St Helens manufacturer Coral Products sees half-year profits skyrocket

Merseyside manufacturer Coral Products plc has seen its profits rise despite a drop in sales revenue in the six months to October 31.

While the St Helens-based firm’s sales takings fell to £8.26m, a year-on-year drop of 8.9%, profit before tax leapt by 135.1% to £684k.

Underlying operating profit, meanwhile, rose by 50.7% to £817k.

Joe Grimmond, the chairman of Coral, said of the results: “I am pleased to report that the group has continued to make good progress during the first half of this financial year with trading in line with expectations.

“We have continued to diversify away from media markets to the extent that, in the first half, they represented just 15% of consolidated sales.”

In June this year Coral, which designs, manufactures and supplies injection moulded plastic products, invested £500k in the purchase of assets from Derbyshire-based plastic container maker Neiman Packaging, allowing it to broaden its range, increase production capacity and target new customers in the hygiene, health and personal care markets.

The transaction generated sales in the half-year period of £650k, although integration and startup costs meant it made a “minimal” contribution to overall profits, according to Mr Grimmond.

The acquisition is expected to make a greater contribution to profits during H2.

Speaking further, Mr Grimmond said: “Demand has remained in line with our targets and we have signed long-term contracts with certain of our larger customers in the telecoms and rail markets.

“Having received final approvals we have commenced production for our agreement to supply a range of totes to a leading national online retailer which will have a positive impact on the second half.”

He continued: “With a good order book and a strong pipeline of opportunities, the Group’s performance for the current year to date remains in line with market expectations.”

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