Source - SMW
Specialist plastics maker Coral Products scrapped its interim dividend after mounting losses at its Haydock manufacturing facility sent it into the red.

The company booked a pre-tax loss for the six months through October of £7k, swinging from a profit a year earlier of £718k.

Revenue rose by 10.8% to £11.91m, while gross profit rose by 15.1% to £4.04m.

The interim dividend was suspended in line with a strategy to pursue organic growth, the company said.

"Results to date in the current financial year have been disappointing mainly due to the continuing losses at Coral Products Haydock facility," chairman Joe Grimmond said.

"Following the appointment of Mick Wood, COO, a comprehensive review of operations at the Haydock facility has been carried out. Problems have been identified and actions taken to resolve them during this financial year."

The review highlighted non-recurring costs of £425,000, related to one-off set-up costs for the automotive business, as well as the write off inventory.

As a result of those losses at Haydock, it was unlikely the group would do better than break-even in the current financial year, Grimmond said.

"All the other subsidiaries remain substantially profitable and as a result of the actions being taken at Haydock we remain confident of the group's future prospects," he added.


At 2:47pm: (LON:CRU) Coral Products PLC share price was 0p at 9.38p