22nd Aug 2019 10:24
(Alliance News) - Coral Products PLC held its dividend Thursday after an improvement annual performance, despite "difficult" conditions for the firm.
For the year ended April, the plastic products maker swung to GBP41,000 pretax profit from a GBP497,000 loss the year prior. This was after revenue rose 5.6% to GBP24.7 million from GBP23.4 million the year before.
"Whilst I am pleased to report an improved performance this year, it has proved to be a difficult period," Coral Chair Joe Grimmond said. "After a strong first half, the group endured a poor start to its second half, with losses in the four months to February."
"The losses were across the group, with the exception of Interpack," Grimmond added. "Decisive action, including the re-organisation of both Tatra-Rotalac and Mouldings to reduce costs, returned the group to profitability during March and April though at a lower level than during the first half."
"Further direct and indirect cost reduction measures across the group have continued into this current financial period," Grimmond continued. "The recycling unit introduced into production during May 2019 is already contributing to our cost reduction plan and will do increasingly throughout the current year as we ramp up production."
Coral proposed a 0.25 pence per share full year dividend, unchanged on the year prior.
"Whilst we have confidence in our development strategy and the prospects of the group, the very real uncertainties over Brexit are a cause for concern," Grimmond said. "We are taking action to mitigate these factors by continuing to develop existing products and bringing to market new innovative products. These are supplemented by new revenue streams such as recycling."
"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," Grimmond continued.
"Our aim is to build a significant plastic moulding business with a bias towards using recycled materials produced by our new recycling unit installed Haydock," Grimmond continued. "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. The current year will benefit from the Coral Mouldings and Tatra-Rotalac cost reductions, investments in plant and machinery and new business."
Shares in Coral were untraded at 2.8% higher at 8.22 pence in London on Thursday.
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