Cosalt on target to hit expectations

COSALT, the provider of safety equipment and services to the marine and offshore oil and gas industries, has seen a slight dip in revenues over the start of its financial year but expects to hit its targets for the full year.

In an interim management statement, the Grimsby-based group said revenues in the four months to the end of February were £30m, compared to £31m over the same period the previous year.

However, Cosalt said steps taken to reduce costs combined with improvements in trading conditions meant its expectations for the full year remained unchanged.

Cosalt said it continued to focus on managing working capital and was operating “well within” its available banking facilities and meeting its covenants.

Mark Lejman, Cosalt’s chief executive, said: “We reported in our preliminary results statement in early February 2010 that trading conditions in the early part of the year continued to be challenging. 

“However, there is some evidence of improvement in the market and we continue to manage both costs and working capital carefully as we prepare for the seasonal uplift in trading which occurs in the summer months.”

During the 53 weeks to November 1, 2009, Cosalt saw turnover rise 2.6% to £107.8m but pre-tax profits fall by 24% to £5.49m.