Carclo takes the smart option

The possibility that Carclo , a West Yorkshire-based high-tech plastics specialist, could break into the smartphone and tablet computer market with its range of sensors for touch screen applications has propelled investor interest. However, the details of the firm that is installing and selling Carclo's technology remain opaque due to commercial confidentiality agreements, but the interims showed the first tangible returns from smartphone-related business with the company due to earn a $10m (£6.3m) milestone payment by the end of the year.

Despite the enormous opportunity in tablets and smartphones, Carclo's bread and butter technical plastics division is still the core of the business and sales here came under pressure during the half. Revenues fell 7 per cent to £26.4m, with a £0.6m fall in operating profits to £1.3m. Management believes that the timing of sales will even out over the full year. Additionally, sales at LED Technologies were lower at £11.5m, although the performance is not really comparable with last year due to the division's exit from car communications.

Chief executive Ian Williamson said the market was very varied. However, the first contribution to profits from the restructured conductive inject technology business should come through in the fourth quarter when the first tablet computers containing Carclo's sensor technology are rolled out.

The production delays have prompted broker N+1 Singer to cut its full-year profit forecast from £9.5m to £7.4m, giving a revised EPS of 9p.

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