TIDMCOA
RNS Number : 9979R
Coats Group PLC
11 March 2021
COATS GROUP PLC
Annual Financial Report 2020
Coats Group plc ('Coats' or the 'Company') has today submitted
to the Financial Conduct Authority's national storage mechanism its
Annual Financial Report for the year ended 31 December 2020
('Annual Report 2020'), as required by UK Listing Rule 9.6.1.
The Annual Report 2020 is available from the Company's website,
www.coats.com/ar2020 , and will also be available for viewing at
the Financial Conduct Authority's national storage mechanism at
www.fca.org.uk/markets/primary-markets/regulatory-disclosures/national-storage-mechanism
.
This announcement also contains as appendices additional
information for the purposes of compliance with Disclosure Guidance
and Transparency Rule 6.3.5, including principal risk factors, a
responsibility statement and details of related party transactions.
This information is extracted, in full unedited text, from the
Annual Report 2020. The Preliminary Announcement released on 4
March 2021 contained a condensed set of financial statements
together with extracts of the Company's management report, and is
also available to view on the Company's website
www.coats.com/Investors . These announcements should be read in
conjunction with and are not a substitute for reading the full
Annual Report 2020. All page and note references in the extracted
information below refer to page and note references in the Annual
Report 2020.
Stuart Morgan
Company Secretary
11 March 2021
Enquiry details
Coats Group +44 (0)7880 471
Investors Victoria Huxster plc 350
Richard Mountain / +44 (0)20 3727
Media Nick Hasell FTI Consulting 1374
------------------- -------------------- ---------------- ----------------
About Coats Group plc
Coats is the world's leading industrial thread company. At home
in some 50 countries, Coats has a workforce of 17,000 people across
six continents. Revenues in 2020 were US$1.2bn. Coats' pioneering
history and innovative culture ensure the company continues leading
the way around the world. It provides complementary and value added
products, services and software solutions to the apparel and
footwear industries. It applies innovative techniques to develop
high technology Performance Materials threads, yarns and fabrics in
areas such as Transportation, Telecommunications and Energy, and
Personal Protection. Headquartered in the UK, Coats is a FTSE 250
company, a constituent of the FTSE4Good Index Series, a participant
in the UN Global Compact and a member of the Ellen MacArthur
Foundation. It has also committed to developing a long-term target
to reach net-zero emissions by 2050, the highest level of ambition
on climate under the Science Based Target initiative. To find out
more about Coats visit www.coats.com .
Appendix
Principal Risks overview
A description of the principal risks the company faces is
extracted from pages 36 to 43 of the Annual Report 2020.
Throughout the year, the Board has kept each of the principal
risks under review with support from the GET and the GRMC. The
Board also undertook a comprehensive assessment of the principal
risks facing the Group, along with the current levels of risk
tolerance for each of those risks. Due to the ever- changing global
risk environment, the following risks have been updated since the
last report:
PROMOTED Climate change risk has moved from being categorised
as an emerging risk to a principal risk to
better reflect its primary importance for
the Group and its various stakeholders.
PROMOTED Risk of ever-increasing customer expectations
has moved from being categorised as a key
risk to a principal risk to reflect its important
role in the Group's strategic growth ambitions.
-----------------------------------------------------
PROMOTED M&A scale ambition risk has moved from being
categorised as a key risk to a principal risk
to reflect its important role in the Group's
strategic growth ambitions.
-----------------------------------------------------
FROM DECREASING The risk trend for health and safety has increased
TO INCREASING from decreasing to increasing in light of
Covid.
-----------------------------------------------------
DEMOTED Risk of supplier non-performance and / or
unavailability and / or price increases of
raw materials has been demoted in light of
the manner in which the executive team managed
and mitigated this risk.
-----------------------------------------------------
Our principal risks, along with a summary of the measures we
have put in place to manage and mitigate them, are set out in the
table below. As stated above, the Board will continue to keep these
principal risks, as well as the appropriateness of this list and
the constantly changing broader risk environment, under ongoing
review.
Principal risk Risk trend Action / mitigation
1. Strategic
Mergers and Acquisitions Increasing All M&A projects are overseen
(M&A) and closely monitored by the
scale ambition risk Board and by senior executive
in light of the Group's management. The Board has approved
increasing ambition a set of criteria to evaluate
in scale of its acquisition acquisition opportunities against,
programme and its which include both financial
ability to source and non-financial parameters.
and satisfactorily Clear M&A processes have been
acquire suitable developed and include identification
targets. and evaluation of opportunities,
specified roles and responsibilities
for all aspects of M&A projects
along with focused project management
resources during both execution
and integration phases. In addition
to internal resources, use is
made of external advisors in
specialist areas such as negotiation,
financing and due diligence.
