RNS Number:7076S
Coral Products PLC
02 December 2003
CORAL PRODUCTS PLC
2003 Interim Results
Coral Products PLC, one of Europe's leading manufacturers and suppliers of media
packaging for Digital Versatile Disc (DVD), Video and CD, announces interim
results for the six months ended 31 October 2003.
In his statement to shareholders, Chairman Sir David Rowe-Ham said:
"Business in the first quarter started slowly, however, there has been a major
improvement in the past three months, which has enabled us to report steady and
improving profits and increased earnings per share for the half year to 31
October 2003."
Summary
Six months Six months
ended ended
31 October 2003 31 October 2002
Turnover #11.0m #9.9m
Pre-tax profits #1.04m #1.01m
Earnings per share 3.58p 3.43p
Interim dividend 1.05p 1.05p
* DVD case sales continue to rise with increased demand.
* Video box demand at full capacity at the end of October.
* CD case sales in line with expectation.
* DVD production capacity increased with the installation of a further new
DVD case line.
Regarding the business and prospects for the current year, Sir David added:
"Volume sales of DVD cases increased significantly during the period whilst CD
case sales were in line with expectations and Video box demand reached full
capacity by the end of October. Sales of Photo-finishing products remained
strong especially in the first quarter."
"Our DVD case production capacity has further been increased by expenditure on a
new production line costing #1million. This facility came into operation towards
the end of the half year with returns only recently coming on stream. This
investment completes our plans to implement substantial production capacity in
this particular area and, for the immediate future, we have no additional
large-scale capital expenditure outstanding."
"We are much encouraged by the progress made so far and remain confident of our
trading prospects for the full financial year."
Enquiries: Coral Products PLC Tel: 01942 272 882
Warren Ferster, Managing Director email:warren.ferster@coralproducts.com
Stephen Fletcher, Finance Director email:steve.fletcher@coralproducts.com
CHAIRMAN'S STATEMENT
As commented upon in my Statement at the Annual General Meeting, business in the
first quarter started slowly, however, there has been a major improvement in the
past three months, which has enabled us to report steady and improving profits
and increased earnings per share for the half year to 31 October 2003.
Results
Turnover for the six months ended 31 October 2003 increased to #11.0 million
(2002: #9.9 million) and pre-tax profits increased to #1,041,000 (2002:
#1,012,000). Diluted earnings per share were 3.58p (2002: 3.43p).
Interim Dividend
An interim dividend of 1.05p net per ordinary share (2002: 1.05p) has been
declared for the period. This dividend will be paid on 23 February 2004 to all
shareholders on the register on 6 February 2004.
Business and Prospects
Volume sales of DVD cases increased significantly during the period whilst CD
case sales were in line with expectations and Video box demand reached full
capacity by the end of October. Sales of Photo-finishing products remained
strong especially in the first quarter.
Our DVD case production capacity has further been increased by expenditure on a
new production line costing #1million. This facility came into operation towards
the end of the half year with returns only recently coming on stream. This
investment completes our plans to implement substantial production capacity in
this particular area and, for the immediate future, we have no additional
large-scale capital expenditure outstanding.
Raw material prices have fallen during the period, with the result that margins
have improved and are currently in line with forecasts.
It is anticipated that the recent high demand will reduce as we fulfil our
Christmas order book, however, we are much encouraged by the progress made so
far and the good relationships that we continue to develop with our major
customers. We remain confident of our trading prospects for the full financial
year.
Sir David Rowe-Ham 2 December 2003
Profit and Loss Account
Unaudited Unaudited Audited
Half year to Half year to Year to
31 October 31 October 30 April
2003 2002 2003
Notes #'000 #'000 #'000
----------- ----------- -----------
Continuing operations
Turnover (1) 10,960 9,899 20,004
----------- ----------- -----------
Profit on ordinary
activities
before interest 1,118 1,104 2,194
Net interest payable 77 92 192
----------- ----------- -----------
Profit on ordinary
activities
before taxation 1,041 1,012 2,002
Tax on profit on (2) 312 304 586
ordinary activities
----------- ----------- -----------
Profit on ordinary
activities
after taxation 729 708 1,416
Dividends 212 216 682
----------- ----------- -----------
Amount transferred to 517 492 734
reserves
----------- ----------- -----------
Basic earnings per (3) 3.60p 3.44p 6.91p
share
----------- ----------- -----------
Diluted earnings per (3) 3.58p 3.43p 6.89p
share
----------- ----------- -----------
The Company has no recognised gains and losses other than the profits above and
therefore no separate statement of total recognised gains and losses has been
presented.
Basis of preparation
The interim results have been prepared on the basis of the accounting policies
set out in the Company's accounts for the year ended 30 April 2003, and are
neither audited nor reviewed.
