Carclo plc AGM Trading Update (0390Q)
September 07 2017 - 1:00AM
UK Regulatory
TIDMCAR
RNS Number : 0390Q
Carclo plc
07 September 2017
7 September 2017
Carclo plc
("Carclo" or the "Group")
AGM Trading Update
The Board announces that overall the Group's trading performance
for the year ending 31 March 2018 remains in line with its
expectations, with an outperformance of the LED Technologies
division expected to offset the weaker than previously anticipated
performance of the Technical Plastics division.
Technical Plastics has had a challenging start to the financial
year with some key new programmes delayed into the second half and
some operational challenges, which have now been largely resolved.
Performance is now much improved and we expect this division to
have a considerably better second half of the year, in line with
our prior plans for that period. The new factory build in India and
the redevelopment of Mitcham are progressing according to plan and
the Chinese business is benefitting from further systems
validations with our main medical customer as well as very strong
new business opportunities.
LED Technologies is having an encouraging first half, performing
ahead of our expectations, with its Wipac business seeing good
product sales on its various supercar lighting programmes and
strong design, development and tooling activity. New business
activity has continued apace, and ahead of prior expectations.
Progress on the mid-volume programmes and the factory expansion at
Buckingham has continued to plan. Customer audits of our mid volume
programmes have confirmed that we are well advanced with
preparations for manufacturing and continuing to meet their high
expectations. Integration of our recent Czech acquisition has been
excellent and we are now starting to expand our technical teams in
this location, which has already enhanced our ability to win more
business.
The Aerospace division is expected to have stronger sales in the
second half of the financial year as some of our new programmes
move to serial production.
As anticipated, Group net debt will be higher at 30 September
2017 compared to 31 March 2017, primarily due to the timing of
capital investment and an increase in working capital due to the
investment and payment profile of ongoing design, development and
tooling programmes. Group net debt is then expected to decrease by
the year end.
Given the above, the Board anticipates that the Group's usually
stronger second half performance weighting will this year be more
pronounced, driven by an outperformance at LED Technologies and an
improved performance at Technical Plastics. The Board continues to
expect the Group to deliver results for the year as a whole in line
with its previous expectations and is confident that all divisions
are well placed to make strong progress thereafter.
The information contained within this announcement is deemed by
Carclo plc to constitute inside information as stipulated under the
Market Abuse Regulation. Upon the publication of this announcement
via a regulatory information service, this inside information is
now considered to be in the public domain.
- ENDS -
Enquiries:
Carclo plc 01924 268040
Chris Malley, Chief
Executive
Robert Brooksbank,
Finance Director
Peel Hunt LLP 0207 418 8900
Justin Jones
Matthew Brooke-Hitching
Weber Shandwick
Nick Oborne
Tom Jenkins 020 7067 0000
About Carclo
Carclo plc is a public company whose shares are quoted on the
Main Market of the London Stock Exchange.
Carclo's strategy is to develop and expand its key manufacturing
assets in markets where there remain significant further
opportunities to drive shareholder value. To enhance profit margins
and support its customers, the group has been investing across its
global footprint.
Approximately three fifths of Group revenues are generated from
the supply of fine tolerance, injection moulded plastic components,
mainly for medical products. The balance of Group revenue is
derived mainly from the design and supply of specialised injection
moulded LED based lighting systems to the premium automotive
industry.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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