TIDMCRU
RNS Number : 2887J
Coral Products PLC
12 December 2022
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 results for the six
months to 31 October 2022.
"Investing in Growth - Organically and via Acquisition"
Financial headlines Six months Six months
to to
31 October 31 October
2022 2021 % Change
GBP17.6
Group sales million GBP7.1 million 147.9%
---------------------------------------- ---------------- ---------------- ---------
Gross profit GBP4.8 million GBP2.5 million 92.0%
---------------------------------------- ---------------- ---------------- ---------
Underlying operating profit (excluding
finance expenses) * GBP1,376,000 GBP759,000 81.3%
---------------------------------------- ---------------- ---------------- ---------
Reported profit before taxation GBP894,000 GBP 510,000 75.3%
---------------------------------------- ---------------- ---------------- ---------
Underlying EBITDA * GBP1,881,000 GBP1,014,000 85.5%
---------------------------------------- ---------------- ---------------- ---------
Underlying basic earnings per
share * 1.17p 0.81p 44.4%
---------------------------------------- ---------------- ---------------- ---------
Interim dividend per share 0.50p 0.50p
---------------------------------------- ---------------- ---------------- ---------
* 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.
Operational and Financial Highlights
Completed Acquisitions
Of the GBP17.6m in sales, GBP10.3m came from the acquired
businesses:
-- May 2022, Film & Foil Solutions Ltd acquired for GBP3.0m.
-- May 2022, Alma Products Ltd acquired for GBP2.5m (including an earn out of up to GBP1m).
-- September 2022, Manplas Ltd acquired for GBP300k.
-- October 2022, Ecodeck Ltd acquired for GBP5.5m (including an earn out of up to GBP1.15m).
Underlying businesses performing well
-- Organic growth in the 2 larger UK-based businesses,
Tatra-Rotalac and Customised Packaging, of a combined 11.1% and an
improvement in gross margin.
-- This was offset by Global One Pak which performed in line
with management expectations and with improved margins in spite of
supply chain challenges which are expected to improve in the last
quarter as production moves from China to the UK.
-- Tatra-Rotalac exceeded expectations with both sales and
profits significantly ahead of budget.
-- Customised Packaging continues to perform well with focus on driving efficiencies.
Targeted Capex Plan to deliver future growth
-- Committed GBP2.5m to support future demand for new opportunities
o New injection moulding machines to create new lines
o Tooling for specific products and anticipated orders
o Re-configured warehouse space to create 5000 sq. ft of
additional manufacturing capacity upgraded to BRC standard
Financial Strength
-- Cash and cash equivalents of GBP3.8m (2021: GBP5.5m). Cash
and cash equivalents are defined as cash of GBP3.8m (2021: GBP4.8m)
plus treasury shares of GBPnil (2021: GBP0.7m).
-- Strong net assets position.
-- Property has been revalued resulting in an increase of GBP0.9m to GBP3.2m
-- Interim dividend of 0.5p declared.
Sustainability Objectives
-- The Group is proud of its focus on sustainability:
o Adoption of bio-based materials.
o Increasing move to re-cyclable materials.
o Supply chain tracking and transparency.
Positive Outlook
-- Benefit from the acquired businesses to continue to come
through in the second half of the year with significant
opportunities to drive margins through real efficiencies,
optimising people, assets and market opportunities.
-- Variable costs well managed across the Group with energy costs fixed.
-- Potential for further M&A subject to meeting "value add" criteria.
-- Overall, well placed going into the second half of the financial year.
Joe Grimmond, Executive Chairman, commented: "These excellent
results reflect our ongoing investment in future growth. Our
objective is to build a specialist UK plastics business of scale,
targeting profitable, high-demand sectors. We aim to drive growth
both organically and via acquisitions, whilst maintaining our
commitment to sustainable objectives. In the 6-month period to 31
October 2022, we acquired four companies, all of which have
performed well and we have committed GBP2.5m of capex into specific
new business projects. At the same time, we remain prudent with a
strong balance sheet, backed by freehold assets and cash, and we
look to return value to shareholders via dividends and capital
growth. And as a result, we are announcing an interim dividend of
0.5p. Like all businesses, we are mindful of the challenging
economic environment, nevertheless, we believe Coral is in a good
position going forward and we have yet to show the full benefit of
our investments to date."
