(CRU.L) Coral Products PLC Buy/Sell

RNS Number : 3948H Coral Products PLC 19 February 2010

19th February 2010

Coral Products PLC ("the Company")

New Director Appointment

The Directors of the Company are pleased to announce that with immediate effect Kathryn Davenport has been appointed to the Board as a non-Executive Director.

Kathryn is a self employed Solicitor specialising in Company and Commercial work. She was Company Secretary to Union plc (now Browallia Holdings Limited) and runs her own private practice as a Sole Practitioner.

There are no disclosures to report as required for the purposes of Listing Rule 9.6.13.

Enquiries:

Stephen Fletcher Tel: 01942 272 882

Company Secretary

This information is provided by RNS The company news service from the London Stock Exchange

BOAGCGDDRSBBGGC

RNS Number : 8131G
  Coral Products PLC
  08 February 2010
   

8 February 2010

CORAL PRODUCTS PLC
    

INTERIM MANAGEMENT STATEMENT
    

Coral Products PLC (the Company) presents its Interim Management Statement as at 8 February 2010 as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3.

    

The Company published its Interim Report for the six month period to 30 October 2009 on 2 December 2009. This Interim Management Statement summarises any further relevant information for the period since that announcement.

    

Material Events and Transactions

The Company is introducing kitchen and kerbside food waste containers principally to serve the recycling market. The initial response to these new products is encouraging and we are pleased to announce that in January 2010 we were appointed by the Eastern Shires Purchasing Organisation and the Central Buying Consortium to supply its range of kerbside crates, lids and dividers together with its kitchen and kerbside food caddies under a three year refuse and recycling product Framework Agreement. Under this Agreement we have been awarded joint supplier status in a range of products covering a wide geographical area of the UK.

    

Trading Activity

Sales of media based products performed at the top end of our expectations in the final months of 2009, however, demand has started slowly in 2010 and these products continue to be affected by the difficult economic conditions. Expectations are that turnover of DVD cases will improve in line with the launch of several new films this year. Some additional capital expenditure is necessary in order to introduce a lightweight box with improved environmental qualities. Sales for household items have remained in line with forecast and will improve as new products come into production in the next few weeks.

    

Operating margins have recently been under pressure from increases in raw material prices due to supply constraints. It is difficult to pass on these increases in the current market conditions.

    

We remain optimistic that our diversification into new products and markets will be justified in the medium term but this will be a gradual process and we still rely on media packaging products as our core business.

    

Financial Position

The financial position continues to be satisfactory with facilities available for further capital investment. The payback period for the new investment is anticipated to be short and will enable a quick increase in capacity as demand grows.

    

For further information call:

Stephen Fletcher

Company Secretary

Coral Products PLC                  01942 272882

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
IMSBGGDDCBGBGGI

RNS Number : 3715D Coral Products PLC 02 December 2009

CORAL PRODUCTS PLC

2009 Interim Results

Coral Products PLC announces interim results for the six months ended 31 October 2009.

In his statement to shareholders the Chairman, Geoffrey Piper, said:

"I am able to report signs of an improved performance for the first half of our financial year. Despite the difficult trading conditions the company has been able to react positively to its business environment. At the start of the financial year trade was still affected by a reduced demand for media products but recently we have seen turnover improve and this is expected to continue for the remainder of 2009. We are placing greater focus upon the higher margin products and services and this has contributed to a significant improvement in gross margins.''

Summary Six months ended Six months ended Year
31 October 31 October ended
2009 2008 30 April

Turnover £6 ,645,000 £ 7,782,000 £ 13,567,000
Gross Profit £1,619,000 £1,223,000 £2,337,000
Loss before taxation £ 193,000 £ 788,000 £ 1,463,000
EBITDA £660,000 £229,000 £513,000
Basic loss per share (0.96) p (3.09) p (6.45)p
Dividend Nil Nil Nil

* Much improved margins with emphasis on higher added value products. * New line of crates being marketed and range of food caddies available early 2010. * Cash management on target and funds available for developments.

