Cosalt sets sights on safety

MARINE safety equipment group to holiday home and school uniform supplier Cosalt has enjoyed “a year of progress” with three acquisitions helping it gain further focus on its core markets.

The Grimsby-based group saw headline pre-tax operating profits up by 50% to £5m on turnover which rose 9% to £135.13m in the year to October 28, 2007.

Pre-tax profits before exceptional gains and costs, revaluation of investment properties and amortisation of acquisition intangibles was £2.7m during the period while earnings per share were 11.59p.

The group, which supplies everything from buoyancy suits to rope, rigging and fire-fighting equipment to the shipping and offshore industries, boosted its market share in its core marine safety division by three acquisitions.

Bofort gives it access to the three largest cargo ports in Europe and key cruise ports in Italy, SSM takes it into the Spanish market for cargo and cruise ships and GTC provides a “major foothold” in the North Sea offshore oil and gas market.

Chairman John Kelly said: “Our growth strategy is clear and focussed, delivering both financial results in the short-term and building a platform for long-term profitable growth. Our markets are robust with good defensive qualities and in the case of the North Sea, growing quickly. They offer attractive roll-up acquisitions as well as organic expansion opportunities. We are confident that the 2007/08 financial year will demonstrate a third year of marked improvement in the group's performance.”

Cosalt is keen to focus on its safety and protection businesses which it feels can benefit from the growing number of regulations being brought in.

Mr Kelly said its holiday home manufacturing and supply business was “gaining momentum” under new leadership with profits of £1m on turnover of £49.75m.

It makes upmarket lodges under the Custom Homes banner while its caravan business provided temporary housing for people whose homes were flooded during last summer's downpour.

Its schoolwear business made a profit of £1.25m on turnover of £18.48m and chief executive Per Jonsson said it was benefiting from new sourcing from the Far East.

The final dividend is 6p a share with a total dividend of 12p.