REG - Coral Products PLC - Sale and Leaseback of Runcorn Factory Site

Coral ProductsAnnouncement

24/07/2024 07:00

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RNS Number : 5279X  Coral Products PLC  24 July 2024

24 July 2024

Coral Products plc

(the "Group")

Sale and Leaseback of Runcorn Factory Site

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 announce the sale and
leaseback of a factory site in Runcorn.

The 25,723sq ft factory site in Runcorn was sold to Sandyford Properties Ltd
for a cash consideration of £1.21m.  The site is used for plastics
thermoforming part of the Flexibles division and a 15-year lease has been
agreed with an annual cost of £0.105m maintaining the operating costs for the
building at a similar level. The sale generated £0.5m of additional cash
following the repayment of a £0.7m property loan on the building.

The re-organisation of the business under two divisions, Flexibles and Rigids,
has created efficiencies in the use of space.The sale proceeds from this
transaction will be used as additional working and investment capital whilst
also reducing gearing by 10%.

CEO, Lance Burn, commented: "We continue working towards removing duplication
of activity and effort, and constantly challenging our operational footprints.
We have further opportunities to consolidate our current work spaces onto
fewer sites and we look forward to completing these later in the current
financial year."

 

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.

 

For further information, please contact:

 

 Coral Products plc

 Lance Burn, CEO                                     Tel: 0161 946 9476

 Nominated Adviser & Broker

 Cavendish Capital Markets Limited                   Tel: 020 7397 1966

 Adrian Hadden/Charlie Beeson (Corporate Finance)

 Charlie Combe (ECM)

 Financial PR                                        Tel: 020 3151 7008

 Novella

 Tim Robertson

 Safia Colebrook

 

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