16th May 2016 07:42
LONDON (Alliance News) - Technical plastics supplier Carclo PLC on Monday said it will exit its Diagnostics Solutions business and will focus on its LED Technologies and Technical Plastics divisions.
Carclo said it has completed a review on the Diagnostics Solutions business which found a significant level of future investment would be required to back the development of a wider range of assays. Given uncertainty in the division's end markets, Carclo said its review "did not identify a credible strategic option", to take the business forward.
As a result, Carclo said it will discontinue investment in the Diagnostics Solutions business and will book a charge on the carrying value of the business in its results for the financial year to the end of March 2016. This will cover a GBP4.9 million impairment on the value of the business. Another GBP1.0 million in costs which will be booked in the 2017 financial year related to closing it down.
Carclo will publish annual results on June 7.
"While CDS' technical progress has been consistent with our published roadmap, the Board considers that now is the appropriate time to withdraw funding from this business, given the uncertainty over its future commercial success and the financial commitment required to take it forward," said Chris Malley, Carclo's chief executive.
Carclo shares were down 5.0% at 148.00 pence early Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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