Colormatrix sees profits slip to £7m

THE world’s largest manufacturer of liquid colourants for the plastics industry – Colormatrix Europe – saw its pre-tax profits slip by £280,000 to £7m over the past year.

But turnover at the company, based in Knowsley in Merseyside, rose to £38.33m from £36.97m according to a directors’ report for the year ended December 2009.

Between 2007 and 2008, its turnover rose by £9.5m and its profits doubled.

The report lists the ‘major developments’ over the past year to include the establishment of Colormatrix Russia and Colormatrix Europe as new group companies.

Over the past year, the company has seen its employee numbers fall to 146 from 156 the year before.

It has also reduced its total bank borrowings from £56.725m to £53.968m.

The report hails another ‘profitable year’.

It states: ““Gross profit margin decreased by 30% on the preceding year due to an increase in raw material prices, adverse exchange movements on purchases made in US dollars and a management charge of £1.2m from Colormatrix Europe BV.

“EBITDA for the year was just over £2.2m compared to just over £8.5m in 2008, but 2008 included foreign exchange gains of £1.3m compared to losses of £0.2m in 2009.”