Coral announces recycling bins contract - Crain's Manchester Business

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11:43 am, February 8, 2010
Coral announces recycling bins contract

Coral Products Plc (LSE: CRU) the Haydock-based maker of plastic bins and DVD boxes, today announced a three-year deal with the Eastern Shires Purchasing Organisation and the Central Buying Consortium.

It did not give a value for the contract but said it would be supplying public bodies across a wide area with its kerbside crates, lids and dividers and kitchen and kerbside food caddies as a joint supplier under a framework agreement.

In a trading update for the period since December 2, Coral said sales of media based products had started slowly in 2010 after being at the top end of expectations in the final months of 2009.

Coral said: "Expectations are that turnover of DVD cases will improve in line with the launch of several new films this year.

"Some additional capital expenditure is necessary in order to introduce a lightweight box with improved environmental qualities.

"Sales for household items have remained in line with forecast and will improve as new products come into production in the next few weeks."

Margins have recently been under pressure from raw material price increases which it could not pass on in the current market, Coral said.

The company it was still optimistic that its diversification into new recycling products will be justified in the medium term but warned that this would be "a gradual process" and media packaging products were still the core business.

Coral said it had facilities available for further capital investment and said the payback period for its investment in new products was anticipated to be short.

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