LONDON (ShareCast) - Carclo shares lost a third of their value on Wednesday morning after the group said lower than expected sales in its Conductive Inkjet Technology (CIT) business would reduce the forecast profitability in the second half.

Ramp-up in production on certain CIT programmes was slower than anticipated, Carclo explained, althought it stressed that sales of coated film would still be ahead of the first half.

Overall, the group's operating businesses experienced a strong second half, but the company warned of pricing pressure in the touch solutions market as a result of increased competition.

"While we expect developments in the touch sensor market to become clearer during 2014, this is likely to reduce coated film revenues and margins versus our previous estimates," it warned.

"The product capabilities of XSense are strong and we remain confident that it can gain a significant market share in this rapidly growing market."

The Technical Plastics business and the LED Technologies Division were both anticipating further awards in the coming months, it added.

The group stressed its balance sheet remained strong, saying it "looks forward to sales and profits progression across the group in the coming financial year".

NR

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