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CRU Coral Products Plc

10.70
-0.05 (-0.47%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Coral Products Plc LSE:CRU London Ordinary Share GB0002235736 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.05 -0.47% 10.70 10.40 11.00 10.75 10.50 10.75 107,017 16:11:27
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Plastics Products, Nec 35.22M 1.26M 0.0141 7.59 9.54M

Coral Products PLC Half yearly report six months ended 31 Oct 2021 (8530T)

29/11/2021 7:55am

UK Regulatory


Coral Products (LSE:CRU)
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TIDMCRU

RNS Number : 8530T

Coral Products PLC

29 November 2021

CORAL PRODUCTS PLC

("Coral" or the "Group")

HALF YEARLY REPORT

Coral Products plc, a specialist in the design, manufacture and supply of plastic products, is pleased to report its half yearly report for the six months ended 31 October 2021.

 
 Financial headlines                                              Six months 
                                                Six months                to 
                                                        to        31 October 
                                                31 October              2020 
                                                      2021          restated   % change 
 
 Group sales                                GBP7.1 million    GBP4.5 million      57.8% 
 Gross profit                               GBP2.5 million    GBP1.7 million      47.1% 
 Gross profit margin                                 35.7%             38.0%      -6.1% 
 Underlying operating profit (excluding 
  finance expenses)*                            GBP759,000        GBP563,000      34.8% 
 Reported profit before taxation                GBP510,000       GBP 286,000      78.3% 
 Underlying EBITDA*                           GBP1,014,000        GBP771,000      31.5% 
 Underlying basic earnings per 
  share*                                             0.81p             0.60p      35.0% 
 Interim dividend per share                          0.50p             0.50p 
 

*The financial headlines disclosed as underlying represent the reported metrics excluding separately disclosed items (being share based payment charges, amortisation of intangible assets and other one-off costs in each period), see note 7.

Operational and financial highlights

   -           Strong net assets position has been maintained. 
   -           Interim dividend of 0.5p declared. 

- Cash and cash equivalents of GBP5.5m (2020: GBP1.3m). Cash and cash equivalents are defined as cash of GBP4.8m (2020: GBP1.3m) plus treasury shares of GBP0.7m (2020: GBPnil). The cash receipt from the sale of the Haydock property of GBP3.5m will be recognised in the second half of the financial year.

- The first half of the year has seen an increase in revenue and profit, despite the on-going impact of Covid-19, Brexit, the China-USA trading challenges, volatile currency fluctuations and variable trading conditions.

- Ensuring that the business is Covid-19 secure for employees and visitors is paramount. As a critical supplier the Group continued to operate under strict Covid-19 Government guidelines.

- The newly developed extruded fire retardant click & fix product is expected to positively impact the business in the final quarter of this year.

- The sale of the land and building at Haydock completed on 19 November 2021 with the gain of approximately GBP0.9m being accounted for in the annual results to 30 April 2022.

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

" I am delighted with the performance of the business in the first half of the financial year. I am pleased to report that the results to date are well ahead of the same period last year, in spite of the prevailing uncertainties of Brexit and the Covid-19 pandemic. With our enhanced cash position arising from the sale of the Haydock property which completed on 19 November 2021 for GBP3.5m, we remain confident of the Group's future prospects ".

Enquiries

 
 Coral Products plc                             Tel: 07703 518 
  Joe Grimmond, Executive Chairman               148 
 Nominated Adviser & Broker 
  WH Ireland Advisers LLP                         Tel: 020 7220 
  Adrian Hadden, Darshan Patel, Megan Liddell     1751 
 
 Capital Markets Consultants Limited            Tel: 07515 587 
  Richard Pearson                                184 
 

Chairman's Statement

Results and Financial Position

Trading in the first half of the current year shows revenue substantially ahead of the same period for last year, with gross profit % decreasing slightly as a consequence of higher than usual transport and raw material costs. Reported revenue was GBP7,103,000 (six months to 31 October 2020: GBP4,531,000), gross margins were 35.7% (2020: 38.0%) resulting in a gross profit of GBP2,534,000 (2020: GBP1,720,000) in the six months to 31 October 2021. Underlying EBITDA was GBP1,014,000 (2020: GBP771,000). Underlying operating profits increased to GBP759,000 (2020: GBP563,000).

