Interim Results

Coral Products PLC 7 December 2000 For Immediate Release 7 December 2000 2001 INTERIM RESULTS Record pre-tax profits; Major Capital Investment continues; Increased Dividend Coral Products PLC, one of Europe's leading manufacturers and suppliers of media packaging for Digital Versatile Disc (DVD), Video and CD, announces its interim results for the half year ended 31 October 2000. Commenting, Chairman Sir David Rowe-Ham said: 'I am pleased to report an encouraging demand for our media packaging products in challenging market conditions. We believe that UK and European markets will follow the United States in terms of DVD sales growth and that we are well positioned to take advantage of this market trend.' Summary Half year Half year % change ended ended 31 October 2000 31 October 1999 * Turnover £9.90m £7.4m +34% * Pre-tax profits £1.48m £1.41m +5% * Fully diluted earnings per 4.87p 4.65p +4.7% share * Interim dividend 1.05p 1.0p +5% * Continuing investment in media packaging production facilities * Further expansion of DVD case manufacture * Investment in Haydock site, now comprising 27 up to date production lines On prospects for the second half, Sir David said: 'Demand, at the present time, continues to be good in our core media packaging business. Providing industry demand is maintained in the New Year we look to continue to improve our trading performance in the second half.' Enquiries: Coral Products PLC Tel: 01942 272 882 www.coralproducts.com Warren Ferster, Managing Director Mobile: 07785 223 039 David Shalom, Finance Director Mobile: 07771 603 995 Binns & Co Peter Binns/Paul Vann Tel: 020 7786 9600 CHAIRMAN'S STATEMENT I am pleased to report that an encouraging demand for our media packaging products in the first half of our financial year has led to a 5% increase in pre-tax profits compared with the same period last year. Increased selling prices and rising sales volumes have contributed to a 34% increase in turnover over the same period. The period has seen challenging market conditions with both raw material price pressures and the strength of sterling combining to narrow margins. Margins were protected where possible by the linkage of selling prices to raw material costs with certain of our larger customers. Trading Turnover for the six months ended 31 October 2000 increased to £9.90 million (1999: £7.40 million) and pre-tax profits increased by 5% to £1,477,000 (1999: £1,407,000). Diluted earnings per share has increased by 4.7% to 4.87p (1999: 4.65p). Interim Dividend An interim dividend of 1.05p net per ordinary share (1999: 1.0p) has been declared representing an increase of 5% as compared with the same period last year. This dividend will be paid on 26 February 2001 to all shareholders on the register on 9 February 2001. Business In the period we have invested heavily in our Haydock site expanding our production facilities and upgrading the power supply to accommodate existing equipment, which now comprises 27 up to date production lines. We continue our capital investment programme to enlarge and update our media packaging production facilities with particular emphasis on DVD case manufacture. We believe that the UK and European markets will follow the United States in terms of significant sales growth in DVDs and that we are now well positioned to take advantage of this market trend. Additional machinery has been ordered for Spring 2001 to expand our DVD capacity and further improve our production efficiency in this new, but rapidly expanding area of our business. Prospects Trading conditions remain testing but demand, at the present time, continues to be good in our core media packaging business. Providing industry demand is maintained in the New Year we look to continue to improve our trading performance in the second half. Sir David Rowe-Ham Chairman 7 December 2000 PROFIT AND LOSS ACCOUNT Unaudited Half year to Unaudited Audited 31 October 2000 Half year to Year to 31 October 1999 30 April 2000 £'000 £'000 £'000 Notes Continuing operations Turnover (1) 9,902 7,396 14,969 Profit on ordinary activities before 1,595 1,466 2,726 interest Net interest payable (118) (59) (118) Profit on ordinary activities before 1,477 1,407 2,608 taxation Tax on profit on (2) (458) (436) (768) ordinary activities Profit on ordinary activities after 1,019 971 1,840 taxation Dividends (215) (204) (674) Amount transferred to 804 767 1,166 reserves Basic earnings per (3) 4.99p 4.75p 9.00p share Diluted earnings per (3) 4.87p 4.65p 8.82p share The Company has no recognized gains and losses other than the profits above and therefore no separate statement of total recognised gains and losses has been presented. Basis for preparation The interim results have been prepared on the basis of the accounting policies set out in the Company's accounts for the year ended 30 April 2000, and are neither audited nor reviewed. BALANCE SHEET Unaudited Unaudited Audited As at As at