Sales grow as Coral Products seeks new recycling markets

June 20th, 2011 Luke Mofflin Leave a comment Go to comments

Coral Products 300

HAYDOCK-BASED Coral Products saw sales rise 5% last year to £13.2m, but full-year losses before tax widened 14% to £753,000.

The company, which has seen its traditional CD, video and DVD casings market decline sharply in recent years is trying to establish new sources of revenue going forward. Coral chairman Geoffrey Piper said: “The board recognises that sales of media packaging are in decline, albeit over a period of years.

“A new three-year strategic plan has been recently approved by the board. This plan aims to reduce the overall percentage of sales of media packaging products by increasing revenue in new business areas.

“This will involve a twin strategy of organic sales development and acquisition of businesses. Sales growth will focus on recycling and food packaging products, as these can be served by our existing plant, machinery and skills.

“In addition, we will increase our efforts to acquire further trade moulding businesses and are actively looking for targets.”

Earnings before interest, taxation, depreciation and amortisation were £602,000. This was against £940,000 in 2010. Coral said it would only reinstate dividend payments “once sufficient profits are available”. As with last year, the directors are not recommending a dividend for the year.

Sales of food recycling products grew to £1.2m in the first full year in this market. The market for these products is growing, and Coral hopes to increase its share of the food recycling products market.

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