Separately disclosed expenses of GBP188,000 (2020: GBP208,000) comprised the amortisation of intangibles acquired on acquisition, share based payment charges over employee options and redundancy costs.

Finance costs dropped slightly to GBP61,000 (2020: GBP69,000).

Profit before tax after including all the above items was GBP510,000 (2020: GBP286,000).

The balance sheet net asset position remains strong at GBP12,376,000, net of GBP693,000 treasury shares (2020: GBP12,645,000). This represents a solid asset platform for developing the business.

The Group has cash and cash equivalents of GBP5,473,000 (2020: GBP1,292,000) which includes cash of GBP4,780,000 (2020: GBP1,292,000) and treasury shares of GBP693,000 (2020: GBPnil). This figure does not include the benefit of the cash receipts from the sale of the Haydock property in November 2021 of GBP3.5 million as this will be accounted for in the annual accounts.

The Group's net funds has increased to GBP1,677,000 (2020: GBP7,192,000 net debt).

Operations

Tatra-Rotalac Ltd

Tatra-Rotalac has exceeded the board's expectations during the first half of the financial year with sales and profits well above budget. The recent capital expenditure is expected to generate additional improvements to performance in the following six months.

Global One-Pak Ltd

This business has been hit especially hard during the six months to 31 October 2021 due to logistical cost increases in Chinese trading. This has been compounded by the continuing ill health of the managing director. The global shortage of containers, increased shipping times and delays at customs have all contributed to higher than usual transport costs.

Performance in the second half of the financial year is expected to improve given the business is now experiencing more enquiries as customers' stock levels are returning to pre-pandemic levels.

Customised Packaging Ltd

This business is experiencing strong demand in UK manufacturing. They currently have no supply issues and have assisted a major customer in recycling its end of life plastic.

Capital Expenditure

Total capital expenditure in the first six months was GBP375,000 (2020: GBP314,000) of which GBP375,000 (2020: GBPnil) related to Tatra-Rotalac.

Dividends

The board have declared an interim dividend of 0.50 pence per share (2020: 0.50p). The ex-dividend date and the record date for the interim dividend was 11 November 2021 and 12 November 2021 respectively. The interim dividend will be paid on 3 December 2021. This continues to reflect our confidence in the positive performance and profitable results of the Group.

Outlook

I am delighted with the performance of the business in the first half of the financial year. I am pleased to report that the results to date are well ahead of the same period last year, in spite of the prevailing uncertainties of Brexit and the Covid-19 pandemic. With our enhanced cash position arising from the sale of the Haydock property which completed on 19 November 2021 for GBP3.5m, we remain confident of the Group's future prospects.

Joe Grimmond Non-Executive Chairman 29 November 2021

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months to 31 October 2021

 
                                                                      Six months 
                                                                              to 
                                                    Six months        31 October 
                                                            to                           Year to 
                                                    31 October              2020        30 April 
                                         Notes            2021          restated            2021 
                                                   (unaudited)       (unaudited)       (audited) 
 
                                                        GBP000            GBP000          GBP000 
 
 
 Revenue                                  3              7,103             4,531          10,714 
 Cost of sales                                         (4,569)           (2,811)         (6,913) 
                                                --------------  ----------------  -------------- 
 Gross profit                                            2,534             1,720           3,801 
 Operating costs 
 Distribution expenses                                   (334)             (224)           (761) 
 Administrative expenses 
  before separately disclosed 
  items                                                (1,441)             (933)         (2,173) 
                                                --------------  ----------------  -------------- 
 Underlying operating profit                               759               563             867 
 Separately disclosed items: 
                                                -------------- 
 Share based payment credit/(charge)                      (25)                 -             (8) 
 Amortisation of intangible 
  assets                                                 (163)             (138)           (284) 
 Reorganisation costs                                        -              (70)           (780) 
                                                         (188)             (208)         (1,072) 
 Operating profit/(loss)                                   571               355           (205) 
 Finance expense                                          (61)              (69)           (111) 
                                                --------------  ----------------  -------------- 
 Profit/(loss) before taxation                             510               286           (316) 
 Taxation                                 4                  -                 -              76 
                                                --------------  ----------------  -------------- 
 Total comprehensive income/(loss) 
  on continuing operations                                 510               286           (240) 
                                                --------------  ----------------  -------------- 
 Profit on discontinued operations                           -               255             715 
                                                --------------  ----------------  -------------- 
 Total comprehensive income/(loss)                         510               541             475 
                                                --------------  ----------------  -------------- 
 
