Half-year Financial Report

Coral Products PLC

08 January 2026

 

CORAL PRODUCTS PLC

("Coral" or the "Group")

Interim Results

Coral Products plc, a specialist in the design, manufacture and supply of plastic products, announces its unaudited interim results for the six months to 31 October 2025.

Financial headlines	Six months to 31 October 2025	Six months to 31 October 2024(unaudited, as restated)	% Change
Group sales excluding Interco sales	£19.2 million	£15.8 million	+21.5%
Group sales including Interco sales	£21.1 million	£16.3 million	+29.4%
Gross profit	£6.7 million	£4.8 million	+39.5%
Reported profit / (loss) before taxation	£0.1 million	£(1.3) million	+108%
Underlying reported profit /(loss) before taxation *	£0.4 million	£(0.5) million	+180%
Underlying basic earnings / (loss) per share *	0.74p	(0.48)p	+254%
Underlying operating profit*	£1,310,000	£28,000	+4,579%
Underlying EBITDA *	£1,776,000	£727,000	+144.3%

 * The financial headlines disclosed as underlying represent the reported metrics excluding separately disclosed items (being share based payment charges, amortisation of intangible assets and other one-off costs in each period), see note 7.

H1 '26 Financial Highlights:

•     Group Revenue increased by 21.5%

•     Group sales including £1.9 million of intercompany sales increased by 29.4% in line with its vertical integration strategy

•     Gross profit increased by £1.87 million compared to H1 2024

•     Operating profit increased by £1.28 million compared to H1 2024

•     EBITDA increased by £1 million compared to H1 2024

•     Underlying Earnings per Share improved by 1.22p compared to H1 2024

H1 '26 Strategic Highlights:

•     Intercompany sales increased by £1.31 million year on year to £1.9 million, representing a growth of 225% reflecting the successful and targeted integration of Group businesses and capabilities

•     Structural and performance improvements of the Manplas Ltd business is starting to deliver financial improvements

•     Arrow Film & Foil Converters Ltd is performing in line with expectations

•     Group 2025 full year outlook remains positively unchanged

H1 '26 Operational Highlights:

•     Continued focus on manufacturing optimisation is delivering both efficiencies and gross margin improvements

•     Further success in increasing recycled content across targeted products across the Group

•     rPET extrusion line for Alma Products slightly delayed and will be commercialised and supporting new business from Jan '26

•     New bag machine investment installed at Film & Foil to strengthen the range and support new identified business opportunities for H2 and beyond

Outlook:

•     Senior leadership team continue to make structural improvements across the Group

•     Evolving new business wins from H1 2026 combined with expected new business wins to start in H2 2026 reflects customer trust and competitive offering

About Coral Products:

Coral Products Group is a specialist producer of technical and added value polymer products produced from both rigid and flexible substrates that combine to offer customers the widest choice of products and packaging solutions.  Based in the UK with 5 manufacturing facilities and 2 distribution locations the business is trusted by leading UK brands and companies across food packaging, retail, personal care, household, construction, automotive and tele-communication sectors.

Ian Hillman, Chief Executive, commented:

"We recognise this as very positive set of results, delivered despite a soft and challenging economy. We view the achievement as further endorsement of the business capability and strengthened product portfolio,  made possible through our hard working and dedicated employees. Whilst we see progress and momentum in all areas of the business, we remain focussed on returning all Group businesses to profitability, strengthen our balance sheet and optimise our cash generation through our trading performance. 

"With good revenue momentum and incremental gross margin improvements, our H2 prospects and outlook remain positive."

For further information, please contact:

Enquiries:	www.coralproducts.com
Coral Products plc David Low Ian Hillman	Non-Executive Chairman Group Chief Executive Officer	0161 946 9460 0161 507 9302
Cairn Financial Advisers LLP Sandy Jamieson / Ludovico Lazzaretti	NOMAD and Broker	020 7213 0880

Regulatory Information

The information contained within this announcement is deemed to constitute inside information for the purposes of Article 7 of EU Regulation 596/2014 (Market Abuse Regulations) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this inside information is now considered to be in the public domain.

