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Carclo PLC shares sank on Friday as it reported lower revenue for the first half of the year, but backed its guidance as it swung to a profit. The Mitcham, London-based provider of precision components said revenue fell 6.1% to £57.2 million in the six months to the end of September from £61.0 million a year ago. In response, shares in Carclo were down 12% at 62.24 pence on Friday morning in London. The company swung to a pretax profit of £1.5 million from a loss of £136,000 a year prior. The firm said manufacturing process optimisation and improved asset utilisation and efficiency reduced costs, as operating profit more than doubled to £5.2 million from £2.4 million. Revenue fell due to a reduction in Design & Engineering sales, despite growth in Manufacturing Solutions. Carclo did not declare a dividend as it said it believes prioritising investment to enable growth is currently the most appropriate use of capital. Looking ahead, the company said its expectations for the full year remain unchanged. It expects D&E revenue to ‘slightly increase’ in the second half, alongside ‘continued margin expansion and positive cash generation’. The firm said initiatives for medium-term growth are focused on expanding its presence in the Life Sciences sector and sustaining growth within the Speciality division, particularly in aerospace. ‘I’m delighted with the progress we continue to make across the business... The business portfolio delivers a solid platform from which it can continue to grow in a sustainable and profitable manner,’ said Chief Executive Officer Frank Doorenbosch. ‘Significant opportunities exist in all our key market sectors. The strategic focus is to continue the journey from being a volume provider to a focussed engineering business providing value solutions, which will contribute to our ongoing margin expansion and positive cash generation.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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