 
 Earnings per ordinary share              5 
 
 Basic and diluted (pence)                                0.59              0.35          (0.29) 
 Underlying basic (pence)                                 0.81              0.60            1.00 
                                                --------------  ----------------  -------------- 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 October 2021

 
                                           31 October     31 October      30 April 
                                                 2021           2020          2021 
                                          (unaudited)    (unaudited)     (audited) 
 
                                               GBP000         GBP000        GBP000 
 
 Non-current assets 
 Goodwill                                       1,945          5,145         1,945 
 Other intangible assets                        1,079            986         1,243 
 Property, plant and equipment                  1,133          2,768           630 
 Right of use assets                            1,117          4,058         1,496 
 Total non-current assets                       5,274         12,957         5,314 
                                        -------------  -------------  ------------ 
 
 Current assets 
 Inventories                                    1,752          3,395         1,828 
 Trade and other receivables                    3,371          4,575         4,453 
 Cash and cash equivalents                      4,780          1,292         3,843 
 Total current assets                           9,903          9,262        10,124 
                                        -------------  -------------  ------------ 
 Assets held for sale                           2,500          2,520         2,500 
 
 Current liabilities 
 Bank overdrafts and borrowings               (1,832)        (2,526)       (1,353) 
 Trade and other payables                     (1,906)        (3,212)       (2,039) 
 Lease liabilities                              (405)        (1,393)         (459) 
 Corporation tax                                    -              -             - 
 Total current liabilities                    (4,143)        (7,131)       (3,851) 
                                        -------------  -------------  ------------ 
 Liabilities on assets held                         -        (1,706)             - 
  for sale 
 
 Non-current liabilities 
 Borrowings                                         -        (1,000)             - 
 Lease liabilities                              (866)        (1,859)       (1,035) 
 Deferred taxation                              (292)          (398)         (315) 
                                        -------------  -------------  ------------ 
 Total non-current liabilities                (1,158)        (3,257)       (1,350) 
                                        -------------  -------------  ------------ 
 Total liabilities                            (5,301)       (12,094)       (5,201) 
                                        -------------  -------------  ------------ 
 Total net assets                              12,376         12,645        12,737 
                                        -------------  -------------  ------------ 
 
 
 Equity 
 Share capital                                    859            826           859 
 Share premium                                  5,621          5,288         5,621 
 Treasury shares                                (693)              -         (218) 
 Other reserves                                 1,567          1,567         1,567 
 Retained earnings                              5,022          4,964         4,908 
                                        -------------  -------------  ------------ 
 Total equity                                  12,376         12,645        12,737 
                                        -------------  -------------  ------------ 
 

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

For the six months to 31 October 2021 (unaudited)

 
                                Share      Share   Treasury        Other    Retained          Total 
                              capital    premium     shares     reserves    earnings         equity 
                               GBP000     GBP000     GBP000       GBP000      GBP000         GBP000 
 At 1 May 2021                    859      5,621      (218)        1,567       4,908         12,737 
 Total comprehensive loss           -          -          -            -         510            510 
 Credit for share based 
  payment                           -          -          -            -          25             25 
 Purchase of treasury 
  shares                            -          -      (475)            -           -          (475) 
 Dividend paid                      -          -          -            -       (421)          (421) 
                            ---------  ---------  ---------  -----------  ----------  ------------- 
 At 31 October 2021               859      5,621      (693)        1,567       5,022         12,376 
                            ---------  ---------  ---------  -----------  ----------  ------------- 
 

For the six months to 31 October 2020 (unaudited)

 
                              Share      Share   Treasury       Other    Retained     Total 
                            capital    premium     shares    reserves    earnings    equity 
                             GBP000     GBP000     GBP000      GBP000      GBP000    GBP000 
 At 1 May 2020                  826      5,288          -       1,567       4,425    12,106 
 Total comprehensive 
  income                          -          -          -           -         541       541 
 Charge for share based 
  payment                         -          -          -           -         (2)       (2) 
 At 31 October 2020             826      5,288          -       1,567       4,964    12,645 
                          ---------  ---------  ---------  ----------  ----------  -------- 
 
 

For the year ended 30 April 2021 (audited)

