Carclo plc

Half Year Results

RNS Number : 8902S
Carclo plc
19 November 2021
 

Carclo plc

Interim Report and Accounts

Half Year Results for the six months ended 30 September 2021

 

Carclo plc, a global provider of value-adding engineered solutions for the medical, diagnostics, optical, electronics and aerospace industries, announces its results for the six months to 30 September 2021 ("H1 2022").

 

The key financial performance measures for H1 2022 are summarised below:

 

 

 

H1 2022

 

H1 2021

 

 

£000

£000

 

 

 

 

Revenue from continuing operations

 

58,672

49,950

 

 

 

 

Underlying(1) operating profit from continuing operations

3,682

1,529

Underlying(1) profit before tax from continuing operations

2,279

437

 

Underlying(1) earnings per share from continuing operations

2.5p

0.0p

 

 

 

 

Statutory operating profit from continuing operations

 

5,769

227

Statutory profit/(loss) before tax from continuing operations

 

4,366

(865)

Statutory profit/(loss) for the period

 

5,487

(1,321)

Basic earnings/(loss) per share

 

7.5p

(1.8p)

 

 

 

 

Net debt excluding lease liabilities

 

21,613

24,415

Net debt

 

28,371

29,358

 

 

 

 

Retirement benefit obligations

 

33,407

58,121

 

Revenue from continuing operations

 

 

Technical Plastics (CTP)

56,583

47,214

Aerospace

2,089

2,736

Total

58,672

49,950

 

 

 

Underlying operating profit from continuing operations (1)

 

Technical Plastics (CTP)

4,784

3,226

Aerospace

227

484

Central

(1,329)

(2,181)

Total 

3,682

1,529

 

 

 

Underlying EBITDA from continuing operations (1)

6,863

4,576

 

Highlights

 

· Strong trading momentum and operational execution throughout the period delivered significant growth in both revenues and underlying operating margins

· Total revenues of £58.7m, up 17.5% on the prior year (H1 2021: £50.0m)

Technical Plastics ("CTP") total revenues up 19.8% to £56.6m, tooling income up 48.2% to £9.1m, product sales up 15.6%

Higher tooling income reflects new business wins, further building the pipeline for future product sales growth

Aerospace revenue down £0.6m (23.6%) against a comparative period which benefited from the fulfilment of a strong pre-Covid order pipeline

· Underlying Operating Profit more than doubled to £3.7m (H1 2021: £1.5m) excluding the benefit of £2.1m of non-repeating US Covid grant income

· Statutory operating profit of £5.8m (H1 2021: £0.2m)

· Discontinued business income received of £0.7m from residual claims on LED Technologies business disposal (H1 2021: £nil)

· Net debt excluding lease liabilities at 30 September 2021 was £21.6m, a reduction of £2.8m compared to 30 September 2020.

· Net debt reduced by £1.0m to £28.4m (H1 2021: £29.4m), an increase of £0.8m in the six months to 30 September 2021, including £3.5m inventory increase mainly to protect materials availability against current supply chain uncertainties

· IAS19 Retirement Benefit liability down to £33.4m, reduced by £24.7m since September 2020 (and reduced by £3.9m since March 2021) from improved asset returns, additional employer contributions, and initiatives progressed with the Trustees

 

 

 

Notes:

(1)  underlying results are those calculated before discontinued operations, separately disclosed items and exceptional items. A reconciliation to statutory figures is set out below.

 

Reconciliation of non-GAAP financial measures - H1 2022

 

£m

Statutory

Exceptional items

Before exceptional

COVID-related US grant

Underlying

CTP operating profit

6,871

-

6,871

2,087

4,784

Aerospace operating profit

227

-

227

-

227

Central costs

(1,329)

-

(1,329)

-

(1,329)

Group operating profit from continuing operations

5,769

-

5,769

2,087

3,682

Net finance expense

(1,403)

-

(1,403)

-

(1,403)

Group profit before taxation

4,366

-

4,366

2,087

2,279

Taxation credit / (expense)

428

893

(465)

-

(465)

Group profit for the period from continuing operations

4,794

-

3,901

2,087

1,814

Profit on discontinued operations, net of tax

693

693

-

-

-

Group profit for the period

5,487

1,596

3,901

2,087

1,814

Basic earnings per share (pence)

7.5p

2.2p

5.3p

2.8p

2.5p

 

 

Commenting on the results, Nick Sanders, Executive Chairman, said:

 

"The Group continued to make good progress in the first half of the financial year. In common with many companies, we experienced significant Covid-related operational headwinds, but despite these delivered a strong set of financial results. Our first half performance is ahead of our expectations even after the impact of one-off benefits is removed.

 

Our primary focus has been to continue to ensure our employees and communities remain safe, whilst increasing output in line with customer demand. This has been achieved despite the continuing effect of mandatory lockdowns and production restrictions in some countries.

 

Demand for CTP products in the medical and diagnostic sectors has continued to increase from both existing and new customers and we expect this will continue in the post-pandemic period. Labour shortages and increased labour costs, particularly in the US, increased raw material costs and extended logistic lead times have all presented significant challenges in the first half. We have responded by implementing a range of measures and have been able to mitigate some of the impact of cost pressures by increasing prices.