Regarding prospects for the current year, Geoffrey Piper added:

"With our new products and current trading levels we are confident that, once the current economic conditions improve, we will be well-placed to achieve better results and opportunities for growth. Our objective remains to focus on the delivery of higher-margin products and to increase shareholder value in what is likely to remain a challenging marketplace.''

Enquiries: Coral Products PLC Tel: 01942 272 882
Warren Ferster, Chief Executive/Managing Director
Stephen Fletcher, Finance Director/Company Secretary
CHAIRMAN'S STATEMENT

I am able to report signs of an improved performance for the first half of our financial year. Despite the difficult trading conditions the company has been able to react positively to its business environment. At the start of the financial year trade was still affected by a reduced demand for media products but recently we have seen turnover improve and this is expected to continue for the remainder of 2009. We are placing greater focus upon the higher margin products and services and this has contributed to a significant improvement in gross margins.

Trading

Sales have declined by 14% over the previous year but the gross profit increased 32% to £1.6m. Higher value added sales of media products and the fall in oil prices enabled margins to significantly improve. Operating expenses reduced by 9% to £1.8m and the overall operating result was a much reduced loss of £136,000 (2008: £713,000). Diluted loss per ordinary share was 0.96p (2008: 3.09p). No interim dividend will be paid.

Our extended product base includes crates for waste disposal and we expect to have production of kitchen and kerbside food caddies available early in 2010. These new products reflect our strategy to establish a business segment of household products which will have higher added value and longer, more predictable lives. We have also continued to develop business relationships and see benefits from establishing significant trading partnerships.

Financing

In the present economic climate cash management is a major consideration and we have continued to work within our facilities and keep working capital to a minimum. We have obtained new asset finance to fund capital expenditure on food caddies and have sufficient resources to manage for the foreseeable future whilst meeting the costs of developing in new product areas. We have reduced our gearing compared to this time last year.

Prospects

We are still cautious about the immediate future and expect 2010 to remain difficult as the economy only recovers slowly and we feel the impact of expected rises in oil prices. However, with our new products and current trading levels we are confident that, once the current economic conditions improve, we will be well-placed to achieve better results and opportunities for growth. Our objective remains to focus on the delivery of higher-margin products and to increase shareholder value in what is likely to remain a challenging marketplace.

Geoffrey Piper

Chairman

2 December 2009

Income Statement - (unaudited)
for the half year to 31 Half year to Half year to Year to
October 2009 31 October 31 October 30 April

£'000 £'000 £'000
Notes
Continuing operations ----------- ----------- ----------
Revenue (2) 6,645 7,782 13,567
Cost of sales (5,026) (6,559) (11,230)

Gross profit 1,619 1,223 2,337
Operating expenses (1,755) (1,936) (3,664)

Operating loss before taxation
and finance costs (136) (713) (1,327)

Exchange loss on finance (1) (20) (26) (61)

leases
Interest payable (37) (49) (75)

Loss before taxation (193) (788) (1,463)
Taxation (3) 165 165

Loss for the financial period (193) (623) (1,298)

Basic loss per ordinary share (4) (0.96) p (3.09) p (6.45) p

Diluted loss per ordinary (4) (0.96) p (3.09) p (6.45) p

share

All activities derive from continuing operations.

Statement of Changes in
Shareholders' Equity - As at As at As at
(unaudited) 31 October 31 October 30 April
for the half year to 31 2009 2008 2009
October 2009 £'000 £'000 £'000

Equity at start of the period 7,118 8,416 8,416
Loss for the financial period (193) (623) (1,298)

Equity at end of the period 6,925 7,793 7,118

Balance Sheet - (unaudited)
as at 31 October 2009 As at As at As at
31 October 31 October 30 April

£'000 £'000 £'000

Non-current assets
Intangible assets 260 277 261
Plant and equipment 5,048 6,231 5,647
Rental deposit 250 250 250

Total non-current assets 5,558 6,758 6,158

Current assets
Inventories 661 1,353 846
Trade and other receivables 3,930 4,518 2,653
Cash and cash equivalents - - 56

