21380078MEM399JPI956 2022-03-31 21380078MEM399JPI956 2021-03-31 21380078MEM399JPI956 2021-04-01 2022-03-31 21380078MEM399JPI956 2020-04-01 2021-03-31 21380078MEM399JPI956 2020-03-31 21380078MEM399JPI956 2020-04-01 2021-03-31 ifrs-full:IssuedCapitalMember 21380078MEM399JPI956 2020-04-01 2021-03-31 ifrs-full:SharePremiumMember 21380078MEM399JPI956 2020-04-01 2021-03-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 21380078MEM399JPI956 2020-04-01 2021-03-31 ifrs-full:RetainedEarningsMember 21380078MEM399JPI956 2020-04-01 2021-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 21380078MEM399JPI956 2020-04-01 2021-03-31 ifrs-full:NoncontrollingInterestsMember 21380078MEM399JPI956 2021-04-01 2022-03-31 ifrs-full:IssuedCapitalMember 21380078MEM399JPI956 2021-04-01 2022-03-31 ifrs-full:SharePremiumMember 21380078MEM399JPI956 2021-04-01 2022-03-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 21380078MEM399JPI956 2021-04-01 2022-03-31 ifrs-full:RetainedEarningsMember 21380078MEM399JPI956 2021-04-01 2022-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 21380078MEM399JPI956 2021-04-01 2022-03-31 ifrs-full:NoncontrollingInterestsMember 21380078MEM399JPI956 2020-03-31 ifrs-full:IssuedCapitalMember 21380078MEM399JPI956 2020-03-31 ifrs-full:SharePremiumMember 21380078MEM399JPI956 2020-03-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 21380078MEM399JPI956 2020-03-31 ifrs-full:RetainedEarningsMember 21380078MEM399JPI956 2020-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 21380078MEM399JPI956 2020-03-31 ifrs-full:NoncontrollingInterestsMember 21380078MEM399JPI956 2021-03-31 ifrs-full:IssuedCapitalMember 21380078MEM399JPI956 2021-03-31 ifrs-full:SharePremiumMember 21380078MEM399JPI956 2021-03-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 21380078MEM399JPI956 2021-03-31 ifrs-full:RetainedEarningsMember 21380078MEM399JPI956 2021-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 21380078MEM399JPI956 2021-03-31 ifrs-full:NoncontrollingInterestsMember 21380078MEM399JPI956 2022-03-31 ifrs-full:IssuedCapitalMember 21380078MEM399JPI956 2022-03-31 ifrs-full:SharePremiumMember 21380078MEM399JPI956 2022-03-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 21380078MEM399JPI956 2022-03-31 ifrs-full:RetainedEarningsMember 21380078MEM399JPI956 2022-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 21380078MEM399JPI956 2022-03-31 ifrs-full:NoncontrollingInterestsMember iso4217:GBP iso4217:GBP xbrli:shares
Carclo plc
Annual repor
t and accounts 2
0
22
G
R
OW
I
N
G
TO
P
L
A
N
Car
clo plc
Annual r
eport and account
s 202
2
C
ONTENTS
OUR PURPOSE
STRA
TEGIC REPORT
Our p
urp
os
e
IFC
Our highlights
01
At a glan
ce
02
E
xecut
ive Chai
r’s st
ateme
nt
04
Our m
ar
kets
10
Bus
ines
s mo
del & s
trate
gy
1
2
Our stakeholders
1
4
Key per
for
man
ce indi
cator
s
1
6
Responsible operations
1
8
Fina
nce rev
iew
26
Prin
cipa
l ris
ks a
nd un
cer
t
ainti
es
31
Viability statement
39
FINANCIAL ST
A
TEMENTS
State
ment of D
ire
cto
rs’
responsibili
ties 80
Independent audit
or’s
repor
t
81
Cons
oli
dated i
ncom
e st
atem
ent
88
Cons
oli
dated s
tatem
ent of co
mpreh
ens
ive incom
e
89
Cons
oli
dated s
tatem
ent of ﬁn
ancia
l po
siti
on
90
Cons
oli
dated s
tatem
ent of cha
nge
s in eq
uit
y
91
Cons
oli
dated s
t
ateme
nt of ca
sh ﬂ
ows
92
Note
s to the co
nso
lidate
d ﬁna
ncia
l st
ateme
nts
93
Comp
any ba
lan
ce she
et
1
40
Comp
any st
atem
ent of cha
nge
s in equ
it
y
1
4
1
Notes to t
he Com
pany ﬁna
ncia
l st
ateme
nts
1
4
2
Five year su
mma
r
y
1
51
ADDITIONAL INFORMA
TION
Infor
matio
n for sha
reh
old
er
s
1
53
Shareholder enquiries
1
55
Glossar
y 1
55
Comp
any an
d sha
reho
lder i
nform
ation
1
56
Fin
anci
al cale
ndar
IBC
CORPORA
TE GO
VERNANCE
Chair’s
introductio
n
4
1
Boa
rd of Di
rec
tor
s
4
4
Stat
ement of
corporate go
vernanc
e
46
Audi
t and R
isk Co
mmit
te
e repo
r
t
50
Nomina
tion Com
mittee report
54
Dire
cto
rs’ rem
une
ratio
n repo
r
t
57
Dire
cto
rs’ rep
or
t
7
6
F
orward-looking statements
Cer
t
ain s
tate
ment
s mad
e in thi
s annu
al rep
or
t a
nd acco
unts
are fo
r
ward
-lo
oki
ng s
tatem
ent
s. Such s
tate
ment
s are
ba
se
don curr
ent ex
pe
ct
atio
ns an
d are su
bje
ct to a num
ber
of ris
ks a
nd un
cer
t
aint
ies th
at could c
aus
e act
ual event
s to
dif
fe
r materi
ally f
rom a
ny exp
ec
ted f
uture even
ts or re
sul
ts
refer
red to in th
es
e for
wa
rd-lo
ok
ing s
tate
ment
s.
Alternativ
e performance measures
Alte
rnati
ve per
fo
rma
nce mea
su
res a
re deﬁne
d in th
e glo
ssa
r
y
on pa
ge 155. A reconciliat
ion to s
tatu
tor
y nu
mbe
rs i
s includ
ed
on pa
ge 153. The Dire
cto
rs b
eli
eve that al
ternat
ive
per
formanc
e measur
es pro
vide a
more use
ful c
omparison
ofbus
ine
ss tre
nds a
nd pe
r
for
man
ce. The term “unde
rly
ing”
isnot d
eﬁned u
nde
r IFRS a
nd may not be co
mpa
ra
ble w
ith
similarly titled measures us
ed by
other companies.
w
w
w
.c
a
r
c
l
o.c
o.
u
k
T
o be a t
rust
ed
andc
oll
abora
ti
v
e
pr
o
vider
o
f
value-
add
ing
engine
ered
s
olutio
ns
f
or
the
m
edic
al,
optical
a
nd
aerospace
indus
t
rie
s,
c
re
a
ting
v
al
ue f
o
ral
lou
r
st
a
k
eholder
s.
Rea
d mor
e ab
out o
ur
purp
ose
an
d
value
s
on pa
ge 2
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
01
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
OUR HIGHLIGHTS
£6.
8m
2021:
£11.2m
£21.5m
2021:
£20
.5m
£32.4m
2021:
£27
.6m
Cash generat
ed from operations
(£m)
Net debt ex
cluding
leaseliabilities (£m)
Net debt
(£m)
3.1p
2021:
2.4p
Re
v
enue from continuing
operations (£m)
Underlying earnings per share
- basic- from continuing oper
ations (p)
Underlying operating
proﬁt
1
(£m)
Underlying EBITD
A
3
(£m)
Operating proﬁt bef
ore
ex
ceptional items
2
(£m)
Statutory operating proﬁt
(£m)
£128
.6m
2021:
£107
.6m
£6.1m
2021:
£4.8m
£8
.2m
2021:
£4.8m
£8
.
9m
2021:
£9
.3m
£13.1m
2021:
£10
.8m
•
Resil
ient reven
ue pe
r
form
ance d
esp
ite the co
ntinu
ed
challengi
ng operating
envir
onment f
ollowi
ng C
O
VID-
1
9
•
Revenue f
rom conti
nuin
g ope
rati
ons in
creas
ed by 19
.5%
to £1
28.6 mil
lion (202
1
: £10
7
.6 million)
•
Underlying operat
ing pro
ﬁt from
contin
uing operat
ions
increa
se
d by 27
.
1% to £
6.
1 mil
lion (202
1
: £4.8millio
n
)
•
Ca
sh ge
ner
ated fr
om op
erat
ions w
as £6.8 mil
lion (202
1
:
£1
1
.2 million)
•
Statu
tor
y op
er
ating p
roﬁt fro
m conti
nuing o
per
atio
ns
£8.
9mil
lion (202
1
: £9
.
3 milli
on) include
d £2.
1 m
illio
n one
-of
f
credi
t ar
ising f
rom th
e forgi
venes
s of US gover
nme
nt
C
OVID
support loans
•
Net e
xceptio
nal g
ain in t
he year of £0.
7 millio
n (20
2
1
:
£4
.5mil
lion)
, reﬂe
ct
s a £0
.
9 mi
llio
n (20
21
: £6.5 millio
n
)
pen
sio
n credit, p
rim
ar
ily fro
m the int
rodu
ct
ion of
ﬂex
ib
leear
ly ret
ireme
nt be
neﬁt
s, of
f
set by £0
.
1 mil
lion
(20
21
: £2.0millio
n
) res
tru
ct
urin
g cos
ts
•
Fir
st f
ull tr
adin
g year for ref
resh
ed Bo
ard a
nd ma
nage
ment
•
Fur
ther c
ap
ita
l inves
tmen
t grow
th for l
ong
er-
ter
m retur
ns
in the T
echnic
al Pl
as
tic
s busi
nes
s
1.
Und
erl
yin
g op
er
atin
g proﬁ
t is de
ﬁne
d a
s ope
rat
ing p
roﬁt b
efo
re dis
cont
inu
ed o
per
ati
ons
, sep
ar
atel
y dis
clo
se
d item
s an
d exce
pti
ona
l ite
ms.
Areco
nci
liati
on to s
tat
uto
r
y ﬁgu
res i
s give
n on pa
ge 153.
2.
O
per
ati
ng pr
oﬁt b
efore e
xce
ptio
nal i
tem
s is un
der
ly
ing o
per
ati
ng pr
oﬁt b
efore d
is
cont
inue
d op
er
atio
ns a
nd e
xcept
ion
al it
ems. Ar
eco
ncil
iatio
n
tost
atu
tor
y ﬁ
gure
s is gi
ven o
n pag
e 1
53.
3.
Un
der
ly
ing ea
rn
ing
s bef
ore in
tere
st, t
a
x
atio
n, de
pre
ciati
on a
nd a
mor
t
is
atio
n (“
uEB
ITDA
”) is d
eﬁne
d a
s EBITDA b
efor
e dis
cont
inu
ed op
er
atio
ns,
se
par
atel
y dis
clo
se
d ite
ms an
d exc
epti
ona
l ite
ms. A re
con
cili
atio
n to st
atu
tor
y ﬁ
gure
s is gi
ven on p
ag
e 1
53.
02
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
A
T A GL
ANCE
Carclo plc is a global manufactur
er
, principally of ne toler
ance injection moulded plastic
part
s for the medical, diagnostic
s, electr
onics, optics and automotive safet
y mark
et
s.
OUR PUR
POSE AN
D V
AL
U
ES:
WHA
T WE DO
OUR DIVISIO
NS:
OUR V
AL
UES
Ou
r pu
rpos
e is t
o be a
trusted and collaborativ
e
pro
vider
o
f val
ue-
ad
di
n
g en
gi
n
eer
ed sol
ut
ion
s f
or
the
me
d
ic
a
l,
opt
ica
l
and
ae
rospace
indus
tr
ies,
c
re
at
i
ng v
alue f
oral
l ou
r stak
ehol
de
rs.
EX
CELLENCE
We continua
lly s
tri
veto
imp
rove eve
r
y a
s
pe
ct
of ourb
usin
ess
.
ETHICS
We oper
ate with
integ
rit
y a
nd in a
transpar
ent
and
principled m
anner
.
CUSTOMER
We put the cu
stom
er
atthe h
ear
t ofw
hat
wedo.
PEOPLE
We do what we say
andwe wo
rk to
geth
er
wit
h mutu
al res
pe
ct
andt
rus
t.
SAFETY
We oper
ate
safe
ly
,p
rotec
ting
pe
opl
eand t
he
environ
ment.
T
echnical Plastics
Aer
ospace
Ca
rc
lo T
e
ch
nic
a
l Pla
st
ic
s (“CTP
”
) is a le
ad
ing g
lo
ba
l
manufacturer of
ﬁne toler
ance injection
moulded plastic
pa
rt
s fo
r t
he me
di
ca
l, di
agn
os
tic
s, e
le
ct
ro
nic
s, o
pti
cs
an
daut
om
ot
ive sa
fet
y m
arke
ts
.
The Ae
ro
sp
ace d
ivi
si
on i
s a ma
rket l
ead
er i
nca
bl
e
as
se
mb
lie
s a
nd sp
ec
ia
li
st ma
ch
ine
d pa
r
ts t
o Eur
op
ea
n
commercial and militar
y aerospace marke
ts.
w
w
w.ca
rc
lo
-
c
tp.c
o.uk
w
ww.jacot
tet-indus
tr
ie.com
ww
w.bruntons.co.
uk
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
03
Carclo plc
An
nual r
epo
r
t an
d accou
nts 2022
Our business operates acr
oss three differ
ent continents
to pro
vide local support to our global customers.
WHE
RE WE O
PER
A
TE:
CTP
Ca
rre
ra In
c.
Latrobe,
Pennsy
lvani
a, USA
CTP
Ca
rre
ra In
c.
Export
,
Pennsy
lvani
a, USA
CTP
Ca
rre
ra In
c.
T
ucson, Arizona,
USA
CTP
Ca
rre
ra In
c.
De
rr
y, New
Hampshire, USA
T
echnica
l Plastics
T
echnica
l Plastics
T
echnica
l Plastics
T
echnica
l Plastics
USA
Ca
rc
lo T
e
ch
nic
a
l
Plastics Ltd
Ay
l
e
s
b
u
r
y,
UK
Br
unt
ons A
ero
Pro
duc
ts Lt
d
Musselburgh,
Sc
ot
la
nd
, UK
Jac
ot
te
t
Industrie SAS
Chartre
s,
Fra
n
c
e
Ca
rc
lo T
e
ch
nic
a
l
Pla
st
ic
s Ltd
Mitcham,
UK
T
echnica
l Plastics
Aerospace
T
echnica
l Plastics
Aerospace
T
echnica
l Plastics
Ca
rc
lo T
e
ch
nic
a
l
Pla
st
ic
s P
vt Lt
d
Bangalore,
India
CTP
T
a
ic
ang C
o Ltd
T
aica
ng,
P
.R. China
T
echnica
l Plastics
T
echnica
l Plastics
Europe
Asia
Carclo T
echnica
l
Pla
st
ic
s –
Br
no s.
r
.o
Br
no,
Cze
c
hRep
ub
lic
04
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
Despite the challenging macroeconomic
back
drop
, the G
roup has deliver
ed a strong
performance for the year
.