Post-completion / integration
reviews are conducted to ensure
that learnings are identified
and built into subsequent projects
as part of a continuous improvement
process.
----------- -----------------------------------------------
Risk of ever- increasing Increasing In this fast-changing world, the
customer expectations Group has continued to invest in
and the Group's continuing understanding and exceeding our customer
ability to meet and expectations. In order to fully understand
exceed those expectations what our customers expect in terms
as part of its strategic of product, service, price and experience,
growth ambitions. we carry out hundreds of customer
engagements each day. In 2020, these
engagements ranged from senior leader
face-to-face meetings; attending
brand and retailer supplier summits;
joining virtual customer and innovation
forums; communicating with industry
associations; working with external
consultancies; and sharing industry-specific
studies. We also conduct regular
customer surveys and we track complaints
on an ongoing basis. We take these
learnings and build differentiation
for our customers as a value-adding
partner focusing on specific drivers
to deliver for our customers. With
the ever-increasing demand for speed,
we developed the new Speedline capability
in South-East Asia, and throughout
the pandemic we enhanced material
supply management and software solutions
for more rapid production planning.
We have focused on personalisation
as we continue to lead the market
in the agile supply of complex product
and colour palettes to meet the increasing
consumer and retail trend for personalised
offerings.
Our innovation ecosystem gives us
dedicated capacity to develop new
product solutions as well as products
in collaboration with customers.
In 2020, we launched 22 new products
across multiple industry segments
(from personal protection to oil
and gas to sports and athleisure).
Our leading Technical Services teams
helped our customers to improve productivity
and optimise product costs through
significant customer engagements,
pivoting quickly to virtual support.
We launched a lattice composite solution
which allows customers to adopt lightweight
technologies at more affordable prices
by virtually eliminating material
waste. We developed digital tools
like our Synthesizer App which reduces
customer development costs by simulating
high performance yarn properties
for flame retardant and cut resistant
fabrics. We also provide bespoke
production lines and manufacturing
solutions for highly engineered products
as diverse as those used in energy
markets, to those used in feminine
hygiene markets.
Coats is known for the quality of
its products and services, and we
continued to help customers to improve
seam quality and garment performance
resulting in lower returns through
our technical services offering and
high-quality products. We work responsibly
as a business, supporting brands
and retailers with supply chain transparency,
both with our trusted product supply
and our Coats Digital software solutions
portfolio. A key part of our Company
purpose is to make a better and more
sustainable world and we have continued
to invest in helping our customers
meet their sustainability goals,
both as a trusted and responsible
industry leader in ESG, and with
our product portfolio of recycled
threads and zips, Cradle to Cradle
and circular economy R&D.
----------- -----------------------------------------------
Appropriate talent Stable This year the Board and senior management
and capability development teams heightened their focus on talent
risk development and wellbeing during
Risk of failure to the Covid crisis. We pivoted all
attract and retain of our in-house learning to 100%
talent and capability virtual learning which included our
given business changes Manager Capability Development and
and growth in new Supervisory Skills Programme with
areas. sessions still being held globally
in various clusters. To provide and
enhance critical targeted capability
development, we created Learning
Zone sessions which promoted topics
on improving productivity whilst
remote working; balancing work life
and family life; and sessions were
also available on promoting mental
wellbeing for employees and their
families. These were provided in
local languages in all of our clusters.
For the first time we conducted surveys
using the Glint platform. We initiated
two lifecycle surveys on onboarding
and exits. We conducted a series
of pulse surveys on: Covid and wellbeing;
our five Coats Priorities; and cluster
office re-openings to gauge and action
the views of our employees on these
topics. Our annual employee engagement
survey has been delayed to 2021 to
ensure that we have the best process
for ensuring safety in our manufacturing
sites to deploy the survey. Additionally,
we have launched a new subject matter
expert programme. These are peer-to-peer
webinars led by our employees who
have specialist skills in specific
areas throughout the business. These
webinars will become a valuable source
of technical expertise and enable
us to build a resource library accessible
for all of our workforce.
