Cosalt cash flow problems impact on trading

In a trading update this morning, the Grimsby-based company said delays in the sale of its marine division earlier in the year had caused cashflow problems which in turn hurt margins in its offshore division.

It also blamed the delay for problems with the rollout of a new contract for its workwear division.

The company said: “The board has instigated a full review of the group’s operations and future funding requirements, which is ongoing.”

Cosalt was in talks with Survitec to sell its marine division in November last year but the deal was not completed until August.