Final Results

Coral Products PLC 06 July 2004 CORAL PRODUCTS PLC 2004 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 2004. Commenting upon the Company's trading Sir David Rowe-Ham Chairman of Coral said: 'DVD case sales growth continued as anticipated whilst overall demand for video boxes declined and CD case sales were in line with expectations.' Summary Results (unaudited) Year ended Year ended 30 April 30 April 2004 2003 % change Turnover £20.1m £20.0m +1 % Pre-tax profits £1.6m £2.0m -21 % Fully diluted earnings per share 5.81p 6.89p -16 % Total dividend 3.35p 3.35p same • Further growth in DVD case sales as the market expands and advances strongly. • An additional DVD line has been installed. • The balance sheet remains strong as the Company continues to invest in developing and maintaining its market position. Regarding prospects for the current year, Sir David added: 'Trading in the new financial year has started on a more encouraging basis although operating margins continue to be affected by competitive selling prices and the strength of sterling. As a leading manufacturer in our field we remain confident of our medium term prospects and the promotion of our brand within the industry.' Enquiries: Coral Products plc Tel: 01942 272 882 Warren Ferster, Managing Director Stephen Fletcher, Finance Director Williams de Broe Plc Tel: 020 7588 7511 Michael Shaw CHAIRMAN'S STATEMENT Turnover for the year ended 30 April 2004 amounted to £20.1 million compared with £20.0 million last year and profit before tax for the same period was £1.58 million compared with £2.0 million, a decrease of 21%. Diluted earnings per share totalled 5.81p (2003: 6.89p), a decrease of 16%, with shareholders' funds at 30 April 2004 increasing to £11.2 million (2003: £10.8 million), namely 56p per share (2003: 53p). Dividend Your directors are recommending a maintained final dividend of 2.3p per ordinary share (2003: 2.3p) to be paid on 29 September 2004 to all shareholders on the register on 3 September 2004. This, together with the interim dividend of 1.05p per ordinary share already paid, makes a total dividend for the year of 3.35p (2003: 3.35p). During the year 225,000 1p ordinary shares were bought back by the company reducing the share capital, after the exercising of share options, to a net figure of 20,115,682 shares (2002: 20,299,125 shares). Trading Trading in the first half of the year started well both as to turnover and profitability. Margins and sales came under pressure in the second half with the result that margins remained tight and total turnover for the year showed only a small increase over the previous year. DVD case sales growth continued as anticipated whilst overall demand for video boxes declined and CD case sales were in line with expectations. Prospects Trading in the new financial year has started on a more encouraging basis although operating margins continue to be affected by competitive selling prices and the strength of sterling. As a leading manufacturer in our field we remain confident of our medium term prospects and the promotion of our brand within the industry. Sir David Rowe-Ham Chairman 6 July 2004 MANAGING DIRECTOR'S REVIEW OF OPERATIONS The year to April 2004 showed a small increase in turnover but a reduced profit due mainly to a fall in operating margins. The trading conditions were particularly difficult in the second half of the year when selling prices were put under pressure from over-capacity in the marketplace and as a consequence of the strength in sterling. Overall turnover increased by 1% to £20.1 million but the operating environment led to a 21% fall in profits to £1.6 million. Turnover now relates almost entirely to media packaging products together with a range of photo-finishing boxes. The change in market requirement from Video to DVD led to similar changes in our sales mix. We continued to increase capital investment into DVD production. This has enabled full advantage to be taken of the shift in customer demand. DVD case sales now supersede Video box sales and the differential will increase significantly during the coming year. CD case sales continued at roughly the same levels although there was a decrease in margins attained. The market has stabilised for this product after two years of decline. The production of photo-finishing boxes continued to make a positive contribution to sales. Further investment was made during the year in an additional DVD case line at a total cost of over £1 million. This has increased our production capacity to 150 million units per annum to meet the expected further demands for this product. Whilst the recent period has been difficult for trading I remain confident of maintaining our place in the market as a leader in the production of media packaging products. As always I must express my gratitude to all members of staff and management for their hard work during the year. Warren Ferster Managing Director 6 July 2004 On the 6 July 2004, the directors of Coral Products plc approved the following statements of the unaudited preliminary results of the company for the financial year ended 30 April 2004. Profit and Loss Account For the year ended 30 April 2004 2004 2003 (unaudited) (audited) £'000 £'000 ----------- ----------- Continuing operations Turnover 20,115 20,004 Cost of sales (13,608) (13,353) ----------- ----------- Gross Profit 6,507 6,651 Distribution costs (713) (727) Administrative expenses (4,043) (3,730) ----------- ----------- Operating profit 1,751 2,194 Interest receivable 9 2 Interest payable (184) (194) ----------- ----------- Profit on ordinary activities before taxation 1,576 2,002 Tax on profit on ordinary activities (398) (586) ----------- ----------- Profit on ordinary activities after taxation 1,178 1,416 Dividends (674) (682) ----------- ----------- Retained profit for the financial year 504 734 ----------- ----------- Basic earnings per ordinary share 5.83p 6.91p Diluted earnings