Coral Products Share Discussion Threads

[monty burns] 22/8/2003 00:40

Well I did just bail out now - 10k still to show, 2 x 2500 showing.

Buy low, Sell high - hard to exit this, so selling into strength.

Putting the money into FFY, now much cheaper than it was a few days ago - seriously cheap.

[floppyhunter] 21/8/2003 11:45

i have been in this one for about 3 years and certainly not selling now :-)

[clocktower] 21/8/2003 11:22

I agree MB. I just thought you were in and out on this one as I do on others. like yourself some I just hold as its always a problem to get your timing spot on and can often find oneself unstuck looking for a better and safer home.

[monty burns] 20/8/2003 00:50

It goes ex-divi next week, quite a big one (2.3p) - probably causing the excitement timing-wise.

[monty burns] 19/8/2003 15:02

Nope, still got them - figure a rise with increased volume in trading is a reason to hold on.

Still cheap on fundamentals - just above NAV, yield around 5.6%, free cashflow vs market cap is high, low PE etc. None of this is new, but, dunno, just feel I'll hang on to them - they're in an ISA, and you've got to be holding something!

[clocktower] 19/8/2003 14:50

That looks like your 15k MB. Good luck

[upside] 19/8/2003 08:23

And it's still going, just reached 60p bid. I am intrigued by this sudden move up.

[humdinger] 19/8/2003 08:22

Another year gone and I think I must still be one of the few holders but I'm still happy. Have a feeling the rise is partly due to some buying for the XD next week (2.3p) so I expect it to fall back a bit. I hold far too many of these so may have to lighten the load though they are a brilliant income share - check out the divi rate for the past 5 years.

Anyone else hold this one?

(edit) - just remembered another reason I like this Company - CRU were suffering by not knowing what to do about the plant that makes the fast declining music CD cases. Some smart fella went and had a chat with Kodak and suggested they put peoples photos on a CD in a case made by you know who - clever :-)

[monty burns] 18/8/2003 21:12

Day off today, so only just noticed.

Tempted, sure - bet the person who sold 20k at 53 is a bit hacked off........

I dunno, I think i'll wait and see, very nice yield, prospects good, saw some press comment about cd sales growing at the weekend - volumes rather than margins, which is good for CRU.............

Or maybe it's just the half price Shiraz-Cabernet talking.

[clocktower] 18/8/2003 16:19

New recent highs..MB..not tempted?

[felix99] 06/8/2003 22:20

Don't forget video will now fal which will take some shine off the DVd.

I'm out for now. They had a quiet start and summer is quiet anyway so I think they will struggle to match first half last year.

Agm In September will make interesting reading me thinks.

[richard xi] 06/8/2003 09:46

The two year fall in profits reflect the drop in CD sales and CD boxes. The music industry in the UK is very frail at the moment and many people copy music on the web.

The increase this year is due to the huge growth in DVDs and DVD boxes. Now that DVD players and surround sound systems are very cheap this trend Should continue for several years.

[monty burns] 04/8/2003 17:17

I think it will - it certainly should.

Some thought provoking numbers plus a chart (lots of potential comments, I'm too lazy to make any........)





(FWIW there was a big rights issue in 1996, share dilution probably casued the fall.)

.......................EPS.............Ret'd Profit.............Net Assets



1997...................4.0..............235...........................6,802
1998...................4.3..............440...........................7,242
1999...................7.5..............975...........................8,217
2000...................8.8.............1,166..........................9,383
2001...................6.6...............697.........................10,136
2002...................4.0...............144.........................10,254
2003...................6.9...............734.........................10,845

[clocktower] 04/8/2003 15:02

Always nice to see someone nick in and out and come out with a small but neat profit every time MB. just hoped it was you, still time or do you think it will go higher?

[monty burns] 04/8/2003 14:09

It wasn't me!! Honest. Still the proud(ish) owner of 15,000 CRU shares.

Some other miserable so and so who got cold feet, it seems. Still 57 to buy, so could go either way.

[clocktower] 04/8/2003 13:54

Looks like you changed your mind.MB

[monty burns] 01/8/2003 10:29

I guess the question is whether it can push through the mid-50p barrier, or whether miserable gits like me will sell and keep the resistance in place ;-)

Think I'll hold on..........

[clocktower] 31/7/2003 11:55

Nice one MB

[monty burns] 08/7/2003 13:27

Yeah, but happy to sell at 54 and 53 (a week ago), buy back at 46.5 and 47.38 and wait for a while. Looks like it was the 10k sell at 43p that I bought.

But you're right, the MM activity on this stock is overly harsh.

[clocktower] 08/7/2003 13:24

Well done MB,

Just watch the greed side of the extra 5k MB. Good Luck

[felix99] 08/7/2003 13:19

Good luck but you got the MM's stacked against you. You try and shift the 15k at the 47 bid ????

