Carclo plc - Full Year Trading Statement and COVID-19 Update
Full Year Trading Statement and COVID-19 Update
Trading update for the year ended
The Board is pleased to announce that trading for the continuing businesses during the second half of FY2020 reflected a continuation of the positive momentum seen in the first half of the year. Consequently, the Board expects to report, subject to audit, underlying results for the continuing businesses for FY2020 in line with its expectations.
The Technical Plastics Division performed strongly for the year as a whole, largely driven by increased volume as the business continued to secure a number of new programmes in its core medical market. The Aerospace Division also performed well, driven by increased volumes of spares orders and customers building inventory ahead of the
As previously announced, the Group successfully completed the exit from the loss-making businesses of the LED Division in
The Group's net debt (including IFRS16 leases and subject to audit) at
Impact of COVID-19
Whilst the initial outbreak of COVID-19 had limited impact on trading in final quarter of FY2020, disruption has been more extensive in the first quarter of the current financial year. During this period, the Group's primary focus has been to ensure the wellbeing of staff and the continued safe operation of its businesses. All applicable government advice has been followed across the different countries in which the Group operates. Pleasingly, it has been possible to keep most sites operational through the lockdown period, enabling the Group to continue to serve its customers many of whom operate in essential industries, particularly the medical diagnostic sector.
Given the division's focus on the medical market, overall demand across the Technical Plastics business has remained relatively resilient, with a number of its products being used directly in COVID-19 testing applications. Notwithstanding continued demand, the implementation of governmental guidance on social distancing and some limited shutdowns have impacted efficiency and throughput across the Group, which will inevitably have a negative impact on profitability.
Demand for the Aerospace business has been significantly impacted by the downturn in the aerospace sector.
Management has already taken action to mitigate these challenges, including accessing government support programmes where available and a reduction in variable costs where appropriate. The Board has taken a 20% cut in fees and salaries for the first quarter of the new financial year. The Group remains focused on ensuring operational continuity where it can; however, it remains very difficult to predict how the ongoing crisis will affect performance going forward.
Given the current levels of uncertainty it is not possible for the Board to provide near-term guidance on expected financial performance. As previously reported, discussions continue with the Group's lending bank and pension trustees in order to agree a long-term financing position for
Timing of full year results
Mindful of the ongoing uncertainty presented by the COVID-19 situation, and the guidance from the Financial Conduct Authority that public companies should consider delaying preliminary announcements, the Board has decided to delay the publication of the Company's Full Year Results for the year ended
Rights attaching to listed equity shares
In compliance with Listing Rule 9.2.6ER(1), the Company has forwarded to the
A copy of the Articles of Association have been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
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This information is provided by RNS, the news service of the
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