7th Jun 2016 06:48
LONDON (Alliance News) - Technical plastics supplier Carclo PLC on Tuesday said it swung to profit in its financial year, after the large impairment booked a year earlier did not repeat, and its two largest divisions saw revenue growth.
Carclo posted a pretax profit of GBP3.9 million for the year ended March 31, from a loss of GBP24.5 million a year earlier, largely due to exceptional items costs falling sharply to GBP4.9 million from GBP31.7 million.
A year earlier, Carclo had incurred a GBP25.4 million impairment related to its decision to exit from its CIT Technology operations. The much smaller charge for the recently-ended financial year related to the impairment of patents and development costs at its Carclo Diagnostic Solutions business, after it announced last month it would be ceasing further investment in the company.
Underlying pretax profit, excluding these exceptional items was GBP8.8 million from GBP7.1 million, helped by an increase in revenue to GBP119.0 million from GBP107.5 million. Carclo said this stemmed from strong performances in its two largest divisions, the Technical Plastics division and the LED Technologies division.
Carclo proposed a final dividend of 1.95 pence per share, bringing the total dividend for the year to 2.85p per share, compared to the 2.75p per share offered a year earlier.
The company said it would continue to grow its two main manufacturing divisions, expanding manufacturing capacity in its Technical Plastics operations and making further investment in its LED Technologies division.
"The group has delivered a strong operational and financial performance through the year and is well placed and focused to drive further growth opportunities in the current year and beyond," said Chairman Michael Derbyshire.
By Hannah Boland; [email protected]; @Hannaheboland
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