Hopefully COral will buy your stock back if your lucky !

[monty burns] 08/7/2003 11:52

Down 8%+ ?

Never look a gift horse in the mouth - just bought my 10k back again, for 46.5.

Never had CRU down as a trading share.........

edit - and another 5,000 for 47 and a bit.

[felix99] 30/6/2003 18:14

This time of year is usually Quiet Monty. They probably said the same last year I beleive although I have not checked.

I suspect the volumes should become very decent for them again as soon as Harry Potter kicks in. ITs a warner title and I beleive Coral do Warner in a big way so I think yuo will find that however quiet the start the HP effect when it kicks in will make up the shortfall.

I expect it will be a Chrimbo release so they should be mega busy around September time or before depending how early the film companies push all the buttons. OH YES THE agm IS sEPTEMBER so that should help a positve statement at the time. If the AGM still says they are quiet then I agree getting out here would be no bad thing but I think you would be guessing - its like guessing the market top or bottom , wait to see how it unfolds for the trend to be confirmed and then jump on even if yuo miss the first 10% or so, better than risking in this case sellingout at 50p+ when it could go a lot higher. I think cashing a few in and running the rest would not be a bad strategy.

I also think there should be 2 other things putting a floor under the price right here. Firstly there will be a follwing who will keep picking up stock on the drops which I would suggest would now be 50p rather than 45p prior to results and also I would suggest COral may start to pick up loose stock again .

Now is the time of year for them to gain max advantage cos they can buy all they like before the AGM and effectively save paying out the divi which more tha covers the borrowing costs. They boughty at 50.5p last time was it so lets see if they are in the market again.

And we should also see tip updates from IC and share magazine I would expect this Thurs/ Friday so I certainly wouldn;t sell anymore till then.

Good luck - still holding mine for the longer term .Perhaps sell a few at 55p plus but not many

[monty burns] 30/6/2003 09:38

Then again........

Excellent results, but didn't like the slow start, the held divi nor particularly the further investment in plant - probably fair enough but I liked CRU as a cash generator for a couple of years, I have a concern that they may go too far investing in specific plant just as the market for the product changes.

So I sold 10k early, not showing yet, holding the rest (mainly 'cos I can't get a sensible quote for them......)

[night watch] 30/6/2003 09:12

Max
Good results & good Div could soon be £1.00 :-)

RNS Number:9131M
Coral Products PLC
30 June 2003





CORAL PRODUCTS PLC

2003 Preliminary Results



Coral Products plc, one of Europe's leading manufacturers and suppliers of media
packaging for Digital Versatile Disc (DVD), Video and CD, announces its final
results for year ended 30 April 2003.


Commenting upon the Company's trading Sir David Rowe-Ham Chairman of Coral said:


"Turnover for the year reflected the continuing demand for media packaging
products. Volume demand for video boxes remained strong whilst DVD case sales
improved significantly in line with growing support for this leisure and
commercial product "


Summary Results (unaudited)
Year ended Year
30 April ended
2003 30 April
2002 % change

Turnover #20.0m #16.4m +22 %
Pre-tax profits #2.0m #1.2m +62 %
Fully diluted earnings per share 6.89p 4.03p +71 %
Total dividend 3.35p 3.35p same


* Further growth in DVD sales as the market expands and advances
strongly.

*Two further DVD lines have been installed and an additional line is being
introduced this year.
*A new range of photo-finishing boxes has commenced and is running
satisfactorily.
*Cash flow and balance sheet remain strong as the company continues to
invest in developing and maintaining its position.


Regarding prospects for the current year, Sir David added:


"Trading in the new financial year has started slowly, however we are confident
in the year ahead of maintaining and improving our position as a market leader
in the media packaging industry."


Enquiries:

Coral Products plc Tel: [phone]
Warren Ferster, Managing Director Mobile: [phone]
Stephen Fletcher, Finance Director Mobile: [phone]

Williams de Broe plc Tel: [phone]
David Lawman Tel: [phone]



CHAIRMAN'S STATEMENT


Turnover for the year ended 30 April 2003 amounted to #20.0 million compared
with #16.4 million last year and profit before tax for the same period was #2.0
million compared with #1.2 million, an increase of 62%. Diluted earnings per
share totalled 6.89p (2002: 4.03p), an increase of 71%, with shareholders' funds
at 30 April 2003 increasing to #10.8 million (2002: #10.3 million), namely 53p
per share (2002: 50p).


Dividend

Your directors are recommending a maintained final dividend of 2.3p per ordinary

share (2002: 2.3p) to be paid on 22 September 2003 to all shareholders on the
register on 22 August 2003. This, together with the interim dividend of 1.05p
per ordinary share already paid, makes a total dividend for the year of 3.35p
(2002: 3.35p). During the year 400,000 1p ordinary shares were bought back by
the company reducing the share capital to a net figure of 20,299,125 shares
(2002: 20,562,781 shares).