----------- -----------------------------------------------
2. External
Economic and geopolitical Increasing The Covid pandemic has had a
risk arising from significant impact on GDP in
political and demand our markets and demand for our
uncertainty products in 2020. Whilst demand
* across both key Asian and developed markets has subsequently recovered, albeit
not to 2019 levels, increased
uncertainty over the global economic
* including risks to free trade conventions. environment remains. To the extent
that the pandemic has a longer
and more prolonged impact on
the global economic environment,
there may be a further negative
impact on consumer spending and
further potential disruption
to our operations and supply
chain. In the longer term there
are also implications for regional
supply chains. In addition, risks
to free trade, from ongoing US
/ China trade discussions, and
the potential consequences for
economic growth, add to this
uncertainty. The Group continues
to monitor the Covid pandemic
and its impact on the global
economic environment as well
as other aspects of economic
risk, and any direct or indirect
influence on our business.
The Group closely monitors the
impact of the Covid pandemic
on demand as well as monitoring
the implications of other areas
of economic risk on the Group.
Our global reach and local knowledge
give us the agility and insights
needed to operate and develop
our business prudently and successfully
during periods of economic volatility.
Additionally, the Group's global
footprint allows us to quickly
respond to any changes in regional
supply chains that may arise
as a result of the pandemic.
As a global industrial manufacturing
company with no UK manufacturing
facilities and minimal direct
sales in the UK, Coats is of
the view that there will be limited
direct adverse impacts on the
Group from the UK leaving the
European Union (Brexit). Both
the UK and the European Union,
however, are significant markets
for both Apparel & Footwear and
Performance Materials. Therefore,
any impact on sales and future
growth expectations for these
markets could have an indirect
consequence for our business.
Many years of exposure to emerging
markets have given us experience
of operating and developing our
business successfully during
periods of economic and political
volatility. We continually monitor
and analyse economic and demand
indicators to ensure that our
supply chain remains flexible
and our product portfolio remains
relevant. This analysis provides
a key input to our product development,
business planning and pricing
strategies. The Group's international
footprint and comprehensive portfolio
also provide a mitigating balance
in our exposure to both European
Union and non-European Union
markets.
----------- -----------------------------------------------
Cyber risk Stable In 2020, Coats, like many other
Risk of cyber incidents global organisations, saw a dramatic
leading to corruption shift in where our employees
of applications, worked from, due to the Covid
critical IT infrastructure, pandemic. This required us to
compromised networks, make changes to some of our procedural
operational technology and technical controls to address
and / or loss of the changing risk landscape.
data. Part of our adjustments included
refining our policies and procedures,
such as updates to our Acceptable
Use Policy and updated Work From
Home guidance. We educated our
workforce on how their diligence
and adherence to processes was
even more important than previously
as employees were outside the
traditional perimeter protections.
This awareness training was not
just a single mandatory annual
training but rather a more comprehensive
set of awareness engagements
that included live calls, videos,
weekly and monthly newsletters,
as well as computer-based training
delivered through our Learning
Management System (LMS). Our
phishing simulations were already
an established process and we
continued these along with targeted
follow-up to those who failed
to properly identify the simulated
phishing messages to further
educate them on how to identify
and handle phishing messages.
Coats was able to identify two
main attack vectors which, though
not new, saw dramatic increases
in exploitation attempts: phishing
and brute-force login attempts.
In our 2019 report, we reported
enabling of multifactor authentication
(MFA) which proved to be an effective
control against the brute-force
attempts. For 2020, we added
additional controls to enhance
our security posture, in addition
to raising awareness through
the above programmes. An example
control was additional conditional
access controls to block login
attempts from high-risk countries
or countries where we have no
physical presence. Additionally,
in early Q2 we applied two pre-planned
technical controls to further
protect corporate data. This
enabled more comprehensive blocking
of access to public cloud storage
sites as well as implementing
further controls to restrict
data being copied to USB storage
devices. What this allowed us
to do was better maintain control
of our data from a global perspective
without allowing it to be copied
to unmanaged locations where
we could lose visibility and
/ or manageability.
As reported in the 2019 report,
Coats has employed a managed
Security Operations Center (SOC).
We have continued to work with
our managed SOC provider to verify
that the organisation is protected
and properly monitored. We are
pleased with the partnership
and plan to continue the relationship
in 2021 with potential enhancements
to make certain that Coats is
able to continue to detect and
properly respond to the new threats
while still managing current
protection levels.
