Final Results

Coral Products PLC
3 July 2001

CORAL PRODUCTS PLC

                           2001 Preliminary Results



Coral Products PLC, one of Europe's leading manufacturers and suppliers of
media packaging for Digital Versatile Disc (DVD), Video and CD, announces its
final results for year ended 30 April 2001.



Commenting upon the Company's trading Sir David Rowe-Ham Chairman of Coral
said:

'The last financial year has seen extremely testing conditions with the
weakness of the euro against sterling continuing to reduce exports and also
providing increasing competition in the UK from cheap imports. Poor demand in
the last quarter mainly in the CD case market, which now represents some 50%
of our media turnover, has been the primary reason for the profits shortfall.
Despite this, we have maintained sales volume growth across all areas of our
core media packaging business.'

Summary Results

                                               Year         Year       % change
                                              ended        ended
                                           30 April     30 April
                                               2001         2000

*     Turnover                               £18.4m       £15.0m        +   23%
*     Pre-tax profits                         £2.0m        £2.6m        -   23%
*     Fully diluted earnings per share        6.62p        8.82p        -   25%
*     Total dividend                          3.35p         3.3p        +  1.5%

*   Continued focus on the core media packaging business

*   Media packaging division turnover increased by 28% to £17.5m

*   Demand for media packaging has been good with the exception of the CD case
    market where demand has been poor in line with the industry as a whole

*   Coral's most recent and efficient DVD line to date to be in production
    shortly

*   Cashflow generation and balance sheet remain strong



Regarding prospects for the current year, Sir David added:

'The beginning of the new financial year has started slowly and continues to
see below average demand in the CD markets in line with the industry as a
whole. Substantial investment totalling over £3million has been made in the
year mainly in new CD and DVD production facilities which will enable us to
remain competitive and take full advantage of future demand.'



Enquiries:          Coral Products PLC  Tel: [phone]

                    Warren Ferster, Managing Director  Mobile: [phone]

                    David Shalom, Finance Director  Mobile: [phone]



                    Binns & Co

                    Peter Binns/Carole Butcher    Tel: [phone]



CHAIRMAN'S STATEMENT

Turnover for the year ended 30 April 2001 increased by 23% to £18.4 million
compared with £15.0 million last year, profit before tax over the same period
fell to £2.0 million from £2.6million. Diluted earnings per share fell to
6.62p (2000: 8.82p ) with shareholders funds at 30 April 2001 increasing to £
10.1 million (2000: £9.4million ), namely 49p per share ( 2000: 45p).



Dividend

Your directors are recommending a maintained final dividend of 2.3p per
ordinary share (2000: 2.3p) to be paid on 24 September 2001 to all shareholders
on the register on 31 August 2001. This together with the interim dividend of
1.05p per ordinary share already paid, makes a total dividend for the year of
3.35p ( 2000: 3.3p).



Trading

Poor demand in the last quarter mainly in the CD case market, which now
represents some 50% of our media turnover, has been the primary reason for the
profits shortfall.



The last financial year has seen extremely testing conditions with the
weakness of the euro against sterling continuing to reduce exports and also
providing increasing competition in the UK from cheap imports.



Despite this we have maintained sales volume growth across all areas of our
core media packaging business through continued investment in our production
facilities and increased emphasis on service and quality whilst remaining
competitive on price.


Prospects

The beginning of the new financial year has started slowly and continues to
see below average demand in the CD market in line with the industry as a
whole. We have also seen a slowdown in demand for Video products in the first
two months, although May and June are traditionally quiet months of the year.
Client schedules do however indicate strong demand for video for the rest of
the year and we expect to sell our full capacity following the winning of a
number of new clients in the past few months. DVD sales continue to grow and
we will shortly have on stream our latest and most efficient DVD line to date
ready to take advantage of expected demand as we move towards the busier
months leading up to Christmas 2001.



Substantial investment totalling over £3million has been made in the year
mainly in new CD and DVD production facilities which will enable us to remain
competitive and take full advantage of future demand. We consider that capital
investment this year is likely to be lower than in previous years.



Our cashflow generation and balance sheet remain strong and we continue to
look for  new opportunities in our core media business and elsewhere which
will add to shareholder value whilst maintaining a worthwhile dividend income
stream.



Sir David Rowe-Ham

Chairman



3 July 2001


                   MANAGING DIRECTOR'S REVIEW OF OPERATIONS



During the past 12 months we have continued to invest in state of the art
automation to enhance and increase our productive media capacity.
Unfortunately demand for CD cases, which now represents nearly 50% of our
media turnover has been affected by an industry wide slow down in sales,
particularly since January, and as a result we have not been able to fully
utilise the new capacity brought on stream in the year. Demand elsewhere in
the division has been good but has not been able to make up the shortfall in
sales of CD cases.



