Carclo gets £13m to spend on better screens

The Ossett-based company believes its technology can transform the $10bn market for mobile phone and tablet computer touch screens.

The group said its placing with institutional investors was fully subscribed.

The cash will be used to develop touchscreen sensors made from Carclo’s conductive inkjet technology (CIT).

Carclo’s CIT lays fine lines of copper to create considerably cheaper and thinner touch screens than those made using the conventional indium tin oxide.

It has signed an exclusive 10-year deal with United States-based Atmel, the semiconductor manufacturer, to launch XSense, the touchscreen sensors.

Carclo’s technology allows developers to make larger, lighter, less power-hungry, sleeker designs for smartphones, tablets and other products.

Production samples have been supplied to eight major device manufacturers covering seven smartphone models and three tablets.

Carclo’s chief executive Ian Williamson, who is to retire in March 2013 after postponing his retirement two years ago, said the eight manufacturers include both big and small players. Apple and Samsung dominate both the smartphone and tablet markets.

Mr Williamson estimated that the group will produce 100,000 screens a week once it starts shipping.

In addition to boosting touchscreen production, the £13m placing will be used to reduce debts and develop the group’s medical arm, Carclo Diagnostic Solutions (CDS).

CDS provides disposable blood tests needed by people on blood thinning drugs to check they are taking the right medication.

The division has also developed a device that can check for early indications of kidney failure and a simple device to find out blood type.

Carclo said its diagnostic solutions business has seen “excellent technical progress” and initial commercial discussions are underway with a potential partner.

Carclo had net debt of £18m at the end of March.

The group said that while this level of gearing reflects a comfortable level of headroom, its debts are holding back investment.

Carclo said sales increased by 5.2 per cent to £93.3m for the year to March 31.

Underlying operating profits from continuing operations rose 12 per cent to £6.6m.

Pre-tax profits fell from £6.8m to £5.5m following a £1.8m exceptional charge to cover the group’s exit from the automotive communications business.

Yesterday Carclo said trading has continued in line with the board’s expectations.

Carclo relies on technical plastics and precision products for its current sales.

The group is a leader in high power LED lighting for supercars such as Aston Martin, Bugatti Veyron, Lamborghini and Rolls Royce.

It has appointed Chris Malley, the current chief executive of CIT, as group chief executive when Mr Williamson retires.