Update re: supply agreement

RNS Number : 9953E

Coral Products PLC

16 April 2014

 

Coral Products plc

("Coral" or the "Company")

Update re: supply agreement with major on-line retailer

The Company announced in its half yearly report on 11 December 2013 that it had received a purchase order for tooling and sampling in anticipation of a signed ten year supply agreement ("Agreement") with a leading national on-line retailer. 

The Board is pleased to announce that discussions in relation to the Agreement for supply of tote boxes for four new managed sites are at an advanced stage. The on-line retailer is a leading provider of advanced logistical solutions in the rapidly expanding on-line fulfilment sector. The Company will supply a range of totes to support the on-line retailer's growing presence as it capitalises upon its acknowledged expertise in this fast expanding area. The customer has indicated that it expects to place orders that would generate revenues to the Company of approximately £8 million in the first two years of the contract. Initial deliveries are programmed from June 2014 to be produced on Coral's recently installed 1,150 tonne production line.

The Board anticipates that the contract will be signed shortly and will issue a further notification when this is done or in the event that discussions are terminated.

ENQUIRIES:

Coral Products plc                Joe Grimmond, Chairman   Warren Ferster, Chief Executive	Tel: [phone] Tel: [phone]
Cairn Financial Advisers LLP   Avi Robinson / Tony Rawlinson	Tel: [phone]
Hume Capital Securities plc David Lawman	Tel: [phone]
Bankside Consultants             Richard Pearson	Tel: [phone]

 

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