Total current assets 4,591 5,871 3,555

Current liabilities
Financial liabilities - 872 1,392 533

borrowings
Trade and other payables 2,101 3,078 1,811

Total current liabilities 2,973 4,470 2,344

Non current liabilities
Financial liabilities - 251 366 251
borrowings --------- --------- ----------
Total non-current liabilities 251 366 251

Net assets 6,925 7,793 7,118

Equity
Share capital 201 201 201
Share premium 4,558 4,558 4,558
Other reserves 7 7 7
Retained earnings 2,159 3,027 2,352

Total shareholders' equity 6,925 7,793 7,118

Cash Flow Statement -
(unaudited) Half year to Half year to Year to
for the half year to 31 31 October 31 October 30 April
October 2009 2009 2008 2009
£'000 £'000 £'000

Cash (outflow)/inflow from (142) (891) 498

operating activities (note 5)
Interest paid (21) (34) (37)
Interest on finance lease (16) (15) (38)

rentals
Exchange loss on finance (20) (26) (61)

leases

Net cash from operating (199) (966) 362
activities ---------- --------- ---------

Cash flows from investing activities
Purchase of property, plant (176) (134) (426)

and equipment
Purchase of intangible assets (20) (2) (8)

Net cash used in operating (196) (136) (434)
activities ---------- ---------- ---------

Cash flows from financing activities
Proceeds of new asset finance 150 - (85)
Repayment of bank loans - (85) -
Finance lease principal (209) (157) (343)
payments ---------- ---------- ---------
Net cash used in from (242) (428)
financing activities (59) ---------- ---------

Net decrease in cash and cash (454) (1,344) (500)

equivalents
Cash and cash equivalents at (149) 351 351
start of period --------- ---------- ---------
Cash and cash equivalents at (603) (993) (149)
end of period --------- ---------- ---------

Notes to the Interim Financial Statements

1. Basis of preparation

This interim report, including comparative data, has been prepared in accordance with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretation Committee (IFRIC)

interpretations as adopted for use. The financial statements have been prepared under the historical cost convention. The statements are prepared on a going concern basis, which the Directors believe to be appropriate

based upon financial forecasts and bank facilities.

The results for the 6 months ending 31 October 2009 and 2008 are unaudited. The results for the year ended 30 April 2009 have been extracted from the financial statements for that period, which were filed with the

Registrar of Companies and on which the auditors gave an unqualified report.

The principal accounting policies applied in the preparation of this interim report are consistent with those set out in the 2009 Annual Report and Financial Statements. A summary of the company's principal accounting

policies is set out below.

Segmental reporting

The Directors consider the Company's operations as one business segment and that it operates in one geographical segment.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other

sales related taxes.

Sales of goods are recognised when goods are shipped and title has passed.

Leased assets

Leases are classified as finance leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership to the lessee. Assets held under finance leases are capitalised as tangible fixed

assets in the balance sheet and are depreciated over the useful economic life of the asset The interest element of the rental obligations is charged to the Income Statement over the period of the lease.

All other leases are regarded as operating leases and the payments made under them are charged to the Income Statement on a straight-line basis over the lease term.

Foreign currencies

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated

in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Gains and losses arising on translation are included in the profit and loss account for the period.

Pension contributions

The company contributes to defined contribution pension schemes and the pension charge represents the amount payable for that period.

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income

statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is

calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of

taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred assets are recognised to the extent

that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Deferred tax liabilities are recognised on intangible assets and other temporary differences

recognised in business combinations.

Plant and equipment

Plant and equipment are stated at cost less accumulated depreciation and any recognised impairment losses.

Depreciation is charged so as to write off the cost of the assets over their estimated useful lives, using the straight-line method, on the following bases:

Moulds - 10-25%

Plant and machinery - 10%

Fixtures and fittings - 10-33%

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

Intangible assets

Intangible assets comprise licence fees paid in advance for the use of trademarks and technology. Such assets are defined as having finite useful lives and the costs are amortised on a straight-line basis over their

estimated useful lives of 10 years. Intangible assets are reviewed for impairment whenever there is an indication that the carrying value may be impaired.

