Coral Products flags 'very strong' first half despite logistics issues

Coral Products reported a “very strong” first half in a trading update on Wednesday, saying it would report sales and profit before tax “substantially ahead” of the same time last year.

The AIM-traded plastics manufacturer, which was holding its annual general meeting, said that was in spite of a disappointing contribution from Global One Pak, which was primarily due to logistics cost increases relating to its China trading, compounded by the continuing ill health of the managing director.

Chairman Joe Grimmond said the board took “immediate steps” to address both issues, however trading conditions, especially with the Far East, remained problematic.

“The board believes this is expected to present better opportunities to on shore manufacture and we are well set to benefit from such,” Grimmond said.

“In order that our shareholders can share in this improvement, your board has declared an interim dividend of 0.5p per share with an ex-dividend date of 11 November and record date of 12 November.”

Coral Products said the interim dividend would be paid on 3 December.

At 1057 BST, shares in Coral Products were down 1.29% at 15.3p.