Plastics manufacturer hails improving balance sheet

High-precision plastics components provider, Carclo plc, says its CTP Design & Engineering division has shown “remarkable resilience and growth”, with sales figures exceeding expectations year to date.
In a trading update released today, Ossett-based Carclo notes this operation’s order book remains robust.
However, turning to its CTP US Manufacturing Solutions division, the firm warns it is navigating through a tight labour market, which has presented operational challenges across all of its US facilities.
Ongoing restructuring is taking place to align the division more closely with market demand but Carclo adds it remains optimistic about the future trajectory of this arm of the business.
Meanwhile, the CTP EMEA Manufacturing Solutions division has emerged stronger post-restructuring. Carclo points out the results are evident in the division’s enhanced operational performance, which is allowing it to keep pace with the growth of the EMEA market.
Finally, the business says its Aerospace division is experiencing a notable resurgence, with indicators showing the market is rebounding to its pre-pandemic vibrancy.
Carclo notes its focus on cash conversion and margin improvement, rather than just sales growth, is beginning to reflect positively on its balance sheet.
And it adds: “The strategy to bolster our balance sheet’s health is evident across our operations. The compensation received from the cancelled manufacturing framework agreement has been utilised to reduce our bank debt.”