Last checked at 7 Dec 2022 09:44
7 December 2022
Carclo plc
("Carclo" or the "Group")
Contract Cancellation
In December 2020 the Group announced the receipt of a ten-year Framework Agreement from a
major global OEM for the supply of a range of components for use in their laboratory-based PCR diagnostic systems. At full production rates these contracts were expected to deliver incremental sales of between £10m and £15m annually for the life of the contract with the Board's most recent expectation being that production volumes would start building from the last quarter of the current financial year. Whilst the tooling contracts have been substantially delivered, the customer has now informed the Group that they no longer intend to proceed into the production phase of the project.
The Group is in discussion with the customer regarding an appropriate commercial settlement in relation to this cancellation. The Board is evaluating the financial impact and taking mitigating actions.
About Carclo plc
Carclo plc is a public company whose shares are quoted on the Main Market of the London Stock Exchange. The Group is a global provider of value-adding engineered solutions for the medical, optical and aerospace industries.
LEI: 21380078MEM399JPI956
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").
Enquiries:
Carclo plc
01924 268040
Frank Doorenbosch - Chief Executive Officer
David Bedford - Chief Financial Officer
FTI Consulting
020 3727 1340
Nick Hasell / Susanne Yule