- First-half revenue down 8 per cent to £15.8mn
- Gross profit falls a fifth to £4.8mn
- Adjusted pre-tax loss of £0.4mn down from profit of £1.2mn
- Post-period property disposal and insurance claim settlement
Plastic products maker and designer Coral Products (CRU:6.25p) warned of challenging market conditions in mid-October 2024 and downgraded profit guidance at the time, so the first-half underlying pre-tax loss of £0.4mn was not unexpected. House broker Cavendish forecasts break-even at the adjusted pre-tax level on a similar revenue performance in the second half to 30 April 2025, with the benefit of operational cost savings and efficiency gains.
Specifically, the company has been experiencing lower order levels from customers in the telecoms sector (due to the reduction in UK housebuilding and infrastructure projects) and the FMCG and automotive markets, which have been hit by a general reduction in consumer spending. The impact on revenue from the lower orders is being partially offset by contract wins on the back of a £3mn investment in new machinery, albeit at a reduced gross margin mix.