REG - Coral Products PLC - Major Customer in Administration <Origin Href="QuoteRef">CRU.L</Origin>

Coral ProductsAnnouncement

27/01/2015 23:21

RNS Number : 2978B
Coral Products PLC
05 January 2015
5 January 2015
CORAL PRODUCTS PLC
("Coral" or the "Group")
Major Customer in Administration
The board of Coral has today received notice of the appointment of administrators to The Video Duplicating Company Limited ("VDC"), one of the Group's major media customers to which it supplied DVD and CD boxes. VDC was placed into administration on 22 December 2014.
Whilst the figures are not yet finalised, it is estimated that the financial loss to Coral as a result of VDC's administration could be in the order of 500,000, assuming there is no recovery from the administration. This figure includes both debtors and approximately 25,000 of work in progress where the Coral board believe it may be able to mitigate the loss.
On 8 December 2014, Coral reported a profit before tax for the 6 months ended 31 October 2014 of 450,000. Group management accounts for the 7 months to 30 November 2014 reported a profit of 546,000 before this write off. Net assets at 31 October 2014 were 9.9 million.
Chairman Joe Grimmond commented: "Whilst the anticipated write-off is significant, it is much less so than it would have been in previous years due to the board's strategy of greatly reducing our media exposure. Taking into account profitability on sales to other sectors, the board is confident that the Group can absorb this loss and will overcome this disappointment."
Enquiries
Coral Products plc
Joe Grimmond, Executive Chairman
Tel: 07703 518 148
Nominated Adviser
Cairn Financial Advisers LLP
Avi Robinson / Tony Rawlinson
Tel: 020 7148 7900
Broker
Hume Capital Securities plc
David Lawman / Guy Peters
Tel: 020 3693 1471
Capital Markets Consultants Limited
Richard Pearson
Tel: 07515 587184

This information is provided by RNS
The company news service from the London Stock Exchange
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