Coral Products Share Discussion Threads

[likitorma] 26/3/2019 07:30

Oh my god, oh my god, oh my god
Massive profit warning.

[bishan bedi] 26/3/2019 07:13

I should say something about scousers making excuses all the time at this point...

[curtain twitcher] 26/3/2019 04:25

Adrian Waine : Industrial Photographer
‏

@WaineAdrian
Follow Follow @WaineAdrian
More
The new recycling plant for plastics at Coral Products at Haydock is now open. I covered the opening and have since photographed the plant. You'll be seeing it here very soon. Waste plastics are still on the WANTED list please. #MiBHour

[aleman] 24/3/2019 16:47

International expansion could be Ireland, perhaps? £10bn+ online sales market versus UK's £70bn. Would be small (not too demanding?) market and fairly local but give a good insight into what might be needed for the rest of Europe. CRU might be able to service from existing UK factories while the ultimate necessity for an EU acquisition was considered? It's just a guess on my part if totes drive the business but the company will have other products and markets to consider.

I would not worry about it too much just yet. I think a stable year with higher turnover and margins would be nice to see first.

[charo] 23/3/2019 12:30

Argument holds good for mainland Europe but doubt for north America.
Still that leaves a lot of totes to be made.

[charo] 23/3/2019 11:20

Argument holds good for mainland Europe but doubt for north America.
Still that leaves a lot of totes to be made.

[curtain twitcher] 23/3/2019 10:26

That's what I thought base7, until I read this

30 November 2018

The group is continuing to be active in the supply of Tote boxes and new orders
are being won. These are used by on-line distributors, which is a fast-growing market and international expansion is being considered.

[base7] 23/3/2019 09:49

Great news for Ocado but for the same reason that air filled totes aren t imported from China it is very unlikely that we will be exporting totes to Washington.There will be plenty of low cost US suppliers quoting for Totes.

[curtain twitcher] 23/3/2019 06:31

Coral totes going to USA and Canada?


01/04/2016

Gervais: Yes. I think the main driver is you’ve got to be in companies which are going to invest capital for commercial payback, so this is productivity. It can be manufacturers. So take, for example, Coral Products, which is a tiny company, about 20 million market cap. It does plastic products, injection mouldings; some of those Ocado big crates they carry around. Those kind of things don’t come from China. They’re too weighty. They’ve got too much air in them. They can just make them locally, so they make those kinds of things.



30 November 2018

The group is continuing to be active in the supply of Tote boxes and new orders
are being won. These are used by on-line distributors, which is a fast-growing market and international expansion is being considered.




18 March 2019

Ocado is set to open its first American office as the online grocer ramps up its technology partnerships in the USA and Canada.

The online grocer’s Solutions business, which licenses its proprietary technology to third-party retailers, plans to open a permanent base in the Washington DC area.

Ocado said it will open a temporary hub in Tysons, Virginia, while it looks for a permanent office.

The Washington DC location will place Ocado’s central teams equidistant between its major partners Kroger in the USA and Sobeys in Canada.

The online grocer said the new office “will be vital in coordinating the delivery of Ocado’s technology, as well as support and engineering services to sites across North America”.

Retail Week understands the majority of staff at the new office will be hired by Ocado in the USA and the number of UK-based staff being transferred across would be negligible.

Ocado Solutions boss Luke Jensen said: “I am delighted that we are bringing Ocado to Washington DC. The new office will give us a direct presence in North America from which to oversee the delivery of our innovative partnerships with Kroger and Sobeys.

“We selected the DC area for its great connections to cities across the USA and Canada, as well as for its strong technology and engineering talent pools.

“From this office, we will also coordinate the recruitment and training of hundreds of highly skilled technologists and engineers across North America. We look forward to welcoming this new talent to support the relentless pursuit of innovation at the core of Ocado’s mission.”

Ocado rocketed into the FTSE 100 after striking a landmark partnership with Kroger in May 2018, giving the grocery giant exclusive use of its automated solutions in the US. Ocado will build 20 customer fulfilment centres across the country over the next few years.

The tech supplier is also in the process of constructing Sobeys’ first automated warehouse in the Greater Toronto area, kick-starting the partnership they penned last January.





20 MARCH 2019

Kroger to open second customer fulfilment centre in Groveland, Florida

US retailer Kroger has selected Groveland, Lake County, Florida, to establish its second customer fulfilment centre (CFC) in collaboration with UK online supermarket Ocado.

The new CFC is part of the retailer’s service and operational agreement, signed in October last year, with Ocado to develop 20 CFCs over three years.

Kroger will start the construction of the CFC at US Highway 27 and American Way in a 375,000ft2 of space later this year.

The facility is expected to be operational in 2021 and will use innovative robotics technology to offer automated storage and retrieval services to customers across America.

