7
January 2025
Coral Products
Plc
("CRU" or
the "Company")
Exchange of Contracts of
Haydock Properties and
Fire Insurance Claim
Settlement
Coral Products plc, a group of
specialist businesses in the design, UK manufacture and
omni-channel supply of a wide range of bespoke plastic products
based in Wythenshawe, Manchester, announces that it has exchanged
contracts for the sale and leaseback (the "Sale and Leaseback") of
two freehold properties (North and South buildings, Haydock
Industrial Estate, Haydock) with completion expected in mid
February 2025.
The properties are being sold to
Glenbrook H1 Ltd (an unrelated party) for £1.7m against a book
value of £1.3m. The buildings will be leased for 15 years with an
initial lease of £155,000 per annum.
In addition, the Company has agreed
a final settlement for the insurance claim made by its subsidiary
Film & Foil Solutions Ltd relating to a fire in May 2020,
resulting in a cash payment of £900,000 to the Company.
Of the £2.6m of gross proceeds
including the insurance claim and the proceeds from the Sale and
Leaseback, £1.1m will be used to pay down, in full, the remainder
of the mortgage on the two freehold properties and other
borrowings. The remaining £1.5m will be used to strengthen
both working capital and the Company's balance sheet.
The £1.5m of working capital
improvement, together with newly negotiated credit facilities,
strengthens the financial resilience of the Group and is sufficient
for its needs going forward.
Joe Grimmond, Chairman of Coral Products,
commented: "I am delighted that we have agreed
the sale of the two properties at Haydock and finalised the
settlement owed to us relating to Film & Foil. The outcome
being a material improvement to our working capital and balance
sheet and to the overall financial resilience of the Group.
Together with the cost efficiencies we continue to target, we are
in a much stronger position as we enter 2025."
For further
information, please contact:
|
Coral Products
plc
Joe Grimmond, Chairman
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Tel: 07703 518148
|
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Nominated
Adviser & Broker
Cavendish
Capital Markets Limited
Adrian Hadden (Corporate Finance)
Charlie Combe (ECM)
|
Tel: 020 7397 1966
|
|
|
|
|
Financial
PR
Novella
Tim Robertson/Safia Colebrook
|
Tel: 020 3151 700
|
This announcement has been posted
to: https://coralproducts.com/
The information contained within
this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 as amended by regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310. Upon the publication of
this announcement via Regulatory Information Service, this inside
information is now considered to be in the public
domain.