News blog

Coral Products

• BY: Andrew Hore |
• POSTED: 07/02/2013 |

Injection moulded plastic media and food packaging supplier Coral Products says that weak sales of DVD cases mean that it will not meet its full year profit expectations. 

The Coral share price fell by one-fifth to 11.62p, which values the plastic packaging company at £4.87m.

Coral reported a swing from loss to profit in the six months to October 2012. Revenues grew from £8.66m to £9.41m and a loss of £356,000 was turned into a profit of £480,000. Media packaging generated 46% of revenues, down from 71% the previous year. The main growth came from the food containers business, which remains on budget. The product range is still being extended and includes a range of ice cream and salad containers.

Net debt was £3.262m at the end of October 2012. Since then, Coral has bought the freehold of its Haydock manufacturing site for £1.75m and this should generate £250,000 a year in cost savings.

Coral increased its loan facilities by £1.4m and paid the rest from a share placing at 12.5p a share with funds managed by MAM Funds, which raised a total of £475,000. MAM owns 9% of Coral.

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