Interim Results

Coral Products PLC 02 December 2003 CORAL PRODUCTS PLC 2003 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 2003. In his statement to shareholders, Chairman Sir David Rowe-Ham said: 'Business in the first quarter started slowly, however, there has been a major improvement in the past three months, which has enabled us to report steady and improving profits and increased earnings per share for the half year to 31 October 2003.' Summary Six months Six months ended ended 31 October 2003 31 October 2002 Turnover £11.0m £9.9m Pre-tax profits £1.04m £1.01m Earnings per share 3.58p 3.43p Interim dividend 1.05p 1.05p • DVD case sales continue to rise with increased demand. • Video box demand at full capacity at the end of October. • CD case sales in line with expectation. • DVD production capacity increased with the installation of a further new DVD case line. Regarding the business and prospects for the current year, Sir David added: 'Volume sales of DVD cases increased significantly during the period whilst CD case sales were in line with expectations and Video box demand reached full capacity by the end of October. Sales of Photo-finishing products remained strong especially in the first quarter.' 'Our DVD case production capacity has further been increased by expenditure on a new production line costing £1million. This facility came into operation towards the end of the half year with returns only recently coming on stream. This investment completes our plans to implement substantial production capacity in this particular area and, for the immediate future, we have no additional large-scale capital expenditure outstanding.' 'We are much encouraged by the progress made so far and remain confident of our trading prospects for the full financial year.' 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 commented upon in my Statement at the Annual General Meeting, business in the first quarter started slowly, however, there has been a major improvement in the past three months, which has enabled us to report steady and improving profits and increased earnings per share for the half year to 31 October 2003. Results Turnover for the six months ended 31 October 2003 increased to £11.0 million (2002: £9.9 million) and pre-tax profits increased to £1,041,000 (2002: £1,012,000). Diluted earnings per share were 3.58p (2002: 3.43p). Interim Dividend An interim dividend of 1.05p net per ordinary share (2002: 1.05p) has been declared for the period. This dividend will be paid on 23 February 2004 to all shareholders on the register on 6 February 2004. Business and Prospects Volume sales of DVD cases increased significantly during the period whilst CD case sales were in line with expectations and Video box demand reached full capacity by the end of October. Sales of Photo-finishing products remained strong especially in the first quarter. Our DVD case production capacity has further been increased by expenditure on a new production line costing £1million. This facility came into operation towards the end of the half year with returns only recently coming on stream. This investment completes our plans to implement substantial production capacity in this particular area and, for the immediate future, we have no additional large-scale capital expenditure outstanding. Raw material prices have fallen during the period, with the result that margins have improved and are currently in line with forecasts. It is anticipated that the recent high demand will reduce as we fulfil our Christmas order book, however, we are much encouraged by the progress made so far and the good relationships that we continue to develop with our major customers. We remain confident of our trading prospects for the full financial year. Sir David Rowe-Ham 2 December 2003 Profit and Loss Account Unaudited Unaudited Audited Half year to Half year to Year to 31 October 31 October 30 April 2003 2002 2003 Notes £'000 £'000 £'000 ----------- ----------- ----------- Continuing operations Turnover (1) 10,960 9,899 20,004 ----------- ----------- ----------- Profit on ordinary activities before interest 1,118 1,104 2,194 Net interest payable 77 92 192 ----------- ----------- ----------- Profit on ordinary activities before taxation 1,041 1,012 2,002 Tax on profit on (2) 312 304 586 ordinary activities ----------- ----------- ----------- Profit on ordinary activities after taxation 729 708 1,416 Dividends 212 216 682 ----------- ----------- ----------- Amount transferred to 517 492 734 reserves ----------- ----------- ----------- Basic earnings per (3) 3.60p 3.44p 6.91p share ----------- ----------- ----------- Diluted earnings per (3) 3.58p 3.43p 6.89p share ----------- ----------- ----------- 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 2003, and are neither audited nor reviewed. Balance Sheet Unaudited Unaudited Audited As at As at As at 31 October 31 October 30 April 2003 2002 2003 £'000 £'000 £'000 ----------- ----------- ----------- Tangible fixed assets 