05 September 2024
Carclo plc
Trading Update
Carclo plc, the leading global provider of high-precision components, offering comprehensive services from mould design, automation and production to assembly and printing, serving the life sciences, aerospace, optics and tech sectors, provides the following trading update ahead of our AGM.
Financial Performance
Our strategic focus on improving our balance sheet, enhancing asset utilisation, prioritising margin over volume, and maximising our global footprint continues to yield positive results.
The Group's trading performance year to date is in line with management's expectations. The US manufacturing rationalisation and improvement programme is on track. By focussing on cash management and leveraging stronger trading, we have further improved our net debt to uEBITDA ratio. This progress highlights our unwavering commitment to strengthening our financial health across all operations.
Our expectations for the FY25 full year and FY26 remain unchanged with margin expansion anticipated to continue as the Group starts to see the full benefits of the operational optimisation process, continuing our journey toward our strategic goals of 10% return on sales and 25% return on capital employed.
CTP Design & Engineering
Our CTP Design & Engineering division maintains its focus on asset revitalisation projects, which are crucial for driving the next phase of operational improvements. This strategic emphasis underlines our commitment to sustainably enhancing overall company performance and meeting the evolving needs of our clients. These efforts continue to strengthen Carclo's leadership position in the sector, with a clear vision for sustained, medium-term growth.
CTP US Manufacturing Solutions
The restructuring of our US operations is progressing ahead of schedule, as highlighted during our full-year results presentation. We have successfully completed final production runs in Tucson and are now fully focused on our operational turnaround strategy at our centralised facility in Pennsylvania.
New leadership teams in our specialised production cells are beginning to drive important improvements in asset utilisation and operational performance, which are leading to the expected enhancement in margins. These proactive measures position us well to address short-term challenges while keeping our eyes on the medium to long-term strategic goals.
CTP EMEA Manufacturing Solutions
Our CTP EMEA Manufacturing Solutions division continues to build on its strong performance as we focus on the next phase of operational improvement through material and process optimisation. Following the new operational setup in EMEA, the region has emerged even stronger, with lasting enhancements in operational efficiency.
We have achieved an optimal balance of efficiency and flexibility by establishing long-run operations in the UK and medium-flexible runs at our facility in the Czech Republic, which enables us to effectively meet the growing demands of the EMEA market.
Speciality Division
We have now combined our Aerospace and Specialised Optics businesses into our Speciality Division, dedicated to providing customised solutions for niche markets. Both sectors utilise a strong market position built on specialised precision components, ongoing innovation, and exceptional customer support. The Aerospace sector, in particular, has continued its growth trajectory, showcasing the success of our strategic initiatives and commitment to precision leadership. Our expanding precision machining capabilities have enhanced our product offerings, further strengthening Carclo's respected position in the aerospace industry. These accomplishments reflect our steadfast commitment to quality and innovation across all specialty operations.
Further details will be provided in our interim results for the six months ending 30 September 2024, which will be released later this year.
LEI: 21380078MEM399JPI956
Enquiries:
Carclo plc +44 (0) 20 8685 0500
Frank Doorenbosch Chief Executive Officer
Eric Hutchinson Chief Financial Officer
Forward-looking statements
Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause outcomes to differ materially from those expected.
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