Inventories

Inventories are stated at the lower of cost and net realisable value. The cost of finished goods manufactured includes appropriate materials, labour and production overhead expenditure. Net realisable value is the

estimated selling price less the costs of disposal. Provision is made to write down obsolete or slow-moving inventory to their net realisable value.

Cash and cash equivalents

Cash and cash equivalents comprise cash and bank balances together with bank overdrafts that are repayable on demand.

Financial assets

Financial assets are recognised at fair value in the Company's balance sheet when the Company becomes a party to the contractual provisions of the instrument. Loans and receivables are non-derivative financial assets

with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers, do not carry any interest and are stated at their nominal

value as reduced by appropriate allowances for estimated irrecoverable amounts. Impairment provisions are recognised when there is objective evidence that the Company will be unable to collect all of the amounts due

under the terms receivable, the amount of such provision being the difference between the net carrying amount and the present value of future expected cash flows associated with the impaired receivable.

Financial liabilities include bank borrowings and trade payables. Bank borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest

bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the

liability carried in the balance sheet. Trade payables and other short-term monetary liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method.

2. Revenue

All production is based in the United Kingdom. The geographical analysis of revenue is shown below:

Half year to Half year to Year to
31 October 31 October 30 April

£'000 £'000 £'000

United Kingdom 5,616 5,969 10,219
Rest of Europe 1,029 1,813 3,348

6,645 7,782 13,567

Turnover by business

activity:

Media packaging 6,645 7,782 13,567

3 Taxation

The charge or credit for taxation on the loss for the period is charged at 28% being the estimated effective rate for the full financial year.

4 Basic loss per ordinary share

The calculation of basic loss per ordinary share is based on the loss for the period available to shareholders of £193,000 (2008: £623,000) and on 20,135,609 (2008: 20,135,609) ordinary shares, being the weighted

average number of ordinary shares in issue and ranking for dividend during the period. Calculation of fully diluted earnings per share is based upon the same number of shares.

5 Cash flow from operating activities
Half year to Half year to 31 October Year to
31 October 2008 30 April
2009 £'000 2009
£'000 £'000
Operating loss for the period (136) (713) (1,327)
Depreciation of plant and equipment 775 922 1,798
Amortisation of intangible assets 21 20 42
Decrease/(increase) in inventories 102 (131) 376
(Increase)/decrease in trade and other (1,194)
receivables (609) 1,256

(Decrease)/increase in trade and other

payables 290 (380) (1,647)

Cash (outflow)/inflow from operating

activities (142) (891) 498

6 Reconciliation of net cash flow to movement in net debt
Half year to Half year to 31 October Year to
31 October 2008 30 April
2009 £'000 2009
£'000 £'000
Net decrease in cash equivalents (454) (1,344) (500)
Repayment of bank loans - 85 85
Additional finance lease (150) - -
Finance lease principal payments 209 157 343

Movement in net debt for the period (395) (1,102) (72)
Net debt at beginning of period (728) (656) (656)

Net debt at end of period (1,123) (1,758) (728)

7 Interim report

The interim report will be posted to all shareholders on 9 December and will be made available on the company's website at www.coralproducts.com and at the company's registered office at North Florida Road, Haydock

Industrial Estate, Haydock, Merseyside WA11 9TP.

This information is provided by RNS The company news service from the London Stock Exchange

IR BGBDDDDGGGCB

RNS Number : 3715D Coral Products PLC 02 December 2009

CORAL PRODUCTS PLC

2009 Interim Results

Coral Products PLC announces interim results for the six months ended 31 October 2009.

In his statement to shareholders the Chairman, Geoffrey Piper, said:

"I am able to report signs of an improved performance for the first half of our financial year. Despite the difficult trading conditions the company has been able to react positively to its business environment. At the start of the financial year trade was still affected by a reduced demand for media products but recently we have seen turnover improve and this is expected to continue for the remainder of 2009. We are placing greater focus upon the higher margin products and services and this has contributed to a significant improvement in gross margins.''

