Coral Products Share Discussion Threads

[clocktower] 21/9/2019 08:57

No poster has even confirmed they will be attending next week, so the likelihood of there being any more than quorum is pretty remote, let alone being in a position to vote for changes.

There are to few small private investors to have any effect or be able to get the backing of the larger holders to call an EGM to remove JG.

So it’s a case on getting on your 🚲

[charo] 20/9/2019 22:37

The CEO ,if any good,runs the business,period.The chairman runs the board and only if CEO loses confidence of board can chairman exercise power to remove.
I over my career as CEO have removed a number of chairmen,with backing of the board.
Founders tend to be the worst when in chair and with large shareholdings and crony board members try to run the business as well as board.JG only has around 5% of shares and board of 5.Hardly a position of great strength.
If board has no confidence in chairman then they can easily remove,as can shareholders.AGM next week maybe someone should ask question of directors.

[base7] 20/9/2019 20:45

I agree Atholl91-JG has pulled the strings since he arrived & my view is that Mick Woods certainly reports to him.He owns a decent % of the issued capital & therefore has a vested interest in securing a decent exit for himself.I am not sure how 'easy' it would be to replace himself with a paid Non Exec Chairman with decent credentials as the reward in offer would be unlikely to compensate them fir the risk of failure & therefore substantial loss if reputation .Our best bet,in my opinion,is that if we avoid the annual disaster this year,& can demonstrate improving revenue,profitability & cashflow,our share price may start to recover & ,if that scenario does prevail,JG should take the opportunity to dispose of the company to a larger well mamnaged company ,thereby giving himself ,& the rest of us,an honourable exit.Lack of any Director/PDMR buying following Results is disappointing.

[atholl91] 20/9/2019 20:30

Charo,I disagree with you. The Chairman leads the business. If its failing he must be ultimately responsible as he appoints the Management with advice from the Board. The buck stops with him. Grimmond has failed to lead this business properly. He must be removed. Now. They shoot horses don't they?

[charo] 20/9/2019 20:03

Appears to athol that CEO FD and all operations management work to the instructions of a non exec who with others appointed well qualified management and gave them support including financial support .
I have been CEO in various situations and never blamed my chairman when things went wrong. Invariably chairman only reviewed my strategy and if persuaded by it supported me till the end.
If I failed it was down to me.over 35 years I was never sacked and never asked for resignation though came close at times.

[charo] 20/9/2019 19:50

Again he does not lead company.
With internet and mobiles who needs be in one location.Woold he be haydock ,Manchester London. Who or what is MACF.

[atholl91] 20/9/2019 18:23

Charo, I am not a money mover - I founded & chaired a FTSE 250 manufacturing company returning double figure annual returns for my shareholders for over 20 years. The CEO reports to the Chairman. He is the boss. Grimmond has failed miserably in the past three years to deliver anything other than poor results & the share price shows that with no support. He epitomises everything that's wrong about business in the UK. What example is it to lead a company whilst sitting in Spain unable to return to the UK for more than 90 days a year to avoid tax. If it wasn't tax why is he not here for more than 90days. That's why he should go & go now along with the other non-exec who is also a tax non-res man. Clean out the stables.

[clocktower] 20/9/2019 18:02

To be fair JG is getting on and has made his fair share of errors in appointing the previous CEO and getting into the Auto business.

It might be good for all if this were taken over by MACF whom has been on an acquisition quest for some time, even if it was an all share deal.

[charo] 20/9/2019 17:18

Atholl surely the ceo is the leader and has been for over two years.
JG appointed a highly regarded industry exec and stepped aside with a very strong half year in 2017.Having stepped in to restore stability and profitability after a disastrous short term ceo resigned????
Why is JG your fall guy ?

[clocktower] 20/9/2019 13:36

That was timing for you atholl91 - both posts timed at 13.23 but you beat me by a fraction. :-)

[clocktower] 20/9/2019 13:23

Seller still unloading by the looks of the trades but at least there seems to be a reasonable amount of support.

Nobody booked to go on the factory tour?

[atholl91] 20/9/2019 13:23

I said a year ago that until Grimmond is removed this is a single figure stock. And how right I am sadly as a long suffering significant shareholder. No institutions support this stock & the leader has no credibility & must go. Period.

[clocktower] 18/9/2019 14:35

Even though there has been a decent buy today, we continue to see the share price slide, so I guess there must be a very large seller unloading, and a delayed deal that has yet to be recorded.

