Major Customer in Administration

RNS Number : 2978B

Coral Products PLC

05 January 2015

 

5 January 2015

CORAL PRODUCTS PLC

("Coral" or the "Group")

Major Customer in Administration

The board of Coral has today received notice of the appointment of administrators to The Video Duplicating Company Limited ("VDC"), one of the Group's major media customers to which it supplied DVD and CD boxes. VDC was placed into administration on 22 December 2014.

Whilst the figures are not yet finalised, it is estimated that the financial loss to Coral as a result of VDC's administration could be in the order of £500,000, assuming there is no recovery from the administration. This figure includes both debtors and approximately £25,000 of work in progress where the Coral board believe it may be able to mitigate the loss.

On 8 December 2014, Coral reported a profit before tax for the 6 months ended 31 October 2014 of £450,000. Group management accounts for the 7 months to 30 November 2014 reported a profit of £546,000 before this write off. Net assets at 31 October 2014 were £9.9 million.

Chairman Joe Grimmond commented: "Whilst the anticipated write-off is significant, it is much less so than it would have been in previous years due to the board's strategy of greatly reducing our media exposure. Taking into account profitability on sales to other sectors, the board is confident that the Group can absorb this loss and will overcome this disappointment."

Enquiries

Coral Products plc Joe Grimmond, Executive Chairman	Tel: [phone]
Nominated Adviser Cairn Financial Advisers LLP Avi Robinson / Tony Rawlinson	Tel: [phone]
Broker Hume Capital Securities plc David Lawman / Guy Peters	Tel: [phone]
Capital Markets Consultants Limited Richard Pearson	Tel: [phone]

 

END

 

 

MSCBAMITMBBMBMA