Payment of Earnout Consideration

RNS Number : 6348Z

Coral Products PLC

19 March 2012

 



19 March 2012

CORAL PRODUCTS PLC

("Coral" or the "Company")

Payment of Earnout Consideration

Coral is pleased to announce that it has now paid the earnout consideration in relation to the acquisition of Interpack Limited ("Interpack").

In accordance with the terms of the acquisition, as detailed in the AIM admission document sent to shareholders on 19 August 2011, the earnout consideration was based on the net profit before tax achieved by Interpack in the accounts for Interpack for the year ended 31 December 2011 (''2011 Profit''). Specifically, in the event that 2011 Profit was £0.8 million, the earnout consideration would be £0.9 million and would be increased at a rate of £6.50 for every £1 by which the 2011 Profit exceeded £0.8 million (subject to a maximum increase of £195,000).

The 2011 Profit exceeded £0.83 million and hence the total earnout consideration due was the maximum £1.095 million.

Management accounts for the period since the acquisition of Interpack show that Interpack has remained profitable in the period and is expected to make a significant contribution to the Company's results for the year ended 30 April 2012.

Chairman Joe Grimmond commented: "We are delighted with the acquisition of Interpack which has delivered revenue and profit contribution in line with expectations and opened up significant new opportunities to Coral in the food container manufacturing sector. Further benefits of the acquisition and its successful integration are expected to be realised in the next financial year."

Enquiries

Coral Products plc Joe Grimmond, Non-Executive Chairman Warren Ferster, Chief Executive & Managing Director	Tel: [phone] Tel: [phone]
Nominated Adviser Cairn Financial Advisers LLP Avi Robinson / Tony Rawlinson	Tel: [phone]
Broker XCAP Securities plc David Lawman / Adrian Kirk	Tel: [phone]
Bankside Consultants Richard Pearson	Tel: [phone]

 

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