26 April 2024

Carclo plc

("Carclo" or the "Group")

Full-Year Trading Update

Today, Carclo plc, a global leader in delivering high-precision critical components to the life sciences, aerospace, optics, and technology industries, provides an update on trading for the financial year ended 31 March 2024 ("FY 2024").

Trading Update

The Group trading performance exceeded the Board's previous expectations during the second half year of FY 2024, showing improvement over the first half year performance. This was achieved by focus on margin improvement and the benefits of the restructuring undertaken in Europe and started in the US.

Cash generation was stronger than the Board's previous expectations. The closing cash position was £6.0 million, with an undrawn revolving credit facility of £3.2 million, giving total cash availability of £9.2 million. This compares to £10.4 million, on the same basis, at the end of FY 2023.

Group net debt was £30.4 million (FY 2023 £34.3 million).

The Group has achieved covenant compliance through FY 2024.

Strategic Achievements and Financial Health

FY 2024 has been a year of substantial progress and strategic execution for Carclo. Aligned with our core strategic priorities, we have taken significant steps to strengthen our balance through focused capital investment to improve efficiency, yield, quality, and safety. Rigorous management of working capital is a cornerstone of our strategy.

We have achieved notable advancements in asset utilization by standardising our processes and equipment, while cultivating a culture of best practice sharing throughout the organisation, embodied by our "One Carclo" ethos. This unified approach has streamlined our operations, markedly boosting our operational agility and enabling us to respond more swiftly and effectively to market dynamics.

H2 Financial Overview and Comparative Analysis

In the second half of FY 2024, our strategic initiatives began to bear fruit, as evidenced by a detailed comparative analysis against the budget, previous year's performance, and our forecasts.

Moreover, an analysis of profit and cash flow in Q4 shows a stronger performance compared to Q3, indicating the positive trajectory we are on and a robust response to market demands as the year progressed. This quarterly insight not only demonstrates our operational success but also reinforces the effectiveness of our strategic focus in driving financial health and stability.

Carclo Technical Plastics (CTP)

We have redirected our efforts from unprofitable and non-core activities to concentrate on margin enhancement. This disciplined approach in our financial and operational management has solidified our financial health and significantly boosted our profit margins. Carclo now enjoys a strong financial foundation, demonstrating our dedication to prioritizing profitability over mere revenue expansion.

Despite considerable market challenges, our Carclo Technical Plastics (CTP) division has maintained a strong performance, driven by our commitment to operational efficiency and responsiveness to market needs. The division has skillfully navigated external pressures, continuing to uphold our standards of quality and innovation.

Leveraging the success of our restructuring in EMEA, we are actively progressing with consolidating our U.S. operations. This effort includes recent facility closures and the strategic centralization of activities in Pennsylvania. This initiative is crucial for optimizing our global footprint and fully leveraging our resources. We expect to substantially strengthen Carclo's position in the market by completing this restructuring within the next six months.

Aerospace

The growth of our Aerospace division is sustained by our focus on specialist precision solutions that elevate our competitive position. We have seen significant success in the South Asian markets and consistent improvements in our traditional markets. Our advanced precision technology capitalizes on emerging opportunities in revitalizing markets, while easing supply chain constraints boost our progress.

Looking ahead, we are planning investments to diversify our product range at both operational sites. This initiative is designed to capitalise on evolving market dynamics within the aerospace industry, ensuring that Carclo stays at the forefront of technological advancements and market demand.

Sustainability and Innovation

Sustainability remains at the heart of our operations. We are dedicated to integrating sustainable practices into every aspect of our business, from reducing environmental impact to ensuring social and economic responsibility. Our efforts are aimed at creating long-term value for all stakeholders while maintaining the high standards of quality and service that define Carclo.

Governance and Stakeholder Engagement

We remain deeply committed to maintaining high standards of governance and transparency, ensuring that our strategies and operations align with the best interests of our stakeholders. The Board continues to work closely with all partners to ensure that our strategic objectives are met with integrity and accountability.

Outlook

Looking forward, Carclo is optimally positioned to continue on its journey to deliver operational improvement and sustainable growth. The near term focus is to ensure the successful execution of our US restructuring, which is expected to yield significant benefits in FY 2025 and beyond.

In order to drive our competitive advantage and enhance shareholder value, we remain focused on innovation in our products, processes, and services.

We are confident that this, combined with our strategic initiatives and ongoing commitment to operational excellence, will enable us to meet future challenges with continued success.

Enquiries

Carclo plc - 01924 268040

Frank Doorenbosch - Chief Executive Officer

Eric Hutchinson - Chief Financial Officer

About Carclo plc

Carclo plc is a public company listed on the Main Market of the London Stock Exchange, known for its innovation, precision, and trusted partnerships across essential industries.

LEI: 21380078MEM399JPI956