April sales boost for Cosalt

APRIL not only brought good weather but a raft of new orders for safety equipment firm Cosalt following months of trading volatility.

Investors were told at the Grimsby-based firm’s AGM yesterday that although a fall in demand for its services had continued into the second quarter, recent new orders would ensure a healthy “momentum” that would continue into the second half – traditionally the firm’s stronger trading period.

In March, Cosalt said that drop in orders meant that trading was below expectations in February and March. 

Also confirmed at the AGM were the resignations of directors Matthew Peacock and Rod Powell, who will be stepping down from the board with immediate effect.

Chairman David Hobdey said the board was grateful to the pair and thanked them for their “valuable contributions and support” during the group’s major restructuring process over the past few years.

He continued: “The company’s goal is to become a major player in a multi-billion dollar market governed by strict regulatory obligations, which underpin demand for services and provide good visibility for the company’s order book.

“With a strengthened management team in place, the company is now beginning to benefit from the restructuring process and the implementation of a more focused strategy. Your board therefore remains confident that despite the volatile trading in the last few months, activity levels will improve over the second half of the year.

In February, Cosalt said that reorganisation of the group was paying off with a 650% rise in pre-tax profits and 57% increase in revenue.

Restructuring included the sell off of its holiday homes and school uniform business to focus purely on safety equipment in the marine and offshore oil sectors.

In the 12 months to October 26, 2008, Cosalt made pre-tax profits on continuing operations before reorganisation costs of £7.2m on a turnover of £105m. Its restructuring and financing costs were £5.7m.

Cosalt is recognised as a leading European provider of critical safety equipment and services.