Last checked at 11 Feb 2010 07:00
11 February 2010
Carclo plc
("Carclo" or "the group")
Interim Management Statement
The board of Carclo is pleased to confirm that trading in the second half of the financial year is continuing in line with its expectations. Divisional operating profits should be well ahead of the first half and underlying profits for the full year are expected to be at a broadly similar level to last year. The Technical Plastics division continues to perform well and win new business in medical and optical. In Precision Products, demand in our aerospace businesses remains subdued but Wipac is seeing a stronger second half, benefitting from its supercar lighting programmes.
In December 2009 Carclo and Conductive Inkjet Technology ("CIT") announced that an agreement had been signed with Atmel Corporation ("Atmel") for the development and launch of an innovative touch screen product based on CIT's patented photolithographic film. CIT is on track to install a production line in its Cambridge facility for the manufacture of touch screen sensors which should be operational by the end of this calendar year. Atmel has made a payment to CIT of $0.5 million to secure preferential access to CIT's capacity with further payments of up to $0.5 million due once the production line is installed and commissioned.
Since the half year results were announced, the group has raised £3.5 million in cash, net of costs, through a placing of 2,858,000 new Carclo shares. This 5% placing was achieved at a nil discount to the prevailing mid market price and the funds are being used to accelerate a number of growth opportunities, primarily at CIT. This fundraising will enable the group to continue to reduce debt levels whilst investing in its growth businesses.
The group's finances remain strong, its main businesses continue to demonstrate their underlying strengths and CIT is now commercialising rapidly. The board is confident of delivering further progress in the next financial year.
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| Enquiries: |
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| Carclo plc | 01924 268040 |
| Ian Williamson, Chief Executive |
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| Robert Brooksbank, Finance Director |
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| Weber Shandwick Financial | 020 7067 0700 |
| Terry Garrett / Stephanie Badjonat / Clare Thomas |
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Notes to editors
·; Carclo plc is a global supplier of technical plastic components. It is a public company whose shares are quoted on the London Stock Exchange.
·; Two thirds of sales are derived from the supply of fine tolerance, injection moulded plastic components, which are used in medical, optical and electronics products. This business, Carclo Technical Plastics, operates internationally in a fast growing and dynamic market underpinned by rapid technological development.
·; One third of sales are derived from the supply of specialised precision products to the premium automotive and aerospace industries.
·; Carclo's strategy is to develop new technologies and products to drive future growth.