Joe Grimmond, Chairman, and Sharon Tinsley, Finance Director,
will provide a live investor presentation relating to the financial
results via the Investor Meet Company (IMC) platform on Wednesday,
14 December 2022 at 10:30am GMT.
Investors can sign up for free via:
https://www.investormeetcompany.com/coral-products-plc/register-investor
Enquiries: www.coralproducts.com Tel:
-------------------------------- ----------------------- --------------
Coral Products plc
Joe Grimmond Executive Chairman 07703 518 148
Cenkos Securities plc
Adrian Hadden, Charlie
Combe NOMAD and Broker 020 7397 8900
Novella Communications
Tim Robertson/Safia Colebrook
coral@novella-comms.com Financial PR 020 3151 7008
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.
Executive Chairman's Statement
Introduction
I am very pleased to present these results as they reflect our
clear progress towards building a specialist UK plastic business of
scale. The investments we have made in the period, adding four new
plastic businesses, has driven the uplift in sales alongside solid
organic growth generated from our existing businesses. Importantly,
whilst all four acquisitions have performed to plan, there is
significant untapped potential to come. As a management team, we
are confident of our ability to add real value to each business,
using our extensive knowledge of how to make consistent and
attractive returns from the specialist plastics sector. Going into
the second half of the financial year, we expect to continue to
benefit from the acquisitions and the capital expenditure invested
behind new business projects.
Results and Financial Position
Trading in the first half of the current year shows revenue
substantially ahead of the same period for last year. Reported
revenue was GBP17,587,000 (2021: GBP7,103,000), gross margins were
27.1% (2021: 35.7%) resulting in a gross profit of GBP4,759,000
(2021: GBP2,534,000). Underlying EBITDA was GBP1,881,000 (2021:
GBP1,014,000) and underlying operating profits increased to
GBP1,376,000 (2021: GBP759,000).
The change in gross margin reflects a change in the mix of
companies within the Group due to acquisitions whilst gross margins
on existing businesses improved. After investing GBP11,571,000 in
new subsidiaries the gearing remains comfortable at 41%. The
balance sheet net asset position is strong at GBP1 4 ,881,000
(2021: GBP12,376,000 net of GBP693,000 treasury shares). This
represents a solid asset platform for developing the business.
Operations
Tatra-Rotalac Ltd
This business, a leading provider of plastic extrusion and
injection moulded products for commercial use, has exceeded the
board's expectations during the first half of the financial year
with sales and profits well above budget. The recent capital
expenditure is expected to generate additional improvements to
performance in the final quarter of the year.
Global One-Pak Ltd
This business, a leading supplier of lotion pumps, triggers and
mist sprayers, is currently being held back due to logistical cost
increases in Chinese trading. Performing against a much-reduced
sales budget and cost base, Global One Pak has improved gross
margin and operating profit.
Performance in the second half of the financial year is expected
to improve during the final quarter when production of some caps
and enclosures begins in the UK.
Customised Packaging Ltd
This business, a producer of specialised packaging for
transportation including crates and cases, continues to perform
well. Following the departure of the old management team in the
earlier part of the year, focus has been on improving efficiencies
within the business. Customised Packaging maintained sales and
improved margin and profit.
Film & Foil Solutions Ltd
This business joined the group in May 2022. It is a market
leading converter and stockist of flexible packaging film, print
lamination film and speciality plastics, paper and aluminium foils.
This business came with freehold premises valued at GBP2.2 million.
This acquisition reinforces our focus on niche, specialist
operators in the plastics sector.
