TIDMCRU
RNS Number : 5040Y
Coral Products PLC
07 September 2022
7 September 2022
CORAL PRODUCTS PLC
('Coral' or the 'Company' or the 'Group')
Final results for year ended 30 April 2022
Coral Products PLC, a specialist in the design, manufacture and
supply of injection moulded plastic products based in Wythenshawe,
Manchester, announces its audited final results for the year ended
30 April 2022.
KEY FINANCIALS
2022 2021
GBP
Group revenue on continuing activities 14,391,000 10,714,000
Underlying operating profit* 1,574,000 867,000
Separately disclosed non-cash items (348,000) (292,000)
Gross Margin 36.7% 35.5%
Underlying Profit for the year before taxation* 1,492,000 756,000
Profit/(loss) for the year before taxation 1,330,000 (316,000)
Underlying EBITDA* 1,779,000 1,284,000
EBITDA 1,944,000 496,000
Basic earnings per share 1.19p (0.29)p
Diluted earnings per share 1.17p (0.29)p
Dividend paid per share for year ended
April 2022 0.50p 0.00p
Dividend paid per share for year ended 1.00p -
April 2021
* Underlying results are reported before separately disclosed
items, as shown in note 2. Such underlying results are not intended
to be a substitute for, or superior to, IFRS measures of
profit.
HEADLINES
-- Much improved performance in our continuing operations during the year.
-- Underlying operating profit increased to GBP1.6m (2021:
GBP0.9m) and underlying EBITDA increased to GBP1.8m (2021:
GBP1.3m).
-- Gross margin increased to 36.7% (2021: 35.5%).
-- The sale of the land and buildings at Haydock completed
bringing in a further GBP3.5m of cash.
-- Cash reserves in the Group total GBP7.6m (2021: GBP3.8m).
-- An interim dividend of 0.5p per share was paid on 3 December
2021 with a further 0.4p per share paid on 1 June 2022. A final
dividend of 0.2p is proposed to be paid on 30 November 2022, making
a full year dividend of 1.1p (2021: 1.0p) per share.
POST YEAR HEADLINES
-- Acquisition of Film and Foil on 4 May 2022 for a total consideration of GBP3,000,000.
-- Acquisition of Alma on 30 May 2022 for a total consideration of GBP1,500,000.
-- Review of all group energy contractual relationships to
confirm all group energy needs are of a fixed and long-term nature
agreed prior to the current energy crisis
Commenting on the results, Joe Grimmond, Chairman, said:
"2021/22 was an exceptionally productive year for Coral Products
plc as we continue to adapt and develop our business to enable us
to maximise the opportunities available."
"We enter the 2022/23 financial period with confidence for the
outlook for our business and its ability to continue its successful
evolution. The effects of the pandemic are ongoing and we remain
mindful of macroeconomic and geopolitical risks. However, our
continued investment over many years in our people and our systems
has generated strong and resilient results in the past year and we
believe will continue to do so. Our continuing priority is to do
all we can to keep our workplaces as safe as possible for staff. We
have planned our business to be flexible, in all areas, to meet
fluctuating levels of demand. We have robust financial controls
that will ensure we maintain our working capital requirements
whilst meeting all our agreed parameters with our financial
partners and due to contracts already negotiated all its operations
will remain relatively unaffected by the current turmoil in energy
prices."
"The Group continues with its strategic progress of increasing
focus on value-added and innovative products. Our aim is to build a
significant specialist plastic business with a bias towards using
recycled materials."
"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."
For further information, please contact:
Coral Products plc
Joe Grimmond, Chairman Tel: 07703 518
148
Nominated Adviser & Broker
Cenkos LLP Tel: 020 7397
Stephen Keys 1966
Charlie Combe
Capital Markets Consultants Tel: 07515 587
Richard Pearson 184
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
CHAIRMAN'S STATEMENT
Chairman's Corporate Governance Statement
As Chairman of the Board, my role is to set the strategy for the
company, monitor the ongoing performance of the companies within
the Group to ensure that they are meeting our requirements and also
identify potential acquisition targets.
In addition, my role also encompasses overseeing the functioning
of the Board and its effectiveness and ensuring sound corporate
governance practices are followed.
All the Directors of Coral believe strongly in the importance of
good corporate governance for the creation of shareholder value
over the medium to long-term and to engender trust and support
amongst the Group's wider stakeholders.
In accordance with the changes to AIM Rule 26 the Company
applies the revised QCA Corporate Governance Code published earlier
in 2018. I work with key executives throughout the organisation to
instil good corporate governance practices in accordance with the
Code.
The Board monitors our corporate governance practices and will
always implement improvements which further enhance performance
and/or benefit stakeholders.
