Carclo warns on uncertain future and delays results

The Ossett-based manufacturer said that discussions with its lenders and pension trustees were ongoing concerning the group's long-term financing but warned there was no certainty a satisfactory agreement could be reached, with Carclo's net debts topping £25m.

It said it had been able to keep most of its sites operational during the lockdown crisis and said demand for its technical plastics had been resilient owing to the increased demand for testing applications.

However it said that the shutdown and social distancing measures had hampered its efficiency and throughput, something it said would negatively impact its results.

Demand for the aerospace business has been significantly impacted by the downturn in the sector, it said.

Management said it was accessing government support programmes where available and reducing variable costs, as well as taking a 20% cut in fees and salaries for the first quarter of the new financial year.

In a update it said that it "remains very difficult to predict how the ongoing crisis will affect performance going forward".

As previously announced, the Group successfully completed the exit from the loss-making businesses of the LED Division in December 2019.