StockMarketWire.com - Carclo has warned that its full year performance was expected to be significantly lower than previous forecasts.

It said the stronger second half performance, anticipated at the time of the interim results in November, was not now expected to be achieved.

An update said: 'While the previously reported operational issues at Technical Plastics have been addressed, there has been an unexpected delay in the awarding of two large tooling and automation contracts.

'In addition, a large and long standing non-medical customer which had been indicating a strong second half for our moulded components has not yet increased its orders.

'The impact of these factors is such that the division's profit for the current year is now expected to be significantly below expectations.

'Within LED Technologies, the Group's LED super car lighting business has performed as anticipated and new product launches have continued to be made on time.

'However, while the Wipac business has continued to operate well, delays in the award of three new contracts are expected to materially reduce the division's profit for the current year. It is still anticipated that Wipac will be successful in winning a number of these programmes despite the uncertainty on timing.'

Carclo said the board now expected the group's profits for the year ending 31 Mar to be significantly lower than its previous forecasts.

And it said that as a consequence of some of these delayed projects and lower customer orders, the board had now reduced its profit expectations for the 2018-19 financial year albeit these revised expectations would still represent healthy year on year growth.

The group also announced board changes.

It said that after 14 years as group finance director Robert Brooksbank was leaving on 31 Mar to pursue other career and business opportunities.

The group said the board was initiating the process to recruit a new finance director and in the meantime group financial controller and company secretary, Richard Ottaway, would act as the interim chief financial officer from 1 Apr.

In addition, the board announced that Michael Derbyshire would retire from the board at the group's annual general meeting in July 2018 after nearly six years as chairman and over 12 years as a non-executive director.

Mark Rollins, who joined the board as non-executive director on 1 Jan, will become chairman at the conclusion of the AGM.

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