Trading Statement
March 31 2003 - 1:00AM
UK Regulatory
RNS Number:3874J
Carclo plc
31 March 2003
31 March 2003
Carclo plc
Trading Update
The Board of Carclo plc ("Carclo" or the "Group") is pleased
to announce an update on trading, financing and the proposed
disposal of surplus property.
Our specialist wire businesses continue to show encouraging
progress and are performing in line with our expectations.
The automotive businesses have experienced reduced customer
schedules but trading is proving resilient.
Technical plastics has seen slower than expected demand in the
USA and UK principally from customers serving electronics and
office equipment markets. We have responded to this slow down
with a further reduction in UK capacity which has resulted in
increased operating exceptional costs in the year. We are
seeing a continuing strong flow of new contracts in Czech
Republic, China and in specialised markets such as medical
diagnostic equipment.
Progress on reducing the Group's debt position is ahead of
plan. We have taken the opportunity to repay the outstanding
balance of #11.7m in respect of the US Private Placement loan
notes at par and have agreed new medium term financing
facilities with our three principal bankers with less onerous
covenants. The repayment of the US Private Placement notes and
the associated refinancing will result in an exceptional
profit of approx #1.0m.
As part of the debt reduction initiatives, the Board is
pleased to announce that on 28 March 2003 it exchanged
contracts for the sale of surplus property in Huddersfield.
This property is currently vacant and was formerly occupied by
Joseph Sykes, a business sold by Carclo in September 2001.
Calderdale and Huddersfield National Health Service Trust has
agreed to buy the site for #6.4m, giving a profit on disposal
(before costs) of approximately #2.5m. Despite the transaction
only being a small percentage of the Group's asset base and
the property being non-core to Carclo's operations, the
transaction is likely to require shareholder approval. In this
case, a circular seeking shareholder approval will be
distributed as soon as practicable.
Enquiries:
Carclo plc
Ian Williamson, Chief Executive 01924 330500
Chris Mawe, Finance Director
Weber Shandwick Square Mile
Richard Hews / Susanne Walker 020 7067 0700
This information is provided by RNS
The company news service from the London Stock Exchange
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