Alma Products Ltd
This business joined the Group in May 2022. It is a niche
specialist and expert in extrusion, thermoforming and container
printing serving the food industry, providing formable plastic
sheet for Form-Fill-Seal applications, thermoformed and printed
plastic food packaging. This business is very well invested in
state-of-the-art sheet extrusion, volume vacuum forming and one of
the most advanced computer-controlled printing facilities in the
industry. This business came with freehold premises valued at GBP1
million.
Manplas Ltd
This business joined the Group in September 2022. The premises
adjoin those of our Tatra Rotalac subsidiary and will enable
further development of the Tatra Rotalac business by expanding
manufacturing space available without the substantial costs
involved in increasing the required power supply. Furthermore, the
services provided by Manplas are complementary to those of our
Customised Packaging ltd subsidiary also located nearby.
The combined acknowledged expertise of Customised Packaging and
Manplas forms what will be a leading provider of customised product
protection solutions solving logistical problems across multiple
sectors. This is in line with our objective of building a
specialist group of businesses which are product and design
led.
Ecodeck Ltd
This business joined the Group in October 2022. This business is
a natural strategic fit for the group. The plastic grids offer
natural synergy with some of Coral's existing products, including
manufacturing synergies. There is potential to leverage Ecodeck's
ecommerce platform for other group eco-friendly products.
Capital Expenditure
Total capital expenditure committed to in the first six months
was GBP2,500,000 (2021: GBP375,000) all related to new product
opportunities. GBP854,000 of which has been paid in advance.
Dividends
The board have declared an interim dividend of 0.50 pence per
share (2021: 0.50p). The ex-dividend date and the record date for
the interim dividend were 10 November 2022 and 11 November 2022
respectively. The interim dividend will be paid on 16 December
2022. This continues to reflect our confidence in the positive
performance and profitable results of the Group.
Outlook
I am delighted with the performance of the business in the first
half of the financial year. I am pleased to report that the results
to date are well ahead of the same period last year, despite the
prevailing uncertainties of the Covid-19 pandemic, the war in
Ukraine and higher utility costs. With the new acquisitions and the
increased capital expenditure in plant and equipment, tooling and
premises to meet future forecast demand for new products, we remain
confident of the Group's future prospects.
Joe Grimmond
Executive Chairman
12 December 2022
CONSOLIDATED INCOME STATEMENT
Six months Six months
to to Year to
31 October 31 October 30 April
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Note
Revenue 3 17,587 7,103 14,391
Cost of sales (12,828) (4,569) (9,104)
--------------- --------------- ------------
Gross profit 4,759 2,534 5,287
Operating costs
Distribution expenses (443) (334) (787)
Administrative expenses before
separately disclosed items (2,940) (1,441) (2,926)
--------------- --------------- ------------
Underlying operating profit 1,376 759 1,574
Separately disclosed items:
---------------
Share based payment credit/(charge) (11) (25) (21)
Amortisation of intangible
assets (163) (163) (327)
Reorganisation costs (49) - (158)
Gain on sale of land and buildings - - 383
One off cost of living payment
to all staff - - (39)
(223) (188) (162)
Operating profit/(loss) 1,153 571 1,412
Finance expense (259) (61) (82)
--------------- --------------- ------------
Profit/(loss) before taxation 894 510 1,330
Note
Taxation 4 (89) - (363)
--------------- --------------- ------------
Total comprehensive income/(loss) 805 510 967
--------------- --------------- ------------
Earnings per ordinary share Note
5
Basic and diluted (pence) 0.92 0.59 1.19
Underlying basic (pence) 1.17 0.81 1.39
--------------- --------------- ------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 October 31 October 30 April
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Non-current assets
Goodwill 7,506 1,945 1,945
Other intangible assets 752 1,079 916
Property, plant and equipment 7,144 1,133 749
Right of use assets 1,960 1,117 1,393
Total non-current assets 17,362 5,274 5,003
-------------- -------------- ------------
Current assets
Inventories 5,570 1,752 1,781
Trade and other receivables 8,662 3,371 3,237
Cash and cash equivalents 3,820 4,780 7,589
Total current assets 18,052 9,903 12,607
-------------- -------------- ------------
Assets held for sale - 2,500 -
Current liabilities
Bank overdrafts and borrowings (6,338) (1,832) (1,389)
Trade and other payables (9,875) (1,906) (2,800)
