Half-year Results

Coral Products plc, a specialist in the design, manufacture and supply of plastic products, announces its unaudited interim results for the six months to 31 October 2025.

* The financial headlines disclosed as underlying represent the reported metrics excluding separately disclosed items (being share based payment charges, amortisation of intangible assets and other one-off costs in each period), see note 7.

H1 '26 Financial Highlights:

• Group Revenue increased by 21.5%
• Group sales including £1.9 million of intercompany sales increased by 29.4% in line with its vertical integration strategy
• Gross profit increased by £1.87 million compared to H1 2024
• Operating profit increased by £1.28 million compared to H1 2024
• EBITDA increased by £1 million compared to H1 2024
• Underlying Earnings per Share improved by 1.22p compared to H1 2024

H1 '26 Strategic Highlights:

• Intercompany sales increased by £1.31 million year on year to £1.9 million, representing a growth of 225% reflecting the successful and targeted integration of Group businesses and capabilities
• Structural and performance improvements of the Manplas Ltd business is starting to deliver financial improvements
• Arrow Film & Foil Converters Ltd is performing in line with expectations
• Group 2025 full year outlook remains positively unchanged

H1 '26 Operational Highlights:

• Continued focus on manufacturing optimisation is delivering both efficiencies and gross margin improvements
• Further success in increasing recycled content across targeted products across the Group
• rPET extrusion line for Alma Products slightly delayed and will be commercialised and supporting new business from Jan '26
• New bag machine investment installed at Film & Foil to strengthen the range and support new identified business opportunities for H2 and beyond

Outlook:

• Senior leadership team continue to make structural improvements across the Group
• Evolving new business wins from H1 2026 combined with expected new business wins to start in H2 2026 reflects customer trust and competitive offering

Caution regarding forward looking statements

Chief Executive's Statement:

The progress and momentum of the business from FY'25 and throughout H1 of FY '26 is an important step in building confidence and trust in our ability to deliver consistent results.

Strategy & Markets:

The significant sales growth is attributed to both new business wins and the Arrow Film & Foil Converters Ltd acquisition (1st April 2025).

Gross margins have been steadily improving throughout the first half of the year with further improvement potential into H2.

Divisional performance overview:

Flexible Division:

The Flexible division has performed well during the period and has seen the successful integration of Arrow Film & Foil Converters Ltd, acquired in April 2025, into the wider Flexible Division. The immediate focus for the Arrow business has been sustainable profitability rather than revenue. Whilst the Arrow business has delivered revenue in line with management expectations, we have successfully created a profitable platform that now allows us to focus on optimising capacity and unlocking further growth in H2 and beyond.

Rigid Division:

The Rigid division has recorded solid revenue growth versus the same period last year, with gross margin improving steadily from operational efficiencies and strengthened cost controls. Substantive progress has been made to improve the financial performance of the Manplas Ltd with further improvements expected in H2. The Rigid Division remains well-placed to deliver in line with management expectations in H2 and beyond.

Distribution Division:

The Distribution division continues to perform well, with deeper customer penetration and increased cross-selling across the wider Group customer base. Recent success securing commercial orders for the 'single polymer lotion pump', that was the subject of product development starting in 2022. The introduction of a 'Heavy Duty Grid' is in the early phase of design and development to support the continued growth of the Eco-deck brand and business, whilst it is unlikely to contribute to any revenue in FY 26 it will support future growth in FY27 and beyond. The distribution division remains a key part of the Group's integrated value proposition, helping to deliver the short lead time expectations and service breadth.

Dividend:

The Board continues to review capital allocation and believes that prioritising investment, debt reduction and cash generation is the most appropriate use of capital, therefore, no interim dividend has been declared for the period ending 31st October 2025. The Board will keep the payment of dividends under review, taking into account the Group's financial performance, cash generation, working capital requirements and financing arrangements.

Outlook:

Trading since the period end has continued to be robust across all divisions.

In the second half of the year, revenue is expected to be marginally higher, despite the adverse seasonal effect on revenue in December and January, the improvement in revenue is primarily driven by the continued phasing of new business wins. The benefits from the operational restructuring and other initiatives underway at our Manplas Ltd business is expected to bring this business back into profitability on a consistent and sustainable basis.

The Board's expectations for the Group's year-end performance remain unchanged and reflecting the management of some legacy issues across the Group.

GROUP INCOME STATEMENT

For the six months to 31 October 2024 (unaudited, as restated)

Operating cash flow for the period was a net outflow of £492,000. The primary cause of the outflow was an increase in working capital following the acquisition of Arrow: trade receivables relating to the Arrow were £2.8 million and inventories by approximately £1.1 million. The Group financed these working-capital requirements through new invoice discounting arrangements at approximately £2.3 million. The proceeds are represented within financing activities in the Group Statement of Cash Flows.