Kroger business development senior vice president Alex Tosolini said: “Kroger is incredibly excited to construct one of our industry-leading Customer Fulfillment Centers in Groveland, Florida – a city west of Orlando – through our relationship with Ocado.

“Through our strategic partnership, we are leveraging advanced robotics technology and creative solutions to redefine the customer experience across America.”

The new technology venture is expected to create more than 400 jobs to local and regional skilled workforce, according to the Lake County board of county commissioners chair Leslie Campione.

Kroger also announced that it will invest around £90m for the first three CFCs and more than £500m for the remaining centres through funding arrangements.

The retailer announced, in November last year, that it is investing $55m to establish the first CFC in Monroe, Ohio, which will feature digital and robotic capabilities and announced last month plans to establish two new CFCs in Central Florida and Mid-Atlantic.

[curtain twitcher] 17/3/2019 07:39

Aleman, Here is a section from the Government
Press release


Government sets out plans to overhaul waste system
The government launches a series of consultations to overhaul the waste system.

Published 18 February 2019

Government launches consultations to overhaul the waste system, cut plastic pollution, and move towards a more circular economy.
Packaging producers set to pay the full cost of dealing with their waste, more consistent household recycling, and a Deposit Return Scheme for cans and bottles, subject to consultation.
Consultation also launched for a world-leading tax on plastic packaging which does not meet a minimum threshold of at least 30% recycled content.
New analysis published today shows the net benefit to UK economy of the changes will run into millions.
Plans for a major overhaul of the country’s waste system have been set out in a suite of consultations launched today by Environment Secretary Michael Gove.
Building on commitments made in the government’s landmark Resources and Waste Strategy published in December, the consultations provide detail on plans to make packaging producers pay the full cost of dealing with their waste and to introduce a consistent set of materials collected across England from households for recycling, and bringing in a Deposit Return Scheme (DRS) for cans and bottles, subject to consultation.

The changes will make up a key part of the government’s upcoming Environment Bill, to be introduced early in the second session of Parliament.

As well as making businesses and manufacturers pay the full cost of recycling or disposing of their packaging waste, householders will see the existing complicated recycling system simplified. A consultation has launched today on a consistent set of recyclable materials collected from all households and businesses, and consistent labelling on packaging so consumers know what they can recycle.

These will include separate weekly food waste collections for every household in England and could include free garden waste collections for households with gardens. Having comprehensive and frequent collections will ensure more reliable services for householders while retaining local flexibility.

The government is also seeking views on introducing a Deposit Return Scheme for cans and bottles, subject to consultation, alongside setting out two potential models – ‘all-in’ or ‘on-the-go’. This could drive up the recycling of an estimated three billion plastic bottles which are currently incinerated, sent to landfill or left to pollute our streets, countryside and marine environment.

On the same day, government has also launched its consultation on introducing a world-leading tax on plastic packaging which does not meet a minimum threshold of at least 30% recycled content, subject to consultation, from April 2022. This will address the current issue of it often being cheaper to use new, non-recycled plastic material despite its greater environmental impact.




Mick Wood (see post 1075)

“This is an exciting time for us, in the evolution of our business; this is the type of thing which is going to push us forward. Recycling is on everybody’s tongue, and also in legislation coming in as well.

“We believe this will give us a great strong hand on a lot of our competitors, and it also will allow us to adhere to the 30% minimum recycled content in all of our products, which is important.

[aleman] 16/3/2019 15:06

Thanks, Curtain Twitcher.

It actually looks a rather smaller and simpler bit of kit than I was expecting.

A mimimum of 30% recycled material in ALL products is higher than I would have guessed at. Good.

[curtain twitcher] 15/3/2019 18:22

A bit more meat, with slide show at the bottom of the page

15 MARCH 2019 by Joshua Doherty

Coral Products opens recycling facility at Haydock

Coral Products (Mouldings) Ltd saw its newly-built plastic container recycling facility at Haydock officially opened in mid-March, allowing the Merseyside-based company to reprocess used polypropylene boxes and use the pellets for new products.

A supplier of recycling boxes and food waste bins to local authorities, Coral Products says the new machine at its Haydock facility in Merseyside means that it can now pay its customers directly – or as money off the next order – for old containers.

The investment in the new plant was announced last year (see letsrecycle.com story), and it is believed that it will help to create a demand for used waste containers to be turned into new products.

Process

The process sees the feedstock placed onto a conveyor belt, where it is loaded into a Renmar Plastics shredder, before moving to an Engin Plas granulator, and then being cleaned and rinsed in a RotaJet system before being deposited into a bag, where the pellets can be injected into a moulding machine.

This is then used to create new products at the adjacent facility, providing a cheaper option than using virgin materials.

