REG - Carclo plc - Contract Cancellation

CarcloAnnouncement

07/12/2022 09:45

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RNS Number : 9085I  Carclo plc  07 December 2022

7 December 2022

 

Carclo plc

("Carclo" or the "Group")

Contract Cancellation

 

In December 2020 the Group announced the receipt of a ten-year Framework
Agreement from a

major global OEM for the supply of a range of components for use in their
laboratory-based PCR diagnostic systems.  At full production rates these
contracts were expected to deliver incremental sales of between £10m and
£15m annually for the life of the contract with the Board's most recent
expectation being that production volumes would start building from the last
quarter of the current financial year.  Whilst the tooling contracts have
been substantially delivered, the customer has now informed the Group that
they no longer intend to proceed into the production phase of the project.

 

The Group is in discussion with the customer regarding an appropriate
commercial settlement in relation to this cancellation.  The Board is
evaluating the financial impact and taking mitigating actions.

 

 

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 global provider of value-adding
engineered solutions for the medical, optical and aerospace industries.

 

LEI: 21380078MEM399JPI956

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR").

 

 

Enquiries:

 

Carclo plc

01924 268040

 

Frank Doorenbosch - Chief Executive Officer

David Bedford - Chief Financial Officer

 

FTI Consulting

020 3727 1340

Nick Hasell / Susanne Yule

 

 

 

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