Carclo to launch super-car lighting range

Carclo has supplied LED lighting for super-cars like the Aston Martin DB11

Top of the range luxury cars such as Aston Martin, Lamborghini and McLaren all source their LED lighting from Ossett-based Carclo.

The first product will turn on LED lights when the steering wheel turns so drivers can effectively see around the corner.

The second is a laser light that can shine far further ahead when the lights are on full beam.

Carclo's chief executive Chris Malley said: "When on full beam, drivers will be able to see double the distance. So when you're driving down really dark roads you will be able to see what's ahead.

"The technology is already there and now we have developed it to go into the upmarket niche area. We will launch the two new products in the next couple of years."

He was speaking as the firm reported a strong trading performance across its divisions in the first half of the financial year, with all businesses trading in line with the board's expectations.

Group revenue rose 10.7 per cent to £63.3m in the six months to September 30 while operating profit before exceptional items increased by 19.0 per cent to £5.6m.

Mr Malley said higher profits were driven by strong performances from its Technical Plastics and LED Technologies divisions

As anticipated net debt rose to £27.6m at the half year due partly to the impact of currency movements on the retranslation of the group’s US dollar and euro denominated medium term loans.

In Technical Plastics the divisional operating margin increased to 8.8 per cent and the division has started the expansion of its Bangalore facility in India, which will double its overall capacity.

Since the period end on September 30, the group completed the acquisition of Precision Tool & Die, which is said will bring significant new capabilities to Technical Plastics and broaden the division’s offering to its customers.

The group said its Aerospace division has benefited from stable demand in the first half of the financial year.

Analyst Jon Lienard at N+1 Singer said: "Trading remains positive with momentum strong in Plastics and LED.

"For those willing to look past the pension and dividend issues discussed previously (or for those who think bond yields will now start to help the situation), we feel that there is an attractive investment case at these levels. We remain at Buy."

He was referring to the decision last month to not pay shareholders their final dividend following restraints resulting from the UK’s vote to leave the European Union.

The firm said corporate bond yields had decreased materially in the UK following the Brexit vote. The yields are used to discount the group’s pension liability.

Analyst Dominic Convey at Peel Hunt said: "This is a strong first half trading performance across all three divisions. As anticipated, the interim results confirmed that the strong momentum within the Technical Plastics and LED Technologies division has been sustained through the first six months of the year, with first half pre-tax profits comfortably ahead of our expectation, derisking our full year forecasts.

"This strong growth potential, well underpinned by recent programme wins and a healthy new business pipeline, justifies a significant rerating. We are maintaining our 190p target price and reiterate our Buy recommendation."