Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

Coral Products PLC (CRU)

  Print      Mail a friend       Annual reports

Monday 10 December, 2012

Coral Products PLC

Half Yearly Report

RNS Number : 0774T
Coral Products PLC
10 December 2012
 



10 December 2012

CORAL PRODUCTS PLC

("Coral" or the "Group")

 

HALF YEARLY REPORT

 

 

Coral Products plc, a specialist in the design, manufacture and supply of injection moulded plastic products, is pleased to report its half yearly report for the six months ended 31 October 2012.

 

 

Financial headlines

 

 

Six months to

31 October

2012

Six months to

31 October

2011

 

 Change

 





Group sales

 £9.41 million

£8.66 million

+9%

Gross profit

 £2.34 million

£1.80 million

+30%

Gross margin

 24.8%

20.8%

+19%

Underlying operating profit

 £561,000

£115,000

+388%

Profit/(loss) before taxation

 £480,000

£(356,000)

-

EBITDA

   £1,084,000

   £150,000

  -

Basic earnings/(loss) per share

 1.18p

(1.39)p 

-





 

                          

 

Operational highlights 

 

-           Increased sales and much improved profitability

-           Strong continuation of growth in Interpack.

-           'Inner Caddy' being developed to meet demand and extend our product range

-           Increased margins on non-media products

-           Continued progress of plan to diversify into growth products and reduce dependence on media products

 

Other highlights 

 

-           Acquisition of the Group's freehold land and buildings in Haydock completed in December 2012 resulting in rental savings of £304,000 p.a.

-           Court approval obtained for the share premium and capital redemption reserve to be transferred into distributable reserves

 

 

Commenting on today's results, Joe Grimmond, Coral's Chairman, said:

 

"I am delighted to report that following on from the Group's positive performance for the financial year ended 30 April 2012 and its success in diversifying into new markets, the first six months to 31 October 2012 has seen a continuation of this trend. Profit before tax of £480,000 for the first six months of this financial year represents a turnaround of £836,000 on the previous loss of £356,000 with a substantial rise in gross operating margins to 24.8%.  

 

"The progress we have made illustrates that our strategy is delivering results. We continue to implement efficiency initiatives whilst looking to invest in further areas of growth.

 

"Overall the first half performance is much improved over the previous year's and the Board views the future for the Group for the full year and beyond with confidence." 

 

 

 

 

Enquiries

 

Coral Products plc

Joe Grimmond, Non-Executive Chairman

Warren Ferster, Chief Executive & Managing Director

 

 

Tel: 07703 518 148

Tel: 01942 272 882

Nominated Adviser

Cairn Financial Advisers LLP

Avi Robinson / Tony Rawlinson

 

 

Tel: 020 7148 7900

Broker

XCAP Securities plc

David Lawman / Adrian Kirk

 

 

Tel: 020 7101 7070

 

Bankside Consultants

Richard Pearson

Tel: 020 7367 8888

 

 

 

 

 

 

Operating review

 

Results

 

The Group's results for the first six months of the year reflect an improved performance in a challenging trading environment for businesses in the UK. Sales in the six months to 31 October 2012 increased by 9% to £9.41 million (six months to 31 October 2011: £8.66 million), which resulted in an underlying operating profit of £561,000 compared to £115,000 in 2011. Gross margins increased to 24.8% from 20.8% in 2011.

 

A trading statement was issued on 28 August 2012 reporting that trading for the first quarter had been in line with expectations and I am pleased to state that this performance has been maintained through to the half year. Interpack has continued to operate strongly and ahead of management expectations. As reported, the planned investment in production machinery for food packaging containers has been completed although we will continue to add to the tooling range as new selling opportunities arise. 

 

Dividends

 

In line with our progressive dividend policy, we will look to pay a full year dividend following the reporting of Coral's results for the year ended 30 April 2013, subject to full year performance and our cash position meeting the Board's expectations. This reflects our confidence in the continuing recovery and improvement of the Group.

 

Operations

 

The Group has performed in line with expectations and had an encouraging first half despite the challenging market conditions. The strategy implemented by the Board to diversify away from media products into new growth markets is delivering positive results. In the first six months of the year, sales, operating margin and profit before tax are all ahead of the first six months of the previous year.

 

The performance of Interpack has been excellent and enabled us to increase our utilisation of available manufacturing capacity. We now have a range of food containers which are manufactured at our facility and serve the catering sector. Whilst we had some initial hurdles to overcome in manufacturing these thin-walled products, these difficulties have been overcome and our production is now performing consistently. Interpack, meanwhile continue to provide great service to a wider range of customers and, despite the difficult economic conditions, have increased sales and profits.

