Contract Wins & Trading Update

RNS Number : 6512R

Coral Products PLC

08 November 2011

 



8 November 2011

CORAL PRODUCTS PLC

("Coral" or the "Group")

CONTRACT WINS AND TRADING UPDATE

In advance of the Group's half yearly report for the six months to 31 October 2011, due to be announced in early December, Coral is pleased to announce a number of contract wins in its recycling division and a trading update.

In the last three months, Coral has received confirmed orders from five new local authorities (Braintree, Powys, Rochdale, Isle of Wight and Forest of Dean) for the supply of recycling containers, including kerbside boxes and kerbside and kitchen caddies. The contracts are for delivery during the current financial year and have a sales value of around £700,000. This reinforces the Directors view that Coral's range of ergonomically-designed recycling containers is increasingly recognised as one of the best in market.

Media packaging sales are in line with management's expectations with increased sales of DVD cases more than offsetting some reduction in demand for CD cases.

Interpack, Coral's wholly-owned subsidiary, the acquisition of which was completed on 6 September 2011, has been successfully integrated within the Group and is expected to make a significant contribution to the Group's results for the six months to 31 October 2011. Positive reaction from Interpack's customers since its acquisition has necessitated reconfiguration of the Group's manufacturing facility and acquisition of additional tooling at an expected cost of approximately £450,000, which will increase Coral's manufacturing capacity. This includes an "in-mould labelling" line which will allow Coral to provide branded or labelled product for the first time. The new facilities are expected to be on-stream during the last quarter of the current financial year.

The greater than expected demand has led to an expansion in the scope of the Group's British Retail Consortium accreditation, the process of which is well advanced.

Overall, management expects to report a significant improvement in first half financial performance for the Group (before acquisition costs) compared to the same period in the previous year.

Enquiries

Coral Products plc Joe Grimmond, Non-Executive Chairman Warren Ferster, Chief Executive & Managing Director	Tel: [phone] Tel: [phone]
Nominated Adviser Cairn Financial Advisers LLP Avi Robinson / Tony Rawlinson	Tel: [phone]
Broker XCAP Securities plc David Lawman / Adrian Kirk	Tel: [phone]
Bankside Consultants Richard Pearson	Tel: [phone]

 

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