Interim Results

Coral Products PLC 04 December 2002 CORAL PRODUCTS PLC 2002 Interim Results Coral Products PLC, one of Europe's leading manufacturers and suppliers of media packaging for Digital Versatile Disc (DVD), Video and CD, announces interim results for the six months ended 31 October 2002. In his statement to shareholders, Chairman Sir David Rowe-Ham said: 'The six months to 31 October 2002 resulted in a period of significantly greater demand for our products than the comparable period last year. Volume sales of video boxes and DVD cases increased appreciably during this period although our CD case sales remained below expectation.' Summary Six months ended Six months ended 31 October 2002 31 October 2001 Turnover £9.9m £8.4m Pre-tax profits £1.01m £0.59m Earnings per share 3.43p 1.93p Interim dividend 1.05p 1.05p • DVD case sales continue to rise with increased demand. • Video box turnover remains strong. • CD case sales remain below expectation but both customer base and market share improved. • Production capacity increased with the installation of two new DVD case lines. Regarding the business and prospects for the current year, Sir David added: 'We have recently invested £1.8million in two additional DVD case production lines. This has enabled volume sales to increase substantially. The industry is forecasting that demand will continue to grow and we remain committed to ensuring that our capacity responds accordingly.' 'Video box demand has remained solid and we fulfilled the expected increases for Christmas orders at the end of the period. The forward order book continues to enable our capacity to be fully utilised.' 'CD case sales were slightly below the previous year's levels but we are aware of a renewed demand in the market. Our own experience is reflected within the industry and our market share has improved slightly.' 'We remain confident of our prospects in the months ahead.' Enquiries: Coral Products PLC Tel: 01942 272 882 Warren Ferster, Managing Director email: warren.ferster@coralproducts.com Stephen Fletcher, Finance Director email:steve.fletcher@coralproducts.com CHAIRMAN'S STATEMENT As anticipated in my Statement at the A.G.M., the six months to 31 October 2002 resulted in a period of significantly greater demand for our products than the comparable period last year. Volume sales of video boxes and DVD cases increased appreciably during this period although our CD case sales remained below expectation due to lower world-wide activity. We experienced increases in raw material prices, which inevitably had an impact on margins. However, material prices are now falling and, whilst we will not get the full benefit of such decreases, our overall margins will improve. Further capital investment has been made in DVD case production resulting in a substantial increase in capacity. The benefits of this were only obtained in the latter stage of the half-year and we will continue to take advantage of increased volume requirements in the immediate future. Whilst total demand may reduce with the completion of Christmas orders we have a strong order book in all our products as we enter 2003. Trading Turnover for the six months ended 31 October 2002 was £9.9million (2001: £8.4 million) and pre-tax profits increased to £1,012,000 (2001: £585,000). Diluted earnings per share were 3.43p (2001: 1.93p). Interim Dividend An interim dividend of 1.05p net per ordinary share (2001: 1.05p) has been declared for the period. This dividend will be paid on 24 February 2003 to all shareholders on the register on 7 February 2003. Business and Prospects We have recently invested £1.8m in two additional DVD case production lines. This has enabled volume sales to increase substantially. The industry is forecasting that demand will continue to grow and we remain committed to ensuring that our capacity responds accordingly. Video box demand has remained solid and we fulfilled the expected increases for Christmas orders at the end of the period. The forward order book continues to enable our capacity to be fully utilised. CD case sales were slightly below the previous year's levels but we are aware of a renewed demand in the market. Our own experience is reflected within the industry and our market share has improved slightly. We remain confident of our prospects in the months ahead. Sir David Rowe-Ham 4 December 2002 Profit and Loss Account Unaudited Unaudited Audited Half year to Half year to Year to 31 October 31 October 30 April 2002 2001 2002 Notes £'000 £'000 £'000 ----------- ----------- ----------- Continuing operations Turnover (1) 9,899 8,356 16,371 ----------- ----------- ----------- Profit on ordinary activities before interest 1,104 702 1,460 Net interest payable 92 117 227 ----------- ----------- ----------- Profit on ordinary activities before taxation 1,012 585 1,233 Tax on profit on ordinary activities (2) 304 181 399 ----------- ----------- ----------- Profit on ordinary activities after taxation 708 404 834 Dividends 216 217 690 ----------- ----------- ----------- Amount transferred to reserves 492 187 144 ----------- ----------- ----------- Basic earnings per share (3) 3.44p 1.96p 6.77p ----------- ----------- ----------- Diluted earnings per share (3) 3.43p 1.93p 6.62p ----------- ----------- ----------- 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. Basis of preparation The interim results have been prepared on the basis of the accounting policies set out in the Company's accounts for the year ended 30 April 2002, and are neither audited nor reviewed. Balance Sheet Unaudited Unaudited Audited As at As at As at 31 October 31 October 30 April 2002 2001 2002 £'000 £'000 £'000 ----------- ----------- ----------- Tangible fixed assets 14,035 13,009 12,533 Current assets Stocks 1,834 1,166 2,048 Debtors 6,251 5,989 4,781 Cash at bank and in hand - - 84 ----------- ----------- ----------- 8,085 7,155 6,913 Creditors: amounts falling due within one year (9,038) (6,499) (6,465) ----------- ----------- ----------- Net current (liabilities)/assets (953) 656 448 ----------- ----------- ----------- Total