinary share from continuing operations (see note 11).
36 Alternative performance measures cont.
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Coats Group plc Annual Report and Accounts 2024
Notes to the financial statements cont.
f) Adjusted return on capital employed
Adjusted return on capital employed (ROCE) is defined as operating profit before exceptional and acquisition 
related items adjusted for the full year impact of acquisitions divided by period end capital employed as set out 
below. Adjusted ROCE measures the ability of the Group’s assets to deliver returns. 
Year ended 31 December
2024  
US$m
2023  
US$m
Operating profit from continuing operations before exceptional and acquisition related items 
adjusted for full year impact of acquisitions1
269.6
233.4
Non-current assets:
Acquired intangible assets
317.2
349.6
Property, plant and equipment
226.3
243.2
Right-of-use assets
68.9
74.4
Trade and other receivables
25.0
19.5
Current assets:
Inventories
176.1
173.5
Trade and other receivables
292.2
292.0
Current liabilities:
Trade and other payables
(299.2)
(285.6)
Lease liabilities
(16.6)
(17.5)
Non-current liabilities
Trade and other payables
(7.4)
(3.2)
Lease liabilities
(66.6)
(69.3)
Capital employed
715.9
776.6
Adjusted ROCE
38%
30%
1.	 Refer to the consolidated income statement for a reconciliation of profit before taxation to operating profit from continuing operations.
e) Adjusted free cash flow
Net cash generated by operating activities, a GAAP measure, reconciles to changes in net debt resulting from 
cash flows (free cash flow) as set out in the consolidated cash flow statement. A reconciliation of free cash flow 
to adjusted free cash flow is set out below. 
Consistent with previous periods, adjusted free cash flow is defined as cash generated from continuing activities 
less capital expenditure, interest, tax, dividends to minority interests and other items, and excluding exceptional 
and discontinued items, acquisitions, purchase of own shares by the Employee Benefit Trust and payments to 
the UK pension scheme.
Adjusted free cash flow measures the Group’s cash generation that is available to service shareholder dividends, 
pension obligations and acquisitions.
Year ended 31 December
2024  
US$m
2023  
US$m
Change in net debt resulting from cash flows (free cash flow)
(57.6)
15.0
Disposal of businesses (note 31)
–
1.2
Net cash outflow from discontinued operations (note 31)
1.4
4.1
Payments to UK pension scheme
135.6
48.9
Net cash flows in respect of other exceptional and acquisition related items
20.9
12.6
Purchase of own shares by Employee Benefit Trust
8.7
10.1
Dividends paid to equity shareholders
46.2
40.3
Tax inflow in respect of adjusted cash flow items
(2.0)
(1.7)
Adjusted free cash flow
153.2
130.5
36 Alternative performance measures cont.
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Coats Group plc Annual Report and Accounts 2024
Company balance sheet
Company statement of changes in equity
31 December
Notes
2024  
US$m
2023  
US$m
Fixed assets:
Investments
4
1,354.0
1,354.0
Current assets:
Trade and other receivables
1.1
0.8
Cash at bank and in hand
0.1
0.1
1.2
0.9
Creditors: amounts falling due within one year:
Loans from subsidiary undertakings
–
(7.5)
Trade and other payables
(1.1)
(0.8)
Net current assets/(liabilities)
0.1
(7.4)
Net assets
1,354.1
1,346.6
Capital and reserves:
Share capital
5
99.0
99.0
Share premium account
111.4
111.4
Capital redemption reserve
14.1
14.1
Share options reserve
18.5
18.5
Capital reduction reserve
59.8
59.8
Own shares
5
(5.3)
(6.1) 
Profit and loss account
1,056.6
1,049.9
Shareholders’ funds
1,354.1
1,346.6
The Company reported a profit for the financial year ended 31 December 2024 of $54.1 million (2023: $41.2 million).
David Paja	
	
	
	
	
	
Jackie Callaway
Group Chief Executive	Officer	 	
Group Chief Financial Officer
Approved by the Board 5 March 2025
Company Registration No.103548
Share  
capital  
US$m
Share  
premium  
account  
US$m
Capital  
redemption  
reserve  
US$m
Share  
options  
reserve  
US$m
Capital  
reduction  
reserve  
US$m
Own  
shares  
US$m
Profit and loss  
account  
US$m
Total  
equity  
US$m
1 January 2023
99.0
111.4
14.1
18.5
59.8
(0.1)
1,049.9
1,352.6
Profit and total 
comprehensive 
expense for 
the year
–
–
–
–
–
–
41.2
41.2
Dividends to equity 
shareholders 
–
–
–
–
–
–
(40.6)
(40.6)
Purchase of own 
shares
–
–
–
–
–
(10.1)
–
(10.1)
Movement in 
own shares
–
–
–
–
–
4.1
(0.6)
3.5
31 December 2023
99.0
111.4
14.1
18.5
59.8
(6.1)
1,049.9
1,346.6
Profit and total 
comprehensive 
expense for 
the year
–
–
–
–
–
–
54.1
54.1
Dividends to equity 
shareholders 
–
–
–
–
–
–
(46.5)
(46.5)
Purchase of own 
shares
–
–
–
–
–
(8.7)
–
(8.7)
Movement in 
own shares
–
–
–
–
–
9.5
(0.9)
8.6
31 December 2024
99.0
111.4
14.1
18.5
59.8
(5.3)
1,056.6
1,354.1
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Coats Group plc Annual Report and Accounts 2024
Notes to the company financial statements
1 Accounting policies
The principal accounting policies of the Company are summarised below. They have all been applied consistently 
throughout the year and to the preceding year.
a) General information and basis of accounting
The financial statements have been prepared under the historical cost convention, modified to include certain 
items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) as issued by the Financial 
Reporting Council. The going concern basis is set out in note 1 of the Group consolidated financial statements. 
The Company is deemed a qualifying entity under FRS 102, and so may take advantage of the reduced 
disclosures permitted under the standard. 
As a result, the following disclosures have not been provided:
–	 A statement of cash flows and related disclosures under Section 7 Statement of Cash Flows and Section 3 
Financial Statement Presentation paragraph 3.17(d); and
–	 Disclosures about share-based payments under Section 26 (paragraphs 26.18(b), 26.19 to 26.21 and 26.23) 
of FRS 102 have not been provided as equivalent disclosures are included in the consolidated financial 
statements of Coats Group plc.
Functional currency
The functional currency of the Company continued to be United States dollars (USD) during the year ended 
31 December 2024.
b) Fixed assets – investments
Investments in subsidiary undertakings are reflected at cost less provisions for any impairment.
c) Financial assets and liabilities
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual 
provisions of the instrument. All financial assets and financial liabilities are initially measured at transaction 
price. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured 
at the present value of future payments discounted at a market rate of interest for a similar debt instrument. 
d) Impairment of assets
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance 
sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the profit and loss 
and the assets is reduced to its recoverable amount. The recoverable amount is the higher of its fair value less 
costs to sell and its value in use.
e) Share-based payments
Cash-settled
Cash-settled share-based payments are measured at fair value (excluding the effect of non market-based 
vesting conditions) at each reporting date. The fair value is expensed on a straight-line basis over the vesting 
period, with a corresponding increase in liabilities.
Equity-settled
The Group operates an equity-settled Long Term Incentive Plan for executives and senior management, 
settlement is in the form of Coats Group plc shares. Awards under this plan are subject to both market-based 
and non-market-based vesting criteria. 
The fair value at the date of grant is established by using an appropriate simulation method to reflect the 
likelihood of market-based performance conditions being met. As the Long Term Incentive Plan relates to 
employees of a subsidiary, when there is no recharge of the cost, the fair value is charged to Investments on 
a straight-line basis over the vesting period, with appropriate adjustments being made during this period to 
reflect expected vesting for non market-based performance conditions and forfeitures. The corresponding 
credit is to shareholders’ funds.
To satisfy awards under this Plan, shares may be purchased in the market by an Employee Benefit Trust 
(EBT) over the vesting period. Coats Group plc is the sponsoring employer of the EBT and its activities are 
considered an extension of the Company’s activities. Therefore the shares purchased by the EBT are included 
as a deduction from shareholders’ funds and other assets and liabilities of the EBT are recognised as assets 
and liabilities of Coats Group plc.
f) Taxation
Provision is made for taxation assessable on the profit or loss for the year as adjusted for disallowable and 
non-taxable items. Deferred taxation is provided in full in respect of timing differences which have arisen but 
not reversed at the balance sheet date, except that deferred tax assets (including those attributable to tax 
losses carried forward) are only recognised if it is considered more likely than not that they will be recovered. 
Deferred taxation is measured on a non-discounted basis.
g) Dividends
Dividends proposed are recognised in the period in which they are formally approved for payment.
180
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Coats Group plc Annual Report and Accounts 2024
Notes to the company financial statements cont.
5 Share capital and reserves
There are 1,597,810,385 Ordinary Shares of 5p issued and fully paid at 31 December 2024 (2023: 1,597,810,385).
The own shares reserve at 31 December 2024 of $5.3 million (2023: $6.1 million) represents the cost of shares 
in Coats Group plc purchased in the market and held by an Employee Benefit Trust to satisfy awards under the 
Group’s share based incentive plans. The number of shares held by the Employee Benefit Trust at 31 December 
2024 was 4,905,769 (2023: 6,124,223).
As at 31 December 2024 the Company had distributable profits of $288.7 million (2023: $281.3 million).
6 Related party transactions
Amounts due from and to other Group companies are disclosed on the face of the Balance Sheet on page 179.
h) Critical accounting judgements and key sources of estimation uncertainty
Carrying value of investments:
The carrying values of investments are assessed annually for indicators of impairment. If an impairment review 
is required judgement is involved in calculating the recoverable amount. No indicators of impairment were 
identified during the year ended 31 December 2024.
There are no sources of estimation uncertainty at the balance sheet date, that may have a significant risk of 
causing material adjustment to the carrying amounts of assets and liabilities within the next financial year.
2 Result for the year
The Company has not presented its own profit and loss account as permitted by section 408 of the Companies 
Act 2006. The profit for the year attributable to shareholders was $54.1 million (2023: $41.2 million). Fees paid 
for the audit of the Company’s annual accounts are disclosed on page 142. 
Details of directors’ remuneration are set out on pages 86 to 100 within the Remuneration Report and form part 
of these financial statements.
3 Dividends
Dividends amounting to $46.5 million in respect of the year ended 31 December 2024 were payable to 
Coats Group plc shareholders (2023: $40.6 million). Details of the proposed final dividend for the year ended 
31 December 2024 are set out in note 12 of the consolidated financial statements.
4 Investments
Investments in
subsidiary
undertakings
US$m
At 1 January 2023, 1 January 2024 and 31 December 2024
1,354.0
1 Accounting policies cont.
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Coats Group plc Annual Report and Accounts 2024
We have prepared this report with 
reference to TCFD All Sector 
Guidance and Supplemental 
Guidance for Non-Financial 
Groups. 
The Board has noted recommendations in relation to 
the mandatory disclosures of climate-related financial 
risk arising from FCA Listing Rule 6.6.6R. In complying 
with the requirements of the new Listing Rule on 
climate-related disclosures, we consider our 
disclosure to be consistent with all of the Task Force 
on Climate-related Financial Disclosures (TCFD) 
Recommendations and Recommended Disclosures as 
detailed in ‘Recommendations of the Task Force on 
Climate-related Financial Disclosures’, 2017. We have 
also used additional guidance from ‘Implementing the 
Recommendations of the Task Force on Climate-
related Financial Disclosures’, 2021. This report  
covers all three divisions over which Coats has 
operational control.
In this report references are made to other content in 
this Annual Report and Accounts (ARA) and in our 
Sustainability Report (SR). To make it easier to locate 
these references they are always shown in the 
following formats: (ARA page X) and (SR page X).
This 2024 report covers our governance of climate 
change and demonstrates how Coats incorporates 
climate-related risks and opportunities into the 
Group’s risk management, strategic planning and 
decision-making processes, aligned to our net-zero 
ambition, which is described on page 16 of this report. 
Climate change continues to be incorporated into the 
Principal Risks and Uncertainties section of this report 
on page 55.
Since its incorporation In 2023, we have continued to 
work with a cross-divisional and functional TCFD 
working group which supports our evaluation and 
assessments of physical and transitional climate risks 
and opportunities and this is a regular agenda item  
for discussion at our Group Sustainability  
Committee meetings.
This year we have made changes to our review of 
physical risks. Instead of using in-house developed 
physical risk models, we have incorporated use of the 
Munich Re Location Risk Intelligence Tool to help 
understand, measure and manage physical risks 
associated with climate change. The Munich Re 
Location Risk Intelligence Tool utilises one of the 
world’s most extensive databases for natural disaster 
and hazard modelling under various climate scenarios. 
In 2024, we have further assessed previously reported 
transition risks and opportunities with associated 
financial impacts and have added new risks and 
opportunities related to our materials transition 
pathway, away from the use of virgin oil-based raw 
materials. This section of the Annual Report 
represents Coats’ fourth full set of TCFD 
recommended disclosures, covering the four pillars  
as shown in the adjacent table.
Recommendation
Recommended disclosures
Reference
Governance
Disclose the organisation’s 
governance around climate-
related risks and opportunities
a) Describe the Board’s oversight of climate-related risks and 
opportunities
Pages 55, 78, 
79, 183
b) Describe management’s role in assessing and managing climate-
related risks and opportunities
Pages 55, 183, 
184
Risk management 
Disclose how the organisation 
identifies, assesses, and 
manages climate-related risks
a) Describe the organisation’s processes for identifying and 
assessing climate-related risks
Pages 55, 184
b) Describe the organisation’s processes for managing climate-
related risks
Pages 55, 184
c) Describe how processes for identifying, assessing, and managing 
climate-related risks are integrated into the organisation’s overall 
risk management
Pages 47-55, 
183-185
Strategy 
Disclose the actual and potential 
impacts of climate-related risks 
and opportunities on the 
organisation’s businesses, 
strategy, and financial planning 
where such information is 
material
a) Describe the climate-related risks and opportunities the 
organisation has identified over the short, medium and long term
Pages 55, 185-
197
b) Describe the impact of climate-related risks and opportunities on 
the organisation’s businesses, strategy and financial planning
Pages 185-197
c) Describe the resilience of the organisation’s strategy, scenarios, 
including a 2°C or lower scenario taking into consideration different 
climate-related risks.
