Coral buys freehold of its manufacturing plant for £1.75m

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Coral Products, the AIM-listed injection moulder, has announced it has bought the freehold of its Haydock-based manufacturing plant for £1.75m.

A new loan of £1.4m to acquire the property was topped up by £350,000 generated by the issue of 3.8 million new shares in the company.

The deal to buy the freehold will save Coral £304,000 a year in rent, the company said.

Commenting on the acquisition, Coral chairman Joe Grimmond said: "In early October we were offered the very attractive opportunity to purchase the freehold of the premises occupied by Coral at Haydock.

“It has been funded 70% by bank debt with the balance through an equity placing of 3.8 million shares agreed in mid- October with funds managed by MAM Funds plc at the then prevailing market price.

“This acquisition allows Coral to develop with confidence a centre of excellence on its own site of 100,000 square feet.”

Grimmond said the purchase would be earnings enhancing and was “another step in rebuilding the profitability and asset base of the group".