05 September 2024
Carclo plc
Trading Update
Carclo plc, the leading global provider of
high-precision components, offering comprehensive services from
mould design, automation and production to assembly and printing,
serving the life sciences, aerospace, optics and tech sectors,
provides the following trading update ahead of our
AGM.
Financial Performance
Our strategic focus on improving our balance
sheet, enhancing asset utilisation, prioritising margin over
volume, and maximising our global footprint continues to yield
positive results.
The Group's trading performance year to date
is in line with management's expectations. The US
manufacturing rationalisation and improvement programme is on
track. By focussing on cash management and leveraging stronger
trading, we have further improved our net debt to uEBITDA ratio.
This progress highlights our unwavering commitment to strengthening
our financial health across all operations.
Our expectations for the FY25 full year and
FY26 remain unchanged with margin expansion anticipated to continue
as the Group starts to see the full benefits of the operational
optimisation process, continuing our journey toward our strategic
goals of 10% return on sales and 25% return on capital
employed.
CTP Design &
Engineering
Our CTP Design & Engineering division
maintains its focus on asset revitalisation projects, which are
crucial for driving the next phase of operational improvements.
This strategic emphasis underlines our commitment to sustainably
enhancing overall company performance and meeting the evolving
needs of our clients. These efforts continue to strengthen Carclo's
leadership position in the sector, with a clear vision for
sustained, medium-term growth.
CTP US Manufacturing
Solutions
The restructuring of our US operations is
progressing ahead of schedule, as highlighted during our full-year
results presentation. We have successfully completed final
production runs in Tucson and are now fully focused on our
operational turnaround strategy at our centralised facility in
Pennsylvania.
New leadership teams in our specialised
production cells are beginning to drive important improvements in
asset utilisation and operational performance, which are leading to
the expected enhancement in margins. These proactive measures
position us well to address short-term challenges while keeping our
eyes on the medium to long-term strategic goals.
CTP EMEA Manufacturing
Solutions
Our CTP EMEA Manufacturing Solutions division
continues to build on its strong performance as we focus on the
next phase of operational improvement through material and process
optimisation. Following the new operational setup in EMEA, the
region has emerged even stronger, with lasting enhancements in
operational efficiency.
We have achieved an optimal balance of
efficiency and flexibility by establishing long-run operations in
the UK and medium-flexible runs at our facility in the Czech
Republic, which enables us to effectively meet the growing demands
of the EMEA market.
Speciality Division
We have now combined our Aerospace and Specialised
Optics businesses into our Speciality Division, dedicated to
providing customised solutions for niche markets. Both
sectors utilise a strong market position built on specialised
precision components, ongoing innovation, and exceptional customer
support. The Aerospace sector, in particular, has continued its
growth trajectory, showcasing the success of our strategic
initiatives and commitment to precision leadership. Our expanding
precision machining capabilities have enhanced our product
offerings, further strengthening Carclo's respected position in the
aerospace industry. These accomplishments reflect our steadfast
commitment to quality and innovation across all specialty
operations.
Further
details will be provided in our interim results for the six months
ending 30 September 2024, which will be released later this
year.
LEI: 21380078MEM399JPI956
Enquiries:
Carclo
plc
+44
(0) 20 8685 0500
Frank
Doorenbosch
Chief Executive Officer
Eric
Hutchinson
Chief Financial Officer
Forward-looking statements
Certain statements made in this
announcement are forward-looking statements. Such statements are
based on current expectations and are subject to a number of risks
and uncertainties that could cause outcomes to differ materially
from those expected.
