Carclo shares bounce back

Shares in life sciences and aerospace components supplier Carclo (LON: CAR) jumped 62.3% to 12.05p after a better than expected trading performance in the second half. Carclo is on course to return to profit in 2024-25.

There was a particularly strong fourth quarter, which reflects the focus on improving margins and the financial status of the business. The benefits of the restructuring are starting to show through. Net debt fell from £34.3m to £30.4m at the end of March 2024.

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Carclo Technical Plastics is exiting unprofitable and non-core operations. The market conditions are tough, but the division has been resilient. The European operations have been restructured and the US businesses will be consolidated. This should be completed in the next six months.

The aerospace division is winning business in South Asia. The product range is being broadened.

The current focus is the US restructuring, and this will benefit profitability this year and in the future. The share price is the highest it has been since November 2023, but it is 44.6% lower than five years ago and 93.4% down over 10 years.  

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