Coral Products to reinstate interim dividend, FY earnings seen in line

11th Jun 2024 10:08

(Sharecast News) - Plastic products manufacturer Coral Products said on Tuesday that it intends to reinstate interim dividends after its recent full-year performance came in line with market expectations.

Coral Products said revenues for the year ended 30 April were expected to be over £31.0m, down from £35.2m a year earlier, while underlying earnings were forecast to be no less than £3.2m, down from £3.9m but in line with recent expectations.

The AIM-listed group also said it plans to reinstate an interim FY24 dividend of 0.25p, which will be paid on 23 August, and will also propose a final dividend, the level of which will be confirmed on completion of its audited results.

Chief executive Lance Burn said: "We quickly recognised and communicated the adverse commercial impact experienced in our industry towards the end of 2023 and as a result, have been able to implement corrective commercial measures and organisational reform. We are pleased to say that we are beginning to see improvements in most of our markets, whilst being mindful of the continuing economic and geopolitical uncertainty.

"We have created a focused and accountable new two-division structure which is delivering performance and margin improvement through innovation, simplification and efficiency. We have exited low-margin revenue streams in order to focus on profitability. Our recent investment of over £3.0m in new manufacturing capabilities is now fully commissioned serving new commercial channels and customers. This capital expenditure is expected to benefit the current financial year."

As of 1005 BST, Coral shares were up 5.50% at 12.66p.

Reporting by Iain Gilbert at Sharecast.com