Trading

These results have been enhanced by an increased turnover for the year
reflecting the continuing demand for our media packaging products,
notwithstanding the reduced sales of CD cases. Volume demand for video boxes
remained strong whilst DVD case sales improved significantly in line with the
growing support for this leisure and commercial product.

Prospects

Trading in the new financial year has started slowly, however we are confident
in the year ahead of maintaining and improving our position as a market leader
in our sector of the media packaging industry.


Both cash flow and the balance sheet remain strong as we continue to invest in
developing and maintaining our productive capacity.



Sir David Rowe-Ham


Chairman


30 June 2003


MANAGING DIRECTOR'S REVIEW OF OPERATIONS


The year to April 2003 showed a considerable improvement in trading. Overall
turnover increased by 22% to #20 million and this led to a 62% increase in
trading profit to #2 million.

Our turnover was mainly related to media packaging products with the addition
this year of a range of photo-finishing boxes.

Whilst demand for video boxes continued to provide the core business, there has
been a marked switch of format to DVD and our high capital investment in
increasing production lines has enabled us to take full advantage of this move.
DVD sales, which have increased by 150% in the past twelve months, now represent
25% of our total sales and this is expected to increase.

CD case sales disappoint in line with overall market trends in the music
industry, and whilst they still represent a substantial part of our turnover,
their net contribution is below expectation.

As stated previously the production of photo-finishing boxes has made a positive
contribution to sales and this business should increase during the current year.

Housewares sales were of negligible value during the year, but we continue to
maintain and service our customer base.

During the year we have invested in two new DVD case lines at a total cost of #2
million and a further amount of #1 million is currently being spent on the
installation of a further DVD case production line. This expenditure will enable
us to increase our manufacturing capacity of DVD cases by over 100%. Last year's
official European total DVD growth was 20% and DVD is now classed as the fastest
growing home entertainment product.

I am confident of continuing growth in DVD turnover in the coming year together
with strong demand for video boxes. The fulfilment of the photographic contract
is particularly pleasing bringing a diversification of our product range at a
time when I anticipate CD demand will remain depressed.


I must express my gratitude to all members of staff and management for their
hard work during the year ensuring we continue to perform at optimum levels in
what remains a highly competitive trading environment.



Warren Ferster


Managing Director


30 June 2003














On the 30th June 2003, the directors of Coral Products plc approved the
following statements of the unaudited preliminary results of the company for the
financial year ended 30 April 2003.

Profit and Loss Account

For the year ended 30 April 2003

2003 2002

(unaudited) (audited)

#'000 #'000
--------- -----------

Continuing operations

Turnover 20,004 16,371

Cost of sales (13,353) (10,976)
-------- --------

Gross Profit 6,651 5,395

Distribution costs (727) (628)

Administrative expenses (3,730) (3,307)
-------- --------

Operating profit 2,194 1,460

Interest receivable 2 4

Interest payable (194) (231)
-------- --------

Profit on ordinary activities before taxation 2,002 1,233

Tax on profit on ordinary activities (586) (399)
-------- --------

Profit on ordinary activities after taxation 1,416 834

Dividends (682) (690)
-------- --------

Retained profit for the financial year 734 144
-------- --------

Basic earnings per ordinary share 6.91p 4.04p

Diluted earnings per share 6.89p 4.03p
-------- --------



The Company has no recognised gains and losses other than the profits above and
therefore no separate statement of total recognised gains and losses has been
presented.


Reconciliation of Movements in Equity Shareholders' Funds

For the year ended 30 April 2003


2003 2002

(unaudited) (audited)

#'000 #'000
-------- --------

Profit for the financial year 1,416 834

Dividends (682) (690)
-------- --------

Net additions to equity shareholders' funds 734 144

Proceeds of shares issued 39 -

Purchase of own shares (182) (26)
-------- --------

591 118
-------- --------

Equity shareholders' funds at beginning of year 10,254 10,136
-------- --------

Equity shareholders' funds at end of the year 10,845 10,254
-------- --------




Balance Sheet

At 30 April 2003

2003 2002

(unaudited) (audited)

#'000 #'000
--------- ---------

Fixed assets

Tangible assets 13,951 12,533
---------- ----------

Current assets

Stocks 2,258 2,048

Debtors 4,553 4,781

Cash at bank and in hand 433 84
---------- ----------

7,244 6,913

Creditors: amount falling due within one year (7,365) (6,465)
---------- ----------