Nick Sanders
Executive Chair
I am p
lea
sed to r
epo
r
t that th
e Grou
p has
del
ivered a s
tro
ng pe
r
form
ance fo
r the
year
, with reven
ue grow
th a
head of
previ
ous e
xp
ec
tati
ons a
nd a sig
niﬁc
ant
increa
se i
n und
erly
ing p
roﬁt de
spi
te the
challenging macroeconomic back
drop.
The G
roup b
ala
nce she
et al
so
strengthened c
onsiderably thr
oughout
the co
urs
e of the yea
r
, w
ith th
e IAS 19
pension deﬁcit being substa
ntially
reduc
ed.
Custo
mer d
ema
nd in o
ur CTP d
ivisi
on
rema
ine
d stro
ng th
rough
out t
he year a
nd
we delivered
signiﬁcant growth in both
pro
duc
t and to
oli
ng revenu
es. Wh
ils
t
demand in the Aerospace division was
sub
due
d in the ﬁr
s
t hal
f of the year, order
intake incr
ease
d signiﬁcantly in the
se
cond ha
lf, largel
y as a re
sult o
f
increa
se
s in com
mercia
l air t
ravel.
The im
pac
t of th
e pan
demi
c contin
ued to
be fel
t thro
ugho
ut th
e year
, a
lb
eit thi
s
ha
s man
ifes
ted it
se
lf in di
f
ferent w
ays.
Comp
are
d to the pr
ior yea
r
, p
lant
clos
ures wer
e les
s of an is
sue b
ut
occur
red in s
ome co
untr
ies for s
hor
t
per
io
ds of tim
e. Staf
f a
bse
nteei
sm
decl
ine
d in mos
t count
rie
s but w
as s
till
subj
ec
t to spo
radi
c increa
se
s that c
ause
d
som
e sho
r
t
-term d
isr
uptio
n. However
,
the s
econ
dar
y i
mpac
t
s of lab
our
shor
tages, ex
tended logis
tics lead times
and s
igni
ﬁca
nt cost i
nﬂatio
n be
cam
e
more p
reval
ent a
s the yea
r prog
ress
ed.
In th
e lat
ter pa
r
t of the yea
r
, t
he wa
r in
Uk
rai
ne ha
s res
ulted i
n adde
d
uncerta
inty
. Although the
Group does
not have dire
ct cus
tom
er or su
ppli
er
contr
ac
ts wi
th eit
her U
kra
ine o
r Russ
ia,
the im
pac
t of increa
s
es in o
il and p
ower
pri
ces fu
r
the
r adde
d to the i
nﬂatio
nar
y
environ
ment.
These i
nﬂa
tionary press
ures
reduc
ed
marg
ins in t
he se
cond ha
lf of t
he year in
CTP
. The ma
jor
it
y of CT
P custo
mer
contr
ac
ts p
ermi
t mater
ial co
st in
creas
es
to be pa
s
sed t
hrou
gh which co
ntri
bute
d
to som
e of the reve
nue grow
t
h.
Whe
rever po
ssib
le, add
itio
nal p
rice
increa
se
s are b
ein
g pa
sse
d on to ou
r
custo
mer
s to of
f
set t
he imp
act o
f
ene
rgy
, la
bo
ur an
d overhea
d cost
increa
se
s, al
bei
t there i
s inhe
rentl
y a
tim
elag a
sso
ciated w
ith th
is. Pri
cing
neg
otiatio
ns wi
th cus
tome
rs have be
en
larg
ely co
nclud
ed for n
ow and t
he be
neﬁt
of the a
gree
d increa
se
s are e
xp
ec
ted to
accru
e prog
ress
ively i
n the ﬁr
st h
alf of
FY
23. In ad
diti
on, the co
st b
as
e ha
s
continued to
be tightly managed.
De
spite t
hes
e chal
leng
es, th
e Gro
up
delivered a signiﬁcant y
ear
-on-year
grow
th in u
nde
rlyi
ng op
erat
ing pro
ﬁt an
d
a robu
st o
per
ating p
roﬁt p
er
for
man
ce.
In line with our divisional gro
wth
str
ategi
es, we cont
inue
d to inves
t
signiﬁcantly in new capital equipment,
mai
nly focu
sed o
n increa
si
ng fu
ture
business in the medical an
d diagnostic
se
ctor
s wi
th our e
xi
sti
ng glo
ba
l custo
mer
ba
se. Ou
r focus o
n busi
nes
s
develo
pme
nt al
so res
ulte
d in both
divisions acquiring a number of
new
custo
mer
s du
ring t
he year
.
As a re
sul
t of uncer
ta
intie
s in gl
oba
l
supp
ly cha
ins we have increa
s
ed raw
mater
ial s
tock
s to ens
ure that we ca
n
contin
ue to de
liver to ou
r custo
mer
s a
nd
this, a
lo
ng wit
h the late
r than p
lan
ned
intro
duc
tio
n of a new cus
tome
r pro
duc
t,
resulted in increased invent
or
y holding
throu
gho
ut the yea
r
. We ex
pe
ct to
redu
ce the
se invento
r
y levels to m
ore
nor
mal
ise
d levels d
urin
g the co
urs
e of
the n
ex
t ﬁna
ncia
l year
. Given th
e grow
th
oppor
tunities that the market presents
and the ongoi
ng operational
headwinds,
the B
oard h
as a
sked Fra
nk Do
ore
nbo
sch
to temporarily relinquish his
Non
-E
xe
cutive p
osi
tion to wo
rk
alo
ngs
ide t
he CTP m
anag
eme
nt team.
EXECUTIVE
CHAIR’
S ST
A
TEMENT
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
05
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
The s
afet
y an
d wellb
ein
g of the C
arclo
team wo
rld
wide h
as co
ntinu
ed to be
forem
os
t in the m
inds of t
he Bo
ard a
nd
in add
itio
n to the m
ea
sures i
ntrod
uced at
the s
ta
r
t of th
e pan
dem
ic, a ra
nge of
fur
t
her a
cti
ons have be
en t
aken to
suppor
t employees through these
chall
eng
ing ti
mes. A
s wel
l as kee
ping o
ur
people an
d communities safe
throughout
the p
and
emic, we have intr
odu
ced a
ra
nge of a
ddit
iona
l mea
sure
s to enha
nce
the h
ealt
h and we
llb
eing of o
ur
work
fo
rce. The Bo
ard is gr
ateful fo
r the
positivit
y
, resilience and dedication
show
n by empl
oyees aga
in thi
s year
.
The ma
nag
eme
nt team ha
s cont
inue
d to
work proactively with the pension
tru
ste
es to intro
duce a r
an
ge of sch
eme
init
iatives a
ime
d at both b
en
eﬁtin
g the
sche
me me
mbe
rs a
nd re
ducin
g the
pen
sio
n deﬁcit. T
hes
e mea
sure
s, al
ong
wit
h the paym
ent of th
e contr
ibu
tion
s
agre
ed a
s pa
r
t of the Au
gus
t 20
20
reﬁna
ncing a
gree
ment refe
rre
d to in
previ
ous re
por
t
s, a
re intend
ed to re
duce
the over
all p
ens
ion de
ﬁcit in th
e comin
g
year
s. A mar
ket increa
se i
n disco
unt rate
s
use
d to mea
sure p
ens
ion li
abi
litie
s al
so
contr
ibu
ted to a sub
st
ant
ial re
duc
tio
n in
the I
AS 19 pensi
on deﬁci
t.
Financial performance
Despite the signiﬁcant global economic
chall
eng
es, I a
m plea
s
ed to rep
or
t
ﬁnan
cial i
mproveme
nt acros
s our key
per
for
mance m
ea
sures
.
T
ota
l revenue o
f £1
28.6 mill
ion in
crea
sed
by 1
9
.5% (
£21
.0 millio
n
) wit
h a larg
e
£1
0.
9mill
ion in
crea
se in to
olin
g revenue
to £25.
1 milli
on an
d a £1
0.
1 millio
n
increa
se i
n prod
uc
t revenue. Thi
s drove a
21
.
3% impr
ovement in u
nde
rlyi
ng EBITDA
to £1
3.
1 m
illio
n (20
2
1
: £1
0.
8 mill
ion)
.
Und
erl
ying EP
S increa
se
d by 29
.2% to
3.
1pe
nce (20
21
: 2.4 pence)
.
Complemen
ting our
operation
al
per
for
mance i
mprovem
ent, we have
made f
ur
th
er e
xceptio
nal ga
ins i
n the
year of £1
.4 millio
n (20
2
1
: £5.7 million)
,
dri
ven equ
ally by p
ensi
on b
eneﬁt g
ain
s
and ﬁ
nal p
rocee
ds of di
scont
inue
d
bus
ine
ss, pro
ducin
g a st
atuto
r
y EPS
resu
lt of 7
.
9 p
ence (20
21
: 10.
1 pence)
.
The b
ala
nce sh
eet ha
s mo
re tha
n trip
led
in net a
s
set va
lue to £
2
4.4 millio
n (20
21
:
£7
.
9 mil
lion) from ret
ain
ed p
roﬁt
s and
pension gains.
The p
ensi
on deﬁ
cit red
uced 3
0.3% in the
year to £
26.
0 milli
on (20
21
: £37
.3 mill
ion)
from a co
mbin
ation of a
ddi
tiona
l pe
nsio
n
contr
ibu
tion
s and i
mproved ﬁ
nancia
l
a
ssum
ption p
roje
cti
ons a
nd red
uced
mor
ta
lit
y r
ates.
The G
roup ha
s t
aken th
e opp
or
tu
nit
y to
contin
ue to inves
t sign
iﬁca
ntly i
n cap
ita
l
ex
pe
ndit
ure to grow th
e busi
nes
s at
£9
.7million (202
1
: £10
.4 millio
n
).
Net d
ebt excl
udin
g lea
se
s increa
se
d to
£21
.5 mil
lion (202
1
: £
20.5 millio
n
)
. Net
debt including lease liabilitie
s was
£32.
4mill
ion (20
21
: £
27
.6 mi
llio
n
),
reﬂe
cti
ng conti
nue
d stro
ng ca
pit
al
investment while holding higher
inventor
ies to p
rotec
t our op
er
ation
s
from p
os
t
-
CO
VID su
ppl
y chain
uncert
ainties. After these investments,
ca
sh ge
ner
ated fro
m op
erat
ions w
as
£6.8millio
n (20
21
: £1
1
.2mill
ion)
.
Wit
h und
erl
ying p
roﬁt af
te
r ta
x
increa
se
dby 33.3% to £
2.3 mill
ion
(20
21
:£1
.7milli
on)
, the un
der
lyin
g
EPSwa
s 3.
1p
ence (20
21
: 2.4 pen
ce
),
onun
der
lyin
g ope
rati
ng proﬁ
t up
26.
0%to£6.
1 millio
n (20
2
1
: £
4.8millio
n
).
The G
roup, the b
ank a
nd th
e pen
sion
sche
me tr
us
tees a
re ac
tivel
y enga
ged in
neg
otiatio
ns over th
e reﬁna
ncing of t
he
ba
nk debt b
eyond th
e curre
nt ex
pir
y date
of 31 July 2023 and over th
e update
d
sche
dul
e of contr
ibut
ion
s. The p
ar
ti
es
are co
mmit
te
d to a pla
n to ﬁnal
ise th
ese
by 31 July 20
22 a
nd th
e Dire
cto
rs have an
exp
ectation that this will be ac
hieved
.
I am p
lea
sed to r
epo
r
t mea
nwhil
e that
the G
roup ha
s de
livere
d proﬁ
t grow
th to
ex
pe
ct
atio
ns an
d is now s
tream
line
d and
focus
ed on g
rowing i
ts C
TP an
d
Aerospace divisions.
06
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
EXECUTIVE
CHAIR’
S ST
A
TEMENT
continued
Our people
On
ce agai
n, the Ca
rclo tea
m worl
dwid
e
ha
s shown g
reat resi
lien
ce, posi
tivi
ty a
nd
ded
icati
on in cha
lle
ngin
g time
s an
d I and
my Boa
rd coll
eague
s woul
d like to
convey our sin
cere tha
nk
s for th
eir
suppor
t throughout the year
.
A numb
er of in
itiati
ves were int
rodu
ced
this yea
r to enha
nce th
e per
so
nal
develo
pme
nt pla
nnin
g pro
cess. I a
m
als
opl
eas
ed to re
por
t t
hat we resu
med
the re
crui
tme
nt of app
renti
ces thi
s year
and i
ntend to co
ntinu
e this in t
he
comin
gyear
s.
In reco
gni
tion of t
he revenu
e grow
th that
the business is currently ac
hieving and
ta
rgeti
ng, the a
im is to co
ntinu
e the
strengthening of the divisional
man
agem
ent tea
ms focus
ed o
n bus
ines
s
dev
elopment and opera
tions.
The organisational struc
ture of e
ach
divi
sion i
s als
o be
ing devel
op
ed to focu
s
on gl
oba
l rath
er tha
n countr
y-sp
eciﬁc
growth oppor
tunitie
s.
Throughout the ye
ar
, the Group
contin
ued to p
romote t
he hea
lth a
nd
wellb
ein
g of it
s empl
oyees. Th
e Grou
p
form
all
y launch
ed it
s Gro
up Hea
lth a
nd
Wellbe
ing Pro
gra
mme “C
arclo c
ares” o
n
1Jun
e 20
2
1
, wit
h the int
rodu
cti
on of a
n
E
AP he
lplin
e for al
l it
s empl
oyees gl
oba
lly
from
that date.
Board and go
vernance
Peter Sla
bb
er
t a
nd David T
o
oh
ey
indi
cated t
heir i
ntentio
n not to se
ek
re-
ele
ct
ion a
s No
n-
E
xecuti
ve Dire
ctor
s
af
ter b
oth se
r
ving t
he Gro
up over the l
as
t
six yea
rs
, and t
hey retire
d from t
he Bo
ard
on 31 March 202
1 an
d 30 Ap
ril 202
1
resp
ec
tivel
y
. I wou
ld like to tha
nk bot
h
Peter an
d David for t
heir co
ntrib
uti
on to
the business.
