27th Sep 2018 16:11
LONDON (Alliance News) - Plastic products manufacturer Coral Products PLC said on Thursday it cut its dividend following a sharp sink to a loss in its recently ended financial year, despite revenue growth.
Coral Products reported for the year to the end of April a pretax loss of GBP497,000, sinking from a profit of GBP465,000 the year before, due to higher administrative costs to GBP7.0 million from GBP5.8 million.
This was due to the increased spend on purchasing or replacing group assets, as well as one-off reorganisation costs. There was also a poor performance at Coral Products Mouldings in the first eight months of the year.
Revenue however, grew by 9.2% to GBP23.4 million from GBP21.4 million the year before.
Coral Products declared a dividend of 0.25 pence per share, down 64% from 0.70p the year before.
"The group continues with its strategic progress of increasing focus on value-added and innovative products, particularly in the food container, recycling, telecommunications, rail industry, home delivery totes and blow moulding areas," said Chairman Joe Grimmond.
"Our focus is to build a significant plastic moulding business with a bias towards using recycled materials. We remain confident in our ability to do so via both improved internal performances of individual subsidiaries supported by strategic acquisitions in the short to medium term," Grimmond added.
Shares in Coral Products were down 22.6% at 11.20 pence on Thursday.
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