Lease liabilities (709) (405) (416)
Total current liabilities (16,922) (4,143) (4,605)
-------------- -------------- ------------
Non-current liabilities
Borrowings (1,139) - -
Lease liabilities (1,757) (866) (907)
Deferred taxation (715) (292) (391)
-------------- -------------- ------------
Total non-current liabilities (3,611) (1,158) (1,298)
-------------- -------------- ------------
Total liabilities (20,533) (5,301) (5,903)
-------------- -------------- ------------
Total net assets 14,881 12,376 11,707
-------------- -------------- ------------
Shareholders' Equity
Share capital 903 859 859
Share premium 6,272 5,621 5,621
Investment in Own shares - (693) (1,008)
Other reserves 2,050 1,567 1,061
Retained earnings 5,656 5,022 5,174
-------------- -------------- ------------
Total equity 14,881 12,376 11,707
-------------- -------------- ------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Share Share Treasury Other Retained Total
capital premium shares reserves earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 May 2022 859 5,621 (1,008) 1,061 5,174 11,707
Total comprehensive income - - - - 805 805
Credit for share based
payment - - - - 11 11
Sale of treasury shares - - 1,008 136 - 1,144
Issue of new shares 44 651 - - - 695
Revaluation reserve - - - 853 - 853
Dividend paid - - - - (334) (334)
--------- --------- --------- ---------- ---------- --------
At 31 October 2022 903 6,272 - 2,050 5,656 14,881
--------- --------- --------- ---------- ---------- --------
For the six months to 31 October 2021 (unaudited)
Share Share Treasury Other Retained Total
capital premium shares reserves earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 May 2021 859 5,621 (218) 1,567 4,908 12,737
Total comprehensive
income - - - - 510 510
Charge for share based
payment - - - - 25 25
Purchase of treasury
shares - - (475) - - (475)
Dividend paid - - - - (421) (421)
At 31 October 2021 859 5,621 (693) 1,567 5,022 12,376
--------- --------- --------- ---------- ---------- --------
For the year ended 30 April 2022 (audited)
Share Share Treasury Other Retained Total
capital premium shares reserves earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 May 2021 859 5,621 (218) 1,567 4,908 12,737
Total comprehensive profit - - - - 967 967
Credit for share based
payment - - - - 21 21
Revaluation reserve - - - (506) 506 -
Purchase of treasury
shares - - (790) - - (790)
Dividend paid - - - - (1,228) (1,228)
At 30 April 2022 859 5,621 (1,008) 1,061 5,174 11,707
--------- --------- --------- ---------- ---------- --------
CONSOLIDATED STATEMENT OF CASH FLOWS
Six months Six months Year
to to to
31 October 31 October 30 April
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Cash flow from operating activities
Profit for the period after tax 805 510 967
Adjustments for:
Depreciation of property, plant
and equipment 268 122 165
Depreciation of right of use assets
under IFRS16 236 133 296
Amortisation of intangible assets 163 163 327
Share based payment (credit)/charge 11 25 21
Profit on disposal of building - - (424)
Loss on disposal of fixed asset 37 - -
Interest payable 259 61 82
Taxation charge/(credit) 89 - 363
(Increase)/decrease in inventories (182) 76 47
Decrease/(increase) in trade and
other receivables 1,025 505 82
(Decrease)/increase in trade and
other payables (5,916) (133) 761
Net cash generated from operating
activities (3,205) 1,462 2,687
-------------- -------------- ------------
Cash flow from investing activities
Net cash on disposal of building - - 3,500
Acquisition of subsidiaries, net
of cash in bank (3,852) - -
Acquisition of property, plant and
equipment (854) (375) (206)
Net cash (used in)/generated from
investing activities (4,706) (375) 3,294
-------------- -------------- ------------
Cash flow from financing activities
Interest paid on bank borrowings
and invoice discounting (259) (61) (22)
Interest paid on lease liabilities - - (60)
Dividends paid (334) - (1,228)
Repayments of obligations under
lease liabilities (136) (93) (171)
Purchase of treasury shares - (475) (790)
Issue of new shares - - -
New bank loans raised - - -
Movements on invoice discounting
facility 4,871 479 36
Net cash used in financing activities 4,142 (150) (2,235)
-------------- -------------- ------------
Net (decrease)/increase in cash
and cash equivalents (3,769) 937 3,746
Cash and cash equivalents at the
start of the period 7,589 3,843 3,843
-------------- -------------- ------------
Cash and cash equivalents at the
end of the period 3,820 4,780 7,589
-------------- -------------- ------------
NOTES TO THE FINANCIAL STATEMENTS
----------------------------------
1. Basis of preparation
The financial information set out in this Interim Report does
not constitute statutory accounts as defined in Section 435 of the
Companies Act 2006.
