Shares in Carclo PLC (LON:CAR) edged lower on Tuesday after the plastic components manufacturer reported a dive in profits during a “disappointing” year of trading.
A profit warning back in January helped to prepare investors, with Carclo stating at the time that unexpected delays in securing big contracts in its Technical Plastics and Wipac units would negatively affect results.
READ: Carclo plummets on profit warning
For the 12 months through to March 31, the Yorkshire-based group posted a 6% rise in revenues to £146.2mln (2017: £138.2mln).
But pre-tax profits fell by almost a fifth to £9.9mln (2017: £12.0mln), with Carclo also blaming “some weaknesses in operational performance” for the dip.
“While the year has been disappointing, the board remains confident in the underlying strength of the group and its people to recapture the momentum of recent years and to drive significant value for our shareholders in the future,” said chairman Michael Derbyshire, who is to retire next month.
He added: “The group has taken immediate action to improve operational performance and following a full operational review has implemented a significant number of improvements across its operations.”
Shares fell 3.8% to 86.2p on Tuesday.