Interim Management Statement

RNS Number : 2240Y

Carclo plc

22 January 2014

 

22 January 2014

Carclo plc

("Carclo" or "the group")

Interim Management Statement

The board announces that the group's operating businesses, as expected, are enjoying stronger trading in the second half of the financial year but that lower than previously expected sales at Conductive Inkjet Technology ("CIT") will reduce the forecast profitability of CIT and hence of the group in the second half.

At CIT, sales of coated film in the second half are set to be ahead of the first half sales number, but below the board's previously disclosed estimated range. This is due to a slower than anticipated ramp up in production on the programs which are using XSense™ touch sensors.   CIT's partner, Atmel Corporation ("Atmel"), recently announced its first production rollout for the HP Omni 10™ from its Colorado manufacturing site and Atmel continues to supply XSense™ for this program. Further programs are expected to progressively come on stream through the first half of 2014, benefitting from the superior capabilities of XSense™ (including narrow bezel capability) versus competitive offerings.

The market for XSense™ and other metal mesh solutions is growing rapidly as adoption begins to gain traction at the expense of ITO touch sensor solutions in this $5 billion market. At the same time we have seen competition in the market increase for all touch solutions, which is causing pricing pressure; while we expect developments in the touch sensor market to become clearer during 2014, this is likely to reduce coated film revenues and margins versus our previous estimates. The product capabilities of XSense™ are strong and we remain confident that it can gain a significant market share in this rapidly growing market. 

The group's Technical Plastics, LED Technologies and Precision Engineering businesses are all performing in line with the board's expectations.

Technical Plastics has been awarded several new programs during the year and further significant program awards are anticipated within the next few months as this business enters a growth phase.

Within the LED Technologies Division we have secured new supercar lighting programs and anticipate further awards early in the next financial year which will drive significant growth in this specialist design and manufacturing business. Sales within the division's LED Optics are also growing well.

Precision Engineering continues to perform well and has maintained its prior year performance.

Progress at Carclo Diagnostic Solutions is as anticipated and we are on track to deliver working product prior to our year end for the previously disclosed trial project for an Acute Kidney Injury marker with EKF Diagnostics Systems plc.

The group's balance sheet is strong and its funding remains secure.  The board looks forward to sales and profits progression across the group in the coming financial year.

- ENDS -

Enquiries:
Carclo plc	01924 268040
Chris Malley, Chief Executive
Robert Brooksbank, Finance Director
Weber Shandwick Financial	020 7067 0700
Nick Oborne / Stephanie Badjonat

Notes to editors

Carclo plc is a technology group. It is a public company whose shares are quoted on the London Stock Exchange.

Carclo's strategy has been to develop new technologies and products to drive future growth. Its investment in CIT has led to the introduction of a new material for use in Capacitive Touch Screens.  Further investment has been made in Carclo Diagnostic Solutions, where a novel Point-of-Care hardware platform has been developed.

Approximately three fifths of revenues are currently derived from the supply of fine tolerance, injection moulded plastic components, which are used in medical, optical and electronics products. This business, Carclo Technical Plastics, operates internationally in a fast growing and dynamic market underpinned by rapid technological development.

Approximately two fifths of revenues are derived from the supply of specialised precision LED based systems to the premium automotive industry, as well as key control systems for the aerospace industry.

 

END

 

 

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