Circuit technology to boost Carclo

Carclo, the specialist plastic components manufacturer, is expecting revenues to rise substantially this year and next as its conductive inkjet technology products start to come on stream.

Ian Williamson, chief executive, said the company would demonstrate later this year that its pilot line in Cambridge could run at speed. He would then expect to get a further payment from Atmel, the US semiconductor company that has agreed to take minimum volumes of products using the technology for application to touchscreens.

“However, there are strong indications that we are not looking at minimum volumes,” he said. The technology made touchscreens more efficient at a fraction of the cost of existing products and was “where all consumer electronic devices need to be.”

The patented technology uses inkjet heads to print copper circuitry on glass as well as on flexible surfaces. The company raised £3.5m through a placing at 128½p a share in December, when it signed the agreement with Atmel to complete technical and commercial development of conductive inkjet technology for touchscreens. The shares closed on Tuesday up 3p at 160½p.

Conductive inkjet technology contributed little to total revenues of £81.1m in the year to March 31, down from £87.4m previously, reflecting the company’s withdrawal from low-margin plastic components for the automotive industry.

Underlying operating profits – mainly derived from its high-technology plastic parts for the medical diagnostics industry – eased from £5.5m to £5.3m. At the pre-tax level, profits rose to £4.6m from £3.7m previously, when there was a £2.4m exceptional charge, mainly for the closure of the automotive plastics factory in Wales.

Basic earnings per share rose from 5.1p to 5.9p. The board is proposing an unchanged final dividend of 1.35p, maintaining the total pay-out for the year at 2p.