Coral Products PLC Trading Update (7809B)
January 12 2018 - 9:48AM
UK Regulatory
TIDMCRU
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 GBP225k being written off. In addition,
costs of GBP200k 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 GBP244k. Associated financing
costs were GBP58k.
As a result of these costs, which total GBP727k, the Board
expects to incur a loss before tax for the 6 months ended 31
October 2017 of around GBP7k (2016: GBP718,000 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 Tel: 07703
Joe Grimmond, Executive Chairman 518 148
Tel: 01942
272 882
Nominated Adviser Tel: 020 7213
Cairn Financial Advisers LLP 0880
Tony Rawlinson
Liam Murray
Broker Tel: 020 7776
Daniel Stewart & Co plc 6550
David Lawman
Capital Markets Consultants Tel: 07515
Richard Pearson 587 184
This information is provided by RNS
The company news service from the London Stock Exchange
END
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