Balance Sheet
Unaudited Unaudited Audited
As at As at As at
31 October 31 October 30 April
2003 2002 2003
#'000 #'000 #'000
----------- ----------- -----------
Tangible fixed assets 14,636 14,035 13,951
Current assets
Stocks 2,454 1,834 2,258
Debtors 6,234 6,251 4,662
Cash at bank and in hand - - 433
----------- ----------- -----------
8,688 8,085 7,353
Creditors: amounts falling due
within one year
(9,002) (9,038) (7,474)
----------- ----------- -----------
Net current liabilities (314) (953) (121)
----------- ----------- -----------
Total assets less current 14,322 13,082 13,830
liabilities
Creditors: amounts falling due
after more than one year (1,488) (946) (1,430)
Provisions for liabilities and
charges
Deferred taxation (1,555) (1,382) (1,555)
----------- ----------- -----------
Total net assets 11,279 10,754 10,845
----------- ----------- -----------
Capital and reserves
Share capital 202 206 203
Share premium 4,550 4,530 4,534
Capital redemption reserve 7 2 5
Profit and loss account 6,520 6,016 6,103
----------- ----------- -----------
Equity shareholders' funds 11,279 10,754 10,845
----------- ----------- -----------
Movements in Shareholders' Funds
Unaudited Unaudited Audited
As at As at As at
31 October 31 October 30 April
2003 2002 2003
#'000 #'000 #'000
----------- ----------- -----------
Profit for the period 729 708 1,416
Dividends 212 216 682
----------- ----------- -----------
Net additions to equity
shareholders' funds
517 492 734
Proceeds of share issued 17 35 39
Purchase of own shares (100) (27) (182)
----------- ----------- -----------
434 500 591
----------- ----------- -----------
Equity shareholders' funds at the
beginning of the period
10,845 10,254 10,254
----------- ----------- -----------
Equity shareholders' funds at the
end of the period
11,279 10,754 10,845
----------- ----------- -----------
Cash Flow Statement
Unaudited Unaudited Audited
Half year to Half year to Year to
31 October 31 October 30 April
2003 2002 2003
#'000 #'000 #'000
----------- ----------- -----------
Net cash inflow from operating 726 1,748 5,256
activities
----------- ----------- -----------
Returns on investments and
servicing of finance
Net interest paid (77) (92) (192)
----------- ----------- -----------
Taxation received/(paid) 3 127 (97)
----------- ----------- -----------
Capital expenditure and financial
investment
Purchase of tangible fixed (1,744) (2,451) (3,392)
assets
Sale of tangible fixed assets - - 18
----------- ----------- -----------
(1,744) (2,451) (3,374)
----------- ----------- -----------
Equity dividends paid (467) (473) (688)
----------- ----------- -----------
Net cash (outflow)/inflow before (1,559) (1,141) 905
financing
----------- ----------- -----------
Financing
Issue of share capital 17 35 39
Repurchase of share capital (100) (27) (182)
Proceeds of new asset finance 969 863 1,590
Repayment of principal under (803) (751) (1,731)
finance leases
Repayment of loans (80) (75) (153)
----------- ----------- -----------
Net cash inflow/(outflow) from 3 45 (437)
financing
----------- ----------- -----------
(Decrease)/Increase in cash in (1,556) (1,096) 468
the period
----------- ----------- -----------
Reconciliation of Net Cash Flow to
Movement in Net Debt
Unaudited Unaudited Audited
Half year to Half year to Year to
31 October 31 October 30 April
2003 2002 2003
#'000 #'000 #'000
----------- ----------- -----------
(Decrease)/Increase in cash in (1,556) (1,096) 468
the period
Net cash inflow from debt and
lease financing (86) (37) 294
----------- ----------- -----------
Change in net debt resulting from
cashflows in the period
(1,642) (1,133) 762
Net debt at beginning of period (2,522) (3,284) (3,284)
----------- ----------- -----------
Net debt at end of period (4,164) (4,417) (2,522)
----------- ----------- -----------
Reconciliation of Operating Profit to Net Cash Inflow
from Operating Activities
Unaudited Unaudited Audited
Half year to Half year to Year to
31 October 31 October 30 April
2003 2002 2003
#'000 #'000 #'000
----------- ----------- -----------
Operating profit 1,118 1,104 2,194
Depreciation charges 1,059 949 1,953
Loss on sale of fixed assets - - 3
Release of grant income - - (1)
(Increase)/decrease in stocks (196) 214 (210)
(Increase)/decrease in debtors (1,754) (1,470) 119
Increase in creditors 498 951 1,198
----------- ----------- -----------
Net cash inflow from operating 725 1,748 5,256
activities
----------- ----------- -----------
Notes to the Accounts
1. Turnover
All production is based in the United Kingdom. The geographical analysis of
turnover is shown below:
Unaudited Unaudited Audited
Half year to Half year to Year to
31 October 31 October 30 April
2003 2002 2003
#'000 #'000 #'000
----------- ----------- -----------
United Kingdom 9,107 9,171 17,887
Rest of Europe 1,853 728 2,117
----------- ----------- -----------
10,960 9,899 20,004
----------- ----------- -----------
By Business Activity
Media packaging 10,960 9,899 20,004
----------- ----------- -----------
The classes of business activity do not differ substantially and therefore
no separate analysis of operating profits and net assets is disclosed.
2 The charge for taxation on the profit for the period is based upon the
estimated effective rate for the full year.
3 The calculation of basic earnings per share is based on the profit on
ordinary activities after taxation for the half year namely #729,000 (2002:
#708,000) and on 20,267,271 (2002: 20,571,451) ordinary shares being the
weighted average number of ordinary shares in issue and ranking for
dividend during the period. Calculation of fully diluted earnings per share
is based upon a fully diluted weighted average number of ordinary shares of
20,387,566 (2002: 20,614,574).
4 The results for the year ended 30 April 2003 are in abbreviated form and
have been extracted from the published accounts as filed with the Registrar
of Companies. These were audited and reported upon without qualification by
PricewaterhouseCoopers LLP and did not contain a statement under Section
237(2) or (3) of the Companies Act 1985.
5 The interim report will be posted to all shareholders on 2 December 2003
and copies of this and the last published Annual Report and Accounts are
available from the Secretary, Coral Products PLC, North Florida Road,
Haydock Industrial Estate, Haydock, Merseyside WA11 9TP (Tel: 01942
272882). These reports may also be viewed on our web site at
coralproducts.com.
This information is provided by RNS
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