Declaración comercial
26 de enero de 2024
productos de coral plc
("Coral" o el "Grupo")
Actualización de Trading
Coral Products PLC, a specialist in the design, manufacture and supply of plastic products based in Wythenshawe, Manchester announces that following a challenging trading period during December 2023 and January 2024, the Group has seen a reduction in customer orders and accordingly, now anticipates that its revenues will be approximately 10% below the prior year (2023: £35.2 million) with EBITDA margins also negatively impacted by the deleveraging effect. Accordingly, the Group now anticipates that profitability in FY2024 and, to a lesser extent, FY2025 will be below both management and market expectations.
Reflecting broader economic trends in the UK, Coral's customers across all channels have been closely managing working capital and inventories in the last two months, deferring purchases of replenishment inventory, and instead using up existing stock. However, Coral has maintained market share and continues to win new customers. The Group believes that this is a short-lived situation and is expecting pipeline orders to begin to recover, starting from February 2024.
Importantly, the benefits from the Group's diversification strategy and ongoing investment in machinery, new products and channel launches over the last 12 months have not yet been fully realised. The Group expects that these sales will begin to come on stream during Q4 and will make full annualised contributions in FY25.
Under new CEO Lance Burn, who joined the Group on 2 January 2024, the Group will undertake a comprehensive review to ensure the business has a strong platform for the next stage of growth covering the following areas:
· The Company has a secure financial position and significant freehold assets, nevertheless, in light of the current market uncertainties, and taking a prudent approach the Board has agreed to suspend the FY24 interim dividend previously announced on 11 December 2023. The intention remains to pay a dividend with the level to be determined at year-end.
· In the last 4 weeks, the management team has identified restructuring measures and synergies with the potential to generate material savings. These efficiencies largely relate to the re-organisation of the businesses acquired over the last two years, specifically opportunities to combine workspaces and deliver central services. The review will continue to analyse all aspects to optimise the combination of all businesses and resources.
The Group will provide an update on trading following the year end of 30 April 2024.
Commenting on the announcement, Lance Burn, CEO of Coral Products, said, "I am confident that Coral is well-placed to navigate the current economic challenges whilst actively planning and supporting future growth opportunities. The fundamentals of the business are as I anticipated before I joined and the customer caution that has been a recent feature is not unique to us. Critically, our customers remain with us and we will use this moment as an opportunity to reset the business with a strong platform for long-term growth."
La Compañía considera que la información contenida en este anuncio constituye información privilegiada según lo estipulado en el Reglamento sobre Abuso de Mercado (UE) N.º 596/2014, modificado por el Reglamento 11 del Reglamento sobre Abuso de Mercado (Enmienda) (Salida de la UE) 2019/310. . Tras la publicación de este anuncio a través del Servicio de Información Regulatoria, esta información privilegiada ahora se considera de dominio público.
Para más información, por favor póngase en contacto con:
Productos de coral plc Lance Burn, director ejecutivo
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Tel: 0161 946 9476
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Asesor designado y Broker Cavendish Capital Markets Limitado Adrian Hadden/Charlie Beeson (Corporate Finance) Charlie Combe (ECM) |
Tel: 020 7397 1966 |
PR financiera Novela tim robertson Safia Colebrook |
Tel: 020 3151 7008 |
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