We were plea
se
d to recr
uit Er
ic
Hutch
inso
n and Fra
nk Do
ore
nbo
sch to
the B
oard, b
rin
ging a wea
lth of b
usi
nes
s
and s
pe
ciﬁc in
dus
tr
y ex
pe
rie
nce that is
inval
uab
le a
s we exe
cute our s
trate
gie
s
goin
g for
wa
rd. Eric w
as a
pp
ointed i
n
Janu
ar
y 202
1 and b
ec
ame Cha
ir of th
e
Audi
t Commi
t
tee in M
arch 202
1
, tak
ing
over from Pete
r Sla
bbe
r
t. Frank w
as
ap
pointe
d in Feb
rua
r
y 20
21
, a
nd too
k
over a
s Chair of t
he Remu
ner
ation
Comm
it
tee in A
pr
il 20
21 followin
g
David’s dep
ar
tu
re. Both Eri
c and Fra
nk
bring signiﬁcant industria
l experie
nce
tothe B
oard.
Jo
e Oatley cont
inue
d a
s the S
enio
r
Independent Dir
ector thro
ughout the
year
. Joe ha
s b
een in
str
um
enta
l in
reviewing Board effectiveness.
In Ma
rch 20
21
, Ph
il Whi
te join
ed th
e
Boa
rd a
s the p
erm
ane
nt CFO af
ter a
sho
r
t pe
rio
d as i
nteri
m CFO
. Phil a
lso
bri
ngs a wea
lth of k
now
led
ge an
d
ex
pe
rien
ce to the b
usin
ess a
nd he i
s
work
in
g alo
ngsi
de me o
n dri
ving
imp
rovement
s acros
s the G
roup.
Wit
h ef
fec
t fro
m 6 June 2022,
FrankD
oo
renb
osch wa
s a
ppo
inted a
s a
consu
lt
ant to th
e Grou
p for a pe
rio
d of
upto t
welve m
onths, a
nd acco
rding
ly
be
cam
e an E
xe
cutive D
irec
tor for t
hat
per
io
d. F
ra
nk wil
l focus o
n as
sis
ting t
he
Ca
rclo T
ech
nica
l Pla
st
ics di
visi
on to
imp
rove its op
er
ationa
l ef
fec
tive
nes
s in
the f
ace of ra
pid
ly increa
si
ng dem
and
coup
led w
ith cur
rent sup
ply cha
in
challenges.
It is inte
nde
d that Fran
k will rever
t back
tobei
ng a No
n-E
xe
cuti
ve Direc
tor of t
he
Comp
any an
d resum
e his p
osi
tion o
n the
Boa
rd Com
mit
tee
s an
d as Cha
ir of th
e
Remun
erat
ion Co
mmit
te
e as s
oo
n as
theco
nsul
ta
ncy p
eri
od ha
s en
ded.
Jo
eOatley ha
s b
een re
-app
ointe
d Chai
r
of the Re
mune
ratio
n Comm
it
tee in t
he
int
erim
period.
As COVID
-
1
9 rest
ric
tio
ns have ea
sed,
theB
oard h
as b
ee
n abl
e to make an
increa
se
d numb
er of s
ite visi
ts a
nd s
o
ha
s be
en ab
le to en
gage d
irec
tly w
ith
emp
loyees in m
ore pa
r
t
s of the b
usin
ess
.
The B
oard h
as co
ntinu
ed to be d
ilig
ent
on a
ll govern
ance is
sue
s an
d is regu
lar
ly
upd
ated on n
ew and u
pdate
d
requ
irem
ents. I
n pa
r
ticula
r
, t
he Bo
ard
isfu
lly sup
por
tive of th
e pr
incip
les la
id
down in t
he UK C
orp
orate G
overna
nce
Cod
e and co
ntinu
es to review i
ts
sys
tems
, pol
icies a
nd pro
cedu
res that
supp
or
t t
he Gro
up’
s sus
ta
ina
bili
t
y and
gov
ernance practices.
Health, safety and en
vironment
The B
oard a
nd ma
nag
eme
nt team have
contin
ued to fo
cus on e
nsur
ing th
at
Ca
rclo is a s
afe place to wo
rk. Re
gula
r
review
s at site, divi
sion
al a
nd Gro
up level
are co
nduc
ted to re
cord a
ny incide
nts
that have occur
red, to en
sure that ro
ot
cau
se an
aly
sis is co
mple
ted an
d that
ap
prop
riate cor
rec
tive ac
tio
ns have be
en
put i
n place.
I am p
lea
sed to r
epo
r
t that a
s a res
ult of
our ac
ti
ons th
e accide
nt rate (numbe
r of
accide
nts
/hou
rs wo
rked) wa
s re
duced
from 4.5/100,
00
0 hour
s in 202
0/2
1 to
3.
7
/1
00,
000 in 2
02
1
/22
.
In ad
diti
on to the d
iscip
line
s al
ready in
place
, management incentives f
or the
new ﬁna
ncia
l year wil
l now inclu
de a
n
element r
elat
ed to i
mpro
ving health
and
safet
y p
er
fo
rma
nce in lin
e wit
h agree
d
targ
ets.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
07
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
The B
oard i
s commi
t
ted to t
ackli
ng
climate cha
nge a
nd a r
ang
e of
enviro
nme
nta
l mea
sure
s have been
introduced, such
as:
•
the H
ead O
f
ﬁce fun
cti
on ha
s be
en
moved to a si
gniﬁc
ant
ly sma
lle
r
, mo
re
energy-efﬁcient building;
•
the
rma
l insu
latio
n has b
ee
n
introduced to moulding machines in
CTP Chi
na an
d this is b
ein
g roll
ed ou
t
across the CTP division
;
•
LED
lighting is being progressively
introduced acr
oss manufac
turing
si
te
s; a
n
d
•
we have reduce
d comp
ress
ed a
ir
usage within our operations.
We are als
o curre
ntly eva
luati
ng a sy
stem
to mon
itor th
e ene
rgy us
age of ea
ch
machi
ne in th
e CTP di
visi
on in rea
l time
to facil
itate a re
duc
tio
n in en
ergy
consumption.
Dividend
In accord
ance w
ith th
e provis
ion
s of the
reﬁna
ncing a
gree
ment si
gne
d in Augu
st
20
20
, the b
usin
ess i
s not curre
ntly
per
mit
te
d to pay divi
den
ds. Th
e Boa
rd is
the
refore not re
comm
endi
ng th
e
payme
nt of a divi
den
d for 20
21
/2
2
(2020/21
:
£n
il
).
Pensions
The ma
nag
eme
nt team ha
s wor
ked
clos
ely w
ith th
e pen
sion t
rus
tee
s to
develo
p a numb
er of in
itiat
ives that
enha
nce th
e mem
ber
s’ ben
eﬁt
s and a
re
als
o ai
med at re
ducin
g the s
chem
e’
s
liab
ilit
ies g
oing fo
r
ward. Fol
lowin
g on
from i
ntrod
ucing B
rid
ging Pe
nsio
n
Opti
ons (“BP
O”) la
st yea
r
, of
feri
ng mo
re
mem
ber ch
oice on ea
rl
y retire
ment
pen
sio
n commu
tati
on an
d redu
cing th
e
IA
S 1
9 liab
ilit
y by £6.
7 milli
on, we have
intro
duce
d Pensio
n Increa
se E
xch
ang
e
(“PIE”) optio
ns to me
mbe
rs, a
llowi
ng
increa
se
d pe
nsio
ns ear
lie
r in excha
nge
for pe
nsio
n inﬂati
on in
dex
ing, w
hich ha
s
redu
ced th
e IAS 19 liabi
lit
y pro
jec
tio
ns by
£
0.
9 million.
Follow
ing th
e 20
18 valuati
on, the G
roup
agre
ed that i
t would a
im to el
iminate t
he
deﬁci
t over a per
iod o
f 1
9 years a
nd ni
ne
mont
hs fro
m 1 Febr
uar
y 202
1 to
31Octo
ber 204
0. The an
nual
contr
ibu
tion
s would i
ncrea
se to
£3.
9milli
on for th
e year to 31 March 2022,
£3.8 mil
lion fo
r the year to M
arch 2023,
and £
3.5 mil
lion a
nnua
lly t
hereaf
ter
.
Coup
led w
ith oth
er imp
rovement
s in
pen
sio
n sche
me a
ssum
ption
s, mo
st
not
abl
y the in
creas
ed ma
rket di
scount
rate us
ed for v
alu
ing reti
reme
nt
obl
igati
ons, th
e IA
S 1
9 pens
ion d
eﬁcit
ha
sredu
ced by £1
1.3 millio
n in th
e year
to£26.0 millio
n (£3
7
.3 mil
lion)
.
Fur
ther i
nitiat
ives in
clude a ch
ang
e
ofinves
tment m
ana
gem
ent comp
lete
d
bythe p
ensi
on tr
uste
es in t
he year
,
provid
ing a f
resh in
sight a
nd f
ull res
et
ofthe p
ens
ion s
cheme a
s
set
managementstrategy
.
08
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
EXECUTIVE
CHAIR’
S ST
A
TEMENT
continued
Divisional revie
w
Carclo
T
echnical Plastics (“
CTP”)
The C
TP div
isio
n per
fo
rme
d st
rongl
y in
the ﬁr
s
t hal
f of the year, with dem
and
contin
uing to g
row for me
dica
l an
d
diag
nos
tic pr
oduc
t
s. However
, seco
nd
hal
f trad
ing wa
s m
ore cha
llen
ging d
ue
initially to difﬁculties recruiting labour in
the U
S and t
hen co
st es
ca
latio
ns acros
s
raw mat
erials, energy
, packaging, freight
and ot
her over
head
s. Whil
st t
he imp
act
of raw mate
ria
l cost i
ncrea
se
s can la
rge
ly
be pa
s
sed o
n to custo
mer
s (albei
t wit
h
som
e tim
e lag)
, the over
all im
pac
t of
the
se in
creas
es re
duced m
argi
ns in th
e
se
cond ha
lf, par
ticul
arl
y in the U
S an
d UK
ope
rati
ons. Pr
ice in
creas
es have al
so
be
en ne
gotiate
d with cu
stom
er
s to
of
fs
et th
e impa
ct of th
e non
-mater
ial
cos
t incre
as
es.
The n
ew larg
e custo
mer co
ntra
ct
rep
or
ted i
n previo
us tr
adin
g upd
ates ha
s
now ente
red pro
duc
tio
n in th
e UK,
alb
eita
f
ter a lo
nger p
er
iod of p
rove out;
the U
S prod
uct
ion li
ne is s
till i
n the prove
out s
ta
ge bu
t is ex
pe
cte
d to comm
ence
pro
duc
tion i
n the ﬁr
s
t hal
f of the
2
0
22/2
3
ﬁnanc
ial
y
ear
.
Mater
ial s
hor
t
age
s an
d the late
r than
pla
nne
d intro
duc
tio
n of the ne
w
producti
on lines resulted in incre
as
ed
inventor
y h
old
ings o
f raw mater
ial
s
which a
re ex
pe
cte
d to redu
ce duri
ng
the2022/23 ﬁna
ncia
l year
.
Despite these challenges the division
ha
sbe
en award
ed si
gniﬁc
ant n
ew tool
ing
contr
ac
ts by an e
xi
sti
ng la
rge cus
tome
r
and i
t is an
ticipate
d that, a
s a res
ult, ne
w
pro
duc
tion l
ine
s will b
e ins
ta
lle
d in CTP
bus
ine
sse
s arou
nd th
e glob
e in lin
e wit
h
our l
ong-te
rm st
rateg
y
. Thi
s will, in t
urn,
lead to co
ntinui
ng lo
ng-ter
m revenue
grow
th. A
s a resu
lt, it is a
ntici
pated th
at
ca
pit
al inves
tme
nt in th
e divi
sion w
ill
remain signiﬁcant in the 2
0
22/23
ﬁnanc
ial
y
ear
.
In ad
diti
on to thi
s larg
e tool
ing ord
er
,
thed
ivisi
on cont
inue
d to deli
ver on i
ts
lon
ger-term g
row
th st
rate
gy
, in
itiat
ing
the in
st
all
ation of 17 addit
iona
l new
pro
duc
t line
s acros
s four of o
ur glo
bal
site
s which w
ill comm
ence p
rodu
cti
on
inthe n
ex
t t
wo year
s. We have als
o see
n
ﬁve new
accounts of
signiﬁcance added
in ta
rget s
ec
tor
s inclu
din
g
pharmaceutical accounts in the Czech
Repub
lic a
nd US
, a med
ica
l account in
Ind
ia, an
d China acco
unts a
dde
d in th
e
diabetes and diagnostics sec
tors.
The di
visi
on al
so b
eneﬁ
ted fro
m a US
govern
ment l
oan r
elated to COVID
-
1
9
disruption being forgiven
in the ye
ar;
there
sult
ing p
roﬁt ha
s be
en dis
clos
ed
sep
ar
ately i
n the in
com
e st
ateme
nt.
Demand for the division’
s produc
ts
rema
ins s
tron
g, par
t
icula
rly i
n the
med
ica
l an
d diagn
ost
ic se
cto
rs, a
nd th
e
new too
lin
g orde
rs wo
n are e
xp
ec
ted to
lead to f
ur
th
er revenu
e grow
th in th
e
new year
. The p
ricin
g ac
tion
s alrea
dy
imp
lem
ented a
re ex
pe
cte
d to feed i
nto
improv
ed margins progressively through
t
h
e
y
e
a
r.
Aerospace
The Ae
rosp
ace div
isio
n per
fo
rm
ed well i
n
the aftermath of the pandemic.
Air t
ravel st
ar
ted to re
cover
, pa
r
ti
cular
ly in
the s
econ
d hal
f of the year w
ith t
he
util
isat
ion of s
hor
t ha
ul, nar
row bo
dy
aircr
af
t in
creas
ing a
s travel re
st
ric
tio
ns
ea
sed. Lon
g haul tr
avel, which
predominantly utilises wide body
aircr
af
t,a
lso in
crea
sed b
ut at a sl
owerrate.
This resulted in aircraft manufac
turers
st
ar
t
ing to in
creas
e the
ir bui
ld rate
s
alt
hou
gh it wi
ll be s
ome t
ime b
efore th
ey
reco
ver
to pr
e-pandemicle
vels.