Caution regarding forward looking statements

This announcement contains unaudited information and forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts and undue reliance should not be placed on any such statement because they speak only as at the date of this document and are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Coral's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. Coral undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected because of new information, future events or otherwise, save as required by law and regulations.

Chief Executive's Statement:

The progress and momentum of the business from FY'25 and throughout H1 of FY '26 is an important step in building confidence and trust in our ability to deliver consistent results.

Strategy & Markets:

The significant sales growth is attributed to both new business wins and the Arrow Film & Foil Converters Ltd acquisition (1st April 2025).

Gross margins have been steadily improving throughout the first half of the year with further improvement potential into H2.

Divisional performance overview:

Division	Net Sales Oct 25	Intercompany Sales - Oct 25	Gross Sales - Oct 25	Net Sales - H1 Oct 24	Intercompany Sales- H1 Oct 24	Gross Sales - H1 Oct 24
Flexible	£10,294K	£536K	£10,831K	£6,428K	-	£6,428K
Rigid	£5,597K	£1,359K	£6,956K	£6,029K	£548K	£6,576K
Distribution	£3,340K	-	£3,340K	£3,350K	-	£3,350K
Total	£19,231K	£1,895K	£21,126K	£15,807K	£548K	£16,355K

Flexible Division:

The Flexible division has performed well during the period and has seen the successful integration of Arrow Film & Foil Converters Ltd, acquired in April 2025, into the wider Flexible Division.  The immediate focus for the Arrow business has been sustainable profitability rather than revenue. Whilst the Arrow business has delivered revenue in line with management expectations, we have successfully created a profitable platform that now allows us to focus on optimising capacity and unlocking further growth in H2 and beyond.  

Rigid Division:

The Rigid division has recorded solid revenue growth versus the same period last year, with gross margin improving steadily from operational efficiencies and strengthened cost controls.  Substantive progress has been made to improve the financial performance of the Manplas Ltd with further improvements expected in H2. The Rigid Division remains well-placed to deliver in line with management expectations in H2 and beyond.

Distribution Division:

The Distribution division continues to perform well, with deeper customer penetration and increased cross-selling across the wider Group customer base.  Recent success securing commercial orders for the 'single polymer lotion pump', that was the subject of product development starting in 2022.  The introduction of a 'Heavy Duty Grid' is in the early phase of design and development to support the continued growth of the Eco-deck brand and business, whilst it is unlikely to contribute to any revenue in FY 26 it will support future growth in FY27 and beyond. The distribution division remains a key part of the Group's integrated value proposition, helping to deliver the short lead time expectations and service breadth.

Dividend:

The Board continues to review capital allocation and believes that prioritising investment, debt reduction and cash generation is the most appropriate use of capital, therefore, no interim dividend has been declared for the period ending 31st October 2025.  The Board will keep the payment of dividends under review, taking into account the Group's financial performance, cash generation, working capital requirements and financing arrangements.

Outlook:

Trading since the period end has continued to be robust across all divisions. 

In the second half of the year, revenue is expected to be marginally higher, despite the adverse seasonal effect on revenue in December and January, the improvement in revenue is primarily driven by the continued phasing of new business wins. The benefits from the operational restructuring and other initiatives underway at our Manplas Ltd business is expected to bring this business back into profitability on a consistent and sustainable basis.

The Board's expectations for the Group's year-end performance remain unchanged and reflecting the management of some legacy issues across the Group.

