Plastic manufacturer issues profit warning

Coral Products' food recycling bin

A Haydock based plastic products designer and manufacturer has issued a profit warning.

Coral Products, a specialist in the design, manufacture and supply of plastic products says that it has been hit by a downturn in the car industry and delays in a major delivery.

The firm issued a trading statement this morning.

It said that despite reporting a strong recovery in the first half of the financial year and an encouraging start to the second half a number of key factors have affected performance in the latter part of the second half of the financial year.

These include a downturn in business generated from the automotive industry and significant delays in delivery of totes ordered from a major online retailer.

The statement said “In the six months to 31 October 2018, the company reported a profit before tax of £582,000.

“This was followed by a loss in the four months to 28 February 2019 and, as a result, the board therefore now expects the Group’s results for the year ending 30 April 2019 to be materially below both management and market expectations.

“As previously announced, the interim dividend of 0.25 p per share will be paid on 28 March 2019.”

Earlier this month the firm opened a recycling plant in Haydock.

With a capacity of a ton an hour, it will process Polypropylene, HD and PVC plastic materials.

The output will be used to make new products through the company’s injection moulders and extrusion profile machinery.

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