Cosalt still on track despite sector volatility

COSALT, the Grimsby-based safety equipment firm, said today that trading during the first quarter was in line with expectations, although it is being affected by international offshore and marine industry volatility.

The group said that turnover rose in Cosalt Marine from October 27, 2008 to March 19, 2009 to £14m compared to £11.6m in the same quarter the previous year.

Cosalt Offshore saw like-for-like revenue increase by 23% to £10m including the trading from the Norwegian acquisition, Myhre-Maritime.

It said that net debt had increased in line with the seasonality of the business adding: “This is consistent with management’s expectations and the group continues to operate within its available banking facilities.”

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

Its goal over the longer-term is to become a major player in a multi-billion dollar market underpinned by strict regulatory obligations, which ensure robust demand for services and provide good visibility for its order book.

In February, it 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.

The group said it was halving its dividend to 6p.