GROUP INCOME STATEMENT

	Note	Six months to 31 October 2025 (unaudited) £'000	Six months to 31 October 2024 (unaudited, as restated) £'000	Year to 30 April 2025 (audited) £'000
Revenue		19,231	15,807	29,831
Cost of sales		(12,548)	(10,997)	(20,124)
Gross profit		6,683	4,810	9,707
Operating costs
Distribution expenses		(862)	(697)	(1,386)
Administrative expenses before separately disclosed items		(4,511)	(4,100)	(8,469)
Other separately disclosed items	3	(588)	(758)	1,345
Administrative expenses		(5,099)	(4,858)	(7,124)
Operating profit/(loss)		722	(745)	1,197
Finance costs		(604)	(526)	(981)
Profit/(loss) before taxation		118	(1,271)	216
Taxation	4	(46)	82	421
Profit /(Loss) for the period		72	(1,189)	637
Earnings per ordinary share	5
Basic and diluted (pence)		0.08	(1.34)	0.72
Underlying basic (pence)		0.74	(0.48)	(0.80)

GROUP STATEMENT OF COMPREHENSIVE INCOME

	Note	Six months to 31 October 2025 (unaudited) £'000	Six months to 31 October 2024 (unaudited, as restated) £'000	Year to 30 April 2025 (audited) £'000
Profit/(loss) for the period		72	(1,189)	637
Total other comprehensive (loss)/profit		-	-	(9)
Total comprehensive income/(loss) for the period		72	(1,189)	626

GROUP STATEMENT OF FINANCIAL POSITION

	Note	31 October 2025 (unaudited) £'000	31 October 2024 (unaudited, as restated) £'000	30 April 2025  (audited) £'000
Non-current assets
Goodwill		3,973	3,973	3,973
Intangible assets	6	4,568	1,831	4,829
Property, plant and equipment		7,722	5,922	7,093
Right of use assets		2,840	2,350	3,239
Total non-current assets		19,103	14,076	19,134
Current assets
Inventories		5,923	4,361	4,848
Trade and other receivables		10,032	6,993	7,489
Current tax receivable		-	32	-
Cash and cash equivalents		543	858	788
Assets held for sale		-	1,300	-
Total current assets		16,498	13,544	13,125
Current liabilities
Other borrowings	7	(5,814)	(6,435)	(6,060)
Lease liabilities	7	(948)	(1,194)	(904)
Trade and other payables		(7,658)	(5,332)	(6,332)
Current tax payable		-	-	-
Provisions		-	-	(261)
Total current liabilities		(14,420)	(12,961)	(13,557)
Net current assets/(liabilities)		2,060	583	(432)
Non-current liabilities
Borrowings	7	(4,252)	(1,490)	(1,771)
Lease liabilities	7	(3,371)	(1,835)	(3,489)
Deferred taxation		(1,500)	(954)	(1,436)
Total non-current liabilities		(9,123)	(4,279)	(6,696)
NET ASSETS		12,058	10,380	12,006
Shareholders' Equity
Share capital		903	903	903
Treasury shares		(206)	(186)	(186)
Retained earnings	8	11,361	9,663	11,289
TOTAL SHAREHOLDERS' EQUITY		12,058	10,380	12,006

GROUP STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

				Share capital	Treasury shares	Retained earnings	Total equity
				£'000	£'000	£'000	£'000
At 1 May 2025				903	(186)	11,289	12,006
Total comprehensive loss				-	-	72	72
Purchase of treasury shares				-	(20)	-	(20)
At 31 October 2025				903	(206)	11,361	12,058

 For the six months to 31 October 2024 (unaudited, as restated)

	Share capital		Treasury shares		Retained earnings		Total equity
	£'000		£'000		£'000		£'000
At 1 May 2024	903		(170)		11,104		11,837
Total comprehensive loss for the period	-		-		(1,189)		(1,189)
Debit for share based payment		-	-		(29)		(29)
Purchase of treasury shares		-	(16)		-		(16)
Dividend paid		-			(223)		(223)
At 31 October 2024 (as restated)		903	(186)			9,663	10,380

For the year ended 30 April 2025 (audited)

