Trading Update

RNS Number : 7809B

Coral Products PLC

12 January 2018

 

CORAL PRODUCTS PLC

("Coral" or the "Group")

Trading update

Coral Products PLC, a specialist in the design, manufacture and supply of plastic products based in Haydock, Merseyside, announces that following a recent operational review of its production facility at Haydock (carried out in Coral Products (Mouldings) Ltd),  the Group's results for the year ended 30 April 2018 will be materially below market expectations.

The review, which was carried out in conjunction with the introduction of a new ERP system, resulted in slow moving and obsolete stock totalling £225k being written off. In addition, costs of £200k were incurred converting fixed assets acquired from ICM ltd in March 2017 in order to meet automotive industry customer requirements.

Significant capital expenditure incurred during H1 resulted in an increased depreciation charge of £244k. Associated financing costs were £58k.  

As a result of these costs, which total £727k, the Board expects to incur a loss before tax for the 6 months ended 31 October 2017 of around £7k (2016: £718,000 profit).

The outlook for the second half of the financial year ending on 30 April 2018 is expected to result in a small profit after non-recurring items. Recent streamlining of the Haydock workforce will give rise to significant savings in coming months.

Overall for the year ending 30 April 2018, profit before tax for the Group will be materially below market expectations although underlying profit excluding the costs identified as a result of the operational review at Haydock, is expected to be broadly in line with the previous year.

All other Coral companies within the Group have continued to trade profitably.

The Interim results for the 6 months ended 31 October 2017 are currently being finalised and will be published as soon as practicable.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Enquiries

Coral Products plc Joe Grimmond, Executive Chairman	Tel: [phone] Tel: [phone]
Nominated Adviser Cairn Financial Advisers LLP Tony Rawlinson Liam Murray	Tel: [phone]
Broker Daniel Stewart & Co plc David Lawman	Tel: [phone]
Capital Markets Consultants Richard Pearson	Tel: [phone]

 

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