Last checked at 1 Jun 2021 07:00
1 June 2021
Coral Products plc
("Coral", the "Company" or the "Group")
Year End Trading Update
Return to full year profitability and confident outlook on future performance.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
Coral Products Plc, a specialist in the design, manufacture and supply of plastic products based in Wythenshawe, Manchester, is pleased to provide a trading update in advance of its final results for the year ended 30th April 2021.
HIGHLIGHTS (unaudited)
· Group Sales for continuing activities at the year end are expected to be not less than £10.7m (2020: £8.7m) for the year ended 30 April 2021 and when discontinued activities are included, Group Sales are expected to be not less than £22.4m (2020 £22.3m).
· The board expects to report Group profits before tax of circa £3.0m (2020: £0.8m loss) including a profit of £700,000 from continuing operations and £2.3m relating to the trading contribution and profits on the disposals of Coral Mouldings Ltd and Interpack Ltd.
· The results include two months contribution from the successful integration of Customised Packaging Ltd acquired 2 March 2021.
· Cash balances of £3.8m as at 30 April 2021 (2020: £0.5m) and gearing eliminated.
· Current year trading has started well and is in line with management expectations.
· The sale of the freehold property (which has no net debt) is expected to complete during the second half and will generate £3.5 million substantially increasing free cash reserves on completion. The carrying value in the books is £2.5 million.
· The Board is proposing a final dividend of 0.5p per share subject to shareholder approval at the AGM due to be held later in the summer.
Joe Grimmond, Executive Chairman, comments: "The Group now has three profitable trading subsidiaries and with the disposal of our Haydock operations and the sale of the associated freehold properties the Group is now substantially cash rich and debt free. Our continuing activities are all in sectors with forecast growth opportunities. We look forward with increased confidence to further development".
ENQUIRIES:
Coral Products plc
Joe Grimmond, Executive Chairman Tel 07703 518148
WH Ireland Nominated Adviser and Broker Tel 020 7220 1666
Adrian Hadden
Darshan Patel
Lydia Zychowska
Jasper Berry (Corporate Broking)
Capital Markets Consultants Limited
Richard Pearson Tel 07515 587184