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 £1.7 million, against a book value of £1.3 million.
The properties will be leased for 15 years at an initial rate of £155,000 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 £900,000 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, £2.6 million will be used to pay in full the remaining mortgage balance on the two Haydock properties, along with other borrowings. The £1.5 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.
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