14,636 14,035 13,951 Current assets Stocks 2,454 1,834 2,258 Debtors 6,234 6,251 4,662 Cash at bank and in hand - - 433 ----------- ----------- ----------- 8,688 8,085 7,353 Creditors: amounts falling due within one year (9,002) (9,038) (7,474) ----------- ----------- ----------- Net current liabilities (314) (953) (121) ----------- ----------- ----------- Total assets less current 14,322 13,082 13,830 liabilities Creditors: amounts falling due after more than one year (1,488) (946) (1,430) Provisions for liabilities and charges Deferred taxation (1,555) (1,382) (1,555) ----------- ----------- ----------- Total net assets 11,279 10,754 10,845 ----------- ----------- ----------- Capital and reserves Share capital 202 206 203 Share premium 4,550 4,530 4,534 Capital redemption reserve 7 2 5 Profit and loss account 6,520 6,016 6,103 ----------- ----------- ----------- Equity shareholders' funds 11,279 10,754 10,845 ----------- ----------- ----------- Movements in Shareholders' Funds Unaudited Unaudited Audited As at As at As at 31 October 31 October 30 April 2003 2002 2003 £'000 £'000 £'000 ----------- ----------- ----------- Profit for the period 729 708 1,416 Dividends 212 216 682 ----------- ----------- ----------- Net additions to equity shareholders' funds 517 492 734 Proceeds of share issued 17 35 39 Purchase of own shares (100) (27) (182) ----------- ----------- ----------- 434 500 591 ----------- ----------- ----------- Equity shareholders' funds at the beginning of the period 10,845 10,254 10,254 ----------- ----------- ----------- Equity shareholders' funds at the end of the period 11,279 10,754 10,845 ----------- ----------- ----------- Cash Flow Statement Unaudited Unaudited Audited Half year to Half year to Year to 31 October 31 October 30 April 2003 2002 2003 £'000 £'000 £'000 ----------- ----------- ----------- Net cash inflow from operating 726 1,748 5,256 activities ----------- ----------- ----------- Returns on investments and servicing of finance Net interest paid (77) (92) (192) ----------- ----------- ----------- Taxation received/(paid) 3 127 (97) ----------- ----------- ----------- Capital expenditure and financial investment Purchase of tangible fixed (1,744) (2,451) (3,392) assets Sale of tangible fixed assets - - 18 ----------- ----------- ----------- (1,744) (2,451) (3,374) ----------- ----------- ----------- Equity dividends paid (467) (473) (688) ----------- ----------- ----------- Net cash (outflow)/inflow before (1,559) (1,141) 905 financing ----------- ----------- ----------- Financing Issue of share capital 17 35 39 Repurchase of share capital (100) (27) (182) Proceeds of new asset finance 969 863 1,590 Repayment of principal under (803) (751) (1,731) finance leases Repayment of loans (80) (75) (153) ----------- ----------- ----------- Net cash inflow/(outflow) from 3 45 (437) financing ----------- ----------- ----------- (Decrease)/Increase in cash in (1,556) (1,096) 468 the period ----------- ----------- ----------- Reconciliation of Net Cash Flow to Movement in Net Debt Unaudited Unaudited Audited Half year to Half year to Year to 31 October 31 October 30 April 2003 2002 2003 £'000 £'000 £'000 ----------- ----------- ----------- (Decrease)/Increase in cash in (1,556) (1,096) 468 the period Net cash inflow from debt and lease financing (86) (37) 294 ----------- ----------- ----------- Change in net debt resulting from cashflows in the period (1,642) (1,133) 762 Net debt at beginning of period (2,522) (3,284) (3,284) ----------- ----------- ----------- Net debt at end of period (4,164) (4,417) (2,522) ----------- ----------- ----------- Reconciliation 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 2003 2002 2003 £'000 £'000 £'000 ----------- ----------- ----------- Operating profit 1,118 1,104 2,194 Depreciation charges 1,059 949 1,953 Loss on sale of fixed assets - - 3 Release of grant income - - (1) (Increase)/decrease in stocks (196) 214 (210) (Increase)/decrease in debtors (1,754) (1,470) 119 Increase in creditors 498 951 1,198 ----------- ----------- ----------- Net cash inflow from operating 725 1,748 5,256 activities ----------- ----------- ----------- 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 2003 2002 2003 £'000 £'000 £'000 ----------- ----------- ----------- United Kingdom 9,107 9,171 17,887 Rest of Europe 1,853 728 2,117 ----------- ----------- ----------- 10,960 9,899 20,004 ----------- ----------- ----------- By Business Activity Media packaging 10,960 9,899 20,004 ----------- ----------- ----------- 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 £729,000 (2002: £708,000) and on 20,267,271 (2002: 20,571,451) 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 20,387,566 (2002: 20,614,574). 4 The results for the year ended 30 April 2003 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 LLP 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 2 December 2003 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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