Summary Six months ended Six months ended Year
31 October 31 October ended
2009 2008 30 April

Turnover £6 ,645,000 £ 7,782,000 £ 13,567,000
Gross Profit £1,619,000 £1,223,000 £2,337,000
Loss before taxation £ 193,000 £ 788,000 £ 1,463,000
EBITDA £660,000 £229,000 £513,000
Basic loss per share (0.96) p (3.09) p (6.45)p
Dividend Nil Nil Nil

* Much improved margins with emphasis on higher added value products. * New line of crates being marketed and range of food caddies available early 2010. * Cash management on target and funds available for developments.

Regarding prospects for the current year, Geoffrey Piper added:

"With our new products and current trading levels we are confident that, once the current economic conditions improve, we will be well-placed to achieve better results and opportunities for growth. Our objective remains to focus on the delivery of higher-margin products and to increase shareholder value in what is likely to remain a challenging marketplace.''

Enquiries: Coral Products PLC Tel: 01942 272 882
Warren Ferster, Chief Executive/Managing Director
Stephen Fletcher, Finance Director/Company Secretary
CHAIRMAN'S STATEMENT

I am able to report signs of an improved performance for the first half of our financial year. Despite the difficult trading conditions the company has been able to react positively to its business environment. At the start of the financial year trade was still affected by a reduced demand for media products but recently we have seen turnover improve and this is expected to continue for the remainder of 2009. We are placing greater focus upon the higher margin products and services and this has contributed to a significant improvement in gross margins.

Trading

Sales have declined by 14% over the previous year but the gross profit increased 32% to £1.6m. Higher value added sales of media products and the fall in oil prices enabled margins to significantly improve. Operating expenses reduced by 9% to £1.8m and the overall operating result was a much reduced loss of £136,000 (2008: £713,000). Diluted loss per ordinary share was 0.96p (2008: 3.09p). No interim dividend will be paid.

Our extended product base includes crates for waste disposal and we expect to have production of kitchen and kerbside food caddies available early in 2010. These new products reflect our strategy to establish a business segment of household products which will have higher added value and longer, more predictable lives. We have also continued to develop business relationships and see benefits from establishing significant trading partnerships.

Financing

In the present economic climate cash management is a major consideration and we have continued to work within our facilities and keep working capital to a minimum. We have obtained new asset finance to fund capital expenditure on food caddies and have sufficient resources to manage for the foreseeable future whilst meeting the costs of developing in new product areas. We have reduced our gearing compared to this time last year.

Prospects

We are still cautious about the immediate future and expect 2010 to remain difficult as the economy only recovers slowly and we feel the impact of expected rises in oil prices. However, with our new products and current trading levels we are confident that, once the current economic conditions improve, we will be well-placed to achieve better results and opportunities for growth. Our objective remains to focus on the delivery of higher-margin products and to increase shareholder value in what is likely to remain a challenging marketplace.

Geoffrey Piper

Chairman

2 December 2009

Income Statement - (unaudited)
for the half year to 31 Half year to Half year to Year to
October 2009 31 October 31 October 30 April

£'000 £'000 £'000
Notes
Continuing operations ----------- ----------- ----------
Revenue (2) 6,645 7,782 13,567
Cost of sales (5,026) (6,559) (11,230)

Gross profit 1,619 1,223 2,337
Operating expenses (1,755) (1,936) (3,664)

Operating loss before taxation
and finance costs (136) (713) (1,327)

Exchange loss on finance (1) (20) (26) (61)

leases
Interest payable (37) (49) (75)

Loss before taxation (193) (788) (1,463)
Taxation (3) 165 165

Loss for the financial period (193) (623) (1,298)

Basic loss per ordinary share (4) (0.96) p (3.09) p (6.45) p

Diluted loss per ordinary (4) (0.96) p (3.09) p (6.45) p

share

All activities derive from continuing operations.

