Covid and Brexit warnings from the plastics manufacturer Coral Products despite a “strong start” to the financial year
The plastics manufacturer Coral Products has warned of the continuing effects of the Covid-19 pandemic and Brexit, despite the “strong” start to the new financial year.
The group, headquartered in Wythenshawe, which sold two of its companies and bought another earlier this year, has also released its annual results for the 12 months ended April 30, 2021.
Coral Products had sales of £ 10.7 million from its continuing operations, an increase of £ 8.7 million while reducing pre-tax losses from £ 463,000 to £ 316,000.
READ MORE: Issa Brothers EG Group gas station giant acquires UK’s second largest bakery company Cooplands
In February 2021, the group sold Interpack and Coral Products (Moldings) to IPL for £ 7.8 million.
In March 2021, the group acquired 100% of the share capital of Customized Packaging (CPL) for a net purchase price of £ 1.2 million.
Chairman Joe Grimmond said: “This current trading period has improved significantly over the previous one, despite the ongoing Brexit, trade hostilities between the US and China and the Covid-19 pandemic.
“The Board of Directors believes that the sale has provided the company with an opportunity to achieve an attractive return on capital employed in relation to the divesting company, reducing net debt and also providing additional financial flexibility to accommodate recent advances in the company to further develop and support the continued group. ” .
“The Management Board sees potential to further develop the continued group in terms of sales and profit.
“The group used the funds to raise the $ 1 million coronavirus business interruption loan (CBIL).
BusinessLive is your home for business news from across the North West – and you can stay in touch with the latest news from Greater Manchester, Liverpool City, Cheshire, Lancashire and Cumbria through our email alerts.
You can sign up to receive daily morning news from each region we cover and weekly email bulletins on key sectors of the economy from manufacturing to technology and business. And we’re sending out breaking news for all the stories we think you shouldn’t miss out on.
Visit our email preference center to sign up for the latest news from BusinessLive.
For the latest stories, views, polls, and more – and the breaking news – follow our BusinessLive North West LinkedIn page here.
“The planned sale of the property and the building on the Haydock site has now been replaced with a completion, which is expected in the first half of the new financial year, after the ongoing roof renovation work has been completed.
“Although we have confidence in our development strategy and the Group’s prospects, the very real uncertainties about Brexit and the coronavirus pandemic give cause for concern.
“The group continues its strategic progress of increasingly focusing on value-adding and innovative products, particularly in the telecommunications, rail industry, shutters, extrusion and vacuum forming sectors.
Latest business news from Greater Manchester
“Our goal is to build a significant plastic molded parts business that is focused on the use of recycled materials.
“Our Group is facing unprecedented macroeconomic challenges, but we believe we can mitigate the impact with our balance sheet and margins. The crisis will be over at some point.
“At that point, it will be the work we are doing to drive the business forward that will determine our future success.
“Our priorities are therefore clear: (1) to do everything possible to keep our jobs as safe as possible for our employees, (2) to secure the company’s liquidity and (3) to further develop our product range over the next few years in the financial period.
“We have made a strong start to our current financial year and are looking forward to a satisfactory course of the year under the given framework conditions.”