Interim Results

Coral Products PLC 02 December 2004 CORAL PRODUCTS PLC 2004 Interim Results Coral Products PLC ('Coral' or the 'Company'), one of Europe's leading manufacturers and suppliers of media packaging for Digital Versatile Disc (DVD), Video and Compact Disc (CD), announces interim results for the six months ended 31 October 2004. Summary Six months Six months ended ended 31 October 31 October 2004 2003 Turnover £10.0m £11.0m Pre-tax profits £0.56m £1.04m Earnings per share 1.93p 3.58p Interim dividend 0.70p 1.05p * CD case sales increased significantly in the period. * DVD box capacity increased to meet the anticipated demand. * Video box sales fall as a result of the change to DVD. * Margins under pressure due to raw material price increases. Chairman Sir David Rowe-Ham said: 'Trading for the first half of our financial year showed a reduced profit arising primarily from a decline in operating margins due to higher raw material prices. Selling prices have also suffered as a result of over-capacity in the market and the strength of sterling.' 'DVD case sales are now well in excess of those of Video boxes' Regarding prospects for the current year, Sir David added: 'Profits for the full year will not reach those of last year and, as we enter the second half, trading conditions remain difficult within our industry. We have maintained our share of the market and have established a position whereby we can benefit from the changeover in media format from Video to DVD.' Enquiries: Coral Products PLC Tel: 01942 272 882 Warren Ferster, Managing Director Mobile: 07785 223 039 Stephen Fletcher, Finance Director CHAIRMAN'S STATEMENT Trading for the first half of our financial year showed a reduced profit arising primarily from a decline in operating margins due to higher raw material prices. Selling prices have also suffered as a result of over-capacity in the market and the strength of sterling. Raw material prices increased throughout the period as production supplies were cut and demand became more intense. Despite these adverse conditions, we are managing to maintain adequate stock levels. Sales for CD cases increased significantly during the period and there was also some increase in DVD case sales. However, overall turnover declined due to the reductions in Video box sales and photo-finishing box sales, which were greater than anticipated. DVD case sales are now well in excess of those of Video boxes. The media industry has witnessed a period of lower activity as the change from Video to DVD formats has become established, and we have taken this opportunity to ensure that we have the right production capacity to meet the expected increase in demand following the changeover. We have increased our DVD case manufacturing capacity by converting a part of our Video box production to DVD. Trading Turnover for the six months ended 31 October 2004 was £10.0 million (2003: £11.0 million) and pre-tax profits decreased to £556,000 (2003: £1,041,000). Diluted earnings per share were 1.93p (2003: 3.58p). Interim Dividend An interim dividend of 0.70p net per ordinary share (2003: 1.05p) has been declared for the period. This dividend will be paid on 23 February 2005 to all shareholders on the register on 4 February 2005. Prospects Profits for the full year will not reach those of last year and, as we enter the second half, trading conditions remain difficult within our industry. We have maintained our share of the market and have established a position whereby we can benefit from the changeover in media format from Video to DVD. Sir David Rowe-Ham 2 December 2004 Profit and Loss Account Notes Unaudited Unaudited Audited Half year to Half year to Year to 31 October 31 October 30 April 2004 2003 2004 £'000 £'000 £'000 ----------- ----------- ----------- Continuing operations Turnover (1) 10,014 10,960 20,115 ----------- ----------- ----------- Profit on ordinary 660 1,118 1,751 activities before interest Net interest payable (104) (77) (175) ----------- ----------- ----------- Profit on ordinary 556 1,041 1,576 activities before taxation Tax on profit on ordinary activities (2) (167) (312) (398) ----------- ----------- ----------- Profit on ordinary 389 729 1,178 activities after taxation Dividends (141) (212) (674) ----------- ----------- ----------- Amount transferred to 248 517 504 reserves ----------- ----------- ----------- Basic earnings per share (3) 1.93p 3.60p 5.83p ----------- ----------- ----------- Diluted earnings per share (3) 1.93p 3.58p 5.81p ----------- ----------- ----------- The Company has no recognised gains and losses other than the profits above and therefore no separate statement of total recognised gains and losses has been presented. Basis of 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 2004, and are neither audited nor reviewed. Balance Sheet Unaudited Unaudited Audited As at As at As at 31 October 31 October 30 April 2004 2003 2004 £'000 £'000 £'000 ----------- ----------- ----------- Tangible fixed assets 13,923 14,636 13,968 Current assets Stocks 2,493 2,454 3,119 Debtors 6,053 6,234 3,678 Cash at bank and in hand - - 14 ----------- ----------- ----------- 8,546 8,688 6,811 