‘Serious loss of capital’ warning for listed plastics components manufacturer
Wakefield-based manufacturer Carclo, which had delayed publication of its annual results, has called a general meeting to react to news that the value of its net assets is less than half of its called-up share capital.
In a statement released by the listed company today, it explains: “During the course of preparing the financial results for the year ended 31 March 2019, the Board has become aware the value of the company’s net assets is now less than half of its called-up share capital (‘a serious loss of capital’).
“In the circumstances of a serious loss of capital, the directors are required by section 656(1) of the Companies Act 2006, to call a general meeting to consider whether any, and if so what, steps should be taken to deal with the situation.
“Consequently, the company will issue a notice to convene a general meeting as soon as practicable.
“The convening of the general meeting does not impact the ongoing process to finalise and announce the financial results for the year ended 31 March 2019.”
As reported at the end of last month, Carclo, which makes fine tolerance injection moulded plastic parts mainly for the medical, automotive lighting and optics markets, had managed to extend its borrowing facilities until January 2021.
The business had hoped to be able to publish its annual results by 31 July 2019, as required under Listing Rules.
But it was unable to do so due to continuing discussions regarding a potential sale of its loss-making LED division, Wipac, meaning additional preparations and audit work were required.
