HAYDOCK plastics company Coral Products proposes to cancel its stock market listing and switch to the Alternative Investment Market (AIM) instead.

It said today that it will convene a general meeting at the Haydock Thistle Hotel on July 18 to seek shareholder approval for the move.

Trading in Coral’s shares was suspended today as part of the process.

The board said the move is part of a strategy to “restore the company to profitability and growth”.

It said it is currently considering a potential “significant acquisition and fundraising” which would hinge on the cancellation of its current listing and move to AIM.

But it added that whether or not the acquisition and fundraising proceeds, a move to the lesser-regulated AIM would still be in the company’s best interests.

Earlier this week Coral reported a sales rise of 5% for the last year to £13.2m, but full-year losses before tax widened 14% to £753,000.

The company, which has seen its traditional CD, video and DVD casings market decline sharply in recent years is trying to establish new sources of revenue going forward.

Coral chairman Geoffrey Piper said: “The board recognises that sales of media packaging are in decline, albeit over a period of years.

“A new three-year strategic plan has been recently approved by the board. This plan aims to reduce the overall percentage of sales of media packaging products by increasing revenue in new business areas.

“This will involve a twin strategy of organic sales development and acquisition of businesses. Sales growth will focus on recycling and food packaging products, as these can be served by our existing plant, machinery and skills.

“In addition, we will increase our efforts to acquire further trade moulding businesses and are actively looking for targets.”