7th Jan 2025 11:32
(Alliance News) - Coral Products PLC on Tuesday said it has sold two freehold properties in Haydock, Merseyside, and that it has reached a settlement agreement for a 2020 fire insurance claim.
The Manchester, England-based maker of bespoke plastic products said the North and South buildings on the Haydock industrial estate sold for GBP1.7 million, against a book value of GBP1.3 million.
The properties will be leased for 15 years at an initial rate of GBP155,000 per year, and the transaction is expected to complete in mid-February.
Coral Products also on Tuesday said it was set to receive a cash payment of GBP900,000 following a final settlement for an insurance claim made by subsidiary Film & Foil Solutions Ltd. The claim related to a fire in May 2020.
From the sale and claim proceeds, GBP2.6 million will be used to pay in full the remaining mortgage balance on the two Haydock properties, along with other borrowings. The GBP1.5 million left over will be used to support working capital.
Chair Joe Grimmond said: "I am delighted that we have agreed the sale of the two properties at Haydock and finalised the settlement owed to us relating to Film & Foil. The outcome is a material improvement to our working capital and balance sheet and to the overall financial resilience of the group. Together with the cost efficiencies we continue to target, we are in a much stronger position as we enter 2025."
Shares in Coral Products were up 15% at 7.18 pence each in London on Tuesday morning.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.