These interim financial statements are for the six months ended
31 October 2022. They do not include all the information required
for full annual financial statements and should be read in
conjunction with the consolidated financial statements of the Group
for the year ended 30 April 2022.
The Interim Report has not been reviewed by our auditor in
accordance with the International Standard on Review Engagement
2410 issued by the Auditing Practices Board.
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 2022.
3. Revenue
All production is based in the United Kingdom. The geographical
analysis of revenue is shown below:
Six months Six months
to to Year to
31 October 31 October 30 April
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
United Kingdom 17,166 6,827 13,799
Rest of Europe 368 186 134
Rest of the World 53 90 458
17,587 7,103 14,391
-------------- -------------- ------------
Turnover by business activity
Sale and manufacture of plastic
products 17,587 7,103 14,391
-------------- -------------- ------------
A breakdown of Group revenues by product group is shown
below:
Six months Six months
to to Year to
31 October 31 October 30 April
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Extrusion and injection moulding 5,051 4,419 9,468
Trigger sprays and nozzles 708 1,168 2,094
Vacuum forming 1,919 1,516 2,829
Flexible packaging 4,744 - -
Thermoforming and container 4,836 - -
printing
Eco-friendly grids and shed 329 - -
bases
17,587 7,103 14,391
-------------- -------------- ------------
4. Taxation
The taxation charge for the six months to 31 October 2022 is
based on the effective taxation rate, which is estimated will apply
to earnings for the year ending 30 April 2023. The rate used is
below the applicable UK corporation tax rate of 19% 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 87,554,854 (31 October 2021:
85,942,534 and 30 April 2022: 81,113,698).
Year to
Six months Six months
to to 30 April
31 October 31 October
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP000 p GBP000 p GBP000 p
Basic and diluted earnings
per ordinary share
Profit/(loss) for the period
after tax 805 0.92 510 0.59 967 1.19
--------- ----- --------- ----- ------- -----
Underlying earnings per ordinary
share
Underlying profit/(loss) for
the period after tax 1,028 1.17 698 0.81 1,129 1.39
--------- ----- --------- ----- ------- -----
6. 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 Six months Year
to to to
31 October 31 October 30 April
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Net (decrease)/increase in cash
and cash equivalents (3,769) 937 3,746
Net increase in invoice discounting
facilities (4,835) (479) (36)
(Increase)/decrease in bank and
other loans (1,253) - -
(Increase)/decrease in lease liabilities (1,143) 223 171
Movement in net debt in the financial
period (11,000) 681 3,881
Net funds/(debt) at beginning of
period 4,877 996 996
-------------- -------------- ------------
Net funds/(debt) at end of period (6,123) 1,677 4,877
-------------- -------------- ------------
7. Underlying profit and separately disclosed items
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, impairment of goodwill 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.