Creditors: amounts falling due within one year (8,995) (9,002) (7,001) ----------- ----------- ----------- Net current liabilities (449) (314) (190) ----------- ----------- ----------- Total assets less current liabilities 13,474 14,322 13,778 Creditors: amounts falling due after (430) (1,488) (988) more than one year Provisions for liabilities and charges (1,548) (1,555) (1,548) Deferred taxation ----------- ----------- ----------- Total net assets 11,496 11,279 11,242 ----------- ----------- ----------- Capital and reserves Share capital 201 202 201 Share premium 4,557 4,550 4,551 Capital redemption reserve 7 7 7 Profit and loss account 6,731 6,520 6,483 ----------- ----------- ----------- Equity shareholders' funds 11,496 11,279 11,242 ----------- ----------- ----------- Movements in Shareholders' Funds Unaudited Unaudited Audited As at As at As at 31 October 31 October 30 April 2004 2003 2004 £'000 £'000 £'000 ----------- ----------- ----------- Profit for the period 389 729 1,178 Dividends (141) (212) (674) ----------- ----------- ----------- Net additions to equity shareholders' funds 248 517 504 Proceeds of shares issued 6 17 17 Purchase of own shares - (100) (124) ----------- ----------- ----------- 254 434 397 ----------- ----------- ----------- Equity shareholders' funds at the beginning of the period 11,242 10,845 10,845 ----------- ----------- ----------- Equity shareholders' funds at the end of the period 11,496 11,279 11,242 ----------- ----------- ----------- Cash Flow Statement Unaudited Unaudited Audited Half year to Half year to Year to 31 October 31 October 30 April 2004 2003 2004 £'000 £'000 £'000 ----------- ----------- ----------- Net cash inflow from operating activities 1,070 726 2,949 ----------- ----------- ----------- Returns on investments and servicing of finance Net interest paid (99) (77) (163) ----------- ----------- ----------- Taxation 344 3 (811) ----------- ----------- ----------- Capital expenditure and financial investment Purchase of tangible fixed assets (1,078) (1,744) (2,166) ----------- ----------- ----------- Equity dividends paid (463) (467) (678) ----------- ----------- ----------- Net cash outflow before financing (226) (1,559) (869) ----------- ----------- ----------- Financing Issue of share capital 6 17 17 Repurchase of share capital - (100) (124) Repayment of loans (74) (80) (163) Repayment of principal under finance leases (559) (803) (1,552) Proceeds of new asset finance 490 969 969 ----------- ----------- ----------- Net cash (outflow)/ inflow from financing (137) 3 (853) ----------- ----------- ----------- Decrease in cash in the period (363) (1,556) (1,722) ----------- ----------- ----------- 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 2004 2003 2004 £'000 £'000 £'000 ----------- ----------- ----------- Decrease in cash in the period (363) (1,556) (1,722) Net cash outflow/(inflow) from debt and lease financing 143 (86) 746 ----------- ----------- ----------- Change in net debt resulting from cashflows in the period (220) (1,642) (976) Net debt at beginning of period (3,498) (2,522) (2,522) ----------- ----------- ----------- Net debt at end of period (3,718) (4,164) (3,498) ----------- ----------- ----------- Reconcilitation of Operating Profit to Net Cash Inflow from Operating Activities Unaudited Unaudited Audited Half year to Half year to Year to 31 October 31 October 30 April 2004 2003 2004 £'000 £'000 £'000 ----------- ----------- ----------- Operating profit 660 1,118 1,751 Depreciation charges 1,123 1,059 2,149 Release of grant income - - (1) Decrease/(increase) in stocks 626 (196) (861) (Increase)/decrease in debtors (2,375) (1,572) 841 Increase/(decrease) in creditors 1,036 317 (930) ----------- ----------- ----------- Net cash inflow from operating activities 1,070 726 2,949 ----------- ----------- ----------- 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 Half year to Year to 31 October 31 October 30 April 2004 2003 2004 £'000 £'000 £'000 ----------- ----------- ----------- United Kingdom 8,593 9,107 16,848 Rest of Europe 1,421 1,853 3,267 ----------- ----------- ----------- 10,014 10,960 20,115 By Business Activity: ----------- ----------- ----------- Media packaging 10,014 10,960 20,115 ----------- ----------- ----------- 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 basic earnings per share is based on the profit on ordinary activities after taxation for the half year namely £389,000 (2003: £729,000) and on 20,119,472 (2003: 20,267,271) 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 20,153,832 (2003: 20,387,566) 4 The results for the year ended 30 April 2004 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 LLP 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 6 December 2004 and copies of this and the last published Annual Report and Accounts are available from the Company Secretary - Coral Products PLC, North Florida Road, Haydock Industrial Estate, Haydock, Merseyside WA11 9TP (Tel: 01942 272882). The report may also be viewed on our web site at coralproducts.com. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Coral Products (CRU)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today