Sale of former headquarters puts plastics group on firm footing

Coral Products' Haydock site has been sold
X The Business Desk

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Manchester-based plastics group, Coral Products, unveiled improved six month figures today.

The firm, which makes plastic containers and tote bags, reported turnover for the half year to October 31, of £7.1m, up from £4.53m in the same period last year.

Pre-tax profits rose 78% from £286,000 to £510,000. The interim dividend per share has been held at 0.50p per share.

The firm said its strong net assets position has been maintained.

It has dash and cash equivalents of £5.5m, compared with £1.3m in 2020. Cash and cash equivalents are defined as cash of £4.8m (2020: £1.3m) plus treasury shares of £0.7m (2020: £nil).

The cash receipt from the sale of the firm’s Haydock property of £3.5m will be recognised in the second half of the financial year. It produced a gain of approximately £900,000.

Coral said rhe first half of the year has seen an increase in revenue and profit, despite the ongoing impact of COVID-19, Brexit, the China-USA trading challenges, volatile currency fluctuations and variable trading conditions.

It said its newly-developed extruded fire retardant click & fix product is expected to positively impact the business in the final quarter of this year.

Chairman, Joe Grimmond, said: “I am delighted with the performance of the business in the first half of the financial year.

“I am pleased to report that the results to date are well ahead of the same period last year, in spite of the prevailing uncertainties of Brexit and the COVID-19 pandemic.

“With our enhanced cash position arising from the sale of the Haydock property, which completed on 19 November 2021 for £3.5m, we remain confident of the group’s future prospects.”