Trading
2021/22 was an exceptionally productive year for Coral Products
plc as we continue to adapt and develop our business to enable us
to maximise the opportunities available. An analysis of our
performance and our outlook for the year ahead are covered in
detail in the following pages, but, looking back on the year, among
the highlights are:
-- The Board remains committed to its long-term progressive
dividend policy, which takes account of the underlying growth,
whilst acknowledging the requirement for continuing investment and
short-term fluctuations in profit. Having made two interim dividend
payments totalling 0.9p for this financial period the Board are
proposing a final dividend of 0.2 pence per share.
-- The sale of the land and building in Haydock completed in
November 2021, following the completion of the roof replacement
works.
-- Customised Packaging Limited is now fully integrated into the
Group and performing well. An earnout was paid in February 2022 as
per the sale and purchase agreement following better than expected
results for the period January to December 2021.
-- Tatra Rotalac Limited saw a significant increase in turnover
and net profit. Output has improved following operational
efficiencies and investment in new machinery.
-- Global One Pak Limited has strengthened its management team
following the departure of the original directors. The team is
focusing on future growth and researching new innovative products
and markets.
-- The Board is continuing to consider the most effective use of
the very strong cash rich asset base. We recognise that in today's
low interest rate climate cash is a poor substitute for profit
earning assets.
I am very proud to see how everyone within the business has
embraced our challenges, opportunities and ambitions. We are
reliant on the expertise, professionalism and commitment of our
people. I would like to thank them for this, and also for the
continued commitment that they have shown over the past two years
whilst having to deal with disruption to both their work and
personal lives due to the pandemic.
Outlook
We enter the 2022/23 financial period with confidence for the
outlook for our business and its ability to continue its successful
evolution. The effects of the pandemic are ongoing and we remain
mindful of macroeconomic and geopolitical risks. However, our
continued investment over many years in our people and our systems
has generated strong and resilient results in the past year and we
believe will continue to do so. Our continuing priority is to do
all we can to keep our workplaces as safe as possible for staff. We
have planned our business to be flexible, in all areas, to meet
fluctuating levels of demand. We have robust financial controls
that will ensure we maintain our working capital requirements
whilst meeting all our agreed parameters with our financial
partners and due to contracts already negotiated all its operations
will remain relatively unaffected by the current turmoil in energy
prices.
The Group continues with its strategic progress of increasing
focus on value-added and innovative products. Our aim is to build a
significant specialist plastic business with a bias towards using
recycled materials.
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.
Joe Grimmond
Chairman
6 September 2022
Group Income Statement
for the year ended 30 April 2022
2022 2021
GBP'000 GBP'000
------------------------------------------------------------- --------- --------- ---------
Revenue 14,391 10,714
Cost of sales (9,104) (6,913)
--------- ---------
Gross profit 5,287 3,801
Operating costs
Distribution expenses (787) (761)
------------------------------------------------------------- --------- --------- ---------
Administrative expenses before impairment and
other separately disclosed items (2,926) (2,173)
Other separately disclosed items (162) (1,072)
Administrative expenses (3,088) (3,245)
---------
Operating profit/(loss) 1,412 (205)
Finance costs (82) (111)
--------- ---------
Profit/(loss) for the financial
year before taxation 1,330 (316)
Taxation (363) 76
--------- ---------
Profit/(loss) for the financial year attributable
to the equity holders of the parent on continuing
activities 967 (240)
Profit/(loss) on discontinued activities (see
note 3) - 715
--------- ---------
Profit/(loss) for the financial year attributable
to the equity holders of the parent 967 475)
--------- ---------
Basic earnings loss per ordinary share 1.19p (0.29)p
Diluted earnings loss per ordinary share 1.17p (0.29)p
Group Statement of Comprehensive Income
for the year ended 30 April 2022
2022 2021
GBP'000 GBP'000
------------------------------------------------ ---------- ----------
Profit/(loss) for the financial
year 967 475
---------- ----------
Total other comprehensive income - -
---------- ----------
Total comprehensive (loss)/income for the year
attributable to equity holders of the parent 967 475
---------- ----------
Balance Sheet
as at 30 April 2022
As at 30 As at 30 April
April 2021
2022 GBP'000
GBP'000
---------------------------------- --------- ---------------
ASSETS
Non-current assets
Goodwill 1,945 1,945
Other intangible assets 916 1,243
Property, plant and equipment 749 630
