Food packaging drives profits at Coral Products

HIGHER margins have helped Coral Products move into profit.

The Haydock firm which makes cases for CDs and computer games, as well as recycling boxes and food packaging, recorded a pre-tax profit of £480,000 in the six months to October, up from a loss of £356,000 last time.

Sales were also up, rising 9% at £9.41m.

Coral said its strategy of diversifying away from “media” products, such as CD and games cases, had paid off, with an “excellent” performance from its Interpack food business which sells plastic food containers like ice cream tubs.

Recycling boxes also did well, despite delays in the funding allocated to local authorities.

In contrast media packaging turnover was disappointing. “Media sales continue to be weak and we are planning and preparing for a lower level of sales activity going forward,” said the company.

Chairman Joe Grimmond said: “The progress we have made illustrates that our strategy is delivering results. We continue to implement efficiency initiatives whilst looking to invest in further areas of growth.

“Overall the first half performance is much improved over the previous year’s and the board views the future for the group for the full year and beyond with confidence.”