Coral Products warns profits will be 'materially below' expectations

Shares in Coral Products plummeted after the maker of moulded things warned that profitability for the year would likely be “materially below” expectations, after poor trading at its subsidiary.

The company said that it has taken measures to improve the performance at its subsidiary, Coral Products Mouldings, in order to mitigate against the poor trading during November and December 2016.

Losses are expected to be reduced from January onwards, although a loss is forecast for the financial year ending 30 April.

Meanwhile, the company’s chief executive Roberto Zandona has resigned from the company and the board citing personal reasons, along with finance director Stephen Fletch who has retired, also citing personal reasons.

The company intends to appoint Sharon Gramauskas as finance director and Joe Grimmond, currently non-executive chairman, has agreed to act as an executive chairman.

Coral Products has maintained that its other companies have continued to trade profitability and that the company remains “profitable, cash generative and with a strong asset base”.

It also said that during December 2016 its freehold property in Haydock, Merseyside was revalued resulting in a significant surplus of over £500,000 which will be reflected in its balance sheet as at 30 April.

Shares in Coral Products were down 33.25% to 13.35p at 0921 GMT.