Coral Products ends year in strong financial position

8th Jun 2022 12:21

(Sharecast News) - Plastic products designer and manufacturer Coral Products said in an update on Wednesday that consolidated group sales for the year just ended were expected to be at least £14.4m, rising from £10.7m year-on-year.

The AIM-traded firm reiterated that reportable pre-tax profits for the year ended 30 April, meanwhile, were expected to be "materially above" market expectations, as it flagged on 20 April.

It described a "very strong" liquidity position, with cash and cash equivalents at year-end totalling £7.4m, up from £3.8m a year earlier.

The board said it would propose a final dividend for the year of 0.2p, subject to shareholder approval at the annual general meeting later in the summer, making a total dividend for the year of 1.1p - up 10% from the previous year.

Coral said further updates on the associated dividend timetable would be made when the date of the AGM was known.

"Since the year's end, the group has completed the acquisition on 4 May of Film & Foil Solutions, and on 30 May of Alma Products, and sales from the existing subsidiaries continue to improve," said executive chairman Joe Grimmond.

"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."

At 1147 BST, shares in Coral Products were up 6.49% at 17.84p.

Reporting by Josh White at Sharecast.com.