Coral Products secures new banking facility

Plastics manufacturer and supplier Coral Products has secured a new banking facility with Virgin Money, it announced on Wednesday.

The AIM-traded company said the improved facility would provide it with a total banking facility of £10.35m, including £7.35m for invoice financing and £3m for trade financing.

It said the new facility was expected to enhance its working capital position, enabling it to take on more projects and expand its operations.

The funding would also help the company to develop its plastic product lines and explore new growth opportunities in the market.

In addition to the new banking facility, Coral said it had remortgaged the freehold buildings it acquired with Film & Foil Solutions and Alma Products, for a total of £2.1m.

That move, the board said, had enabled the firm to repay its existing mortgages and improve its working capital position by around £1.4m.

Finally, the company said it had been pre-approved for up to £1.5m of asset finance, which would be used to fund future capital projects.

“I am delighted that Virgin Money has chosen to partner with us in the further development of the group,” said executive chairman Joe Grimmond.

“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.”

At 1402 GMT, shares in Coral Products were up 2.43% at 17.92p.

Reporting by Josh White for Sharecast.com.