Coral Products Reports Two Previously Undisclosed Transactions Involving Former CEO

Coral Products Plc (AIM:CRL) has disclosed two historic related party transactions involving former CEO Ian Hillman that were not reported to the company board when they occurred. Auditors identified these omissions during a routine review, which led to an internal assessment of the financial arrangements.

"The independent directors of the company, having consulted with the company's nominated adviser, Cairn Financial Advisers LLP, consider that the terms of the transactions were fair and reasonable insofar as the shareholders of the company are concerned," Coral Products said in a statement regarding the findings.

Nature of the Transactions

The two transactions involved personal capital provided by Hillman to facilitate potential corporate asset acquisitions:

• September 2025 Deposit: Hillman provided £500,000 from his personal bank account as a deposit for a potential asset acquisition. The company repaid the full amount to the former CEO on October 3, 2025.
• October 2025 Purchase: Hillman provided £100,000 in two separate installments for an anticipated asset purchase from AAC Cyroma. The company repaid this balance on April 30, 2026.

Audit and Disclosure Process

These financial movements remained undisclosed to the board until September 28, 2026, when company auditors flagged the activity during an audit review. AIM rules require companies to disclose related party transactions to ensure transparency and prevent conflicts of interest. This is especially important when an executive uses personal funds to bridge corporate liquidity or facilitate deal-making.

Governance and Compliance

Related party transactions involve dealings between a company and its directors, officers, or significant shareholders. While such transactions are permitted, they are subject to strict disclosure requirements to protect minority shareholders from potential self-dealing or undisclosed liabilities. In this instance, the board relied on its nominated adviser, which is a mandatory requirement for AIM-listed companies. This reliance serves as the primary mechanism for validating that the arrangements did not disadvantage the company despite the procedural failure to report them at the time of execution.