Trading Update

5 Apr 2007 07:01

Carclo plc05 April 2007 For immediate release 5 April 2007 Carclo plc ("Carclo") Trading Update Operating review After a period of major transition for Carclo, it is pleasing to report a yearof stable trading and increased margins in our core Technical Plastics business.The board anticipates that trading for the year ended 31 March 2007 will be inline with its expectations. Carclo Technical Plastics delivered an improved profit with sales increasingtowards the end of the financial year. We continue to benefit from growth in ourglobal medical business and from cost reductions in the UK operations. Theresulting improvement in margins, together with the group's global manufacturingflexibility, provides a good base for further progress in the new financialyear. Carclo Precision Products has had a better second half, as expected, and therehas been an encouraging recent upturn in the level of enquiries for newautomotive specialist lighting products. Innovation The group continues to invest in new technologies. We have further increased ourinvestment in Conductive Inkjet Technology ("CIT") which has been successful incommercialising its innovative printing technologies. The first installation ofa MetalJet 5000 was made in our Slough facility where a range of securitysensors will be produced. The second system, a MetalJet 4000, has been sold intothe aerospace industry for use in the production of shielding materials. Inaddition, our work on photovoltaics has progressed well and we have now taken anorder for a MetalJet 2000 pilot system from one of Europe's leading solar cellproducers. At the beginning of March we announced that we had signed a joint venture withBBI Holdings Plc ("BBI") to acquire up to 50 percent of Platform Diagnostics, aprivately owned developer of Point of Care diagnostics. This opportunitycombines our expertise in microfluidics, surface coatings and optics with BBI'sreagent supply, sales and marketing network to bring to market a new generationof low cost, rapid diagnostic tests for Point of Care. Financial strategy On 27 March 2007 we completed the sale of our former wire rope factory inWorksop for £1.5 million. This brings the total proceeds from the disposal ofsurplus properties in the year to £7.4 million, resulting in a significantfurther reduction in group debt. We have made good progress in our negotiations to agree a long term funding planfor our defined benefit pension schemes. We expect to conclude thesenegotiations and to agree renewed bank facilities in the next few months. - Ends- Enquiries: Carclo plcIan Williamson, Chief ExecutiveRobert Brooksbank, Finance Director 01924 268040 Weber Shandwick Financial 020 7067 0700Richard HewsJames White 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. • 75% of sales are derived from the supply of fine tolerance, injection moulded plastic components, which are used in medical, automotive, telecom and electronics products. This business, Carclo Technical Plastics, operates internationally in a fast growing and dynamic market underpinned by rapid technological development. • 25% of sales are derived from the supply of manufactured systems 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