Trading Update

RNS Number : 2581C

Coral Products PLC

15 April 2013

 



15 April 2013

Coral Products plc

("Coral" or "the Group")

Trading Update

The board of Coral announces that the poor trading conditions referred to in the trading update on 6 February 2013 have continued in the intervening period and that, as a result, the Group's results for the year to 30 April 2013 will be substantially below the market's revised expectations.

Media sales, especially DVD sales, have been very disappointing in the last two months and are a major factor in the poor second half. Local authority cuts have had some effect on the Group's recycling division and the extended cold weather has impacted on the launch of the Group's new ice cream food packaging products.

Nevertheless the board expects to return an overall profit for the year with EBITDA having shown significant growth.

As previously announced, Coral has tooled and introduced a range of new packaging products which are being rolled out nationally and completed the acquisition of the freehold of its production facility in Haydock. This purchase is expected to result in overhead savings, net of interest costs, of approximately £250,000 in the next financial period.

Whilst the Group will continue to develop markets outside of the media sector, the sale of HMV and Blockbuster has stabilised the DVD market and the Group is seeing signs of increased activity.

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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