				Share capital	Treasury shares	Retained earnings	Total equity
				£'000	£'000	£'000	£'000
At 1 May 2024				903	(170)	11,104	11,837
Profit for the year				-	-	637	637
Other comprehensive income for the year				-	-	(9)	(9)
Total comprehensive income for the year				-	-	626	626
Credit for share based payment				-	-	2	2
Purchase of treasury shares				-	(16)	-	(16)
Dividend paid				-	-	(445)	(445)
At 30 April 2025				903	(186)	11,289	12,006

GROUP STATEMENT OF CASH FLOWS

	Six months to 31 October 2025 (unaudited)               £000	Six months to 31 October 2024 (unaudited, as restated)              £000	Year to 30 April 2025 (audited)          £000
Cash flow from operating activities
Profit / (Loss) for the period after tax	72	(1,189)	637
Adjustments for:
Depreciation of property, plant and equipment	397	336	723
Depreciation of right of use assets under IFRS16	399	378	722
Amortisation of intangible assets	254	126	255
Share based payment (credit)/charge	-	(29)	2
Gain on bargain purchase	-	-	(2,578)
Profit on disposal of assets	-	-	(33)
Change in fair value of contingent consideration	-	(15)	(15)
Change in provisions	-	-	261
Interest payable	604	517	981
Taxation charge/(credit)	46	(82)	(421)
Operating cash flows before movements in working capital	1,772	42	534
(Increase)/decrease in inventories	(1,075)	102	(60)
Decrease/(increase) in trade and other receivables	(2,542)	(349)	(574)
(Decrease)/increase in trade and other payables	1,353	90	200
Net cash generated from operating activities	(492)	(115)	100
Cash flow from investing activities
Cash outflows on business combination (net of cash acquired)	-	-	(675)
Proceeds from disposal of building	-	-	1,899
Net cash on disposal of property, plant and equipment	-	676	1,794
Acquisition of subsidiaries, payment of earn-out	(250)	(100)	(170)
Acquisition of property, plant and equipment	(1,019)	(50)	(869)
Net cash (used in)/generated from investing activities	(1,269)	526	1,979

	Six months to 31 October 2025 (unaudited)               £000	Six months to 31 October 2024 (unaudited, as restated)              £000	Year to 30 April 2025 (audited)          £000
Cash flow from financing activities
Interest paid on bank borrowings and invoice discounting	(371)	(454)	(750)
Interest paid on lease liabilities	(233)	(72)	(202)
Dividends paid	-	(223)	(445)
Repayments of obligations under lease liabilities	(452)	(430)	(889)
New lease liabilities	-	-	998
Repayments of bank borrowings	(253)	(278)	(2,758)
Purchase of treasury shares	(20)	(16)	(16)
New bank loans raised	477	313	-
Movements on invoice discounting facility	2,368	(407)	757
Net cash from financing activities	1,516	(1,567)	(3,305)
Net (decrease)/increase in cash and cash equivalents	(245)	(1,156)	(1,226)
Cash and cash equivalents at the start of the period	788	2,014	2,014
Cash and cash equivalents at the end of the period	543	858	788

Operating cash flow for the period was a net outflow of £492,000. The primary cause of the outflow was an increase in working capital following the acquisition of Arrow: trade receivables relating to the Arrow were £2.8 million and inventories by approximately £1.1 million. The Group financed these working-capital requirements through new invoice discounting arrangements at approximately £2.3 million. The proceeds are represented within financing activities in the Group Statement of Cash Flows.

NOTES TO THE FINANCIAL STATEMENTS

1.         Basis of preparation

The financial information set out in these interim consolidated financial statements for the six months ended 31 October 2025 is unaudited. The financial information presented are not statutory accounts prepared in accordance with the Companies Act 2006, and are prepared only to comply with AIM requirements for interim reporting. Statutory accounts for the year ended 30 April 2025, on which the auditors gave an audit report which was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006, have been filed with the Registrar of Companies.

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 financial statements for the year ended 30 April 2025.

