1st Nov 2019 10:34
(Alliance News) - Plastic parts maker Carclo PLC swung to an annual loss on a sharp rise in exceptional costs, Friday's belated full-year results showed.
Revenue in the year ended March 31 fell by 0.9% year-on-year to GBP144.9 million from GBP146.2 million.
Carclo, whose shares were suspended in August due to delays in publication of its results, swung to a pretax loss of GBP14.7 million from a GBP8.2 million profit last year.
Exceptional items surged to GBP13.9 million from GBP904,000 last year, driven by a GBP8.5 million in impairment costs.
Carclo explained: "Exceptional items totalled GBP13.9 million of which GBP8.5 million relates to impairment of the LED Technologies Division which has been written down to its recoverable amount. The remainder relates to one-off items in relation to the operational issues at Wipac, including stock write-offs, impairment charges and consultants' costs."
Carclo said there was encouraging trading from its Technical Plastics and Aerospace divisions though this was more than offset by struggles in LED Technologies.
Poor trading in LED Technologies was largely due to the troubled Wipac business, which Carclo is looking to dispose of.
Carclo added: "Discussions remain ongoing, but there remains no certainty that a sale of Wipac will occur. In the event that no disposal occurs, the board will need to assess the options for this business."
Post-period end, Carclo said it sold of a specialist assembly line, an asset in the Wipac business.
Chair Mark Rollins said: "The year to March 31 was an extremely challenging one for Carclo, with Wipac's poor operational and financial performance putting significant pressure on the whole group. However, with Technical Plastics and Aerospace delivering encouraging performances in 2019, which have continued in the first half of the current year."
By Eric Cunha; [email protected]
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