 

Media packaging turnover has been disappointing and well below our expectations. Sales were anticipated to fall as the shift continues towards selling films and TV programmes via the digital marketplace. Media sales continue to be weak and we are planning and preparing for a lower level of sales activity going forward.

 

Recycling crate and caddy sales maintained their progress even though there were delays in the funding allocated to local authorities. There has been a steady increase in interest for the Coral range of products and we anticipate further increases in sales next year. We are also developing an Inner Caddy to be used in wheelie bins and this will be in production in the next few weeks. Orders have already been promised for this product and by complementing our existing range it will enable our customers to meet more of their requirements at Coral. We continue to receive recognition for the quality of our containers and we expect further sales increases in this market in the future.

 

Trade mouldings showed another increase in turnover. We are actively looking to expand in this area. We are also seeking further applications for our existing houseware product range where we believe we have strong possibilities of attracting new business.

 

Capital expenditure

 

Total capital expenditure in the first six months was £455,000 (2011: £265,000) The bulk of the expenditure related to investment in tooling for new food containers and tooling for an inner caddy recycling product.

 

Financial position and cash flow

 

Our balance sheet is strong with net assets of £8.2 million. EBITDA increased to £1,084,000 for the first six months (2011:£150,000) although the seasonality of the markets for media products resulted in a cash outflow in operations of £884,000 (2011: outflow of £1,122,000). The Group has undrawn banking facilities of £900,000 at 31 October.

 

In June, the Group acquired new loans of £350,000 in asset finance from Close Brothers and £150,000 as an unsecured loan from its Chairman, Joe Grimmond. This enabled it to make early repayment of £500,000 from its term loan which enabled the Group's working capital facility to increase by £800,000. Since then, a further £300,000 of the term loan was repaid by 31 October with the final payment arising in December.

 

Capital reduction

 

Having gained shareholder support the Group received Court approval to the capital reorganisation on 3 October, increasing distributable reserves in the Group by £6.99 million.

 

Outlook

 

We are pleased with the Group's performance during the first six months of 2012. Despite the general market conditions, the positive momentum in the Group's business is continuing. This underscores our confidence that we will continue to grow and strengthen our business by diversifying away from media into other products with greater opportunities.

 

 

Warren Ferster

Chief Executive                                                                                             

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months to 31 October 2012

  

 


 

 

 

Notes

Six months to

31 October

2012

(unaudited)

£000

Six months to

31 October

2011

(unaudited)

£000

Year to

30 April

2012

(audited)

£000











Revenue

3

        9,405

   8,658

  17,309

Cost of sales


  (7,069)

  (6,857)

(13,483)

Gross profit


         2,336

   1,801

    3,826

Operating costs


  (1,775)

  (1,686)

   (3,576)

Underlying operating profit


      561

      115

      250

Exceptional items


   -

    (443)

        (554)






Profit/(loss) from operations


    561

    (328)

      (304)

Finance income


        -

          1

        -

Finance expense


      (81)

      (29)

       (65)

Profit/(loss) before taxation


    480

    (356)

     (369)

Taxation

4

      (32)

       -

       -

Total comprehensive income / (loss)


    448

    (356)

     (369)











Earnings / (loss) per ordinary share

5









Basic (pence)


  1.18

  (1.39)

(1.16)

Diluted (pence)


1.16

(1.38)

(1.15)

Underlying basic (pence)


   1.18

   0.34

0.58

Underlying diluted (pence)


1.16

0.34

0.58

 

 

 



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 October 2012

 

 


 

 

 

31 October

2012

(unaudited)

£000

31 October

2011

(unaudited)

£000

30 April

2012

 (audited)

£000






Non-current assets





Goodwill


   3,868

   3,868

 3,868

Other intangible assets


      181

      197

     200

Property, plant and equipment


   4,609

   3,801

  4,658

Rental deposit


        -

        50

       -

Total non-current assets


   8,658

   7,916

  8,726






Current assets





Inventories


   1,786

   1,431

  1,986

Trade and other receivables


   5,810

   7,021

  3,517

Cash and cash equivalents


      -

      379

         52

Total current assets


   7,596

   8,831

  5,555

Total assets


  16,254

  16,747

  14,281






Current liabilities





Bank overdrafts and borrowings


 (3,048)

 (2,092)

   (1,518)

Trade and other payables


 (4,616)

 (5,984)

(4,291)

Income tax payable


    (143)

    (143)

        (143)

Total current liabilities


 (7,807)

 (8,219)

(5,952)






Non-current liabilities





Borrowings


    (214)

