Coral Products PLC Trading update - Q1 - 2020 (8704W)
24 August 2020 - 4:00PM
UK Regulatory
TIDMCRU
RNS Number : 8704W
Coral Products PLC
24 August 2020
Coral Products PLC
(the "Company" or "Coral")
Trading update - Q1 - 2020
Further to the update on 14 May 2020 the Board is pleased to
provide an update for Q1-2020 (3 months to 31 July 2020).
As set out below underlying operating profit has increased
significantly compared to Q1-2019. Underlying operating profit is
ahead of management's budgeted expectations.
3 months to 31 July (unaudited) Q1 -2020 Q1- 2019
Group Sales GBP5.4m GBP7.1m
---------- ----------
Gross Margin 30.5% 27.3%
---------- ----------
Underlying operating profit (excluding GBP201.5k GBP38.4k
finance expenses)*
---------- ----------
Underlying EBITDA* GBP564.8k GBP537.2k
---------- ----------
*The financial headlines disclosed as underlying represent the
reported metrics excluding separately disclosed items see note 1
below.
The early actions taken by the Board to cut costs and improve
efficiencies are reflected in the reported result.
These Q1-2020 results were despite a near 25% fall in sales in
the comparative period in the previous year, all of which stems
from the trading conditions surrounding Covid-19.
When sales return to historical levels, as and when Covid-19
begins to fade, then the contribution from the increased sales
should further improve profitability.
Cash management remains a priority but with the receipt of the
GBP1m Coronavirus Business Interruption Loan (notified 14 May 2020)
the Company has significantly reduced creditor pressure whilst
remaining within its agreed facilities and loan covenants.
The Board is confident, subject to the Covid-19 caveat below,
that cash flow should further improve over the remainder of the
financial year.
The prevailing uncertainties arising from the ongoing Covid-19
crisis and the danger of a secondary wave which could lead to
further deterioration in trading conditions prevents the Board from
giving any further guidance on the outcome for the current
financial year.
Moulding and extrusions operations remain as previously
disclosed in the Company's trading update of 14 May 2020.
Note 1 - 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 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.
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)
Capital Markets Consultants Limited Tel: 07515 587
Richard Pearson 184
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.
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