LONDON (Alliance News) - Coral Products PLC on Wednesday reported a profit in its recently-ended financial year, having suffered a loss the year before, as revenue rose and it began a strategy to replace sales of media-based products, such as CD cases, with non-media products, such as food packaging.
The company, which makes injection moulded plastic products, said it made a GBP191,000 pretax profit in the year to April 30, after it made a GBP922,000 loss the prior year. Revenue grew 1.2% to GBP17.4 million from GBP17.2 million.
Coral said that profit growth reflects its strategy of replacing sales of media-based assets with sales of other plastic moulded products, while maintaining control of costs. Revenue was also boosted by sales of food packaging.
Coral will pay a dividend of 0.7 pence for the year, up 40% on the 0.5p it paid a year earlier.
"We adopted a new five year plan this year which has targets aimed at substantially increasing group revenue and profitability from our specialist plastic products manufacturing and distribution activities," Chairman Joe Grimmond said in a statement.
"In June 2015, we took our first step along this plan when we acquired certain plant and machinery from Neiman Packaging Ltd," Grimmond said. "This acquisition introduces a new product area to the group as well as two new manufacturing processes, injection blow moulding and extrusion blow moulding, enhancing our range of manufacturing capability."
"We look forward with confidence to further progress in the coming year," he added.
Shares in Coral were trading up 8.3% at 17.33 pence Wednesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Coral Products (CRU)