 

While maintaining our usual high level of delivery performance has been difficult in recent months, and this situation will take some months yet to fully recover, we nevertheless have been able to strengthen our customer and supply chain relationships in working through these challenges together.

 

Encouragingly, our CTP businesses in Asia have performed strongly in line with our strategy to grow more rapidly outside of our traditionally strong US and European markets.

 

We have also benefited from strong demand for tooling with significant orders received for both replacement and new projects. Tooling orders are generally a precursor to production orders which provides us with optimism about future demand.

 

Our Aerospace division is also showing the early signs of recovery with order intake in the first half exceeding sales. A number of new contracts with existing and some new customers have also been secured. It will however take some time for these orders to feed through into sales and profit.

 

Central costs have been well managed, and our continued focus of cash management has again delivered good cash headroom and reduced bank debt.  The Group has also worked closely with the Pension Trustees to develop enhancements to the pension schemes which improve scheme benefits and reduce the overall deficit.

 

Subject to there being no significant deterioration in trading conditions as a result of supply chain or Covid-related disruption, the Board expects the positive commercial momentum seen in the first half to continue, with further product sales growth in H2. Trading margins for the second half are expected to be slightly lower than H1, reflecting the current higher cost environment. Nevertheless, the Board currently anticipates full year underlying trading will be slightly ahead of expectations, with the one-off benefits of the Covid-related grant income and contribution from discontinued operations incremental to this.

 

Enquiries

Carclo plc    Nick Sanders - Executive Chairman    01924 268040

FTI Consulting                                       Nick Hasell / Susanne Yule  020 3727 1340

 

Forward looking statements

Certain statements made in these report & accounts are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events to differ materially from any expected future events or results referred to in these forward-looking statements.

 

Alternative performance measures

The alternative performance measures are defined in the financial review of the Annual Report and Accounts (ARA) for the year ended 31 March 2021, with a reconciliation to statutory figures included in this Half Year Report to aid the user of these accounts. The Directors believe that alternative performance measures provide a more useful comparison of business trends and performance. The term 'underlying' is not defined under IFRS and may not be comparable with similarly titled measures used by other companies. Operating profit before exceptional items is not referred to in the ARA for the year ended 31 March 2021.

 

 

Overview of Results

The Group delivered a strong trading performance in H1 2022, ahead of the Board's expectations, making progress over the prior year period on all the listed key performance measures. This was achieved despite continuing Covid-related headwinds on the Carclo supply chain, in common with many international businesses.

Comparing all results with H1 2021, Group revenues rose 17.5% to £58.7m (H1 2021: £50.0m).

Technical Plastics ("CTP") revenues rose 19.8% to £56.6m (H1 2021: £47.2m), including a 15.6% increase in product sales to £47.5m (H1 2021: £41.1m) and a 48.2% increase in tooling income to £9.1m (H1 2021: £6.1m).

The higher proportion of new and existing business converted into tooling income in the period will also help drive on subsequent product sales.

CTP underlying operating profit rose by 48.3% to £4.8m (H1 2021: £3.2m) as a result of improved tooling and product sales, with an additional £2.1m recognised in respect of a Covid-related US government loan which was forgiven and converted into grant income in H1 2022. All other Covid-related costs and credits are also included in operating profit. Other non-US Covid-related credits amounted to £0.1m in the period.

As anticipated, Aerospace revenue of £2.1m was down £0.6m on the previous period which benefited from a high pre-Covid order pipeline. Whilst the aerospace industry remains heavily impacted by the pandemic, the division continued to be profitable with £0.2m delivered in the period, a reduction of £0.3m. Encouragingly, the division is already seeing orders recover. These have been tracking ahead of revenues for the Aerospace business over recent months and will gradually benefit sales as the orders convert. 

On a constant currency basis revenue from continuing operations increased by 23.3%, and underlying operating profit by 149.7%.

Central costs have been well managed, and our continued focus on cash management has again delivered good cash headroom and helped reduce net bank debt to £21.6m (H1 2021: £24.4m). Central costs including pension administration costs reduced from £2.2m to £1.3m and finance costs increased from £1.1m to £1.4m. Finance costs comprise net interest payable on bank loans and leases of £1.0m (H1 2021: £0.7m) including bank commitment fees, and net interest on the defined benefit pension liability of £0.4m (H1 2021: £0.4m).

There were no exceptional costs recognised in the period (H1 2021: £1.3m). The Board concluded that Covid-related costs and credits, given the indeterminate nature of evaluating the additional costs, should all be included within operating costs.

A further residual £0.7m was received following final distribution by administrators of the discontinued LED business exited in December 2019, with the income being shown separately from continuing operations.

The Group statutory profit before tax was £4.4m (H1 2021: loss (£0.9m)).
 

Taxation was a credit of £0.4m against a statutory profit before tax of £4.4m, giving an effective tax credit rate of 8.5% (H1 2021: tax expense £0.5m giving a 52.7% effective tax rate on a pre-tax loss of £0.9m). The result includes a £0.9m credit from renewed deferred tax asset recognition from UK combined businesses which have returned to forecasting taxable profits, providing available tax losses to be set off against future profits. The underlying effective tax rate, after excluding the deferred tax credit of £0.9 million, amounts to 20.4% of underlying profit before tax (H1 2021: 104.3%).

