Cosalt optimistic signs of recovery are on horizon

By [cawhite]

GRIMSBY firm Cosalt has had a multi-million-pound increase in sales – despite an overall loss of £3.4-million.

The firm's future is good for the second half of the year thanks to expanding shipping services and health and safety equipment supplies.

Sales went up from £49.6-million to £52.9-million – a seven per cent rise – in the first half of this year.

That was set against the backdrop of a pre-tax loss of £3.44-million. The firm said it would not be paying an interim dividend to shareholders.

Among them is the co-founder of Carphone Warehouse, David Ross, with a 15 per cent stake, whose grandfather was chairman and father John Ross was chief executive in the 1980s.

Last year it lost £25-million in its Hull-based caravan business, which has now been sold off, as reported.

In its latest interim results, bosses at the firm, which employs 80 staff at its headquarters in Fish Dock Road, said there were optimistic signs of recovery on the horizon.

A lifeline in the firm's bounce back against recession came from the launch of the biggest cruise-liner ever built, Oasis Of The Seas.

Cosalt supplied £240,000 worth of life jackets for the liner's 5,400 passengers.

The vessel is due to enter service later this year, going on Caribbean cruises from Port Everglades, in Fort Lauderdale, Florida.

Cosalt has also tied up a deal with specialist rope manufacturer Birdon to supply shipping services and the growing market in health and safety equipment.

Expansion of the nation's railways by Network Rail has also added to protective clothing sales for the business, and its workplace clothing manufacture division received a boost through providing firefighters with safety equipment for flooding emergencies.

Cosalt chairman David Hobdey said the downturn in the oil and gas industry had led to a drop in orders for lifeboats and equipment.

He said: "Cosalt is at the forefront in providing crucial technical compliance services to offshore rig operators and the addition of services such as lifeboat inspection and premium life raft and life jacket products gives an increasingly attractive offering to our customers.

"While it has been a challenging first six months, due primarily to the impact of lower oil prices on demand for our offshore services and a generally more difficult economic climate for freight and port activity, we are now seeing an increase in order levels at Cosalt Offshore going into the second half of the year."

The interim business report read: "Volatility in the oil price in the first half resulted in our key customers looking to save costs and defer projects within the constraints of their regulatory obligations and this impacted both our sales pricing and volumes.

"However, we are now seeing deferred orders coming through in the second half which is traditionally the stronger period of trading for this business."

Cosalt's chief executive, Mark Lejman, marking his first year in the post, said: "I would have preferred not to have suffered a recession in my first year, but we are hopeful that green shoots are appearing.

"It is good to be able to see our brand on the Oasis Of The Seas."

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Visit www.cosalt.com for more information about the company.