Coral Products PLC Repayment of loans (6977R)

TIDMCRU

RNS Number : 6977R

Coral Products PLC

10 March 2021

Coral Products plc

("Coral" or the "Company")

Repayment of loans

Coral Products plc, a specialist in the design, manufacture and supply of plastic products based in Wythenshawe, Manchester is pleased to report that further to the continuing strategic review it has repaid the Haydock property mortgage of GBP1,600,000. This will result in cash savings in interest and capital repayments of approximately GBP300,000 per annum. This repayment provides greater flexibility as regards to future financing. The property at Haydock will be revalued for the year end accounts and given that it now has a stronger covenant and will shortly benefit from a new roof, the Company are confident of a valuation uplift from the previous valuation shown in the accounts of GBP2.5m.

In addition, the Company has repaid GBP500,000 of the CBIL loan with the intention of repaying in full the outstanding balance of GBP433,333 this financial year.

Executive Chairman, Joe Grimmond, said : "Following the sale of Coral Products (Mouldings) Limited and Interpack Limited businesses to One51 ES Plastics (UK) Ltd. which completed at the end of February and the exercise announced today to rationalise legacy debts within the business, we are enabling a return to normal business activity, with three profitable, cash generative businesses, a strong balance sheet and a healthy cash balance. This will support organic growth whilst allowing for us to seek acquisitions to augment our existing activities and reward shareholders for their long term support."

For further information please contact:

 
 Coral Products plc                   Tel: 07703 51 
  Joe Grimmond, Non-Executive              8148 
  Chairman 
 Nominated Adviser & Broker 
  WH Ireland Limited                   Tel: 0207 220 
  Adrian Hadden                        1666 
  Darshan Patel 
  Lydia Zychowska 
  Jasper Berry (Corporate Broking) 
 Capital Markets Consultants         Tel: 07515 587 
  Limited                             184 
  Richard Pearson

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