Last checked at 19 Aug 2008 07:00
Carclo plc
("the Group")
Interim Management Statement
The board is pleased to announce a promising start to the new financial year with the Group continuing to trade in line with its expectations for the first quarter ended 30th June 2008.
Overall sales in Technical Plastics in the three months to 30th June 2008 have remained at a similar level to the same period last year. In the 10th June announcement of the results for the year ended 31st March 2008 we outlined our plans to exit the majority of the remaining automotive business within this division. This planned reduction in the Group's automotive exposure is well advanced and we will complete the exit by the end of September 2008. We continue to see good growth in our medical and specialist markets and in our operations in China. This growth in our higher margin businesses continues to drive profit progression in the Technical Plastics division.
The Precision Products division has also had a positive start to the year. Strong schedules in the Wipac communications business and further growth in the tooling programmes generated by the contract wins in specialist lighting have offset the impact of more subdued demand in its aftermarket business. The division's smaller aerospace and engineering business has also performed well. In order to complement our UK aerospace cables business, the Group has recently acquired Jacottet Industrie SA, a French aerospace cables business, for an initial consideration of €2.5 million in cash. Contingent consideration of up to €400,000 will also be payable dependent on the recent earnings performance of the company.
The commercial development of Conductive Inkjet Technology ("CIT") continues to gain momentum and the new MetalJet 6000 production line has now been installed alongside our MetalJet 5000 production line at our Cambridge facility. We are currently in the prototyping and testing phase prior to the commencement of volume production in late September. This will coincide with CIT's contribution to RFID Europe 2008 in Cambridge where CIT will be showcasing its technology and hosting visits from many of the leading RFID companies.
Good progress with CIT's customers and commercial partners has continued throughout the period. One of our partners in the photovoltaic market has demonstrated an economically significant uplift in cell efficiency using CIT's patented inks while we have an increasing engagement with customers evaluating our fine line technology especially for touch screen applications.
In conclusion, therefore, the year has started well and the outlook for the Group remains positive.
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Carclo plc 01924 268040
Ian Williamson, Chief Executive
Robert Brooksbank, Finance Director
Weber Shandwick Financial 020 7067 0700
Richard Hews/James White
Notes to Editors
About Carclo (LSE: CAR)
Carclo plc is a global supplier of technical plastic components. It is a public company whose shares are quoted on the London Stock Exchange.
75% of sales are derived from the supply of fine tolerance, injection moulded plastic components, which are used in medical, automotive, telecom and electronics products. This business, Carclo Technical Plastics, operates internationally in a fast growing and dynamic market underpinned by rapid technological development.
25% of sales are derived from the supply of manufactured systems to the automotive and aerospace industries.
Carclo's strategy is to grow rapidly in low cost manufacturing regions and to develop new technologies and products to underpin future growth.