Business
Pre-close trading update
Pre-close trading update.
About this update from Carclo Plc
[{"type":"text","content":"\n RNS Number : 2364Q Carclo plc 07 April 2009 \n \n\n\nFor immediate release: 7 April 2009\n\nCarclo plc\n('Carclo' or 'The Group')\n\nPre-close trading statement\n\nCarclo plc, the technology led plastics company, is pleased to make the following statement on trading for the financial year ended 31 March 2009 and outlook for the 2009/10 financial year. Carclo will announce its preliminary results for the 2008/09 financial year on 9 June 2009.\n\nTrading performance\n\nThis has been another year of good progress and the results for the 2008/09 financial year will be in line with our expectations as outlined in the Interim Management Statement issued on 4 February 2009. \n\nSecond half trading has been weaker than the first half as customers worldwide have adjusted inventories to accommodate reduced demand or lower growth expectations. In Technical Plastics we expect profits to be at a similar level as the prior year on slightly lower sales, reflecting the Group's timely decision to exit from low margin automotive moulding which was completed in October 2008. \n\nSales and profits in Precision Products will be ahead of the prior year benefiting from a strong contribution from aerospace components and continuing design and development revenues from our high performance LED lighting contracts.\n\nIn the financial year we closed the Llanelli plant as part of our exit from automotive moulding and at the end of the year we completed the closure of the Slough manufacturing facility. The exceptional costs associated with these closures will be around £2.5 million.\n\nYear-end debt is estimated to be around £19 million, well within our total facilities of £31 million. The increase in debt from £13.7 million at the start of the year is predominantly due to the translation impact of the US dollar and Euro denominated borrowings.\n\nPension accounting\n\nThe group pension scheme will show a deficit on an IAS 19 basis at 31 March 2009 compared with a small surplus at the prior year end. The IAS 19 net financing credit, which is a non-cash item in the group income statement, will also be reduced or eliminated next year. However, this reflects the volatility...