Business
Half-year Report
Half-year Report.
About this update from Carclo Plc
[{"type":"text","content":"\n\nCarclo plc\n(\"Carclo\" or the \"Group\")\n \nInterim Report and Accounts\n \nHalf-year results for the six months ended 30 September 2023\n \nCarclo 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 its results for the first six months of its financial year ending 31 March 2024 (\"H1 2024\").\n \nHighlights:\n· The Group faced challenging market conditions compared to the prior year, in particular from the life sciences sector, as demand for diagnostic equipment fell with key customers adjusting to post-COVID requirements. Demand from the aerospace sector remained robust. As a result, revenue from continuing operations decreased by 7.2% (4.8% at constant currency) to £66.9 million (H1 2023: £72.2 million).\n· Our focus on operational excellence and efficiency delivered improved manufacturing contribution margins, in particular from our European operations, which partially mitigated the effect of the reduced volumes. As a result, segmental underlying return on sales increased to 7.0% from 6.5%.\n· Underlying operating profit from continuing operations was £2.2 million (H1 2023: £3.6 million) with the £0.7 million foreign currency gain in H1 2023 not repeated in H1 2024 (£nil). On a constant currency basis, underlying operating profit was down by £1.1 million.\n· Net exceptional costs in the period were £2.1 million (H1 2023: £0.3 million) being primarily £1.0 million rationalisation costs of which £0.4 million was cash. There is also a £1.0 million past service pension cost which is non-cash.\n· We made excellent progress on the key strategic goal of improving the Group's cash generation with cash generated from operations of £11.4 million (H1 2023: £0.5 million) largely driven by strict working capital management.\n· Net debt, including IFRS16 lease liabilities, decreased to £29.5 million (31 March 2023: £34.4m) as a result of the focus on cash management to allow increased d...