CARCLO
Strong progress reported in FY 2016 / Medical devices gains give revenue lift / Revenues up 16% and operating profit doubles
Technical moulder Carclo (Ossett / UK; www.carclo.co.uk) has announced group revenues for the year ending 31 March 2017 up 16% at GBP 138.3m (EUR 158.5m), boosted in part by growth in medical devices markets around the world. Operating profits more than doubled to GBP 12m, while pre-tax profits before exceptionals grew 26% to GBP 11m. Underlying earnings per share rose 20% to 12.1p. The firm announced it hoped to resume dividend payments to shareholders in the financial year 2018-19, once distributable reserves had recovered to sufficient levels following the impact on bond yields and its pension liabilities from the EU referendum.
Carclo, which has operations in the UK, USA, Czech Republic, China, and more recently India, said its core technical plastics (CTP) operation had benefited from a series of new business wins and closed the year with its largest ever pipeline of new opportunities. Europe and the US remained focal points for medical product growth with China also showing positive opportunities, it said. Underlying operating profit increased by 40.3% to GBP 8.7m on revenues up 24.6% to GBP 87.8m.
The firm said last October’s USD 6.5m acquisition of US-based Precision Tool & Die (PTD, Derry, New Hampshire / USA; www.precisiontoolanddie.net) – see Plasteurope.com of 15.11.2016 – had enabled the CTP operation to extend its reach into a further three of the top 20 global medical device manufacturers, lifting its coverage to 10 of these manufacturers in total.
Carclo’s LED Technologies arm, which supplies high-tolerance lighting products to the luxury automotive sector, saw revenues grow 7.2% to GBP 43.4m, with underlying operating profits up nearly 10% to GBP 5.9m. Its aerospace division saw profits level at GBP 1.6m on revenues up 9.4% to GBP 7m, largely due to the lower margin nature of the growing machined components business versus the traditional, but declining, cable business.
Speaking about the results, Michael Derbyshire, Carclo’s chairman, said the company had yet again delivered a strong trading performance during the year and made excellent progress in implementing its stated strategic objectives. “The two acquisitions made during the year [PTD and Czech-based FLTC – see Plasteurope.com of 11.04.2017] are well aligned to our strategy and we have been successful in rapidly integrating both companies into the group,” he said.
Carclo, which has operations in the UK, USA, Czech Republic, China, and more recently India, said its core technical plastics (CTP) operation had benefited from a series of new business wins and closed the year with its largest ever pipeline of new opportunities. Europe and the US remained focal points for medical product growth with China also showing positive opportunities, it said. Underlying operating profit increased by 40.3% to GBP 8.7m on revenues up 24.6% to GBP 87.8m.
The firm said last October’s USD 6.5m acquisition of US-based Precision Tool & Die (PTD, Derry, New Hampshire / USA; www.precisiontoolanddie.net) – see Plasteurope.com of 15.11.2016 – had enabled the CTP operation to extend its reach into a further three of the top 20 global medical device manufacturers, lifting its coverage to 10 of these manufacturers in total.
Carclo’s LED Technologies arm, which supplies high-tolerance lighting products to the luxury automotive sector, saw revenues grow 7.2% to GBP 43.4m, with underlying operating profits up nearly 10% to GBP 5.9m. Its aerospace division saw profits level at GBP 1.6m on revenues up 9.4% to GBP 7m, largely due to the lower margin nature of the growing machined components business versus the traditional, but declining, cable business.
Speaking about the results, Michael Derbyshire, Carclo’s chairman, said the company had yet again delivered a strong trading performance during the year and made excellent progress in implementing its stated strategic objectives. “The two acquisitions made during the year [PTD and Czech-based FLTC – see Plasteurope.com of 11.04.2017] are well aligned to our strategy and we have been successful in rapidly integrating both companies into the group,” he said.
13.06.2017 Plasteurope.com [237093-0]
Published on 13.06.2017