Coral Products PLC on Monday said it was ‘cautiously optimistic’ about future prospects after slipping into the red at the financial half-year end.

The Manchester, England-based maker of bespoke plastic products reported a pretax loss of £1.1 million in the six months to October 31, swinging from a pretax profit of £836,000 a year prior.

Weighing on the bottom line, reorganisation costs of £676,000 compared with just £95,000 a year earlier.

Revenue fell by 8.1% to £15.8 million from £17.2 million.

Coral Products said reduced order levels from core customers continued throughout the period.

Problems with new machines and tooling contributed to major manufacturing issues during the period, the firm noted, adding these have been addressed and resolved.

Non-Executive Chair Joe Grimmond said the firm had taken ‘swift and effective actions’ responding to the disappointing first half result.

In October, the firm announced a cost rationalisation exercise and the departure of chief executive Lance Burn.

‘The cost savings, operational improvements and strengthened financial position provide the group with the financial resilience needed to navigate the current difficult economic landscape. With much reduced borrowings and greatly strengthened liquidity a sharper focus on core capabilities and strategic investments, the group is well positioned, notwithstanding the difficult macro-economic climate, to deliver a much improved performance,’ Grimmond said on Monday.

Coral Products said while pipeline orders have stabilised at first-half levels, it remains cautiously optimistic about recovery in key markets such as house building, supported by government priorities.

Reflecting the first-half loss, the company halved the interim dividend to 0.25 pence per share from 0.50p.

Shares in Coral Products were 2.7% lower at 6.33p on Monday afternoon in London.

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