----------- -----------------------------------------------
Climate change risk Increasing During 2020 we undertook our
arising from either first in-depth risk analysis
1. the impact of on climate change. After reviewing
failing to sufficiently the analysis and in recognition
address the need of the risk's primary importance
to decarbonise the for the Group and its various
company's operations stakeholders, the Board agreed
and reduce emissions, that this is a principal risk
leading principally that will be subject to ongoing
to commercial and Board review.
reputational risks
(potentially causing The analysis has been carried
loss of sales and out using the Taskforce on Climate-related
share price pressure) Financial Disclosures (TCFD)
and the financial methodology, published as a technical
risk of emissions supplement to their 2017 report.
taxes or other legislative We developed three scenarios
changes, or for our business based on publicly
2. the physical impact available data prepared for the
of climate change next Intergovernmental Panel
on the company's on Climate Change (IPCC). The
operations and business first one is a low carbon scenario
model and that of with significant short term decarbonisation
its customers in and achievement of net-zero emissions
the textile supply by mid-century, alongside good
chain. global collaboration and continued
economic growth and reduced regional
inequalities. The second is a
high carbon but low growth scenario,
with increasing regional inequalities
and low levels of global cooperation.
The third is a fossil-fueled,
high growth scenario with consequent
very high emissions levels. For
this first iteration, the analysis
has been qualitative and we are
planning to continue the work
done in 2020 by developing quantitative
financial analysis which will
allow us to report fully in line
with TCFD recommendations in
our next assessment in 2021.
The primary short-term risks
revolve around the commercial
and reputational risks of not
taking concerted action to reduce
climate change, together with
the risk of increasing emissions
taxes. If not adequately mitigated,
these risks could lead, respectively,
to loss of customer specifications
and hence loss of sales, share
sales by investors and hence
downward pressure on share price,
and increased operational costs,
and hence lower margins. Physical
risks to our plants and supply
chains, and potentially significant
geographic shifts in our customer
footprint, caused by wider industry
reorganisation and withdrawal
from areas most impacted by climate
change, are longer term, and
likely to impact on us from 2030
onwards in the high carbon scenarios.
The main opportunities are the
commercial and reputational opportunities
from being a leader in moving
to a low emissions model and
some growing product areas, especially
around light-weighting.
We have analysed a broad range
of mitigating actions and have
identified those that have the
most important impact on the
identified risks. Many of these,
such as having proactive and
ethical communications, a low
carbon product strategy, developing
products for circular business
models and investing in new technologies,
are currently underway within
Coats, and only need to be dialled
up to be more focused on the
climate change risks. The one
very significant new action that
needs to be taken is to develop
achievable emissions reduction
targets that are in line with
the 2015 Paris COP 21 low carbon
targets. In order to address
this, Coats has committed to
the SBTi, at the more challenging
Business Ambition for 1.5degC
level. We have also committed
to developing a long-term target
to reach net-zero emissions by
2050, the highest level of ambition
on climate under the SBTi. This
initiative is supported by the
United Nations Global Compact,
the World Resources Institute,
CDP (formerly Carbon Disclosure
Project) and WWF (formerly World
Wide Fund for Nature). SBTi is
the low emissions programme that
has received most support within
the textile industry, and hence
is the appropriate programme
for Coats to join. Having made
this commitment we now have two
years to develop and have approved
plans to reduce our absolute
emissions in line with the COP
21 target.
----------- -----------------------------------------------
Environmental non-performance Stable Our Sustainability Strategy,
risk launched in 2019, is fundamental
given changing standards to our mitigation plan for this
and increased scrutiny risk as many of the actions required
resulting in disruption are part of that strategy implementation.
of existing business, As for the last two years, the
fines and / or reputational progress on delivery of our strategy
damage. is detailed in our 2020 Sustainability
Report that is published simultaneously
with our Annual Report. Covid
did impact our progress with
actions during the year because
of plant closure and other disruptions,
and also because we had to halt
any activities that required
internal or external visitors
on our sites. This impacted plant
audits and effluent testing routines.
During Q4 we were able to resume
normal activities in some locations,
but there are ongoing disruptions
in some sites and these are likely
to continue in early 2021. Detailed
below are the principal actions
taken during 2020 that impact
on this risk.
We are implementing a harmonised
global system to effectively
manage our energy and environmental
impacts in a documented, systematic
way. This includes an environmental
management system (EMS) aligned
to ISO 14001 and an energy management
system aligned to ISO 50001 with
many elements of the EMS now
digitised.
