AGM Statement

RNS Number : 9155X

Carclo plc

03 September 2015

 

3 September 2015

Carclo plc

("Carclo" or the "Group")

AGM Statement

The board is pleased to announce that the Group has continued to perform strongly during the second quarter and trading remains in line with its expectations for the year ending 31 March 2016.

Technical Plastics has had a good start to the year. The implementation of our expansion strategy has continued with the new Chinese factory on course to commence manufacturing within the next few weeks. Our successful drive to improve operational efficiency has so far reduced the impact of the weaker Euro, helping to preserve margins in line with the board's expectations.

LED Technologies has been successful in managing the large number of new programmes that it has secured over recent years for new lighting systems from its luxury and supercar customers. Some of these are now transitioning, as expected, to prototyping and production phases. New programme wins have continued in line with our expectations. General lighting product sales have also been strong. As a whole, we currently expect the division to deliver a stronger trading performance for the year than previously anticipated.

Our Precision Engineering Aerospace business has also seen a solid performance in the first half of the financial year. We have recently experienced some weakness in the spares segment order book and, whilst this may recover in the second half, the divisional trading result is expected to be a little behind our previous expectations for the year as a whole.

Carclo Diagnostic Solutions has continued to meet its technical timelines. During the second half of the year it will increase customer and partner interactions and this will assist in providing a validation of the technology prior to moving to further phases of investment.

The Group's financing remains strong and, as expected following the investment in China, Group debt will increase slightly at the half year ending 30 September 2015, before reducing in line with expectations by the end of the financial year.

The board continues to have a strong level of confidence in the future performance of the Group.

- ENDS -

Enquiries:

Carclo plc		01924 268040
Chris Malley, Chief Executive
Robert Brooksbank, Finance Director
Peel Hunt LLP		0207 418 8900
Justin Jones
Jock Maxwell Macdonald
Mike Bell
Weber Shandwick Nick Oborne Tom Jenkins		020 7067 0000

Note 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 and support customers the group has been investing in lower cost regions and new technologies.

Approximately three fifths of revenues are 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.

 

END

 

 

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