Statement of Changes in
Shareholders' Equity - As at As at As at
(unaudited) 31 October 31 October 30 April
for the half year to 31 2009 2008 2009
October 2009 £'000 £'000 £'000

Equity at start of the period 7,118 8,416 8,416
Loss for the financial period (193) (623) (1,298)

Equity at end of the period 6,925 7,793 7,118

Balance Sheet - (unaudited)
as at 31 October 2009 As at As at As at
31 October 31 October 30 April

£'000 £'000 £'000

Non-current assets
Intangible assets 260 277 261
Plant and equipment 5,048 6,231 5,647
Rental deposit 250 250 250

Total non-current assets 5,558 6,758 6,158

Current assets
Inventories 661 1,353 846
Trade and other receivables 3,930 4,518 2,653
Cash and cash equivalents - - 56

Total current assets 4,591 5,871 3,555

Current liabilities
Financial liabilities - 872 1,392 533

borrowings
Trade and other payables 2,101 3,078 1,811

Total current liabilities 2,973 4,470 2,344

Non current liabilities
Financial liabilities - 251 366 251
borrowings --------- --------- ----------
Total non-current liabilities 251 366 251

Net assets 6,925 7,793 7,118

Equity
Share capital 201 201 201
Share premium 4,558 4,558 4,558
Other reserves 7 7 7
Retained earnings 2,159 3,027 2,352

Total shareholders' equity 6,925 7,793 7,118

Cash Flow Statement -
(unaudited) Half year to Half year to Year to
for the half year to 31 31 October 31 October 30 April
October 2009 2009 2008 2009
£'000 £'000 £'000

Cash (outflow)/inflow from (142) (891) 498

operating activities (note 5)
Interest paid (21) (34) (37)
Interest on finance lease (16) (15) (38)

rentals
Exchange loss on finance (20) (26) (61)

leases

Net cash from operating (199) (966) 362
activities ---------- --------- ---------

Cash flows from investing activities
Purchase of property, plant (176) (134) (426)

and equipment
Purchase of intangible assets (20) (2) (8)

Net cash used in operating (196) (136) (434)
activities ---------- ---------- ---------

Cash flows from financing activities
Proceeds of new asset finance 150 - (85)
Repayment of bank loans - (85) -
Finance lease principal (209) (157) (343)
payments ---------- ---------- ---------
Net cash used in from (242) (428)
financing activities (59) ---------- ---------

Net decrease in cash and cash (454) (1,344) (500)

equivalents
Cash and cash equivalents at (149) 351 351
start of period --------- ---------- ---------
Cash and cash equivalents at (603) (993) (149)
end of period --------- ---------- ---------

Notes to the Interim Financial Statements

1. Basis of preparation

This interim report, including comparative data, has been prepared in accordance with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretation Committee (IFRIC)

interpretations as adopted for use. The financial statements have been prepared under the historical cost convention. The statements are prepared on a going concern basis, which the Directors believe to be appropriate

based upon financial forecasts and bank facilities.

The results for the 6 months ending 31 October 2009 and 2008 are unaudited. The results for the year ended 30 April 2009 have been extracted from the financial statements for that period, which were filed with the

Registrar of Companies and on which the auditors gave an unqualified report.

The principal accounting policies applied in the preparation of this interim report are consistent with those set out in the 2009 Annual Report and Financial Statements. A summary of the company's principal accounting

policies is set out below.

Segmental reporting

The Directors consider the Company's operations as one business segment and that it operates in one geographical segment.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other

sales related taxes.

Sales of goods are recognised when goods are shipped and title has passed.

Leased assets

Leases are classified as finance leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership to the lessee. Assets held under finance leases are capitalised as tangible fixed

assets in the balance sheet and are depreciated over the useful economic life of the asset The interest element of the rental obligations is charged to the Income Statement over the period of the lease.

All other leases are regarded as operating leases and the payments made under them are charged to the Income Statement on a straight-line basis over the lease term.

Foreign currencies

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated

in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Gains and losses arising on translation are included in the profit and loss account for the period.

Pension contributions

The company contributes to defined contribution pension schemes and the pension charge represents the amount payable for that period.

