Coral Products PLC Trading Update (9046M)
14 May 2020 - 6:44PM
UK Regulatory
TIDMCRU
RNS Number : 9046M
Coral Products PLC
14 May 2020
14 May 2020
CORAL PRODUCTS PLC
('Coral' or the 'Company' or the 'Group')
Trading Update - Year to 30 April 2020
The board of Coral Products PLC, a specialist in the design,
manufacture and supply of plastic products is pleased to provide
the following update to its previous announcement of 24 March
2020.
Summary of results
The board reports that on sales of circa GBP22.3m (2019:
GBP24.7m) it expects, a small loss before taxation and intangibles
for the full year and a small drop in EBITDA from the previous year
as stated in our half-year statement, notwithstanding the negative
effects of the ongoing Covid-19 crisis.
Operations
The unaudited annual results were marginally affected by the
Covid-19 pandemic in March 2020 but a significant impact was noted
in April 2020 as the following sales analysis shows:
April Sales as a % of Pre Covid-19 Average:
Group 70%
Coral Products (Mouldings) 90% Injection and Blow Moulding
Ltd
Interpack Ltd 60% Food Packaging
Tatra Rotalac Ltd 60% Extrusions
Global One Pak Ltd 40% Nozzles, Sprays and Caps
We are planning for a medium-term level return of demand as a
group of around 65% of pre Covid-19 levels though the mix may
vary.
A good example is Global One Pak Ltd, who are reliant on Chinese
imports, where management has moved quickly to change product mix
and negotiated new supply terms with customers and suppliers
resulting in a record order intake during late April 2020 for
delivery from August 2020 and well into 2021.
As the restrictions on the general populace are eased, we
believe there will be improved demand for our food packaging
operations.
Moulding operations remain somewhat reduced as regards to
injection moulding demand but this is being partially offset by an
increased demand in blow moulding.
Extrusions is more difficult to forecast as this is determined
by economic activity generally.
With the uncertainty remaining from the current pandemic we feel
unable, with any confidence, to offer guidance for financial
performance for the new financial year to 30 April 2021. We
continue to monitor and update our performance and are encouraged
by our Group's resilient performance to date.
Covid-19
We are grateful for the government support on offer and where
appropriate have availed ourselves of the assistance offered by the
payroll protection furlough scheme as well as VAT deferral.
Where possible we have also encouraged staff, who remain on the
payroll to work from home. All staff members and your board have
reduced salaries by 20% for April 2020 and May 2020 which may
continue subject to review.
In addition, we have negotiated capital holidays ranging from 3
to 6 months with the majority of our asset finance and other
lenders. We appreciate this support.
We have negotiated a three-year CBIL (Coronavirus Business
Interruption Loan) for GBP1 million pounds, with a 7-month capital
repayment holiday, at an interest rate of 4.5% over base, 12 months
interest free from the Company's existing bank - Barclays. The
existing security arrangements with Barclays will continue, no
additional security has been provided by the Company.
The loan proceeds were received in our account on 13 May 2020
.
We would like to express our thanks to our Barclays bank
relationship counterparts whose guidance and assistance were
invaluable.
Your board had already taken steps to improve the Company's
working capital to aid our pre Covid-19 forecast demand by
determining to sell and leaseback the freehold Haydock premises.
The subsequent crisis and the inability of surveyors and
prospective purchasers to inspect has meant the sale is now on hold
until the crisis passes. The book value of this property is GBP2.5
million and carries a bank loan of GBP1.75 million . The Company
expect to realise sale proceeds in excess of the property's book
value.
Outlook
The actions taken by the board, the continuing resilience of our
employees and in the absence of any future government mandated
shutdown, give us confidence that we have the means to come through
this current crisis.
The board recognise its responsibility to provide safe and
healthy working conditions to all of the Company's stakeholders and
will work to ensure such conditions are forefront when we return to
more normal working conditions.
We will continue to monitor the performance of our Group and the
economic circumstances in general as this crisis unfolds. We will
provide updates to the market as appropriate.
This announcement contains inside information for the purpose of
Article 7 of the EU Regulation 596/2014 and has been arranged for
release by Sharon Gramauskas, Finance Director of the Company.
For further information, please contact:
Coral Products plc
Michael (Mick) Wood, Chief Executive Officer Tel: 07788 565
154
Nominated Adviser & Broker
Cairn Financial Advisers LLP Tel: 020 7213
Liam Murray 0880
Tony Rawlinson
David Lawman (Corporate Broking)
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 rns@lseg.com or visit www.rns.com.
END
TSTSFFSALESSELI
(END) Dow Jones Newswires
May 14, 2020 04:44 ET (08:44 GMT)
Coral Products (LSE:CRU)
Historical Stock Chart
From Apr 2024 to May 2024
Coral Products (LSE:CRU)
Historical Stock Chart
From May 2023 to May 2024