NOTES TO THE FINANCIAL STATEMENTS

Basis of preparation

The financial information set out in these interim consolidated financial statements for the six months ended 31 October 2025 is unaudited. The financial information presented are not statutory accounts prepared in accordance with the Companies Act 2006, and are prepared only to comply with AIM requirements for interim reporting. Statutory accounts for the year ended 30 April 2025, on which the auditors gave an audit report which was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006, have been filed with the Registrar of Companies.

Significant accounting policies

The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements for the year ended 30 April 2025.

Reporting standard

These financial statements have been prepared in accordance with international accounting standards ("IFRS") as adopted by the United Kingdom ("UK") insofar as these apply to interim financial statements. The interim consolidated financial statements have been prepared using consistent accounting policies as those adopted in the financial statements for the year ended 30 April 2025.

The interim consolidated financial statements are prepared in sterling, which is the functional currency of the Group. Monetary amounts in these interim consolidated financial statements are rounded to the nearest £1.

Basis of consolidation

The Group financial statements consolidates those of the parent company and the subsidiaries of which the parent has control. Control is established when the parent is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary.

Where a subsidiary undertaking is acquired/disposed of during the year, the consolidated profits or losses are recognised from/until the effective date of the acquisition/disposal, being the date on which control is obtained or lost. All inter-company balances and transactions between Group companies have been eliminated on consolidation. Where necessary, adjustments are made to the financial information of subsidiaries to bring the accounting policies used into line with those used by the Group.

The Group applies the acquisition method of accounting for business combinations enacted after the date of creation of the Group, as detailed further below. The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair value of assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interest issued by the Group. Acquisition costs are expensed as incurred. The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognised in the acquired subsidiary's financial information prior to the acquisition. Assets acquired and liabilities assumed are measured at their acquisition-date fair values.

Going concern

As at 31 October 2025 the Group had net assets and cash. In preparing the interim financial statements, the directors have considered the principal risks and uncertainties facing the business, along with the Group's objectives, policies and processes for managing its exposure to financial risk. In making this assessment the directors have considered cash flows for the foreseeable future, being a period of at least 12 months from the expected date of approval of the interim financial statements. They have also undertaken activities to understand the usage of cash in recent financial periods to better understand the future cash risks to which the Group is exposed.

Having taken all the above factors into consideration, the directors have reached a conclusion that the Company and the Group are able to manage their business risks and operate within existing and future funding facilities for a period of at least twelve months from the date of approval of the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.

Underlying profit and separately disclosed items

Underlying profit before tax, underlying earnings per share, underlying operating profit, and underlying earnings before interest, tax and depreciation are defined as being before share based payment charges, amortisation of intangibles recognised on acquisition, acquisition and disposal costs, reorganisation costs, compensation for loss of office, goodwill impairment, gain on bargain purchase and stock write down due to goods which had been contaminated. Collectively these are referred to as separately disclosed items. In the opinion of the Directors the disclosure of these transactions should be reported separately for a better understanding of the underlying trading performance of the Group.

Taxation

The taxation charge for the six months to 31 October 2025 is based on the effective taxation rate, which is estimated will apply to earnings for the year ending 30 April 2026. The rate used is below the applicable UK corporation tax rate of 25% due to the utilisation of tax losses in the period.

Earnings per share

Basic and underlying earnings per ordinary share are calculated using the weighted average number of ordinary shares in issue during the financial period of 88,954,974 (31 October 2024 as restated: 89,048,581 and 30 April 2025: 89,041,078).

Movement in Net Debt

Net debt incorporates the Group's borrowings and bank overdrafts less cash and cash equivalents. A reconciliation of the movement in the net debt is shown below:

Included within the movement in net debt for the period to 31 October 2025 is an increase of approximately £2.3 million, representing drawdowns under a new invoice discounting facility to fund the working capital of Arrow Film & Foil Converters Limited.

Prior period adjustment

The Group has implemented a prior period adjustment to correct the treatment of an earlier acquisition, including presentation of fair value adjustments, insurance claims (based on the settlement expectations in place at each reporting date), and the valuation of contingent consideration which is composed of amounts payable based on insurance claims and recovery of trade receivables, where the expectations of these factors had not been correctly reflected in the interim accounts for 31 October 2024.

A prior period adjustment has also been implemented regarding the treatment of the sale-and-leaseback of a property. This asset was previously derecognised with a gain on disposal and accounted for as a new asset. This has been corrected, as the transaction should not have qualified as a new asset.

The following is a reconciliation of the adjustments made:

Reconciliation of changes

A copy of this interim statement is available on the Company's website at: https://coralproducts.com/investors/reports-presentations/.