As at 31 October 31 October 30 April 2000 1999 2000 £'000 £'000 £'000 Tangible fixed assets 12,410 10,223 10,741 Current assets Stocks 1,555 1,304 2,515 Debtors 6,703 4,169 4,914 Cash at bank and in hand 20 272 191 8,278 5,745 7,620 Creditors: amounts falling due within one year (7,085) (4,617) (6,662) Net current assets 1,193 1,128 958 Total assets less current liabilities 13,603 11,351 11,699 Creditors: amounts falling due after more than one year (2,192) (1,491) (1,242) Provisions for liabilities and charges Deferred taxation (1,224) (876) (1,074) Total net assets 10,187 8,984 9,383 Capital and reserves Share capital 204 204 204 Share premium 4,443 4,443 4,443 Profit and loss account 5,540 4,337 4,736 Equity shareholders' funds 10,187 8,984 9,383 MOVEMENT IN SHAREHOLDERS' FUNDS Unaudited Unaudited Audited As at As at As at 31 October 31 October 30 April 2000 1999 2000 £'000 £'000 £'000 Profit for the period 1,019 971 1,840 Dividends (215) (204) (674) Net additions to equity shareholders' funds 804 767 1,166 Equity shareholders' funds at the beginning of the period 9,383 8,217 8,217 Equity shareholders' funds at the end of the 10,187 8,984 9,383 period CASHFLOW STATEMENT Unaudited Unaudited Audited Half year to Half year to Year to 31 October 31 October 30 April 2000 1999 2000 £'000 £'000 £'000 Net cash inflow from operating 878 1,210 3,190 activities Returns on investment and servicing of finance Net interest paid (118) (59) (112) Taxation (132) - (635) Capital expenditure and financial investment Purchase of tangible fixed assets (2,385) (2,108) (3,288) Sale of tangible fixed assets - 20 20 (2,385) (2,088) (3,268) Equity dividends paid (470) (409) (612) Net cash outflow before financing (2,227) (1,346) (1,437) Financing Inception of new loans 500 - - Repayment of loans (28) (20) (41) Payment of principal under finance (578) (495) (928) leases Proceeds of sale and leaseback 1,593 1,336 1,800 Net cash inflow from financing 1,487 821 831 Decrease in cash (740) (525) (606) CASHFLOW STATEMENT continued Reconciliation of Net Cashflow to Movement in Net Debt Unaudited Unaudited Audited Half year to Half year to Year to 31 October 31 October 30 April 2000 1999 2000 £'000 £'000 £'000 Decrease in cash in the period (740) (525) (606) Cash outflow from debt and lease 606 515 969 financing Change in net debt resulting from (134) (10) 363 cashflows New loans and proceeds of sale and (2,093) (1,336) (1,800) leaseback Movement in net debt in the period (2,227) (1,346) (1,437) Net debt at beginning of period (1,927) (490) (490) Net debt at end of period (4,154) (1,836) (1,927) Reconciliation of Operating Profit to Net Cash Inflow from Operating Activities Operating profit 1,595 1,466 2,726 Depreciation charges 716 625 1,284 Profit on sale of fixed assets - (8) (5) Release of grant income (1) (1) (1) Decrease/(Increase) in stocks 960 43 (1,168) Increase in debtors (1,789) (948) (1,693) (Decrease)/Increase in creditors (603) 33 2,047 Net cash inflow from operating activities 878 1,210 3,190 NOTES TO THE ACCOUNTS 1. Turnover All production is based in the United Kingdom. The geographical analysis of turnover is shown below: Unaudited Unaudited Audited Half year to 31 October Half year to Year to 2000 31 October 30 April £'000 1999 2000 £'000 £'000 United Kingdom 8,857 5,712 11,705 Rest of Europe 1,008 1,684 3,115 North America 37 - 149 9,902 7,396 14,969 By Business Activity Media packaging 9,366 6,738 13,643 Housewares 536 658 1,326 9,902 7,396 14,969 The classes of business activity do not differ substantially and therefore no separate analysis of operating profits and net assets is disclosed. 2. The charge for taxation on the profit for the period is based upon the estimated effective rate for the full year. 3. The calculation of earnings per share is based on the profit on ordinary activities after taxation for the half year namely £1,019,000 (1999: £ 971,000) and on 20,440,000 (1999: 20,440,000) ordinary shares being the weighted average number of ordinary shares in issue and ranking for dividend during the period. Calculation of fully diluted earnings per share is based upon a fully diluted weighted average number of ordinary shares of 20,917,943 (1999: 20,877,757). 4. The results for the year ended 30 April 2000 are in abbreviated form and have been extracted from the published accounts as filed with the Registrar of Companies. These were audited and reported upon without qualification by PricewaterhouseCoopers and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985. 5. The interim report will be posted to all shareholders on 11 December 2000 and copies of this and the last published Annual Report and Accounts are available from the Secretary, Coral Products PLC, North Florida Road, Haydock Industrial Estate, Haydock, Merseyside, WA11 9TP (Tel: 01942 272 882). These reports may also be viewed on our web site at www.coralproducts.com.

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