per share 5.81p 6.89p ----------- ----------- 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 Equity Shareholders' Funds For the year ended 30 April 2004 2004 2003 (unaudited) (audited) £'000 £'000 ----------- ----------- Profit for the financial year 1,178 1,416 Dividends (675) (682) ----------- ----------- Net additions to equity shareholders' funds 503 734 Proceeds of shares issued 17 39 Purchase of own shares (124) (182) ----------- ----------- 396 591 ----------- ----------- Equity shareholders' funds at beginning of year 10,845 10,254 ----------- ----------- Equity shareholders' funds at end of the year 11,241 10,845 ----------- ----------- Balance Sheet At 30 April 2004 2004 2003 (unaudited) (audited) £'000 £'000 ----------- ----------- Fixed assets Tangible assets 13,968 13,951 ----------- ----------- Current assets Stocks 3,119 2,258 Debtors 3,678 4,662 Cash at bank and in hand 14 433 ----------- ----------- 6,811 7,353 Creditors: amount falling due within one year (7,001) (7,474) ----------- ----------- Net current (liabilities) (190) (121) ----------- ----------- Total assets less current liabilities 13,778 13,830 Creditors: amounts falling due after more than one year (988) (1,430) Provisions for liabilities and charges (1,548) (1,555) ----------- ----------- Net assets 11,242 10,845 ----------- ----------- Capital and reserves Called up share capital 201 203 Share premium account 4,551 4,534 Capital Redemption reserve 7 5 Profit and loss account 6,483 6,103 ----------- ----------- Equity shareholders' funds 11,242 10,845 ----------- ----------- Cash Flow Statement For the year ended 30 April 2004 2004 2003 (unaudited) (audited) £'000 £'000 ----------- ----------- Net cash inflow from operating activities 2,949 5,256 ----------- ----------- Return on investments and servicing of finance Interest received - 2 Interest paid (64) (69) Interest paid on finance leases (99) (125) ----------- ----------- (163) (192) ----------- ----------- Taxation (811) (97) ----------- ----------- Capital expenditure and financial investment Purchase of tangible fixed assets (2,166) (3,392) Sale of tangible fixed assets - 18 ----------- ----------- (2,166) (3,374) ----------- ----------- Equity dividends paid (678) (688) ----------- ----------- Net cash (outflow) / inflow before financing (869) 905 ----------- ----------- Financing Issue of Share Capital 17 39 Repurchase of Share Capital (124) (182) Repayments of principal under finance leases (1,552) (1,731) Proceeds of sale and leaseback 969 1,590 Repayment of loans (163) (153) ----------- ----------- (853) (437) ----------- ----------- (Decrease) / increase in cash (1,722) 468 ----------- ----------- Other Financial Statements For the year ended 30 April 2004 Reconciliation of Operating Profit to Net Cash Inflow from Operating Activities 2004 2003 (unaudited) (audited) £'000 £'000 ----------- ----------- Operating Profit 1,751 2,194 Depreciation on tangible fixed assets 2,149 1,953 Loss on disposal of tangible fixed assets - 3 Release of grant income (1) (1) (Increase) in stocks (861) (210) Decrease/(increase) in trade debtors 841 (56) Decrease in other debtors, prepayments and accrued income 143 175 (Decrease)/increase in trade creditors (1,059) 923 Increase in other taxes and social security creditors 30 82 (Decrease)/Increase in accruals and deferred (32) 86 income (Decrease)/Increase in other creditors (12) 107 ----------- ----------- Net cash inflow from operating activities 2,949 5,256 ----------- ----------- Reconciliation of Net Cash Flow to Movement in Net Debt 2004 2003 (unaudited) (audited) £'000 £'000 ----------- ----------- (Decrease)/increase in cash in the year (1,722) 468 Net cash outflow from debt and lease financing 746 294 ----------- ----------- Change in net debt resulting from cashflows (976) 762 ----------- ----------- Net debt at 1 May 2003 (2,522) (3,284) ----------- ----------- Net debt at 30 April 2004 (3,498) (2,522) ----------- ----------- Notes 1. Financial Statements The preliminary results for the year ended 30 April 2004 are unaudited, with the audit report on the full accounts yet to be signed. The preliminary results for the year ended 30 April 2004 have been prepared on the basis of accounting policies set out in the Report and Accounts for the year ended 30 April 2003. The comparative figures for the year ended 30 April 2003 do not constitute statutory accounts. These figures have been extracted from the audited accounts for that year which have been delivered to the Registrar of Companies and on which the auditors issued an unqualified report which did not contain a statement under either Section 237(2) or (3) of the Companies Act 1985. The aforementioned financial information does not amount to full statutory accounts within the meaning of Section 240 of the Companies Act 1985 (as amended). 2. Dividends A final dividend of 2.3p net is recommended by the directors to be payable on 29 September 2004 to all shareholders on the register on 3 September 2004. 3. Earnings per Ordinary Share The calculation of earnings per share is based on the profit on ordinary activities after taxation namely £1,178,000 (2003: £1,416,000) and on 20,212,000 (2003: 20,498,000) ordinary shares. Diluted earnings per share is based on the same earnings and on the weighted average number of ordinary shares of 20,292,000 (2003: 20,542,000). 4. Annual Report and Accounts The Annual Report and Accounts will be posted to shareholders before 25 August 2004. 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 mail@coralproducts.com). These Reports may also be downloaded or viewed through our web-site at www.coralproducts.com. 5. Annual General Meeting The Annual General Meeting will be held at the Lowry Hotel, Chapel Wharf, Manchester, on Friday 24 September 2004 at 12.00 noon. This information is provided by RNS The company news service from the London Stock Exchange

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