Carclo announced its interim report for the half year ended 30 September 2019. Underlying operating profit from continuing operations increased by 56% to £3.3m. Group statutory loss before tax was £5.6m and solid progress was made in improving the financial position of the group, with net debt reducing to £26.8m as of 30 September 2019. Underlying EPS from continuing operations was 2.2p.
Exceptional costs from continuing operations stood at £1.9m, with £2.8m also incurred towards discontinued operations.
Technical Plastics (CTP) and Aerospace divisions witnessed strong performances while the LED division continued to have significant performance issues.
Negotiations with the bank and pension trustee over the long-term funding position of the group continue, with no certainty that a satisfactory outcome will be reached.
Given the financial performance and position of the group, the board is not recommending the payment of a dividend in respect of H1 2020. The payment of dividends will only recommence when the group’s finances are on a more stable and stronger footing and no dividend is envisaged to be paid in respect of the current year.
CTP continues to make solid cash generative progress and the results for the division, for the financial year to 31 March 2020 are expected to be comfortably ahead of those for FY 2019. The outcome for H2 is anticipated to be similar to the strong H2 performance of the prior year.
Aerospace is expected to deliver healthily profitable results for FY 2020 with H2 results similar to H1.