Reporting standard

These financial statements have been prepared in accordance with international accounting standards ("IFRS") as adopted by the United Kingdom ("UK") insofar as these apply to interim financial statements. The interim consolidated financial statements have been prepared using consistent accounting policies as those adopted in the financial statements for the year ended 30 April 2025.

The interim consolidated financial statements are prepared in sterling, which is the functional currency of the Group. Monetary amounts in these interim consolidated financial statements are rounded to the nearest £1.

The financial statements have been prepared on the historical cost basis, modified to include the revaluation of certain financial instruments at fair value.

Basis of consolidation

The Group financial statements consolidates those of the parent company and the subsidiaries of which the parent has control. Control is established when the parent is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary.

Where a subsidiary undertaking is acquired/disposed of during the year, the consolidated profits or losses are recognised from/until the effective date of the acquisition/disposal, being the date on which control is obtained or lost. All inter-company balances and transactions between Group companies have been eliminated on consolidation. Where necessary, adjustments are made to the financial information of subsidiaries to bring the accounting policies used into line with those used by the Group.

The Group applies the acquisition method of accounting for business combinations enacted after the date of creation of the Group, as detailed further below. The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair value of assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interest issued by the Group. Acquisition costs are expensed as incurred. The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognised in the acquired subsidiary's financial information prior to the acquisition. Assets acquired and liabilities assumed are measured at their acquisition-date fair values.

Going concern

As at 31 October 2025 the Group had net assets and cash. In preparing the interim financial statements, the directors have considered the principal risks and uncertainties facing the business, along with the Group's objectives, policies and processes for managing its exposure to financial risk. In making this assessment the directors have considered cash flows for the foreseeable future, being a period of at least 12 months from the expected date of approval of the interim financial statements. They have also undertaken activities to understand the usage of cash in recent financial periods to better understand the future cash risks to which the Group is exposed.

Having taken all the above factors into consideration, the directors have reached a conclusion that the Company and the Group are able to manage their business risks and operate within existing and future funding facilities for a period of at least twelve months from the date of approval of the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.

3.         Underlying profit and separately disclosed items

Underlying profit before tax, underlying earnings per share, underlying operating profit, and underlying earnings before interest, tax and depreciation are defined as being before share based payment charges, amortisation of intangibles recognised on acquisition, acquisition and disposal costs, reorganisation costs, compensation for loss of office, goodwill impairment, gain on bargain purchase and stock write down due to goods which had been contaminated. Collectively these are referred to as separately disclosed items. In the opinion of the Directors the disclosure of these transactions should be reported separately for a better understanding of the underlying trading performance of the Group.

	Six months to 31 October 2025    (unaudited) £'000	Six months to 31 October 2024    (unaudited, as restated) £'000	Year to 30 April 2025 (audited) £'000
Operating profit/(loss)	722	(730)	1,197
Separately disclosed items within administrative expenses:
Share based payment charge/(credit)	-	(29)	2
Amortisation of intangible assets	254	128	256
Gain on bargain purchase	-	-	(2,578)
Reorganisation costs	63	674	703
Insurance income	-	-	(250)
Inventory impairment	271	-	537
Change in fair value of contingent consideration	-	(15)	(15)
Total separately disclosed items	588	758	(1,345)
Underlying operating profit	1,310	28	(148)

4.         Taxation

The taxation charge for the six months to 31 October 2025 is based on the effective taxation rate, which is estimated will apply to earnings for the year ending 30 April 2026. The rate used is below the applicable UK corporation tax rate of 25% due to the utilisation of tax losses in the period.

5.         Earnings per share

Basic and underlying earnings per ordinary share are calculated using the weighted average number of ordinary shares in issue during the financial period of 88,954,974 (31 October 2024 as restated: 89,048,581 and 30 April 2025: 89,041,078).

