REG - Carclo plc - Trading Update

CarcloAnnouncement

05/09/2024 07:00

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RNS Number : 9408C  Carclo plc  05 September 2024

05 September 2024

 

 

Carclo plc

 

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, provides the following trading update ahead of our AGM.

Financial Performance

Our strategic focus on improving our balance sheet, enhancing asset
utilisation, prioritising margin over volume, and maximising our global
footprint continues to yield positive results.

The Group's trading performance year to date is in line with management's
expectations. The US manufacturing rationalisation and improvement programme
is on track. By focussing on cash management and leveraging stronger trading,
we have further improved our net debt to uEBITDA ratio. This progress
highlights our unwavering commitment to strengthening our financial health
across all operations.

Our expectations for the FY25 full year and FY26 remain unchanged with margin
expansion anticipated to continue as the Group starts to see the full benefits
of the operational optimisation process, continuing our journey toward our
strategic goals of 10% return on sales and 25% return on capital employed.

CTP Design & Engineering

Our CTP Design & Engineering division maintains its focus on asset
revitalisation projects, which are crucial for driving the next phase of
operational improvements. This strategic emphasis underlines our commitment to
sustainably enhancing overall company performance and meeting the evolving
needs of our clients. These efforts continue to strengthen Carclo's leadership
position in the sector, with a clear vision for sustained, medium-term growth.

CTP US Manufacturing Solutions

The restructuring of our US operations is progressing ahead of schedule, as
highlighted during our full-year results presentation. We have successfully
completed final production runs in Tucson and are now fully focused on our
operational turnaround strategy at our centralised facility in Pennsylvania.

New leadership teams in our specialised production cells are beginning to
drive important improvements in asset utilisation and operational performance,
which are leading to the expected enhancement in margins. These proactive
measures position us well to address short-term challenges while keeping our
eyes on the medium to long-term strategic goals.

CTP EMEA Manufacturing Solutions

Our CTP EMEA Manufacturing Solutions division continues to build on its strong
performance as we focus on the next phase of operational improvement through
material and process optimisation. Following the new operational setup in
EMEA, the region has emerged even stronger, with lasting enhancements in
operational efficiency.

We have achieved an optimal balance of efficiency and flexibility by
establishing long-run operations in the UK and medium-flexible runs at our
facility in the Czech Republic, which enables us to effectively meet the
growing demands of the EMEA market.

Speciality Division

We have now combined our Aerospace and Specialised Optics businesses into our
Speciality Division, dedicated to providing customised solutions for niche
markets. Both sectors utilise a strong market position built on specialised
precision components, ongoing innovation, and exceptional customer support.
The Aerospace sector, in particular, has continued its growth trajectory,
showcasing the success of our strategic initiatives and commitment to
precision leadership. Our expanding precision machining capabilities have
enhanced our product offerings, further strengthening Carclo's respected
position in the aerospace industry. These accomplishments reflect our
steadfast commitment to quality and innovation across all specialty
operations.

Further details will be provided in our interim results for the six months
ending 30 September 2024, which will be released later this year.

 

LEI: 21380078MEM399JPI956

 

Enquiries:

Carclo plc                                +44
(0) 20 8685 0500

Frank Doorenbosch                   Chief Executive Officer

Eric Hutchinson                         Chief Financial
Officer

 

 

Forward-looking statements

 

Certain statements made in this announcement are forward-looking statements.
Such statements are based on current expectations and are subject to a number
of risks and uncertainties that could cause outcomes to differ materially from
those expected.

 

 

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