Carclo notes foreign exchange headwinds but expectations unchanged

(Alliance News) - Carclo PLC on Friday said its full year performance expectations were unchanged despite foreign exchange headwinds due to a stronger pound.

The Mitcham, London-based provider of precision components said trading in the year to date is in line with its expectations, "with strong margin performance and positive underlying growth", excluding the effects of foreign exchange rate movements, in its CTP Manufacturing Solutions and its Specialty businesses.

This offsets lower revenue in Carclo's Design & Engineering segment, which is expected to "partially recover" during the second half.

Carclo noted foreign exchange headwinds arose from a strengthening sterling since the beginning of the year.

The company reiterated its full-year expectations, and expects its "strong" margin performance to be maintained throughout the year. Working capital remains towards the lower end of a target range of 5% to 7.5% of sales.

It added that the consolidation of US operations into Pennsylvania "is bearing fruit" with specialised production cells delivering improved operational performance and resource utilisation.

Further, the Specialty business is expected to continue to "grow strongly" amid robust demand from the aerospace sector and market share gains in specialist machining delivering double digit revenue growth.

Carclo shares fell 6.3% to 60.00 pence each on Friday afternoon in London.

By Tom Budszus, Alliance News slot editor

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