Carclo plc AGM Trading Update (4620K)
September 02 2021 - 2:00AM
UK Regulatory
TIDMCAR
RNS Number : 4620K
Carclo plc
02 September 2021
2 September 2021
Carclo plc
("Carclo" or the "Group")
AGM Trading Update
Carclo, a global manufacturer, principally of fine tolerance
injection moulded plastic parts, publishes the following trading
update for the first four months of its financial year ending 31
March 2022 ("FY22"), ahead of its Annual General Meeting which
takes place today.
The Group has made an encouraging start to FY22, maintaining the
momentum built in the second half of the prior year in spite of a
challenging operating environment. As a result, Group trading was
ahead of management's expectations for the first four months of
FY22, with performance also ahead of the equivalent prior
period.
The Carclo Technical Plastics (CTP) division has performed
strongly despite operational headwinds. Specifically, labour
availability in the division's US businesses has been challenging
in the early part of FY22, although this is expected to improve in
the coming months as government support packages come to an end.
The availability and pricing of raw materials has also been
difficult in recent months as general supply and logistics issues
impact the business. Some of the resultant input cost inflation has
been offset by sales price increases. Inventories have also been
held at a higher level to protect against supply disruption.
Alongside the positive trading performance, the division
continues to make good commercial progress with order intake in the
medical and diagnostic sector remaining strong and showing some
good potential.
The new customer programmes announced in December 2020 are
moving into production on time and to budget, with these providing
significant growth potential from the latter part of FY22.
The Aerospace division has experienced early signs of market
recovery with order intake exceeding sales for the first four
months of FY22 following a FY21 where sales exceeded order intake.
In addition to a general market improvement, the division has been
successful in winning business with new customers in line with its
long-term strategy.
Cash generation has also continued to be good in the first four
months of FY22 and ahead of the prior year, with net debt as at 31
July 2021 of GBP28.4m and net debt excluding lease liabilities of
GBP21.8m. At a Group level the positive developments previously
reported relating to the relationships with our principal bank and
pension trustees have been maintained and further initiatives are
being developed with the pension trustees to aim to improve the
pension scheme's funding level more quickly than would be the case
by employer contributions alone.
Carclo plans to announce its interim results for the six months
to 30 September 2021 in November 2021.
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
Nick Sanders - Executive Chairman
FTI Consulting 020 3727 1340
Nick Hasell / Susanne Yule
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END
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