Business
Year-End Trading Update
Year-End Trading Update.
About this update from Carclo Plc
[{"type":"text","content":"\n \nRNS Number : 4125W Carclo plc 17 April 2019 \n\n17 April 2019\nCarclo plc (\"Carclo\" or the \"Group\")\nYear-End Trading Update\n \nCarclo plc (\"Carclo\" or the \"Group\"), a global manufacturer of fine tolerance injection moulded plastic parts mainly for the medical, automotive lighting and optics markets, issues this trading update for the year ended 31 March 2019 ahead of the Group announcing its full year results in June.\nThe Technical Plastics and Aerospace Divisions performed as anticipated in the year, with the second half seeing a much-improved performance from the Technical Plastics Division. This reflects the growing success of the ongoing operational improvement programme and controlled growth in volumes. A programme commenced just before the year-end to reduce the footprint of the Technical Plastics facility in the Czech Republic to further improve the site's future profitability. Overall, both the Technical Plastics and Aerospace Division saw year-on-year improvements in operating profits, with the Aerospace Division significantly ahead.\nIn Wipac, the main operating business in the Group's LED Technologies Division, production volumes have begun to increase in recent weeks although customer backlogs have remained largely unchanged as customer demand has risen, partly for Brexit related safety stock reasons. With some key personnel changes having been made in the past three months and a range of operational initiatives subsequently implemented, the Board is confident of further progress being made in improving output in the near-term. Given that a number of new mid-volume platforms go into production over the coming months and years, the revenue outlook for the business remains strong, with the opportunities and challenges this brings.\nHowever, although progress was made in increasing production output, the costs of scrap, freight and production labour remained at higher than expected levels as an unprecedented number of new programmes were launched into the previously reported unstable manufacturing environment. This situation, combined with lower development and tooling revenue as fewer new programmes were awarded, a risk highlighted in the Group's statement on 11 January 2019, resulted in the profits for Wipac, and consequently the Group, falling below the Board's expectations for the year.\nE...