Carclo plc Directorate Change (4298E)
04 July 2019 - 4:00PM
UK Regulatory
TIDMCAR
RNS Number : 4298E
Carclo plc
04 July 2019
4 July 2019
Carclo plc ("Carclo" or the "Group")
Update and directorate change
Carclo plc ("Carclo" or the "Group"), a global manufacturer of
fine tolerance injection moulded plastic parts mainly for the
medical, automotive lighting and optics markets, issues the
following update ahead of announcing its results, for the
year-ended 31 March 2019, on 23 July 2019.
As announced on 11 June 2019, Wipac is working with its
customers to implement a plan to refocus the operation on its
historic low-volume high-end vehicle markets where it had
previously been financially successful. This strategy is likely to
result in a non-cash write down of some project assets in the
accounts for the year ending 31 March 2019 and work is currently
ongoing to quantify the amount of the write down.
As well as managing the smooth exit of certain programmes, which
will significantly reduce the Group's cash requirements for working
capital and capital expenditure, a detailed plan is being put in
place to turn around the financial and operational performance of
the ongoing Wipac business. The plan has two major elements to it:
customer support and operational self-help. The objective of this
plan is to return Wipac to a position of profitability and cash
generation over the next 18 months. Today the Wipac business is
incurring significant losses.
Whilst the Group has been preparing this plan it has received a
number of approaches from parties, both trade and financial,
interested in the potential acquisition of Wipac. Discussions with
these parties are at an early stage and there is no certainty that
a sale of Wipac will occur.
The Aerospace and Technical Plastics Divisions continue to
perform slightly ahead of expectations for the current financial
year.
Separately, Sarah Matthews-DeMers, Carclo Group CFO, has
informed the Board that she will be leaving the Group at the end of
October to take up a similar role with a growing AIM listed
company. A search for her replacement will commence shortly. The
search continues for a permanent Group CEO, a role which has been
filled on a temporary basis by Mark Rollins, Chairman, since the
middle of January this year.
As previously announced, discussions remain ongoing with the
bank, pension trustee and other stakeholders in relation to the
extension of the Group's borrowing facilities, which are currently
due to mature in March 2020. During the past week, Wipac has
received Euro 8.7m for outstanding tooling balances from its
customers. This money has been used to pay suppliers and to fund an
expiring short-term GBP2.0m overdraft facility. As part of the
ongoing discussions, the March net debt to EBITDA banking covenant
test has again been deferred by the bank, this time until 31 July
2019.
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) ("MAR") prior to its release as part
of this announcement and is disclosed in accordance with the
Company's obligations under Article 17 of those Regulations.
Enquiries:
Carclo plc 01924 268040
Mark Rollins - Executive Chairman
Sarah Matthews-DeMers - Finance Director
FTI Consulting 020 3727 1340
Nick Hasell / Susanne Yule
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END
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