Page 197
Metrics and targets 
Disclose the metrics and targets 
used to assess and manage 
relevant climate-related risks and 
opportunities where such 
information is material
a) Disclose the metrics used by the organisation to assess climate-
related risks and opportunities in line with its strategy and risk 
management process
Page 198
b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 
greenhouse gas (GHG) emissions, and the related risks
Page 108
c) Describe the targets used by the organisation to manage climate-
related risks and opportunities and performance against targets
Page 186-188, 
198
Taskforce on Climate-Related Financial Disclosures
INTRODUCTION
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Coats Group plc Annual Report and Accounts 2024
Taskforce on Climate-Related Financial Disclosures cont.
GOVERNANCE
The sustainability strategy of Coats Group plc, along 
with the evaluation and management of risks and 
opportunities related to climate change, is overseen 
and approved by the Board of Directors at Coats.
The Board endorses material decisions regarding 
climate-related strategy, metrics, targets, and 
expenditures, both capital and operational. It also 
reviews the way in which climate-related factors are 
embedded into broader strategic and operational 
matters through the sub-committees outlined below.
Our short- and long-term targets for climate change 
management are intrinsically linked to our net-zero 
target (validated by SBTi) and associated initiatives to 
reduce Scope 1, 2 and 3 emissions in line with the 
Paris Agreement 1.5 degrees. Our progress against 
these and against several underlying interim targets, 
which make up our Net-Zero Transition Plan, are 
monitored by the Board.
The Group Executive Team (GET) is responsible for 
climate-related deliverables, with the Board and 
relevant Board sub-committees receiving progress 
updates at every Board meeting (generally eight 
times per year). The GET is responsible for 
operational delivery of the Group’s sustainability 
strategy, including day-to-day management of 
operations and responsibility for monitoring  
detailed performance of all related aspects of the 
Group’s business. 
Necessarily, this includes many elements of practical 
climate-related risk management, for example the 
GET have been involved in detailed discussions on 
costs associated with materials transition delivery. 
Two Board sub-committees have important roles to 
play in managing climate-related risks and 
opportunities: The Sustainability Committee is 
responsible for the sustainability strategy and 
governance; this includes climate-related issues and 
receipt of updates on KPI performance from the  
GET, including mitigating actions relating to  
climate change.
In 2024, we made some structural changes to the 
composition of our Sustainability Committee to ensure 
better representation across our three business 
Divisions. Reflecting the importance of sustainability in 
Coats, our Group Chairman, David Gosnell, chairs our 
Sustainability Committee, and membership includes 
two Non-Executive Directors, Fran Philip and Sarah 
Highfield, our Group CEO, David Paja, our three 
Divisional CEO's, Adrian Elliott (Apparel CEO), Frederic 
Verague (Footwear CEO) and Soundar Rajan 
(Performance Materials CEO) and Group Sustainability 
Director, Christopher Dearing who also serves as 
Committee Secretary.
The Audit and Risk Committee monitors and reviews 
the effectiveness of climate-related risk management 
systems and relevant internal controls, and approves 
reporting statements, such as TCFD disclosures. 
Through 2024, we introduced Group Internal Audit 
assessment of climate-related data as part of the wider 
group audit schedule. 2024 was the first year we have 
delivered public limited assurance of our reported 
Scope 1 and 2 emissions data in accordance with ISAE 
3000 (revised) and ISAE 3410 standards. Details of our 
external auditor’s assurance statement can be found 
on page 199 of this report. 
The GET provides updates on the progress of agreed 
actions directly to the Board, the Sustainability 
Committee, and the Executive Group Risk 
Management Committee (GRMC) as deemed 
appropriate. The GRMC is responsible for formulating 
risk management strategies and monitoring and 
refining risk management processes and metrics for 
all risks, including climate-related risks specifically 
and convenes on a quarterly basis. The Sustainability 
Director is responsible for the delivery of climate-
related risk assessment work which is reported into 
the GRMC quarterly as a short update with a full 
report to the GET annually. 
Our TCFD working group consists of Senior 
Management from each division and includes 
representation from corporate functions such as 
finance, procurement, human resources and risk.  
The working group works closely with the Group 
Sustainability Director and is responsible for 
contributing to the development of models for 
assessing the physical risks and impacts of climate 
Coats Board
–	 Overall responsibility for setting strategic direction, overseeing strategic implementation – including sustainability strategy and 
delivery – and for overseeing effectiveness of climate risk management and controls, reviewing Group’s climate risk profile 
and setting risk tolerance. 
Sustainability Committee
–	 Primary responsibility is for sustainability strategy and 
governance including on climate-related issues. As part 
of its role in governance it receives updates on KPI 
performance from the Group Executive Team and these 
include our mitigating actions related to climate change.
TCFD Working Group
–	 Cross-divisional and cross function working 
group are responsible for assessment of 
climate-related risks and opportunity as well as 
evaluation and reporting on their impact.
Group Executive Team
–	 Responsible for operational delivery of Group’s sustainability strategy, including 
day-to-day management of operations and responsibility for monitoring detailed 
performances of all related aspects of Group’s business. Necessarily, this 
includes many elements of practical climate-related risk management.
Audit and Risk Committee
–	 Monitors and reviews effectiveness on climate-related 
risk management systems and internal controls, as well 
as approving reporting statements on those internal 
controls and climate-related risk management. 
Group Risk Management Committee
–	 Responsible for formulating risk management 
strategies, monitoring and refining risk management 
activities, metrics and profiles for climate-related risks 
across the Group.
Key
 Report for evaluation
 Direct and monitor
change and determining the impacts of transitional 
risks and opportunities on our business.
Monitoring of progress on agreed actions is reported 
to the GET on a bi-monthly basis. The collection of 
climate-related data for the timely reporting of 
progress is largely achieved through an internal 
cloud-based reporting system that collects data 
from every operating unit on a monthly basis. This is 
reported automatically to multiple internal 
stakeholders including the GET via dashboards.
183
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Coats Group plc Annual Report and Accounts 2024
Coats is dedicated to managing the climate-related 
risks and opportunities impacting our business, 
customers, suppliers, and our stakeholders.  
We have implemented a systematic approach to 
evaluate the potential effects of climate change on 
our operations, markets, and products, as well as to 
identify opportunities to enhance our resilience to 
climate-related changes, and in doing so our 
competitive positioning.
We view climate change as a long-term strategic 
issue, and therefore our approach to climate risks 
does not change on a short-term basis, but instead 
necessitates ongoing monitoring and adaptation in 
response to changes in technology and 
environment. Our risk assessment approach aligns 
with that outlined in both our 2022 and 2023  
TCFD reports.
Taskforce on Climate-Related Financial Disclosures cont.
All physical and transition risk categories, as well as 
current regulatory requirements, are taken into 
account by Coats when we evaluate the climate-
related risks and opportunities that may affect us. 
We look at how these risks may impact our own 
operations, or the Group’s upstream and 
downstream activities, and whether they may first 
arise in the short- (< 10 years), medium- (~25 years) 
or long-term (~50 years) time frames. These time 
frames are selected because they correspond 
roughly to the average remaining life of production 
assets (short-term), the typical life span of 
technologies (medium-term) and the possible plant 
renewal cycle (long-term), as well as aligning to the 
key milestones for climate science projections. In 
2024, while short and medium-term time frames 
remain the same for physical and transition risks and 
opportunities, our physical risk categories adopt a 
new long-term time frame of ~75 years to coincide 
with the outputs from the Munich Re Location Risk 
Intelligence Tool (see Strategy section in page 185). 
We leverage the established Group Risk Tolerance 
Structure to evaluate climate-related risks and 
opportunities in comparison with other Group risks, 
ensuring their integration into the Group’s risk 
management framework. Our approach to assessing 
climate-related risks is scenario-based, which 
develops impact models for those risks identified. 
Prioritisation of climate risks is based on the overall 
impact across our 3x3 matrix of scenarios and  
time horizons.
We quantify risk in line with the following financial 
materiality:
Impact
Low
Medium
High
Financial
Impact or 
opportunity 
of <$15m
Impact or 
opportunity 
of $15-30m
Impact or 
opportunity 
of >$30m
The Board reviewed the climate-related risk trend in 
the light of the external environment and the actions 
being taken by the Company, including delivery on 
targets during the year, and determined that the 
risk trend should continue to be noted as ‘stable’. 
Further details of the Group’s risk assessment 
process are on page 50 of this Annual Report 
Principal Risks & Uncertainties
Climate risks and opportunities are typically long-
term, and the change is gradual. We continue to 
periodically review our scenario database to assess 
for continued alignment with the latest scientific 
consensus and completed a further such review 
during 2024. 
We consider short-term mitigating actions for 
immediate action, and these address both risks that 
have a financial impact and those that do not. There 
are other potential mitigating actions that can be 
actioned at a suitable time in the future depending 
on how climate change develops compared to 
our scenarios. The immediate agreed mitigating 
actions are reported to the GRMC on a quarterly 
basis and also form part of our company strategy 
and are built into operational plans for the year. 
Our primary mitigating actions relate to continued 
focus on energy intensity reduction, transition to 
renewable sources of electricity, and materials 
transition to preferred raw materials, all of which 
are reported to the GET on a bi-monthly basis and 
largely form the basis of our SBTi Net-Zero journey.
Climate change has been identified as a Principal 
Risk within the Company’s risk management 
system. As a result, it is a permanent item for 
review and assessment at quarterly GRMC 
meetings. In addition, climate risk is reviewed 
by the Board at least once per year. The Board 
further reviews sustainability KPIs at every Board 
meeting, including KPIs relating to climate issues 
where appropriate. Through these mechanisms, 
climate-related risks continue to be fully integrated 
into the Company’s risk management system.
RISK MANAGEMENT
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Coats Group plc Annual Report and Accounts 2024
At Coats, our commitment to sustainability is not just 
a goal but a guiding principle that permeates all 
aspects of our operations. We recognise the critical 
nature of climate-related risks and opportunities and 
understand the importance of incorporating these 
into our business strategy to ensure high operational 
resilience and long-term business vitality. Climate 
change mitigation and adaptation are integral to the 
development of our wider business strategy. 
The Taskforce on Climate-related Financial 
Disclosures (TCFD) framework assists us in the 
identification, assessment, and management of 
climate-related risks and opportunities that may 
influence our future financial performance.
In conducting our evaluation of climate-related risks 
and opportunities, we have considered all three 
Divisions and all geographies where Coats operate.
As in previous TCFD reports, scenario analysis has 
been used to improve our understanding of the 
behaviour of certain risks to different climate 
outcomes, which helps assess the resilience of our 
business to climate change. Both physical risks and 
transition risks and opportunities have been 
evaluated using three climate-related scenarios, 
based on the Shared Socioeconomic Pathways 
(SSPs) endorsed by the Intergovernmental Panel on 
Climate Change (IPCC) and used in the development 
of the Sixth Assessment Report on climate change. 
Taskforce on Climate-Related Financial Disclosures cont.
In previous years, our assessment of physical risks 
was built on internally developed climate models 
utilising a range of external data sources, However, 
in 2024, we changed our approach by outsourcing 
the modelling of physical risks through use of Munich 
Re Location Risk Intelligence tool. This tool utilises 
one of the world’s most comprehensive databases 
for natural disasters and hazard modelling under 
different climate scenarios and provides detailed 
evaluations of different climate-related risks across a 
range of different climate scenarios and timelines for 
defined geographic locations. To obtain site-specific 
risk data, we utilised site-specific GPS coordinates.
Potential climate-related impacts on our business are 
assessed by our TCFD working group, in conjunction 
with a group of subject matter experts, with 
consideration given to the different climate scenarios 
and timelines. A bespoke financial impact model has 
been developed for each identified risk and 
opportunity and these models are reviewed, and are 
updated, where appropriate, on an annual basis.
The three Socioeconomic Pathway (SSP) scenarios 
utilised are as outlined in the table below, for the 
timelines used in our transition risk assessment.
The climate-related impacts on our operations and 
supply chain are modelled for each of these 
scenarios, with evaluation conducted on the risks 
and opportunities that might occur, focussing across 
short-, medium- and long-term time horizons. 
For transitional risk (TR), these correspond to 2030, 
2045 and 2070 respectively, however for physical 
risk (PR) the time horizons have been slightly 
extended to 2030, 2050 and 2100. The rationale for 
selection of these time horizons is as follows:
Short-term 2030 (TR and PR): this aligns with our 
near-term transitional strategy.
Medium-term 2045(TR) or 2050(PR): this is broadly 
aligned to our Net-Zero commitment and is at the 
longer end of our machinery asset lifespan. We also 
see clear divergence of physical climate impacts 
across the different scenarios at that point.
Long-term 2070(TR) or 2100(PR): is beyond the 
lifespan of our current asset base and allows us to 
model the long-term impacts. As a company with a 
heritage of over 200 years, it is important for us to 
look far ahead to understand issues that may impact 
the long-term viability of the Company, even beyond 
the life of our current asset base.
Our identified transitional risks and opportunities are 
primarily associated with our low carbon scenario 
and have a higher potential impact in the short term. 
Conversely, our identified physical risks are 
considerably more significant in high carbon 
scenarios, with their potential impact increasing over 
time. The materiality of risks and opportunities has 
been determined by considering the financial 
impact, the likelihood and the relationship of the 
impact to the life of any impacted assets.
