Carclo plc Carclo Strategic Decision to Close Derry Facility (2987R)

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RNS Number : 2987R

Carclo plc

25 October 2023

25 October 2023

Carclo plc

Carclo plc Announces Strategic Decision to Close its US Derry NH Facility

Ossett, October 25, 2023 - 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, announces a strategic decision to cease operations at its US Derry NH facility.

The facility, acquired in 2016 with the aim of expanding toolmaking capabilities, was transitioned into an injection moulding shop catering for short run business for diverse markets. After careful evaluation and a comprehensive review of the Group's strategy, Carclo has determined that the short run business and its associated projects do not align with the company's long-term strategic vision and as such the decision to close the Derry facility was reached.

The Group acknowledges and values the contributions of every team member to both the Derry facility and the organisation. It's essential to note that this decision does not undermine the dedication, professionalism, and hard work exhibited by the Carclo Derry team.

The one-time expenses associated with the facility closure are estimated to total GBP0.8 million (including asset write offs, inventory and fixed assets), with a cash outflow of GBP0.2 million. These costs are integral to the execution of our transition plan. The strategic move is expected to result in annualized savings of approximately GBP0.4 million in unadjusted EBIT (uEBIT).

To support affected employees during this transition, Carclo is implementing a comprehensive employee support plan. This focusses on job placement assistance and access to counselling and career transition resources.

Customers and suppliers who have been partners with the Derry NH facility will receive specific communications regarding the closure. Carclo is committed to addressing their concerns and ensuring a smooth transition for all ongoing contracts and arrangements.

This decision aligns Carclo's operations with its core strategy of factory specialization, process standardization, operational excellence, financial stability, and sustainability.

Enquiries

For further information or enquiries regarding this announcement, please contact:

Carclo plc - 01924 268040

Frank Doorenbosch - Chief Executive Officer

Eric Hutchinson - Chief Financial Officer

About Carclo plc

Carclo plc is a public company whose shares are quoted on the Main Market of the London Stock Exchange. The Group is a preferred and trusted partner of global customers, offering high-precision critical components that meet the needs of life sciences, aerospace, optics, and technology industries.

LEI: 21380078MEM399JPI956

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October 25, 2023 10:16 ET (14:16 GMT)