With the lack of news about new contracts or buying from JG it does not look good ahead of the AGM

[clocktower] 16/9/2019 16:24

Anyone going to the factory visit 25.09.19?

"a business our investment is evident.

However we believe first hand experience is the best way to see the time, and hard work that is developing within our sites.

Our focus is creating opportunity, being a leader in our field, and creating positivity in plastic by utilising our circular economic business strategy, and closing the loop for ourselves and our customers.

With this in mind, we would like to invite those interested in seeing the development and growth of our business to our site based in Haydock.

This will give opportunity to have a tour of the site, our processes, and recycling plant, have open discussion with Coral Products PLC’s CEO Mick Wood, Finance Director Sharon Gramauskas and Coral Products (Mouldings) Ltd MD Neil Ashurst."

[clocktower] 16/9/2019 14:39

There seems to be someone trying to sell stock. Any rise in Oil prices will not help I guess but at lease the new re-cycling plant will mitigate that.

Time they started to inform the market about new contracts, as they have been showing at numerous exhibitions for a while now but nothing big to show for it, it would appear or we would have seen a RNS I asssume.

No buying from JG or the BoD either. Not the nest of signs, is it.

[clocktower] 12/9/2019 12:07

Anyone attended the RWM show as Coral are showing but on the video it does not seem to show the new MBRS Bin on the video of the stand, which if not there is a missed opportunity.

Anyone been and any comments?

[charo] 03/9/2019 09:11

Synnovia valuation makes coral look very attractive.

[clocktower] 01/9/2019 13:07

Interesting artices t.i.m thanks for the links

[this_is_me] 31/8/2019 15:30

From the American Institute for Economic Research:

[charo] 29/8/2019 07:28

Dyer.Interpack very profitable 5 years
Tatra 4 years gop 2 years alk since acq all under jg.
Blow moulding not separately disclosed but around 2 mill sales per year at say gp 25% payback 1 year.
How can you not accept without these Coral would be dead.The problem is who is leading

[aleman] 28/8/2019 16:19

valuschmalu - I expressed concern about debt at the AGM last year in the form of a question about cashflow going to dividends or debt reduction. The assumption seemed to be that the company was growing and profitability would rebound to the extent that debt should be comfortable at year-end, with debt to EBITDA possibly heading towards 2. Unfortunately, 4 months of sudden losses seem to have kyboshed that. (EBITDA still rose from £2.1m to 2.5m.) The outlook does look more promising now. With turnover and margins looking likely to be up for H1, and the possibility of some reversal of stockbuilding, debt/EBITDA looks likely to be a much improved figure soon. Of course, this company's business has a history of lumpiness and market change ... and then there's Brexit. I think H1 might look decent and then we'll have to keep fingers crossed.

[valuschmalu] 27/8/2019 21:59

I know its been said a lot of times but they need to focus on getting debt down to a sensible level. Assume (and this might be optimistic) 'base case EBITDA' of £2.5mn then for a company that has suffered from significant earnings volatility, the debt multiple should not be greater than 2.5x so £6.25mn. In order to get there, they need to get a grip on capex so that we have a year where it doesnt exceed depreciation charge Eg if can spend £1mn on capex, release £0.5mn from working capital and suspend divi for a year then debt will be down to a more sensible level by the time divis are resumed. That would give it a buffer should it be hit by adverse trading conditions. At the moment, there is no buffer if things go south.

As for acquisitions, apart from Interpack I wouldnt say they've covered themselves in glory. I would get rid of the corporate development director and forget about acquisitions for time being. That would save £100k in salary costs at least. This is the first year I think they have broken down earnings at the subsidiary level and apart from Interpack it doesnt look good. They focus on acquisitions and take their eye off Mouldings Ltd. Focus on Mouldings Ltd and then acquisition performance suffers.

All IMHO

[base7] 27/8/2019 17:52

Lots of stale bulls & business vendors who took some equity in CRU ,who either need the money or have just given up waiting any longer

[clocktower] 27/8/2019 16:30

Clearly JG is not yet willing to put his hands deep in his pocket or the CEO, as today`s sell has sent the share price back where it was before the results.

[clocktower] 23/8/2019 15:05

85k buy - Could it be the CEO or CFO as I guess JG would have bought more if he was in the market, as 85k would hardly be a show of faith if its JG imo.

Maybe a RNS next week, and more buying.