	Six months to 31 October 2025 (unaudited)		Six months to 31 October 2024 (unaudited, as restated)		Year to 30 April 2025 (audited)
	£'000	p	£'000	p	£'000	p
Basic and diluted earnings per ordinary share
Profit/(loss) for the period after tax	72	0.08	(1,189)	(1.33)	637	0.72
Underlying earnings per ordinary share
Underlying profit/(loss) for the period after tax	660	0.74	(431)	(0.48)	(708)	(0.80)

6.         Intangible Assets

	Customer relationships £'000	Brands £'000	Software     £'000	Total £'000
Cost
At 30 April 2025	6,544	710	730	7,984
Additions	-	-	13	13
Disposals	(20)	-	-	(20)
At 31 October 2025	6,524	710	743	7,977
Amortisation
At 1 May 2025	2,734	421	-	3,155
Charge in the period	173	43	38	254
At 30 April 2025	2,907	464	38	3,409
Net book value
At 31 October 2025	3,617	246	705	4,568
At 30 April 2025	3,810	289	730	4,829

7.         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 2025  (unaudited) £000		Six months to 31 October 2024 (unaudited) £000	Year to 30 April 2025 (audited)  £000
Net (decrease)/increase in cash and cash equivalents		(245)	(1,156)	(1,226)
Net increase in invoice discounting facilities		(2,391)	(570)	(757)
(Increase)/decrease in bank and other loans		(224)	2,477	2,758
(Increase)/decrease in lease liabilities		452	(1,630)	(2,781)
Movement in net debt in the financial period		(2,408)	(879)	(2,006)
Net funds/(debt) at beginning of period		(11,435)	(9,430)	(9,430)
Net funds/(debt) at end of period		(13,843)	(10,309)	(11,435)

Included within the movement in net debt for the period to 31 October 2025 is an increase of approximately £2.3 million, representing drawdowns under a new invoice discounting facility to fund the working capital of Arrow Film & Foil Converters Limited.

8.         Prior period adjustment

The Group has implemented a prior period adjustment to correct the treatment of an earlier acquisition, including presentation of fair value adjustments, insurance claims (based on the settlement expectations in place at each reporting date), and the valuation of contingent consideration which is composed of amounts payable based on insurance claims and recovery of trade receivables, where the expectations of these factors had not been correctly reflected in the interim accounts for 31 October 2024.

A prior period adjustment has also been implemented regarding the treatment of the sale-and-leaseback of a property. This asset was previously derecognised with a gain on disposal and accounted for as a new asset. This has been corrected, as the transaction should not have qualified as a new asset.

The following is a reconciliation of the adjustments made:

Reconciliation of changes

	Six months to 31 October 2024 (unaudited, as previously reported) £'000		Prior period adjustment £'000	Six months to 31 October 2024 (unaudited, as restated) £'000
Goodwill		4,074	(101)	3,973
Contingent consideration liability		-	(320)	(321)
Right of use assets		2,713	(363)	2,350
Current lease liabilities		(1,233)	39	(1,194)
Non-Current lease liabilities		(2,009)	174	(1,835)
Deferred tax liability		(986)	32	(954)
Net assets		10,919	(539)	10,380

Reconciliation of changes in loss for the previous period

	Six months to 31 October 2024 (unaudited, as previously reported) £'000		Prior period adjustment £'000	Six months to 31 October 2024 (unaudited, as restated) £'000
Revenue		15,807	-	15,807
Cost of sales		(10,997)	-	(10,997)
Gross profit		4,810	-	4,810
Distribution		(697)	-	(697)
Administrative expenses before separately disclosed items		(3,956)	(144)	(4,100)
Other separately disclosed items		(775)	17	(758)
Operating loss		(618)	(127)	(745)
Finance costs		(517)	(9)	(526)
Loss before tax		(1,135)	(136)	(1,271)
Taxation		50	32	82
Loss after tax		(1,085)	(104)	(1,189)

A copy of this interim statement is available on the Company's website at: https://coralproducts.com/investors/reports-presentations/.

 

END