Coral Products PLC on Wednesday said it entered a new banking facility with Virgin Money Personal Financial Service Ltd of around £10.4 million.
The plastic products designer, manufacturer and supplier, based in Wythenshawe near Manchester, England, said the facility comprises £7.4 million for invoice financing and £3.0 million for trade financing.
It also re-mortgaged the freehold buildings acquired with Film & Foil Solutions Ltd and Alma Products Ltd for a combined £2.1 million, which, after repaying existing mortgages, improves Coral Products’s working capital position by around £1.4 million.
Coral Products has also been pre-approved for up to £1.5 million of asset finance to fund future capital projects.
‘I am delighted that Virgin Money has chosen to partner with us in the further development of the group. Virgin Money has shown great flexibility in providing the improved facilities acknowledging our ambitions for the future growth of our business. Overall, these actions combined will further enhance the financial strength of the group,’ said Coral Products Executive Chair Joe Grimmond.
Mark Preston, corporate director in the strategic finance team for north-west England at Virgin Money, added: ‘Coral is an exciting business which has delivered growth and innovation within the markets they operate. With these new banking facilities in place to support their growth ambitions, we are looking forward to working with the management team as they continue their exciting journey.’
Shares in Coral Products were flat at 17.50 pence each in London on Wednesday afternoon.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