As a re
sul
t of this in
crea
se in ma
rket
ac
tivi
ty a
nd a
n increa
se
d focus o
n
business de
velopment
within t
he
division, order intake
grew steadi
ly
throu
gh th
e year an
d wa
s par
ticula
rl
y
stro
ng in t
he ﬁna
l qua
r
ter
.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
09
Carclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
Sa
les we
re lower th
an th
e pri
or year a
s a
resu
lt of th
e low orde
r int
ake in the ﬁ
rs
t
hal
f of the yea
r but in
crea
sed i
n the
se
cond ha
lf an
d in th
e ﬁnal q
uar
te
r
par
ticul
arl
y
. De
spi
te inpu
t cos
t inﬂatio
n,
marg
ins have be
en wel
l mana
ged a
nd
increa
se
d year on yea
r
. Co
st
man
agem
ent ha
s be
en ma
int
ain
ed an
d
a
s a resul
t the di
visi
on de
livere
d
increa
se
d proﬁ
t and c
as
h in th
e year
.
Recru
itm
ent ha
s now re
sume
d as a
ct
ivit
y
levels i
ncrea
se a
nd we ex
pe
ct to s
ta
r
t
recruiting apprentices again this y
ear
.
The di
visi
on s
ta
r
ts th
e new ﬁna
ncia
l year
wit
h a heal
thy orde
r bo
ok an
d ex
pe
ct
s to
se
e goo
d revenue a
nd pro
ﬁt grow
th i
n
the
20
22/23
ﬁnan
cial
y
ear
.
Strat
egy
The primar
y objectives of the Group’
s
str
ategy a
re to grow revenu
es, p
roﬁt
s
and c
a
sh ge
ner
ation i
n each of it
s
operating divisions whilst working with
the p
ensi
on tr
us
tees to re
duce th
e
pen
sio
n deﬁcit over t
ime.
Each division is
increasingly becoming
“sta
nda
lon
e” and w
ill pro
gres
sivel
y have
the re
sou
rces to op
erate i
ndep
en
dentl
y
of central functions.
In th
e shor
t
-term, th
e focus re
mai
ns to
grow org
anic
all
y in each of ou
r ex
ist
ing
mar
kets, b
ut in th
e med
ium to lo
ng-ter
m
this ma
y be supplemented by ac
cretiv
e
and synergistic acquisitions.
It is a
nticip
ated that c
api
ta
l invest
ment
will re
mai
n high in t
he sh
or
t a
nd
med
ium-ter
m to ena
ble o
ur am
biti
ous
grow
th p
lans to b
e achieve
d.
The ce
ntra
l team wi
ll conti
nue to focu
s
on Gro
up s
trateg
y
, ca
pit
al a
llo
cati
on,
ITan
d governa
nce a
s well a
s con
tinui
ng
to work w
ith th
e pe
nsio
n tru
ste
es to
red
uce th
e deﬁci
t.
Outlook
I am p
lea
sed w
ith t
he pro
gres
s that
Ca
rclo ha
s mad
e agai
n this yea
r
. D
esp
ite
signiﬁcant headwinds the business has
del
ivered s
igniﬁ
can
t revenue a
nd proﬁ
t
grow
th a
nd at the s
am
e tim
e continu
ed
to invest i
n growin
g cap
acit
y to me
et th
e
dem
and
s of growin
g mar
kets.
Alt
hou
gh the d
irec
t imp
act
s of th
e
pandemic ha
ve
reduc
ed progressiv
ely
dur
ing th
e year the s
eco
nda
r
y impa
ct
s
ofcos
t inﬂatio
n, lab
our s
hor
t
age
s an
d
log
ist
ics de
lays imp
ac
ted the s
eco
nd hal
f
of the yea
r
. We have countere
d the
se
ef
fec
ts by im
provin
g ope
rati
ona
l
ef
ﬁcie
ncy
, pa
ssin
g on cos
t increa
s
es
wherev
er possible
and holding mor
e
i
n
v
e
n
t
o
r
y.
Both di
visi
ons have cont
inue
d to exe
cute
on th
e str
ategi
c pla
ns devel
ope
d in 20
21
through targeting organic growth
oppor
tunities in their chosen markets
and strengthening
management
teams
.
This h
as re
sulte
d in a num
ber of n
ew
bus
ine
ss win
s which w
ill cont
rib
ute to
our f
uture reve
nue an
d proﬁ
t grow
th.
The ma
nag
eme
nt team ha
s cont
inue
d to
work cl
ose
ly wi
th the p
ens
ion tr
us
tees
towards the objective of
reducing the
his
tori
c pen
sion d
eﬁcit a
nd I a
m plea
se
d
to repo
r
t that t
he IA
S 1
9 deﬁcit h
as
redu
ced mate
ria
lly over the l
as
t year
.
The B
oard e
xp
ec
ts m
ar
ket dema
nd for
both t
he CTP a
nd Ae
rosp
ace div
isio
ns to
contin
ue to grow in t
he ne
x
t ﬁna
ncial
year bu
t als
o that th
e head
wind
s that
preva
ile
d in the s
econ
d hal
f will co
ntinu
e
dur
ing th
e ﬁr
st ha
lf
.
Nick Sanders
E
xecutive Chair
29 June 2022
T
echnical Plastics
10
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
OUR MARKETS
MEDICAL
ELECTRONICS
& CONSUMER
Carclo’
s continued growth in diagnostics
pharmaceutical, respirator
y
, ostomy
, ophthalmic,
women
’
s healthcare
, blood management
and
surgi
calp
rodu
ct
s wil
l contin
ue to fu
el inves
tmen
t
ineq
uipm
ent an
d facil
itie
s. Ha
rmo
nis
ation o
f
management systems and manufac
turing methods
contin
ue to adv
ance C
arclo’s technic
al c
apa
bili
tie
s to
suppor
t the industria
lisation of medical markets.
Ca
rclo’
s techn
ica
l of
feri
ng an
d str
ategi
c footp
rint
ali
gns wel
l with i
ncrea
sing g
lob
al de
man
d in clini
cal
chemistr
y
, diagnostic dispos
ables and diabetes
management with leading OEMs.
Customers
In th
e med
ica
l sec
tor
, Ca
rclo’
s cus
tome
rs a
re
pre
domi
nantl
y blu
e-
chip glo
ba
l OEMs, t
y
pica
lly i
n the
top three of
their respective segments. In diagnostics
we are p
roud to su
ppl
y four of th
e top ﬁve clini
ca
l
diagnostics providers. In non-medica
l segments our
custo
mer
s a
re niche p
rovide
rs of cr
iti
cal s
afet
y
applicati
ons or t
echnology
leaders.
Elec
tro
nics a
nd con
sume
r prod
uc
ts not o
nly have
be
en a foun
ding co
rne
rs
ton
e but a
lso re
mai
n a stro
ng
se
gment o
f our bu
sine
ss. D
ecrea
sin
g size of e
lec
tron
ic
comp
one
nts a
nd in
creas
ing cos
t pre
ssur
es on
consu
mer p
rodu
ct
s ha
s fue
lle
d grow
th in l
ow-co
st
regi
ons a
nd in
creas
ed ca
pa
bili
tie
s across a r
an
ge of
high p
recis
ion gea
r
s, conn
ec
tor
s, ﬁre an
d safet
y
applications, packaging, as well as dispensing
equipment
applicat
ions.
T
echnical Plastics
Aerospace
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
11
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
OPTICS
Ca
rclo is a sp
ecia
lis
t in the d
esi
gn, develo
pme
nt an
d
manufacture o
f injection
moulded and extruded
opti
cal co
mpo
nent
s an
d as
sem
ble
d devi
ces acro
ss a
wid
e ran
ge of a
ppl
icati
ons. C
arclo m
aint
ai
ns it
s niche
po
siti
on in th
e LED lighti
ng ma
rkets, p
rovidi
ng en
ergy
savin
gs an
d pe
r
form
ance s
olu
tion
s in the a
rea
s of
architectural lighting, street lighting
, automotive
and
aero
space. Ca
rclo c
arr
ies i
ts ow
n prop
riet
ar
y l
ine of
opti
cs for LED ap
pli
catio
ns in ad
diti
on to s
ta
ndar
d and
custo
m-
des
igne
d ele
ct
ro optic
s such a
s Fresne
l
len
ses, l
ight gu
ide
s, guid
ance s
yste
ms an
d CCT
V
securi
ty domes.
Our s
ucces
s in the s
tr
inge
nt aero
space a
nd d
efence
mar
kets ha
s b
een b
uilt over a ce
ntur
y of e
xp
eri
ence,
whe
re the m
ost e
xa
cti
ng pro
duc
tio
n qual
it
y st
an
dard
s
at
ta
inab
le a
re imp
ose
d. Del
iver
y on t
ime a
nd “right
ﬁr
st ti
me” for our cu
sto
mer
s is a mu
st.
Control cables
Europe’s leadi
ng sup
plie
r of contro
l ca
ble
s for
theaviat
ion in
dus
tr
y
. B
oth Br
untons a
nd Ja
cotte
t
man
ufac
tur
e aircr
af
t me
chani
cal co
ntrol c
ab
les to
int
ernation
al standards or
customer
bespoke
designsas required.
Specialised machined components
As a d
eta
ile
d pa
r
ts ma
nuf
ac
turer to m
any lead
ing
aero
space a
nd d
efence bu
sin
ess
es, Br
unton
s supp
ly
ara
nge of s
peci
alis
ed ma
chine
d comp
one
nts fo
r both
pro
duc
tion a
nd af
te
rma
rket req
uirem
ent
s. Br
untons
als
o sup
por
t the v
inta
ge ai
rcraf
t ma
rket wi
th the
supply of streamline wires.
Quality
T
o sat
isf
y t
he qua
lit
y s
ta
nda
rds req
uired, b
oth our
site
s hol
d Aeros
pace A
S91
00 a
pprova
l, a mus
t for
man
ufac
tur
er
s wanti
ng to wor
k in thi
s sec
tor
.
Alo
ngs
ide t
his, we al
so ho
ld a nu
mbe
r of OEM
“
supplier appr
ovals
” and “
sp
ecial
process appr
ovals
”
tosupp
or
t o
ur cus
tome
rs’ ne
eds
.
12
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
BUSINESS MODEL & STRA
TEGY
Operating model
Our resources & relationships
The Group is focused on delivering sustainable growth in earnings
by focusing on being the supplier of choice in our cor
e mark
et
s.
Underpinned by our v
alues and culture
PEOPLE
We aim to be th
e emp
loyer of choi
ce in our
se
ctor a
nd l
ocat
ions. O
ur en
gage
d an
d
sk
ille
d work
fo
rce is focus
ed on d
eli
verin
g
the b
es
t sol
utio
ns for o
ur custo
mer
s
through innova
tion, customer collaboration
and q
ual
it
y
. We are creatin
g an e
nvironm
ent
that ena
bl
es ou
r empl
oyees to rea
lise t
heir
full p
otenti
al whi
lst fe
eli
ng sa
fe and
sup
po
r
te
d.
CAPIT
AL
We oper
ate with
in a dis
cipli
ned c
api
ta
l
all
ocat
ion f
ram
ewor
k that al
lows u
s to
invest i
n grow
th a
nd pro
duc
tiv
it
y
enhancement
whilst meeting ou
r
obl
igati
ons to th
e ex
ter
nal s
ta
keho
lde
rs.
RELA
TIONSHIPS
We build a
nd ma
int
ain clo
se l
ong-te
rm
relati
ons
hips w
ith cus
tom
er
s, supp
lier
s a
nd
othe
r st
akeho
lde
rs; centr
ed on tr
us
t an
d
collabor
ation.
SUPPL
Y CHAIN
W
e ha
ve
dev
eloped long-standing
relati
ons
hips w
ith key par
tne
rs i
n our su
pply
chain, w
hich is a key ele
ment o
f deli
verin
g
on-ti
me quality pr
oducts to our
cust
omers.
ASSETS
We focus on en
han
cing op
erat
iona
l
ef
ﬁcie
ncy a
nd retu
rn on i
nveste
d cap
it
al.
We ensure inves
tm
ent in new a
s
set
s is
accretive to over
all G
roup ret
urn o
n cap
it
al.
EXPERTISE
Our p
eo
ple a
re ex
pe
r
ts in t
heir ﬁ
eld
s. From
innovat
ion to o
per
ation
s an
d prod
uct
stewa
rds
hip we have ex
per
ts w
ho ena
bl
e
us to de
liver un
ique a
nd su
per
ior p
rodu
ct
s
to o
ur c
ustomers.
R
esponsive and
entrepreneurial culture
Customer satisf
action
and effectiv
eness through
operational e
x
cellence
Global facilities
with highly technical
capabilities
Sustainable business
dev
elopment based on
customer inter
actions
Safety
Customer
Ethics
People
Excellence
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
13
Carclo plc
Annu
al re
po
r
t and a
ccoun
ts 2022
Operating model
Competitiv
e adv
antage
V
alue creation
W
e achieve this through our t
echnical capabilit
y and operational e
xcellence,
which enables us to consistently deliver high quality product
s to
, and build
deep relationships with, our customers.
Underpinned by our v
alues and culture
CUSTOMER SA
TISF
A
CTION
Our cu
stom
er
s have sel
ec
ted us over o
ur
comp
etito
rs, a
nd we re
cogni
se that t
his
deci
sion i
s ba
se
d on the
ir fa
ith in o
ur ab
ilit
y
to mee
t or exce
ed th
eir e
xp
ec
tati
ons. Ea
ch
of our b
usin
ess
es m
onito
r key asp
ec
ts of
our cus
tom
er pe
r
form
ance a
nd th
is is
contin
uall
y fed ba
ck to our em
ployee
s.
OPER
A
TIONAL EX
CELLENCE
We meet ou
r custo
mer
s’ ex
pe
ct
ation
s
throu
gh a focu
s on op
erat
iona
l exce
llen
ce
which e
nab
les u
s to del
iver hig
h qual
it
y
pro
duc
ts, o
n time a
nd at a com
peti
tive
pri
ce, whils
t achiev
ing a ret
urn o
n
invest
ment a
bove ou
r hurdle r
ate.
RESPONSIVE CUL
TURE
We oper
ate with a ﬂ
at and d
ecent
ral
ise
d
man
agem
ent s
tru
ctu
re in ord
er to ma
ke fas
t
and r
esp
onsi
ve decis
ion
s to the b
eneﬁt o
f
our cus
tom
er
s, emp
loyees a
nd ul
timatel
y
for th
e Group a
s a w
hol
e. W
e ex
pec
t ou
r
man
agem
ent tea
ms to op
erate i
n an
entrepreneurial manner and reward them
ap
prop
riatel
y
. Thi
s devolve
d str
uc
ture a
lso
ena
ble
s the G
roup to op
er
ate with a l
ean
overhead structure.
