Celloglas records pre tax loss in first trading year

Coatings specialist Celloglas has recorded near £1m loss in its first year of trading, however, the company said the loss was a managed part of its development.

According to its accounts to 31 December 2009, Celloglas made £9.8m, with a pre-tax loss of £859,778.

Its operating profit for continuing operations before restructuring costs and exceptional items was £409,563, however, when exceptional items and discontinued operations are taken into account the company lost £677,767.

The accounts take include £1m the company paid for the trade and assets of the previous incarnation of Celloglas after it went into administration, as well an additional £700,000 on restructuring the business after the acquisition.

Financial director Peter Clayton said: "When we purchased the company we factored in the cost of restructuring and consolidating the six sites into three, which we accomplished in the first six months.

"Our ongoing operations recorded a 5% profit despite the ongoing disruption and the dismal financial climate. Looking at this year's figures to date we were fully justified in the action we took."

The company took on a £1.5m inter-company loan from its parent company Berggruen Holdings, which was used for the restructuring as well as covering the first three months of trading before it had established a working capital.

The company said there was no dividend paid during the year.

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