On an annual basis, our internal finance team 
conduct an assessment of the scenarios, 
assumptions and accompanying financial models, 
with particular focus on changes made from the 
previous year.
In our 2024 assessment of transition risks, we added 
a new risk which relates to our materials transition 
strategy, with our target of transitioning to 100% 
non-virgin oil-based materials by 2030. Other 
transition risk and opportunity models have been 
reviewed and updated where appropriate. 
Further details are outlined on the following pages:
STRATEGY
Global Temperature increase over pre-industrial levels
CO2e emissions level
SSP used
Scenario name
2030
2045
2070
Low
SSP1
Sustainability ‘Taking the Green Road’
1.47°C
1.56°C
1.49°C
Medium
SSP3
Regional Rivalry ‘A Rocky Road’
1.52°C
2.03°C
2.91°C
High
SSP5
Fossil-fueled Development ‘Taking the High Road’
1.60°C
2.25°C
3.50°C
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Risks and opportunities matrix
* SSP1 data not available under Munich Re flood risk models
**SSP2 data adopted in substitute of SSP3, as SSP3 data not available under 
Munich Re drought risk models.
Financial Impact
Opportunities Low (<$15m)
Medium ($15m-$30m)
High (>$30m)
Summary of our most material risks and opportunities
Potential materiality
Risks
Low (<$15m)
Medium ($15m-$30m)
High (>$30m)
 TCFD category
Potential financial impact
<10 years {short-term}
~25 years {medium-
term}
~50 years {long-
term}
Mitigation and strategic response
Related Metrics and Targets
Transition: 
Current and 
emerging regulation
Risk 1: Introduction of carbon taxes leading to 
increased energy prices
SSP1
The strategy that the Company has in place to implement its Net-
Zero transition plan means we continually focus on reducing the 
embodied carbon in our supply chain. Where possible the cost 
of increased carbon taxes will be passed on to consumers.
Metric 
Scope 1 & 2 GHG emissions (Tonnes)
Target 
46.2% reduction in Scope 1 & 2 GHG 
emissions by 2030 from our 2019 baseline
SSP3
SSP5
Transition: 
Market and 
technology
Opportunity 1: Growth in light-weighting products in 
telecom and energy markets, enabling increase in 
market share. 
SSP1
 -
 -
Investment in technology and product development is already 
covered by our Research and Development plans by 2030.
SSP3
 -
 -
SSP5
 -
 -
Transition: 
Market, technology 
and reputation
Risk 2: Declining sales due to shifting customer 
sentiment towards more environmentally friendly 
product options.
SSP1
The strategy that the Company has in place to implement its Net-
Zero transition plan means we continually focus on reducing the 
embodied carbon in our supply chain. We work closely with 
brands to ensure new products are designed to meet changing 
customer requirements.
Metric 
Scope 1, 2 & 3 GHG emissions (Tonnes)
% non-virgin oil-based materials
Target
–	 46.2% reduction in Scope 1 & 2 GHG 
emissions by 2030 from our 2019 baseline.
–	 33% reduction in Scope 3 emissions by 
2030 from 2019 baseline.
–	 100% transition to non-virgin oil-based 
materials by 2030
SSP3
SSP5
Taskforce on Climate-Related Financial Disclosures cont.
STRATEGY cont.
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Transition: 
Market
Opportunity 2: Increased market share with apparel 
and footwear brands for thread and footwear 
structural components.
SSP1
Delivery of targets on operational sustainability metrics viewed 
favourably by brands.
Particular focus on emissions reduction and material 
transition and in both cases we have strategies in place to 
meet expectations.
Metric
Scope 1, 2 & 3 GHG emissions (Tonnes)
Target
- 46.2% reduction in Scope 1 & 2 GHG 
emissions by 2030 from our 2019 baseline
- 33% reduction in Scope 3 emissions by 
2030 from 2019 baseline
- 100% transition to non-virgin oil-based 
materials by 2030
SSP3
SSP5
Transition: 
Regulation and 
technology
Risk 3: Inability to source sufficient renewable energy 
to meet emissions reduction targets.
SSP1
We consider this risk to be largely remediated by our current 
plans for transitioning to renewable electricity including reducing 
reliance on the grid through solar panels as well as the use of 
renewable energy contracts where available.
Metric 
% renewable electricity
Target 
100% renewable electricity by 2030
SSP3
SSP5
Transition: 
Regulation and 
technology
Opportunity 3: Cost benefits from transitioning  
from fossil fuel generated to renewable electricity.
SSP1
Our commitment to transition to 100% renewable electricity by 
2030 will deliver cost saving opportunities as well as delivering 
reductions in carbon emissions. At the end of 2024, we have 
transitioned to 74% of renewable certified electricity across 
the Group.
Metric 
% renewable electricity
Target 
100% renewable electricity by 2030
SSP3
SSP5
Transition: 
Policy and 
technology
Risk 4: Inability to source sufficient recycled raw 
material at commercial price points impacting costs 
and ability to fully transition to a low carbon product 
range and hence achieve the SBTi targets.
SSP1
 -
We continue to increase the number of approved suppliers and 
worked with key suppliers to further the development of 
recycled polyester and other recycling plans for other 
raw materials.
Our newly inaugurated Madurai Sustainability hub, working with 
our Shenzhen hub will accelerate materials transition with 
exclusive focus on building a pipeline of new sustainable 
materials spanning across recycled, renewable and bio-based. 
Their work will involve close collaboration with key upstream 
supply partners as well as the key brands that we supply.
Metric 
% raw materials from non-virgin  
oil-based sources
Target 
100% of raw materials from non-virgin  
oil-based sources by 2030
SSP3
 -
SSP5
 -
Establishment of short-term financial materiality is  
work-in-progress and still to be determined.  
In medium- and long-term the financial materiality is 
expected to be low.
Taskforce on Climate-Related Financial Disclosures cont.
STRATEGY cont.
Risks and opportunities matrix cont. 
* SSP1 data not available under Munich Re flood risk models
**SSP2 data adopted in substitute of SSP3, as SSP3 data not available under 
Munich Re drought risk models.
Financial Impact
Opportunities Low (<$15m)
Medium ($15m-$30m)
High (>$30m)
Summary of our most material risks and opportunities
Potential materiality
Risks
Low (<$15m)
Medium ($15m-$30m)
High (>$30m)
 TCFD category
Potential financial impact
<10 years {short-term}
~25 years {medium-
term}
~50 years {long-
term}
Mitigation and strategic response
Related Metrics and Targets
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Physical:  
Acute
Risk 5: Flood risk causing damage to assets.
SSP1*
 -
 -
 -
Our robust business continuity plans which are regularly updated 
and refined will assist in ensuring that we have robust 
contingency plans in place. Sites in area of potential current risk 
have been assessed through local intelligence; all sites are 
mitigated against flooding through a combination of 
determination of proximity to river courses, flood defence 
systems, and raised height of infrastructure.
SSP2**
SSP5
Physical:  
Chronic
Risk 6: Drought stress which could lead to disruption 
of water supply in some units.
SSP1*
 -
 -
 -
Plans are in place to gradually invest in further water recycling 
capability as one of our key sustainability goals and this will 
focus first on the high water stress units, so the remediation of 
this issue is now in progress. Contingency plans to relocate 
production output if required.
Metric
% Water Recycling
Target
33% increase in water recycling rate by 2026 
from 2022 baseline
SSP2**
SSP5
Physical: 
Chronic
Risk 7: Extreme heat stress leading to possible need 
for plant relocation to those with favourable 
temperature regulation.
SSP1
Sites currently operating in areas of extreme or very high heat 
risk are mitigated through adequate ventilation and cooling 
systems, ensuring no loss of business of impact to operations. 
Investment in continually improving such systems mitigates 
against further rises in external temperatures.
SSP3
SSP5
Physical: 
Acute
Risk 8: Precipitation Stress risk causing damage to 
assets.
SSP1
The use of Munich Re climate data modelling has identified 
precipitation stress as a current and future risk, hence the 
addition in the 2024 TCFD report. Several sites currently are 
located in areas identified as extreme and very high risk; 
however, local intelligence outlines in most instances that risk 
is mitigated through adequate drainage and continuous 
preventative maintenance on roofing. Future risk can be 
mitigated through investment in increased drainage and flood 
defence systems.
SSP3
SSP5
Taskforce on Climate-Related Financial Disclosures cont.
STRATEGY cont.
Risks and opportunities matrix cont. 
* SSP1 data not available under Munich Re flood risk models
**SSP2 data adopted in substitute of SSP3, as SSP3 data not available under 
Munich Re drought risk models.
Financial Impact
Opportunities Low (<$15m)
Medium ($15m-$30m)
High (>$30m)
Summary of our most material risks and opportunities
Potential materiality
Risks
Low (<$15m)
Medium ($15m-$30m)
High (>$30m)
 TCFD category
Potential financial impact
<10 years  
{short-term}
~25 years  
{medium-term}
~50 years  
{long-term}
Mitigation and strategic response
Related Metrics and Targets
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STRATEGY cont.
TRANSITIONAL RISKS 
Risk 1) Emerging regulation: introduction of 
carbon taxes leading to increased energy prices. 
An increase in the scope and level of carbon pricing 
through new emerging regulations could impact 
both our input materials and conversion costs as the 
cost of carbon is factored into energy, water, waste, 
transportation and raw materials. Our low-carbon 
scenario assumes that carbon taxes will be one of 
the levers used to achieve rapid decarbonisation 
of energy and industrial products and processes.
Our scenario assessment models a high initial 
(short term) tax and a drop in tax in subsequent 
time horizons. Under our low-carbon scenario 
SSP1, these could be introduced in the coming 
few years, increasing rapidly through to 2030 
after which point we expect them to stabilise. 
Our high carbon scenarios, SSPs 3 and 5, does 
not envisage there being any carbon taxes.
In 2024, we evaluated progress made at COP29 
on intergovernmental advancement towards 
agreement of a global price for carbon tax, and 
whilst progress has been made we have not yet 
reached a point where a global carbon price has 
been agreed. The Carbon Border Adjustment 
Mechanism (CBAM) in the EU, which is aimed at 
addressing carbon leakage, will likely result in 
introduction of a UK CBAM coming into play in Jan 
2027, and although initially only for carbon intensive 
goods it will result in an EU and then UK Emissions 
Trading Scheme and defined carbon trading costs. 
We continue to monitor developments in this area 
enabling us to refine impact modelling for Coats.
In line with our previous years assessment, we 
expect the range of carbon taxes could sit between 
$90 and $160 per tonne of CO2e under SSP1, and 
for evaluation of this risk we anticipate that this 
would be applicable to our Scope 1 and 2 emissions. 
This range is derived from work conducted by Wood 
MacKenzie on the level of carbon pricing necessary 
to ensure global warming doesn’t exceed a level of 
1.5oC from pre-industrial levels and work conducted 
by the International Energy Agency for their Net-
Zero Scenario.
The risk impact associated with the implementation 
of a carbon tax on our upstream Scope 3 emissions 
would be significant. However, we consider that this 
increased cost will be spread across the value chain 
and will not be fully passed onto Coats. 
For determination of our 2024 financial impact 
related to carbon tax on Scope 1 and 2 emissions, 
we have adjusted our 2019 baseline emissions to 
align with our re-baselined Net-Zero target 
submission which has recently been approved by 
SBTi. This adjustment has made a negligible change 
to the US$ impact that will come from future 
implementation of carbon tax versus that reported 
in 2023.
Without remediation, and hence based on current 
Scope 1 and 2 emissions levels persisting, the 
potential for carbon taxes under scenario SSP1 
would see an additional annual cost of between  
$24 million and $42 million by 2030.
Mitigation:
Coats remains fully committed to achieving our 
near-term 2030 Science Based Targets for 
emissions reductions which are a pathway to us 
achieving our ultimate goal of Net-Zero by 2050. 
As part of these targets, Coats commits to reduce 
absolute Scope 1 and 2 GHG emissions 46.2% by 
2030 from a 2019 base year. We also commit to 
increase annual sourcing of renewable electricity 
from 5% in 2019 to 100% by 2030. Coats further 
commits to reducing absolute Scope 3 emissions 
by 33% within the same time frame.
Additionally, under our SBTi approved Net-Zero 
target, we commit to reduce absolute Scope 1 and 
2 GHG emissions by 90% by 2050 from a 2019 
base year and commit to reduce absolute Scope 3 
emissions by 90% within the same time frame.
These targets demonstrate Coats’ ambition to 
reduce its carbon footprint and exposure to 
carbon pricing, and to achieve a better 
competitive position in the low carbon economy 
than its peers.
Post-mitigation, where mitigation is taken as 
delivery of our Science Based Targets for reduction 
of Scope 1 and 2 emissions, this annual cost 
increase would range from $13 million to $23 million 
based on our above assumptions of carbon  
tax rates. 
We will meet our Scopes 1 and 2 emissions 
reduction targets through two programmes.  
By using our Smart energy metering and 
monitoring systems, we can analyse energy use at 
the machine level in key plants and apply these 
insights to other units for improved energy 
efficiency. Through our electricity transition to 
renewables strategy, we will also be switching our 
Scope 2 energy progressively to renewable 
sources. This will be done through a hierarchy of 
approaches according to the opportunities 
provided by the regulatory environment in each 
country where we operate. We will firstly support 
the creation of new renewable assets through 
direct engagement with on-site or off-site projects 
in partnership with energy companies. Where this 
approach is not possible we will support existing 
renewable assets by purchasing their energy. If 
neither of these approaches are possible we will 
support the renewable industry through the 
energy attribute markets. We recognise that 
regulatory environments around energy supply 
are constantly evolving and our approach is 
flexible to allow for us to optimise our approach as 
changes occur. We are well on track towards our 
commitment of 100% renewable electricity 2030 
target, with 74% Group electricity registered as 
green certified in 2024, up from 29% in 2022.
