Carclo Engineering Group has bounced back from two years of falling sales with figures for the full year to 31 March showing turnover up 24% to £181.2m.
Pre-tax profits rose 29% to £17.5m, spurred on by a £7.7m contribution to profit before interest from the newly established technical plastics division.
But the upbeat results disguise serious fall-out from the collapse of the Asian economies. Carclo’s specialist wires business for textiles saw a ‘temporary collapse’ in demand from Asian markets serviced from the UK, said chief executive Ian Williamson.
‘While Asian demand is recovering, export credit insurance is not available and trade finance is very difficult for our customers to obtain,’ he said. ‘It will be some time before normal trading can be resumed.’
The technical plastics division has overtaken Carclo’s specialist wires and precision engineering business in terms of both turnover and profits, thanks to the acquisition last March of Silleck and Davall from EIS Group for £26m.
The division, now trading as CTP (Carclo Technical Plastics) has become one of the UK’s biggest technical trade moulders.
CTP Silleck and CTP Davall contributed £41.6m to the £71.6m turnover in this division. Automotive plastics supplier Wipac was acquired after the year end.
Specialist wire accounted for £67m of group turnover, precision engineering for the remaining £42.5m.
Within this division, Lee Steel Strip recovered to show an increase in pre-tax profit of 29% to £17.5m.