Carclo, a global manufacturer of fine injection moulded plastic parts for the medical, automotive lighting, and optics markets, has issued a strategy update ahead of the release of its yearly financial results.
The performance in the first weeks of the current financial years and the Group’s net levels have been broadly as anticipated, with the Technical Plastics and Aerospace Divisions performing strongly.
However, operating losses at Wipac, the main operating business in the Group’s LED Technologies Division, have increased, with the business continuing to incur additional costs to meet growing customer demand.
In light of the ongoing challenges, the Carclo Board is reviewing its strategy for the business, and as part of the review, Wipac is working with its customers to develop a plan to refocus the operation on its historic low-volume vehicle markets where it has previously been successful.
Once implemented, the revised strategy is likely to have the effect of reducing Wipac’s future sales revenue, but would also significantly reduce the Group’s cash requirements for working capital and capital expenditure.