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Risk 2) Market, Technology & Reputation: 
Declining sales due to shifting customer  
sentiment towards more environmentally  
friendly product options
Consumers are increasingly aware of their carbon 
footprint, leading to a growing demand for brands 
with low-carbon or sustainable products. Meeting 
this demand requires the increased use of recycled, 
renewable or bio-based materials with lower 
emission manufacturing processes. An analysis 
in 2024 of the main apparel and footwear brands 
and retailers to which we supply thread products 
showed that 95% of our sales to this group was 
to brands and retailers that have either SBTi 
approved emissions reduction targets or separately 
disclosed emissions reduction targets. This 
emphasises the importance that our key customers 
place on emissions reduction programmes and 
underlines the need for them to increasingly 
work with suppliers who have committed to and 
are delivering targeted emissions reductions.
In recent years, our teams have diligently worked 
to mitigate this risk by adhering to supplier targets 
and standards set by our key brands. This includes 
reducing emissions and specifying reduced carbon 
raw materials used in the production of finished 
thread and footwear structural components.
Our materials transition strategy focuses on 
reducing the use of virgin oil-based raw materials, 
thereby lowering the carbon embedded in our 
products. This effort is complemented by our 
energy transition commitments, where we are 
progressing towards using renewable sources 
of electricity. A sustained focus on reducing 
energy and water intensity projects is an integral 
Risk 3) Regulation and Technology: Inability to 
source sufficient renewable energy to meet 
emissions reduction targets.
A number of countries within our operational 
scope continue to face regulatory challenges 
in the energy market, which presently hinder or 
prevent the transition to renewable electricity. To 
address this risk, we evaluate the alternative cost 
of procuring Energy Attribute Certificates (EACs) 
to meet our requirements when direct access 
to certified renewable energy is not feasible. 
The financial implications of sourcing EACs are 
expected to persist; however, we anticipate that 
regulatory obstacles necessitating such measures 
will significantly decrease as more nations 
develop functional renewable energy markets.
Mitigation:
Our 2026 Scope 1 and 2 emissions reduction 
target is to deliver a 22% reduction from 
our 2022 baseline, keeping us ahead of 
our committed and approved Science 
Based Target reduction trajectory, and in 
2024 we have out-performed against this 
2026 target. We consistently engage with 
customers who have set climate-related 
targets, ensuring that our plans and targets 
are in alignment with their requirements.
Following the 2023 inauguration of our 
Sustainability Hub in Madurai, India, we continue 
to accelerate our transition to non-virgin oil-
based materials, ensuring delivery of our 2026 
materials transition target of 60% preferred 
materials which will lead to 100% transition by 
2030. In 2024 we increased our % of preferred 
materials to 46% from 35% in 2023. Both our 
thread and structural footwear component 
innovation teams are staffed with post graduate 
and PhD expertise in textile engineering, and 
work in close collaboration with each other as 
well as with external innovation partners and 
customers on development of highly innovative 
low carbon materials and processes.  
Their product development efforts are primarily 
concentrated on advancing new recycled, 
renewable, and bio-based materials that meet 
stringent end-use technical requirements while 
significantly reducing environmental impact.
Mitigation:
Our mitigation strategy for this risk is underpinned 
by our current plans to transition to renewable 
energy, with a commitment to use 100% renewable 
electricity by 2030. We acknowledge that in 
some material countries (e.g. Turkey, Vietnam), 
the regulatory framework is not yet supportive 
of off-site supply of renewable electricity.
Our initiative to install on-site rooftop solar 
panels via power purchase agreements with 
energy suppliers will continue, but it will only 
represent a small fraction of our overall energy 
supply. We will maintain a strong emphasis 
on enhancing energy efficiency across our 
facilities by utilising actionable insights provided 
by our expanding smart energy metering 
programme, which has been implemented at 
several key manufacturing sites. Key initiatives 
in this area include efficiency programmes 
for compressed air and steam generation, as 
well as upgrades to machine motors through 
the application of inverter technology.
When regulatory constraints prevent transitioning 
to renewable electricity on time, we will use EACs 
to meet emissions targets. We have assessed 
the costs based on current EAC prices at key 
facilities and consider the financial risk negligible.
We acknowledge that EAC prices, currently 
ranging from $0.32/MWh to $3.5/MWh with an 
average of $1.25, may fluctuate in the future 
as demand changes. We will monitor this risk 
regularly to address any significant changes. 
aspect of our utilities strategy, aimed at further 
decreasing the carbon footprint of our products.
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STRATEGY cont.
Risk 4) Policy & Technology: Inability to source 
sufficient recycled raw material at commercial 
price points impacting costs and ability to fully 
transition to a low-carbon product range and 
hence achieve the SBTi targets.
At present, our recycled high tenacity polyester is 
predominantly sourced from PET bottle feedstocks 
and the emerging ‘Extended Producer Responsibility’ 
regulations in the EU and other regions is expected to 
impose greater requirements on the soft drinks 
industry, encouraging them to recycle their own waste 
and increase the emphasis for bottle-to-bottle 
recycling. This may reduce the longer term availability 
of PET bottles as recycled feedstock for our raw 
materials and could impact future costs of transition 
through to 2030.
Delivering our materials transition target of 100% non-
virgin oil-based materials in 2030 cannot rely on 
recycled PET bottles alone and will require 
supplementary alternatives to our current virgin  
based feedstocks.
Comprehensive modelling and analysis by our 
sourcing teams has concluded a cost premium 
associated with the lower carbon non-virgin material 
driven primarily by lower supply and higher demand 
dynamics and lack of scale in newly emerging low-
carbon technologies.
The anticipated cost increases associated with 
procurement of non-virgin oil-based raw material 
substitutes is based on currently available technologies 
and pre-mitigations and may have a high financial 
material impact in 2030. Our path to 100% transition  
by 2030 will depend on availability of circular material 
supply at economically acceptable levels whilst 
maintaining the high-quality standards that  
customers require.
PHYSICAL RISKS
We are committed to keeping our risk models up to 
date. In 2024 we switched to using the Munich Re 
Location Risk Intelligence Tool. Although in some 
cases the classification of physical risk has changed 
slightly, the key material risks remain consistent 
with the in-house tool used in the previous analysis. 
This independent tool has been used to explore 
the current and potential future physical climate-
related risks to 43 of our most material sites. The 
tool provides a natural hazard assessment on the 
basis of data from past events and forecasts future-
related assessments on the basis of climate change 
models. The physical climate-related natural hazards 
covered by the tool include floods, storms, sea level 
rise, drought, wildfires and precipitation stress.
Risk 5) Acute: Flood damage risk.
Two out of our 43 sites (Dhaka, Bangladesh and 
Samutsakorn, Thailand) are at very high river flood 
risk. A further four sites are at high river flood risk. 
The impact of flooding would be a reduction in 
revenue and increased expenditure due to repairs. 
Additionally, we analysed storm surge risk across 
our sites and noted that although over 90% of the 
total asset value of our portfolio were not at-risk 
our analysis identified three sites (one in Thailand 
and two in China) at risk from storm surges. While 
sites located in areas currently identified as being 
at-risk are adequately protected from flooding, due 
distances from water courses, raised infrastructure, 
and municipal flood defences, it should be noted 
that this year, our site at Sevier, USA, suffered 
some flood damage as a consequence of hurricane 
Helene; the first hurricane in the region in 110 
years. A further site which experienced flooding 
in 2024, Ambasamudram, was identified by the 
Mitigation:
In the past four years we have continued to 
increase the number of approved suppliers of 
recycled polyester and other preferred materials 
and we envisage no supply constraint impacting 
delivery of our 2026 target of 60% materials 
transition to non-virgin oil-based materials.
Our innovation and sourcing teams have built 
collaborative relationships with new materials 
start-up companies who have developed and 
commenced scale of new technology in circular 
textile to textile recycling. The inauguration of our 
new Sustainability Hub in Madurai has seen 
acceleration of new materials innovation, 
supporting a move from recycled PET bottle 
feedstock to increasing use of feedstocks derived 
from post-industrial and pre- and post-consumer 
textile waste streams. In 2024, efforts have 
resulted in prototype textile to textile thread 
production which is currently undergoing 
comprehensive internal and customer-based 
technical evaluation.
We expect that new EU Green Deal regulations 
will drive increased availability of new non-virgin 
oil-based materials and we are seeing many of the 
brands that we serve committing to volume 
offtake agreements with new materials start-up 
companies, enabling the acceleration of scaled 
production capacity which is expected to drive 
price down in future. We expect the industry to 
continue delivering commercial solutions in this 
space. We consider that price will be a potential 
mitigation lever, as well as an ability to offset cost 
pressures through other efficiency initiatives.
Mitigation:
Each business unit has a business continuity plan 
and our property acquisition strategy looks to 
avoid areas that could be susceptible to an 
increased risk of flooding, while maintaining a 
spread of regional and global supply chains 
further reduces the impact of local disruption from 
any one site being flooded. In 2024, two sites, the 
above-mentioned Sevier, and Ambasamudram, 
experienced significant flooding which resulted in 
some loss of productivity and repairs to the sites. 
Nonetheless, our mitigating activities, have limited 
the financial impact and with improved drainage 
systems and reinforced walls constructed, we 
believe we are well placed to deal with any future 
increase in probability of flooding. Hence, we see 
ourselves as fully able to manage this risk with 
negligible impact.
tool as being at high precipitation risk, and as 
a result we now identify this as a standalone 
risk (Acute Precipitation Stress) to Coats. 
The Location Risk Tool models an increase in 
river flooding risk, compared to current risk, under 
carbon scenario SSP5. Under this scenario, three 
further sites are projected to move from medium 
to high river flood risk. However, based on the 
sites identified by the Munich Re Location Risk 
Intelligence tool, the financial impact from medium 
to long term flood risk has now decreased to low.
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Taskforce on Climate-Related Financial Disclosures cont.
STRATEGY cont.
River Flooding
River Flooding
Heat Stress
Precipitation Stress
Drought Stress
Headquarters
Manufacturing Sites
Presence in market
Summary of locations 
identified by Risk 
Intelligence Tool with 
High Current Risk
Ambasamudram, India
Bogor, Indonesia
Cairo, Egypt
Chittagong, Bangladesh
Choloma, Honduras 
Dhaka, Bangladesh 
Dongguan, China 
Faridabad, India
Hanoi, Vietnam
Horana, Sri Lanka 
Lahore, Pakistan
Odorhei, Romania
Panoli, India 
Pereira, Colombia 
Shanghai, China 
Shenzhen, China 
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STRATEGY cont.
Risk 6) Chronic: Drought stress which could lead to 
disruption of water supply in some units. 	
The independent tool has identified one location 
(10th of Ramadan City, Egypt) where there is 
very high risk of drought stress. An additional 
three sites are at high-medium risk of drought.
Under scenario SSP5 the number of sites at very 
high or extreme drought stress risk are forecast to 
increase. Our highest carbon scenario (SSP5) sees 
drought stress in our 10th of Ramadan City site, along 
with sites in Morocco, Tunisia and Mexico increasing 
to ‘extreme’ by 2050. Under these scenarios 
increased capex should be allocated to mitigation 
measures such as increased levels of water recycling 
to reduce dependency on new water extraction.
However, if these sites become uninhabitable due 
to extreme heat, it is anticipated that our local 
customer base will diminish quickly as assets are 
relocated to regions with more favourable climates.
Risk 8) Acute: Precipitation Stress
Climate change and rising global temperatures can 
lead to an intensification of high-precipitation ev 
ents and an alteration of the frequency of such 
events, which can cause damage to buildings.  
Our data suggests 10 out of 43 sites are at extreme 
precipitation stress risk, with a further six sites at 
very high risk. The tool has highlighted both the 
Sevier and Ambasamudram sites as being ‘very 
high risk’ in an RCP 4.5°C scenario. Additionally the 
Intelligence Tool has noted that our site in Pereira 
(Colombia) is currently at high risk for ‘maximum 
5-day precipitation’, receiving 459.9mm currently 
and increasing to 519.6mm under RCP 4.5.
Mitigation:
The risk of water shortages leading to plant 
stoppages is difficult to quantify, so the 
approach taken here is to assess the capex 
requirement to upgrade the effluent treatment 
plants to recycle enough water to mitigate 
this risk. In 2024 we commenced projects to 
introduce new water recycling projects in two 
of our major manufacturing facilities, and in line 
with the targets under our Water Sustainability 
pillar, we will continue to prioritise replacement 
and upgrading of units which operate in areas 
with higher water stress levels as identified in 
our physical risk assessment. Using the World 
Resources Institute Acqueduct Tool classification 
for water stress, 49% of the water in our facilities 
in medium-high, high and extremely-high water 
stress locations was recycled in 2024, compared 
Mitigation:
In the medium- and long-term, heat stress 
impacts are set to increase in all carbon 
scenarios modelled. Contingency planning is 
in place for the realignment of plant capacities 
in the event of extreme weather event, as are 
appropriate insurance policies. As noted, air 
conditioning and ventilation systems currently 
enable normal business operation even at sites 
with extreme heat stress; further investment 
on cooling and ventilation is reflected in our 
financial impact models to mitigate against 
rising temperatures in future scenarios.
Mitigation: 
Current and future actions to mitigate the 
impact the damage caused by high levels 
of precipitation include improving drainage 
systems at sites, the installation of pumps to 
remove excess water quickly and efficiently, 
and reinforcing flood barriers and walls 
around the sites to stop water ingress. 
Furthermore, our continuously reviewed site-
level preventative and corrective maintenance 
strategies are designed to quickly address 
high-precipitation events and limit potential 
damage from persistent precipitation.
with 27% across all manufacturing sites. 
We target an increase in our water recycling 
rate by 33% in the period 2023 to 2026.
