Last checked at 8 Apr 2010 07:00
8 April 2010
Carclo plc
("Carclo" or "the group")
Pre-close Trading Statement
The board of Carclo is pleased to report that the group has continued to trade broadly in line with its expectations since the issue of our Interim Management Statement on 11 February 2010.
Trading Performance
As expected, the group enjoyed a stronger second half trading performance.
In Technical Plastics we anticipate profits to be ahead of last year reflecting a robust performance from the group's medical and optical business. In Precision Products profitability has been impacted by subdued demand at our aerospace businesses. Wipac enjoyed a better second half due to significant revenues from design, development and tooling for supercar lighting programmes. However, two customers have extended vehicle product launches by between three and six months resulting in a modest reduction in profit recognition this year and a corresponding increase in the new financial year.
Balance Sheet and Pension Accounting
Net debt has reduced this financial year due principally to the successful equity placing in December 2009 which raised £3.5 million net of costs to fund the additional capital expenditure and working capital requirements at Conductive Inkjet Technology ("CIT").
The group pension scheme will again show a deficit on an IAS19 basis at 31 March 2010. The year's results will reflect a net IAS19 financing charge of £0.4 million (2009 £1.0 million credit) although this is expected to revert to a net credit for 2010/11 due to an increase in the value of the scheme's assets.
Technology
The commercial development of CIT continues to plan. The InkJetFlex business is now fully operational with a growing number of customers. The new pilot line for touch sensor screens is on track to be commissioned towards the end of 2010. Cambridge Display Technology has announced an innovative new OLED lighting product concept using CIT technology for the front transparent electrode. This is another potentially large application for our technology.
Outlook
There are tentative signs of an improvement in the general trading environment and, if sustained, this should benefit the parts of our business that have been affected by the downturn. We continue to win new medical and optical business and the capacitive touch screen project at CIT is rapidly gaining momentum. The board is therefore confident of delivering further progress in the new financial year.
Carclo will announce its preliminary results for the financial year ended 31 March 2010 on 8 June 2010.
- ENDS -
| 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.