GLOB
AL FOOTPRINT
Our b
usi
nes
s ope
rates a
cross t
hree di
f
ferent
contin
ent
s to provid
e lo
cal s
upp
or
t to our
glo
bal cu
stom
er
s. We ensure t
hat we
ope
rate et
hica
lly in a
ll of ou
r loc
ation
s,
resp
ec
tin
g loc
al re
gulati
ons, a
nd we deve
lop
a cultu
re of be
st pr
ac
tice in o
per
atio
nal
management
, c
ustomer r
esponsiven
ess as
well a
s en
suri
ng that o
ur ap
proach to h
eal
th
and s
afet
y is co
nsis
tent in a
ll of ou
r
operations
.
SHAREHOLDERS
The G
roup wi
ll create val
ue for s
hareh
old
er
s by gen
erat
ing
sus
ta
ina
ble ea
rni
ngs a
nd po
sit
ive ca
sh ﬂow i
n exces
s of the
requ
irem
ents o
f other e
x
tern
al ﬁna
ncia
l st
akeho
lde
rs
. We will
contin
ue to reb
uild t
he st
reng
th of our b
ala
nce sh
eet to e
nab
le
inv
estment for future growth.
EMPLO
YEES
Creating a
nd ma
int
ain
ing rewa
rdin
g car
eer
s for ou
r tota
l glob
al
work
fo
rce of c.
1,
000 i
s criti
cal fo
r the d
elive
r
y of our s
trate
gy
.
CUSTOMERS
We provide cr
itic
al com
po
nent
s to our cus
tom
er
s who o
per
ate in
dem
and
ing, hig
hly re
gulated m
ar
kets. Th
e qual
it
y of our p
rodu
ct
s
ena
ble
s our cus
tom
er
s to provid
e valu
e-ad
ded s
olu
tio
ns in
safety-critical en
vironments.
SUPPLIERS
We value o
ur sup
plie
r relati
ons
hips a
nd t
ake a lon
g-term s
tr
ategic
approach
to m
utual value c
rea
tion.
PENSION
The G
roup p
rovide
s fun
ding to th
e pe
nsio
n fund
s that pr
ovide
retir
ement beneﬁts f
or past and present emplo
yees.
Although the
deﬁn
ed be
neﬁt s
chem
es a
re clos
ed, the G
roup t
akes i
ts f
undi
ng
obl
igati
ons s
erio
usl
y and wo
rk
s clos
ely w
ith th
e sche
me tr
us
tees to
ens
ure that th
e fut
ure comm
itme
nts to s
chem
e mem
ber
s ar
e met.
DEBT PRO
VIDERS
The G
roup ha
s a lo
ng-
st
and
ing re
latio
nshi
p with i
ts le
ndi
ng ba
nk.
The b
ank p
rovide
s fun
ds that e
nab
le the G
roup to g
row and create
val
ue for a
ll st
akeh
old
er
s and i
n turn t
he Gro
up se
ek
s to del
iver a
retur
n on inves
ted f
unds to i
ts l
endi
ng ba
nk.
14
Carclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
Section 172
Our p
urp
os
e at Carcl
o plc i
s to deli
ver
high q
uali
t
y
, pre
cisio
n comp
one
nts
toour cus
tom
er
s that ena
bl
e them
toprovid
e so
luti
ons in h
ighly
regu
lateds
afet
y-cr
itic
al envi
ronm
ents
.
Our te
chno
log
y and p
rodu
ct
s are re
lie
d
upo
n by custo
mer
s wor
ldw
ide wh
o
tru
stu
s to deli
ver relia
bl
e, high qua
lit
y
,
cost
-ef
fective products that ultimately
enha
nce live
s of the e
nd us
er
s of the
sys
tems o
f which th
ey form a p
ar
t.
Effective engagement with our
st
akeho
ld
er
s is cruci
al to th
e deli
ver
y
ofour p
urp
ose a
nd o
ur str
ategy
.
TheD
irec
tor
s und
er
st
an
d thei
r
resp
ons
ibil
itie
s to prom
ote the su
ccess
of the Co
mpa
ny in accorda
nce wi
th
Se
cti
on 1
72 of the Co
mpa
nies A
ct 2006.
Se
cti
on 1
72 of the Co
mpa
nies A
ct 2006
requ
ires th
e Dire
cto
rs to h
ave regard to a
numb
er of f
acto
rs i
nclud
ing t
ak
ing into
consi
der
atio
n the inte
res
ts of
sta
keholders in their decision-making.
Fur
ther i
nform
ation o
n how th
e Dire
cto
rs
ov
ersee st
akeholder
engagement and
discharge their duties and responsibilities
is incl
ude
d in the s
tate
ment o
f corp
orate
govern
ance o
n page
s 46 to 49
.
OUR ST
AKEHOLDERS
The Director
s understand their responsibilities to promote the succ
ess of
the Company in accor
dance with Section 1
7
2 of the Companies Act 2006.
Stak
eholders
Material issues
How w
e engage
Outcomes
EMPLO
YEES
We rec
ogn
is
e th
at hav
ing
engaged,
motiva
ted
em
ploye
es w
ith a
li
gn
ed
va
lue
s is key to t
he l
on
g-te
rm
su
cce
ss o
f the b
us
in
es
s.
Wesee
k to be t
he e
mp
loyer
of ch
oi
ce in o
ur s
ect
or a
nd
geographies in which w
e
ope
rate.
•
Ensu
re ou
r core va
lu
es a
re
embedded through
out the
Gr
ou
p.
•
Create a p
os
iti
ve wor
kin
g
environment through
a high
pe
r
for
min
g cult
ure.
•
At
tra
ct a
nd re
ta
in a di
ver
se
ra
nge o
f ta
le
nt an
d
perspectives
.
•
Ensu
re em
ploye
es a
re
engaged in their roles.
•
Ef
fec
tive
ly inve
st i
n pe
rs
ona
l
developmen
t and career
progression.
•
Sit
e vis
its by t
he w
hol
e Bo
ard
incl
udi
ng s
ess
ion
s wi
th a cro
ss-
se
ct
ion o
f emp
loyee
s ena
bl
ing
emp
loye
es to en
gag
e dir
ec
tly w
ith
Bo
ard m
emb
er
s.
•
Each o
f the N
on
-E
xe
cuti
ve Dir
ec
tor
s
are r
esp
on
sib
le fo
r emp
loyee
engagement a
t different
sites in
the
UK
, an
d act a
s a co
ndu
it b
et
wee
n
the Board
and emplo
yees.
•
The E
xe
cut
ive Cha
ir a
nd di
vis
ion
al
leadership hol
d regular “to
wn hall”
me
etin
gs w
ith s
ta
f
f to dis
cus
s an
d
com
muni
cate a r
an
ge of i
ssu
es.
•
All e
mp
loyee
s rece
ive a
n ind
uc
tio
n,
a Gro
up over
v
iew p
res
ent
atio
n an
d
det
ai
ls of C
arcl
o’s poli
cie
s and
pro
ces
se
s, hea
lt
h and s
afe
ty a
nd
mo
re.
•
The N
on
-E
xe
cuti
ve
Dir
ec
tor
s have s
ta
r
ted
to rec
omm
ence
workforce
meetings
foll
owi
ng th
e ea
sin
g of
travel
restric
tions.
•
Divisional leadership
cont
inu
ed to h
old
regular “town hall”
me
etin
gs of a v
ir
tu
al
nat
ur
e.
SHAREHOLDERS
Ou
r st
rate
gy ai
ms t
o de
live
r
long-term returns
to our
shareholders. W
e recognise
th
e imp
or
t
an
ce of t
he s
upp
or
t
of ou
r sh
ar
eho
ld
er
s as t
he
business makes
progress on
its restructuring and
value-creation plan.
•
Creat
ion of s
ha
reho
ld
er va
lu
e
req
uire
s a su
cces
sf
ul de
live
r
y
of ou
r str
ate
gy
.
•
Com
muni
cat
ion o
f pro
gres
s
on th
is s
trat
egy i
s imp
or
t
an
t
to en
sure s
har
eho
ld
er
s are
ap
pr
ais
ed of t
he p
otent
ial fo
r
retu
rn o
n inves
tm
ent.
•
The E
xe
cut
ive Cha
ir ma
int
ai
ns
reg
ula
r cont
ac
t wi
th ou
r key
sha
reh
ol
der
s a
nd rep
or
t
s re
gul
ar
ly
to th
e Boa
rd.
•
The C
omp
any p
rovid
es re
gul
ar
up
dates t
o the m
ar
ket via p
res
s
releases and pr
esentations f
ollowing
full-
y
ear an
d hal
f-
y
ear
resul
ts.
•
The C
omp
any u
tili
se
s the re
gul
ator
y
new
s sys
te
m to provi
de u
pdate
s on
rel
eva
nt sig
niﬁc
an
t new
s to
shareholders.
•
The E
xe
cut
ive Cha
ir
cont
inu
ed to li
ais
e wi
th
ke
y shareholders
throughout the
ﬁnanc
ial
period
.
•
Reg
ula
r upd
ates a
re
now p
rovid
ed to r
eta
il
inves
tor
s v
ia the
Inves
to
r Mee
t
Compan
y platform
.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
15
Carclo plc
Annu
al rep
or
t a
nd a
ccount
s 2022
Stak
eholders
Material issues
How w
e engage
Outcomes
CUSTOMERS
Ou
r pr
odu
ct
s en
abl
e ou
r
cu
sto
me
rs to d
el
ive
r the
ir
solutions in highly
regulated,
safety-critical environments.
•
Ensu
re we me
et or e
xce
ed
our cu
sto
me
rs’ re
qui
rem
ent
s
in a
ll res
pe
ct
s: qua
li
ty;
on-t
ime d
el
iver
y; v
alu
e.
•
Provi
de te
chni
ca
l so
luti
on
s
that e
nab
le o
ur cus
tom
er
s’
pro
duc
t
s to be co
mp
etit
ive in
their markets.
•
Obt
ai
n fee
dba
ck on w
her
e we
are p
er
fo
rm
ing we
ll a
nd any
are
as w
her
e we ca
n imp
rove.
•
Cont
inu
ous e
nga
ge
men
t by a ran
ge
of em
ploye
es in o
ur di
vis
ion
s
incl
udi
ng di
vis
ion
al CEO
s via
face-t
o-face
and telephone
me
etin
gs, to d
is
cuss p
er
fo
rm
anc
e
and future
solutions.
•
Mea
su
rem
ent a
nd m
oni
tor
ing of key
op
era
tio
nal K
PIs a
t both b
us
ine
ss
uni
t an
d Boa
rd le
vel.
•
Management
cont
inu
ed to li
ais
e wi
th
customers throughout
the p
er
io
d to dis
cus
s
pe
r
for
man
ce an
d
future solutions.
•
Op
er
atio
nal K
PI
s at
bot
h bus
ine
ss u
nit a
nd
Bo
ard l
evel have b
een
cont
inu
all
y devel
op
ed
throughout the period.
SUPPLIERS
Ou
r sup
pl
ie
rs e
na
ble u
s to
de
live
r on o
ur co
mm
itm
en
ts
responsib
ly and sustainably
.
•
Ensure high
stan
dards
throughout our supply chain
.
•
Ensu
re com
pli
anc
e wit
h
recognised standa
rds that
uphold human rights and
sa
fet
y
, p
roh
ibi
t mo
der
n
slave
r
y an
d prom
ote
susta
inable sourcing.
•
Develop
long-t
erm
pa
r
tne
r
ship
s tha
t ena
ble
ustom
eet o
ur cus
tom
er
commitm
ents.
•
Reg
ula
r aud
it
s are c
ar
rie
d ou
t at key
suppliers.
•
Sup
pl
ier
s a
sked to a
gre
e to Ca
rclo’s
po
lici
es on m
od
er
n slaver
y an
d
human trafﬁcking, and anti-bribe
ry
an
d cor
rupt
io
n.
•
New s
upp
lie
rs a
re au
dit
ed b
efore
approval
.
•
Regular audits
cont
inu
ed to b
e ca
rr
ied
out a
t key supp
lie
r
s.
LENDING BANK
The G
ro
up’s le
ndi
ng b
ank
pr
ovid
es f
und
s th
at en
ab
le
th
e Com
pa
ny to inve
st
an
dgro
w.
•
Se
cure l
ong
-ter
m ﬁna
ncia
l
suppor
t for the Gr
oup.
•
Ensure tha
t the lending bank
is a
ppr
ai
se
d of pro
gre
ss o
n
the G
rou
p’s valu
e-
creati
on
s
t
r
a
t
e
g
y.
•
The E
xe
cut
ive Cha
ir a
nd CFO wor
k
closely wit
h the lend
ing bank.
•
The G
rou
p prov
ide
s info
rma
tio
n
rel
atin
g to Gro
up pe
r
for
ma
nce a
nd
pro
gre
ss o
n str
ateg
y de
live
r
y to the
ba
nk on a re
gu
lar b
as
is.
•
Quar
terly update
me
etin
gs a
re he
ld wi
th
the lending
bank, as
well a
s re
gul
ar u
pdat
es
an
d sup
ply
ing o
f
info
rma
tio
n in
bet
ween meetin
gs.
PENSION
The Compan
y pro
vides deﬁci
t
repair con
tributions to
the
Group pension fund which in
turn pro
vides reti
rement
be
neﬁ
ts fo
r pa
st a
nd cu
rr
ent
em
ploye
es o
f th
e now-
cl
os
ed
deﬁned beneﬁ
t pension
scheme.
•
Achi
evin
g an a
gree
d sch
ed
ule
of deﬁ
cit re
pa
ir con
tri
but
io
ns
that b
al
ance
s th
e nee
ds o
f
the s
che
me a
nd th
e ne
eds o
f
the b
us
ine
ss to inve
st
.
•
Ensu
ri
ng tha
t the s
che
me
a
sse
ts a
nd li
abi
lit
ies a
re
managed appropria
tely
.
•
The E
xe
cut
ive Cha
ir a
nd CFO wor
k
clo
sel
y wi
th th
e pen
sio
n tr
us
tee
s.
•
The G
rou
p prov
ide
s info
rma
tio
n
rel
atin
g to Gro
up pe
r
for
ma
nce a
nd
pro
gre
ss o
n str
ateg
y de
live
r
y to the
pe
nsi
on tr
us
tee
s on a re
gul
ar b
as
is.
•
The G
rou
p is wor
k
ing cl
os
ely w
ith
the p
en
sio
n tru
st
ees t
o del
iver t
he
optimal
long-term
funding and
management solution.
•
Quar
terly update
me
etin
gs a
re he
ld wi
th
the p
en
sio
n sch
eme
tr
ust
ees
, as w
ell a
s
reg
ula
r upd
ates a
nd
sup
ply
ing o
f
info
rma
tio
n in
bet
ween meetin
gs.
