City briefs: Carclo and Synectics

Wakefield-based manufacturer Carclo says it managed a solid performance for the financial year ended 31 March 2021, despite experiencing “one of the most challenging years in its history.”

The Group says it took swift and decisive action to reduce its cost base and use regional government support schemes to mitigate the effects of the pandemic.

The signing of an agreement with the company’s principal bank and trustees of the Group pension fund in August 2020 was a pivotal step for Carclo, extending and enhancing its bank facilities further for three years to July 2023, alongside a newly agreed schedule of enhanced pension contributions.

Carclo’s trading update states: “FY 2021 trading in the CTP division was stronger than the Board had previously anticipated, with total revenue including tooling broadly in line with levels last year.

“As previously announced, the division has secured significant new business in the second half of the year mainly related to the medical sector and consisting of both COVID and non-COVID related products.

“It is particularly pleasing to note that alongside increasing demand from existing customers, the division was also able to secure new customers.

“In common with many businesses in the sector, the Aerospace division was significantly impacted by the downturn in air travel caused by the pandemic.

“Order intake was dramatically reduced in the first half but stabilised year on year in the second half, albeit at a lower level.

“Timely and decisive management action resulted in a reduction in the division’s cost base and this along with Government support resulted in the business trading at a reduced profit and remaining cash generative; a significant achievement given the impact of the pandemic on the aerospace sector as a whole.”

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Advanced security and surveillance systems business, Synectics, says its trading continues to be affected by global travel restrictions on casinos and gaming resorts in Asia-Pacific and the United States, which represent its largest market sector.

But in its latest trading update, the Sheffield-based company says activity in public infrastructure and transportation in the UK and Europe continues to hold up relatively well.

Its major project for security command and control on the S-Bahn rail network in Berlin went live on 1 January 2021 as planned.

Since then, the project has continued its roll-out across the network and delivery will be completed in this financial year, enabling the the business to move into the eight-year service and maintenance phase of its contract.

Synectics announced on 7 April 2021 the award of a major contract by the City of London Corporation and City of London Police to provide the software command and control system for their Secure City programme, co-ordinating security management across several other transport and emergency response agencies.

And the company adds there are early signs of increased customer activity in the gaming sector, from which its Board expects some recovery in orders in the second half of this financial year.

The Group’s cash position remains solid, with net cash of £4.5m at 23 April 2021 (26 February 2021: £4.5m).