Coral Products Plc · LSE:CRU
Coral Products — FY2024 Earnings Presentation
25 slides from Coral Products's earnings presentation, September 2024
Slide 1: Coral Products Plc Final Results
Coral Products Plc Final Results September 2024
Slide 2: Executive Summary
Executive Summary • Specialist plastic products design house and UK manufacturer. FY2024A FY2024A EBITDA • Providing customised, cost-efficient and Revenues £3.2m / £31m >10% sustainable solutions for the food packaging, personal care, household, transport and communications sectors. Source: Coral P
Slide 3: A Tale of Two Halves
A Tale of Two Halves Strong 23/24 H1 performance halted as UK dipped into recession causing an industry-wide slowdown FY 23/24 FY 22/23 % YoY 23/24 H1 22/23 H1 % YoY FY24 Revenue £31m £35.2m -12% £17.2m £17.6m -2.3% Financial EBITDA £3.2m £3.9m -18% £2.3m £1.9m +21% Highlights New operational strate
Slide 4: Solid Foundation for growth
Solid Foundation for growth Despite H2 headwinds, a solid year-end position maintaining YoY % GM gains FY2024A FY24 Revenues Financial £31m Highlights P&L FY2024A EBITDA £3.2m / >10% 4
Slide 5: Solid Foundation for growth
Solid Foundation for growth Resilient balance sheet and improved YoY liquidity. Post balance sheet events reduce gearing -15% and longer-term liabilities[-£1.2m. Year ended Year ended Consolidated Balance Sheet 30-Apr-24 30-Apr-23 £m £m FY24 Tangible Fixed Assets 9.1 10.1 Financial Goodwill and Inta
Slide 6: The New Coral Structure
Divisionally focused and accountable Group CEO Lance Burn Group Marketing Group FD Group HR & Sharon Tinsley Angela Samara Communications Holly Maw The New Division MD - Flexibles Division MD - Rigids Ian Hillman Phil Allen Coral Structure Alma Products Revenue: £5.9m / Film & Foil Revenue: £6.1m /
Slide 7: Central UK Location Accessible
Geographical concentration is efficient Edinburgh / Glasgow – 225 Miles Leeds / Sheffield – 45 Miles Midlands – 90 Miles London – 200 Miles Central UK Bristol / Cardiff – 185 Miles Location Accessible to all UK Population Centres 7
Slide 8: Flexibles: Film & Foil and Alma Products
Flexibles: Film & Foil and Alma Products Expertise: BRC AA+ Expertise: BRC A+ Food film polymers: Printed plastic food Flexible packaging films, print packaging: lamination film, paper and Extrusion thermoforming and aluminium foils container printing www.filmfoil.com www.almaproducts.co.uk Combinat
Slide 9: Rigids: Manplas and Tatra Rotalac
Rigids: Manplas and Tatra Rotalac Skills: BRC A Skills: Plastic extrusion and injection Vacuum-formed components moulded products e.g. to provide product protection commercial piping / food tubs www.manplas.co.uk www.tatra-rotalac.com Combination: Rigids Bespoke solutions for commercial customer bas
Slide 10: Strategic Pillars of Growth
Growth Drivers Aiming to scale business to double FY24 T/O by year 3 [26/27] via both acquisition and targeted organic revenue growth Successfully UK Manufacturing Synergy through managing and Technical M&A scale Strategic complexity Innovation Pillars of Growth Working with Winning and Investment i
Slide 11: Successfully Managing Complexity
Trusted by leading UK & International Brands • Genuine one-stop-shop • From raw polymers to extrusion to product and printing Skills • Producing bespoke products • Most competitors focus on just one part of the process Successfully • Providing design alternatives which are economic and carefully Man
Slide 12: UK Manufacturing and Technical Innovation
A strategic advantage • Reduced lead-times compared to overseas alternatives • Vastly reduced delivery costs & lead-times on bulky items. Geography • Viable solution for emergency inventory replenishment and ‘specials’ UK Manufacturing Environment • Reduced CO2 footprint and Technical • Increasing u
Slide 13: Yielding results from Investment in Machinery
Yielding results from Investment in Machinery • Strategic £3.0m investment in product & channel diversification manufacturing capabilities. New Machines • Key driver of commercial resilience and profitability. • Investment matched to new customer contracts. UK • x8 new Injection Molding presses Manu