 

Underlying earnings per share from continuing operations for H1 2022 was 2.5 pence (H1 2021: 0.0 pence). The statutory earnings per share for the period, for all operations, was 7.5 pence (H1 2021: loss of 1.8 pence).

Board changes

As reported in our Full Year Results on 30 June 2021, Peter Slabbert and David Toohey stepped down from the Board as Non-Executive Directors on 31 March 2021 and 30 April 2021 respectively.

Eric Hutchinson and Frank Doorenbosch were appointed to the Board as Non-Executive Directors on 7 January 2021 and 1 February 2021 respectively.  Eric became Chair of the Audit Committee in March 2021, taking over from Peter Slabbert. Frank took over as Chair of the Remuneration Committee in April 2021 following David Toohey's departure.

 

Financial Position

Cash generated from continuing operations during the first half was £2.0m (H1 2021: £0.6m), including increased cash payments (net of administration costs) into the pension scheme of £1.8m (H1 2021: £1.0m) and a net working capital increase of £3.3m (H1 2021: £2.3m), of which £3.5m related to inventory increases mainly to protect operations amidst post-Covid supply chain disruption.

Gross cash capital expenditure for the period was £3.5m (H1 2021: £0.8m).

As a result, net debt excluding lease liabilities reduced by £2.8m to £21.6m (H1 2021: £24.4m), and net debt reduced by £1.0m to £28.4m compared to 30 September 2021.

At 30 September 2021, the Group's total UK bank facilities were £33.6m of which £30.1m related to a term loan and £3.5m to a revolving credit facility.

No additional government COVID-19 support was received in cash during the period (H1 2021: £3.9m of which £2.6m was presented within interest bearing loans and borrowings).

The Group's IAS 19 pension deficit reduced to £33.4m as at 30 September 2021 (30 September 2020: £58.1m and 31 March 2021: £37.3m) on additional contributions made by the Group, backed by improved asset returns and initiatives progressed with the Trustees. No change was made in the discount rate assumption of 2.0% since March 2021 and no changes were made at this stage in the mortality assessments. No initial data has yet been released on the triennial actuarial valuation of March 2021. Relevant data here will be taken into account to the extent that it is available for IAS19 valuation purposes at the end of the financial year.

In accordance with the recovery plan agreed by the Pensions Regulator and pension scheme trustees, total contributions paid by the Company (for deficit recovery contributions and scheme administration costs) for the six-month period were £2.1m (H1 2021: £1.1m). Total contributions for the six-month period to 31 March 2022 are expected to be £1.8m.

Dividend
Under the terms of its financing agreements the Company is not permitted to make a dividend payment to shareholders up to the period ending in July 2023.

Outlook

Subject to there being no significant deterioration in trading conditions as a result of supply chain or Covid-related disruption, the Board expects the positive commercial momentum seen in the first half to continue, with further product sales growth in H2. Trading margins for the second half are expected to be slightly lower than H1, reflecting the current higher cost environment. Nevertheless, the Board currently anticipates full year underlying trading will be slightly ahead of expectations, with the one-off benefits of the Covid-related grant income and contribution from discontinued operations incremental to this.

Principal Risks and Uncertainties

In the Annual Report for the year ended 31 March 2021 a detailed review of the principal risks faced by the Group, and how these risks were being managed, was provided. We continue to face, and proactively manage, the risks and uncertainties in our business and, whilst the Board considers that these principal risks and uncertainties have not materially changed since the publication of the 2021 Annual Report, it is worth noting that:

· COVID-19 related uncertainty continues as to the impact on the Group's markets and geographies evolving over time. It is possible that the Group's operations, its supply chains and customer demand could continue to be further impacted, particularly in the US, where labour and material shortage experience has been most acute;

· the impact of Brexit has to some extent become intertwined with post-Covid impact on labour and materials resource shortages in the supply chain and as such is seen as a lesser but contributory factor in the COVID-19 risks identified above; and

· during the current period significant new tooling agreements have been either entered into or progressed with new and existing customers.  These agreements and pending subsequent agreements for the supply of manufactured product are subject to operational execution risk.

Going Concern

These interim financial statements have been prepared on a going concern basis as detailed in Note 1 to these interim accounts.  While headroom against banking covenants has increased significantly over the last 6 months, it should continue to be noted that any material manifestation of the above risks, individually or in combination, could lead to a breach of the Group's banking covenants.  Management has considered the impact of potential mitigations including improved trading, cost saving and working capital management initiatives, as well as compensation from customers in respect of delays and it considers that the potential benefits from these give sufficient comfort that the downside risks can be mitigated. If it were not possible to mitigate a potential breach the bank would be approached to request that it considers issuing a waiver for any covenant that may be breached.

