Carclo H2 profits seen 'materially lower' as customer cancels supply contract

15th Dec 2022 08:08

(Sharecast News) - Engineered solutions group Carclo warned on Thursday that a new customer supply contract has been cancelled, with the likely financial impact on its full-year results still "being quantified".

Carclo stated that "constructive discussions" with the unnamed customer regarding an "appropriate commercial settlement" were ongoing but said second-half profits would be "materially lower" than previous expectations no matter what the outcome.

The London-listed group added that its lending bank remained "supportive" and was actively engaged in discussions as to what amendments may be required to address the impact on its banking covenants.

As of 0840 GMT, Carclo shares had sunk 29.27% to 10.61p.

Reporting by Iain Gilbert at Sharecast.com