Repayment of loans

RNS Number : 6977R

Coral Products PLC

10 March 2021

 

Coral Products plc

("Coral" or the "Company")

Repayment of loans

Coral Products plc, a specialist in the design, manufacture and supply of plastic products based in Wythenshawe, Manchester is pleased to report that further to the continuing strategic review it has repaid the Haydock property mortgage of £1,600,000. This will result in cash savings in interest and capital repayments of approximately £300,000 per annum. This repayment provides greater flexibility as regards to future financing. The property at Haydock will be revalued for the year end accounts and given that it now has a stronger covenant and will shortly benefit from a new roof, the Company are confident of a valuation uplift from the previous valuation shown in the accounts of £2.5m.

In addition, the Company has repaid £500,000 of the CBIL loan with the intention of repaying in full the outstanding balance of £433,333 this financial year.

Executive Chairman, Joe Grimmond, said : "Following the sale of Coral Products (Mouldings) Limited and Interpack Limited businesses to One51 ES Plastics (UK) Ltd. which completed at the end of February and the exercise announced today to rationalise legacy debts within the business, we are  enabling a return to normal business activity, with three profitable, cash generative businesses, a strong balance sheet and a healthy cash balance. This will support organic growth whilst allowing for us to seek acquisitions to augment our existing activities and reward shareholders for their long term support."

For further information please contact:

Coral Products plc Joe Grimmond, Non-Executive Chairman	Tel: [phone]
Nominated Adviser & Broker WH Ireland Limited Adrian Hadden Darshan Patel Lydia Zychowska Jasper Berry (Corporate Broking)	Tel: [phone]
Capital Markets Consultants Limited Richard Pearson	Tel: [phone]

 

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