Shares of Carclo PLC (LON:CAR) lost nearly half their value Monday morning after the plastics maker issued multiple profit warnings and announced the departures of key executives, including the chairman.
Investors sent shares about 47% lower to £66.30 on news that the group faced unexpected delays securing big contracts in its Technical Plastics and Wipac units that would negatively affect results.
The board said it now expects to miss second-half guidance and anticipates full-year profits for the year ending March 31 to be “significantly” below guidance due to the setbacks, though the board did say that it still expects healthy year-on-year growth.
The company also noted that its medium-term outlook remains positive on the strength of its LED Technologies business.
Chairman, CFO to step down
The company also announced that chairman Michael Derbyshire will retire in July after nearly six years and 12 years as non-executive director.
Mark Rollins, who joined the board as non-executive director in January, has been named Derbyshire’s successor.
Also departing is finance director Robert Brooksbank, who will leave March 31 after 14 years with the company. Financial Controller Richard Ottaway will act as interim chief financial officer until a permanent successor is found, the company said.