StockMarketWire.com - Carclo's trading in the second half of the year have been stronger than anticipated and the group expects full year underlying performance will exceed previous forecasts.

An interim management statement says that operating margins in Technical Plastics have been higher in the second half as anticipated, reflecting the quality of new business and the successful integration of various new programs. It says that within LED Technologies schedules have been strong. The design and development of multiple new supercar programmes is well under way and further wins in the second half are in line with previous expectations. Customer feedback remains highly encouraging. It adds: "Precision Engineering has benefited from a healthy order book and our new business pipeline is developing well. We expect the moderate growth in this business to continue into next year.

"Carclo Diagnostic Solutions continues to make very good progress. We are actively monitoring and assessing our key commercial opportunities in order to maximise product alignment and value within the Point-of-Care diagnostics area.

"Our strategic review of CIT Technology is ongoing. Our partner, Atmel Corporation, announced on 4 February that it is exiting its XSense business. This is an important milestone in the completion of our own strategic review, which remains on track to be completed by 31 March 2015. CIT will continue to support Atmel during its final production phase. We do not expect this ongoing support to have any further material financial impact on the group."

The group says net debt at 31 March is set to be in line with the board's expectations. The re-financing of the medium term loan facilities is progressing well and is expected to be completed during the course of the next few months.

It adds: "The board is pleased with the Group's progress in the current financial year and believes that it is well positioned to deliver strong growth in the next financial year and beyond." Carclo also announces its intention to commence a capital reorganisation process to cancel its share premium account and capital redemption reserve in order to augment its distributable reserves and enable future dividends to be paid. A circular containing details of this process will be published and sent to shareholders shortly, together with a notice to convene a general meeting to obtain shareholder approval prior to seeking court confirmation for the capital reorganisation.


At 8:27am: [LON:CAR] Carclo PLC share price was +12.38p at 112.63p



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