Carclo plc
05 April 2007
For immediate release 5 April 2007
Carclo plc
('Carclo')
Trading Update
Operating review
After a period of major transition for Carclo, it is pleasing to report a year
of stable trading and increased margins in our core Technical Plastics business.
The board anticipates that trading for the year ended 31 March 2007 will be in
line with its expectations.
Carclo Technical Plastics delivered an improved profit with sales increasing
towards the end of the financial year. We continue to benefit from growth in our
global medical business and from cost reductions in the UK operations. The
resulting improvement in margins, together with the group's global manufacturing
flexibility, provides a good base for further progress in the new financial
year.
Carclo Precision Products has had a better second half, as expected, and there
has been an encouraging recent upturn in the level of enquiries for new
automotive specialist lighting products.
Innovation
The group continues to invest in new technologies. We have further increased our
investment in Conductive Inkjet Technology ('CIT') which has been successful in
commercialising its innovative printing technologies. The first installation of
a MetalJet 5000 was made in our Slough facility where a range of security
sensors will be produced. The second system, a MetalJet 4000, has been sold into
the aerospace industry for use in the production of shielding materials. In
addition, our work on photovoltaics has progressed well and we have now taken an
order for a MetalJet 2000 pilot system from one of Europe's leading solar cell
producers.
At the beginning of March we announced that we had signed a joint venture with
BBI Holdings Plc ('BBI') to acquire up to 50 percent of Platform Diagnostics, a
privately owned developer of Point of Care diagnostics. This opportunity
combines our expertise in microfluidics, surface coatings and optics with BBI's
reagent supply, sales and marketing network to bring to market a new generation
of low cost, rapid diagnostic tests for Point of Care.
Financial strategy
On 27 March 2007 we completed the sale of our former wire rope factory in
Worksop for £1.5 million. This brings the total proceeds from the disposal of
surplus properties in the year to £7.4 million, resulting in a significant
further reduction in group debt.
We have made good progress in our negotiations to agree a long term funding plan
for our defined benefit pension schemes. We expect to conclude these
negotiations and to agree renewed bank facilities in the next few months.
- Ends-
Enquiries:
Carclo plc
Ian Williamson, Chief Executive
Robert Brooksbank, Finance Director 01924 268040
Weber Shandwick Financial 020 7067 0700
Richard Hews
James White
Notes to editors
• Carclo plc is a global supplier of technical plastic components. It is a
public company whose shares are quoted on the London Stock Exchange.
• 75% of sales are derived from the supply of fine tolerance, injection moulded
plastic components, which are used in medical, automotive, telecom and
electronics products. This business, Carclo Technical Plastics, operates
internationally in a fast growing and dynamic market underpinned by rapid
technological development.
• 25% of sales are derived from the supply of manufactured systems to the
automotive and aerospace industries.
• Carclo's strategy is to grow rapidly in low cost manufacturing regions and to
develop new technologies and products to underpin future growth.
This information is provided by RNS
The company news service from the London Stock Exchange
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