Carclo’s auto exit ‘well timed’

Chairman Christopher Ross said Carclo had enjoyed another year of progress although the deterioration in the global economy increased uncertainty in the trading environment and inevitably resulted in some volatility in the company's customer base. He went on: "Our medical and specialist optical business continues to grow and has been largely unaffected by the world recession. This, coupled with the cost reductions completed last year, should deliver growing profitability in the technical plastics division. "In precision products we have recently seen a slow down in demand for aerospace components but we expect the sustained growth in Wipac's specialist lighting business to compensate to some extent for the lower demand in aerospace components and automotive antennas. Our investment in new technologies is also starting to reap rewards and revenues from Conductive Inkjet Technology are growing steadily. These are challenging and uncertain times but the board is confident of delivering further progress." Two thirds of Carclo's sales are derived from the supply of fine tolerance, injection moulded plastic components, which are used in medical, optical and electronics products. A third of sales are derived from the supply of specialised precision products to the premium automotive and aerospace industries. It is a leader in the development of high power LED lighting for supercars. In the year to 31 March, exceptional charges of £2.7 million in connection with the closure of the company's Llanelli plant following the decision to withdraw from low margin automotive moulding work drove pre-tax profit down to £3.7 million (2008 - £4.5 million). Carclo also pulled forward a planned exit from its Slough facility, in order to reduce the group's cost base, and has upgraded its Scottish plant for optical moulding.