Coats Viyella suffered a further reduction in profitability in the first six months when its financial results were affected by a weak trading environment, combined with a strike at the group's Indian business.
First-half operating profits before reorganisation and exceptional charges fell 23 per cent to £32 million sterling (€49 million) on turnover down 13 per cent at £760 million after adjusting for sale of the group's precision engineering business. Although faster rationalisation is under way, the group's clothing division still employs around 600 at its Northern Ireland plants in Maydown, Randalstown, Ewart Lidell and Glenaden. Also, Coats Viyella recently completed the £88 million purchase of speciality textiles business, Hicking Pentecost, taking in Barbour Industrial Threads, employing around 500 people in Lisburn and nearly 100 in Longford.
Chairman, Sir Harry Djanogly, said the acquisition indicated a determination to strengthen its core businesses "as and when" good opportunities arise. The interim dividend is unchanged at 1.5p per share. Coats Viyella shares improved by a penny to 54p on the figures.
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