London thread manufacturer sees April sales unravel by 50 per cent
A London industrial thread manufacturer has reported that its sales have dropped by 17 per cent in the first quarter of the year.
Coats Group saw April sales down around 50 per cent due to demand and supply impacts from COVID-19, including the closure of 15 manufacturing sites.
Group sales for the period declined 17% year-on-year, which reflected 21 per cent organic decline and a 4 per cent contribution from the acquisition of Pharr High Performance Yarns, which was bought in February.
The company said that it anticipates around 40 per cent year-on-year reduction in the second quarter operating cost base due to management actions and lower activity levels.
Coats Group said: “The board remains confident in the group’s ability to successfully manage through the current challenging environment.
“We enter this phase of our 250+ year history in robust shape and as a market leader with an unrivalled global footprint.
“Alongside our enhanced operational agility this leaves us well placed to benefit from the acceleration in demand and emerge as a stronger business once COVID-19 passes.”
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