Coral Products Share Discussion Threads

[clocktower] 24/3/2017 08:16

JG on buying equipment again at knockdown prices I guess but as the RNS states at best it will be next year before they start to show and benefit. that is IF profitable orders are confirmed. If it works it may turn Haydock around.

The concerns are that it adds debt to the books at a time when all is not rosy. Do not be surprised to see Joe coming around for some more cash on the back of a signed and sealed order, which could be a get out of jail card. While Joe has turned the company around, there are issues to be resolved, so this share price jump maybe short lived, if some of the larger holders decide enough is enough, having failed to see progress since they last funded CRU.

[this_is_me] 24/3/2017 07:22

That all looks very positive for future trading.

[charo] 27/2/2017 08:39

seems that in spite of troubles interim div being paid wednesday.

[oldvic] 09/2/2017 19:24

take over target ?
hes cleared the decks a litle

[clocktower] 08/2/2017 08:09

Having watched how this is panning out, it seems to me that Joe`s buying has once again had the effect of stabilising the share price Unless further bad news comes, it seems likely that not much will change until we get some figures with another outlook statement.

[opodio] 30/1/2017 16:10

The market in general looks set for a correction, and if economic figures show further signs of weakness this could find 10p would be hard to hold onto imo.

[clocktower] 30/1/2017 13:25

More small director buying announced today to try to shore up the breeches I assume.

I expect there are more that will be happy to remove themselves from the remaining risks and sell into the slightest strength.

If there is a second profit warning it could go lower than 10p I guess.

[charo] 29/1/2017 20:09

As we all can sell hold or indeed buy.business is never easy or always upwards.
See French connection
BT coop bank next robinsons
Rsb
Announcement was brutal but frank let's see what transpires.

[truffle] 29/1/2017 19:23

Having seen him in action?
Appointing the CEO was a big mistake on his part by the look of it
Sort it or sell it

[charo] 29/1/2017 18:09

As note says all subs profitable except mouldings.RZ was supposed moulding whizz big rep.So not a problem with acquisitions ?According to accounts
JG has over 5million shares none from options.Having spent 4 years turning sows ear to silk bet he spitting blood and having seen him in action bet on coral.

[coolen] 29/1/2017 16:27

Was this Grim guy involved with a previous plc, which sunk ?

[valuschmalu] 29/1/2017 08:31

I've felt that there was one acquisition too many (Global Pak) when the company should have been focused on improving efficiency at Haydock and subsuming other acquisitions. If you go on a big acquisition spree, you need the right directors including an appropriate CEO and FD with experience of consolidating several businesses etc and company 'infrastructure' (financial reporting etc) to support this. Its no mean feat and I wonder if they moved too quickly to offset cessation of media sales. With the share price where it is I doubt we'll be seeing any more acquisitions for a while.

I suspect liquidity might be tight given high level of debt at interims, potential earn-outs as noted by others, compensation for loss of office, ringfenced capex etc. I suspect final divi might be suspended. They may have no choice.

JG now needs to find another CEO. Maybe a daft suggestion but why doesnt he become CEO and find a decent non exec chairman.

Overall very disappointing. Fingers crossed (assuming there is no fraud at play here and that CEO wasnt up to the job rather than up to funny business), I dont see this as a terminal blow but a lot of confidence lost. Share price probably will go lower but IMHO 13p doesn't seem horrific value. Would like to see more substantial director buying before betting the house on it. Fridays purchases were a bit weedy.

[valhamos] 28/1/2017 17:01

Unlikely that the reason is lack of orders. It has been a problem for years to get sufficient volumes through the Haydock factory to compensate for the decline in media products. You don't appoint a new CEO who is reported to have years of injection moulding experience and then part company after 8 months because of a "lull in demand". And if it was a lack of orders you would not say "Immediate steps have been taken to improve performance at Mouldings and losses are expected to be reduced from January 2017 onwards".

