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Coral Products PLC (CRU)

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Monday 24 August, 2020

Coral Products PLC

Correction Trading update - Q1 - 2020

RNS Number : 9609W
Coral Products PLC
24 August 2020
 

The following amendment has been made to the 'Trading update - Q1 - 2020' announcement released on 24 August 2020 at 07:00am under RNS No 8704W.

 

The underlying operating profit (excluding finance expenses)* measure within the table should have read underlying operating profit*.

 

All other details remain unchanged. The full amended text is shown below.

 

Coral Products PLC

(the "Company" or "Coral")

 

Trading update - Q1 - 2020

 

Further to the update on 14 May 2020 the Board is pleased to provide an update for Q1-2020 (3 months to 31 July 2020).

As set out below underlying operating profit has increased significantly compared to Q1-2019. Underlying operating profit is ahead of management's budgeted expectations.

3 months to 31 July (unaudited)

Q1 -2020

Q1- 2019

Group Sales

£5.4m

£7.1m

Gross Margin

30.5%

27.3%

Underlying operating profit*

£201.5k

£38.4k

Underlying EBITDA*

£564.8k

£537.2k

 

*The financial headlines disclosed as underlying represent the reported metrics excluding separately disclosed items see note 1 below.

The early actions taken by the Board to cut costs and improve efficiencies are reflected in the reported result.

These Q1-2020 results were despite a near 25% fall in sales in the comparative period in the previous year, all of which stems from the trading conditions surrounding Covid-19.

When sales return to historical levels, as and when Covid-19 begins to fade, then the contribution from the increased sales should further improve profitability.

Cash management remains a priority but with the receipt of the £1m Coronavirus Business Interruption Loan (notified 14 May 2020) the Company has significantly reduced creditor pressure whilst remaining within its agreed facilities and loan covenants.

The Board is confident, subject to the Covid-19 caveat below, that cash flow should further improve over the remainder of the financial year.

The prevailing uncertainties arising from the ongoing Covid-19 crisis and the danger of a secondary wave which could lead to further deterioration in trading conditions prevents the Board from giving any further guidance on the outcome for the current financial year.

Moulding and extrusions operations remain as previously disclosed in the Company's trading update of 14 May 2020.

Note 1 - Underlying profit before tax, underlying earnings per share, underlying operating profit, underlying earnings before interest, tax, depreciation and amortisation are defined as being before share based payment charges, amortisation of intangibles recognised on acquisition, acquisition costs, reorganisation costs, compensation for loss of office and impairment loss on trade receivables. 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.

 

This announcement contains inside information for the purpose of Article 7 of the EU Regulation 596/2014 and has been arranged for release by Sharon Gramauskas, Finance Director of the Company.

 

For further information, please contact:

Coral Products plc

Michael (Mick) Wood, Chief Executive Officer 

 

 

Tel: 07788 565 154

 

Nominated Adviser & Broker

Cairn Financial Advisers LLP

Liam Murray

Tony Rawlinson

David Lawman (Corporate Broking)

 

Tel: 020 7213 0880

 

Capital Markets Consultants Limited

Richard Pearson

 

Tel: 07515 587 184

 

 

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 as a result of new information, future events or otherwise, save as required by law and regulations.

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