Coral Products Q1 profits surge despite drop in sales

Plastic injection and blow moulded products manufacturer Coral Products saw first-quarter profits surge despite a drop in sales but stated that trading looked set to improve if the Covid-19 pandemic can be brought under control.

Coral said on Monday that first-quarter trading had seen revenues drop, despite underlying operating profits growing ahead of expectations in the six months ended 31 July.

Turnover for the quarter fell to £5.4m from £7.1m but underlying operating profits surged from £38,400 to £201,500.

The AIM-listed company stated early actions taken as part of an effort to cut costs and improve efficiencies had helped drive the strong performance.

Sales dropped nearly 25% year-on-year, all due to impacts stemming from the Covid-19 pandemic.

Coral added that it was confident of increased sales improving profitability and cash flow when Covid-19 ceases to be an ongoing concern.

As of 1035 BST, Coral shares had shot up 11.98% to 5.38p.