Six months Six months Year
to to to
31 October 31 October 30 April
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Operating profit/(loss) 1,153 571 1,412
Separately disclosed items within administration
expenses
------------------------------------------------------------ -------------- ------------
Share based payment (credit)/charge 11 25 21
Amortisation of intangible assets 163 163 327
Reorganisation costs 49 - 158
Gain from the sale of land and
buildings - - (383)
One off cost of living payment
to all staff - - 39
Total separately disclosed items 223 188 162
-------------- -------------- ------------
Underlying operating profit 1,376 759 1,574
Depreciation 505 255 205
Underlying EBITDA 1,881 1,014 1,779
8. Business Combinations
During the period the Group acquired 100% share capital of the
entities below:
-- May 2022, Film & Foil Solutions Ltd acquired for GBP3.0m.
-- May 2022, Alma Products Ltd acquired for GBP2.5m (including
an earn out of up to GBP1m) plus the excess cash of GBP210,000.
-- September 2022, Manplas Ltd acquired for GBP300k.
-- October 2022, Ecodeck Ltd acquired for GBP5.5m (including an
earn out of up to GBP1.15m) plus the excess cash of GBP61,000.
Details of the fair value of identifiable assets and liabilities
acquired, purchase consideration and goodwill are as follows:
Net assets acquired Alma Film Ecodeck Manplas Total
Products & Foil GBP'000s GBP'000s GBP'000s
GBP'000s GBP'000s
------------------------------- ---------- ---------- ---------- ---------- ----------
Cash and cash equivalents 706 363 1,462 26 2,557
Property, plant and equipment 1,472 2,831 236 115 4,654
Right of use assets 434 229 - 652 1,315
Inventories 881 1,773 112 341 3,107
Trade and other receivables 1,871 3,495 107 585 6,058
Trade and other payables (3,556) (5,933) (576) (1,616) (11,681)
---------- ---------- ---------- ---------- ----------
Total net assets 1,808 2,758 1,341 103 6,010
---------- ---------- ---------- ---------- ----------
Fair value of consideration GBP'000s
paid
------------------------------- ---------- ---------- ---------- ---------- ----------
Cash 1,710 2,250 3,411 200 7,571
Shares - 750 1,000 100 1,850
Deferred consideration 1,000 - 1,150 - 2,150
---------- ---------- ---------- ---------- ----------
Total consideration 2,710 3,000 5,561 300 11,571
---------- ---------- ---------- ---------- ----------
Goodwill 902 242 4,220 197 5,561
---------- ---------- ---------- ---------- ----------
As of the date of this report the purchase price allocation
exercise was not complete therefore all the intangibles have been
recognised as goodwill for the purposes of this report.
As part of the acquisition agreement with Ecodeck, if the profit
during the year to 31 January 2023 exceeds GBP1,000,000 then an
earn out will be paid equal to GBP3 for every GBP1 of profit before
tax that exceeds GBP1,000,000. The maximum earn out will not exceed
GBP1,150,000.
As part of the acquisition agreement with Alma Products, if the
EBITDA during the year to 30 April 2023 is equal to GBP500,000 then
an earn out will be paid equal to GBP1,000,000. If EBITDA is below
GBP500,000 then an earn out will be paid will be equal to
GBP1,000,000 less an amount equal to GBP5 for each GBP1 EBITDA is
below GBP500,000. If EBITDA is more than GBP500,000, an additional
earn out will be paid of GBP2.50 for every GBP1 by which EBITDA
exceeds GBP500,000. The maximum earn out will not exceed
GBP1,500,000.
Since the acquisition dates, the companies have contributed the
below revenues and profit before tax:
Revenue Profit
GBP'000s GBP'000s
Film & Foil Solutions Ltd 4,744 15
Alma Products Ltd 4,836 255
Manplas Ltd 375 (29)
Ecodeck Ltd 329 26
---------- ----------
10,284 267
---------- ----------
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IR FSAFAUEESEDE
(END) Dow Jones Newswires
December 12, 2022 02:00 ET (07:00 GMT)
Grafico Azioni Coral Products (AQSE:CRU.GB)
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Grafico Azioni Coral Products (AQSE:CRU.GB)
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