Responsibility Statement

We confirm to the best of our knowledge:

(a)  the condensed consolidated set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting;

(b)  the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

(c)  the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

 

By order of the Board,

Nick Sanders  Phil White 
Executive Chairman       Chief Financial Officer
 

18 November 2021

 

Glossary of Terms

CONSTANT CURRENCY

Retranslated at the prior half-year's average exchange rate. Included to explain the effect of changing exchange rates during volatile times to assist the reader's understanding

GROUP CAPITAL EXPENDITURE

Non-current asset additions

NET BANK INTEREST

Interest receivable on cash at bank less interest payable on bank loans and overdrafts. Reported in this manner due to the global nature of the Group and its banking agreements

NET DEBT

Cash and cash deposits less loans and borrowings. Used to report the overall financial debt of the Group in a manner that is easy to understand

NET DEBT EXCLUDING LEASE LIABILITIES

Net debt, as defined above, excluding lease liabilities.  Used to report the overall non-leasing debt of the Group in a manner that is easy to understand

EBITDA

Profit before interest, tax, depreciation and amortisation adjusted to exclude all exceptional and separately disclosed items

UNDERLYING

Adjusted to exclude all exceptional and separately disclosed items

UNDERLYING EBITDA

Profit before interest, tax, depreciation and amortisation adjusted to exclude all exceptional and separately disclosed items

UNDERLYING EARNINGS PER SHARE

Earnings per share adjusted to exclude all exceptional and separately disclosed items

UNDERLYING OPERATING PROFIT

Operating profit adjusted to exclude all exceptional and separately disclosed items

UNDERLYING PROFIT BEFORE TAX

Profit before tax adjusted to exclude all exceptional and separately disclosed items

OPERATING PROFIT BEFORE EXCEPTIONAL ITEMS

Statutory operating profit adjusted to exclude all exceptional items

 

 

Condensed consolidated income statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

Six months ended

 

Year ended

 

 

 

 

 

 

 

 

 

 

 

 

 

30 September

 

30 September

31 March

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

2020

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

unaudited

 

unaudited

 

audited

 

 

 

 

 

 

 

 

 

 

 

Notes

 

£000

 

£000

 

£000

 

Continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

4

 

58,672

 

49,950

 

107,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying operating profit

 

 

 

 

 

 

 

 

 

3,682

 

1,529

 

4,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID related US government grant income

 

 

 

 

7

 

2,087

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit before exceptional items

 

 

 

 

 

5,769

 

1,529

 

4,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exceptional items

 

 

 

 

 

 

 

 

6

 

-

 

(1,302)

 

4,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

 

 

 

 

 

 

 

4

 

5,769

 

227

 

9,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance revenue

 

 

 

 

 

 

 

 

8

 

34

 

57

 

42

 

Finance expense

 

 

 

 

 

 

 

 

8

 

(1,437)

 

(1,149)

 

(2,701)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit / (loss) before tax

 

 

 

 

 

 

 

 

 

4,366

 

(865)

 

6,671

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax credit / (expense)

 

 

 

 

 

 

 

9

 

428

 

(456)

 

(457)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit / (loss) after tax but before profit on discontinued operations

 

 

 

 

 

 

 

 

4,794

 

(1,321)

 

6,214

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit on discontinued operations, net of tax

 

6

 

693

 

-

 

1,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit / (loss) for the period

 

 

 

 

 

 

 

 

 

5,487

 

(1,321)

 

7,412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity holders of the parent company

 

 

 

 

 

5,487

 

(1,321)

 

7,412

 

Non-controlling interests

 

 

 

 

 

 

 

 

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

5,487

 

(1,321)

 

7,412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings / (loss) per ordinary share

 

 

 

 

 

 

10

 

 

 

 

 

 

 

  Basic - continuing operations

 

 

 

6.5

p

(1.8)

p

8.5 p

 

  Basic - discontinued operations

 

 

 

 

 

 

 

 

0.9

p

-

p

1.6 p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Basic

 

 

 

 

 

 

 

 

 

 

7.5

p

(1.8)

p

10.1 p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Diluted - continuing operations

 

 

 

 

 

 

 

 

6.5

p

(1.8)

p

8.5 p

 

  Diluted - discontinued operations

 

 

 

 

 

 

 

 

0.9

p

-

p

1.6 p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Diluted

 

 

 

 

 

 

 

 

 

 

7.5

p

(1.8)

p

10.1 p

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed consolidated statement of comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

Six months ended

 

Year ended

 

 

 

 

 

 

 

 

 

 

 

 

 

30 September

 

30 September

31 March

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

2020

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

unaudited

 

unaudited

 

audited

 

 

 

 

 

 

 

 

 

 

 

 

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit / (loss) for the period

 

 

 

 

 

 

 

 

 

5,487

 

(1,321)

 

7,412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income / (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that will not be reclassified to the income statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurement gains / (losses) on defined benefit scheme

 

 

 

 

 

2,730

 

(20,714)

 

(6,540)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total items that will not be reclassified to the income statement

 

2,730

 

(20,714)

 

(6,540)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that will or may in the future be classified to the income statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange translation differences

 

 

 

913

 

(79)

 

(2,939)

 

Net investment hedge

 

 

 

 

 

 

 

 

 

 

(205)

 

(18)

 

1,084

 

Deferred tax arising

 

 

 

 

 

 

 

 

 

 

236

 

57

 

137

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total items that will or may in future be classified to the income statement

 

944

 

(40)

 

