Coral Products agrees sale of Merseyside premises

Plastic products company Coral Products has exchanged contracts for the sale of its freehold premises at North Florida Road, Haydock, Merseyside, to Glenbrook CP, it announced on Wednesday.

The AIM-traded firm said consideration for the property was about £3.5m, subject to a closing account reconciliation and conditional on it replacing the roof of the property, and other certain conditions.

It said it would spend about £0.65m replacing the roof of the property prior to completion, which was expected by the end of the third quarter.

The property was originally purchased by the group in December 2012 for £1.75m, and was held in its books at a carrying value of £2.5m.

It said the tenant was currently contracted to pay £0.3m per annum in rent for use of the property.

“Following the repayment of the Coronavirus Business Interruption Loan Scheme (CBILS) loan, the sale of the property and the return to normal business activity, the group has three profitable, cash generative businesses, a strong balance sheet and a much increased cash balance which will be further enhanced following completion of the sale of the property,” said executive chairman Joe Grimmond.

“This will support organic growth whilst allowing for us to seek acquisitions to augment our existing activities and reward shareholders for their long term support.”~

At 1210 BST, shares in Coral Products were down 3.87% at 14.42p.