REG - Coral Products PLC - Update and Interim Dividend <Origin Href="QuoteRef">CRU.L</Origin>

Coral ProductsAnnouncement

19/02/2015 07:11

RNS Number : 3004F
Coral Products PLC
19 February 2015
19 February 2015
CORAL PRODUCTS PLC
("Coral" or the "Company")
Update and Interim Dividend 
Further to the Company's announcements in its third quarter ending 31 January 2015 ("Q3") regarding management changes and one of Coral's major customers (The Video Duplicating Company Limited ("VDC")) being placed in administration, the board is pleased to provide the following update to shareholders.
The Company has now received the first creditor's report from the administrators of VDC, which indicates an expected distribution to unsecured creditors (which include Coral) of 15p in the pound. 
The Coral Board's latest expectation is therefore that the net financial loss arising from VDC being placed in administration will be approximately 200,000 based on this and other recoveries. This compares favourably with the board's initial provision of 500,000 as referred to in the announcement dated 5 January 2015 and also the board's revised expectation of 300,000 as stated in the announcement of 2 February 2015. 
The management changes implemented in late 2014 are already showing positive results and the Group has traded profitably in each of the three months ended 31 January 2015 (Q3). Group profit for the year to date is only marginally behind budget before taking account of exceptional costs being the VDC bad debt and compensation payments for loss of office.
The board is therefore pleased to announce that the proposed interim dividend of 0.2p per ordinary share will be paid. The Ex-dividend Date and the Record Date for the interim dividend will be 19 March 2015 and 20 March 2015 respectively. The interim dividend will be paid on Thursday 30 April 2015.
Chairman Joe Grimmond commented: "Whilst the board is aware that much remains to be done, we believe that the robust performance of the Group during the past difficult quarter supports our confidence in our strategy and our belief in the prospects for further growth."
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
PR
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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