Carclo plc AGM Trading Update (0390Q)

TIDMCAR

RNS Number : 0390Q

Carclo plc

07 September 2017

7 September 2017

Carclo plc

("Carclo" or the "Group")

AGM Trading Update

The Board announces that overall the Group's trading performance for the year ending 31 March 2018 remains in line with its expectations, with an outperformance of the LED Technologies division expected to offset the weaker than previously anticipated performance of the Technical Plastics division.

Technical Plastics has had a challenging start to the financial year with some key new programmes delayed into the second half and some operational challenges, which have now been largely resolved. Performance is now much improved and we expect this division to have a considerably better second half of the year, in line with our prior plans for that period. The new factory build in India and the redevelopment of Mitcham are progressing according to plan and the Chinese business is benefitting from further systems validations with our main medical customer as well as very strong new business opportunities.

LED Technologies is having an encouraging first half, performing ahead of our expectations, with its Wipac business seeing good product sales on its various supercar lighting programmes and strong design, development and tooling activity. New business activity has continued apace, and ahead of prior expectations. Progress on the mid-volume programmes and the factory expansion at Buckingham has continued to plan. Customer audits of our mid volume programmes have confirmed that we are well advanced with preparations for manufacturing and continuing to meet their high expectations. Integration of our recent Czech acquisition has been excellent and we are now starting to expand our technical teams in this location, which has already enhanced our ability to win more business.

The Aerospace division is expected to have stronger sales in the second half of the financial year as some of our new programmes move to serial production.

As anticipated, Group net debt will be higher at 30 September 2017 compared to 31 March 2017, primarily due to the timing of capital investment and an increase in working capital due to the investment and payment profile of ongoing design, development and tooling programmes. Group net debt is then expected to decrease by the year end.

Given the above, the Board anticipates that the Group's usually stronger second half performance weighting will this year be more pronounced, driven by an outperformance at LED Technologies and an improved performance at Technical Plastics. The Board continues to expect the Group to deliver results for the year as a whole in line with its previous expectations and is confident that all divisions are well placed to make strong progress thereafter.

The information contained within this announcement is deemed by Carclo plc to constitute inside information as stipulated under the Market Abuse Regulation. Upon the publication of this announcement via a regulatory information service, this inside information is now considered to be in the public domain.

- ENDS -

Enquiries:

 
 Carclo plc                   01924 268040 
 Chris Malley, Chief 
  Executive 
 Robert Brooksbank, 
  Finance Director 
 
 Peel Hunt LLP               0207 418 8900 
 Justin Jones 
 Matthew Brooke-Hitching 
 
 Weber Shandwick 
  Nick Oborne 
  Tom Jenkins                020 7067 0000 
 

About Carclo

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.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCUGUCCBUPMGQQ

(END) Dow Jones Newswires

September 07, 2017 02:00 ET (06:00 GMT)