Carclo plc Trading Update (5163V)
31 January 2017 - 7:00AM
UK Regulatory
TIDMCAR
RNS Number : 5163V
Carclo plc
31 January 2017
31 January 2017
Carclo plc
("Carclo" or the "Group")
Trading Update
The Board is pleased to announce that trading in the second half
of the Group's current financial year remains strong and the
outlook for the full year remains in line with its
expectations.
Our Technical Plastics division is set to report a stronger
second half performance, as expected, assisted by the contribution
from Precision Tool & Die ("PTD"), acquired in October 2016.
Our US business is trading well and the integration is progressing
to plan. The expansion of our Bangalore facility in India is now
underway and, once completed this summer, should double the
capacity of our Indian business. Our Chinese operation, based in
Taicang, continues to support the growth of its main medical
customer while securing other new business opportunities.
In our LED Technologies division, Wipac supercar lighting
product sales have been in line with our forecasts and this
business continues to benefit from the significant design,
development and tooling activities generated by the recent run of
programme wins. Wipac continues to win new lighting programmes
within the low volume sector and remains focussed on securing a
further mid volume programme in the new financial year, which will
support the anticipated strong growth of this business.
Our smaller LED Optics business has continued to benefit from
strong demand and the project to move a part of the manufacturing
business to our Technical Plastics facility in Brno, Czech Republic
is running to plan.
Our Aerospace business has continued to enjoy stable trading
conditions in both its UK and French operations.
The Group's balance sheet remains strong, benefiting from the
additional GBP3 million of funds raised in last October's equity
placing to fund the acquisition of PTD. The Board anticipates that
Group debt at the financial year end will be broadly in line with
its expectations. The IAS19 pensions deficit, which had increased
significantly due to the steep decline in corporate bond yields
following the EU Referendum result in June 2016, is expected to
have reduced modestly, reflecting the recent increase in the
corporate bond yield used to discount the pension liability.
The Board remains positive about the Group's trading performance
in the current financial year and its longer term prospects for
further growth and increased profitability.
Later today, Carclo will be holding an investor event at its
Wipac facility in Buckingham. The event is intended to provide a
greater understanding of the Group's supercar lighting business. No
new material trading information will be provided and the
presentation materials will be available on the Investors section
of Carclo's website following the event.
- ENDS -
Enquiries:
Carclo plc 01924 268040
Chris Malley, Chief
Executive
Robert Brooksbank,
Finance Director
Peel Hunt LLP 0207 418 8900
Justin Jones
Jock Maxwell Macdonald
Mike Bell
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 are 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
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