(1,718)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income / (expense), net of income tax

 

 

 

3,674

 

(20,754)

 

(8,258)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income / (expense) for the period

 

 

 

 

9,161

 

(22,075)

 

(846)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity holders of the Company

 

 

 

 

9,161

 

(22,075)

 

(846)

 

Non-controlling interests

 

 

 

 

 

 

 

 

 

-

 

-

 

-

 

Total comprehensive income / (expense) for the period

 

 

 

 

 

 

9,161

 

(22,075)

 

(846)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed consolidated statement of financial position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 September

 

30 September

31 March

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

2020

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

unaudited

 

unaudited

 

audited

 

 

 

 

 

 

 

 

 

 

 

Notes

 

£000

 

£000

 

£000

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets

 

 

 

 

 

 

 

 

12

 

22,214

 

22,863

 

21,848

 

Property, plant and equipment

 

 

 

13

 

43,632

 

40,127

 

43,218

 

Deferred tax assets

 

 

 

 

 

 

 

 

 

 

1,500

 

338

 

384

 

Trade and other receivables

 

 

 

 

 

 

 

 

 

114

 

116

 

112

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-current assets

 

 

 

 

 

 

 

 

 

67,460

 

63,444

 

65,562

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

 

 

 

 

 

 

 

 

16,355

 

13,968

 

12,821

 

Contract assets

 

 

 

 

 

 

 

 

 

 

6,131

 

3,519

 

2,898

 

Trade and other receivables

 

 

 

 

 

 

 

 

 

23,172

 

19,665

 

19,254

 

Cash and cash deposits

 

 

 

 

16

 

10,394

 

23,379

 

15,485

 

Current tax assets

 

 

 

 

 

 

 

 

 

 

538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 

 

 

 

 

 

 

 

 

56,590

 

60,531

 

50,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

 

 

 

 

124,050

 

123,975

 

116,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and borrowings

 

 

 

 

 

 

17

 

36,014

 

38,738

 

37,997

 

Deferred tax liabilities

 

 

 

 

 

 

 

 

 

 

4,577

 

4,315

 

4,393

 

Contract liabilities

 

 

 

 

 

 

 

 

 

 

 

426

 

866

 

Retirement benefit obligations

 

 

 

14

 

33,407

 

58,121

 

37,275

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-current liabilities

 

 

 

 

 

 

 

 

 

73,998

 

101,600

 

80,531

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and borrowings

 

 

 

 

 

 

17

 

2,751

 

13,999

 

5,084

 

Trade and other payables

 

 

 

 

 

 

 

 

 

21,022

 

17,174

 

17,016

 

Current tax liabilities

 

 

 

 

 

 

 

 

 

 

534

 

558

 

17

 

Contract liabilities

 

 

 

 

 

 

 

 

 

 

8,654

 

3,877

 

5,461

 

Provisions

 

 

 

 

 

 

 

 

 

 

 

18

 

 

Total current liabilities

 

 

 

 

 

 

32,961

 

35,626

 

27,578

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 

 

 

 

 

 

 

 

106,959

 

137,226

 

108,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets / (liabilities)

 

 

 

 

 

 

17,091

 

(13,251)

 

7,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary share capital issued

 

 

 

 

 

 

19

 

3,671

 

3,671

 

3,671

 

Share premium

 

 

 

 

 

 

 

 

 

 

7,359

 

7,359

 

7,359

 

Translation reserve

 

 

 

 

 

 

 

 

 

 

6,277

 

7,011

 

5,333

 

Retained earnings

 

 

 

 

 

 

 

 

 

 

(190)

 

(31,266)

 

(8,426)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity attributable to equity holders of the Company

 

 

 

 

17,117

 

(13,225)

 

7,937

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

(26)

 

(26)

 

(26)

 

Total equity

 

 

 

 

 

 

 

 

 

 

17,091

 

(13,251)

 

  7,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed consolidated statement of changes in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Attributable to equity holders of the Company

 

 

 

 

 

 

 

 

 

Share

Share

Translation

Retained

 

 

 

Non-controlling

 

Total

 

 

 

 

 

capital

premium

reserve

earnings

 

Total

 

interests

 

equity

 

 

 

 

 

£000

 

£000

 

£000

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current half year period unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 April 2021

3,671

 

7,359

 

5,333

 

(8,426)

 

7,937

 

(26)

 

7,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

 

 

5,487

 

5,487

 

 

5,487

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange translation differences

 

 

913

 

 

913

 

 

913

 

 

Net investment hedge

 

 

 

(205)

 

 

(205)

 

 

(205)

 

 

Remeasurement gains on defined benefit scheme

 

 

 

2,730

 

2,730

 

 

2,730

 

 

Taxation on items above

 

 

236

 

 

236

 

 

236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

944

 

8,217

 

9,161

 

 

9,161

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners recorded directly in equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share based payments

 

 

 

 

19

 

19

 

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 September 2021

3,671

 

7,359

 

6,277

 

(190)

 

17,117

 

(26)

 

17,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior half year period unaudited

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 April 2020

3,671

 

7,359

 

7,051

 

(9,324)

 

8,757

 

(26)

 

8,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

 

