Plastic products manufacturer Coral Products has pledged to reinstate dividends as it anticipates full-year revenue to be “in line with expectations” after a challenging start to the trading year.
In a trading update to investors today, the Manchester-based manufacturing firm said its “intentions” are to reinstate an interim dividend of 0.25p to shareholders, to be paid on 23 August.
It comes after Coral Products scrapped ITS interim dividend in January, just a month after it was announced, as it warned on profits.
Cost-savings helped to negate these problems however, despite ongoing geopolitical tensions stemming from the Middle East, over the war in Gaza, and red sea shipping disruption.
The firm said full-year revenue is expected to be over £31m, down from £35.2m in 2023, with earnings before interest, taxes, depreciation, and amortisation (EBIDTA) “not less than” £3.2m, down from £3.9m.
Chief executive Lance Burn said: “We quickly recognised and communicated the adverse commercial impact experienced in our industry towards the end of 2023 and as a result, have been able to implement corrective commercial measures and organisational reform.
“We are pleased to say that we are beginning to see improvements in most of our markets, whilst being mindful of the continuing economic and geopolitical uncertainty.”
The firm is focused on four areas of growth, including the management of commercial solutions, technical innovation, investment technology and M&A.
Its most recent investment of £3m in new manufacturing capabilities is expected to benefit the current year, Burn said, which is now serving new customers.
“We have created a focused and accountable new two-division structure which is delivering performance and margin improvement through innovation, simplification and efficiency. We have exited low margin revenue streams in order to focus on profitability,” Burn added.