3rd Sep 2015 07:16
LONDON (Alliance News) - Carclo PLC on Thursday said that trading remains in line with its expectations for the year to the end of March 2016 as it reported a strong performance in the second quarter, with its LED technologies activities and general lighting sales bright spots for the company.
The technology-led plastics business said its technical plastics operations had a good start to the year, with implementation of its strategy to expand continuing with a new Chinese factory "on course" to begin manufacturing within weeks.
"Our successful drive to improve operational efficiency has so far reduced the impact of the weaker Euro, helping to preserve margins in line with the board's expectations," Carclo said.
Its LED technologies activities have been managing the "large number" of new programmes it has secured in recent years for new lighting systems from its luxury and supercar customers.
"Some of these are now transitioning, as expected, to prototyping and production phases. New programme wins have continued in line with our expectations," Carclo said, noting that general lighting sales were also strong.
"As a whole, we currently expect the division to deliver a stronger trading performance for the year than previously anticipated," Carclo said.
The company's precision engineering aerospace business had a "solid performance" in the first half, Carclo said, although there have been pressures of late.
"We have recently experienced some weakness in the spares segment order book and, whilst this may recover in the second half, the divisional trading result is expected to be a little behind our previous expectations for the year as a whole," Carclo said.
Meanwhile the company's diagnostic solutions activities have "continued to meet" technical timelines.
"During the second half of the year it will increase customer and partner interactions and this will assist in providing a validation of the technology prior to moving to further phases of investment," the company said.
Carclo shares were up 4.4% at 148.28 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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