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LONDON (Alliance News) - Coral Products PLC Wednesday said it's now in advanced discussions over a ten-year supply agreement it had first flagged in December, saying the customer, a national online retailer, has indicated that its orders could generate GBP8.0 million in revenue inside the first two years of the contract.
Coral Group shares were Wednesday quoted at 15.50 pence, up 22.8%.
In a statement, Coral Products said the talks relate to the supply of tote boxes for four new managed sites that would support the online retailer's growing presence.
Coral said it expects to sign the contract shortly and will issue an update when that happens or if the discussions are terminated. Initial deliveries are currently slated to begin in June, slightly pushed back from the previous expectation for a May start.
In December, Coral said it had received a purchase order for tooling and sampling ahead of a possible ten-year supply agreement with the online distributor for the supply of the specially designed crates. At that time, it said the deal could provide significant additional annual revenues from May.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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