Coral Products plc, a group of specialist businesses in bespoke plastic products based in Wythenshawe, Manchester, said its subsidiary Tatra Rotalac Limited signed a three year supply agreement with a distributor of BRC (British Retail Consortium) packaging containers, for the supply of ice cream and food containers.

Coral Products shares rose about 14%.

“The Agreement is for an initial period of three years, and is anticipated that it will generate sales of between £1.5 million -£2.0 million per annum,” said Coral.

“The Company’s ability to produce the products under the Agreement follows the £2.1 million investment in new machinery and re-tooling as announced 4 September 2023 which is now operational.

“The Company is also pleased to announce that it has now completed the successful commissioning of the in-house manufacturing capability for the volume manufacturing of the ECODECK floor grids, initially announced 4 September 2023.

“The new facilities allow the Company to optimise the use of recycled materials enhancing manufacturing efficiency. These improvements will allow the Company to insource £3 million per annum of previously outsourced products, strengthening operational resilience and cost efficiency. It is anticipated that the improvements will have a material positive effect on overall margin contribution and cash flow.”

Coral Products chairman Joe Grimmond said “Thanks to the efforts of Ian Hillman, our Group COO and the team we should now enjoy, after a 12-month delay, the full benefits of our investments in new machinery and re-tooling with improvements to both margin and cash flow”.