LONDON (ShareCast) - (ShareCast News) - UK-based manufacturer Carclo posted a strong performance from its LED technologies wing in the first half, offsetting a decrease in profits from it technical plastics operations.
Carclo's LED technologies segment performed ahead of the board's expectations in the six months leading to 30 September, reporting a 24% increase in revenues to £25.6m and a 16% uptick in underlying operating profit to £3.4m.

However, the group's technical plastics business witnessed a 6% decrease in underlying profit to £3.2m as the division had a "challenging start to the financial year" with several key new programmes being delayed into the second half.

Michael Derbyshire, Carclo's chairman, said, "The operational issues experienced within the first half of the year within Technical Plastics are now largely resolved and as a result the division's operating margins are expected to improve significantly in the second half, boosted by tooling and programme profitability."

Net debt rose from £26m on 31 March to £29.6m at the end of the half, which the group said reflected the "timing of capital investment and the payment profile of ongoing design, development and tooling programmes".

Earnings per share for the period came in at 4.5p, a significant increase on the previous year's loss of 5.6p.

Looking forward, Derbyshire said, "The board anticipates that the group will trade in line with its expectations for the full year, with all three divisions set to have a stronger second half performance, and the group remains on track to grow substantially over the medium term."

As of 1315 GMT, shares had gained 1.03% to 142.20p.

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