23rd Dec 2020 10:00
(Alliance News) - Shares in Carclo PLC shot up on Wednesday after it said it has signed a framework agreement with a major global original equipment manufacturer for the production of medical diagnostic disposable devices.
The stock was trading 24% higher at 15.77 pence each on Wednesday morning in London.
The West Yorkshire-based plastic parts manufacturer said the agreement with the unnamed company allows the award of production contracts to its Carclo Technical Plastics division for the manufacture of a range of diagnostic products over the next ten years.
Carclo added that production contracts are expected to be awarded in the first half of its financial year ending March 31, 2022, with full production volumes expected to be achieved in the second half of financial 2022. At full rate of production, the contracts are expected to deliver annual revenue of between GBP10 million to GBP15 million.
"We are delighted to have secured this framework agreement and look forward to working with our customer over the next decade. This is a significant step forward in the development of CTP's strategy and is testament to our strengths in the medical diagnostic market," said Rob Stutzman, chief executive of the Carclo Technical Plastics division.
By Ife Taiwo; [email protected]
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