CAR Carclo Plc

TIDMCAR

RNS Number : 8613K

Carclo plc

31 August 2023

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU NO. 596/2014) WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN

31 August 2023

Carclo plc

("Carclo" or the "Group")

Trading Update

Carclo plc, the leading global provider of high-precision components, offering comprehensive services from mould design, automation, and production to assembly and printing, serving the life sciences, aerospace, optics, and tech sectors, announces a trading update.

Our CTP Design & Engineering business has showcased remarkable resilience and growth, with sales figures exceeding expectations year to date. The order book remains robust, reflecting the trust our clients place in our capabilities and the market's recognition of our advanced solutions. This strong position underscores our commitment to innovation and our ability to meet the evolving needs of our clients, further solidifying Carclo's reputation as a leader in the sector.

In our CTP US Manufacturing Solutions business, we are navigating through a tight labour market, which has presented operational challenges across all of our US facilities. The ongoing restructuring reflects our commitment to aligning our operations more closely with market demand. While the initiation of a significant project with a major customer has seen some delays, and we've observed a softer demand in the early part of the year due to destocking at our customers, we remain optimistic about the future trajectory. Our proactive approach will ensure that we're positioned to address these short-term challenges without compromising our long-term vision.

Our CTP EMEA Manufacturing Solutions business has emerged stronger post-restructuring. The results are evident in our enhanced operational performance, allowing us to keep pace with the growth of the EMEA market. With long-run operations solidified in the UK and medium flexible runs in our Czech facility, we've achieved a harmonious blend of efficiency and flexibility. Furthermore, improvements in material utilisation underscore our commitment to operational excellence.

The Aerospace division is experiencing a notable resurgence, with indicators showing the market is rebounding to its pre-COVID vibrancy. This revival is not merely a reflection of the broader industry trend but is also a testament to our strategic and proactive business development initiatives. Through targeted efforts, we've not only captured new opportunities but also strengthened existing partnerships. These achievements, combined with our unwavering commitment to quality and innovation, have further solidified Carclo's highly-regarded position within the aerospace sector.

Financially, our focus on cash conversion and margin improvement, rather than just sales growth, is beginning to reflect positively on our balance sheet. 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. In an environment of rising interest rates, our emphasis on cash management becomes even more pivotal.

We will provide more details when we release our interim results for the six months ending 30 September 2023 later this year.

LEI: 21380078MEM399JPI956

Enquiries:

   Carclo plc                             01924 268040 

Frank Doorenbosch - Chief Executive Officer

Eric Hutchinson - Chief Financial Officer

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August 31, 2023 02:00 ET (06:00 GMT)

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