Interim results from Carclo show a slip in pre-tax profits for the Ossett-based engineering group, but the disposal of its Wipac businesses look set to “stabilize the business” in the long-term.
For the financial year to 31 March 2020, the company posted a statutory loss before tax of £5.6 million compared with £3.4 million for the same period in the previous year.
However, revenue from continuing operations increased by 12% to £56 million, while underlying operating profit from continued operations was up by 56% to £3.3 million.
The company’s loss-making Wipac businesses, which were exited after the period-end, continued to have “significant performance issues”. The two businesses comprising Wipac reported a combined loss, before exceptional costs, of £2.7 million.
“The strong results of the continuing businesses, along with the exit from the Wipac businesses after the period end, demonstrate the clear progress being made to stabilize the business,” said Carclo Chairman Mark Rollins.
“Whilst significant challenges remain in reaching agreement on the long-term funding of Carclo with the lending bank and pension trustee, the encouraging operational performances of the Technical Plastics and Aerospace Divisions provide a foundation on which a sustainable future for the Group might be developed.”