Interim Management Statement
3 March 2011
CORAL PRODUCTS PLC
INTERIM MANAGEMENT STATEMENT
Coral Products PLC a leading supplier of plastic media packaging and recycling products presents its Interim Management Statement as at 3 March 2011 as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3.
The Company published its half yearly report to 31 October 2010 on 1 December 2010. This Interim Management Statement summarises any further relevant information for the period since that Report.
Highlights
· Results continue to be in line with forecast.
· New 5 litre caddy added to range of recycling products
· Operating margins remain low as a consequence of significant raw material price increases
Material Events and Transactions
There are no material events or transactions to report for the period and performance has continued roughly in line with Directors' expectations.
Trading Activity
The Company continues to face challenging conditions in its markets although results for the year to 30 April 2011 are expected to be in line with management's expectations.
The core media based products continued to deliver high sales up to Christmas although margins suffered due to further increases in the prices of raw materials. Since then demand has been in line with forecast.
The Company has continued to apply for new contracts to supply recycling products to local authorities. In furthering its strategic plan a 5 litre caddy has recently been added to its range of kitchen and kerbside food waste containers ('caddies'). Whilst UK councils are currently facing a difficult time with cost controls, the benefits of reducing food waste disposal in landfill sites is still expected to result in an increase in contractual opportunities.
Trade moulding has maintained its solid performance and orders have continued to be strong and in line with our expectations.
Operating margins have stayed under pressure as a consequence of the significantly increased raw material prices resulting from supply constraints and rises in oil prices. It remains difficult to pass on these price increases in current market conditions. Overall, the Company continues to report a positive EBITDA and the Board are pleased with the progress being made in line with the plan following its strategic review.
Financial Position
There have been no significant changes in the position of the Company over the period and net debt remains at £0.8m broadly in line with the position in its half yearly statement to 31 October 2010.
Outlook
The Company continues to focus on opportunities to grow the business and progress in marketing and developing new products and obtaining supplier recognition in the recycling product markets. Trading conditions remain difficult but as the Company develops into a larger supplier in new markets it will be able to benefit from increases in economies of scale. The Board are firmly of the opinion that this strategy will deliver its aim of improving long term shareholder value.
For further information call:
Warren Ferster / Stephen Fletcher
Chief Executive / Company Secretary
Coral Products PLC
01942 272882
Enquiries can be directed to: mail@coralproducts.com
This Interim Management Statement contains certain forward-looking statements which have been made by the Directors in good faith using information available up until the date they approved the Statement. Forward-looking statements should be regarded with caution as by their nature such statements involve risk and uncertainties relating to events and circumstances that may occur in the future. Actual results may differ from those expressed in such statements, depending on the outcome of these uncertain future events
This information is provided by RNS