Trading Statement

Carclo PLC
26 March 2002



                                   CARCLO plc

                                 TRADING UPDATE


In accordance with our objective of keeping shareholders informed of the
progress of the group, Carclo plc issues the following review of trading for the
year ending 31 March 2002.



Specialist wire



As stated in our Interim review, issued last December, the card clothing
businesses experienced difficult trading conditions with volumes and prices
coming under pressure in the third quarter.  The New Year, however, started well
with recovery in our key Asian markets.  A significant rationalisation programme
has simplified this business and reduced its cost base. In the past three months
we have closed the smaller US facility, sold the flexible card clothing
operation in Holland and the textile service machinery business in Germany.
Overall our card clothing business is trading in line with our expectations.
The remaining companies in the specialist wire division continue to trade well.



Technical plastics



In September of last year we reported that, as a consequence of the significant
downturn in our telecoms business, our UK based moulding activities would be
subject to a major rationalisation programme. This exercise is complete and UK
moulding capacity is now aligned with demand.  Production has started at our new
Czech Republic facility and initial orders are very encouraging.  After a slow
start our facility in China is now operational.  The US business experienced a
difficult third quarter, but demand in January and February has recovered.
Medical continues to grow with new products and capacity coming on line.
Automotive volume is holding up but price pressure remains severe and as a
consequence some manufacturing is being moved to Hungary and the Czech Republic
to maintain our competitive position.



Telecoms remains difficult and, as a result, the division is trading slightly
below our expectations.  We have taken the opportunity to further rationalise
this operation. The cost base and capacity throughout the teletronics businesses
have been rebalanced in order to deliver acceptable returns in the future



Rationalisation and reorganisation



The planned rationalisation of the card clothing and UK moulding operations is
now complete. We expect to report exceptional charges of over £17 million in
respect of this exercise, of which £4 million are cash costs, £6 million relates
to the write down of goodwill on the acquisition of CTP Alan and £6 million
relates to the write down of fixed assets and working capital associated with
our teletronics operations and specialist wire activities. The remainder
includes the profit on disposal of surplus property, the losses on the disposal
of Joseph Sykes Brothers and the European card clothing operations.



Outlook



Demand appears to have stabilised and our medical, Czech Republic and China
operations are contributing to growth. Our UK cost base has been sharply reduced
and the group is again cash generative. After a very difficult and disappointing
year, the group is now considerably better positioned to address its markets and
the board looks forward with confidence to the coming year.







For further information please contact:



Carclo plc
Ian Williamson, Chief Executive              01924 330 500



Weber Shandwick Square Mile
Richard Hews/Trish Featherstone              020 7950 2800



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