Coral Products (LSE:CRU), the Manchester plastics manufacturer, returned to profit in the first half of its financial year, according to interim results published on 8 January 2026. Sales rose 21.5%, but net Debt also grew.

What the company does

Coral designs, manufactures and supplies injection-moulded plastic products from Wythenshawe in Manchester. As of its 2024 annual results, it was organised into two divisions, Flexibles and Rigids, under chief executive Lance Burn, who started on 2 January 2024. Its businesses include Manplas and Ecodeck, and the interim report refers to Arrow Film and Foil Converters. The company's financial year ends on 30 April.

Interim results to 31 October 2025

Group sales excluding intercompany trade were £19.2m, up from £15.8m. Gross Profit rose 39.5% to £6.7m. Underlying operating profit was £1.31m, compared with £28,000 a year earlier, and underlying EBITDA was £1.78m against £727,000. Reported profit before tax was £0.1m, against a £1.3m loss, and Underlying Profit before tax was £0.4m against a £0.5m loss. Underlying Earnings Per Share were 0.74p, compared with a loss of 0.48p.

Debt and dividend

Net debt was £13.8m at 31 October 2025, up from £11.4m at 30 April 2025 and £10.3m a year earlier. LSE:CRU said about £2.3m of invoice discounting drawings funded Working Capital at Arrow, and operating cash outflow was £492,000. Cash was £543,000 and net Assets were £12.1m. There was no interim dividend, with the board prioritising investment, debt reduction and cash generation. That marks a shift from a time when the company paid full-year dividends of 0.5p, as it did for the year to April 2024. The statements also included a restatement of a prior period relating to an earlier Acquisition and a sale-and-leaseback.

Background and outlook

In September 2024, Coral reported full-year sales of £31.0m, down from £35.2m, and a statutory loss before tax of £0.9m after impairments of about £0.9m. LSE:CRU sold property to reduce borrowing. The January 2026 report said trading since the period end had been resilient across all divisions, with second-half Revenue expected to be marginally higher, driven by new Business wins. Manplas was expected to return to consistent profitability, and the board said its year-end expectations were unchanged.

Capital returns and property

Capital allocation has been cautious. In May 2024 the company bought back 136,260 shares at an average of 11.3p, leaving 89,032,697 shares in issue by September 2024. It sold a Runcorn property for £1.21m in July 2024 and agreed to sell a Haydock property for £706,000 that September, using proceeds to cut gearing. A final Dividend of 0.25p for the 2024 year was proposed for payment on 17 January 2025. The absence of an Interim Dividend in January 2026 therefore represents a further tightening.

Sector and index context

UK plastics manufacturers face volatile resin and energy costs and customers who push on price, so Volume growth does not always lift profit. Within the FTSE AIM All Share Index, Coral (LSE:CRU) is a small industrial company, and its modest Market Value leaves it exposed to swings in sentiment.

Key risks

Higher net debt is the central risk, along with reliance on invoice discounting, exposure to raw material and energy prices, and the need to return acquired businesses to consistent profit. Customer concentration and macroeconomic conditions can also hit orders.

What to watch next

Investors will look for the full-year results, confirmation of debt reduction, the dividend decision and evidence that new business wins are lifting margins.