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Manufacturing & engineering

Carclo jumps as restructuring remains ahead of schedule

Engineering firm Carclo (LSE:CAR) jumped over 9% on Thursday morning after signalling an operational restructuring in the US was continuing to progress ahead of schedule.

Final production runs have now been completed at the group’s Tuscon site, leaving the focus now on the technical plastics firm’s turnaround strategy at its Pennsylvania facility, a statement said on Thursday.

This has led to expected growth in margins, Carclo (LSE:CAR) added, with improvement in overall net debt to underlying earnings also being reported.

Carclo (LSE:CAR) said its Europe, Middle East and Africa segment had emerged from a new operational set-up “even stronger” too.

Expectations for margin growth over the coming years were held as a result, ahead of plans to generate a 10% return on sales and 25% return on capital employed.

Shares climbed 13.5% to 34.62p on Thursday.

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