Coral Products reduces group debt with Haydock property sale
Listed plastics manufacturer Coral Products headquartered in Wythenshawe, Manchester, has confirmed the sale of two freehold properties on Haydock Industrial Estate to developer Glenbrook for £1.7m.
The two units had a book value of £1.3m and will be leased back to Coral for 15 years with an initial lease of £155,000 per annum.
In 2021 Coral also sold a neighbouring property – its former headquarters – to Glenbrook for £3.5m.
The company said the gross proceeds of £1.7 million will be used to repay outstanding mortgages of £750,000, materially reducing the group’s debt, with the net proceeds of £950,000 further strengthening the working capital position and improving the company’s balance sheet.
In addition, the company told the stock market this morning (17 February 2025) that Paul Rice has been appointed to the board of the company as group finance director with immediate effect.
The latest development is welcome news for Coral after chairman Joe Grimmond took “swift and effective” action plan to turn around a disappointing first half which cost the business £600k.
In October Lance Burn the chief executive of the Wythenshawe based plastics manufacturer left the business after just ten months and today the company confirmed it had a disappointing first half to the year.
Burn only joined the listed company at the start of January 2024 but in a statement to the stock market this morning non-executive chairman Joe Grimmond admitted the board had taken “swift and effective actions” after “disappointing” first half results.
In his first month at Coral Burn issued a profit warning to the stock market and scrapped plans to pay a dividend to shareholders.
At the start of 2024 Coral’s share price was 17.9p, but at close of business on Friday (14 February 2025) was 5.75p.
Cairn Financial Advisers were appointed as nominated adviser and sole broker earlier this month.
In a trading statement Coral said the company is taking a £600,000 hit by making several changes, including a “streamlined” senior leadership team” led by Ian Hillman, who was appointed as Group Chief Operating Officer on November 1, 2024, and a “comprehensive reorganisation across all levels and businesses”.
In the six months to the end of October the business made a £618K loss on reduced turnover of £15.8m (£17.1m).
In December the company also announced the resignation of its group finance director, Sharon Tinsley.