LOCAL COMMUNITIES
We bel
ieve t
hat b
us
ine
ss
sh
oul
d be a f
orc
e for g
oo
d in
the communities in
which we
op
era
te. We aim t
o sup
po
r
t
an
d ins
pi
re o
ur em
pl
oyee
s to
ma
ke a dif
fe
re
nc
e in th
ei
r
communities.
•
Und
er
s
ta
nd how w
e can
cont
rib
ute p
os
iti
vely a
nd
sus
t
ain
ab
ly to ou
r lo
cal
communities.
•
The responsibilit
y for community
eng
age
me
nt is d
evolve
d to th
e loc
al
business unit
s.
•
So
me ac
ti
vit
y ha
s b
ee
n
cur
t
ail
ed i
n the p
er
io
d
due t
o the pandemic
,
howeve
r mo
re
informa
tion can
be
se
en in o
ur Res
po
nsi
bl
e
Operations r
eport on
pag
es 21 an
d 22.
16
Ca
rclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
KEY PERFORMANCE
INDICA
TORS
T
o enable our performance to be track
ed a
gainst our organic growth strateg
y
, we have
determined that the following k
ey performance indicators (“KPls”) should be focused on.
Financial KPIs
R
ev
enue from continuing
operations (£m)
Underlying operating
proﬁt from continuing
operations (£m)
Net debt e
xcluding
lease liabilities (£m)
2018
10
4
.7
20
19
105.3
2020
11
0
.
5
2021
1
0
7.
6
202
2
12
8
.6
2018
6.2
20
19
6.4
2020
7.
3
2021
4.8
202
2
6
.1
2018
31.
5
20
19
3
7.
0
2020
2
2
.1
2021
20.5
202
2
21.
5
2018
31.
5
20
19
38.
5
2020
2
7.
4
2021
2
7.
6
202
2
32
.
4
2018
1
0
.1
1.
2
2020
5.0
2021
6.6
202
2
7.
8
2018
8.3
20
19
6
.9
2020
4.7
2021
2.7
202
2
2.5
£128
.6m
▲
19
.5%
£6.1m
▲
26.
9%
£21.5m
▲
4.
9%
£32.4m
▲
17
.4%
7.
8
%
▲
1.2%
2.5
▼
0
.2%
Deﬁnition and me
thod of calculation
Revenue f
rom conti
nuin
g ope
rati
ons
(
comp
arat
ive year
s have bee
n
res
tate
d to remove dis
conti
nued
ope
rati
ons a
nd so to p
res
ent
contin
uing o
per
atio
ns on a
like-f
or-lik
ebasis
)
.
Deﬁnition and me
thod of calculation
Op
erat
ing pro
ﬁt fro
m continu
ing
operations before discontinued
operations, separat
ely disclosed it
ems
and e
xcepti
ona
l item
s (
compa
rati
ve
year
s have bee
n rest
ated to re
move
dis
contin
ued o
per
atio
ns an
d so to
pres
ent co
ntinui
ng op
erat
ions o
n a
like-for-like ba
si
s
)
. Plea
se r
efer to the
reconc
ilia
tion o
f non-GA
AP ﬁn
ancial
mea
sure
s wit
hin th
e inform
ation fo
r
shareholders on page
1
53.
Deﬁnition and me
thod of calculation
Net d
ebt excl
udin
g lea
se li
abil
itie
s is
deﬁn
ed a
s loa
ns a
nd bo
rrowi
ngs,
exclu
ding l
ea
se lia
bili
tie
s, les
s ca
sh
and c
a
sh de
pos
its a
s at th
e bal
ance
she
et date. Plea
se re
fer to the
reconc
ilia
tion o
f non-GA
AP ﬁn
ancial
mea
sure
s wit
hin th
e inform
ation fo
r
shareholders on page
1
53.
Deﬁnition and me
thod of calculation
Net d
ebt is de
ﬁned a
s l
oan
s and
borrowings, including leas
e liabilities,
ca
sh a
nd ca
sh d
epo
sit
s a
s at the
ba
lance s
heet d
ate. Plea
se refer to t
he
reconc
ilia
tion o
f non-GA
AP ﬁn
ancial
mea
sure
s wit
hin th
e inform
ation fo
r
shareholders on page
1
53.
Leas
e liab
ilit
ies a
s at th
e bal
ance
she
et date were £10
.
9 m
illio
n.
On 1 A
pri
l 20
1
9 the G
roup in
itia
lly
ap
plie
d IFRS 16 Lease
s. The
comp
arat
ives for 201
7
/1
8 and 201
8/1
9
are p
rese
nted un
der t
he previ
ous
account
ing s
ta
nda
rd IAS 17
.
Deﬁnition and me
thod of calculation
Retur
n on ca
pit
al e
mpl
oyed mea
sure
s
the underlying
operating
proﬁt f
or the
Group,
including discontinued
ope
rati
ons, a
s a p
ercent
age of
av
erage capital employ
ed, calc
ulat
ed
a
s the avera
ge of th
e ope
ning e
quit
y
plu
s net de
bt and p
ens
ion li
abi
litie
s,
and cl
osi
ng equ
it
y plu
s net d
ebt an
d
pension liabilit
ies.
Deﬁnition and me
thod of calculation
Lost T
ime I
njur
y Frequ
enc
y Rate
mea
sure
s the nu
mbe
r of los
t tim
e
injur
ies p
er 100,000 ho
ur
s worked.
The 201
8, 20
1
9 and 2020 rates inclu
de
the discontinued Wipac business.
Explanation of importance
Hel
ps to mo
nitor o
ur su
ccess
ingrowi
ng the b
usi
nes
s.
Explanation of importance
Hel
ps to mo
nitor o
ur su
ccess
inge
ner
ating p
roﬁt
s from o
ur
operations
.
Explanation of importance
Hel
ps to ap
pr
ais
e the G
roup’s capi
ta
l
struc
ture and liquidity
.
Explanation of importance
Hel
ps to ap
pr
ais
e the G
roup’s
capit
alstructure and liquidit
y
.
Explanation of importance
Hel
ps to mo
nitor o
ur su
ccess in
generating
proﬁts fr
om the capital
emp
loyed in th
e bus
ines
s.
Explanation of importance
Hel
ps to mo
nitor o
ur su
ccess in
ope
rati
ng a sa
fe work
ing
environ
ment.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
17
Ca
rclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
Financial KPIs
Non-ﬁnancial KPI
Net debt
(£m)
R
eturn on capital emplo
y
ed
(
ex
cluding pension liabilities)
1
(%)
Lost Time
Injury
F
requency Rate
2018
10
4
.7
20
19
105.3
2020
11
0
.
5
2021
1
0
7.
6
202
2
12
8
.6
2018
6.2
20
19
6.4
2020
7.
3
2021
4.8
202
2
6
.1
2018
31.
5
20
19
3
7.
0
2020
2
2
.1
2021
20.5
202
2
21.
5
2018
31.
5
20
19
38.
5
2020
2
7.
4
2021
2
7.
6
202
2
32
.
4
2018
1
0
.1
1.
2
2020
5.0
2021
6.6
202
2
7.
8
2018
8.3
20
19
6
.9
2020
4.7
2021
2.7
202
2
2.5
£128
.6m
▲
19
.5%
£6.1m
▲
26.
9%
£21.5m
▲
4.
9%
£32.4m
▲
17
.4%
7.
8
%
▲
1.2%
2.5
▼
0
.2%
Deﬁnition and me
thod of calculation
Revenue f
rom conti
nuin
g ope
rati
ons
(
comp
arat
ive year
s have bee
n
res
tate
d to remove dis
conti
nued
ope
rati
ons a
nd so to p
res
ent
contin
uing o
per
atio
ns on a
like-f
or-lik
ebasis
)
.
Deﬁnition and me
thod of calculation
Op
erat
ing pro
ﬁt fro
m continu
ing
operations before discontinued
operations, separat
ely disclosed it
ems
and e
xcepti
ona
l item
s (
compa
rati
ve
year
s have bee
n rest
ated to re
move
dis
contin
ued o
per
atio
ns an
d so to
pres
ent co
ntinui
ng op
erat
ions o
n a
like-for-like ba
si
s
)
. Plea
se r
efer to the
reconc
ilia
tion o
f non-GA
AP ﬁn
ancial
mea
sure
s wit
hin th
e inform
ation fo
r
shareholders on page
1
53.
Deﬁnition and me
thod of calculation
Net d
ebt excl
udin
g lea
se li
abil
itie
s is
deﬁn
ed a
s loa
ns a
nd bo
rrowi
ngs,
exclu
ding l
ea
se lia
bili
tie
s, les
s ca
sh
and c
a
sh de
pos
its a
s at th
e bal
ance
she
et date. Plea
se re
fer to the
reconc
ilia
tion o
f non-GA
AP ﬁn
ancial
mea
sure
s wit
hin th
e inform
ation fo
r
shareholders on page
1
53.
Deﬁnition and me
thod of calculation
Net d
ebt is de
ﬁned a
s l
oan
s and
borrowings, including leas
e liabilities,
ca
sh a
nd ca
sh d
epo
sit
s a
s at the
ba
lance s
heet d
ate. Plea
se refer to t
he
reconc
ilia
tion o
f non-GA
AP ﬁn
ancial
mea
sure
s wit
hin th
e inform
ation fo
r
shareholders on page
1
53.
Leas
e liab
ilit
ies a
s at th
e bal
ance
she
et date were £10
.
9 m
illio
n.
On 1 A
pri
l 20
1
9 the G
roup in
itia
lly
ap
plie
d IFRS 16 Lease
s. The
comp
arat
ives for 201
7
/1
8 and 201
8/1
9
are p
rese
nted un
der t
he previ
ous
account
ing s
ta
nda
rd IAS 17
.
Deﬁnition and me
thod of calculation
Retur
n on ca
pit
al e
mpl
oyed mea
sure
s
the underlying
operating
proﬁt f
or the
Group,
including discontinued
ope
rati
ons, a
s a p
ercent
age of
av
erage capital employ
ed, calc
ulat
ed
a
s the avera
ge of th
e ope
ning e
quit
y
plu
s net de
bt and p
ens
ion li
abi
litie
s,
and cl
osi
ng equ
it
y plu
s net d
ebt an
d
pension liabilit
ies.
Deﬁnition and me
thod of calculation
Lost T
ime I
njur
y Frequ
enc
y Rate
mea
sure
s the nu
mbe
r of los
t tim
e
injur
ies p
er 100,000 ho
ur
s worked.
The 201
8, 20
1
9 and 2020 rates inclu
de
the discontinued Wipac business.
Explanation of importance
Hel
ps to mo
nitor o
ur su
ccess
ingrowi
ng the b
usi
nes
s.
Explanation of importance
Hel
ps to mo
nitor o
ur su
ccess
inge
ner
ating p
roﬁt
s from o
ur
operations
.
Explanation of importance
Hel
ps to ap
pr
ais
e the G
roup’s capi
ta
l
struc
ture and liquidity
.
Explanation of importance
Hel
ps to ap
pr
ais
e the G
roup’s
capit
alstructure and liquidit
y
.
Explanation of importance
Hel
ps to mo
nitor o
ur su
ccess in
generating
proﬁts fr
om the capital
emp
loyed in th
e bus
ines
s.
Explanation of importance
Hel
ps to mo
nitor o
ur su
ccess in
ope
rati
ng a sa
fe work
ing
environ
ment.
1.
Prio
r pe
ri
od co
mpa
rat
ives h
ave bee
n res
t
ated to e
xclu
de p
ens
ion l
iab
ili
tie
s.
20
19
18
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
RESPONSIBLE
OPER
A
TIONS
T
h
e Bo
ar
d c
o
ns
id
e
rs t
h
a
t i
t i
s
pa
ra
mo
un
t t
h
a
t t
he Gr
o
u
p m
ai
n
tai
ns
the
highe
s
t
ethical
a
nd
p
ro
f
es
sional
stan
d
ar
ds i
n al
l its u
nd
er
taki
n
g
s
.
WHA
T’S IN
THIS SECTION
People
En
vironmen
t
Hea
lth a
nd sa
fet
y
TCF
D
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
19
Carclo plc
Ann
ual re
po
r
t an
d accoun
ts 2022
Cor
por
ate so
cial res
po
nsib
ilit
y is a
keyelem
ent of op
er
ation
s and
decision-mak
ing. The
Group unders
tands
the im
po
r
ta
nce of en
suri
ng that th
e
bus
ine
ss ha
s a po
siti
ve impac
t on
employ
e
es, c
ustomers,
suppliers and
othe
r st
akeho
lde
rs, w
hich in tu
rn
supp
or
t
s th
e long
-term p
er
for
man
ce
ands
us
ta
inab
ilit
y of t
he bu
sine
ss.
Our p
hilo
so
phy is to emb
ed th
e
man
agem
ent of th
es
e area
s into ou
r
business ope
rations, both managing risk
and d
eli
verin
g opp
or
t
uniti
es that c
an
have a posi
tive inﬂu
ence o
n our b
usin
ess.
We also re
cogn
ise th
at the e
xp
ec
tati
ons
of all o
ur st
akeh
old
er
s are co
nst
ant
ly
increa
sin
g an
d we aim to, me
et and, in
time
, ex
ceed
these expectation
s.
Dur
ing t
he year th
ere have be
en no
pros
ecut
ion
s, ﬁnes o
r enforce
ment a
cti
on
a
s a resul
t of non
-co
mplia
nce wi
th sa
fet
y
,
health or environmental legislation.
We
ha
ve ac
hieved signiﬁcant r
eductio
ns
inaccid
ent rate
s an
d intro
duced a n
umbe
r
of new in
itiati
ves to sup
por
t the h
ealt
h
and we
llb
eing of o
ur emp
loyees
.
Group Ex
ecutive Committ
ee
The G
roup E
xe
cutive Com
mit
te
e, which
is chai
red by th
e Ex
ecuti
ve Chair
, dri
ves
the G
roup’s acti
ons in t
he ﬁel
ds of gl
oba
l
so
cial re
spo
nsib
ilit
y
, h
eal
th an
d safet
y
,
anti
-br
ibe
r
y an
d corr
uptio
n,
enviro
nme
nta
l and cli
mate chan
ge
polic
ies,
ch
aritable
support, e
quality an
d
human and labour rights, whistleb
lowing
and s
upply
ch
ain l
abour stand
ards
.
