Loss-making Coral looks to household goods
DVD casemaker Coral Products has set its sights on the household goods market after seeing sales slump by 14%.
The business has been knocked by falling demand for CD and DVD cases and is now looking to a range of products that will, “have higher added value and longer, more predictable lives”.
It is already producing waste disposal crates and expects to start production of what it describes as kitchen and kerbside “food caddies” early next year.
During the six months to October 31 revenue fell by 14% to £6.6m. But a combination of sales of higher value goods, lower oil prices and lower costs, improved margins and helped the firm cut pre-tax losses from £788,000 to £193,000.
Chairman Geoffrey Piper said: “At the start of the financial year trade was still affected by a reduced demand for media products but recently we have seen turnover improve and this is expected to continue for the remainder of 2009. We are placing greater focus upon the higher margin products and services and this has contributed to a significant improvement in gross margins.”
The business, based in Haydock, Merseyside, will not be paying an interim dividend. It said it was “still cautious” about the immediate future and expects 2010 to remain difficult.
