24 March 2017 – purchase of assets
The company has completed the purchase of assets of ICM Ltd from its Administrators for a total consideration of around £600k. The assets consist of various injection moulding machines, some with robot handling, chillers, mixers and cranage. The assets will improve utilisation at the company’s Haydock facility, which has been approved by two major multinational tier one automotive system suppliers to supply a number of components. This should lead to substantial new business throughout the next financial year. The recently announced bakery tray business is also expected to increase substantially in the same period and Coral has commissioned a second 750 tonne machine to cope with the demand. The funding for these projects is from a mixture of 5 year asset financing and bank resources. The company has had mixed fortunes in the recent past but we believe that a BUY rating is deserved.