Interim Management Statement

RNS Number : 0964E

Carclo plc

05 February 2015

 

For immediate release                                                                         

5 February 2015

Carclo plc

("Carclo" or the "Group")

Interim Management Statement

The board is pleased to report that trading in the second half of the year has been stronger than anticipated with full year underlying performance now set to exceed previous expectations.

Operating margins in Technical Plastics have been higher in the second half as anticipated, reflecting the quality of new business and the successful integration of various new programs.

Within LED Technologies schedules have been strong. The design and development of multiple new supercar programs is well underway and further wins in the second half are in line with our previous expectations. Customer feedback remains highly encouraging. 

Precision Engineering has benefitted from a healthy order book and our new business pipeline is developing well. We expect the moderate growth in this business to continue into next year.

Carclo Diagnostic Solutions continues to make very good progress. We are actively monitoring and assessing our key commercial opportunities in order to maximise product alignment and value within the Point-of-Care diagnostics area.

Our strategic review of CIT Technology ("CIT") is ongoing. Our partner, Atmel Corporation ("Atmel"), announced on 4 February 2015 that it is exiting its XSense™ business. This is an important milestone in the completion of our own strategic review, which remains on track to be completed by 31 March 2015. CIT will continue to support Atmel during its final production phase. We do not expect this ongoing support to have any further material financial impact on the Group.

The Group's net debt at 31 March 2015 is set to be in line with the board's expectations. The re-financing of the medium term loan facilities is progressing well and is expected to be completed during the course of the next few months.

The board is pleased with the Group's progress in the current financial year and believes that it is well positioned to deliver strong growth in the next financial year and beyond.

Carclo plc also announces its intention to commence a capital reorganisation process to cancel its share premium account and capital redemption reserve in order to augment its distributable reserves and enable future dividends to be paid. A circular containing details of this process will be published and sent to shareholders shortly, together with a notice to convene a general meeting to obtain shareholder approval prior to seeking court confirmation for the capital reorganisation.

- 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
N+1 Singer Shaun Dobson Richard Lindley		0207 496 3000
Weber Shandwick Nick Oborne Tom Jenkins		0207 067 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.

 

END

 

 

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