REG - Carclo plc - Trading Update

CarcloAnnouncement

31/08/2023 07:00

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RNS Number : 8613K  Carclo plc  31 August 2023

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31 August 2023

 

Carclo plc

 

("Carclo" or the "Group")

 

Trading Update

 

 

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 trading update.

Our CTP Design & Engineering business has showcased remarkable resilience
and growth, with sales figures exceeding expectations year to date. The order
book remains robust, reflecting the trust our clients place in our
capabilities and the market's recognition of our advanced solutions. This
strong position underscores our commitment to innovation and our ability to
meet the evolving needs of our clients, further solidifying Carclo's
reputation as a leader in the sector.

In our CTP US Manufacturing Solutions business, we are navigating through a
tight labour market, which has presented operational challenges across all of
our US facilities. The ongoing restructuring reflects our commitment to
aligning our operations more closely with market demand. While the initiation
of a significant project with a major customer has seen some delays, and we've
observed a softer demand in the early part of the year due to destocking at
our customers, we remain optimistic about the future trajectory. Our proactive
approach will ensure that we're positioned to address these short-term
challenges without compromising our long-term vision.

Our CTP EMEA Manufacturing Solutions business has emerged stronger
post-restructuring. The results are evident in our enhanced operational
performance, allowing us to keep pace with the growth of the EMEA market. With
long-run operations solidified in the UK and medium flexible runs in our Czech
facility, we've achieved a harmonious blend of efficiency and flexibility.
Furthermore, improvements in material utilisation underscore our commitment to
operational excellence.

The Aerospace division is experiencing a notable resurgence, with indicators
showing the market is rebounding to its pre-COVID vibrancy. This revival is
not merely a reflection of the broader industry trend but is also a testament
to our strategic and proactive business development initiatives. Through
targeted efforts, we've not only captured new opportunities but also
strengthened existing partnerships. These achievements, combined with our
unwavering commitment to quality and innovation, have further solidified
Carclo's highly-regarded position within the aerospace sector.

Financially, our focus on cash conversion and margin improvement, rather than
just sales growth, is beginning to reflect positively on our balance sheet.
The strategy to bolster our balance sheet's health is evident across our
operations. The compensation received from the cancelled manufacturing
framework agreement has been utilised to reduce our bank debt. In an
environment of rising interest rates, our emphasis on cash management becomes
even more pivotal.

We will provide more details when we release our interim results for the six
months ending 30 September 2023 later this year.

 

LEI: 21380078MEM399JPI956

 

Enquiries:

Carclo plc                             01924 268040

Frank Doorenbosch - Chief Executive Officer

Eric Hutchinson - Chief Financial Officer

 

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