Coral Products PLC Year End Trading Update (2278A)

TIDMCRU

RNS Number : 2278A

Coral Products PLC

01 June 2021

1 June 2021

Coral Products plc

("Coral", the "Company" or the "Group")

Year End Trading Update

Return to full year profitability and confident outlook on future performance.

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

Coral Products Plc, a specialist in the design, manufacture and supply of plastic products based in Wythenshawe, Manchester, is pleased to provide a trading update in advance of its final results for the year ended 30(th) April 2021.

HIGHLIGHTS (unaudited)

-- Group Sales for continuing activities at the year end are expected to be not less than GBP10.7m (2020: GBP8.7m) for the year ended 30 April 2021 and when discontinued activities are included, Group Sales are expected to be not less than GBP22.4m (2020 GBP22.3m).

-- The board expects to report Group profits before tax of circa GBP3.0m (2020: GBP0.8m loss) including a profit of GBP700,000 from continuing operations and GBP2.3m relating to the trading contribution and profits on the disposals of Coral Mouldings Ltd and Interpack Ltd.

-- The results include two months contribution from the successful integration of Customised Packaging Ltd acquired 2 March 2021.

   --    Cash balances of GBP3.8m as at 30 April 2021 (2020: GBP0.5m) and gearing eliminated. 
   --    Current year trading has started well and is in line with management expectations. 

-- The sale of the freehold property (which has no net debt) is expected to complete during the second half and will generate GBP3.5 million substantially increasing free cash reserves on completion. The carrying value in the books is GBP2.5 million.

-- The Board is proposing a final dividend of 0.5p per share subject to shareholder approval at the AGM due to be held later in the summer.

Joe Grimmond, Executive Chairman, comments: "The Group now has three profitable trading subsidiaries and with the disposal of our Haydock operations and the sale of the associated freehold properties the Group is now substantially cash rich and debt free. Our continuing activities are all in sectors with forecast growth opportunities. We look forward with increased confidence to further development".

ENQUIRIES:

Coral Products plc

Joe Grimmond, Executive Chairman Tel [phone]

WH Ireland Nominated Adviser and Broker Tel [phone]

Adrian Hadden

Darshan Patel

Lydia Zychowska

Jasper Berry (Corporate Broking)

Capital Markets Consultants Limited

Richard Pearson Tel [phone]

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTUWAARAVUVUAR

(END) Dow Jones Newswires

June 01, 2021 02:00 ET (06:00 GMT)