HDPE
As well as its own bins, the company says its machine, which can process one tonne per hour, can take other polypropylene and HDPE. For example wheelie bins, any product may be considered by the recycling plant manager that is PP or HDPE based, providing the material can be used in its new products.

Speaking to letsrecycle.com at the launch event yesterday, Mick Wood, chief executive of the company, said: “We will take bins UK-wide, and we already have bins from committed councils, and some other providers, in polypropylene and HDPE.”

He added: “This is an exciting time for us, in the evolution of our business; this is the type of thing which is going to push us forward. Recycling is on everybody’s tongue, and also in legislation coming in as well.

“We believe this will give us a great strong hand on a lot of our competitors, and it also will allow us to adhere to the 30% minimum recycled content in all of our products, which is important.

Honour
Cllr Lynn Clarke, cabinet member at St Helens council officially opened the facility, and added: “It is an honour to be here today to open the facility, which is inspirational, and you can not be anything but enthused when you go around and see what is happening here. We are so proud to have them as a company in St Helens and we would like to thank them personally for their contribution to the region.”

[clocktower] 14/3/2019 18:33

I guess the price being paid would maybe only cover the delivery costs to the plant. I suspect it is the only way to ensure there is enough raw material to keep the plant busy.
In view that they can produce so much per hour the may also be able to sell surplus granulated material.

As regards your figures, I do not think they are far off the mark and may even be exceeded imo.

[aleman] 14/3/2019 12:55

Thanks, clocktower.

Hhhhmm... I guessed at a couple of shifts per week of free waste. That might still be valid. It says in that article that they are buying in waste. (No excuses about cost for anyone not recycling if they get paid!) It's lower margin but that is still good. It suggests higher volume and still saving on buying prime polypropylene, though goodness knows how to guess at THAT margin without knowing the offer for old totes. Anyway, with more shift runs per week but at a lower margin, perhaps they can push my GUESS at savings of £200-300k per year up to £400k per year on 4 or 5 shifts per week producing 25-30 tonnes. Daniel Stewart did say contribution to profit in 2019-2020 could be significant in their last note. An uplift in EBITDA of 10% or so would fit the bill. A new forecast would have been nice but it's probably too early to see what level production settles down at after an initial surge of interest, and what average price is paid. It's possible we might see a new note in a month or two when things become clearer. With recycling leverage to push UK tote sales, the market for which is expanding with online sales, and with the move to try sell to online sellers abroad and the extra margin from the recycling plant, I'll be optimistic and guess at EBITDA of £4.0m for 2019-2020, Brexit permitting. It makes a market cap under £10m look very cautious. Maybe, I'm too optimistic. 1p dividend if EBITDA rises next year?

[base7] 13/3/2019 09:26

I could,of course, have bought 220k shares earlier this morning ( not sold).
Unless any larger holders are looking to sell (although I am not sure why they would as we may ,at last,have reached a turning point)the free float is onlikely likely to be 15-20 million

[clocktower] 13/3/2019 09:26

base7 - your post 1067 about sells online when you go on to say your dummy run would only take 15k then say you could sell up to 220k at a small premium (should you have said buy 220k at a small premium)?

[aleman] 13/3/2019 09:06

The question is how many hours the machine can run and how much recycled material can go into new product while meeting quality standards. A couple of shifts per week might be 12 tonnes or about £8k margin at my guess, so about £350k per year, assuming some downtime for holidays and maintenance. There could be extra handling and cleaning costs to consider. I'd guess it might add £200-300k of margin next year to EBITDA expected at £3.4m this year. Basically, margin sees a slight boost but orders will still drive next year's numbers. The recycling is likely to help the marketing team, given so much emphasis on reducing plastic waste in the media recently, and the fact we might be able to shave some prices. If we can turn improved efficiency into higher orders, we should do very well.

[base7] 13/3/2019 08:41

Definitely not a traders stock & our share price will be led by events & it will take increased profits,cashflow & dividends to move our share price
Dummy online sell this am would only take 15k shares whereas I could sell up to 220k online at only a small premium -suggesting that there remains a seller in The Market ,currently .If all continues to go well & if we could make £700 net per hour from recycling our share price shoukd be much higher later this year

[clocktower] 13/3/2019 08:27

The figures will shout for themselves - this is not a traders share but a solid investor business that provides dividends with a share price that has seen ups and down but is now once again likely to see it recover to above it previous highs over the next 18 months imo.

I expect to hear news of contracts going forward that will no doubt impact the share price positively.

[this_is_me] 13/3/2019 08:11

Don't forget the saving in landfill costs and the Brownie points for the green credentials.

[likitorma] 13/3/2019 08:06

Aleman, if that were the case, they would be shouting about the numbers from the roof. Instead, we have been left to guess.