Under the Munich Re Forecast, the future 
risks associated carbon scenario SSP2 have 
decreased to the low financial impact category, 
as the investment required to offset water 
reliance with recycling stations is associated 
with sites with lesser water consumption 
volume (requiring reduced treatment 
capacities and associated running costs).
Risk 7) Chronic: Extreme heat stress leading to 
possible need for plant relocation to those with 
favourable temperature regulation.
Global temperature is expected to rise in all 
scenarios (SSP1, SSP3, SSP5) that the Tool models 
for heat stress risk. 55% of sites are at high, very 
high or extreme risk of heat stress. Under all 
scenarios the number of sites at extreme heat stress 
risk increases over time. Two sites, in Pakistan 
and India, currently suffer from very extreme 
maximum annual temperatures (in excess of 44°C), 
and under SSP3 these maximum temperatures 
are projected to increase to over 47.5°C by 2100. 
Nonetheless, it should be noted that currently, 
despite the high temperature, business continues 
as normal at these sites due to mitigating actions.
Increasing temperatures may result in higher costs 
associated with operating air-conditioning systems 
to maintain appropriate indoor temperatures at 
our facilities. In severe cases, extreme heat might 
necessitate the cessation of manufacturing activities 
in these areas due to unworkable conditions. 
RISKS SUMMARY
Physical risk mitigation from extreme weather is 
addressed at site level, in conjunction with up-to-
date data from the Munich Re Location Risk 
Intelligence Tool.
In the short term, risks are predominantly 
transitional, related to the Company’s low-carbon 
(SSP1) scenario. The strategy that the Company has 
implemented to achieve Science Based Targets 
for emissions reduction, through transition to 
renewable electricity, and conversion to non-virgin 
oil-based materials serves as a robust response 
to these risks. The medium- to long-term risks 
are primarily physical, more closely associated 
with higher carbon scenarios (SSPs 3 and 5). 
Increased precipitation would lead to 
increased capex on mitigation measures 
to prevent damage to our sites.
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STRATEGY cont.
OPPORTUNITIES
Opportunity 1) Growth in light-weighting  
products in transport, energy and telecom 
infrastructure markets, enabling significant 
increase in market share.
At Coats we aim to reduce the carbon footprint 
of our products through use of lower weight 
(and hence lower carbon) products targeted at 
markets we have identified as high growth. 
Following a review of our Performance Materials 
transportation light-weighting strategy at the 
end of 2024, we have updated our model 
associated with light-weighting of automotive 
components. The slower adoption rates and 
preferred use of aluminium due to lower cost has 
reduced the strategic relevance of automotive 
light-weighting end-use at Coats. On this 
basis, our light-weighting focus will continue 
only on the telecom and energy segments.
Coats produces composite tapes, branded as  
Gotex Xtru™ , which are used to facilitate light-
weighting in the energy end-use segment.  
These tapes are designed to strengthen and 
improve the longevity of flexible pipes used in the 
oil and gas industry, accelerating the conversion 
from legacy steel pipes with known corrosion 
problems to lighter-weight non-corrosive composite 
pipelines. The tapes can be custom made with a 
variety of high-performance fibres like carbon or 
aramids, coatings and high-performance plastics to 
suit the specific needs of the end-use application. 
For telecoms infrastructure, we offer a broad 
portfolio of products that enable the design of 
thinner and lighter fibre-optic cables which lower 
deployments costs and increases resilience 
to environmental factors. Coats has recently 
developed and launched StremX, an innovative 
product that has garnered considerable interest 
from fibre optic cable manufacturers. Following 
extensive internal and customer testing in 2023 
and 2024; we have delivered customer approvals 
with StremX specified in their cable design with 
programme orders in place through 2024 and 2025. 
This substitution not only maintains performance 
but also results in substantial cost savings. 
The potential additional operating profit in 2030 
from the growth in this product segment ranges 
from around $13 million to $19 million. This comes 
from growth in sales of our light-weighting products, 
mainly for the telecoms and energy markets. 
Beyond 2030 we have lack of visibility and therefore 
financial impacts beyond this point have not  
been modelled.
Strategy to realise opportunity:
Coats is exploring this opportunity through 
several initiatives and continued investment in 
R&D and new product development through 
our Gotex (Spain) and Turkey innovation teams 
which allow us to develop new products in 
collaboration with customers. In 2023 we 
invested in our state-of-the-art extrusion 
line in Gotex to produce composite tapes 
for the energy markets, and on the back 
of this we are seeing commitments from 
customers for future supply contracts which 
will result in requirements for future additional 
capacity build from 2025 and beyond with 
anticipated additional capex requirements 
of US$6 million up to 2030. We launched 
StremX in 2023 as a cost-effective alternative 
strength member for fibre optic cables 
which has enabled the design of thinner 
and lighter cables receiving multiple OEM 
specifications through the course of the year. 
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STRATEGY cont.
Opportunity 2) Increased market share with 
apparel and footwear brands through our 
commitment to reduce emissions.
We anticipate increasing our market share with 
brand customers as we maintain our focus on  
their environmental commitments and collaborate 
with our suppliers to ensure they have  
well-defined transition plans towards achieving  
Net-Zero by 2050. This expectation is supported 
by the growing trend of governments, similar 
to the UK, establishing Net-Zero targets and 
implementing emissions regulations, alongside a 
continued shift in consumer preference towards 
more environmentally-friendly products.
We anticipate that several of our primary brand 
customers will expand their market share due 
to their stringent environmental standards 
required for their upstream suppliers. Analysis 
conducted in 2024 revealed that 95% of Coats’ 
revenue from leading brands is derived from 
those committed to Science Based Targets 
initiative (SBTi) emissions reduction goals or have 
independently disclosed emissions reduction 
targets. Our Scope 1 and 2 emissions, as well as 
the embodied carbon of our products, are included 
in the Scope 3 emissions of our downstream 
customers. Hence, reducing our emissions 
reduces the upstream emissions of our clients. 
Opportunity 3) Transition to renewable electricity
In line with our 2030 commitments, we will 
transition to 100% renewable electricity by the 
end of this decade. As we transition from fossil 
fuel-generated to renewable electricity through 
install of rooftop solar arrays and introduction 
of long-term PPA contracts for renewables 
supplies, we have seen reduction in the unit 
US$ per kWh, and therefore see reduced overall 
energy cost as a transitional opportunity through 
to 2030. This transition will reduce our Scope 
2 market-based emissions from 167k tonnes 
in FY2022 to zero in FY2030 at the latest.
Strategy to realise opportunity:
By investing in various renewable energy 
initiatives we can reduce costs and carbon 
emissions. We aim to secure long-term lowest 
cost contracts for renewable energy and use 
of Renewable Energy Guarantees of Origin 
(REGO) backed suppliers where available. These 
measures should help us achieve our target of 
100% sourcing of renewable electricity by 2030. 
The potential cost reduction in energy 
procurement to come from this transition in 
2030 is between US$5 million and US$6 million.
Transitioning from virgin oil-based raw materials to 
recycled, renewable, and bio-based materials results 
in a net reduction in the embedded carbon of  
the products we supply to our customers.  
As Coats’ raw materials increasingly meet 
production requirements with low emissions 
through the use of non-virgin oil-based materials, 
we anticipate becoming a preferred supplier for 
brands aiming to reduce the carbon footprint of 
their supply chain to achieve their Net-Zero targets.
Strategy to realise opportunity:
In the apparel and footwear sectors, we are 
continuing to deliver consistent market share 
growth, attributable in part to our robust 
sustainability initiatives. In 2024 our recycled 
polyester thread sales grew to US$405 million, 
up from US$172 million in 2023. Our reputation 
is enhanced by our commitments to transition 
to more sustainable thread and footwear 
structural component raw materials in line with 
our materials transition targets of transitioning 
to 60% non-virgin oil-based raw materials by 
2026 and 100% by 2030. Additionally, we have 
committed that all our electricity and 70% of 
our total energy will be renewable by 2030. 
In 2023 we revised our models for this 
opportunity, including incorporation of the 
additional market share opportunities that come 
from our 2022 footwear structural component 
acquisitions. The potential additional operating 
profit from this increased market share in 2030 
ranges from around $35 million to $53 million. 
We have developed strong innovation capability 
in all three of our Divisions, with teams of 
postgraduate and PhD scientists, engineers 
and technicians working across multiple 
locations on development of new sustainable 
products. Innovation and sustainability are 
inextricably linked – and when developing new 
products, incorporation of sustainable, lower 
carbon raw materials are front of mind on every 
development project. Key improvements in this 
manner have underpinned development of new 
thread products such as EcoCycle™, EcoVerde™ 
and EcoRegen™ as well as development of new 
Rhenoprint™ powders for structural footwear 
components which contain a ground breaking 
level of 70% recycled polymers and newly-
impregnated composite materials with reduced 
content of virgin oil-based latex dispersions.
To achieve the growth anticipated from this 
opportunity, we expect an average annual 
capex cost to support this growth of between 
$6 million and $9 million up to 2030. 
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OTHER OPPORTUNITIES
We have identified two further opportunities, 
where we see the potential to reduce our 
emissions further. Our focus for 2025 will 
be to review the scenario impacts of these 
opportunities further and will update on our 
progress against these in our FY 2025 report. 
Opportunity 4) Reduced costs from reduced 
waste and increased recycling, i.e., expansion 
of the circular economy.
New EU legislation requires all packaging in 
the EU to be fully recyclable by 2030. These 
proposals aim to reduce packaging waste by 
15% per Member State per capita by 2040, 
through increased reuse and recycling initiatives. 
The Commission anticipates that these rules 
will lead to a reduction of 23 million tonnes in 
greenhouse gas emissions by 2030, decrease 
water usage by 1.1 million cubic metres, and lower 
environmental damage costs by €6.4 billion. 
Strategy to realise opportunity:
We continue to focus on means to reduce 
our environmental impacts associated with 
packaging materials; both in respect of the 
packaging that is associated with the raw 
materials we purchase, and with the packaging 
materials that accompany our products 
when delivered to our customers. We have a 
dedicated team focussed on this imperative, 
with internal targets set to deliver continued 
reduction in waste. 
Strategy to realise opportunity: 
Typically, the textiles industry performs dyeing 
operations with liquor ratios in the range of 
8:1–10:1, whereas Coats dyeing technology 
typically operates at ranges at least 30% 
lower than this. Resources are being invested 
in emerging technologies to achieve thread 
coloration without using water as a dyeing 
solvent and heating medium. In 2018, an 
investment was made in Twine, an Israeli start-
up developing digital dyeing technology for 
yarns with advanced printing technologies. 
In the past two years we have rolled out Twine 
technology to support our colour sampling 
process in a handful of key markets. We 
also continue to work with key suppliers on 
developing future technologies to deliver step 
changes in the water and energy intensity 
required for coloration of fibres and filaments. 
Due to the technology barriers that exist in 
this area, delivery of yields from this focus 
are likely to be more long-term in nature.
STRATEGY cont.
Taskforce on Climate-Related Financial Disclosures cont.
Opportunity 5) Improvements in process 
technology reducing water and energy intensity. 
Dyeing threads is highly energy and water-
intensive. Current nylon and polyester dyeing 
methods require heating the dye liquor to 110-
130°C under high pressure, using steam from on-
site boilers. This process consumes about 60% 
of our energy and 90% of our water at Coats. 
Reducing water usage and energy for heating will 
lower our carbon footprint and water demands.
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SUMMARY OF RISKS AND 
OPPORTUNITIES
Our TCFD working group has analysed and 
attempted to quantify the financial impacts of 
climate-related risks and opportunities across 
the three outlined scenarios and short-, medium-, 
and long-term time horizons. In aggregate, we 
have concluded that our risk mitigation strategies, 
sustainability strategy, and ambitious goals 
render our business resilient to climate change. 
In our 2024 analysis, which incorporates the 
impacts of our recent acquisitions, our overall 
assessment suggests that the opportunities 
are broadly comparable to the risks in the short 
term and are linked to the same scenarios, 
thus considered well-balanced. We will 
continue to explore additional opportunities 
to provide a comprehensive assessment of 
the longer-term balance in due course.
Our analysis will be updated as new data 
becomes available from both internal and 
external sources and we will continue to 
monitor our climate exposures and action plans 
through Coats’ risk management framework 
and governance structure. The identified 
opportunities will be developed in alignment 
with the Company’s strategy and objectives.
Resilience:
Resilience is evidenced in most of our mitigation 
approaches described in this section of the report.
We demonstrate resilience to climate-related 
supplier disruption due to the diversity and 
geographic distribution of our suppliers, as well as 
having alternative sources for all key raw materials. 
Having over 25,000 customers across various 
regions ensures considerable resilience from a 
customer perspective. Our single biggest customer 
impacts less than 10% of our annual revenues.
During the Covid pandemic, it was demonstrated 
that our global standardisation of ERP systems, 
master data, and product ranges supports a high 
level of resilience if any of our manufacturing  
units are affected by extreme weather events.  
We can transfer production schedules from one 
manufacturing facility to another quickly and 
efficiently, minimising impacts on customer supply.
Based on our analysis, we conclude that our overall 
climate risk exposure is low. Our existing and 
planned mitigation strategies suggest that the 
Group is financially resilient and strategically robust 
concerning climate change. Any impact will be 
managed within our regular business activities; 
therefore, no fundamental changes to business 
strategy or budgets due to climate change are 
expected in the foreseeable future. Additionally, 
there are no effects of climate-related matters 
reflected in the judgements and estimates applied  
in our financial statements.
Taskforce on Climate-Related Financial Disclosures cont.
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METRICS AND TARGETS
Coats has considered TCFD guidance for relevant 
metrics and has included those that are appropriate 
for our business. Assets-at-risk is not considered 
a relevant metric given our analysis of risks, 
and Coats has not determined yet whether an 
internal carbon price strategy would add value 
to our management of climate-related risk. 
