Trading Statement

Carclo PLC 22 October 2001 22 October 2001 CARCLO plc Carclo Technical Plastics Reorganisation Carclo plc announces the completion of its review of UK manufacturing capacity following the demand reduction for telecom components. On 19 September we announced the closure of two businesses and action at a third, CTP Alan, to reduce its cost base. We have now completed consultations with the affected employees and can confirm that the reorganisation of CTP Alan will result in an exceptional charge of £1.3 million. In addition, we have concluded that the goodwill provisionally associated with this business is fully impaired and will result in a charge to the profit and loss account of some £6.0 million. Trading update On 3 December 2001 we will be announcing our interim results for the six months to 30 September 2001. We expect these to show operating profits from ongoing businesses of £3.9 million (2000: £6.0 million) before central costs of £0.6 million, exceptional items of £5.3 million and goodwill amortisation. The interest charge is expected to be around £1.6 million. We expect trading in the second half to remain challenging but the elimination of loss making activities achieved by this reorganisation puts the group in a good position to meet these challenges. In these uncertain times the Board of Carclo remains committed to taking early action to control costs and preserve cash to ensure that our core businesses have the resources to grow and prosper. Accordingly, the Board is now reviewing the appropriateness of maintaining the interim dividend at last year's level of 3.44p per share. - End - For further information please contact: Carclo plc Ian Williamson, Chief Executive 01924 330 500 Chris Mawe, Finance Director Golin/Harris Ludgate Richard Hews/Trish Featherstone 0207 324 8888

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Carclo (CAR)
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