Coral, Manchester plastics firm, expects higher profits

Shares of Coral Products plc, the Wythenshawe, Manchester-based plastic products firm, rose about 4% after it published a trading update in advance of its final results for the year ended April 30, 2022.

Coral said consolidated group sales are expected to be not less than £14.4 million (2021: £10.7m) and reportable pre-tax profits are expected to be materially above market expectations.

Coral reported a “very strong liquidity position” with cash and cash equivalents of £7.4 million.

The board is proposing a final dividend for the year of 0.2p, subject to shareholder approval at the AGM due to be held later in the summer, making total dividend for year of 1.1p (2021: 1.0p), an increase of 10% on previous year,” said Coral.

“Further updates on the associated dividend timetable will be made when the date of the AGM is known.”

Coral Products executive chairman Joe Grimmond said: “Since the year end, the group has completed the acquisition on the 4th May 2022 of Film & Foil Solutions Ltd and on 30th May 2022 of Alma Products Ltd and sales from the existing subsidiaries continue to improve.

“Whilst it is still early in our current year and despite a great deal of uncertainty surrounding the macroeconomic circumstances, we are confident our current performance; the performance of our new subsidiaries and very strong cash position, even after funding the acquisitions, will see our group continue to further develop.”