Diversity pays dividends for Coral
PLASTIC box maker Coral Products reported a 31% increase in sales for the year to April 30 to £17.3m and an underlying profit before exceptionals of £185,000, compared with a £753,000 loss in 2011.
The company attributed its improved performance to its change in focus and a “strong performance” from the food packaging company Interpack bought for an £4.1m in September last year.
The company also said that it was on track with a strategic plan to reduce its reliance on its previously core market of making CD and DVD jewel cases to less than half of total revenues by April 2014.
Chairman Joe Grimmond said: “This was the initial year of our three-year strategic plan of improvement. The progress made demonstrates the fundamental strengths of the business and its capacity to improve.
“Whilst overall economic conditions remain difficult, our trading has continued to improve across the group. The benefit from our recent investments is leading to positive sales growth and this, together with a full year’s contribution from Interpack, is expected to result in a further year of solid growth.”
The firm’s debt increased to £1.9m (2011: £944,000) at the year end despite a £1.7m share issue due to the cost of acquiring Interpack, a £1.6m spend on upgrading equipment and £554,000 in restructuring costs.
Despite this, the progress made meant Coral Products is proposing to re-introduce dividends for the first time since 2005, with a 0.5p per share final dividend payment proposed.
