Plastics company Coral Products restores dividend and land foreclosures

Plastics group Coral Products is reintroducing a dividend after embarking on a business transformation following a profit warning issued earlier this year.

In its January stock update, Coral announced that customer orders had declined and earnings would be below management and market expectations. It also suspended the previously announced interim dividend.

Now Wythenshawe has published a new update confirming it is trading in line with updated expectations. It said revenue for the year to April 30 is expected to be more than £31m, up from £35.2m in 2023, while underlying EBITDA is “expected to be not less than £3.2m”, compared to last year’s £3.9 million. .

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The group said it intends to restore an interim FY24 dividend of 25p to shareholders in August, and will also propose paying a final dividend.

The Coral company was established in 1989 and was initially known as a manufacturer of VHS boxers and CD cases. It has acquired several companies over the years, including Ecodeck Recycled Plastics in May 2023 and Manplas in September 2022.

CEO Lance Burn joined the group on January 2 and announced a “comprehensive review” of its operations.

Today he said: “We quickly recognized and communicated the adverse commercial impacts that occurred across our industry in late 2023 and were able to implement commercial corrective measures and organizational reform.