Coral Products Share Discussion Threads

[hatfullofsky] 09/5/2022 13:41

Misread your post, doh !

[hatfullofsky] 09/5/2022 13:40

No, he needs to move to Chair

[clocktower] 09/5/2022 08:22

War in Ukraine. I was wondering if a member of the group made any of the heavy duty plastic cases being used to transport the pallet loads of munitions we see in the news being flown to Poland, or if the casing for the tank busting NLAW, or any other military casing is being produced in ever increasing numbers by CRU.

If they are involved in the production or have a contract with the MOD I suspect capacity is stretched.

Just a thought maybe charo might have an idea if it’s a possibility?

[base7] 06/5/2022 23:25

So ,revenues back to £20mill + ,very profitable (currently),no debt,a few mill still in bank ,& looks like we own a Freehold in Warrington (again ).Sounds much better than our position before we sold Mouldings ,Interpack & our property.
Very shaky markets interest -rates expected to continue rising,war worries & inflation like
Y to keep values subdued but if our dividend is maintained we remain a decent hedge in difficult times-but only if no banana skins

[temelco] 06/5/2022 19:55

Unless I'm misreading the situation, CRU doubled its turnover at a stroke and ditto for gross profit. But I may be wrong

[clocktower] 06/5/2022 15:07

I am sure your correct charo but there is still plenty of cash in the kitty and if the price drops further more support will surface.

[charo] 06/5/2022 14:37

JG must despair.

[clocktower] 06/5/2022 12:29

Very few are wanting to commit extra cash to the current market and as we see some are removing it from the table still due to all the war issues around plus possible recession.

[hatfullofsky] 05/5/2022 09:37

So much noise on the Insurance claim, look at the underlying deal. Distressed seller, £10m revenue, environmental credentials, troubled since 2019 and can now focus on the business. CRU have doubled their revenue for ~£3m. No doubt this will be another CPL and outperform. JG slow and steady - works for me.

This is exactly what I wanted from that cash pile, if I wasn't fully loaded I would add.

[temelco] 05/5/2022 09:11

The more I read about F&F the better this deal looks

[temelco] 05/5/2022 08:43

SP silly in my view

[charo] 05/5/2022 08:28

Clever, derisked ensuring possible legacy costs can be recovered in cash. Companies House suggests freehold equity covers initial cash consideration, trading for nil.

[clocktower] 05/5/2022 08:18

I agree with your last post This_is_me but it’s much more cost effective if you ensure all your policies include legal assistance, as it is very cheap but if you leave it until you have an problem it rapidly eats away from your returns.

Anyway CRU have ensued they will only pay on a pound for pound recovery.

So want is your view on the buy?

[this_is_me] 04/5/2022 19:12

They would have employed their own loss adjusters on a large claim just as they would have employed their own lawyers if it went to court.

It seems to be a good, if fairly complicated, deal. It looks like the vendors and their team should be able to make progress without having to worry about the distractions.

An RNS like that should have been released at 7:00. I've only just seen it.

[clocktower] 04/5/2022 17:49

Talking of capital investment base7, it is possible that a lot of new equipment was purchased after the fire they talked about in 2019, so it maybe very modern - depending if the damage was to stock or machinery I guess, bearing in mind there seems to be a dispute with the insurance provider/loss adjuster - I have had the same problem and three years later still fighting.

The loss adjusters are not there to help the insured, their job is to minimise the loss to the insurance provider, and in most cases they start off by suggesting they are there to assist you with the claim but that is not the case. When push comes to shove they nail their colours to the mast.

The most important thing with insurance, is to take out legal protection policies, and from day one notify them you want their assistance.

Still the agreement covers whatever the issues are in pound for pound settlement.

This is a great purchase, hats off to JG etc. It is also likely to open a lot of new doors. £10 million T/O to be added. Even if times get tuff say £9 million. Overheads will be cut as well.

[temelco] 04/5/2022 14:41

hxxps://www.research-tree.com/companies/uk/other/coral-products-plc/research/whireland/wh-ireland-coral-products-cru-acquisition-of-specialist-converter/41_202205040853236198/93cdc029-a3c0-4d3b-95e0-8f9634da7520
You've probably seen this.

[hatfullofsky] 04/5/2022 14:00

Post 3019 14d ago....To me it is extremely telling that the buybacks have stopped, add that to the moratorium of companies entering administration ending at the end of March and our cash pile and I wouldn?t at all be surprised in an acquisition of a distressed company soon.

[base7] 04/5/2022 13:24

I was expecting an acquisition although I hoped that it would be a bolt on which could be absorbed into one of our existing properties although it appears to have a large amount of equipment & expect that they wont relocate.Hillman is only 49 & could be a successor to JG , although a Board appointment may be considered later so it is not a given & with his new found wealth he may be planning an exit after 12 months, & share sale.Earnings accretive in year 1 sounds good-especially as FY23 has only just begun but their will be capital investment required & high energy costs & lets hope there is a decent management structure behind Hillman & that it isnt all about him.
Hopefully Stephen Barker ( ex Interpack) will be able to help expansion with his food packaging contacts & that the business can be grown while being rapidly integrated.

[clocktower] 04/5/2022 10:05

The more I look at it the better it gets:

[clocktower] 04/5/2022 09:56

Interesting tack on, having now spent a few moments on research. Need more time to asses.



Note location.

North Florida Road, Haydock Industrial Estate, Haydock, WA11 9UB

[bishan bedi] 04/5/2022 09:37

And what might they be clockers? You really are up and down aren't you!

[clocktower] 04/5/2022 09:35

12 month lock in, is not that long but at least the shares that were being held in treasury are being put to good use.

Still a case of wait and see but there are serious concerns imo.

[temelco] 04/5/2022 09:30

Looks like a cheap buy. I like the sound of earnings enhancing

[value hound] 04/5/2022 09:28

Seems OK at first glance; £3m for... "net assets of £3.37m; sales of £10.1million, and profit before tax of £61,000. For the full year ended 31 December 2021, F&F is forecasting a loss before tax of £174k but an underlying profit of £541k (after one off adjustments)."

[clocktower] 03/5/2022 09:43

If one was to take all the cash out - how much would any buyer be willing to pay for the rest of the business?

So if JG wanted out, would this be an option?