Carclo set for stronger second half performance

PLASTICS firm Carclo'‹ said its technical plastics division is set to report a stronger second half performance, driven by growth in the US business.

The Ossett-based firm has set its sights on international growth and has started the expansion of its Tucson, Arizona factory. In addition a new facility in Taicang, China is now fully operational and the group has started expanding in India. It is using newly leased buildings in order to minimise capital expenditure and avoid any construction disruption.

Carclo said that trading in the second half is in line with expectations. Its super-car lighting division performed well and it has won a further programme with an existing super-car lighting customer.

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Carclo said its precision engineering businesses have traded well, reflecting better order intake in recent months, and its diagnostic solutions division has made promising progress.

Carclo’s chief executive Chris Malley said the group’s balance sheet is strong and funding arrangements remain well within banking covenants.

Analyst Jon Lienard at N+1 Singer said: “A reassuring update which confirms a stronger second half and also confirms that Carclo is not exposed to the weaker macro areas at present. As we said in November, CIT is now history and the two main divisions are ripe with opportunity; coupled with little exposure to general industrial activity/oil & gas, this is a strong investment case.”

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