Media Packaging



Turnover in the division rose by 28% during the year to £17.5m with increased
sales volumes being achieved across our full product range. The increase in
turnover also reflected higher unit selling prices achieved as a result of
higher raw material costs  when compared to the same period last year.



CD sales volumes were increased by some 22% in the year but fell well short of
our expectations as a result of a global slowdown in demand particularly since
the start of 2001. A busy Easter period lasted only a few weeks and demand
generally in the last quarter has been poor. Margins on CD also suffered in
the last quarter with, in certain instances, selling prices falling faster
than raw material prices as we sought to protect our market share with clients
threatening to switch to cheaper imports.



Video box demand has been strong with volumes increasing by 11% when compared
with the same period last year. This has been achieved by gaining market share
from our competitors who are increasingly focusing on the DVD case market
which currently offers higher margins as compared to Video.



Demand for DVD cases continued to build in the year with substantial growth in
sales being achieved albeit from a  small base when  compared to the same
period last year. Substantial new investment has been made in the last 12
months as we continue to expand our production capacity.



Housewares



The housewares division continued to provide a contribution to profits despite
a 28% fall in turnover in the year to £949,000 as a result of lower demand
from our principal customer. The division now represents less than 5% of
overall turnover and  continues to utilise any surplus production capacity
available in the core media business. We continue to run the division as long
as demand for our products is required by our customers.



Outlook



We continue to focus our efforts on the core media business and recent
investment in new equipment has left us with a state of the art production
facility which will enable us to remain competitive and take advantage of
anticipated demand in the coming 12 months. Capital expenditure in the coming
year is likely to be restricted to further enhancement and expansion of our
DVD production facilities and will be at lower levels than previous years.



The strength of sterling against the euro continues to make the trading
environment tough with the constant threat of cheap imports putting pressure
on margins particularly in the CD case market. I am confident of further
growth in sales of Video and DVD cases in the coming year and remain hopeful
that CD demand will pick up in the second half of 2001.



I must express my gratitude to all members of staff and management for their
hard work and endeavour in what has been the most difficult trading
environment experienced in recent years.



Warren Ferster - Managing Director

3 July 2001



Profit and Loss Account

For the year ended 30 April 2001

                                                         2001              2000

                                                        £'000             £'000

Continuing operations

Turnover                                               18,424            14,969

Cost of sales                                        (12,736)           (8,911)

                                                     --------          --------
Gross Profit                                            5,688             6,058

Distribution costs                                      (643)             (613)

Administration costs                                  (2,803)           (2,725)

Other operating income                                      2                 6

                                                     --------          --------
Operating profit                                        2,244             2,726

Interest receivable                                        5                 17

Interest payable                                        (246)             (135)

                                                     --------          --------
Profit on ordinary activities before                    2,003             2,608
taxation

Tax on profit on ordinary activities                    (614)             (768)

                                                     --------          --------
Profit on ordinary activities after                     1,389             1,840
taxation

Dividends                                               (692)             (674)

                                                     --------          --------
Retained profit for the financial year                    697             1,166

                                                     --------          --------
Basic earnings per ordinary share                       6.77p             9.00p

Diluted earnings per share                              6.62p             8.82p

                                                     --------          --------



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.


Reconciliation of Movements in Shareholders' Funds

For the year ended 30 April 2001



                                                              2001        2000

                                                             £'000       £'000

                                                          --------    --------
Profit for the financial year                                1,389       1,840

Dividends                                                    (692)       (674)

                                                          --------    --------
Net additions to equity shareholders' funds                    697       1,166

Proceeds of shares issued                                       56           -

                                                          --------    --------
                                                               753       1,166

                                                          --------    --------
Equity shareholders' funds at beginning of year              9,383       8,217

                                                          --------    --------
Equity shareholders' funds at end of the year               10,136       9,383

                                                          --------    --------




Balance Sheet

At 30 April 2001

                                                              2001         2000

                                                             £'000        £'000

                                                         ---------    ---------
Fixed assets

Tangible assets                                             12,474       10,741

                                                        ----------   ----------
Current assets

Stocks                                                       1,893        2,515

Debtors                                                      5,417        4,914

Cash at bank and in hand                                       395          191

                                                        ----------   ----------
                                                             7,705        7,620

Creditors: amount falling due within one year              (6,928)      (6,662)

                                                        ----------   ----------
Net current assets                                             777          958

                                                        ----------   ----------
Total assets less current liabilities                       13,251       11,699

Creditors: amounts falling due after more than one         (1,842)      (1,242)
year

Provisions for liabilities and charges                     (1,273)      (1,074)

                                                        ----------   ----------
Net assets                                                  10,136        9,383

