Listed manufacturer delays annual results further as it extends borrowing facilities

Listed plastic components manufacturer Carclo now has financing in place until January 2021, but the publication of its annual results has been further delayed.

The Wakefield-based maker of fine tolerance injection moulded plastic parts mainly for the medical, automotive lighting and optics markets, has today issued an update on its banking arrangements.

As announced on 22 July, the Group had reached formal agreement with the pension trustee regarding the level of pension contributions to be paid by Carclo until January 2021. This enabled the business to reach outline agreement on an extension of the Group’s existing borrowing facilities for the same period.

In its update this morning, Carclo states: “The Group can confirm formal banking documentation was 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 Listing Rules.

“However, while a substantial part of this work is complete, the Group’s continuing discussions regarding a potential sale of its Wipac business, together with the potential implications of the previously reported poor performance of that business, mean additional preparation and audit work are required.

“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.”