Shares in textile group Coats Viyella dipped 8[1/2]p to 259[1/2]p

yesterday as the company announced that it had no reason to believe the

outcome for the year would be materially different from current

expectations in the market. This was despite generally difficult trading

in the UK and Europe in particular. The company said the outlook for

1994 remains positive.

More specifically, it said that UK trading has suffered from lower

volume in certain segments and continued margin pressure offset by

ongoing productivity and cost improvements. The US, although

competitive, continues to progress while Europe is significantly

depressed but not out of line with expectations.

South America is described as patchy, but Brazil is on target to

improve its performance this year and next. The Far East has also been

competitive and has areas of good growth and some areas of

disappointment. India is said to have largely recovered from its labour

problems and will finish the year strongly.

Reorganisation costs will be proportionally more than those disclosed

at the half year but will again be broadly matched by gains of #15m on

property sales. Year end gearing should be under 30% (down from 54%)

following conversion of preference shares.