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income

statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is

calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of

taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred assets are recognised to the extent

that it is probable that taxable profits will be avai

Plant and equipment

Plant and equipment are stated at cost less accumulated depreciation and any recognised impairment losses.

Depreciation is charged so as to write off the cost of the assets over their estimated useful lives, using the straight-line method, on the following bases:

Moulds - 10-25%

Plant and machinery - 10%

Fixtures and fittings - 10-33%

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

Intangible assets

Intangible assets comprise licence fees paid in advance for the use of trademarks and technology. Such assets are defined as having finite useful lives and the costs are amortised on a straight-line basis over their

estimated useful lives of 10 years. Intangible assets are reviewed for impairment whenever there is an indication that the carrying value may be impaired.

Inventories

Inventories are stated at the lower of cost and net realisable value. The cost of finished goods manufactured includes appropriate materials, labour and production overhead expenditure. Net realisable value is the

estimated selling price less the costs of disposal. Provision is made to write down obsolete or slow-moving inventory to their net realisable value.

Cash and cash equivalents

Cash and cash equivalents comprise cash and bank balances together with bank overdrafts that are repayable on demand.

Financial assets

Financial assets are recognised at fair value in the Company's balance sheet when the Company becomes a party to the contractual provisions of the instrument. Loans and receivables are non-derivative financial assets

with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers, do not carry any interest and are stated at their nominal

value as reduced by appropriate allowances for estimated irrecoverable amounts. Impairment provisions are recognised when there is objective evidence that the Company will be unable to collect all of the amounts due

under the terms receivable, the amount of such provision being the difference between the net carrying amount and the present value of future expected cash flows associated with the impaired receivable.

Financial liabilities include bank borrowings and trade payables. Bank borrowings are initially recognised at fair value net of any transaction costs directly attribu

2. Revenue

All production is based in the United Kingdom. The geographical analysis of revenue is shown below:

Half year to Half year to Year to
31 October 31 October 30 April

£'000 £'000 £'000

United Kingdom 5,616 5,969 10,219
Rest of Europe 1,029 1,813 3,348

6,645 7,782 13,567

Turnover by business

activity:

Media packaging 6,645 7,782 13,567

3 Taxation

The charge or credit for taxation on the loss for the period is charged at 28% being the estimated effective rate for the full financial year.

4 Basic loss per ordinary share

The calculation of basic loss per ordinary share is based on the loss for the period available to shareholders of £193,000 (2008: £623,000) and on 20,135,609 (2008: 20,135,609) ordinary shares, being the weighted

average number of ordinary shares in issue and ranking for dividend during the period. Calculation of fully diluted earnings per share is based upon the same number of shares.

5 Cash flow from operating activities
Half year to Half year to 31 October Year to
31 October 2008 30 April
2009 £'000 2009
£'000 £'000
Operating loss for the period (136) (713) (1,327)
Depreciation of plant and equipment 775 922 1,798
Amortisation of intangible assets 21 20 42
Decrease/(increase) in inventories 102 (131) 376
(Increase)/decrease in trade and other (1,194)
receivables (609) 1,256

(Decrease)/increase in trade and other

payables 290 (380) (1,647)

Cash (outflow)/inflow from operating

activities (142) (891) 498

6 Reconciliation of net cash flow to movement in net debt
Half year to Half year to 31 October Year to
31 October 2008 30 April
2009 £'000 2009
£'000 £'000
Net decrease in cash equivalents (454) (1,344) (500)
Repayment of bank loans - 85 85
Additional finance lease (150) - -
Finance lease principal payments 209 157 343

Movement in net debt for the period (395) (1,102) (72)
Net debt at beginning of period (728) (656) (656)

Net debt at end of period (1,123) (1,758) (728)

7 Interim report

The interim report will be posted to all shareholders on 9 December and will be made available on the company's website at www.coralproducts.com and at the company's registered office at North Florida Road, Haydock

Industrial Estate, Haydock, Merseyside WA11 9TP.

This information is provided by RNS The company news service from the London Stock Exchange

IR BGBDDDDGGGCB