Coral Products reinstates full year divi as revenues improve

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Plastics manufacturer Coral Products has announced a return of dividend payments as the group reported losses narrowing for the latest financial year.

The Manchester-based company said it was in a stronger position moving forward having sold its plastic mouldings and food packaging divisions to One Plastics Group for £7.8m earlier this year.

The sale reduced its net debt and provided additional “financial flexibility” to further develop and support the group’s progress.

For the year to 30 April, revenues grew to £10.7m, up from £8.7m.

Losses for the year narrowed from £463,000 to £316,000.

Underlying operating profit increased to £900,000, up from £400,000 in the previous year and underlying EBITDA increased to £1.3m from £800,000 on continuing operations.

Coral said it had repaid in full the CBIL loan facility it had taken out at the start of the pandemic.

During the financial period Coral also agreed to sell its former head office and manufacturing facility in Haydock, Merseyside for £3.5m.

Joe Grimmond, Chairman, said: “Whilst we have confidence in our development strategy and the prospects of the Group, the very real uncertainties over Brexit and the coronavirus pandemic are a cause for concern.

The Group continues with its strategic progress of increasing focus on value-added and innovative products, particularly in the telecommunications, rail industry, shutters, extrusion and vacuum forming areas. Our aim is to build a significant plastic moulding business with a bias towards using recycled materials.

“Our Group is facing macro-economic challenges that are unprecedented, but we believe that our balance sheet and margins mean that we can mitigate the effects.

“The crisis will pass at some point. At that time, it will be the work we do to move the business forward that will determine our future success. So, our priorities being clear: (1) to do all we can to keep our workplaces as safe as possible for staff, (2) secure the cash resources of the business and (3) continue to develop our product ranges throughout the next financial period.

“We have enjoyed a strong start to our current financial year and we look forward to a satisfactory outturn for the year given the prevailing conditions.”

An interim dividend of 0.5p per share was paid on 28 May 2021 and a further 0.5p per share is proposed to be paid on 30 November 2021, making a full year dividend of 1p per share.