    (570)

     (385)

Deferred taxation liability


         (32)

         -

         -

Total non-current liabilities


    (246)

    (570)

     (385)

Total liabilities


  (8,053)

  (8,789)

(6,337)

Total net assets


   8,201

   7,958

  7,944











Equity





Share capital


      381

      381

      381

Share premium


   -

   6,978

   6,977

Other reserves


          -

          7

          7

Retained earnings


      7,820

      592

      579

Total equity


   8,201

   7,958

   7,944

 



CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

 

For the six months to 31 October 2012 (unaudited)

 


Share

capital

Share

premium

Other

reserves

Retained

earnings

Total

equity


 £000

 

  £000

£000

 £000

  £000

At 1 May 2012

   381

  6,977

      7

   579

  7,944

Cancellation of Share premium and capital redemption reserves

   -

  (6,977)

     (7)

6,984      

  -

Dividends

-

-

-

(191)

(191)

Total comprehensive income

       -

         -

      -

 448

   448

At 31 October 2012

   381

  -

      -

   7,820

  8,201

 

 

 

 For the six months to 31 October 2011 (unaudited)

 


Share

capital

Share

premium

Other

reserves

Retained

earnings

Total

equity


 £000

 

  £000

£000

 £000

  £000

At 1 May 2011

   201

  4,558

      7

   948

  5,714

Issue of equity

   180

  2,420

      -

       -

  2,600

Total comprehensive income

       -

         -

      -

 (356)

   (356)

At 31 October 2011

   381

  6,978

      7

   592

  7,958

 

  

For the year ended 30 April 2012 (audited)

 


Share

capital

Share

premium

Other

reserves

Retained

earnings

Total

equity


 £000

 

  £000

£000

 £000

  £000

At 1 May 2011

   201

4,558

      7

  948

5,714

Share placing

180

2,419

-

-

2,599

Total comprehensive income

-

-

-

(369)

 (369)

At 30 April 2012

   381

6,977

      7

    579

7,944

 

 



CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months to 31 October 2012

 

 


 

 

 

 

Notes

Six months to

31 October

2012

(unaudited)

£000

Six months to

31 October

2011

(unaudited)

£000

Year to

30 April

2012

(audited)

£000






Cash flow from operating activities





Cash (utilised in)/generated from operations

6

 (684)

 (1,122)

   1,737

Net finance costs


      (81)

      (28)

   (65)

Net cash from operating activities


 (765)

 (1,150)

   1,672






Cash flow from investing activities





Purchase of subsidiaries net of cash acquired


    -

(2,561)

  (2,756)

Purchase of plant and equipment


    (438)

    (256)

  (1,568)

Acquisition of intangible assets


        (17)

        (9)

    (41)

Net cash used in investing activities


    (455)

    (2,826)

  (4,365)






Cash flow from financing activities





Proceeds of share issue


-

-

1,699

Proceeds of term loan


-

600

1,400

Proceeds of new asset finance


350

-

100

Proceeds of director's loan


150

-

-

Rental deposit repayment


-

-

       50

Issue of equity net of costs


   -

    2,600

-

Dividends paid


(191)

-

-

Repayment of term loan


       (917)

       (49)

   (380)

Finance lease principal payment


(80)

-

(39)

Net cash arising from/(used in) financing activities


       (688)

      3,151

   2,830






Net decrease in cash, cash equivalents

and bank overdrafts

7

     (1,908)

     (825)

   137

Cash, cash equivalents and bank overdrafts at the start of the period


     (711)

     (848)

   (848)

Cash, cash equivalents and bank overdrafts at the end of the period


  (2,619)

  (1,673)

   (711)

 

 

1.         Basis of preparation

 

These interim financial statements have been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively "Adopted IFRS").

 

The principal accounting policies used in preparing these interim financial statements are those expected to apply to the Group's consolidated financial statements for the year ending 30 April 2013 and are unchanged from those disclosed in the Group's published consolidated financial statements for the year ended 30 April 2012.

 

The financial information for the six months ended 31 October 2012 is unaudited and does not constitute statutory financial statements for those periods.

 

The comparative financial information for the twelve months ended 30 April 2012 has been derived from the audited statutory financial statements for that year. These financial statements were approved by shareholders at the Annual General Meeting and have been delivered to the Registrar of Companies. The Auditors' Report on those financial statements was unqualified, did not include a reference to any matters to which the Auditors drew attention by way of emphasis without qualifying their report and did not include a statement under section 498(2) or 498(3) of the Companies Act 2006.

