26 April 2024
Carclo plc
("Carclo" or the
"Group")
Full-Year Trading
Update
Today, Carclo plc, a global leader in delivering
high-precision critical components to the life sciences, aerospace,
optics, and technology industries, provides an update on trading
for the financial year ended 31 March 2024 ("FY 2024").
Trading
Update
The Group trading performance exceeded the
Board's previous expectations during the second half year of FY
2024, showing improvement over the first half year performance.
This was achieved by focus on margin improvement and the benefits
of the restructuring undertaken in Europe and started in the
US.
Cash generation was stronger than the Board's
previous expectations. The closing cash position was £6.0 million,
with an undrawn revolving credit facility of £3.2 million, giving
total cash availability of £9.2 million. This compares to £10.4
million, on the same basis, at the end of FY 2023.
Group net debt was £30.4 million (FY 2023 £34.3
million).
The Group has achieved covenant compliance
through FY 2024.
Strategic
Achievements and Financial Health
FY 2024 has been a year of substantial progress
and strategic execution for Carclo. Aligned with our core strategic
priorities, we have taken significant steps to strengthen our
balance through focused capital investment to improve efficiency,
yield, quality, and safety. Rigorous management of working capital
is a cornerstone of our strategy.
We have achieved notable advancements in asset
utilization by standardising our processes and equipment, while
cultivating a culture of best practice sharing throughout the
organisation, embodied by our "One Carclo" ethos. This unified
approach has streamlined our operations, markedly boosting our
operational agility and enabling us to respond more swiftly and
effectively to market dynamics.
H2 Financial
Overview and Comparative Analysis
In the second half of FY 2024, our strategic
initiatives began to bear fruit, as evidenced by a detailed
comparative analysis against the budget, previous year's
performance, and our forecasts.
Moreover, an analysis of profit and cash flow in
Q4 shows a stronger performance compared to Q3, indicating the
positive trajectory we are on and a robust response to market
demands as the year progressed. This quarterly insight not only
demonstrates our operational success but also reinforces the
effectiveness of our strategic focus in driving financial health
and stability.
Carclo
Technical Plastics (CTP)
We have redirected our efforts from unprofitable
and non-core activities to concentrate on margin enhancement. This
disciplined approach in our financial and operational management
has solidified our financial health and significantly boosted our
profit margins. Carclo now enjoys a strong financial foundation,
demonstrating our dedication to prioritizing profitability over
mere revenue expansion.
Despite considerable market challenges, our
Carclo Technical Plastics (CTP) division has maintained a strong
performance, driven by our commitment to operational efficiency and
responsiveness to market needs. The division has skillfully
navigated external pressures, continuing to uphold our standards of
quality and innovation.
Leveraging the success of our restructuring in
EMEA, we are actively progressing with consolidating our U.S.
operations. This effort includes recent facility closures and the
strategic centralization of activities in Pennsylvania. This
initiative is crucial for optimizing our global footprint and fully
leveraging our resources. We expect to substantially strengthen
Carclo's position in the market by completing this restructuring
within the next six months.
Aerospace
The growth of our Aerospace division is
sustained by our focus on specialist precision solutions that
elevate our competitive position. We have seen significant success
in the South Asian markets and consistent improvements in our
traditional markets. Our advanced precision technology capitalizes
on emerging opportunities in revitalizing markets, while easing
supply chain constraints boost our progress.
Looking ahead, we are planning investments to
diversify our product range at both operational sites. This
initiative is designed to capitalise on evolving market dynamics
within the aerospace industry, ensuring that Carclo stays at the
forefront of technological advancements and market
demand.
Sustainability
and Innovation
Sustainability remains at the heart of our
operations. We are dedicated to integrating sustainable practices
into every aspect of our business, from reducing environmental
impact to ensuring social and economic responsibility. Our efforts
are aimed at creating long-term value for all stakeholders while
maintaining the high standards of quality and service that define
Carclo.
Governance and
Stakeholder Engagement
We remain deeply committed to maintaining high
standards of governance and transparency, ensuring that our
strategies and operations align with the best interests of our
stakeholders. The Board continues to work closely with all partners
to ensure that our strategic objectives are met with integrity and
accountability.
Outlook
Looking forward, Carclo is optimally positioned
to continue on its journey to deliver operational improvement and
sustainable growth. The near term focus is to ensure the successful
execution of our US restructuring, which is expected to yield
significant benefits in FY 2025 and beyond.
In order to drive our competitive advantage and
enhance shareholder value, we remain focused on innovation in our
products, processes, and services.
We are confident that this, combined with our
strategic initiatives and ongoing commitment to operational
excellence, will enable us to meet future challenges with continued
success.
Enquiries
Carclo plc - 01924 268040
Frank Doorenbosch - Chief Executive
Officer
Eric Hutchinson - Chief Financial
Officer
About Carclo
plc
Carclo plc is a public company
listed on the Main Market of the London Stock Exchange, known for
its innovation, precision, and trusted partnerships across
essential industries.
LEI: 21380078MEM399JPI956