Carclo in Ossett delivers 'resilient' performance but profits and revenues dip

Technical plastics firm Carclo says it delivered a 'resilient' performance in the year ended March 31, 2021, despite the global pandemic.

Carclo is listed on the London Stock Exchange.
Carclo is listed on the London Stock Exchange.

The Ossett-based business, which provides engineered services for the medical, optical and aerospace industries, saw revenue from continuing operations decreased by 2.7 per cent to £107.6m.

While underlying operating profit from continuing operations decreased by £2.5m to £4.8m.

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Nick Sanders, executive chairman of Carclo, said: "Despite a challenging period for the group, the continuing businesses performed strongly in 2020/21 and ended the year on an improving trend.

"Following the exit of the loss-making LED business and the completion of a three-year agreement with the group's lending bank and pension trustees, Carclo now has a more stable platform from which to develop the business.

"The management structure has been simplified and the senior management and board significantly strengthened.

"Whilst Covid-19 continues to create some uncertainty over our near-term performance, the board believes that the operating businesses within the group have attractive long-term growth opportunities, particularly within the medical diagnostics market where the CTP (Carclo Technical Plastics) business is well positioned.

"Alongside investing to deliver its organic growth strategy, the board is working closely with Carclo's pension trustees on the group's defined benefit pension deficit.

"Delivering a reduction in the pension deficit over time will be a key element in translating the performance of the underlying business into value creation for shareholders.

"We are encouraged by our trading performance during the first quarter and the Board expects to see good progress in the current year."

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