REG - Carclo plc - Trading Update

CarcloAnnouncement

18/10/2022 07:00

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RNS Number : 1741D  Carclo plc  18 October 2022

 

18 October 2022

 

 

Carclo plc

 

("Carclo" or the "Group")

 

Trading Update

 

Carclo, a global manufacturer, principally of fine tolerance injection moulded
plastic parts and aerospace components, publishes the following trading update
for the first six months of its financial year ending 31 March 2023 ("FY23").

 

Demand has remained strong in our chosen sectors and, as a result, Group sales
were marginally ahead of the Board's expectations and ahead of the prior year.
 

 

The Life Sciences sector within CTP, comprising Medical and Diagnostic
customers, continued to deliver good revenue growth, despite delays in the
ramp-up of volumes on two new product lines.  The benefit of this revenue
growth was offset by a decrease in margins, driven by a combination of costs
associated with the introduction of new products and, as predicted,
inflationary and supply chain cost pressures. These cost pressures are being
offset by price increases wherever possible.  The management team has been
further strengthened to focus on improving operational efficiency.

 

The Aerospace sector traded strongly in the first half with continued high
order intake and significant sales growth.  Inflationary pressures have been
effectively mitigated and as a result margins have been maintained at
prior-year levels.

 

As a result, underlying Operating Profit for the Group is in line with the
Board's expectation and marginally below the prior year, supported by
favourable exchange rate movements, particularly the movement of sterling
against the US dollar.

 

An extension of the Group's financing agreements was also completed in the
first half with bank facilities committed out to June 2025. Net debt increased
in the half year largely driven by higher working capital and investment in
capital equipment to support future growth.  The Group pension scheme IAS 19
accounting deficit has reduced slightly since March 2022, with both asset and
liability values reducing significantly during recent high volatility in
equity and bond markets.

 

The inflation and supply chain challenges experienced in the first half are
expected to continue through the remainder of the financial year. Our
initiatives to further enhance operational efficiency and to offset
inflationary price increases are key focus areas for the second half.
Increases in borrowing costs are expected in the second half driven by
increases in both the level of debt and interest rates.

 

Carclo plans to announce its interim results for the six months to 30
September 2022 in November 2022.

 

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

 

Enquiries:

 Carclo plc                  01924 268040
 Frank Doorenbosch           CEO
 Phil White                  CFO

 FTI Consulting              020 3727 1340
 Nick Hasell / Susanne Yule

 

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