Outlook improves for Haydock plastics manufacturer
Haydock based plastic products designer and manufacturer, Coral Products, said it expects full year results to be better than the previous year, despite issuing a profits warning in March.
Coral initially specialised in producing plastic CD, video and DVD cases, but the industry changed as consumers turned to downloading entertainment content, and the company switched to new lines, including recycling bins for the food and garden industries, and automotive parts.
It said in March its results would be impacted by a downturn in the car industry and delays in a major delivery.
In a trading update for the year ended April 30, today, it said: “Our trading update of 26 March 2019 stated that we expected the results for the year to be materially below market expectations.
“With the benefit of March and April’s actual results, together with urgent management action, we are pleased to report that the variance from market expectation, while still material, will not be as significant as previously expected.
“The outcome for the year to 30 April 2019, as per our as yet unaudited management accounts, indicates a marked improvement over the previous year’s results.”
It said sales, operating profit – underlying and actual – and EBITDA, were much improved.
Gross margins also improved, despite difficult trading conditions.
Overall debt slightly increased as Coral continued to invest in new products, processes, plant and people, to ensure it has the resources to meet what it believes will be increased market demand.
Coral expects to release its final results in August, in advance of the AGM in September.
It said it is especially pleased that during the year the company developed a number of new products, all of which will be introduced into production and sales during the current financial year.
These include new and improved food packaging, flame retardant plastic moulded roof tiles, a new food caddy made from recycled materials, extruded highway sound barriers, and a new jar range made out of recycled material.
Today’s update also included news of the firm’s first significant overseas order for tote bags to meet the requirement of a customer for a fulfilment centre located in France.
Looking ahead, the board said it remains confident in its strategy and looks forward to a year of continued improvement.