REG - Carclo plc - Trading Update

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RNS Number : 5540B  Carclo plc  23 April 2026

23 April 2026

Carclo plc

Trading Update

Carclo plc ("Carclo", the "Group" or the "Company"), a global precision
engineering group with comprehensive, end-to-end manufacturing capabilities is
pleased to announce a trading update for the year ended 31 March 2026
("FY26").

Highlights:

 * Overall trading performance in line with management expectations

 * Sustained strong performance in key health and safety metrics

 * Medium-term targets for the key metrics of Return on Sales and Return on
Capital Employed achieved

 * Strong year-on-year growth in EBIT with anticipated ongoing effective tax rate
of approximately 35-45% in line with previous years

 * Net debt in line with expectations at £24m (31 March 2025: £19.3m)

 * No supply disruption or material financial impact arising from the Middle East
conflict to date; we continue to closely monitor the situation

 * Business delivering positive results following completion of turnaround plan
providing a solid platform to deliver high margin growth

 * At its full year results presentation, the Group will announce ‘Precision
2030’, the next phase of its transformation plan, which will lay out the
medium-term growth targets

 

Commenting on the business, Frank Doorenbosch, Chief Executive Officer said:

"FY26 shows excellent delivery created by the turnaround we began in 2022. The
business we have today is fundamentally different from the one inherited - we
have materially better margins with stronger returns and more focused product
lines with fewer sites.

Revenue is expected to be approximately £114m (£121m in FY25), reflecting
the continuing rebalancing and careful management of our portfolio, along with
completion of customer projects in Design and Engineering.  We have exited
low-margin, short-run work and concentrated the portfolio on regulated markets
- life sciences and aerospace - where what we do genuinely matters. The
financial results tell that story clearly: with growth in underlying EBIT and
hitting our medium-term targets on both Return on Sales and Return on Capital
Employed a year ahead of plan.

In CTP, the consolidation of our US operations into Pennsylvania is
delivering. Margins are up meaningfully and the business is performing at a
level that was simply not possible under the old footprint. EMEA continues to
be strong, with our UK operations now focused on high-volume automated
production and Central Europe handling the more flexible medium-volume work.
China has outperformed our expectations on both revenue and margin. The
significant contract renewal announced in July 2025 is a testament to the
depth of our customer relationships and the critical nature of what we
manufacture.

Our Speciality division delivered double-digit revenue growth, driven by
sustained demand in aerospace and market share gains in specialist machining.
We are well positioned for continued growth with the additional capacity we
invested in during the year now operational.

The current geopolitical environment, including the ongoing conflict in the
Middle East, continues to put upward pressure on materials and energy costs.
As is the norm in our industry, we have an established mechanism to enable us
to share these cost increases with our customers and we have not experienced
any supply disruption or material financial impact to date.

Safety remains our priority. The work across all sites to embed a genuine
safety culture is delivering measurable improvement over the past three years,
and that matters as much to me as any financial metric.

Having completed our restructuring plan, the business enters FY27 (12 months
ending 31 March 2027) in good shape. At our full year results, I will
introduce Precision 2030 - our growth plan for the next phase, with clear
financial targets out to 2030. We have built a strong platform, from which we
intend to grow the business."

 

Health & Safety Excellence

Safety is our number one priority across the Group. The focus across all sites
to embed a safety culture reflects Carclo's commitment to operational
excellence and risk management. This culture directly supports sustainable
operational success and has seen the continued embedding process of reporting
incidents across the business.

 

CTP Division

CTP Design and Engineering ("D&E") revenue improved in the second half of
the financial year, as anticipated, but was below both management expectations
and prior year run-rate due to lower customer activity in the US. EMEA
customer project activity was ahead of both management expectations and prior
year performance. The D&E team continues to maintain its focus on asset
revitalisation and driving efficiency improvements in our global manufacturing
platform which remains critical to delivering our medium-term financial goals.

In CTP Manufacturing Solutions, revenue for FY26 is expected to be broadly in
line with FY25, excluding the impact of foreign exchange translation and
revenue related to the final exits of the non-core short-run product lines in
H1 FY25. The US business is demonstrating improved margins and delivering
significantly improved financial performance compared to the prior year. EMEA
operations continue to perform well, with solid margin performance as the
strategy to focus the UK operations on high volume, highly automated solutions
with more flexible, medium volume runs in our Central Europe facility. In Asia
Pacific, our China operations have performed ahead of management's
expectations in both sales and margin delivery.

 

Speciality Division

The Speciality division continues to grow strongly, with robust demand from
the aerospace sector coupled with market share gains in specialist machining
helping to deliver double digit revenue growth. The focus on operational
performance, coupled with specialist niche offerings, has enabled the division
to maintain strong margins.

 

Outlook

The Group has entered the current financial year with momentum across both
divisions. In Life Sciences, demand for high-precision solutions remains
robust and we continue to deepen our presence with customers in diagnostics,
drug delivery and medical devices. In aerospace, we are well-positioned to
capitalise on sustained sector growth, supported by the additional capacity
now in place.

With our medium-term financial targets achieved we look forward to presenting
our growth plan in detail at the full year results.

 

Enquiries:

Carclo
plc
+44 (0) 20 8685 0500

Frank Doorenbosch, Chief Executive Officer

Ian Tichias, Chief Financial Officer

 

Panmure Liberum (Corporate Broker)       +44 (0) 20 3100 2000

Amrit Mahbubani

Freddie Wooding

 

KK Advisory (Investor relations)

Kam Bansil

Steve Keeling

 

About Carclo plc:

Carclo is a global precision engineering group that designs, industrialises
and manufactures highly reliable solutions for Life Sciences, Aerospace and
Safety & Security markets, manufactured in-region, for-region.

Carclo plc is a public company whose shares are quoted on the Main Market of
the London Stock Exchange.

 

LEI: 21380078MEM399JPI956

 

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