Last checked at 9 Feb 2011 07:00
9 February 2011
Carclo plc
("Carclo" or "the Group")
Interim Management Statement
The Group continues to trade broadly in line with the board's expectations for the full year and our financial position remains strong.
In the Technical Plastics division operating profits for the full year are expected to be more than 10% up on the prior year. Growth in our medical and LED optics businesses continues to be good, although in recent weeks we have seen some order cancellations in optics and some evidence of inventory management by our global teletronic customers. We anticipate that these are temporary issues and the division is set to enjoy a solid last quarter. Technical Plastics is expected to make further progress in profitability in the next financial year as a result of continued growth in its medical and optical businesses.
In the Precision Products division trading in the Group's aerospace business is stable and ahead of the prior year. Wipac is having a stronger second half benefiting from the ramp up in production on a number of supercar lighting programmes. Production efficiency continues to improve and Wipac is expected to deliver a significant boost to profitability in the next financial year. In recent weeks Wipac has won design nominations on two new supercar lighting programmes. The profit on these contracts will mainly be recognised in the next financial year and tooling profits in the current year will be slightly lower than planned.
Conductive Inkjet Technology ("CIT") has made further significant progress especially with its fine line technology. The Cambridge facility development for the touch screen production line is nearing completion and the pilot line upgrade to integrate our Gen 3 chemistry is on target. We expect volume production to start during the second half of the 2011 calendar year. The revenues that CIT will generate from its agreement with Atmel Corporation on touch screens are expected to be substantial and material in the context of Carclo's prospective revenue and profit growth.
- ENDS -
Enquiries: | |
Carclo plc | 01924 268040 |
Ian Williamson, Chief Executive | |
Robert Brooksbank, Finance Director | |
Weber Shandwick Financial | 020 7067 0700 |
Nick Oborne / Stephanie Badjonat / Clare Thomas |
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.