Right of use assets 1,393 1,496
Investments in subsidiaries - -
--------- ---------------
Total non-current assets 5,003 5,314
--------- ---------------
Current assets
Inventories 1,781 1,828
Trade and other receivables 3,237 4,453
Cash and cash equivalents 7,589 3,843
Total current assets 12,607 10,124
--------- ---------------
Assets held for sale - 2,500
LIABILITIES
Current liabilities
Other borrowings 1,389 1,353
Lease liabilities 416 459
Trade and other payables 2,800 2,039
--------- ---------------
Total current liabilities 4,605 3,851
--------- ---------------
Net current assets/(liabilities) 8,002 8,773
--------- ---------------
Non-current liabilities
Lease liabilities 907 1,035
Deferred tax 391 315
--------- ---------------
Total non-current liabilities 1,298 1,350
--------- ---------------
NET ASSETS 11,707 12,737
--------- ---------------
SHAREHOLDERS' EQUITY
Share capital 859 859
Share premium 5,621 5,621
Treasury shares (1,008) (218)
Other reserves 1,061 1,567
Retained earnings 5,174 4,908
--------- ---------------
TOTAL SHAREHOLDERS' EQUITY 11,707 12,737
--------- ---------------
Statement of Changes in Shareholders' Equity
for the year ended 30 April 2022
Called Share
Up Premium Treasury Other Retained Total
Share Reserve Shares Reserves Earnings Equity
Capital GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
GBP'000
---------------------------- --- --------- --------- ----------- ----------- ----------- ----------
Group
At 1 May 2020 826 5,288 - 1,567 4,425 12,106
Profit for the year - - - - - 475 475
Other comprehensive income - - - - - - -
--------- --------- ----------- ----------- ----------- ----------
Total comprehensive loss - - - - - 475 475
--------- --------- ----------- ----------- ----------- ----------
Contributions by and
distributions to owners
Equity settled share-based
payments - - - - 8 8
Issue of new shares 33 333 - - - 366
Purchase of treasury shares - - (218) - - (218)
Equity settled share-based
payments - - - - 8 8
Dividend paid - - - - - -
--------- --------- ----------- ----------- ----------- ----------
At 1 May 2021 859 5,621 (218) 1,567 4,908 12,737
Profit for the year - - - - 967 967
Other comprehensive loss - - - - - -
Total comprehensive loss - - - - 967 967
--------- --------- ----------- ----------- ----------- ----------
Contributions by and
distributions to owners
Equity settled share-based
payments - - - - 21 21
Purchase of treasury shares - - (790) - - (790)
Revaluation reserve - - - (506) 506 -
Dividend paid - - - - (1,228) (1,228)
At 30 April 2022 859 5,621 (1,008) 1,061 5,174 11,707
--------- --------- ----------- ----------- ----------- ----------
Cash Flow Statement
for the year ended 30 April 2022
Group
2022 2021
GBP'000 GBP'000
----------------------------------------------- --------- ---------
Cash flows from operating activities
Profit for the year 967 475
Adjustments for:
Depreciation of property, plant and equipment 165 487
Depreciation of right of use assets under
IFRS16 296 666
Amortisation of intangible assets 327 284
Share based payment charge 21 8
Profit on disposal of subsidiary - (1,133)
Profit on disposal of building (424) -
Interest payable 82 329
Taxation charge/(credit) 363 (48)
--------- ---------
Operating cash flows before movements
in working capital 1,797 1,068
(Increase)/decrease in inventories 47 (382)
Decrease/(increase) in trade and other
receivables 82 433
Increase/(decrease) in trade and other
payables 761 422
--------- ---------
Cash generated by operations 2,687 1,541
UK corporation tax received - 299
--------- ---------
Net cash generated from/(used in) operating
activities 2,687 1,840
--------- ---------
Cash flows from investing activities
Net cash on disposal of subsidiary - 7,771
Net cash on disposal of building 3,500 -
Acquisition of subsidiary - (937)
Acquisition of property, plant and equipment (206) (454)
Net cash generated from/(used in)
investing activities 3,294 6,380
--------- ---------
Cash flows from financing activities
New bank borrowings raised - 1,000
Dividends paid (1,228) -
New lease liabilities 274 -
Interest paid on bank borrowings - (70)
Interest paid on invoice discounting (22) (49)
Interest paid on lease liabilities (60) (210)
Repayments of bank borrowings - (2,765)
Repayments of obligations under lease
liabilities (445) (893)
Purchase of treasury shares (790) (218)
Drawdowns on invoice discounting facility 14,799 23,288
Repayments of invoice discounting facility (14,763) (24,913)
Net cash used in financing activities (2,235) (4,830)
--------- ---------
Net increase in cash and cash equivalents 3,746 3,390
Cash and cash equivalents at 1 May 3,843 453
--------- ---------
Cash and cash equivalents at 30 April 7,589 3,843
--------- ---------
Notes
for the year ended 30 April 2022
1. Basis of preparation
The financial information set out above does not constitute the
Group's statutory accounts for the years ended 30 April 2022 or
2021 within the meaning of Section 434 of the Companies Act 2006
but is derived from those accounts. Statutory accounts for 2021
have been delivered to the Registrar of Companies and those for
2022 will be delivered following the company's Annual General
Meeting.
