(Alliance News) - Carclo PLC on Friday reported a swing to profit in its first half and increased revenue, driven by its Technical Plastics division.
In the six months to September 30 the West Yorkshire-based provider of engineering for medical, optical and aerospace industries recorded a pretax profit of GBP4.4 million, swinging from GBP865,000 loss a year before.
Carclo's revenue rose 17% year-on-year to GBP58.7 million from GBP50.0 million a year before.
The company attributes this to a 20% revenue rise in its Technical Plastics division. The unit supplies moulded plastic components, often used in medical, optical and electronic products industries.
Revenue in the Aerospace unit fell 24%, after last year's figure got a boost from "the fulfilment of a strong pre-Covid order pipeline".
The company paid no dividend, unchanged from last year.
"Under the terms of its financing agreements the company is not permitted to make a dividend payment to shareholders up to the period ending in July 2023," Carclo explained.
The company expects further sales growth in the second half, subject to no disruptions from Covid-19 and supply chain issues.
Full-year underlying trading is expected to be slightly ahead of expectations.
"The group continued to make good progress in the first half of the financial year. In common with many companies, we experienced significant Covid-related operational headwinds, but despite these delivered a strong set of financial results," Chair Nick Sandars commented.
He added: "The board expects the positive commercial momentum seen in the first half to continue, with further product sales growth in the second half. Trading margins for the second half are expected to be slightly lower than in the first one, reflecting the current higher cost environment. Nevertheless, the board currently anticipates full-year underlying trading will be slightly ahead of expectations, with the one-off benefits of the Covid-related grant income and contribution from discontinued operations incremental to this."
Shares in Carclo were up 4.5% at 43.40 pence each on Friday afternoon in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Carclo (CAR)