Update on banking position and timing of results
30 July 2019
Update on banking position and timing of results announcement
Carclo 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 update on its banking arrangements and the timing of the announcement of the results for the year ending 31 March 2019 (the "2019 financial year").
As announced on 22 July 2019, the Group reached formal agreement with the pension trustee regarding the level of pension contributions to be paid by Carclo until January 2021 which, in turn, enabled the Group to reach outline agreement on an extension of the Group's existing borrowing facilities for the same period. The Group can confirm that formal banking documentation was subsequently entered into such that Carclo now has financing in place until January 2021. The Board believes the revised terms of the extended facilities include covenants and pricing which are appropriate to the current circumstances of the Group.
It was also announced on 22 July that preparation of the results for the 2019 financial year and their audit were well advanced and the Board hoped to be able to complete the required work and announce the results by 31 July 2019, as required under the Listing Rules. However, whilst a substantial part of this work is complete, the Group's continuing discussions regarding a potential sale of the Wipac business, together with the potential implications of the previously reported poor performance of that business, mean additional preparation and audit work are required to be undertaken.
Consequently, the Board now believes the Group and its auditors will not be able to finalise the audit and publish the accounts for the 2019 financial year by 31 July 2019.
A further announcement as to the expected timing for the publication of the Group's results for the 2019 financial year will be made as soon as practicable.
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
Carclo plc 01924 268040
Mark Rollins - Executive Chairman
Sarah Matthews-DeMers - Finance Director
FTI Consulting 020 3727 1340
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