Last checked at 7 Apr 2009 07:00
For immediate release: 7 April 2009
Carclo plc
("Carclo" or "The Group")
Pre-close trading statement
Carclo plc, the technology led plastics company, is pleased to make the following statement on trading for the financial year ended 31 March 2009 and outlook for the 2009/10 financial year. Carclo will announce its preliminary results for the 2008/09 financial year on 9 June 2009.
Trading performance
This has been another year of good progress and the results for the 2008/09 financial year will be in line with our expectations as outlined in the Interim Management Statement issued on 4 February 2009.
Second half trading has been weaker than the first half as customers worldwide have adjusted inventories to accommodate reduced demand or lower growth expectations. In Technical Plastics we expect profits to be at a similar level as the prior year on slightly lower sales, reflecting the Group's timely decision to exit from low margin automotive moulding which was completed in October 2008.
Sales and profits in Precision Products will be ahead of the prior year benefiting from a strong contribution from aerospace components and continuing design and development revenues from our high performance LED lighting contracts.
In the financial year we closed the Llanelli plant as part of our exit from automotive moulding and at the end of the year we completed the closure of the Slough manufacturing facility. The exceptional costs associated with these closures will be around £2.5 million.
Year-end debt is estimated to be around £19 million, well within our total facilities of £31 million. The increase in debt from £13.7 million at the start of the year is predominantly due to the translation impact of the US dollar and Euro denominated borrowings.
Pension accounting
The group pension scheme will show a deficit on an IAS 19 basis at 31 March 2009 compared with a small surplus at the prior year end. The IAS 19 net financing credit, which is a non-cash item in the group income statement, will also be reduced or eliminated next year. However, this reflects the volatility of mark to market accounting and, despite the turbulence in global financial markets, the recurring income from the scheme assets continues to match the net outgoings of the scheme.
Technology
Good technical and commercial progress has been made at Conductive Inkjet Technology and Platform Diagnostics. These two investments have the potential to make a significant change to Carclo's portfolio of businesses and we will include a full update on both projects within the preliminary results.
Outlook
The trading environment remains uncertain and we have limited visibility on the current state of our customers' end-markets. However, there are early signs of stabilisation of schedules and demand and we are seeing continuing growth in our medical and specialist markets. These factors, combined with the cost reductions implemented in the year just ended, give us confidence that we can continue to deliver progress from our global operations.
-ENDS-
| Enquiries: | |
| Carclo plc | 01924 268040 |
| Ian Williamson, Chief Executive | |
| Robert Brooksbank, Finance Director | |
| Weber Shandwick Financial | 020 7067 0700 |
| Terry Garrett or James White |
Notes to editors
Carclo plc is a technology led plastics group. 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.
A third of sales are derived from the supply of specialised precision products to the premium automotive and aerospace industries. Carclo is a leader in the development of high power LED lighting for supercars.
Carclo's strategy is to develop new technologies and products to drive future growth. Its investment in Conductive Inkjet Technology is at the heart of the newly emerging market for very low costs printed electronics.