Coats Group — FY16 ahead, estimates nudged up

Coats Group — FY16 ahead, estimates nudged up

A busy year for Coats concluded with progress on earnings and pensions. There is more to be done on both but with pension distractions substantially resolved and good cash credentials there are more strategic options available to management. The valuation has begun to normalise now and the return to dividend payment contributes to this.

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Research: Financials

OTC Markets Group — Growing market recognition

Against a soft trading background OTC Markets Group (OTCM) delivered FY16 numbers slightly ahead of our expectation and the prior year. While the number of companies on its premium exchanges fell during the year there has been encouraging pick-up in new joiners in Q4 and early 2017. On a medium-term view the increased number of states, now 20, that grant OTCM markets Blue Sky recognition is important in helping draw in additional, good quality, corporate clients.

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