We improved our monitoring and
measurement platform for sustainability
reporting to incorporate a digital
analytical tool that assists
us to perform deep dives on sustainability
metrics down to manufacturing
site level. This allows us to
target underperforming sites
whilst using best practice from
those sites consistently meeting
interim targets. Together with
the sustainability projects tracking
application, these tools will
help us meet our 2022 sustainability
targets for water, energy and
waste.
We completed Environmental Health
and Safety (EHS) legal compliance
audits and raised findings and
compliance actions for all of
our global manufacturing units
using our compliance tracking
application thereby improving
our compliance to EHS legal requirements.
We also manage all environmental
permits and licences we hold
in each country we operate in
on the permits management application.
Our environmental incident application
ensures that we have a consistent
and transparent way of managing
environmental incidents that
occur and implementing corrective
and preventative actions to prevent
reoccurrence through a risk-based
approach.
Online analytical monitoring
equipment provides real-time
data for our effluent treatment
plants that discharge direct
to natural waterways to ensure
we meet local permit conditions
and Zero Discharge of Hazardous
Chemicals (ZDHC) limits and to
meet our 2022 effluent treatment
plant targets.
We already had robust business
continuity plans (BCPs) in place
before the pandemic. These were
tested and stood up well during
Covid in what was clearly a live
stress test. But in the spirit
of continuous improvement, we
identified and collated all the
lessons learned from Covid and
used these to refresh the BCPs
to make them even more robust.
Our global Business Continuity
Plan includes environmental emergency
preparedness and response plans
and we have added an environmental
aspects and impacts application
to our digitised, global environmental
management system. The environmental
aspects and impacts register
is essentially a global environmental
risk register for the business.
These environmental and governance
measures have contributed to
us making further upward progress
in the FTSE4Good Index.
----------- -----------------------------------------------
3. Operational
Health and Safety Increasing The Board has continued to receive
risk and discuss with management -
The risk of (i) safety as a priority at each Board meeting
incident(s) leading - detailed reviews of health
to injury or fatality and safety performance and monitoring
involving our employees of progress against established
or other interested annual health and safety targets
parties such as contractors, and objectives. Senior management
visitors, onsite and employees throughout the
suppliers, etc. along Group likewise remain intently
with potential resulting focused on creating an injury-free
prosecution, financial work environment.
costs, business disruption
and / or reputational Following the great safety successes
damage; and / or of our Journey to Zero strategy
(ii) physical and launched in 2019, the deeply
mental health issues, embedded health and safety culture
including as a result served as a solid foundation
of the Covid pandemic, and it continued with nearly
impacting wellbeing, 40,000 preventive actions completed,
engagement, productivity and 518,000 H&S training hours
and talent retention. in 2020. It also enabled a rapid
and effective response to the
Covid pandemic.
The widespread Covid pandemic
posed significant health risk
to the Coats workforce throughout
the year. These risks were quickly
mitigated through world-wide
implementation of a pandemic
response plan based on the international
emergency management principles
of Preparedness, Prevention,
Response and Recovery (PPRR).
The PPRR plan was implemented
and deployed two weeks before
the pandemic was declared and
included comprehensive case tracing.
All health and safety efforts
were focused on two main fronts,
(1) prevention of virus spread
within the workplace, and (2)
prevention of transmission to
employees from outside of the
workplace. The early action we
took to change working practices,
introduce safety measures and
track contacts to four levels
meant that we did not have a
single confirmed case of infection
transmission happening in our
operations, and a small handful
of infections where the source
is unconfirmed and could have
occurred on site. The results
of our prevention efforts within
the workplace were widely successful
and will continue into 2021.
Despite these efforts, 14 of
our employees contracted Covid
outside of the workplace and
sadly died.
In 2021, continuing our effective
pandemic response and recovery
will be our primary focus. Additionally,
the Group has set specific targets
and objectives to reduce other
health and safety risks as well.
The Journey to Zero campaign
will continue and the Group will
continue to refine this approach
to identify and mitigate key
health and safety risks and to
further increase the Group's
focus on creating an injury-free
environment. See pages 23-27
for more information.
----------- -----------------------------------------------
Bribery and anti- Stable The Group continues to maintain
competitive behaviour clear and well publicised policies
risk and processes, spanning bribery
The risk of breach and anti-competitive behaviour
of anti-corruption along with a number of other
law or competition ethics issues, including in relation
law resulting in to partners, contractors and
material fine and suppliers. These are reinforced
/ or reputational through a comprehensive Supplier
damage. Code (covering initial due diligence
processes, onboarding, training,
ongoing compliance and auditing).