Coats monitors and reports on Scopes 1, 2 and key 
Scope 3 greenhouse gas (GHG) emissions on a 
regular basis as well as both energy consumption 
and intensity. We calculate Scopes 1, 2 and 3 
emissions in accordance with the Greenhouse 
Gas Protocol Corporate Accounting and Reporting 
Standard and disclose separately here in our 
Annual Report on page 40 and, in more detail, in 
our Sustainability Report coats.com/sustainability. 
Senior management remuneration is linked to 
key sustainability targets including those relating 
to emissions reductions; details can be found 
in the Remuneration Report on page 92.
In 2022 we set new ambitious sustainability targets 
for delivery across the 2023-2026 time horizon.  
By 2026, we have targeted to deliver a 22% 
absolute reduction in Scope 1 and 2 emissions from 
our 2022 baseline, which will take us well beyond 
the required trajectory for meeting our approved 
Science Based Target emissions reductions by 
2030. On a monthly basis we measure our energy 
source mix and the proportion of certified renewable 
electricity within that. In addition, we measure 
energy and water intensity metrics as these both 
contribute to Scope 1 and 2 emissions reductions. 
Our principal metric for managing Scope 3 
emissions is the overall transition from virgin oil-
based raw materials to preferred raw materials. 
In 2022 we set an interim target to source 60% 
preferred raw materials, by volume, by 2026 
and have a longer-term target to transition 
fully to preferred raw materials by 2030. 
Coats has developed near term Science Based 
Targets which have been validated and approved 
by Science Based Targets initiative. These address 
the full range of value chain emissions and we 
regard them as the most comprehensive approach 
to target setting for climate change mitigation. We 
commit to emissions reductions of Scopes 1, 2 
and 3 emissions in line with the 1.5°C Pathway up 
to 2030 and consider them crucial in managing 
the risk of not meeting customer expectations. 
Components of this target include:
–	A commitment to reduce absolute Scope 1 and 2 
GHG emissions 46.2% by 2030 from a 2019 base 
year, and absolute Scope 3 emissions by 33%  
by 2030.
–	Increase sourcing of renewable electricity to 
100% by 2030. 
–	Validation of Net-Zero targets for our Scopes  
1, 2 and 3 emissions for 2050. (See below)
–	Additionally, we have set near term internal 
targets to ensure delivery of our SBT targets as 
follows:
–	Increase renewable energy to 70% by 2030.
–	No virgin oil-based primary raw materials by 2030. 
–	Transition to 60% preferred raw materials by 2026. 
We classify preferred raw materials as those which 
are non-virgin oil-based.
Coats Net-Zero targets were successfully validated 
by SBTi in 2024 and are currently in the process 
of being rebased following the acquisitions of 
the Texon and Rhenoflex structural footwear 
components business made in 2022. The targets, 
to reduce all emission by 90% in 2050 from a 
2019 base year, relate to absolute contraction 
and abatement of emissions from Scopes 1, 2 
and 3 and cover all GHGs (excluding NF3 which 
is not relevant to Coats’ value chain) using cross-
sector pathways and together with neutralisation 
of a small element of residual emissions. Post-
delivery of our 2030 near-term emissions reduction 
targets, the key elements that will require 
continued abatement are the heat energy used 
in dyeing, the emissions from energy used by our 
suppliers, and the emissions coming from product 
and people transportation. In 2024 we have 
commenced work on our Net-Zero Transition Plan 
Taskforce and will report on this further in 2025.
Full details on the progress we are making 
towards these targets can be seen on page 
40 of this Annual Report and on the following 
pages of our Sustainability Report.
Emissions and Science Based 
Targets – pages 25-28, 108.
Energy source mix and renewable 
electricity – page 32.
Energy Intensity metric – page 34.
Water Intensity and water recycling 
metric – pages 44, 45.
Material transition metric – page 38.
In 2024 we sought and completed public limited 
assurance on the full year performance of our 
core seven sustainability targets against their 
2022 baseline. The public limited assurance 
process included six business unit audits at 
geographically interspersed locations, and 
covering our three operational divisions (Apparel, 
Performance Materials, and Footwear).
The principal risks associated with the above 
emissions are those which could restrict delivery 
of the Company’s targets for their reduction 
in line with the 1.5°C Pathway and Net-Zero 
by 2050. The most material of these risks are 
inadequate opportunities to transition to renewable 
electricity, plus an unreliable supply of recycled 
raw materials; however, the Company has robust 
programmes in place to manage these risks.
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To the Directors of Coats Group Plc
Scope
We have been engaged by Coats Group Plc (“Coats” or the “Company”) to perform a ‘limited assurance 
engagement’, as defined by International Standards on Assurance Engagements, here after referred to as 
the engagement, to report on Coats’ selected sustainability key performance indicators (as listed below in 
Table 1) (the “Subject Matter”) contained in Coats’ 2024 Sustainability Report (the “Report”) for the years 
ended 31 December 2024, 31 December 2023 and 31 December 2022.
Table 1: KPIs within the assurance scope
KPI
Units
Scope 1 GHG emissions footprint
thousand tonnes CO2e
Scope 2 GHG emissions footprint (location-based)
thousand tonnes CO2e
Scope 2 GHG emissions footprint (market-based)
thousand tonnes CO2e
% Reduction in Scope 1 & 2 GHG emissions
%
Total primary raw materials purchased by Coats
Tonnes
Total preferred primary raw materials purchased by Coats
Tonnes
% preferred primary raw materials purchased by Coats
%
Total water used
Million cubic meters
Total water recycled
Million cubic meters
% of water recycled
%
Total waste generated
Tonnes
Total waste to landfill
Tonnes
% of waste going to landfill
%
% effluent compliance to the Roadmap to Zero standards
%
Total workforce headcount (for 'Great Place to Work®' calculation)
No.
Workforce with a 'Great Place to Work®' certification
No.
% employees in units covered by 'Great Place to Work®' Certification
%
Total senior leadership headcount
No.
Female senior leadership headcount
No.
% of females in senior leadership
%
Other than as described in the preceding paragraph, which sets out the scope of our engagement, we did 
not perform assurance procedures on the remaining information included in the Report, and accordingly, 
we do not express a conclusion on this information.
Criteria applied by Coats
In preparing the Subject Matter Coats applied the methodology as described in the Basis of Reporting 
dated 4th March 2025 (the “Criteria”). Such Criteria were specifically designed to provide definitions 
and methodologies for the reporting of the Subject Matter. As a result, the subject matter information may 
not be suitable for another purpose.
Coats’ responsibilities
Coats’ management is responsible for selecting the Criteria, and for presenting the Subject Matter 
in accordance with that Criteria, in all material respects. This responsibility includes establishing and 
maintaining internal controls, maintaining adequate records and making estimates that are relevant to the 
preparation of the subject matter, such that it is free from material misstatement, whether due to fraud or 
error.
EY’s responsibilities
Our responsibility is to express a conclusion on the presentation of the Subject Matter based on the 
evidence we have obtained. We conducted our engagement in accordance with the International Standard 
for Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (‘ISAE 3000 
(Revised)’) and the International Standard for Assurance Engagements on Greenhouse Gas Statements 
(‘ISAE 3410’), and the terms of reference for this engagement as agreed with Coats on 28 August 2024 
and amended on 22 January 2025 and 4 March 2025.
Those standards require that we plan and perform our engagement to express a conclusion on whether 
we are aware of any material modifications that need to be made to the Subject Matter in order for it to 
be in accordance with the Criteria, and to issue a report. The nature, timing, and extent of the procedures 
selected depend on our judgment, including an assessment of the risk of material misstatement, whether 
due to fraud or error.
We believe that the evidence obtained is sufficient and appropriate to provide a basis for our limited 
assurance conclusions.
Independent practitioner’s assurance report
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Our independence and quality management
We have maintained our independence and confirm that we have met the requirements of the Code of 
Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, 
and have the required competencies and experience to conduct this assurance engagement.
EY also applies International Standard on Quality Management 1, Quality Management for Firms that Perform 
Audits or Reviews of Financial Statements, or Other Assurance or Related Services engagements, which 
requires that we design, implement and operate a system of quality management including policies or 
procedures regarding compliance with ethical requirements, professional standards and applicable legal 
and regulatory requirements.
Description of procedures performed
Procedures performed in a limited assurance engagement vary in nature and timing from, and are less in 
extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a 
limited assurance engagement is substantially lower than the assurance that would have been obtained had 
a reasonable assurance engagement been performed. Our procedures were designed to obtain a limited 
level of assurance on which to base our conclusion and do not provide all the evidence that would be 
required to provide a reasonable level of assurance.
Although we considered the effectiveness of management’s internal controls when determining the nature 
and extent of our procedures, our assurance engagement was not designed to provide assurance on internal 
controls. Our procedures did not include testing controls or performing procedures relating to checking 
aggregation or calculation of data within IT systems.
The Green House Gas quantification process is subject to scientific uncertainty, which arises because of 
incomplete scientific knowledge about the measurement of GHGs. Additionally, GHG procedures are subject 
to estimation (or measurement) uncertainty resulting from the measurement and calculation processes used 
to quantify emissions within the bounds of existing scientific knowledge.
A limited assurance engagement consists of making enquiries, primarily of persons responsible for preparing 
the Subject Matter and related information, and applying analytical and other appropriate procedures.
Our procedures included:
–	 Interviews with Coats Group staff responsible for guidance on data reporting, managing the data 
systems, review and quality assurance activities, and presentation of the data in the Report.
–	 Analysis of key documents related to policies and procedures related to the Coats Group’s commitments, 
and relevant reporting by Coats Group;
–	 Interviews with sustainability, operational and finance representatives to understand the quality 
assurance performed on data submitted by operational sites.
–	 On-site and remote testing of data with data coordinators to:
–	 Understand the quality assurance performed and subsequent revisions to the data.
–	 Walk-through data reported from a sample of sites to test the process of consolidation.
–	 Undertake analytical review procedures to support the reasonableness of the data and make inquiries 
of management to obtain explanations for any significant differences we identified.
–	 Select a sample of data points from across the business and seek documentary evidence to support 
the accuracy of the data.
–	 Checking that the calculation criteria have been correctly applied in accordance with the methodologies 
outlined in the Criteria.
–	 Considering the presentation of the data and supporting narrative in Coats Group’s Sustainability Report, 
to check that this is consistent with the findings from our procedures above.
We also performed such other procedures as we considered necessary in the circumstances.
Conclusion
Based on our procedures and the evidence obtained, we are not aware of any material modifications that 
should be made to the Subject Matter for the years ended 31 December 2024, 31 December 2023, and  
31 December 2022, in order for it to be in accordance with the Criteria.
Use of our report
This report is produced in accordance with the terms of our engagement letter solely for the purpose of 
reporting to the directors of the Company in connection with the Subject Matter for the period ended 
31 December 2024, 31 December 2023, and 31 December 2022. Those terms permit disclosure on the 
Company’s website, solely for the purpose of the Company showing that it has obtained an independent 
assurance report in connection with the Subject Matter. To the fullest extent permitted by law, we do not 
accept or assume responsibility to anyone other than the Company and the Company’s directors as a body, 
for the procedures performed, for this report, or for the conclusions we have formed. This engagement is 
separate to, and distinct from, our appointment as the auditor to the Company.
Ernst & Young LLP
5 March 2025
London, United Kingdom
Independent practitioner’s assurance report cont.
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Coats Group plc Annual Report and Accounts 2024
The Company, through various subsidiaries, has branches in several different jurisdictions in which the 
business operates outside the UK. Unless otherwise indicated, all shareholdings owned directly or indirectly 
by the Company represents 100% of issued share capital of the subsidiary.
Subsidiaries:
Direct holdings of the Company
Country of Incorporation
Company name
Registered office address
Share class
United Kingdom
Arrow HJC
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
B. M. Estates 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Coats Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Contractors’ 
Aggregates Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
GPG (UK) Holdings 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
GPG March 2004 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
S G Warburg Group 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
Subsidiaries:
Indirect holdings of the Company
Country of Incorporation
Company name
Registered office address
Share class
Australia
Coats Australian 
Pty Ltd
Unit 2, 56 Keys Road, Moorabbin VIC 3189, Australia
AUD0.54 Ordinary
Australia
Guinness Peat 
Group (Australia) 
Pty Limited
Level 44, 600 Bourke Street, Melbourne, Victoria, 
3000, Australia
AUD1.00 Ordinary, 
AUD14,977.77 
Redeemable 
Preference
Bangladesh
Coats Bangladesh 
Limited
Tower 117, 117/A Tejgaon Industrial Area, Dhaka 1208, 
Bangladesh
BDT100.00 Ordinary 
(80%)
Bangladesh
Coats Crafts 
Bangladesh Limited
Novo Tower, 270 Tejgaon Industrial Area, Dhaka 1208, 
Bangladesh
BDT100.00 Ordinary 
(80%)
Bulgaria
Coats Bulgaria 
Eood
Tsarigradsko shousse bld 7th Km, Sofia 1748, Bulgaria
BGL50.00 Ordinary
Cambodia
Coats Threads 
(Cambodia) 
Company Limited
Phnom Penh Tower, No. 445, Room No. 1, 10th Floor, 
Monivong Blvd corner street 232, 1, Boeng Proluet, 
Prampir Meakkakra, Cambodia
KHR4,000 Ordinary
Canada
Coats Canada Inc
10 Roybridge Gate Blvd, Vaughan ON L4H 3M8, 
Canada
Common (no par 
value)
Canada
Staveley Services 
Canada Inc
44 Chipman Hill, Suite 1000, Saint John NB E2L 2A0, 
Canada
CAD Common, CAD 
Class A Pref 1, CAD 
Class A Pref 2
Chile
Coats Cadena Ltda
Enrique Gomez Correa 5750, 3er piso, Oficina No.4, 
Macul, Santiago, Chile
US$1.00 Ordinary
China
Coats Shenzhen 
Limited
Coats Industrial Park, Fengtang Avenue, Zhancheng 
Community, Fuhai Street, Baoan District, Shenzhen, 
China 518103
US$1.00 Ordinary 
(90%)
China
Coats Zip 
Shenzhen Limited
B7, Coats Industrial Park, Fengtang Avenue, Zhancheng 
Community, Fuhai Street, Bao’An District, Shenzhen, 
China
US$1.00 Ordinary 
(90%)
China
Donguan Rhenoflex 
New Materials Co. 
