Update and timing of results announcement

RNS Number : 1973G

Carclo plc

22 July 2019

 

22 July 2019

Carclo plc

Update and timing of results announcement

Carclo plc ("Carclo" or the "Group"), a global manufacturer of fine tolerance injection moulded plastic parts mainly for the medical, automotive lighting and optics markets, issues this update ahead of announcing its results for the year ending 31 March 2019 (the "2019 financial year").

As previously announced, discussions have been taking place with the bank and the pension trustee in relation to the extension of the Group's borrowing facilities. The current bank facilities extend to March 2020. As part of this process, formal agreement was reached yesterday with the pension trustee regarding the level of pension contributions to be paid by Carclo until January 2021. This now allows the Group to finalise an agreement with the bank regarding the extension of the Group's existing borrowing facilities for the same period. The principal terms of the extended facilities have been agreed with the bank and both parties are now working to conclude the formal banking documentation.

Once finalised and documented, this agreement will allow the results for the year ended 31 March 2019 to be completed and the accounts audited. Given the work required to do this, the Group will not announce its results for the 2019 financial year on 23 July, as previously announced. However, the preparation of the results and their audit are well advanced and, subject to finalising the banking documentation, the Board currently hopes to be able to complete the required work and announce the results for the 2019 financial year by 31 July 2019, as required under the Listing Rules.

The first three months of the current year have seen the Technical Plastics and Aerospace Divisions performing better than the prior year with the Technical Plastics Division also well ahead of the Board's expectations.

As previously reported, the LED Division, driven by the poorly performing Wipac business, has been incurring significant losses. It is anticipated that the customer support initiatives implemented on 1 July will result in an improving, albeit still lossmaking, performance in the months ahead. A return to profitability now depends upon the operational improvement elements of the turnaround plan being delivered.

In the meantime, discussions are actively being pursued with potential purchasers for Wipac.

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

Enquiries:
Carclo plc                                                          01924 268040
Mark Rollins - Executive Chairman Sarah Matthews-DeMers - Finance Director FTI Consulting                                                  020 3727 1340 Nick Hasell / Susanne Yule

 

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