 

 

 

(1,321)

 

(1,321)

 

 

(1,321)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange translation differences

 

 

(79)

 

 

(79)

 

 

(79)

 

 

Net investment hedge

 

 

 

(18)

 

 

(18)

 

 

(18)

 

 

Remeasurement losses on defined benefit scheme

 

 

 

(20,714)

 

(20,714)

 

 

(20,714)

 

 

Taxation on items above

 

 

 

57

 

 

57

 

 

57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss for the period

 

 

(40)

 

(22,035)

 

(22,075)

 

 

(22,075)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners recorded directly in equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share based payments

 

 

 

 

93

 

93

 

 

93

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 September 2020

3,671

 

7,359

 

7,011

 

(31,266)

 

(13,225)

 

(26)

 

(13,251)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to equity holders of the Company

 

 

 

 

 

 

 

 

Share

Share

Translation

Retained

 

 

 

Non-controlling

 

Total

 

 

 

capital

premium

reserve

earnings

 

Total

 

interests

 

equity

 

 

 

  £000

  £000

  £000

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior year - audited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 April 2020

3,671

 

7,359

 

7,051

 

(9,324)

 

8,757

 

(26)

 

8,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the year

 

 

 

 

7,412

 

7,412

 

 

7,412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive (loss) / income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange translation differences

 

 

(2,939)

 

 

(2,939)

 

 

(2,939)

 

Net investment hedge

 

 

 

1,084

 

 

1,084

 

 

1,084

 

Remeasurement losses on defined benefit scheme

 

 

 

(6,540)

 

(6,540)

 

 

(6,540)

 

Taxation on items above

 

 

137

 

 

137

 

 

137

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive (loss) / income for the period

 

 

(1,718)

 

872

 

(846)

 

 

(846)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners recorded directly in equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Share based payments

 

 

 

 

26

 

26

 

 

26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 March 2021

3,671

 

7,359

 

5,333

 

(8,426)

 

7,937

 

(26)

 

7,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed consolidated statement of cash flows

 

 

 

 

 

 

 

 

                                                                                                                         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

Six months ended

 

Year ended

 

 

 

 

 

 

 

 

 

 

 

 

30 September

 

30 September

 

31 March

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

2020

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

unaudited

 

unaudited

 

audited

 

 

 

 

 

 

 

 

 

 

Notes

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash generated from operations

 

 

 

 

 

 

15

 

2,020

 

570

 

11,202

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

 

 

 

 

 

 

 

 

 

(983)

 

(725)

 

(1,782)

Tax paid

 

 

 

 

 

 

 

 

 

 

(486)

 

(342)

 

(1,023)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash from / (used in) operating activities

 

 

 

551

 

(497)

 

8,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of business, net of cash disposed

 

 

 

 

 

693

 

 

1,250

Proceeds from sale of property, plant and equipment

 

 

 

 

 

25

 

 

21

Interest received

 

 

 

 

 

 

 

 

 

 

34

 

57

 

42

Purchase of property, plant and equipment

 

 

 

 

 

(3,514)

 

(730)

 

(7,180)

Purchase of intangible assets - computer software

 

 

 

(15)

 

(80)

 

(139)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

 

 

 

 

 

 

 

(2,777)

 

(753)

 

(6,006)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

Drawings on new facilities

 

 

 

 

 

 

 

 

 

 

32,221

 

36,454

Transaction costs associated with the issue of debt

 

 

 

 

 

 

 

(380)

Repayment of borrowings excluding lease liabilities

 

 

 

 

 

(2,247)

 

(28,147)

 

(31,666)

Receipt of government support loans

 

 

 

 

 

 

7

 

 

2,589

 

2,243

Repayment of lease liabilities

 

 

 

 

 

 

 

 

 

(866)

 

(905)

 

(1,601)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash (used in) / from financing activities

 

 

 

(3,113)

 

5,758

 

5,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (decrease) / increase in cash and cash equivalents

 

 

 

 

 

(5,339)

 

4,508

 

7,441

Cash and cash equivalents at beginning of period

 

 

 

 

 

15,485

 

8,352

 

8,352

Effect of exchange rate fluctuations on cash held

 

 

 

 

248

 

(153)

 

(308)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

 

16

 

10,394

 

12,707

 

15,485

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes to the accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

Basis of preparation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The condensed consolidated half year report for Carclo plc ("Carclo" or "the Group") for the six months ended 30 September 2021 has been prepared on the basis of the accounting policies set out in the audited accounts for the year ended 31 March 2021 and in accordance with the Disclosure and Transparency Rules of the UK Financial Conduct Authority and the requirements of UK adopted International Accounting Standard 34, "Interim Financial Reporting".

 

 

 

The financial information is unaudited.

 

 

 

 

 

 

 

 

 

 

 

 

The half year report does not constitute financial statements and does not include all the information and disclosures required for full annual statements. It should be read in conjunction with the annual report and financial statements for the year ended 31 March 2021 which is available either on request from the Company's registered office, Unit 5, Silkwood Court, Ossett, WF5 9TP, or can be downloaded from the corporate website - www.carclo-plc.com.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The comparative figures for the financial year ended 31 March 2021 are not the Company's complete statutory accounts for that financial year.  Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies.  The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain statements under Section 498 (2) of the Companies Act 2006.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The half year report was approved by the Board of Directors on 18 November 2021.  Copies are available from the corporate website.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Group financial statements for the year ended 31 March 2021 were prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union ("Adopted IFRSs").