These policies are reviewed annually.
There is extensive online and
face-to-face training and regular
communications through a range
of channels, including through
our global ethical culture champions
network. During the pandemic,
the ethical culture champions
were asked to emphasise key ethical
messages in light of the potential
heightened risk of corruption
during these uncertain times.
A sub-committee of the GRMC comprising
key business and functional leaders
meets quarterly to consider a
range of ethics risks (including
key risk indicators for those
risks), legislative and regulatory
developments and mitigation plans.
The Group actively maintains
a whistleblower system, enabling
employees and others who are
aware of, or suspect, unethical
behaviour to report it confidentially.
Awareness of the system, together
with the risks and the policies,
has been increased through an
ongoing Ethical Culture Campaign
which operates at a Group and
local level. See pages 23-27
for more details. Raising awareness
of this risk is a priority for
the Group and it was encouraging
that the Group Communications
team won the Gold award for Best
Use of Social Media at Communicate
Magazine's Internal Communications
and Engagement Awards for Global
Ethics Day 2020, demonstrating
that the Group is at the forefront
of proactive engagement in its
ethical business training for
employees across the business.
----------- -----------------------------------------------
4. Legacy risks
Pension scheme deficit Stable The funded UK pension scheme
funding risk is overseen by its Trustee Board,
Risk of potential which is required to have the
volatility in UK appropriate knowledge and understanding
pension gross liabilities in this area. Independent professional
and total assets Trustee Directors are appointed
leading to increased to the Trustee Board to provide
annual cost of repair additional expertise. In particular,
plan to fund deficit professional investment advice
(which could impact is taken as necessary; investment
one or more of free strategy aligns with funding
cash flow and dividend objectives; and scheme assets
payments). are diversified accordingly.
The Group has agreed ongoing
annual deficit recovery payments
effective from 1 April 2019 and
these are payable until 31 December
2028. The Scheme's next triennial
valuation will have an effective
date of 31 March 2021. The impact
of Covid has been largely mitigated
through diversification, risk
management and interest rate
hedging. The Coats UK Pension
Scheme is currently over 85%
(2019: 80%) hedged against interest
rate and inflation movements
by reference to the Technical
Provisions liability.
The Group and the Trustee Board
routinely review de-risking of
the scheme through liability
management and investment strategies.
The de-risking framework in place
also enables the pension scheme
to take advantage of any out-performance.
See note 10 on pages 134-143
for more details.
----------- -----------------------------------------------
Lower Passaic River Stable The Board continues to monitor
legacy environmental developments very closely and
matter risk oversees the strategy in relation
Detail of the Lower to the Lower Passaic River proceedings.
Passaic River legacy
environmental matter
can be found in note
28 on pages 158-159.
----------- -----------------------------------------------
Responsibility statement
The following responsibility statement is repeated here solely
for the purpose of complying with Disclosure and Transparency Rule
6.3.5. This statement relates to and is extracted from page 78 of
the Annual Report 2020. Responsibility is for the full Annual
Report 2020 and not the extracted information presented in this
announcement or the Preliminary Announcement released on 4 March
2021.
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 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 3 March 2021
Related party transactions
A description of the related party transactions of the Company
is extracted from page 163 of the Annual Report 2020:
Remuneration of key management personnel
The Group Executive Team are deemed to be the key management
personnel of the Group. The remuneration of the Group Executive
Team, 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 79 to 95 in the audited part of the Directors'
Remuneration Report.
2020 2019
Year ended 31 December US$m US$m
----------------------------- ------- -----
Short-term employee benefits 6.0 8.6
------- -----
Share based payments 0.7 2.8
------- -----
6.7 11.4
------- -----
Trading transactions
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not
disclosed in this note. Transactions between the Group and its
joint ventures are disclosed below.
During the year, Group companies entered into the following
transactions with related parties who are not members of the
Group:
Sale of goods Purchase of goods
--------------- ---------------------------- ---------------------------
2020 2019 2020 2019
US$m US$m US$m US$m
------------- ------------- ------------ -------------
Joint ventures 5.9 3.8 45.7 55.1
------------- ------------- ------------ -------------
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.
END.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACSGPUUWWUPGGCG
(END) Dow Jones Newswires
March 11, 2021 09:35 ET (14:35 GMT)
Coats (LSE:COA)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Coats (LSE:COA)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
