REG - Coral Products PLC - Full Year Trading Update and Acquisition Update

Coral ProductsAnnouncement

07/07/2025 10:15

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RNS Number : 9995P  Coral Products PLC  07 July 2025

Coral Products Plc

("CRU" or the "Company")

Full Year Trading Update and Acquisition Update

 

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, is pleased to provide the following
trading update for the financial year ended 30 April 2025.

 

Financial highlights (unaudited):

 

·    Consolidated Group sales, inclusive of inter-company trade, are
expected to be no less than £30.5 million (FY24: £30.9 million).

·    Profitability expected to be materially above market expectations for
the full year and reversing the H1 underperformance.

·    Cash and cash equivalents at year-end remained strong at over £750k,
with the Group continuing to operate within its existing financing facilities.

·    Strong net current asset position.

 

Post year end trading update:

Early trading in FY26 is encouraging, with profitability significantly ahead
of budget expectations, supporting confidence in a return to revenue growth
and further margin progression.

 

Operational and Strategic Highlights:

 

•     Management and organisational re-structuring now complete
delivering a reduced overhead, more streamlined business with stronger
management team.

•     Revenue and production performance of new machinery investments
have now stabilised generating valuable sales and margin. 100% of the Eco-deck
grids are now produced in-house.

•     In excess of £400k of capital spent on complimentary assets,
including granulation and pellatising equipment to increase our recycling and
re-use commitment and capability.

•     Each division and business unit strategy reviewed and updated.

•     The commercial integration of selling a suite of product to the
same customer has started to show benefits, with continued focus across the
Divisions and Group.

 

Arrow Film & Foil Converters Acquisition (1 April 2025) and Integration
update:

 

·    The acquisition of Arrow Film Converters' assets, branding, and
customer relationships has had a material and positive impact on the financial
performance of the combined flexible packaging businesses-Film & Foil
Solutions and Arrow Film & Foil Converters. Revenue, gross profit, and net
profit have all improved significantly in the most recent quarter compared to
the period prior to the acquisition.

•     Management and staff capability have exceeded initial expectations
offering the 'Flexibles Division' further experience and capabilities to draw
on as we look to integrate our wide range of production capabilities to our
commercial offering, providing customers with a wide range of product types
and options.

•     Landlord support given in the form of a 'License to alter' which
allows us to finalise the long term lease arrangements.

•     Energy consumption to be integrated into existing group contracts
in July at a reduced rate.

 

Non-executive Chairman, Joe Grimmond, commented:

"I am pleased to report that the Group has delivered a performance materially
above market expectations for the financial year ended 30 April 2025 that
reflects meaningful operational progress, with profit ahead of our previous
expectations and sales in line with internal forecasts.

 

"This result is underpinned by the decisive actions taken over the course of
the year to simplify our organisational structure, reduce fixed overheads, and
refocus the Group on its core commercial and operational strengths. These
changes, while not without challenge, have created a more agile and efficient
business better aligned with the current market environment and our long-term
strategy.

 

"Importantly, the Group enters the new financial year with solid trading
momentum. Early indications in FY26 show performance significantly ahead of
budget, supported by a strengthened operational platform and a disciplined
cost base.

 

"On behalf of the Board, I would like to thank our management, employees,
customers and stakeholders for their continued support throughout the year. We
remain confident in our strategic direction and well positioned to build on
the £56 million of manufacturing capacity that exists within the Group."

 

Chief Executive Officer, Ian Hillman, commented:

"The Group's performance for the year ended 30 April 2025 reflects the
strength and resilience of our operations, with a notably stronger second-half
performance driving profits ahead of expectations.

 

"While revenues for the full year were in line with internal forecasts, the
second half saw a marked improvement in margin and operational execution. This
recovery was underpinned by the reorganisation and cost-reduction measures
initiated earlier in the year, which began to deliver tangible benefits during
H2. Our teams executed these changes with discipline, enabling us to restore
momentum and enter the new financial year on a stronger footing.

 

"We continue to operate through well-defined strategic divisions, each aligned
to its core markets and supported by a broad and differentiated manufacturing
capability. This structure has enabled a more focused commercial approach,
improved visibility, and better resource allocation across the Group.

 

"The diversity of our operations-both in terms of process capabilities and end
markets served-remains a core strength. From flexible food packaging to
industrial and automotive components, our ability to serve a wide range of
sectors provides resilience in times of uncertainty and positions us to
benefit from recovery and growth across multiple industries.

 

"The Arrow acquisition completed in April 2025 is an important milestone in
our strategy and creates a 'Flexibles Division' of scale, it broadens our
customer base, and brings additional technical capabilities that complement
our existing operations. Integration is progressing well, and early customer
feedback has been very positive.

 

"Looking ahead, we have entered FY26 with encouraging trading activity across
our divisions. The operational improvements made in FY25, together with a more
efficient cost base and a stronger strategic platform, leave us well
positioned to drive further progress and create sustainable shareholder value.

 

"I would like to thank all of our employees for their continued commitment and
contribution during a year of meaningful change and recovery."

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.

 

For further information, please contact:

 Enquiries:                             www.coralproducts.com

 Coral Products plc

 Joe Grimmond                           Non-Executive Chairman      07703 518 148

 Ian Hillman                            CEO                         07773 902145

 Cairn Financial Advisers LLP           NOMAD and Broker            020 7213 0880

 Sandy Jamieson / Ludovico Lazzaretti

 

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