Coral Products to pay earn-out after solid acquisition performance

Plastics specialist Coral Products updated the market on its 2020 acquisition of Customised Packaging Limited (CPL) on Monday, confirming the triggering of an earn-out consideration.

The AIM-traded firm had said at the time of the purchase in March that an earn-out would be payable to the vendors if CPL's profit before tax for the year ended 31 December was higher than £0.25m

If triggered, the earn-out consideration was set to be equivalent to 30% of the profits higher than £0.25m, for the period from 1 January to 31 December 2021.

Coral said on Monday that, following better-than-expected results at CPL, with reported sales in the year of £2.9m and pre-tax profits of £0.36m, it would be paying an earn-out consideration of £31,671 to the vendors of CPL.

“We're delighted with the performance of CPL to date,” said executive chairman Joe Grimmond.

“CPL has integrated well into the existing group, and we look forward to continuing improvement.”