Carclo plc Trading Update (5138M)
October 14 2016 - 2:00AM
UK Regulatory
TIDMCAR
RNS Number : 5138M
Carclo plc
14 October 2016
14 October 2016
Carclo plc
("Carclo", the "Company" or the "Group")
Trading Update
The Board is pleased to announce that the Group has continued to
trade well in the current financial year and its trading
performance remains in line with the Board's expectations for the
year ending 31 March 2017. The Group will announce its results for
the half year ended 30 September 2016 on 15 November 2016.
Technical Plastics delivered a good first half performance with
customer demand in line with the Board's expectations and growing
net margins; the Board expects this division to have a stronger
second half trading performance. In LED Technologies, our Wipac
luxury and supercar lighting business has performed well,
demonstrating good product demand and with all of its current
design, development and tooling projects on plan; this division is
expected to report another strong performance in the second half of
the financial year. The Aerospace division has benefited from
stable demand in the first half of the financial year and is
expected to trade in line with the Board's expectations for the
full year.
Approximately two thirds of Group revenue is currently derived
from outside the UK and, therefore, movements in foreign exchange
rates have an impact on our financial results. The Group had
foreign exchange contracts in place prior to the EU Referendum and
this has limited the net benefit from foreign exchange rates in the
first half of the financial year. Assuming that sterling does not
strengthen significantly, we do expect some further net benefit
from the retranslation of overseas profits during the second half
of the financial year.
Group debt was slightly higher as at 30 September 2016 than at
31 March 2016 primarily due to the impact of currency movements on
the re-translation of the Group's US dollar and Euro denominated
medium term loans. Group debt is expected to reduce by 31 March
2017.
As outlined in our trading statement of 31 August 2016, the
Group's IAS 19 pension deficit is expected to have increased
significantly due to the material decrease in the corporate bond
yield used to discount the pension liability. However, the cash
cost of the pension deficit has remained at similar levels with the
Group paying in the current year an annual recovery plan payment of
GBP1.2 million and pension scheme administration costs of GBP0.7
million. As expected, due to the materially increased IAS19 pension
deficit extinguishing the Company's distributable reserves, the
Group did not pay the recommended final dividend of 1.95 pence per
share which was referred to in the results announcement made on 7
June 2016.
The Board continues to look forward to a year of strong trading
and good growth in both of its main divisions.
Enquiries:
Carclo plc 01924 268040
Chris Malley, Chief Executive
Robert Brooksbank, Finance
Director
Weber Shandwick Financial 020 7067 0700
Nick Oborne
Notes to editors
Carclo plc is a public company whose shares are quoted on the
London Stock Exchange.
Carclo's strategy is to develop and expand its key manufacturing
assets where there remain significant further opportunities to
drive value. To enhance profit margins and support customers the
Group has been investing in lower cost regions and new
technologies.
Approximately three fifths of Group revenues are derived from
the supply of fine tolerance, injection moulded plastic components,
mainly for medical products. The balance of revenue is derived
mainly from the design and supply of specialised injection moulded
LED based lighting systems to the low volume premium automotive
industry.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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