Profits light up Carclo’s interims
CARCLO, the innovative plastics firm, today reported “excellent strategic progress” over the first half of its financial year as pre-tax profits increased by £800,000 to £2.5m.
For the six months ended September 30, Carclo said its “robust” performance was in line with its board’s expectations.
The Osset-based company said underlying operating profits in its technical plastics division were £2.6m compared to £2m over the same period last year. Operating margins in the division were up 1.4% to 8.9%, while sales increased by 11.4% helped by strong growth from medical diagnostic and LED optical products.
Carclo said its precision products arm was impacted by customer delays in supercar lighting programmes which resulted in underlying operating profits reducing to from £800,000 to £400,000.
However, the company said the programmes were now in production and it expects a stronger second half performance.
Its conductive inkjet technology (CIT) division made “significant progress” during the first half of the financial year and has completed the installation of its pilot line which will be used in the production of touch sensors for Atmel Corporation.
Capital expenditure in the period was £2.8m and Carclo is to pay an interim dividend 0.7p per share.
Chairman Christopher Ross said: “The strategic progress made in the half year was excellent and the financial results were encouraging set against a background of continued economic uncertainty.
“The second half of the financial year is set to build on this momentum. The group continues to benefit from growth opportunities in medical diagnostics and LED optics. Start-up costs on the supercar lighting projects are progressively reducing which will underpin an improved second half performance in this business.
“Technical and commercial progress at CIT is very exciting and the board is determined to capitalise on the opportunities presented.
“We have good, well positioned, growing businesses and great technological opportunities.”
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