Carclo Regulatory News (CAR)

10 Oct 2005 11:53

Carclo plc10 October 2005 For immediate release 10 October 2005 Carclo plc ("Carclo" or "the Group") Trading Update An important US customer of Carclo Technical Plastics, Delphi Corporation Inc.("Delphi"), petitioned for Chapter 11 protection on Saturday 9th October inrespect of the parent corporation and its US subsidiaries. It is anticipatedthat the bankruptcy and associated reorganisation will have a limited impact onCarclo. Over the last three years our strategy has been to reduce our involvement withconnector moulding and with Delphi's US operations in particular. We havesuccessfully focussed on specialist medical customers active in diagnosticsystems where we have a market leading position. Our sales to Delphi US havebeen reduced from over £7 million in 2002/03 to an annualised rate of £4.5million in the current financial year. In anticipation of this bankruptcy filingwe had also reduced payment terms and tightly managed inventory. Accordingly,our exposure to pre-petition Delphi is limited to a receivable of approximately£0.5 million. Our US attorney has advised that we should expect some recovery ofthis receivable but it will be some time before the amount is known. We willtherefore make an exceptional provision for the full amount in our results forthe half year to September 2005. We expect to continue trading with Delphi during the reorganisation but willcontinue with our strategy of reducing our exposure to US automotive and growingour specialist medical business. Excluding the impact of the Delphi receivable provision, trading results for thehalf year to September 2005 are in line with our expectations. Carclo PrecisionProducts has had a good first half benefiting from a continuation of strongdemand for specialist lighting. Carclo Technical Plastics has seen excellentprofit growth in the Czech Republic and China which has compensated for weakerconditions in the UK and US. Progress on new technologies such as ConductiveInkjet Technology and soluble capsules for drug delivery has been encouraging. The group will announce results for the half year to 30 September 2005 on Monday5 December 2005. - Ends - Enquiries: Carclo plc 01924 268040Ian Williamson, Chief ExecutiveRobert Brooksbank, Finance Director Weber Shandwick Square Mile 020 7067 0700Richard HewsSusanne Walker Notes to editors • Carclo plc is a global supplier of technical plastic products. It is a public company whose shares are quoted on the London Stock Exchange. • 65% of sales, on a pro forma basis, are derived from the supply of fine tolerance, injection moulded plastic components, which are used in medical, telecom and electronics products. This business, Carclo Technical Plastics, operates internationally in a fast growing and dynamic market underpinned by rapid technological development. • 35% of sales, on a pro forma basis, are derived from the supply of products 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. This information is provided by RNS The company news service from the London Stock Exchange