Carclo delays annual results but secures financing

Carclo's executive chairman Mark Rollins
Carclo's executive chairman Mark Rollins
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Plastics firm Carclo said the publication of its annual results has been further delayed, but it now has financing in place until January 2021.

The Ossett-based firm said continuing discussions over a potential sale of its Wipac business, together with the potential implications of the poor performance of that business, mean additional preparation and audit work are needed.

Earlier this month, Carclo announced it had reached a formal agreement with the pension trustee regarding the level of pension contributions to be paid by the group until January 2021.

This enabled Carclo to reach outline agreement on an extension of its existing borrowing facilities for the same period.

On Tuesday, Carclo confirmed that formal banking documentation was subsequently entered and it now has financing in place until January 2021. The board said it believes the revised terms of the extended facilities include covenants and pricing which are appropriate to the firm's current circumstances.

Earlier this month, the group announced that preparation of its results for the 2019 financial year and their audit were well advanced and the board had hoped to be able to complete the required work and announce the results by July 31, as required under the Listing Rules.