 

Seasonality

 

In addition to economic factors, revenues are subject to some element of seasonal fluctuation largely driven by orders for media products being higher in the period before Christmas whilst demand for food containers is strongest early in the year ahead of the warmer months. In addition, the Christmas holiday results in a period of inactivity with fewer trading days.

 

 

2.         Significant accounting policies

 

The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated statements as at and for the year ended 30 April 2012.

 

 

3.         Revenue

 

All production is based in the United Kingdom. The geographical analysis of revenue is shown below:

 


Six months to

31 October 2012

   (unaudited)

£000

Six months to

31 October 2011

(Unaudited)

£000

Year to

30 April 2012

(Audited)

£000





United Kingdom

     9,164

     7,975

    16,131

Rest of Europe

241       

        683

      1,178


     9,405

     8,658

    17,309





Turnover by business activity




Sale and manufacture of plastic products

     9,405

     8,658

     17,309

 

  

 

4.         Taxation

 

The taxation charge for the six months to 31 October 2012 is based on the effective taxation rate, which is estimated will apply to earnings for the year ending 30 April 2013.The rate used is below the applicable UK corporation tax rate of 24% due to the utilisation of tax losses in the period.

 

 

5.         Earnings / (loss) per share

 

Basic earnings per ordinary share are calculated using the weighted average number of ordinary shares in issue during the financial period of 38,103,609 (31 October 2011: 25,613,870 and 30 April 2012: 31,840,527).

 

Diluted earnings per ordinary share are calculated using the weighted average number of ordinary shares in issue during the financial period of 38,615,609 (31 October 2011: 25,759,957 and 30 April 2012: 32,152,659).

 

Underlying earnings per ordinary share are also shown calculated by reference to earnings adjusted for exceptional items. The Directors consider that this gives a useful additional indication of underlying performance.

 

 

 

Six months to

31 October 2012

(Unaudited)

Six months to

31 October 2011

(Unaudited)

Year to

30 April 2012

(Audited)


£000

p

£000

p

£000

P

Basic earnings per ordinary share







Profit/(loss) for the financial period after tax

 448

1.18

(354)

(1.39)

   (369)

(1.16)

Exceptional items

  -

 -

   443

    1.73

          554

1.74

Underlying earnings

    448

 1.18

89

0.34

   185

0.58








Diluted earnings per ordinary share







Profit/(loss) for the financial period after tax

 448

1.16

(354)

(1.38)

   (369)

(1.15)

Exceptional items

  -

-

       443

1.72

          554

1.73

Underlying earnings

    448

1.16

89

0.34

   185

0.58

 

 

 

6.         Net cash from operations

 


Six months to

31 October

2012

(Unaudited)

£000

Six months to

31 October

2011

(Unaudited)

£000

Year to 30 April

2012

(audited)

£000





Operating profit/(loss)

  561

  (328)

  (304)

Depreciation of plant and equipment

    487

    449

 904

Amortisation of intangible assets

      36

      29

      58

EBITDA*

    1,084

    150

    658

Decrease/(increase) in inventories

    200

    355

   (200)

Increase in trade and other receivables

(2,293)

(3,451)

   53

Increase in trade, other payables and provisions

  325

  1,824

     1,226

Net cash (utilised in)/generated from operations

(684)

(1,122)

    1,737

 

 

 * EBITDA is defined as profit before interest, taxation, depreciation, amortisation and share-based payments.

 

 

 

7.         Reconciliation of net cash flow to movement in net debt

 

Net debt incorporates the Group's borrowings and bank overdrafts less cash and cash equivalents. A reconciliation of the movement in the net debt is shown below:

 


Six months to

31 October

2012

 (unaudited)

£000

Six months to

31 October

2011

(unaudited)

£000

Year to 30 April

2012

(audited)

 £000





Net decrease in cash and cash equivalents

    (1,908)

    (825)

137

New bank term loan

  -

    (600)

      (1,400)

New asset finance

(350)

-

(100)

New unsecured loan

(150)

-

-

Repayment of bank term loan

917

30

380

Repayment of finance leases

  80

        19

   39

Increase in net debt in the financial period

 (1,411)

 (1,376)

     (944)

Opening net debt

    (1,851)

    (907)

  (907)

Closing net debt

 (3,262)

 (2,283)

  (1,851)

 

 

 

 

8.         Availability of half yearly report

 

Copies of the Half Yearly report will be made available upon request to members of the public at the Company's registered office, North Florida Road, Haydock Industrial Estate, Haydock, Merseyside, WA11 9TP. The Half Yearly Report can also be viewed on the Group's website at www.coralproducts.com.

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR BLBDDLUGBGDR

a d v e r t i s e m e n t