 
                                  Share      Share   Treasury        Other    Retained          Total 
                                capital    premium     shares     reserves    earnings         equity 
                                 GBP000     GBP000     GBP000       GBP000      GBP000         GBP000 
 At 1 May 2020                      826      5,288          -        1,567       4,425         12,106 
 Total comprehensive profit           -          -          -            -         475            475 
 Credit for share based 
  payment                             -          -          -            -           8              8 
 Issue of new shares                 33        333          -            -           -            366 
 Purchase of treasury 
  shares                              -          -      (218)            -           -          (218) 
 At 30 April 2021                   859      5,621      (218)        1,567       4,908         12,737 
                              ---------  ---------  ---------  -----------  ----------  ------------- 
 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months to 31 October 2021

 
                                                Six months     Six months 
                                                        to             to       Year to 
                                                31 October     31 October      30 April 
                                                      2021           2020          2021 
                                               (unaudited)    (unaudited)     (audited) 
                                                    GBP000         GBP000        GBP000 
 Cash flow from operating activities 
 Profit for the period after tax                       510            541           475 
 Adjustments for: 
 Depreciation of property, plant 
  and equipment                                        122            321           487 
 Depreciation of right of use assets 
  under IFRS16                                         133            307           666 
 Amortisation of intangible assets                     163            138           284 
 Share based payment (credit)/charge                    25            (2)             8 
 Profit on disposal of subsidiary                        -              -       (1,133) 
 Interest payable                                       61            223           329 
 Taxation charge/(credit)                                -              -          (48) 
 (Increase)/decrease in inventories                     76           (27)         (382) 
 Decrease/(increase) in trade and 
  other receivables                                    505            386           433 
 (Decrease)/increase in trade and 
  other payables                                     (133)          (537)           422 
 UK corporation tax received                             -              -           299 
 Net cash generated from operating 
  activities                                         1,462          1,350         1,840 
                                             -------------  -------------  ------------ 
 
 Cash flow from investing activities 
 Net cash on disposal of subsidiary                      -              -         7,771 
 Acquisition of subsidiary                               -              -         (937) 
 Acquisition of property, plant and 
  equipment                                          (375)          (314)         (454) 
 Net cash (used in)/generated from 
  investing activities                               (375)          (314)         6,380 
                                             -------------  -------------  ------------ 
 
 Cash flow from financing activities 
 Interest paid on bank borrowings 
  and invoice discounting                             (61)          (223)         (119) 
 Interest paid on lease liabilities                      -              -         (210) 
 Repayments of bank borrowings                           -           (60)       (2,765) 
 Repayments of obligations under 
  lease liabilities                                   (93)          (462)         (893) 
 Purchase of treasury shares                         (475)              -         (218) 
 New bank loans raised                                   -          1,000         1,000 
 Movements on invoice discounting 
  facility                                             479          (452)       (1,625) 
 Net cash used in financing activities               (150)          (197)       (4,830) 
                                             -------------  -------------  ------------ 
 
 Net increase in cash and cash equivalents             937            839         3,390 
 Cash and cash equivalents at the 
  start of the period                                3,843            453           453 
                                             -------------  -------------  ------------ 
 Cash and cash equivalents at the 
  end of the period                                  4,780          1,292         3,843 
                                             -------------  -------------  ------------ 
 
   1.         Basis of preparation 

The financial information set out in this Interim Report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006.

The Group's statutory financial statements for the year ended 30 April 2021, prepared under IFRS, have been filed with the Registrar of Companies . The auditor's report on those statutory accounts was qualified with respect to opening inventory as the audit evidence available was limited because, given the global Covid-19 pandemic, no inventory count was undertaken and the auditor did not observe the physical inventory as at 30 April 2020.

The interim financial information has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) and on the same basis and using the same accounting policies as used in the financial statements for the year ended 30 April 2021 .

The Interim Report has not been reviewed by our auditor in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.

   2.         Significant accounting policies 

The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements for the year ended 30 April 2021.

The six months to 31 October 2020 have been restated to show the results of continuing operations only.

