REG - Coral Products PLC - Property Sales and Insurance Claim Settlement

Coral ProductsAnnouncement

07/01/2025 07:00

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RNS Number : 3020S  Coral Products PLC  07 January 2025

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              Tel: 07703 518148

 Nominated Adviser & Broker

 Cavendish Capital Markets Limited   Tel: 020 7397 1966

 Adrian Hadden (Corporate Finance)

 Charlie Combe (ECM)

 Financial PR                        Tel: 020 3151 700

 Novella

 Tim Robertson/Safia Colebrook

 

This announcement has been posted to: https://coralproducts.com/
(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.

 

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