Plastics firm filled with confidence following results turnaround

Coral Products' Haydock site has been sold

Haydock plastics manufacturer Coral Products released full year and half year results today, revealing a marked improvement over the intervening period.

Full year figures for the year to April 30, 2020, revealed a dip in revenues from £24.733m in 2019 to £22.321m this year. It made a pre-tax loss of £821,000, compared with a £41,000 pre-tax profit the previous year.

It declined to issue a shareholders’ dividend.

Coral said the fall in group revenues was entirely due to the impact of COVID-19.

Chairman Joe Grimmond said: “This current trading period has been one of the most difficult I’ve ever experienced, with Brexit, the United States-China trading wars, the General Election and the COVID-19 pandemic.

“The net effect of all these culminated in a steep reduction in sales in the second half from our budgeted expectations.”

He added: “Our group is facing a crisis that is unprecedented, but we believe that our balance sheet and margins mean that we can mitigate the effects.

“The crisis will pass at some point. At that time, it will be the work we do to move the business forward that will determine our future success.”

And following the release of six month figures to October 31, it appears the hard work has paid off.

Sales have fallen by 12.3% to £10.65m against the same period last year, but pre-tax profits of £541,000 represent a 2,064% increase on the £25,000 figure from 2019.

Profitability was helped by the introduction of new suppliers in China and the group’s recycling plant is contributing to the business, and has done throughout the pandemic to date.

The group said this exciting area of the business is expected to become more and more integral to the business profitability in the future.

Mr Grimmond said: “In my chairman’s statement that accompanied the release of the 2020 accounts I expressed concerns over the uncertainties associated with the ongoing Brexit situation and coronavirus pandemic. Despite these concerns I am encouraged with the level of sales and profitability achieved over the period.

“Cost reduction controls now in place, the recycling plant delivering to overall profitability coupled with continued and increased demand for COVID-19-related products, telecommunications, transport, food product packaging and recycling containers gives me great confidence for the future prospects and performance of the group.”

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