   3.         Revenue 

All production is based in the United Kingdom. The geographical analysis of revenue is shown below:

 
                                                       Six months 
                                                               to 
                                       Six months      31 October 
                                               to            2020      Year to 
                                       31 October                     30 April 
                                             2021        restated         2021 
                                      (unaudited)     (unaudited)    (audited) 
                                           GBP000          GBP000       GBP000 
 
 United Kingdom                             6,827           4,050        9,811 
 Rest of Europe                               186             386           94 
 Rest of the World                             90              95          809 
                                            7,103           4,531       10,714 
                                   --------------  --------------  ----------- 
 
 Turnover by business activity 
 Sale and manufacture of plastic 
  products                                  7,103           4,531       10,714 
                                   --------------  --------------  ----------- 
 
   4.         Taxation 

The taxation charge for the six months to 31 October 2021 is based on the effective taxation rate, which is estimated will apply to earnings for the year ending 30 April 2022. The rate used is below the applicable UK corporation tax rate of 19% due to the utilisation of tax losses in the period.

   5.         Earnings per share 

Basic and underlying earnings per ordinary share are calculated using the weighted average number of ordinary shares in issue during the financial period of 85,942,534 (31 October 2020: 82,614,865 and 30 April 2021: 83,032,453).

 
                                                            Six months 
                                                                    to           Year to 
                                           Six months       31 October 
                                                   to             2020          30 April 
                                           31 October 
                                                 2021      (unaudited)              2021 
                                          (unaudited)         restated         (audited) 
                                        GBP000      p    GBP000      p   GBP000        p 
 Basic and diluted earnings 
  per ordinary share 
 Profit/(loss) for the period 
  after tax                                510   0.59       286   0.35    (240)   (0.29) 
                                      --------  -----  --------  -----  -------  ------- 
 
 
   Underlying earnings per ordinary 
   share 
 Underlying profit/(loss) for 
  the period after tax                     698   0.81       494   0.60      832     1.00 
                                      --------  -----  --------  -----  -------  ------- 
 
   6.         Movement in Net Debt 

Net debt incorporates the Group's borrowings and bank overdrafts less cash and cash equivalents. A reconciliation of the movement in the net debt is shown below:

 
                                      Six months     Six months 
                                              to             to      Year to 
                                      31 October     31 October     30 April 
                                            2021           2020         2021 
                                     (unaudited)    (unaudited)    (audited) 
 
                                          GBP000         GBP000       GBP000 
 
 Net increase in cash and cash 
  equivalents                                458            839        5,015 
 Decrease/(increase) in bank 
  and other loans                              -            510        1,765 
 (Decrease)/increase in lease 
  liabilities                                223          (551)        2,206 
 Movement in net debt in the 
  financial period                           681            798        8,986 
 Net funds/(debt) at beginning 
  of period                                  996        (7,990)      (7,990) 
                                 ---------------  -------------  ----------- 
 Net funds/(debt) at end of 
  period                                   1,677        (7,192)          996 
                                 ---------------  -------------  ----------- 
 
 
   7.         Underlying profit and separately disclosed items 

Underlying profit before tax, underlying earnings per share, underlying operating profit, underlying earnings before interest, tax, depreciation and amortisation are defined as being before share based payment charges, amortisation of intangibles recognised on acquisition, acquisition costs, reorganisation costs, compensation for loss of office, impairment of goodwill and impairment loss on trade receivables. Collectively these are referred to as separately disclosed items. In the opinion of the directors the disclosure of these transactions should be reported separately for a better understanding of the underlying trading performance of the Group.

 
                                            Six months     Six months 
                                                    to             to      Year to 
                                            31 October     31 October     30 April 
                                                  2021           2020         2021 
                                           (unaudited)    (unaudited)    (audited) 
 
                                                GBP000         GBP000       GBP000 
 
 Operating profit/(loss)                           571            355        (205) 
 Separately disclosed items within 
  administration expenses 
--------------------------------------  --------------  -------------  ----------- 
 Share based payment (credit)/charge                25              -            8 
 Amortisation of intangible assets                 163            138          284 
 Reorganisation costs                                -             70          780 
 Total separately disclosed items                  188            208        1,072 
                                        --------------  -------------  ----------- 
 Underlying operating profit                       759            563          867 
 Depreciation                                      255            208          417 
 Underlying EBITDA                               1,014            771        1,284 
 
 
   8.         Forward looking statements 

This announcement contains unaudited information and forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts and undue reliance should not be placed on any such statement because they speak only as at the date of this document and are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Coral's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. Coral undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (MAR). The Directors of the Group take responsibility for this announcement.

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END

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