 

 

 

 

Going concern

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The interim financial statements are prepared on the going concern basis.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Directors have reviewed cash flow and covenant forecasts to cover the twelve-month period from the date of the approval of these condensed interim financial statements considering the Group's available debt facilities and the terms of the arrangements with the Group's bank and the Group pension scheme which were disclosed in Note 1, Basis of Preparation - Going Concern, to the Group's consolidated financial statements for the year ended 31 March 2021.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net debt at 30 September 2021 was £28.4 million, rising from £27.6 million at 31 March 2021 (30 September 2020: £29.4 million) and is forecast to increase over the twelve-month period driven by capital investment and net working capital outflows to support business growth. The Group's financing remains within banking covenants as at 30 September 2021 and the base case forecasts demonstrate that the Group has more than sufficient liquidity and covenant headroom throughout the forecast period.

 

 

 

COVID-19 related uncertainty and the resulting supply chain disruption and cost increases continue to impact the Group's markets and geographies and the situation is evolving over time. It is possible that the Group's operations, its supply chains and customer demand could continue to be further impacted, particularly in the US, where labour and material shortage experience has been most acute.  Any material manifestation of these or other uncertainties could lead to a breach of the Group's banking covenants.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Directors have reviewed sensitivity testing modelling a range of severe downside scenarios.  These sensitivities attempt to incorporate identified risks set out in the Principal Risks and Uncertainties section of this report.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severe downside sensitivities modelled included a range of scenarios modelling the financial effects of loss of business from: discrete sites, an overall fall in gross margin of 1% across the Group, a fall in Group sales of 5% matched by a corresponding fall in cost of sales of the same amount, exchange risk and interest rate risk.  These sensitivities attempt to incorporate the risks arising from national and regional impacts of the global pandemic from local lockdowns, impacts on manufacturing and supply chain and other potential increases to direct and indirect costs.  The Group has the capacity to take mitigating actions to ensure that the Group remains financially viable, including further reducing operating expenditures as necessary.

 

 

 

On this basis, the Directors have determined that it is reasonable to assume that the Group will continue to operate within the facilities available to it and that it will adhere to the covenant tests to which it is subject throughout the twelve-month period from the date of signing these condensed interim financial statements.  As such the Directors have adopted the Going Concern assumption in preparing these interim financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.

Accounting policies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accounting policies applied in these interim financial statements are the same as those applied in the Group's consolidated financial statements as at, and for the year ended 31 March 2021.  Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for the Group's accounting period beginning on 1 April 2021 but they are not expected to have a material effect on the Group's financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.

Accounting estimates and judgements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The preparation of the interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. In preparing these half year financial statements, the significant judgements made by management in applying the Group's accounting policies and the key source of estimation uncertainty were the same as those applied to the audited consolidated financial statements as at, and for the year ended, 31 March 2021 except for the following -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government grants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key judgement

 

At 31 March 2021 management made a key judgement that there was insufficient certainty as to whether conditions attached to the $2.9 million of government loans in support of COVID-19 interruption had been met and therefore the proceeds were presented as loans and borrowings in the consolidated statement of financial position and no associated government grant income was recognised during that period.  On 5 May 2021 the Group received confirmation of forgiveness of the loan by the US Small Business Administration, resulting in its conversion from a loan to a grant.

 

Confirmation of forgiveness provides certainty that all conditions attached to the loan have been met.  As such, the full £2.1 million ($2.9 million) was recognised as income in May 2021.

 

 

 

Recognition of deferred tax assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key judgement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management have exercised judgement over the level of future taxable profits in the UK against which to relieve the Group's deferred tax assets.  On this basis management believe it is appropriate to recognise deferred tax assets and at 30 September 2021 UK deferred tax assets of £0.9 million have been recognised (31 March 2021: £nil).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key judgement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management have exercised judgement to determine that there are no indicators of impairment for intangible assets at 30 September 2021.

                                                     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.

Segment reporting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Group is organised into three, separately managed, business segments - Technical Plastics, Aerospace and Central.  These are the segments for which summarised management information is presented to the Group's chief operating decision maker (being the Group Executive Committee).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Technical Plastics segment supplies fine tolerance, injection moulded plastic components, which are used in medical, diagnostics, optical and electronic products. This business operates internationally in a fast growing and dynamic market underpinned by rapid technological development.

 

 

The Aerospace segment supplies systems to the manufacturing and aerospace industries.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Central segment relates to central costs and non-trading companies.

 

 

The LED Technologies segment presented as a discontinued operation was a leader in the development of high-power LED lighting for the premium automotive industry and was disposed of in the year to 31 March 2020 - see note 5.

