Coats Group PLC on Thursday said its full-year revenue fell on weaker divisional performances but saw its profit rise on cost reductions.

Shares in Coats were up 7.9% at 74.00 pence each in London on Thursday morning.

The Bristol, England-based industrial thread and footwear component manufacturer said revenue, fell by 45% in 2023 to $1.39 billion from $2.54 billion a year ago, as organic revenue reduced by 14%. This was driven by a weaker performance in its Apparel and Footwear brands.

Pretax profit, however, rose 2.9% to £155.8 million in 2023 from £151.4 million the year before. This was due to a 2.5% drop in administrative expenses to £168.4 million from $172.7 million in 2022.

Coats declared a final dividend per share of 1.99 US cents, up 15% from 1.73 cents a year prior.

Looking ahead, Coats expects to make ‘good progress’ in 2024 as it eyes ‘modest revenue growth’ while its Apparel and Footwear businesses ‘gradually recover.’

Commenting on the results, Chief Executive Officer Rajiv Sharma said: ‘There is much to be confident about in Coats’ trading performance in the year. Against the backdrop of widespread industry destocking, we gained market share, grew our margin and our adjusted free cash flow. We have also seen that the consumer in general has remained resilient in these challenging markets, albeit with variation by territory.

‘Our leadership position in industrial threads and footwear components, when combined with our investment in innovation and sustainably-sourced and manufactured products, positions us well to grow our revenue and margin and deliver ongoing strong cash generation in line with our strategy,’ he added.

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