Business
Trading Update and Board Changes
Trading Update and Board Changes.
About this update from Carclo Plc
[{"type":"text","content":"\n \nRNS Number : 8072B Carclo plc 15 January 2018 \n\n15 January 2018\n \n \n Carclo plc\nTrading Update and Board Changes\n \nCarclo plc (\"Carclo\" or the \"Group\"), the global manufacturing group, announces a trading update for the year ending 31 March 2018. \nTrading update\nThe stronger second half performance across the Group, anticipated at the time of the Interim Results in November last year, is not now expected to be achieved. Accordingly, the Board now expects the Group's performance for the current financial year to be significantly lower than previously planned.\nWhile the previously reported operational issues at Technical Plastics have been addressed, there has been an unexpected delay in the awarding of two large tooling and automation contracts. In addition, a large and long standing non-medical customer which had been indicating a strong second half for our moulded components has not yet increased its orders. The impact of these factors is such that the division's profit for the current year is now expected to be significantly below expectations.\nWithin LED Technologies, the Group's LED super car lighting business has performed as anticipated and new product launches have continued to be made on time. However, while the Wipac business has continued to operate well, delays in the award of three new contracts are expected to materially reduce the division's profit for the current year. It is still anticipated that Wipac will be successful in winning a number of these programmes despite the uncertainty on timing.\nThe Board expects the Group's profits for the year ending 31st March 2018 to be significantly lower than its previous expectations. In addition, as a consequence of some of these delayed projects and lower customer orders, the Board has now reduced its profit expectations for the 2018/19 financial year albeit these revised expectations will still represent healthy year on year growth.\nThe Board recognises there is an ongoing reliance upon winning new tooling and automation contracts to drive profitability in Technical Plastics. However it is also cognisant that such reliance must be offset by higher and more sustainable underlying operating margins from existing business and therefore targeting improved...