 

 

Transfer pricing between business segments is set on an arm's length basis. Segmental revenues and results shown below are after the elimination of transfers between business segments.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Technical

 

 

 

Total

 

 

 

 

 

 

 

 

Plastics

Aerospace

Central

(continuing

 

Discontinued

 

Group

 

 

 

 

 

(continuing)

(continuing)

(continuing)

operations)

 

operations

 

total

 

 

 

 

 

 

 

£000

 

£000

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The segment results for the six months ended 30 September 2021 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated income statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Total external revenue

56,583

 

2,089

 

 

58,672

 

 

58,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Expenses

 

 

 

(51,799)

 

(1,862)

 

(1,329)

 

(54,990)

 

(54,990)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying operating profit / (loss)

4,784

 

227

 

(1,329)

 

3,682

 

 

3,682

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID related US government  grant income

2,087

 

 

 

2,087

 

 

2,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Operating profit / (loss) before exceptional items

 

6,871

 

227

 

(1,329)

 

5,769

 

 

5,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Exceptional operating items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Operating profit / (loss)

6,871

227

 

(1,329)

 

5,769

 

5,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Net finance expense

 

 

 

 

 

 

 

 

 

(1,403)

 

 

(1,403)

 

  Income tax credit

 

 

 

 

 

 

 

 

 

428

 

 

428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Profit from operating activities after tax

 

 

 

 

 

4,794

 

4,794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Profit on disposal of discontinued operations, net of tax - see note 5

 

 

 

 

693

 

693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Profit for the period

 

 

 

 

 

 

 

 

4,794

693

 

5,487

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Technical

 

 

 

 

 

Total

 

 

 

 

 

 

 

Plastics

Aerospace

Central

(continuing

 

Discontinued

 

Group

 

 

 

(continuing)

(continuing)

(continuing)

operations)

 

operations

 

total

 

 

 

 

£000

 

£000

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated statement of financial position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Segment assets

 

117,433

 

6,107

 

510

 

124,050

 

-

 

124,050

 

  Segment liabilities

 

 

(38,973)

 

(751)

 

(67,235)

 

(106,959)

 

-

(106,959)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets

 

 

 

 

 

78,460

5,356

 

(66,725)

 

17,091

 

17,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other segmental information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Depreciation

 

 

 

2950

 

114

 

19

 

3,083

 

 

3,083

 

  Amortisation

 

 

 

38

 

 

60

 

98

 

 

98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disaggregation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Major products/service lines

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Manufacturing

 

 

 

47,499

 

2,089

 

 

49,588

 

 

49,588

 

 

  Tooling

 

 

 

9,084

 

 

 

9,084

 

 

9,084

 

 

 

 

 

56,583

2,089

 

 

58,672

 

58,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products transferred at a point in time

47,499

 

2,089

 

 

49,588

 

 

49,588

 

Products and services transferred over time

9,084

 

 

 

9,084

 

 

9,084

 

 

 

 

 

56,583

2,089

 

 

58,672

 

58,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Technical

 

 

 

 

 

Group

 

 

 

 

 

 

 

 

 

 

 

Plastics

 

Aerospace

 

Central

 

total

 

 

 

 

 

 

 

 

 

 

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The segment results for the six months ended 30 September 2020 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated income statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Total external revenue

 

 

 

 

 

47,214

 

2,736

 

 

49,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Expenses

 

 

 

 

 

 

 

 

(43,988)

 

(2,252)

 

(2,181)

(48,421)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Underlying operating profit / (loss)

 

 

 

 

 

3,226

 

484

 

(2,181)

 

1,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Exceptional operating items

 

 

 

 

 

 

(74)

 

(13)

 

(1,216)

 

(1,302)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Operating profit / (loss)

 

 

 

 

 

 

3,152

 

471

(3,397)

 

227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Net finance expense

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,092)

 

 

  Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

(456)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Loss after tax

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,321)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated statement of financial position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Segment assets

 

 

 

 

 

 

104,160

 

6,492

 

13,323

 

123,975

 

 

  Segment liabilities

 

 

 

 

 

 

 

(30,191)

 

(1,049)

 

(105,986)

(137,226)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Net assets

 

 

 

 

 

 

 

 

73,969

 

5,443

(92,663)

(13,251)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other segmental information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Depreciation

 

 

 

 

 

 

 

 

2,755

 

133

 

15

 

2,903

 

 

  Amortisation

 

 

 

 

 

 

 

 

103

 

 

41

 

144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disaggregation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Major products/service lines

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Manufacturing

 

 

 

 

 

 

 

 

41,086

 

2,736

 

 

43,822

 

 

  Tooling

 

 

 

 

 

 

 

 

6,128

 

 

 

6,128

 

 

 

 

 

 

 

 

 

 

 

47,214

 

2,736

 

49,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products transferred at a point in time

 

 

 

 

41,086

 

2,736

 

 

43,822

 

 

Products and services transferred over time

 

 

 

 

6,128

 

 

 

6,128

 

 

 

 

 

 

 

 

 

 

 

47,214

 

2,736

 

49,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Technical

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

Plastics

Aerospace

Central

 

(continuing

 

Discontinued

 

Group

 

 

 

 

 

 

(continuing)

(continuing)

(continuing)

operations)

 

operations

 

total

 

 

 

 

 

 

 

£000

 

£000

 

£000

 

£000

 

£000

 

£000