assets less current liabilities 13,082 13,665 12,981 Creditors: amounts falling due after more than one year (946) (2,069) (1,345) Provisions for liabilities and charges Deferred taxation (1,382) (1,273) (1,382) ----------- ----------- ----------- Total net assets 10,754 10,323 10,254 ----------- ----------- ----------- Capital and reserves Share capital 206 206 205 Share premium 4,530 4,497 4,497 Capital redemption reserve 2 - 1 Profit and loss account 6,016 5,620 5,551 ----------- ----------- ----------- Equity shareholders' funds 10,754 10,323 10,254 ----------- ----------- ----------- Movements in Shareholders' Funds Unaudited Unaudited Audited As at As at As at 31 October 31 October 30 April 2002 2001 2002 £'000 £'000 £'000 ----------- ----------- ----------- Profit for the period 708 404 834 Dividends 216 217 690 ----------- ----------- ----------- Net additions to equity shareholders' funds 492 187 144 Proceeds of share issued 35 - - Purchase of own shares (27) - (26) ----------- ----------- ----------- 500 187 118 ----------- ----------- ----------- Equity shareholders' funds at the beginning of the period 10,254 10,136 10,136 ----------- ----------- ----------- Equity shareholders' funds at the end of the period 10,754 10,323 10,254 ----------- ----------- ----------- Cash Flow Statement Unaudited Unaudited Audited Half year to Half year to Year to 31 October 31 October 30 April 2002 2001 2002 £'000 £'000 £'000 ----------- ----------- ----------- Net cash inflow from operating activities 1,748 864 2,915 ----------- ----------- ----------- Returns on investments and servicing of finance Net interest paid (92) (117) (231) ----------- ----------- ----------- Taxation received/(paid) 127 (157) (349) ----------- ----------- ----------- Capital expenditure and financial investment Purchase of tangible fixed assets (2,451) (1,411) (1,918) Sale of tangible fixed assets - 3 52 ----------- ----------- ----------- (2,451) (1,408) (1,866) ----------- ----------- ----------- Equity dividends paid (473) (475) (692) ----------- ----------- ----------- Net cash outflow before financing (1,141) (1,293) (223) ----------- ----------- ----------- Financing Issue of share capital 35 - - Repurchase of share capital (27) - (26) Inception of new loans - 286 286 Repayment of loans (75) (175) (248) Repayment of principal under finance leases (751) (890) (1,758) Proceeds of sale and leaseback 863 1,164 1,539 ----------- ----------- ----------- Net cash inflow from financing 45 385 (207) ----------- ----------- ----------- Decrease in cash in the period (1,096) (908) (430) ----------- ----------- ----------- Reconciliation of Net Cashflow to Movement in Net Debt Unaudited Unaudited Audited Half year to Half year to Year to 31 October 31 October 30 April 2002 2001 2002 £'000 £'000 £'000 ----------- ----------- ----------- Decrease in cash in the period (1,096) (908) (430) Net cash outflow from debt and lease financing (37) (385) 181 ----------- ----------- ----------- Change in net debt resulting from cashflows in the period (1,133) (1,293) (249) Net debt at beginning of period (3,284) (3,035) (3,035) ----------- ----------- ----------- Net debt at end of period (4,417) (4,328) (3,284) ----------- ----------- ----------- Reconcilitation of Operating Profit to Net Cash Inflow from Operating Activities Unaudited Unaudited Audited Half year to Half year to Year to 31 October 31 October 30 April 2002 2001 2002 £'000 £'000 £'000 ----------- ----------- ----------- Operating profit 1.104 702 1,460 Depreciation charges 949 876 1,793 Profit on sale of fixed assets - (3) 14 Release of grant income - (1) (1) Decrease/(increase) in stocks 214 727 (155) (Increase)/decrease in debtors (1,470) (572) 636 Increase/(decrease) in creditors 951 (865) (832) ----------- ----------- ----------- Net cash inflow from operating activities 1,748 864 2,915 ----------- ----------- ----------- Notes to the Accounts 1. Turnover All production is based in the United Kingdom. The geographical analysis of turnover is shown below: Unaudited Unaudited Audited Half year to Half year to Year to 31 October 31 October 30 April 2002 2001 2002 £'000 £'000 £'000 ----------- ----------- ----------- United Kingdom 9,171 7,771 14,753 Rest of Europe 728 579 1,607 North America - 6 11 ----------- ----------- ----------- 9,899 8,356 16,371 By Business Activity ----------- ----------- ----------- Media packaging 9,870 8,144 16,031 Housewares 29 212 340 ----------- ----------- ----------- 9,899 8,356 16,371 ----------- ----------- ----------- The classes of business activity do not differ substantially and therefore no separate analysis of operating profits and net assets is disclosed. 2 The charge for taxation on the profit for the period is based upon the estimated effective rate for the full year. 3 The calculation of basic earnings per share is based on the profit on ordinary activities after taxation for the half year namely £708,000 (2001: £404,000) and on 20,571,451 (2001: 20,637,781) ordinary shares being the weighted average number of ordinary shares in issue and ranking for dividend during the period. Calculation of fully diluted earnings per share is based upon a fully diluted weighted average number of ordinary shares of 20,614,574 (2001: 20,918,073). 4 The results for the year ended 30 April 2002 are in abbreviated form and have been extracted from the published accounts as filed with the Registrar of Companies. These were audited and reported upon without qualification by PricewaterhouseCoopers and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985. 5 The interim report will be posted to all shareholders on 4 December 2002 and copies of this and the last published Annual Report and Accounts are available from the Secretary. Coral Products PLC, North Florida Road, Haydock Industrial Estate, Haydock, Merseyside WA11 9TP (Tel: 01942 272882). These reports may also be viewed on our web site at coralproducts.com. This information is provided by RNS The company news service from the London Stock Exchange

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