My guess is that the problems relate to planning and production efficiency or the implementation of new plant and processes and that the new CEO could not deliver what was expected of him. As regards the FD with the acquisitions over the last few years and the increased investment and business growth the task must have been more involved than before and if his heart was no longer in it then it is for the best for all concerned to hand over the reins to someone else.

[sharw] 28/1/2017 15:50

As you say, we need more detail. It looks like a statement rapidly cobbled together before news of a massive board bust-up leaked out.

"...a poor trading performance" could mean anything - lack of orders? pressure on margins? problems with new super machinery? - we should be told.

Sometimes a person appointed does not fit or there is a personality clash - it happens. More worrying is Stephen Fletcher retiring (notice he gets thanked, Zadona doesn't). He will turn 60 on Monday - did they try to persuade him to stay on a while to steady the boat through a difficult period? I doubt whether we will ever know.

[truffle] 28/1/2017 14:03

It all looks very poor without more detailed explanations
Zandona joins as CEO in June 2016 and leaves in January 2017 - makes you wonder.
It also points the spotlight on Grimond and the rest of the board - what about their judgement in making appointments? How capable is Grimond himself. Perhaps he should go too.

[clocktower] 27/1/2017 17:27

Good luck topvest but this has been a winner and rewarding for some of us. If your looking for a solid investment with div then stick it in JEL (410/418) - if you want something with a higher risk punt, no dividend take a look at BBSN imo it could jump 50% on a news day at any time. See last RNS.

[markth126] 27/1/2017 16:35

Followed joe before and have followed again! Think it will be a long road and maybe a few bumps but worth it in the end! Another 50000 for me today!

[topvest] 27/1/2017 16:23

I've sold out. Totally lost my patience with this one. Not worth holding given their record of profit warnings. My mistake on buying this rubbish company. Disappointed me before and I got out at a small profit (on average). Should have learnt my lesson. I've actually been selling lots of marginal shares today. Having a bit of a portfolio clean-up.

[clocktower] 27/1/2017 15:58

So Joe followed form and purchased stock today as did D.Low.It seems to have helped support the price as intended I guess.Maybe it will not work at well as last time though, due to the amount of extra stock in the market and liquidity. Time will tell.

[clocktower] 27/1/2017 13:52

Good point sharw, That reminded me there is also an earn-out sum to be paid under certain terms and targets to the vendors of Global One-Pak Holdings Ltd which could also be very costly and add to the current number of shares. I cannot recall seeing any further info on that, if I am mistaken please correct me.

Not a pretty picture at all.

[sharw] 27/1/2017 13:40

Not a good day for Gervais Williams, for whom I have some respect for his stockpicking. Miton took up over half of the placing @ 20p last February raising its holding to 20%.

[bookbroker] 27/1/2017 11:50

I would think they have had issues with the new machinery, and quite possibly some delays in renewing contracts, and resulting pressure on margins, everything these days is packaged in moulded plastic so I cannot see any reason such as the above as regards plastic in the environment!

[clocktower] 27/1/2017 11:24

Will this be the first of many profit warnings?

[clocktower] 27/1/2017 11:09

This is what Joe said some six weeks or so ago when the accounts till 31.10.16 were presented:

Commenting on today's results, Joe Grimmond, Coral's Chairman, said:

"I am pleased to announce that trading in the first half of the current year shows revenue and profits both substantially ahead of the same period for last year.

Coral Products continues to make good progress in line with our 2015 strategic plan. We have strengthened our position in injection moulding and extruded products whilst at the same time expanding our range of capabilities enhancing our market offering.

Results to date in the current financial year have been in line with the Board's expectations and, in spite of prevailing political uncertainties, we remain confident about the Group's future prospects."

What a reversal in such a short time - I think a much more detailed explanation is required from him, in view that it seems he was provided with figures that were false, or have they wiped out those profits in six weeks?

[markth126] 27/1/2017 09:52

Lots more recent talk on plastic recycling gathering interest.