‘Disappointing’ half year for Coral

CORAL Products, the injection moulded plastic products company, has seen its half year performance fall significantly below market expectations, but said it will continue with its strategic plan of diversifying away from physical media products.

Turnover was down 6% to £8.8m (2012: £9.4m), with pre-tax profits also down to £205,000 (2012: £480,000) for the six months to the end of October.

The company said it was affected late in the period by reduced margins in media products, caused by continued challenging retail market conditions, and significantly reduced sales in recycling crates and caddies, although food container business Interpack has continued to operate strongly.

Chief executive Warren Ferster said: “Despite retail market conditions remaining difficult and the adverse impact this has had on these results, the group has maintained positive momentum in progressing its strategic plan.

“Progress in these difficult economic times has been slower than we would have hoped for but a reshaped group is beginning to emerge with markets and products that have increased potential and are expected to achieve higher margins.”
 
Joe Grimmond, Coral’s chairman, added: “I am encouraged that the group has managed to increase the proportion of sales in non-media products, which represented over 60% of total sales in the period. This trend is set to continue and we are putting in place further production capacity to enable us to meet demand.”