Trading Update

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.

 

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