This financial information has been prepared in accordance with
International Financial Reporting Standards ("IFRSs") and
International Financial Reporting Interpretations Committee (IFRIC)
interpretations as adopted by the European Union and with those
parts of the Companies Act 2006 applicable to companies reporting
under IFRS.
2. Underlying operating profit and separately disclosed
items
Underlying profit - the Company believes that underlying profit
and underlying earnings provide additional useful information for
shareholders. The term underlying earnings is not a defined term
under IFRS and may not therefore be comparable with similarly
titled profit measurements reported by other companies.
2022 2021
On continuing operations GBP'000 GBP'000
---------------------------------------------------- --------- ---------
Operating profit/(loss) 1,412 (205)
Separately disclosed items within administrative
expenses
---------------------------------------------------- --------- ---------
Share based payment charge 21 8
Amortisation of intangible assets (customer
relationships and brands) 327 284
Profit on sale of land and building (383) -
Reorganisation costs 158 780
Cost of living payment to all staff 39 -
Total separately disclosed items 162 1,072
--------- ---------
Underlying operating profit 1,574 867
Depreciation 205 417
--------- ---------
Underlying EBITDA 1,779 1,284
Separately disclosed items (excluding amortisation
and impairment) 165 (788)
--------- ---------
EBITDA 1,944 496
--------- ---------
Profit/(loss) before tax 1,330 (316)
Separately disclosed items 162 1,072
--------- ---------
Underlying profit/(loss) before tax 1,492 756
--------- ---------
3. Earnings per share
Basic and underlying earnings per share
Number of Shares 2022 2021
----------------------------------------------- ------------ -----------
Weighted average number of shares 85,942,534 83,143,645
Effect of weighted average number of treasury
shares (4,828,836) (111,192)
Weighted average number of shares for the
purposes of basic earnings per share 81,113,698 83,032,453
Effect of share options 1,369,230 2,138,460
Weighted average number of shares for the
purposes of diluted earnings per share 82,482,928 85,170,913
------------ -----------
2022 2021
Weighted Earnings Weighted (Loss)/
average per (Loss)/ average earnings
Earnings number share earnings number per share
Continuing Operations GBP'000 of shares (pence) GBP'000 of shares (pence)
---------------------------- ----------- ----------- --------- ----------- ----------- -----------
Profit/(loss) for the year 967 81,113,698 1.19 (240) 83,032,453 (0.29)
Separately disclosed items
(note 6) 162 - - 1,072 - -
----------- ----------- --------- ----------- ----------- -----------
Underlying profit/(loss)
for the period 1,129 81,113,698 1.39 832 83,032,453 1.00
----------- ----------- --------- ----------- ----------- -----------
5. Dividends
An interim dividend for the year ended 30 April 2022 of 0.5p per
share was paid 3 December 2021. A second dividend of 0.4p per share
was paid 1 June 2022.
A final dividend payment for the year ended 30 April 2022 of
0.2p per share is recommended.
6. Group reconciliation of net cash flow to movement in net
debt
2022 2021
GBP'000 GBP'000
-------------------------------------------- --------- ---------
Net increase in cash and cash equivalents 3,746 3,390
Decrease/(increase) on invoice discounting
facility (36) 1,625
Decrease/(increase) in bank loans
and other loans - 1,765
Decrease in lease liabilities 171 2,206
--------- ---------
Movement in net debt for the period 3,881 8,986
Net debt at beginning of period 996 (7,990)
--------- ---------
Net funds/(debt) at end of period 4,877 996
--------- ---------
7. Post Balance Sheet Event
In May 2022 the group acquired 100% of the share capital of Film
& Foil Solutions Ltd for a total consideration of GBP3.0
million satisfied by GBP2.25 million in cash and GBP0.75 million of
shares of Coral Products at 15.5p. The purchase price allocation
has not yet been performed on this acquisition. In the most recent
reporting period of 31 December 2020, revenues were GBP10.4m and
profit before taxation was GBP61,000.
In May 2022 the group acquired 100% of the share capital of Alma
Products Ltd for GBP1.5 million satisfied by cash. In addition, an
earn out agreement is payable for the year ended 30 April 2023 if
the EBITDA is greater than GBP300,000. The purchase price
allocation has not yet been performed on this acquisition. In the
most recent reporting period of 31 December 2021, revenues were
GBP12.3m and profit before taxation was GBP145,000.
8. Publication of Annual Report
A copy of the 2022 Report & Accounts will be sent to all
shareholders. Further copies will be available to the public at the
company's registered address at Southmoor Road, Wythenshawe,
Manchester, M23 9DS and on the Company's website at
www.coralproducts.com.
9. 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 Corals 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.
The Directors of the Group take responsibility for this
announcement.
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END
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(END) Dow Jones Newswires
September 07, 2022 02:00 ET (06:00 GMT)
Grafico Azioni Coral Products (AQSE:CRU.GB)
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