                                                        ----------  -----------
Capital and reserves

Called up share capital                                        206          204

Share premium account                                        4,497        4,443

Profit and loss account                                      5,433        4,736

                                                        ----------   ----------
Equity shareholders' funds                                  10,136        9,383

                                                        ----------   ----------

Cash Flow Statement

For the year ended 30 April 2001

                                                            2001           2000

                                                           £'000          £'000

                                                       ---------      ---------
Net cash inflow from operating activities                  3,589          3,190

                                                       ---------      ---------
Return on investments and servicing of finance

Interest received                                              5             17

Interest paid                                               (73)           (33)

Interest paid on finance leases                            (160)           (96)

                                                        --------      ---------
                                                           (228)          (112)

                                                        --------      ---------
Taxation                                                   (571)          (635)

                                                        --------      ---------
Capital expenditure and financial investment

Purchase of tangible fixed assets                        (3,274)        (3,288)

Sale of tangible assets                                        7             20

                                                       ---------      ---------
                                                         (3,267)        (3,268)

                                                       ---------     ----------
Equity dividends paid                                      (687)          (612)

                                                       ---------      ---------
Net cash outflow before financing                        (1,164)        (1,437)

                                                       ---------      ---------
Financing

Issue of Share Capital                                        56              -

Repayments of principal under finance leases             (1,284)          (928)

Proceeds of sale and leaseback                             2,289          1,800

Repayment of loans                                         (193)           (41)

Inception of new loans                                       500              -

                                                       ---------      ---------
                                                           1,368            831

                                                       ---------      ---------
Increase/ (Decrease) in cash                                 204          (606)

                                                       ---------      ---------

Other Financial Statements

For the year ended 30 April 2001




Reconciliation of Operating Profit to Net Cash Inflow from Operating Activities

                                                                2001       2000

                                                               £'000      £'000

                                                           ---------  ---------
Operating Profit                                               2,244      2,726

Depreciation on tangible fixed assets                          1,536      1,284

Profit on disposal of tangible fixed assets                      (2)        (5)

Release of grant income                                          (1)        (1)

Decrease/(Increase) in stocks                                    622    (1,168)

Increase in trade debtors                                      (574)    (1,695)

Decrease in other debtors, prepayments and accrued income         71          2

(Decrease)/increase in trade creditors                         (299)      1,757

Increase in other taxation and social security creditors         126          5

(Decrease)/increase in accruals and deferred income             (48)         79

(Decrease)/increase in other creditors                          (86)        206

                                                            --------   --------
Net cash inflow from operating activities                      3,589      3,190

                                                            --------   --------







Reconciliation of Net Cash Flow to Movement in Net Debt

                                                            2001           2000

                                                           £'000          £'000

                                                       ---------      ---------
Increase/ (Decrease) in cash in the year                     204          (606)

Net cash outflow from debt and lease financing           (1,312)          (831)

                                                       ---------      ---------
Change in net debt resulting from cashflows              (1,108)        (1,437)

Net debt at 1 May 2000                                   (1,927)          (490)

                                                      ----------     ----------
Net debt at 30 April 2001                                (3,035)        (1,927)

                                                       ---------      ---------

Notes



1. Financial Statements



The foregoing financial information is derived from the company's statutory
accounts but does not constitute such statutory accounts for the financial
years ended 30 April 2000 and 30 April 2001within the meaning of Section 240
of the Companies Act 1985 ('the Act') and has not been reported on, but has
been agreed by the company's auditors. Statutory accounts for 2000 have been
delivered to the Registrar of Companies, and those for the year ended 30 April
2001 will be delivered following the company's Annual General Meeting. The
auditors have reported on the accounts for 2000; their report was unqualified
and did not contain statements under Section 237(2) or (4) of the Companies
Act 1985.



2. Dividends



A final dividend of 2.3p net is recommended by the directors payable on 24
September 2001 to all shareholders on the register on 31  August 2001.



3. Earnings per Ordinary Share



The calculation of earnings per share is based on the profit on ordinary
activities after taxation namely £1,389,000 (2000: £1,840,000) and on
20,522,000 (2000: 20,440,000) ordinary shares.



Diluted earnings per share is based on the same earnings and on the weighted
average number of ordinary shares of 20,995,000 (2000: 20,856,000).



4. Annual Report and Accounts



The Annual Report and Accounts will be posted to shareholders on 20 August
2001 Copies will be available by writing to the Company Secretary, Coral
Products PLC, North Florida Rd, Haydock Industrial Estate, Haydock, Merseyside
WA11 9TP (e-mail [e-mail]). The reports may also be viewed on
our web site at www.coralproducts.com after posting to shareholders.



5. Annual General Meeting



The Annual General Meeting will be held at the  Crowne Plaza Hotel,
Manchester, on Friday 21 September 2001 at 12.00 noon.