Plastics maker Coral Products has warned of the continuing impact of the Covid-19 pandemic and Brexit despite starting its new financial year "strongly".
The Wythenshawe-headquartered group, which sold two of its companies and bought another earlier this year, has also reported its full-year results for the 12 months to April 30, 2021.
Coral Products has posted a revenue of £10.7m from its continuing operations, a rise from £8.7m, while its pre-tax losses were cut from £463,000 to £316,000.
In February 2021, the group sold Interpack and Coral Products (Mouldings) to IPL for £7.8m.
In March 2021, the group acquired 100% of the share capital of Customised Packaging (CPL) for a net consideration £1.2m.
Chairman Joe Grimmond said: "This current trading period has improved significantly upon the previous one, despite the ongoing Brexit, United States - China trading hostilities and Covid-19 pandemic issues.
"The board believes that the disposal provided the company with the opportunity to crystallise an attractive return on invested capital with respect to the sale companies, reduce net debt and also to provide additional financial flexibility to further develop and support the recent progress of the continuing group.
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"The board believes there is potential to further develop the continuing group in terms of sales and profits.
"The group used the funds to repay in full the £1m coronavirus business interruption loan (CBIL) and a £1.7m mortgage on the property at Haydock.
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"The proposed sale of the land and building at the Haydock site has now exchanged with completion expected in the first half of the new financial year, following the completion of the current roof replacement works.
"Whilst we have confidence in our development strategy and the prospects of the group, the very real uncertainties over Brexit and the coronavirus pandemic are a cause for concern.
"The group continues with its strategic progress of increasing focus on value-added and innovative products, particularly in the telecommunications, rail industry, shutters, extrusion and vacuum forming areas.
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"Our aim is to build a significant plastic moulding business with a bias towards using recycled materials.
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"Our group is facing macro-economic challenges that are unprecedented, but we believe that our balance sheet and margins mean that we can mitigate the effects. The crisis will pass at some point.
"At that time, it will be the work we do to move the business forward that will determine our future success.
"So, our priorities being clear: (1) to do all we can to keep our workplaces as safe as possible for staff, (2) secure the cash resources of the business and (3) continue to develop our product ranges throughout the next financial period.
"We have enjoyed a strong start to our current financial year and we look forward to a satisfactory outturn for the year given the prevailing conditions."