Slide 14: Yielding results from Investment in Brands
Yielding results from Investment in Brands Brand Relaunch EcoDeck Grids APRIL 2024 • Launch of new B2C and B2B platforms May 24 New Websites • B2C www.ecodeck.biz UK • B2B www.ecodecktrade.biz Manufacturing and Technical New UK B2B Innovation Partners https://www.diy.com/departments/ecodeck-eco500-g
Slide 15: Synergy through scale
Optimising Group Resource • Strict focus on profit margins and KPI’s Leadership • Mobilising pockets of expertise across the business Synergy Finance • Consolidating onto two Division accounting systems through And IT • Improving reporting times and responsiveness scale • FY24 [2023-24] YE LFL Headc
Slide 16: Acquisitions
Acquisitions Mar 2021 May 2022 May 2022 Sep 2022 Oct 2022 Consolidate last three years of growth – emphasis on optimising current assets M&A Characteristics of future M&A: • Initially c.£5m - £20m T/O. • Similar expertise • Potential to scale • Good customer base • Tangible synergies • Proven manage
Slide 17: Coral and the environment
Coral and the environment Our ESG Principles A 360° approach 1 Sustainability Grow End-Of-Life Recycling within the Group 2 Community Sustainability Impact positively on the communities around us 3 3 Intelligence Continuing to design sustainable products 4 Responsibility Purchasing raw materials fro
Slide 18: Coral 4C's - A Positive and Sustainable Team Mindset
Coral 4C’s - A Positive and Sustainable Team Mindset Sustainability We pursue profitability as the means of sustaining and growing shareholder value and to build an empowered employee community with strong social and environmental conscience. Our employees have the vision and resources to design, cr
Slide 19: Appendices
• Coral Strengths Pages 20 - 24 Appendices • Summary Pages 25 19
Slide 20: Coral – Strong organisation fundamentals
Coral – Strong organisation fundamentals • Established, specialist plastics design & UK manufacturing providing customised, cost- efficient solutions across multiple channels. • Long-term loyal customer base underpinning recurring revenues (e.g.) Muller, BT, JLR • Foundation of experienced mix of or
Slide 21: Coral – Strong Executive management
Coral – Strong Executive management Lance Burn, Chief Executive Officer Joined in 2024 from IG Design Group Plc where he served as Executive Board director from 2012. Successfully ran multi-site manufacturing businesses across diverse verticals and has extensive international experience. Sharon Tins
Slide 22: Coral – Strong Board Governance
Coral – Strong Board Governance Joe Grimmond – Non Executive Chair Joe was appointed in March 2011. He was appointed as non-executive Chairman at the GM in 2011. He has fulfilled the role of Executive Chairman on numerous occasions throughout his time with Coral Products PLC. Mr Grimmond is a Fellow
Slide 23: Summary: Uniting Coral
Bringing the Company together Flexibles Division Rigids Division Summary • Uniting Coral through a change in strategic approach - moving away from overseeing Uniting seven independent businesses to operating under two divisions - Rigids and Flexibles Coral • • Small Group team providing central serv
Slide 24: The Community that is Coral
The Community that is Coral • Increasing use of recycled plastics – 2023 > 12,000 T • Introduced End-Of-Life Recycling promise for Circular Economy customers. • Reduction of carbon footprint Summary • Investment in People / Culture / Retention • Ethical and responsible industry employer of choice Pe
Slide 25: Delivering Strategic Growth Drivers
Delivering Strategic Growth Drivers Successfully managing UK Manufacturing and Synergy through scale M&A complexity Technical Innovation Working with leading brands Winning and maintaining new Investment in new Investment in acquired and growing customers customers through the technologies and our p