Trading Update

RNS Number : 7445P

Carclo plc

07 October 2011

 

For immediate release                                                                                         7 October 2011

Carclo plc

("Carclo" or "the group")

Half Year Trading Update

The group has traded in line with the board's expectations for the first half of the year with a solid performance given the current uncertain economic environment. As previously indicated, a greater proportion of operating profits is expected in the second half of the year.

In Technical Plastics, profits will as anticipated be slightly behind last year's first half, which was unusually strong due to a number of factors including the timing of tooling profits. The division has benefitted from further growth at its US medical business and the significant expansion of its Indian business.  These factors should deliver a stronger second half performance and a continuing growth in profitability for the division in respect of the full year.

In Precision Products, growth in Wipac's specialist LED supercar lighting business has been positive and we have continued to win new programmes. Profits are ahead of the prior year first half.  The withdrawal from the Ford business remains on course to be completed by the end of the financial year allowing Wipac to focus its resources on growth in LED lighting.  Our aerospace businesses have traded well and have returned to profit growth.

The Fine Line Technology project at Conductive Inkjet Technology has made significant progress and the Cambridge pilot line facility is now production ready.  The pace of sampling for smartphones and tablets has stepped up as our commercial partner has introduced the technology to the broader market. Production yields on larger format screens are encouraging. The next significant milestone is the commencement of volume production, which we expect in our fourth quarter.

The group's financial position remains strong.  The bank re-financing exercise is well under way, terms have been agreed and we expect to complete this process shortly.

The board remains confident in the outlook for the full year.

- ENDS -

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

Notes to editors

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

·      Two thirds of sales are 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.

·      A third of sales are derived from the supply of specialised precision products to the premium automotive and aerospace industries. Carclo is a leader in the development of high power LED lighting for supercars.

·      Carclo's strategy is to develop new technologies and products to drive future growth. Its investment in Conductive Inkjet Technology is at the heart of the newly emerging market for very low cost printed electronics.

 

END

 

 

TSTLFFVLIALRIIL