Carclo PLC (LON:CAR) is positioned with attractive long-term growth prospects after the disposal of a loss-making LED business and despite the uncertainties of the coronavirus (COVID-19) pandemic, according to the specialist manufacturer's chairman Joe Oatley.
Full-year results released today show £110.5mln of revenue from continuing operations with the majority of that (around £103mln) generated in the Technical Plastics division, leading to underlying profit of £7.3mln in the continuing business.
The discontinued and disposed operations were, meanwhile, marked in the results with a £9.5mln loss, net of tax. Statutory operating profit was meanwhile reported at £1.8mln, and it made a statutory pre-tax loss of £500,000 from continuing operations.
Carclo noted that exiting the loss-making LED reduced net debt and the company’s pension deficit, by £5.5mln and £3.5mln respectively.
"Despite a challenging period for the group, the continuing businesses performed strongly in 2020,” Oatley said in a statement.
“Following the exit of the loss-making LED business and the completion of a three-year refinancing agreement with the group's lending bank and pension trustees, Carclo now has a more stable platform from which to develop the business.”
He added: “Whilst the Covid-19 situation creates some uncertainty over the near-term performance of the group, the board believes that the operating businesses within the group have attractive long-term growth prospects, in particular within the medical diagnostics market where the CTP business is well positioned.”
In London, Carclo shares gained 1.34% in Tuesday’s early deals to change hands at 13.68p.