Net current (liabilities)/assets (121) 448
---------- ----------

Total assets less current liabilities 13,830 12,981

Creditors: amounts falling due after more than one (1,430) (1,345)
year

Provisions for liabilities and charges (1,555) (1,382)
---------- ----------

Net assets 10,845 10,254
---------- -----------

Capital and reserves

Called up share capital 203 205

Share premium account 4,534 4,497

Capital Redemption reserve 5 1

Profit and loss account 6,103 5,551
---------- ----------

Equity shareholders' funds 10,845 10,254
---------- ----------


Cash Flow Statement

For the year ended 30 April 2003

2003 2002

(unaudited) (audited)

#'000 #'000
--------- ---------

Net cash inflow from operating activities 5,256 2,915
--------- ---------

Return on investments and servicing of finance

Interest received 2 4

Interest paid (69) (62)

Interest paid on finance leases (125) (173)
-------- ---------

(192) (231)
-------- ---------

Taxation (97) (349)
-------- ---------

Capital expenditure and financial investment

Purchase of tangible fixed assets (3,392) (1,918)

Sale of tangible fixed assets 18 52
--------- ---------

(3,374) (1,866)
--------- ----------

Equity dividends paid (688) (692)
--------- ---------

Net cash inflow / (outflow) before financing 905 (223)
--------- ---------

Financing

Issue of Share Capital 39 -

Repurchase of Share Capital (182) (26)

Repayments of principal under finance leases (1,731) (1,758)

Proceeds of sale and leaseback 1,590 1,539

Repayment of loans (153) (248)

Proceeds of new loans - 286
--------- ---------

(437) (207)
--------- ---------

Increase / (decrease) in cash 468 (430)
--------- ---------


Other Financial Statements

For the year ended 30 April 2003

Reconciliation of Operating Profit to Net Cash Inflow from Operating
Activities

2003 2002

(unaudited) (audited)

#'000 #'000
--------- ---------

Operating Profit 2,194 1,460

Depreciation on tangible fixed assets 1,953 1,793

Loss on disposal of tangible fixed assets 3 14

Release of grant income (1) (1)

(Increase) in stocks (210) (155)

(Increase)/decrease in trade debtors (56) 493

Decrease in other debtors, prepayments and accrued 175 143
income

Increase/(decrease) in trade creditors 923 (1,032)

Increase in other taxation and social security 82 87
creditors

Increase in accruals and deferred income 86 86

Increase in other creditors 107 27
-------- --------

Net cash inflow from operating activities 5,256 2,915
-------- --------



Reconciliation of Net Cash Flow to Movement in Net Debt

2003 2002

(unaudited) (audited)

#'000 #'000
--------- ---------

Increase/(decrease) in cash in the year 468 (430)

Net cash outflow from debt and lease financing 294 181
-------- --------

Change in net debt resulting from cashflows 762 (249)
-------- --------

Net debt at 1 May 2002 (3,284) (3,035)
---------- ----------

Net debt at 30 April 2003 (2,522) (3,284)
--------- ---------


Notes


1. Financial Statements


The preliminary results for the year ended 30 April 2003 are unaudited, with the
audit report on the full accounts yet to be signed.

The preliminary results for the year ended 30 April 2003 have been prepared on
the basis of accounting policies set out in the Report and Accounts for the year
ended 30 April 2002.

The comparative figures for the year ended 30 April 2002 do not constitute
statutory accounts. These figures have been extracted from the audited accounts
for that year which have been delivered to the Registrar of Companies and on
which the auditors issued an unqualified report which did not contain a
statement under either Section 237(2) or (3) of the Companies Act 1985.

The aforementioned financial information does not amount to full statutory
accounts within the meaning of Section 240 of the Companies Act 1985 (as
amended).


2. Dividends


A final dividend of 2.3p net is recommended by the directors to be payable on 24
September 2003 to all shareholders on the register on 29 August 2003.


3. Earnings per Ordinary Share


The calculation of earnings per share is based on the profit on ordinary
activities after taxation namely #1,416,000 (2002: #834,000) and on 20,498,000
(2002: 20,625,000) ordinary shares.


Diluted earnings per share is based on the same earnings and on the weighted
average number of ordinary shares of 20,542,000 (2002: 20,680,000).


4. Annual Report and Accounts


The Annual Report and Accounts will be posted to shareholders before 20 August
2003. Copies will be available by writing to the Company Secretary, Coral
Products plc, North Florida Rd, Haydock Industrial Estate, Haydock, Merseyside
WA11 9TP. (e-mail [e-mail]).

These Reports may also be downloaded or viewed through our web-site at
www.coralproducts.com.


5. Annual General Meeting


The Annual General Meeting will be held at the Midland Crowne Plaza Hotel,
Manchester, on Friday 19 September 2003 at 12.00 noon.






This information is provided by RNS
The company news service from the London Stock Exchange

END
FR UBUBRORRNUAR