Ltd
Building 5, No. 77 Shilong Road, Guancheng Street, 
Dongguan, Guangdong Province, China
US$500,000.00 
Ordinary
China
Guangzhou Coats 
Limited
Unit B12, 2nd Floor, 2nd Building, No 11 Hao Ke Zhou 
East Street, Haizhu District, Guangzhou, China
HKD1.00 Ordinary 
(90%)
China
Jiangyin Rhenoflex 
Waterproof Material 
Co. Ltd
No. 58 Dong Sheng Road, Hi-Tech Park, Jiangyin 
Economic Development Zone, China
US$1,500,000.00 
Ordinary
China
Qingdao Coats 
Limited
No. 6, Sanhuan Road, Jimo Environmental Protection 
Industrial Park, Jimo District, Shandong, China
US$1.00 Ordinary 
(90%)
Group structure
201
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Coats Group plc Annual Report and Accounts 2024
Group structure cont.
Country of Incorporation
Company name
Registered office address
Share class
Guatemala
Guatemala Thread 
Company Sociedad 
Anonima
39 Avenida, 3-47 Zona 7, Colonia El Rodeo, Guatemala
GTQ10.00 Ordinary
Honduras
Coats Honduras, 
S.A.
Edificio #13 Zona Libre Inhdelva, 800 mts. Carretera a 
la Jutosa, Choloma, Cortes, Honduras
HNL100.00 Ordinary
Hong Kong
China Thread 
Development 
Company Limited
Unit 1-4, 10/F, The Broadway, 54-62 Lockhart Road, 
Wanchai, Hong Kong
HKD10.00 Ordinary
Hong Kong
Coats (China) 
Limited
Unit 1-4, 10/F, The Broadway, 54-62 Lockhart Road, 
Wanchai, Hong Kong
HKD10.00 Ordinary
Hong Kong
Coats China 
Holdings Limited
Unit 507, 5/F, Chinachem Golden Plaza, 77 Mody Road, 
Tsim Sha Tsui, Kowloon, Hong Kong
HKD10.00 Ordinary
Hong Kong
Coats Hong Kong 
Limited
Unit 507, 5/F, Chinachem Golden Plaza, 77 Mody Road, 
Tsim Sha Tsui, Kowloon, Hong Kong
HKD10.00 Ordinary 
(90%)
Hong Kong
Coats Thread HK 
Limited
Unit 507, 5/F, Chinachem Golden Plaza, 77 Mody Road, 
Tsim Sha Tsui, Kowloon, Hong Kong Unit 
HKD10.00 Ordinary
Hong Kong
Rhenoflex Hong 
Kong Ltd
5/F Manulife Place, 348 Kwun Tong Road, Kowloon, 
Hong Kong
HKD1.00 Ordinary
Hong Kong
Texon International 
(Asia) Limited
Room 1–4, 10th Floor, The Broadway, 54-62 Lockhart 
Road, Wanchai, Hong Kong
HKD1.00 Ordinary
Hungary
Coats 
Magyarorszag 
Cernagyarto es 
Ertekesito Korlatolt 
Felelossegu 
Tarsasag
1044 Budapest, Vaci ut 91, Hungary
HUF100,000.00 
Ordinary
India
Intellosol Softwares 
India Private 
Limited
1/22, Second Floor, Asaf Ali Road, New Delhi, Central 
Delhi, Delhi, 110002, India
INR10.00 Ordinary
India
Madura Coats 
Private Limited
Unit No.3&4, Floor 3, Navigator Building, International 
Tech Park, Whitefield Road, Bangalore 560 066, India
INR10.00 Ordinary
India
Texon (India) 
Private Limited
S. No. 376, Thirumudivakkam Main Road, Behind 
Amarprakash Heritage Apartments, Thirumudivakkam, 
Chennai, Tamil Nadu, 600044, India
INR100.00 Ordinary
Indonesia
PT. Coats Rejo 
Indonesia
Ventura Building, Lantai 5, Suite 501-A, Jl. RA Kartini 
No. 26, Cilandak, Jakarta, Indonesia
US$1.00 Ordinary-A, 
US$1.00 Ordinary-B, 
US$1.00 Preference
Indonesia
PT Coats Trading 
Indonesia
Ventura Building, Lantai 5, Suite 501-B, Jl. RA Kartini 
No. 26, Cilandak, Jakarta, Indonesia
USD1.00 Ordinary
Italy
Texon Italia S.r.l.
Largo Augusto, 8, Milan, 20122, Italy
€1.00 Ordinary
Country of Incorporation
Company name
Registered office address
Share class
China
Shanghai Coats 
Limited
No.8 Building, Export Processing Garden, Songjiang 
Industrial Zone 201613, Shanghai, China
US$1.00 Ordinary 
(90%)
China
Texon Dongguan 
Non Woven Ltd
No. 17 Weiheng Road, Niushan Foreign Economics 
Industrial Park, Dongcheng Street, Dongguan City, 
China
US$1,420,000.00 
Ordinary
Colombia
Coats Cadena 
Andina SA – 
Colombia
Avenida Santander, N.5E-87, Pereira, Colombia
COP20.63 Ordinary
Egypt
Coats Craft Egypt
New Cairo, 5th settlement, Villa 28, Egypt
EGP1.00 Ordinary
Egypt
Coats Egypt for 
manufacturing and 
dyeing sewing 
thread SAE
Industrial Area Zone B3, Plot 78, 10th of
Ramadan City, Cairo, Egypt
US$31.25 Ordinary
Egypt
Coats for Trading 
and Industry Egypt
Industrial Area Zone B3, Plot 62, 10th of Ramadan City, 
Cairo, Egypt
EGP4000.00 Ordinary
El Salvador
Coats El Salvador, 
S.A. de C.V.
Zona Franca Export Salva, Edificio No 18C, San 
Salvador, El Salvador
US$12.00 Ordinary
France
Coats France S.A.S. 8 avenue Hoche, 75008, Paris, France
€0.60 Ordinary
France
Coats Footwear 
France SAS
3 rue du Moulin, 49450 St. Macaire en Mauges, France
€188,401.00 Ordinary
Germany
Coats GmbH
1 Suedwieke 180, 26817 Rhauderfehn, Germany
€12,000,000.00 
Ordinary
Germany
Coats Thread 
Germany GmbH
Giulinistraße 2, 67065 Ludwigshafen, Germany
€11,704,000.00 
Ordinary
Germany
Rhenoflex GmbH
Giulinistraße 2, 67065 Ludwigshafen, Germany
€1.00 Ordinary
Germany
Schwanenwolle 
Tittel & Krueger AG 
i. L
RHS, Stadtstrasse 29, 79104 Freiburg, Germany
DEM1.00 Ordinary
Germany
Texon Components 
GmbH
Roigheimer Str., 69-72, Mockmuhl, 74219, Germany
€25,564.59 Ordinary
Germany
Texon Mockmuhl 
GmbH
Roigheimer Str., 69-72, Mockmuhl, 74219, Germany
€27,041,999.59 
Ordinary
Guatemala
Coats de 
Guatemala, S.A.
13-78 Zona 10, Edif. Intercontinental Plaza Torre 
Citigroup Nivel 17, Oficina 1702, Ciudad, Guatemala
GTQ1.00 Ordinary
Guatemala
Crafts Central 
America, S.A.
26 Avenida No. 7-27, Zona 4, Mixco oficina 11, 
Guatemala
GTQ100.00 Ordinary
Guatemala
Distribuidora Coats 
de Guatemala, 
Sociedad Anomina
39 Avenida, 3-47 Zona 7, Colonia El Rodeo, Guatemala
GTQ1.00 Ordinary
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Coats Group plc Annual Report and Accounts 2024
Group structure cont.
Country of Incorporation
Company name
Registered office address
Share class
Portugal
Coats – Comercio 
de Linhas, Fechos 
e Acessorios, Para 
a Industria Industria 
Unipessoal Lda
Praca Duque de Saldhana, 1, Edif. Atrium Saldanha, Piso 
7, Lisbon, 1050-094, Portugal
€150,000 Quotas
Portugal
Companhia de 
Linha Coats & Clark 
Unipessoal Lda
Praca Duque de Saldhana, 1, Edif. Atrium Saldanha, Piso 
7, Lisbon, 1050-094, Portugal
€5,000,000 Quotas
Romania
Coats Romania SRL
Municipiul Odorheiu Secuiesc, Str. Nicolae Balcescu, Nr. 
71, Judetul Harghita, Romania
RON169.38 Ordinary
Russian Federation Coats LLC
Office No. 4, part of premises No. 13, 7th Floor, st. 
Krasnaya, 1, Lyubertsy, Moscow, Russia 
RUB173.55 Ordinary
Singapore
Coats International 
Pte. Limited
12 Marina View, #11-01, Asia Square Tower 2, 018961, 
Singapore
SGD1.00 Ordinary
South Africa
Coats South Africa 
(Proprietary) 
Limited
107 Escom Road, New Germany, 3620, KZN, Natal, 
South Africa
ZAR0.01 Ordinary, 
ZAR0.01 Cumulative 
Redeemable 
Preference, ZAR0.01 
Non-redeemable 
Preference Shares, 
ZAR0.01 
Non-redeemable
Non-cumulative 
Variable Rate 
Convertible 
Preference
Spain
Gotex S.A.
Avinguda de Montcau, No 5, Parcela A del VGP Llica 
d’Amunt, (Nave E2 y E3), Llica de Munt, Barcelona, 
08186, Spain
€6.02 Ordinary
Sri Lanka
Coats Thread 
Exports (Private) 
Limited
Moragahahena, Millewa, Horana, 12400, Sri Lanka
LKR100.00 Ordinary 
(99%)
Sri Lanka
Coats Thread 
Lanka (Private) 
Limited
Moragahahena, Millewa, Horana, 12400, Sri Lanka
LKR10.00 Ordinary 
(99%)
Sweden
Coats Industrial 
Scandinavia AB
Stationsvagen 2, SE-516 31 Dalsjofors, Sweden
SEK1,000.00 Bearer
Switzerland
Coats Stroppel AG
c/o Haussmann Treuhand AG, Seefeldstrasse 45, 8008 
Zurich, Switzerland
CHF2,500.00 
Thailand
Coats Threads 
(Thailand) Ltd
39/60 Moo 2 Tambol Bangkrachaw, Amphur Muang, 
Samutsakorn Province 74000, Thailand
THB1,000.00 Ordinary
Country of Incorporation
Company name
Registered office address
Share class
Malaysia
Coats Thread 
(Malaysia) Sdn. 
Bhd.
49-B Jalan Melaka Raya 8, Taman Melaka Raya, 75000 
Melaka, Malaysia
RM10.00 A, RM10.00 
B, RM10.00 C (99%)
Mauritius
Coats Indian Ocean 
Holding Co Limited
2nd Floor, IBL House, Caudan, Port-Louis, Mauritius
US$100.00 Ordinary
Mexico
Coats Mexico S.A. 
de C.V.
Periferico Sur #3325 Piso 8, Col. San Jerónimo Lídice, 
Magdalena Contreras, Mexico City, CP10200, Mexico
MXP1.00 Ordinary-A, 
MXP1.00 Ordinary-B
Morocco
Coats Maroc
220 Bld Chefchaouni, Ain Sebaa, Casablanca, Morocco MAD100.00 Ordinary
Morocco
Mercerie 
Industrielle de 
Casablanca
220 Bld Chefchaouni, Ain Sebaa, Casablanca, Morocco MAD100.00 Ordinary
Netherlands
Coats Industrial 
Europe Holdings 
B.V.
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
$1.00 Ordinary
Netherlands
Coats Industrial 
Thread Holdings 
B.V
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
$1.00 Ordinary
Netherlands
Coats Northern 
Holdings B.V.
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
$1.00 Ordinary
Netherlands
Coats South 
America Holdings 
B.V.
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
$1.00 Ordinary
Netherlands
Coats South Asia 
Holdings B.V.
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
$1.00 Ordinary
Netherlands
Coats Southern 
Holdings B.V.
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
$1.00 Ordinary
New Zealand
Coats Patons (New 
Zealand) Ltd
3 Mana Place, Wira, Auckland, New Zealand
NZD1.00 Ordinary
Nicaragua
Coats de Nicaragua 
SA
Altamira d’este, Rotonda Madrid #235, Managua, 
Nicaragua
NIO100.00 Ordinary
Pakistan
J & P Coats 
Pakistan (Pvt) 
Limited
Factory Office, A/7, Estate Ave, Sindh Industrial Trading 
Estate, Karachi, Pakistan
PKR100.00 Ordinary
Peru
Coats Cadena SA 
– Peru
Av. Republica de Panama 3461, Piso 9, San Isidro, Lima, 
Peru
PEN 0.01 Ordinary 
(99%)
Poland
Coats Polska 
Spolka z 
oganiczona 
odpowiedzialnoscia
Nowe Sady 2, 94-102 Lodz, Poland
PLN1,000.00 Ordinary
203
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OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Group structure cont.
