Coral Products PLC (AIM:CRU) jumped 18% as the plastic container maker announced the sale and leaseback of two freehold properties on the Haydock Industrial Estate, Haydock, and booked a further £900,000 from an insurance settlement.
The properties are being sold to Glenbrook H1 for £1.7 million against a book value of £1.3 million with the buildings to be leased for 15 years at an initial rate of £155,000 per annum.
In addition, Coral said settlement has been reached for an insurance claim made by subsidiary Film & Foil Solutions relating to a fire in May 2020, resulting in a cash payment of £900,000 to the company.
In total, the gross cash proceeds from the developments will be £2.6 million with£1.1 million earmarked to pay down, in full, the remainder of the mortgage on the two freehold properties and other borrowings.
The remaining £1.5 million will be used to strengthen both working capital and the balance sheet.
Joe Grimmond, Coral Products chairman, added: “Together with the cost efficiencies we continue to target, we are in a much stronger position as we enter 2025."
Shares rose 1.13p to 7.38p.