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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 |
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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