Carclo plc
09 September 2026
09 September 2026
Carclo plc
AGM - Trading Update
Carclo plc ("Carclo" or the "Group"), a global precision engineering group that designs, industrialises and manufactures highly reliable solutions for Life Sciences, Aerospace and Safety & Security markets, announces the following trading update ahead of its Annual General Meeting, which will be held today, Wednesday 9 September 2026.
Highlights
· Strong margin performance year to date driven by continued focus on operational excellence and cost control
· Underlying operating profit and return on sales remain in line with management's expectations
· Volumes increased as the business moved into Q2 following a slow Q1 in the CTP US business
· Continued strong performance in our Speciality business, driven by robust demand from the Aerospace market
· Board's expectations for the full year remain unchanged
Group Financial Performance
Trading since 1 April 2026 has been characterised by strong margin performance, with underlying operating profit and return on sales ("ROS") both in line with management's expectations. Year to date revenue was slightly behind the same period in the prior year, reflecting the phasing of Design and Engineering ("D&E") tooling programmes and the previously reported slow first quarter for Manufacturing Solutions ("MS") volumes in the CTP US business. As expected, volumes have started to recover as the business moves into the second quarter.
In Aerospace, demand remains strong in both civil and defence applications, and we continue to grow the business. In Life Sciences, parts of the portfolio continue to perform well, while demand from certain diagnostics customers remains softer. We continue to work with those customers on inventory levels and expect this to reverse over the remainder of the year.
The margin improvement reflects the focus the Group has taken on product mix, pricing strategy and higher levels of automation along with disciplined actions on cost management.
At the end of July, Net Debt is higher than FY26 year end due to both the extension of leases to existing US properties and the timing of working capital flows. The working capital outflow is expected to reverse by the end of Q2 and as such Net Debt excluding leases at the end of the first half is anticipated to be in line with FY26.
CTP Manufacturing Solutions
EMEA operations continue to perform strongly, with top line growth against the prior year and solid margins driven by the UK, where we remain focused on high volume, highly automated solutions. In the US, customer inventory management and slower project releases held volumes back in Q1, and we expect this to recover over the remainder of the year as those conditions ease. MS volumes showed positive growth compared to the same period last year as the business moved into Q2.
CTP Design and Engineering
D&E revenue year to date is broadly in line with the prior year, with margins ahead of prior year. Customer activity in the US is higher than last year, continuing the momentum of a stronger second half in FY26. Phasing of tooling programmes weights D&E revenue towards the second half, and EMEA D&E is expected to recover over the remainder of the year.
Speciality
The Speciality business continues to grow strongly, with revenue and margin both ahead of the prior year on robust Aerospace demand, leading the Group's return to volume growth in Q2. Following investment in new machinery, the division has added precision machining capability to its French operations, giving a consistent, combined European offering.
Outlook
As previously reported, trading is expected to be weighted towards the second half as demand strengthens through the remainder of 2026 and early 2027. Order activity and new programme launches support positive organic revenue growth for the full year. The Board's expectations for the full year remain unchanged, and in line with the previously communicated targets under the Precision 2030 growth plan.
Frank Doorenbosch, Chief Executive Officer, commented:
"Precision 2030 is about delivering growth from a disciplined platform, and the base is holding up well: margins, operating profit and return on sales are all ahead of last year on slightly lower revenue, with Speciality growing strongly on Aerospace demand. Volumes increased as we moved into the second quarter of the new financial year. Our focus now is on converting the tooling pipeline into the revenue growth the plan needs. Our expectations for the full year are unchanged."
The Group expects to announce its interim results for the six months ending 30 September 2026 in November 2026.
Enquiries:
Carclo plc +44 (0) 20 8685 0500
Frank Doorenbosch, Chief Executive Officer
Ian Tichias, Chief Financial Officer
Pheobe Greenwood, Company Secretary
About Carclo plc:
Carclo plc is a public company whose shares are quoted on the Main Market of the London Stock Exchange. Carclo is a global precision engineering group that designs, industrialises and manufactures highly reliable solutions for Life Sciences, Aerospace and Safety & Security markets, manufactured in-region, for-region.
LEI: 21380078MEM399JPI956
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