Last checked at 9 Apr 2015 07:00
For immediate release
9 April 2015
Carclo plc
("Carclo" or the "Group")
Year End Trading Update
The Board is pleased to announce that the Group has traded in line with its expectations for the financial year ended 31 March 2015.
Technical Plastics has benefitted from a strong last quarter and margins in this division continue to increase as high quality new programs are integrated in our global operations. Our capacity expansions in the US and Czech Republic are now complete and we expect our new facility in China will become fully operational during the new financial year. We have also started to increase capacity in India and at Tucson in the US with the securing of additional leased facilities. Overall these expansions will facilitate our continued growth in our key regions.
The LED Technologies division has also experienced a stronger second half at both Wipac and its LED Optics business. Wipac has continued to win additional supercar lighting programs and its recent capacity upgrade will facilitate the further growth we expect in this business.
Our Precision Engineering division has had a good year and we anticipate further moderate growth in this business in the new financial year.
Progress at Carclo Diagnostic Solutions has been encouraging with advances in microfluidics and plastics optimisation providing an increasingly strong underpinning for our Micropoc platforms. We have undertaken a third party commercialisation review which has resulted in an increased focus on the Troponin and CRP applications as these present the greatest commercially viable opportunities.
In October 2014, we announced that we had commenced a strategic review of our CIT Technology ("CIT") business. Over the last few months the Board has been considering all options for CIT ranging from our continued ownership through to a possible sale or licensing of the technology. To this end, we appointed corporate advisors to assist the Board in this process; to date we have seen some interest and discussions with potential acquirers remain ongoing. Regardless of the outcome of this, the Board intends that the Group will exit the CIT Touch and Printed Electronics businesses. CIT is still supporting last time purchases of product from its partner, Atmel Corporation, and will continue to manufacture coated film for approximately a further six months. This ongoing supply should not have any materially negative financial impact on the Group in the new financial year.
As previously announced, the Group's refinancing project is now complete and a new five year multi-currency revolving facility of £30.0 million has been agreed with HSBC.
The Board remains confident in the Group's strategy and is encouraged by the significant future growth prospects of its two main divisions.
Carclo will announce its preliminary results for the year ended 31 March 2015 on 9 June 2015.
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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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N+1 Singer Shaun Dobson Richard Lindley
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020 7496 3000 |
Weber Shandwick Nick Oborne Tom Jenkins |
| 020 7067 0000 |
Notes to editors
Carclo plc is a public company whose shares are quoted on the London Stock Exchange.
Carclo's strategy is to develop and expand its key manufacturing assets where there remain significant further opportunities to drive value. To enhance profit margins the group has been investing in new technologies.
Approximately three fifths of revenues are currently derived from the supply of fine tolerance, injection moulded plastic components, mainly for medical products. The balance of revenue is derived mainly from the design and supply of specialised injection moulded LED based lighting systems to the low volume premium automotive industry.