Country of Incorporation
Company name
Registered office address
Share class
United Kingdom
Coats Industrial 
Thread Brands 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Coats Industrial 
Thread Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Coats Patons 
Limited
Cornerstone, 107 West Regent Street, Glasgow, G2 
2BA, United Kingdom
£0.25 Ordinary
United Kingdom
Coats Pensions 
Trustee Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Coats Property 
Management 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Coats Shelfco 
(BDA) Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Coats Shelfco (CV 
Nominees) Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Coats Shelfco (VV) 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£0.01 Ordinary, £0.075 
Deferred 
United Kingdom
Coats Trading (UK) 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Coats UK Pension 
Scheme Trustees 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Coats VTT Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
US$0.01 Ordinary 
United Kingdom
Corah Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£0.25 Ordinary, £1.00 
4.2% Cumulative 
Preference 
United Kingdom
D. Byford & Co 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£0.20 Ordinary, £1.00 
Preference
United Kingdom
Embergrange
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Fast React Systems 
(Bangladesh) 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Fast React Systems 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
GPG Securities 
Trading Ltd
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
Country of Incorporation
Company name
Registered office address
Share class
Tunisia
Coats Industrial 
Tunisie
52, rue du Tissage, Douar Hicher, Manouba, 2086, 
Tunisia
TND10.00 Ordinary
Tunisia
Coats Trading 
Tunisie
52, rue du Tissage, Douar Hicher, Manouba, 2086, 
Tunisia
TND10.00 Ordinary
Turkey
Coats (Turkiye) Iplik 
Sanayii AS
BALAT OSB MAH Mavi Cad. No 2, 16225 Bursa, Turkey
TRY1.00 New Ordinary 
(92%)
Ukraine
Coats Ukraine Ltd
Moskovskiy ave. 28A, litera B, Kiev, 04655, Ukraine
UAH1.00 Ordinary
United Kingdom
Allied Mutual 
Insurance Services 
Ltd
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Anfield 1 Limited
Mazars Llp, 45 Church Street, Birmingham, B3 2RT 
United Kingdom
£1.00 Ordinary
United Kingdom
Anfield 2 Limited
Mazars Llp, 45 Church Street, Birmingham, B3 2RT 
United Kingdom 
£1.00 Ordinary, £1.00 
Deferred
United Kingdom
Barbour Threads 
Limited
Cornerstone, 107 West Regent Street, Glasgow, G2 
2BA, United Kingdom
£10.00 Ordinary
United Kingdom
Brown Shipley 
Holdings Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Brunel Pension 
Trustees Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Cardpad Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Coats (UK) Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary, £1.00 
Ordinary A
United Kingdom
Coats Digital 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Coats Finance Co. 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Coats Group 
Finance Company 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£0.33 Ordinary
United Kingdom
Coats Holding 
Company  
(No. 1) Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£0.125 Ordinary
United Kingdom
Coats Holding 
Company  
(No. 2) Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£0.25 Ordinary
United Kingdom
Coats Holdings Ltd
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
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Coats Group plc Annual Report and Accounts 2024
Group structure cont.
Country of Incorporation
Company name
Registered office address
Share class
United Kingdom
Texon Management 
Ltd
4th Floor, 14 Aldermanbury Square, London, EC2V 7HS, 
United Kingdom
£1.00 Ordinary
United Kingdom
Texon Non Woven 
Ltd
4th Floor, 14 Aldermanbury Square, London, EC2V 7HS, 
United Kingdom
£1.00 Ordinary
United Kingdom
Texon Overseas
4th Floor, 14 Aldermanbury Square, London, EC2V 7HS, 
United Kingdom
£1.00 Ordinary
United Kingdom
The Central Agency 
Limited
Cornerstone, 107 West Regent Street, Glasgow, G2 
2BA, United Kingdom
£10.00 Ordinary
United Kingdom
Thomas Burnley & 
Sons, Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£10.00 Ordinary
United Kingdom
Tootal Group 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£0.25 Ordinary, £1.00 
3.5 % Cumulative 
Preference 
United Kingdom
Tootal Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Torque Group 
International 
Fortune Limited
4th Floor, 14 Aldermanbury Square, London, EC2V 7HS, 
United Kingdom
$0.01 A Ordinary, 
$0.01 B Ordinary, 
$0.01 C Ordinary
United Kingdom
Torque Group 
International Wealth 
Limited
4th Floor, 14 Aldermanbury Square, London, EC2V 7HS, 
United Kingdom
$1.00 Ordinary
United States
Coats American Inc
CT Corporation System, 820 Bear Tavern Road, West 
Trenton, NJ 08628, USA
US$10.00 COMMON, 
US$5.00 5% 
Cumulative Preference
United States
Coats Garments 
(USA) Inc
CT Corporation System, Corporation Trust Centre, 1209 
Orange Street, Wilmington, DE 19801, USA
US$1.00 Ordinary
United States
Coats Holdings Inc
CT Corporation System, Corporation Trust Centre, 1209 
Orange Street, Wilmington, DE 19801, USA
US$1.00 Ordinary
United States
Coats HP Holding 
Inc
CT Corporation System, 160 Mine Lake Ct., Suite 200, 
Wake NC 27615-6417, USA 
US$1.00 Ordinary
United States
Coats HP Inc
CT Corporation System, 160 Mine Lake Ct., Suite 200, 
Wake NC 27615-6417, USA 
US$1.00 Ordinary
United States
Coats North 
America 
Consolidated Inc
CT Corporation System, Corporation Trust Centre, 1209 
Orange Street, Wilmington, DE 19801, USA
US$0.10 Ordinary, 
US$1.00 Class B 
Voting Shares
United States
Coats North 
America de 
Republica Dominica 
Inc
CT Corporation System, 160 Mine Lake Ct., Suite 200, 
Raleigh, North Carolina, 27615-6417, USA
US$1.00 Ordinary
United States
Coats Sales 
Corporation
CT Corporation System, 820 Bear Tavern Road, West 
Trenton, NJ 08628, USA
US$100.00 Ordinary
Country of Incorporation
Company name
Registered office address
Share class
United Kingdom
Griffin SA Ltd
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
GSD (Corporate) 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
GSD Holdings 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary-A, 
£1.00 Ordinary-B
United Kingdom
Hicking Pentecost 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£0.50 Ordinary
United Kingdom
I.P. Clarke & Co. 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
J.& P. Coats, 
Limited
1 George Square, Glasgow G2 1AL, United Kingdom
£1.00 Ordinary
United Kingdom
Marshaide Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Needle Industries 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Patons & Baldwins 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Patons Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary, £1.00 
7% Preference
United Kingdom
Simpson, Wright & 
Lowe, Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Sir Richard 
Arkwright & Co. 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
SIRBS Pension 
Trustee Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Staveley 2005 No 
3 Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Staveley Industries 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Staveley Services 
Limited
The Pavilions, Bridgwater Road, Bristol, BS13 8FD, 
United Kingdom
£1.00 Ordinary
United Kingdom
Texon (Newco 2) 
Ltd
4th Floor, 14 Aldermanbury Square, London, EC2V 7HS, 
United Kingdom
£1.00 Ordinary
United Kingdom
Texon International 
Group Limited
4th Floor, 14 Aldermanbury Square, London, EC2V 7HS, 
United Kingdom
£0.0001 A Ordinary, 
£0.0001 B Ordinary, 
£0.00001 Deferred 
Ordinary
205
STRATEGIC REPORT
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
TCFD
OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Group structure cont.
Statutory audit exemptions
Coats Group plc has issued a parental guarantee under s479C of the Companies Act 2006 to the following 
companies, exempting them from the requirements of the Companies Act 2006 related to the audit of individual 
accounts by virtue of s479A of the Companies Act 2006.
Company
Registered number
B. M. Estates Limited
01032353
Brown Shipley Holdings Limited
00653955
Cardpad Limited
04115596
Coats Digital Limited
04952167
Coats Finance Co. Limited
02591134
Coats Holdings Ltd
00104998
Coats Industrial Thread Limited
00332517
Coats Property Management Limited 
00508154
Coats Trading (UK) Limited
13264213
Fast React Systems (Bangladesh) Limited 
08586160
Fast React Systems Limited 
03698622
GPG (UK) Holdings Limited
00159975
GSD (Corporate) Limited
03081931
GSD Holdings Limited 
03997465
I.P. Clarke & Co. Limited
00093416
J.& P. Coats, Limited
SC002042
Texon (Newco 2) Ltd
05329581
Texon International Group Limited 
05329617
Texon Management Ltd
05308213
Texon Non Woven Ltd
05286674
Texon Overseas 
02082136
Torque Group International Fortune Limited
10076655
Torque Group International Wealth Limited
10076684
Country of Incorporation
Company name
Registered office address
Share class
United States
Jaeger Sportswear 
Ltd
CT Corporation System, 28 Liberty Street, New York, 
NY 10005, USA
US$ Common
United States
Patrick Yarn Mill, 
Inc.,
CT Corporation System, 160 Mine Lake Ct., Suite 200, 
Raleigh, North Carolina, 27615-6417, USA
US$1.00 Class A 
voting, Class B non-
voting
United States
Rhenoflex Americas 
Corp.
Corporation Trust Center, 1209 Orange Street, 
Wilmington, DE, United States
US$0.01 Ordinary
United States
Staveley Inc
The Corporation Trust Co., 1209 Orange Street, 
Wilmington, DE 19801, USA.
US$0.01 Ordinary
United States
Texon Materials, 
Inc.
Corporation Trust Center, 1209 Orange Street, 
Wilmington, DE, United States
US$0.01 Ordinary
United States
Westminster Fibers, 
Inc.
c/o The Corporation Trust, 1209 Orange Street, 
Wilmington, Delaware, USA
US$1.00 Common 
shares
Vietnam
Coats Footwear 
Vietnam Limited 
Liability Company
Plant 57, 1-7 street, Long Thanh Industrial Park, Tam An 
Commune, Long Thanh District, Dong Nai Province, 
Viet Nam
VND17,581,335,900 
Ordinary
Vietnam
Coats Phong Phu 
Limited Liability 
Company
No. 48 Tang Nhon Phu Street, Tang Nhon Phu B Ward, 
Thu Duc City, Ho Chi Minh City, Vietnam
US$1.00 Ordinary 
(64%)
Vietnam
Texon 
Manufacturing 
Vietnam Company 
Limited
Plant No. 02 and Factory No. 03, An Phuoc Industrial 
Zoe, An Phuoc Ward, Long Thanh District, Dong Nai 
Province, Viet Nam
VND33,446,917,552 
Charter Capital
Joint Ventures
Country of Incorporation
Company Name
Registered Office address
Share class
China
Guangying 
Spinning Company 
Limited
2 Yuan Cun Xi Jie Guangzhou, 510655, China
US$1.00 Ordinary 
(50%)
China
Tianjin Jinying 
Spinning Co Ltd
10m E of intersec. of Jinlai Rd and Mingqing Rd, Liqi 
Zhuang, Xiqing Qu, Tianjin, 300381, China
US$1.00 Ordinary 
(50%)
India
S&P Threads 
Private Limited
Delite Theatre Building, III Floor, Asaf Ali Road, New 
Delhi, 110 002, India
INR10.00 Ordinary 
(50%)
206
STRATEGIC REPORT
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FINANCIAL STATEMENTS
TCFD
OTHER INFO

Coats Group plc Annual Report and Accounts 2024
Five-year summary
United Kingdom
4th Floor,
14 Aldermanbury Square,
London EC2V 7HS
Tel: 020 8210 5000
coats.com  
Incorporated and registered in England No. 103548 
Registered office: 
4th Floor, 
14 Aldermanbury Square, 
London EC2V 7HS
 
UK registered members 
To manage your shareholding online, please visit: investorcentre.co.uk 
Location of share registers
The Company’s register of members is maintained in the United Kingdom
Register enquiries may be addressed direct to the Company’s share registrars named below:
Registrar
Telephone and postal enquiries
Inspection of Register
UK Main Register:
Computershare Investor  
Services PLC
The Pavilions 
Bridgwater Road 
Bristol BS13 8FD 
Tel: 0370 707 1022 
Facsimile: 0370 703 6143
The Pavilions 
Bridgwater Road 
Bristol BS13 8FD
For the year ended 31 December
2020 
US$m
2021 
US$m
2022 
US$m
2023 
US$m
2024 
US$m
Continuing operations (before exceptional and 
acquisition-related items)1:
Revenue
1,077.1
1,398.6
1,537.6
1,394.2
1,500.9
Cost of sales
(737.3)
(941.2)
(1,049.3)
(910.9)
(953.1)
Gross profit
339.8
457.4
488.3
483.3
547.8
Operating costs
(225.6)
(262.1)
(255.6)
(249.9)
(278.2)
Operating profit
114.2
195.3
232.7
233.4
269.6
Share of profits from joint ventures
0.6
1.2
1.1
1.1
1.9
Finance income
0.7
0.4
2.6
4.6
3.1
Finance costs
(25.5)
(21.8)
(32.3)
(33.9)
(32.7)
Profit before taxation
90.0
175.1
204.1
205.2
241.9
Taxation
(35.2)
(53.3)
(60.1)
(57.9)
(70.1)
Profit from continuing operations
54.8
121.8
144.0
147.3
171.8
Adjusted earnings per share (cents)
2.42
7.17
8.02
8.04
9.49
Dividend per share (cents)
 1.30
2.11
2.43
2.80
3.12
Adjusted free cash flow ($m)
28.0
123.8
113.7
130.5
153.2
Adjusted return on capital employed (%)
22%
45%
31%1
30%
38%
Notes:
1.	 Operating profit from continuing operations before exceptional and acquisition-related items for the year ended 31 December 2022 has been 
adjusted in the adjusted return on capital employed calculation to include Texon and Rhenoflex as if the acquisitions had taken effect at the 
beginning of the reporting period (1 January 2022).
Shareholder information
207
STRATEGIC REPORT
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
TCFD
OTHER INFO

CBP029700
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Coats Group plc
4th Floor,
14 Aldermanbury Square,
London EC2V 7HS
coats.com  
Incorporated and registered  
in England No. 103548