Last checked at 31 Jan 2017 07:00
31 January 2017
Carclo plc
("Carclo" or the "Group")
Trading Update
The Board is pleased to announce that trading in the second half of the Group's current financial year remains strong and the outlook for the full year remains in line with its expectations.
Our Technical Plastics division is set to report a stronger second half performance, as expected, assisted by the contribution from Precision Tool & Die ("PTD"), acquired in October 2016. Our US business is trading well and the integration is progressing to plan. The expansion of our Bangalore facility in India is now underway and, once completed this summer, should double the capacity of our Indian business. Our Chinese operation, based in Taicang, continues to support the growth of its main medical customer while securing other new business opportunities.
In our LED Technologies division, Wipac supercar lighting product sales have been in line with our forecasts and this business continues to benefit from the significant design, development and tooling activities generated by the recent run of programme wins. Wipac continues to win new lighting programmes within the low volume sector and remains focussed on securing a further mid volume programme in the new financial year, which will support the anticipated strong growth of this business.
Our smaller LED Optics business has continued to benefit from strong demand and the project to move a part of the manufacturing business to our Technical Plastics facility in Brno, Czech Republic is running to plan.
Our Aerospace business has continued to enjoy stable trading conditions in both its UK and French operations.
The Group's balance sheet remains strong, benefiting from the additional £3 million of funds raised in last October's equity placing to fund the acquisition of PTD. The Board anticipates that Group debt at the financial year end will be broadly in line with its expectations. The IAS19 pensions deficit, which had increased significantly due to the steep decline in corporate bond yields following the EU Referendum result in June 2016, is expected to have reduced modestly, reflecting the recent increase in the corporate bond yield used to discount the pension liability.
The Board remains positive about the Group's trading performance in the current financial year and its longer term prospects for further growth and increased profitability.
Later today, Carclo will be holding an investor event at its Wipac facility in Buckingham. The event is intended to provide a greater understanding of the Group's supercar lighting business. No new material trading information will be provided and the presentation materials will be available on the Investors section of Carclo's website following the event.
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Enquiries:
Carclo plc |
| 01924 268040 |
Chris Malley, Chief Executive |
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Robert Brooksbank, Finance Director |
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Peel Hunt LLP |
| 0207 418 8900 |
Justin Jones |
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Jock Maxwell Macdonald |
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Mike Bell
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Weber Shandwick Nick Oborne Tom Jenkins |
| 020 7067 0000 |
About Carclo
Carclo plc is a public company whose shares are quoted on the Main Market of the London Stock Exchange.
Carclo's strategy is to develop and expand its key manufacturing assets in markets where there are significant further opportunities to drive shareholder value. To enhance profit margins and support its customers, the group has been investing across its global footprint.
Approximately three fifths of group revenues are generated from the supply of fine tolerance, injection moulded plastic components, mainly for medical products. The balance of group revenue is derived mainly from the design and supply of specialised injection moulded LED based lighting systems to the premium automotive industry.