Carclo plc Trading Update (8202D)
October 12 2018 - 1:00AM
UK Regulatory
TIDMCAR
RNS Number : 8202D
Carclo plc
12 October 2018
Carclo plc ("the Group")
Trading update - full year expectations unchanged
Trading in the first half was below the Board's expectations due
to underperformance at Technical Plastics.
In Technical Plastics, three new medical programmes were delayed
by customers in the period but all entered production successfully
towards the end of the first half of the year and this, together
with planned new tooling programmes, support the expected stronger
second half performance. The implementation of our operational
improvement programme has delivered a number of price increases,
efficiency opportunities and cost savings across the division, the
benefit of which will positively impact margins in the second half
of the year and beyond.
In the LED Division, Wipac has continued to be successful in
winning new programmes, including nomination for two mid-volume
electric vehicles, leading to a healthy level of design and
development contract profits. Production demand has been solid. All
of the current year's planned new vehicle production programmes
launched in the first half and this resulted in higher than
anticipated manufacturing costs being incurred during launch.
Associated margins are expected to improve in the second half as
production accelerates and initial start-up inefficiencies are
eliminated.
The smaller Aerospace Division performed slightly ahead of
expectations as a result of higher margins and tight control over
costs.
The Board's expectations for the year ending 31 March 2019
remain unchanged, with results weighted towards the second half of
the year, as expected. This reflects the full effect of the new
programmes, expected customer timings on projects and the
anticipated improvement in margins at Wipac in addition to cost
saving initiatives, ramp up in production volumes and expected
higher design and tooling profits in Technical Plastics.
The Group will announce its interim results for the period ended
30 September 2018 on 13 November 2018.
For further information please contact:
Carclo plc
Chris Malley, Chief Executive
01924 268040
Sarah Matthews-DeMers, Group Finance Director
Peel Hunt LLP (Corporate broker)
Justin Jones 0207 418 8900
Sam Cann
Weber Shandwick Financial (Financial PR)
Nick Oborne 020 7067 0700
Notes to editors
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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