Struggling manufacturer says Brexit uncertainty is threat to business

Coral Products' food recycling bin

A firm which designs and manufacturers moulded plastic products was hit by losses in the second half of the year.

Haydock based Coral Products made a profit of £479,000 compared to a loss of £186,000 last year.

Group revenues at the business were up 5.7% to £24.7m over the last 12 months.

Underlying operating profit was up by 15.8% to just over £1m.

The firm entered into a development agreement with Rotite Technologies to accelerate innovation in the group’s growing range of products.

The firm also commissioned production of a “state of the art” recycling unit into the Haydock facility, enabling a 360-degree service to many of its customers whilst giving the opportunity to use high levels of recycled materials in the manufacture of many of the current and future product range.

Coral continued to build on being a major supplier of recycling crates and caddies into UK councils and local authorities.

Chairman Joe Grimmond said: “Whilst I am pleased to report an improved performance this year, it has proved to be a difficult period.

“After a strong first half when we reported revenues of £13.1m and underlying profit of £1m, the group endured a poor start to its second half, with losses in the four months to 28 February 2019.

“This resulted in our announcing that results for the year would be materially below management and market expectations.

“The losses were across the Group, with the exception of Interpack.

“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.

“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”.

“Throughout this difficult period, we have continued to invest in the group adding new and improved capacity and a state-of-the-art recycling unit. This has created greater sales opportunities in both existing and new markets.

“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.

“The decline in sterling against the dollar and euro, our major trading currencies, leads to increases in our costs of materials.

“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.”

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