Environmental matters
Environmental Policy
Responsible operations
rep
or
t (p
ag
e 21
)
Emplo
yees
E
thical Policy
Health
and
Safe
ty Pol
icy
Equal Oppor
tunities and
Di
ver
sit
y a
nd In
clu
sio
n
Pol
ic
y
Responsible operations
rep
or
t (p
ag
es 20 an
d 21
)
Human rights
Modern Slav
ery Statement
Ethical Policy
Responsible operations
rep
or
t (p
ag
e 21
)
Anti-corruption and
anti-briber
y
Anti-Bribe
ry and Corruption
Pol
ic
y
Ethical Policy
Whistleb
lowing Policy
Responsible operations
rep
or
t (p
ag
e 21
)
Stat
eme
nt of co
rpo
rat
e
gover
na
nce (p
age
s 48
an
d50)
Poli
cy e
mbe
dd
ing, d
ue
diligence
and outcomes
Pri
ncip
al r
isk
s a
nd
uncert
ainties (page 3
1
)
De
scr
ipti
on of p
ri
ncip
al
ri
sk
s and i
mpa
ct o
f
business activit
y
Pri
ncip
al r
isk
s a
nd
uncert
ainties (pages 3
2
to38)
De
scr
ipti
on of t
he bu
sin
es
s
model
Our business
model and
st
rate
gy (p
age
s 12 and 1
3)
Non-ﬁ
nancia
l KPIs
Key per
fo
rm
an
ce ind
icato
r
s
(page 1
7)
Non-ﬁnancial reporting
Reporting
requirement
Po
lici
es and
standards
whi
ch g
overn
oura
pp
ro
ach
Ri
sk m
an
age
me
nt a
nd
additional information
We comp
ly wi
th th
e non
-ﬁna
nci
al re
po
r
tin
g req
uire
men
ts co
nta
in
ed in S
ec
ti
ons 41
4C
A an
d
4
14CBof the C
omp
ani
es Ac
t 200
6.
The t
a
ble b
el
ow
, an
d info
rma
tio
n to whi
ch it ref
er
s, is in
tend
ed to h
elp s
t
akeh
old
er
s
und
er
st
a
nd ou
r po
sit
ion o
n key non
-ﬁna
ncia
l mat
te
rs
.
20
Carclo
plc
Annua
l rep
or
t a
nd a
ccount
s 2022
RESPONSIBLE
OPERA
TIONS
continued
Employ
ees
The G
roup p
laces co
nsid
era
bl
e valu
e on
the invol
veme
nt of it
s empl
oyees a
nd
ha
s contin
ued to kee
p them i
nform
ed o
n
mat
ter
s af
fec
tin
g the
m and o
n var
iou
s
ﬁnan
cial a
nd eco
nom
ic fac
tor
s af
fe
cti
ng
the p
er
for
ma
nce of the G
roup.
The G
roup re
gula
rly u
pdate
s its
emp
loyme
nt pol
icies a
nd a
ll emp
loyees
are is
sue
d wit
h a st
af
f han
dbo
ok to kee
p
the
m up to date wit
h infor
matio
n relati
ng
to their employment
.
The G
roup o
per
ates, a
nd is com
mit
ted
to, a globa
l po
lic
y of equ
ali
ty t
hat
provid
es a wo
rki
ng envi
ronme
nt that
mai
nta
ins a cul
ture of re
spe
ct a
nd
reﬂe
ct
s the di
ver
sit
y of ou
r empl
oyees.
Itis com
mit
te
d to of
feri
ng equ
al
opp
or
t
unit
ies to a
ll pe
opl
e rega
rdle
ss of
their sex, nationalit
y
, ethnicity
, language,
age, st
atu
s, sex
ual o
rie
ntat
ion, rel
igio
n
ordi
sab
ilit
y
.
We believe th
at all em
ployee
s sho
uld b
e
ab
le to wor
k safe
ly in a hea
lthy wor
kp
lace
wit
hout fea
r of any for
m of
discrimination, bullying
or hara
ssment.
We believe th
at the Gro
up sh
ould
dem
ons
trate a f
air m
ix acro
ss a
ll level
s of
our b
usin
ess. At 31 Ma
rch 20
22, 29
.3% of
our e
mployee
s ide
ntiﬁe
d a
s femal
e (20
2
1
:
31
.6
%)
. Th
e pro
por
t
ion of wo
men i
n
senior management positio
ns amounted
to 1
1% (
20
21
: 1
2%
)
.
Our div
ersit
y encompasses differences in
ethnic
ity
, gender
, language
, age
, sexual
orientation, religion, socio-economic
st
atus, p
hysic
al an
d men
ta
l abil
it
y
,
thin
kin
g st
yl
e, exp
eri
ence a
nd ed
ucati
on.
We believe th
at the wi
de ar
ray of
per
sp
ec
tive
s that res
ult fro
m such
diversit
y promotes
innovation and
bus
ine
ss succe
ss. We ope
rate a
n equa
l
opp
or
t
unit
ies p
olic
y an
d provid
e a
hea
lthy enviro
nme
nt which w
ill
enco
urag
e goo
d an
d prod
uc
tive wor
kin
g
relationships within the organisation.
The s
afet
y an
d wellb
ein
g of the C
arclo
team ha
s cont
inue
d to be fo
remo
st in th
e
mind
s of the B
oa
rd and i
n addi
tion to t
he
mea
sure
s intro
duce
d at the s
ta
r
t of the
pan
dem
ic a ra
nge o
f fur
th
er ac
tio
ns have
be
en ta
ken to sup
por
t co
llea
gue
s
through these challenging times.
TheB
oard i
s gratef
ul for th
e po
siti
vit
y
,
resi
lien
ce and d
edic
atio
n shown
bycollea
gue
s agai
n this yea
r
.
The G
roup for
ma
lly lau
nche
d its G
roup
Healt
h and
W
ellbe
ing P
rog
ramme on
1Jun
e 20
2
1 (“Carclo c
ares”), an
d in
par
ticul
ar pu
t in pla
ce an Emp
loyee
As
sis
ta
nce Pro
gra
mme (“E
AP
”) he
lpli
ne
for al
l its e
mpl
oyees gl
oba
lly fro
m that
date. A Group St
ress, M
ent
al H
eal
th an
d
Wellbe
ing Poli
cy wa
s pu
t in pla
ce from
Novemb
er 202
1 and H
ealt
h and
Wellbe
ing Cha
mpio
n volunte
er
s are n
ow
in pla
ce at each site, wh
o drive fo
r
ward
ac
tion
s loc
all
y
. The G
roup i
s develo
pin
g
an int
ra
net site w
here h
eal
th an
d
wellb
ein
g can b
e bet
te
r prom
oted go
ing
for
wa
rd an
d so that e
mployee
s aro
und
the wo
rld c
an e
xchan
ge tho
ught
s, id
eas
and b
es
t pr
act
ice mor
e inform
all
y
.
The G
roup ha
s cont
inue
d to prom
ote the
hea
lth a
nd well
bein
g of it
s emp
loyees.
For
example
:
•
a
s a resul
t of our ac
ti
ons th
e accide
nt
rate (numbe
r of accide
nts/
hou
rs
worke
d) wa
s redu
ced fro
m
4.5/1
00,000 ho
urs i
n 20
20
/2
1 to
3.
7
/100,
00
0 in 20
21
/22 a
nd l
ost t
ime
injur
y fre
quen
cy r
ate reduce
d fro
m
2.
7accide
nts p
er 100,
00
0 hour
s
worke
d in 20
20
/21 to 2
.5 accid
ents
per100,000 h
our
s worke
d in 20
21
/22
a
s shown i
n the Key Per
for
mance
Ind
icator
s on p
age 17
;
•
the G
roup is ro
llin
g out I
SO 45001
;
•
in China a
nd In
dia, Wom
en’
s Day is
cele
brate
d ever
y year
. This in
clud
es a
sma
ll gif
t a
nd lu
nch for ou
r fema
le
employ
ees;
•
in China
, we tra
diti
ona
lly ho
ld an
ann
ual di
nner a
nd awa
rd an
d
reco
gniti
on cere
mony for
achi
eveme
nts, w
hich co
inci
des
wit
hthe Chin
es
e New Y
ea
r; a
nd
•
a safet
y d
ay was h
eld in I
ndia
.
Thisyea
r mar
ked the 51-y
ear
ann
iver
sa
r
y of the even
t. An an
nual
event is he
ld wh
ereby em
ployee
s
comp
ete for pr
izes fo
r slo
gan
s, make
safety pledges and man
agement
commu
nicat
es its plans
.
Dev
elopment
We continue to i
nvest in t
he
develo
pme
nt of al
l our em
ployee
s,
through both inf
ormal and formal
route
s.As
se
ssm
ent of in
divi
dual
tra
inin
gnee
ds is a key el
eme
nt of
the
ann
ual app
raisal pr
ocess
.
We regula
rly re
crui
t app
renti
ces, a
nd
wecurre
ntly have 39 emp
loyees e
nroll
ed
in regi
stere
d appre
ntices
hips glo
bal
ly
.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
21
Carclo plc
Annu
al rep
or
t a
nd a
ccount
s 2022
Ethical P
olicy
Follow
ing th
e enac
tm
ent of th
e Brib
er
y
Act 2010
, we have codiﬁe
d our Ethi
cal
Polic
y conﬁr
ming o
ur comm
itm
ent to not
tole
rati
ng br
ibe
r
y
, cor
rupt
ion or ot
her
unet
hica
l be
haviour o
n the p
ar
t of a
ny of
our b
usin
ess
es in a
ny par
t of the wo
rld.
Comp
lian
ce wit
h the Ac
t ha
s be
en a
pri
ori
t
y for the G
roup a
nd th
e po
licy
provid
es gu
ida
nce an
d ins
tru
cti
on to
emp
loyees a
nd tr
ain
ing ha
s be
en
per
for
med in a
ll a
reas o
f the bu
sine
ss
toensu
re that it i
s comp
lied w
ith.
Modern Sla
very Act 2015
Ca
rclo’
s Mo
der
n Slaver
y s
tate
ment fo
r
the yea
r ende
d 31 March 2022 can b
e
found at
w
w
w.ca
r
cl
o.co.u
k
.
En
vironmental Policy
It is th
e Grou
p’
s pol
icy to co
ntinua
lly
se
ekto eli
minate an
d, whe
re this is n
ot
practic
able, to
minimise negative
enviro
nme
nta
l impa
ct
s from t
he pur
su
it
of it
s var
iou
s busi
nes
s intere
st
s whil
st
continuing to pr
oduce high qualit
y
products to
its cust
omers’ r
equireme
nts.
It is th
e Grou
p’
s pol
icy to co
mply w
ith a
ll
st
atuto
r
y enviro
nme
nta
l leg
islati
on a
s a
mini
mum an
d to aim to i
mprove up
on
the s
ta
nda
rds s
et by the lo
ca
l regul
ator
y
authorities.
It is th
e Grou
p’
s pol
icy to fo
ster a
n
infor
med a
nd re
spo
nsib
le a
ppro
ach to
alle
nvironm
ent
al con
cern
s and i
t
encourages the
inv
olvement
of
employ
e
es, c
ustomers and
suppliers.
Regulatory author
ities are consulted
andi
nform
ed at a
ll ap
prop
riate ti
mes.
The G
roup con
tinue
s to sup
por
t
long-term strategies to minimise
,
reus
ean
d recycle p
acka
ging t
hroug
h its
mem
ber
sh
ip of Valpa
k, a not-for
-proﬁ
t
orga
nis
ation t
hrou
gh whi
ch a large
numb
er of b
usin
ess
es wor
k tog
ethe
r
torecover a
nd rec
ycle pack
agin
g.
Health and safety
A hea
lth a
nd sa
fet
y pol
icy s
tate
ment
isinp
lace to ens
ure a sa
fe work
ing
enviro
nme
nt at all ti
mes. T
he hea
lth
ands
afet
y p
olic
y st
atem
ent al
so
dem
ons
trate
s our re
spo
nsib
ilit
y to
customers,
suppliers and
cont
ractors
and we m
aint
ai
n commu
nicat
ion of th
e
po
licy at a
ll leve
ls thro
ugho
ut th
e Grou
p.
Global social responsibility
Ca
rclo is a gl
oba
l comp
any and we t
ake
ser
iou
sly o
ur resp
on
sibil
itie
s to mai
nta
in
an et
hica
l sup
ply cha
in towar
ds tho
se
commu
niti
es in wh
ich we op
erate.
Wit
hfull co
ntrol over o
ur ma
nufa
ctu
rin
g
facil
itie
s in low-
cos
t regi
ons we com
mit
to be a re
spo
nsib
le sup
pli
er
.
22
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
RESPONSIBLE
OPERA
TIONS
continued
Community in
volv
ement
We encour
age ou
r bus
ines
se
s to
suppor
ttheir local communities
throu
ghcha
rit
ab
le sup
po
r
t and
education initiatives and responsibilit
y
for thi
s is devol
ved to lo
cal m
anag
eme
nt.
We fully su
ppo
r
t the I
ndia
n gover
nment
’s
corp
or
ate socia
l res
pon
sibi
lit
y (“CSR”)
sche
me via o
ur faci
lit
y in Ba
nga
lo
re.
Inrece
nt year
s our C
TP bus
ine
ss ha
s
funded the planning, design and
cons
tru
ct
ion of a mu
lti-
use b
uil
ding i
n a
loc
al v
illag
e, bio-toi
let
s at three s
cho
ols,
cla
ssro
om bu
ildi
ngs a
nd a do
rmi
tor
y
buil
din
g at a fur
th
er t
wo sch
ool
s. We
have donate
d over 1
0,
00
0 face s
hiel
ds
dur
ing th
e CO
VID
-
1
9 pan
dem
ic pe
rio
d to
med
ica
l worker
s a
nd ﬁr
st re
spo
nde
rs i
n
our l
oca
l comm
uniti
es in I
ndia
. La
st yea
r
we supp
or
te
d a lo
cal ro
ads inf
ra
s
tru
ctu
re
pro
gra
mme, conti
nue
d our sup
po
r
t of
provid
ing LED s
treet l
amp li
ghtin
g in lo
ca
l
rur
al v
illag
es, a
s well a
s do
natin
g a
fur
t
her 3,00
0 face sh
iel
ds to fro
ntlin
e
essenti
al services
.
Our C
TP fa
cilit
y in L
atrob
e, USA
don
atedover $1
,20
0 wor
th of toys
(bothe
mpl
oyees an
d the Co
mpa
ny
)
atChri
stma
s 202
1 for the “
T
oys for T
ot
s”
campaign.
The H
ead O
f
ﬁce wellb
ein
g team ho
ste
d a
char
it
y event on 3
0 Ma
rch 20
2
2 in he
lpin
g
to ra
ise awa
rene
ss a
nd fun
ds a
s pa
r
t of
#Brain
T
umourA
warenessM
onth,
and
ra
ise
d a tota
l of £2
25 for Y
o
rk
shi
re’
s
Bra
inT
um
our Cha
ri
ty
.
Charitable donations
Ca
rclo emp
loyees p
ar
ti
cipate in a v
ari
et
y
of ac
tivi
ties to s
upp
or
t b
oth lo
cal a
nd
national chari
ties.
