Shares in plastics firm lose nearly a third after profit warning issued

SHARES IN plastics firm Carclo plunged nearly 30 per cent after it said full year results will be “significantly below” its previous expectations.

The Ossett-based firm blamed problems at its Wipac LED Technologies division, which has struggled to meet customer requirements.

The situation deteriorated in the third quarter as the shortterm operational growing pains continued longer than it had anticipated as demand grew.

It said the consequences of this have been significant, with poor customer service leading to additional unplanned costs and to delays in new programme awards.

Carclo said chief executive Chris Malley has resigned from the board and he will focus all his efforts on driving the recent improvement in customer arrears at Wipac.

The firm said progress is being made in reducing the customer order backlog, additional machine capacity coming on stream and experienced consultants being brought in.

The group said it expects this development process will take some time to complete.

The additional costs are expected to gradually decline over the coming months as the new ways of working are embedded into the business.

Mr Malley will take on the role of LED Technologies divisional chief executive with immediate effect.

Chairman Mark Rollins will assume the role of executive chairman until a new group chief executive can be appointed.

An executive search firm to lead this recruitment process will be appointed by the board shortly.