Carclo’s Strategic Overhaul Drives Profit Jump in FY25

Carclo plc (LON:CAR) has announced its FY25 results on Friday, showcasing a turnaround driven by strategic restructuring and operational efficiencies.

The report highlights significant improvements in profitability and a strengthened financial position, setting a solid foundation for future growth.

Carclo shares surged at the beginning of Friday's session, hitting a high of 51p. However, the stock has since (as of 08:40 BST) pulled back and is flat on the day.

Revenue saw a decrease of 8.6% to £121.2 million (FY24: £132.7 million), primarily due to the strategic exit from short-run product lines in the US and a reduction in Design & Engineering revenue. However, this was partially offset by like-for-like growth in Manufacturing Solutions revenue.

Underlying operating profit surged by 48.5% to £9.8 million (FY24: £6.6 million), and underlying EBITDA increased by 12.3% to £16.4 million (FY24: £14.6 million). Underlying basic earnings per share experienced a substantial 430% increase, reaching 4.3p (FY24: 1.0p).

The company's cash generation from operations remained strong at £19.1 million (FY24: £18.6 million). Net debt was reduced by 34.9% to £19.2 million (FY24: £29.5 million), fortifying the balance sheet.

Statutory operating profit jumped to £7.6 million (FY24: £1.7 million), and the statutory profit for the year was £0.9 million, a stark contrast to the previous year's loss of £3.4 million.

The figures show an improvement in Carclo's financial health, driven by enhanced manufacturing processes, increased asset utilization, and improved customer pricing.

CEO Frank Doorenbosch commented, “I'm pleased to report the meaningful progress the business has made in delivering strong results with improved performance… With a clear vision, a robust strategy, and our commitment to our customers and employees, we are confident in our ability to navigate the challenges ahead as a stronger, more resilient organisation.”

Looking ahead, Carclo expects to continue its positive trajectory through FY26 with continued margin expansion and positive cash generation, despite an increasingly complex global backdrop.

“The ongoing operational excellence programme and maintenance of the disciplined approach to cash management and the ongoing operational excellence programme are expected to drive sustained financial resilience and strategic flexibility,” the company stated.

In the medium term, the company said it will focus on accelerating expansion in the Life Sciences sector, while it noted that its long-term strategic partnerships with key clients and the markets are growing.