So
me hig
hlight
s fro
m our year i
nclud
e
our Ae
rosp
ace bu
sine
ss sup
po
r
ting i
ts
loc
al t
rai
ning b
oa
rd which is r
un a
s a
char
it
y thro
ugh EDE
T
A
. The ch
ari
t
y
provid
es for a
pp
rentice t
rai
ning m
ain
ly in
the Lothi
ans b
ut al
so ha
s so
me in
put into
the B
orde
rs a
nd Fi
fe regio
ns of S
cotlan
d.
We also m
ake char
ita
bl
e donat
ions i
n
supp
or
t o
f loc
al com
muni
ties. I
n the
20
21
/22 yea
r
, t
he Gro
up don
ated £1
4k
tochar
it
y (20
20
/2
1
: £1
5
k)
.
It is th
e Grou
p’
s pol
icy n
ot to make
po
litic
al d
onati
ons a
nd no su
ch donat
ion
s
were mad
e in th
e year (20
20
/2
1
: £nil).
T
ask Force on Climate-r
elated
Financial Disclosures (“TCFD
”)
The TCFD recomme
ndati
ons co
nst
itute
arobu
st re
por
tin
g app
roach for
orga
nis
ation
s, wit
h new req
uirem
ent
s
includi
ng
: mapping the
risks and
oppor
tunities to business
es arising from
climate cha
nge, mo
del
ling a v
ari
et
y of
climate cha
nge s
cena
rio
s for a bu
sine
ss,
alongside mor
e usual
calcula
tion o
f
ca
rbo
n footp
rint
s an
d as
so
ciated
operational
metrics.
The T
CFD
recomme
ndations
come
fromt
he Fina
ncia
l Sta
bili
ty B
oa
rd (“FSB”),
an inte
rnati
ona
l orga
nis
ation p
romot
ing
macro
econ
omic s
ta
bil
it
y
, a
nd they s
eek
to bet
te
r inform i
nvesto
rs of t
he climate
change
implica
tions f
or businesses
.
Asare
sul
t, they ar
e desi
gne
d for
organisations with a signiﬁcant amount
of equ
it
y
. Vari
ous gover
nme
nts a
re
ado
pting TCFD recomme
ndat
ions,
andt
he U
K is an ea
rly a
dopter.
Ca
rclo is awa
re of the U
K’
s ado
ption of
the FSB
’
s T
CFD recom
men
datio
ns.
Given the difﬁcult trading environment
over the la
s
t t
wo year
s and t
he new
challengi
ng and onerous
reporting
requirements, which will require
enha
nced m
ana
geme
nt inp
ut to devel
op
the re
por
tin
g proce
sse
s, Ca
rclo ha
s
engaged appropria
te
stakeholders to
es
ta
blis
h suit
ab
le re
por
t
ing rou
tin
es
forthi
s new le
gisl
ation i
n a time
ly an
d
tho
rough m
ann
er in th
e nex
t
ﬁnanc
ial
y
ear
.
As a re
sul
t, our TCF
D rep
or
ti
ng wil
l
char
tC
arcl
o’
s prog
ress by in
cludi
ng
climat
e-related disclosures consistent
wit
h T
CFD recomm
endat
ion
s and
disclosures and the Listing Rules
requ
irem
ents o
f LR 9
.8.6R.
Ca
rclo ha
s tim
eta
ble
d the d
evelop
ment
of it
s full TCFD repor
ting c
ap
abi
litie
s to
comm
ence in t
he ne
x
t ﬁnan
cial yea
r
.
Dis
clos
ures in f
utu
re repo
r
tin
g will fo
llow
the s
even T
CFD recom
mend
ed Pr
incip
les
for Ef
fec
tive D
isclo
sure
s, so that t
hey
should
:
1
.
repre
sent rel
evant infor
matio
n
;
2.
b
e sp
eciﬁc a
nd com
ple
te
;
3.
be cl
ear
, bal
ance
d and
understa
ndable
;
4. be con
sis
tent over tim
e;
5.
b
e compa
ra
ble a
mo
ng comp
ani
es
wit
hin a se
cto
r
, in
dus
tr
y or p
or
t
fo
lio;
6.
be re
liab
le, veri
ﬁabl
e an
d obje
ct
ive;
and
7
.
be p
rovide
d on a tim
ely b
as
is.
The
se fu
ture di
sclo
sure
s will, a
s
recom
men
ded by th
e T
CFD
, focus
stro
ngl
y on ri
sk
s and o
ppo
r
tun
itie
s
relate
d to tr
ans
itio
n to a lower-c
ar
bon
econom
y
.
The TCFD recomme
ndati
ons w
ill he
lp us
bet
te
r und
er
st
an
d the cli
mate-
relate
d
ris
ks we f
ace an
d infor
m how we mon
itor
and m
ana
ge climate
-re
lated ri
sk
s and
oppor
tunities.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
23
Carclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
T
o fr
ame i
ts d
isclo
sure
s, Ca
rclo will t
ake
the fou
r overa
rching El
emen
ts of
Recom
men
de
d Climate
-Re
lated Fi
nan
cial
Disclosures, being:
A.
Gover
nance (the o
rgan
isat
ion’s
gover
nan
ce arou
nd clim
ate-r
elated
risks an
d oppor
tunities)
B. Strateg
y (the ac
tual a
nd p
otentia
l
impa
ct
s of clim
ate-re
lated r
isk
s an
d
oppor
tunities on the organisation’
s
bus
ine
sse
s, str
ategy a
nd ﬁn
ancia
l
planning)
C.
Ris
k Mana
gem
ent (the pro
ces
ses
use
d by the o
rgan
isati
on to id
entif
y
,
a
sse
ss a
nd ma
nag
e climate
-rel
ated
r
i
s
k
s)
D.
M
etr
ics a
nd T
ar
get
s (the metr
ics a
nd
ta
rget
s us
ed to a
sse
ss a
nd ma
nage
rel
evant cli
mate-
relate
d ris
k
s and
oppor
tunities)
Gov
ernance
The B
oard re
cogn
ise
s that cha
nge
s to
the cli
mate may have far-reachin
g
cons
equ
ence
s for the G
roup. The B
oa
rd
ta
kes overa
ll accoun
ta
bilit
y fo
r the
management of risks and opp
or
tunities,
which will include c
limate ch
ange.
Resp
ons
ibili
t
y for devel
opi
ng an
d
evaluating climat
e-related policies will
bed
ele
gated to th
e ESG Com
mit
tee,
which w
ill in
corp
orate t
he TC
FD Steer
ing
Comm
it
tee, wit
h ﬁr
st me
etin
gs
pla
nne
din F
Y23. Th
e Group E
xe
cuti
ve
Comm
it
tee a
nd Bo
ard cur
rentl
y consi
der
ESG mat
te
rs a
s a st
a
ndin
g agen
da ite
m.
The Au
dit a
nd Ris
k Comm
it
tee over
se
es
and a
dvis
es th
e Boa
rd on t
he Gro
up’
s ris
k
ex
po
sure, ris
k app
etite a
nd f
uture
ap
proach to r
isk
, and t
herefo
re will
recei
ve the rep
or
t
s of the E
SG an
d
T
CFDSteeri
ng Com
mit
tee fo
r
comm
entan
d review.
The ES
G Commi
t
tee wi
ll sup
por
t t
he
Boa
rd by review
ing a
nd mon
itor
ing th
e
proc
esses f
or setting
cli
mat
e-rela
ted
ta
rget
s an
d colle
ct
ing th
e data a
nd
infor
matio
n requ
ired to su
ppo
r
t the
T
CFDrepo
r
tin
g and s
trate
gy
.
The Au
dit a
nd Ris
k Comm
it
tee w
ill al
so
a
ssis
t the B
oa
rd by moni
torin
g ﬁna
ncial
an
d non
-ﬁnan
cial cl
imate
-relate
d ri
sk
s.
Itwil
l be res
po
nsib
le for tr
ack
ing cha
nge
s
relate
d to this a
rea that cou
ld chan
ge th
e
risk pro
ﬁle.
Strat
egy
As s
tate
d, Carcl
o will s
et up a
n ESG an
d
T
CFD Steer
ing Co
mmi
t
tee to:
A.
Ide
ntif
y cli
mate-
related r
isk
s a
nd
oppor
tunities over the short, medium
and l
ong te
rm
B. Ensure r
isk
s are a
dde
d to our over
all
risk register
C.
Devel
op a st
rateg
y to miti
gate the
ide
ntiﬁe
d ris
ks a
nd a s
trate
gy to
evaluate an
y identiﬁed oppo
rt
unities
Risk
A summ
ar
y of o
ur curre
nt pri
ncipa
l ris
ks
ca
n be foun
d on pa
ge 31 of this a
nnua
l
repo
r
t.
The Au
dit a
nd Ris
k Comm
it
tee rev
iews
pri
ncipa
l an
d eme
rging r
isk
s an
d how
they a
re mon
itore
d.
Look
ing to t
he fu
ture, we will co
ntinu
e to
strengthen how climat
e risk resilience is
ident
iﬁed,
assessed and p
roperly
emb
edd
ed in o
ur bu
sine
ss a
nd acros
s it
s
value chain.
Metrics and targets
We hav
e rep
or
ted o
n our S
cope 1 a
nd 2
emis
sio
ns on p
age 24 of this an
nua
l
rep
or
t, wh
ich summ
ari
ses i
n a ta
bula
r
format these emissions for our business.
Fur
ther m
etr
ics a
nd ta
rget
s wil
l be
ide
ntiﬁe
d a
s we condu
ct f
ur
the
r ana
lys
is
into th
e climate
-re
lated r
isk
s an
d
oppor
tunit
ies. This will inc
lude
considera
tion of
, understanding, and
ide
ntif
yi
ng our S
cop
e 3 emis
sio
ns in
orde
r for Ca
rclo to ga
in a wid
er
und
er
st
and
ing of o
ur imp
act o
n the
enviro
nme
nt and h
ow this im
pac
ts o
ur
trading relationships.
Next st
eps
Ca
rclo’
s tim
eta
ble fo
r develo
pin
g full
T
CFD repo
r
tin
g cap
abi
liti
es in th
e nex
t
ﬁnan
cial yea
r is a
s follow
s:
Q1 – Esta
bli
sh an i
ntern
al s
teer
ing
commi
t
tee re
spo
nsib
le for TCFD deliver
y
Q1 – Engage wi
th the B
oa
rd to es
ta
blis
h
oversight of
climat
e risks
Q1 – Commen
ce data co
lle
cti
on
pro
cess
es, bu
ildi
ng on th
os
e alrea
dy in
place fo
r ESOS, S
ECR and CCA
Q
2 – Comm
ence ma
ppi
ng ou
t ris
ks a
nd
opp
or
t
unit
ies to Ca
rclo f
rom climate
chan
ge (e
.g. upstrea
m an
d down
strea
m
goods an
d servic
es’
a
vailab
ility an
d
pri
ceris
ks)
Q3 – Addre
ss Ris
k Ma
nagem
ent i
tems of
pla
ns, a
mend
ing p
roces
se
s as n
eces
sa
r
y
to ensu
re this i
ncor
por
ates
cons
eq
uen
ces of cl
imate cha
ng
e
Q4 – Fin
alis
e Met
ric
s and T
a
rget
s item
s
(for inst
an
ce, ﬁnali
sing S
ECR ﬁgures fo
r
Scop
e 1 an
d 2, KPIs c
alcul
ation)
Q4 – Fin
al me
etin
gs to cover dis
clos
ures
to be en
tered into t
he F
Y23 a
nnua
l repo
r
t
T
CFD requi
reme
nts a
re alto
get
her
stro
nge
r tha
n previo
us ca
rb
on rep
or
t
ing
leg
islat
ion (e
.g. ESOS, SECR) due to th
e
Strate
gy an
d Govern
ance co
mpo
nent
s,
which re
quir
e seni
or s
ta
kehold
er
eng
agem
ent. O
ur tim
eta
ble fo
r FY
23
T
CFD repo
r
tin
g will b
e guid
ed th
rough
qua
r
terl
y mee
ting
s adopt
ing th
e
over-
archi
ng TCF
D the
mes of
Governanc
e,
Strat
egy
, Risk Mana
gement,
and Me
trics
and T
argets.
24
Carclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
RESPONSIBLE
OPERA
TIONS
continued
Greenhouse gas emissions and energy consumption
The G
roup is re
quir
ed to rep
or
t i
ts a
nnua
l gree
nhou
se ga
s (“GHG”) emi
ssio
ns pu
rsu
ant to th
e Comp
anie
s (Dire
cto
rs’ Rep
or
t) an
d
Limi
ted Lia
bili
ty P
ar
tn
er
ship
s (Energy a
nd C
arb
on Re
por
t) Regu
latio
ns 201
8 (“Re
gulati
ons”). The 20
18 Regulatio
ns, k
nown a
s
Stream
line
d Energ
y and C
ar
bon Re
por
tin
g, cam
e into ef
fec
t on 1 A
pr
il 20
1
9
. We have collated dat
a dur
ing th
e year to 31 March 2022
and a
re rep
or
ti
ng em
issi
ons a
nd en
ergy con
sumpt
ion for t
his p
eri
od to coin
cide wi
th th
e Group’s ﬁnan
cial rep
or
t
ing p
eri
od.
Greenhouse gas emissions
Y
ear
-on-y
ear GHG emissions: location-based methodology
Emissions from:
202
2
2
021
Percen
tage
change
Scop
e 1 (tCO
2
e
) Ga
s, fu
el an
d indu
st
ria
l emis
sion
s
5
67
522
8.6
%
Scop
e 2 (tCO
2
e
) Ele
ct
rici
t
y
19,1
2
9
20,5
6
4
(6.
7
)%
To
t
a
l
(
t
C
O
2
e)
19,
6
9
6
21,
0
8
6
(6
.
3
)%
Grou
p revenue (£ milli
on)
12
8
.6
1
0
7.
6
1
9.
5
%
Inten
sit
y r
atio (tCO
2
e per £1 mi
llion o
f revenue)
1
5
3
.1
195
.
5
(2
1.
3
)%
Energy consumption
Ca
rclo cons
ume
d a total o
f 4
2,
1
57 MWh of e
nerg
y glob
all
y duri
ng 20
21
/2
2 (20
20/2
1
: 44,068 MW
h
) compr
isi
ng UK 202
1
/22
1
5,
790MWh (20
20
/21
: 14
,068) and res
t of the wo
rl
d 20
2
1
/22 26,36
7 MWh (20
20
/21
: 30,000 M
Wh)
. U
K tCO
2
e 20
21
/22 3,431
(20
20/2
1
:3,200)
, res
t of the wo
rld 202
1
/22 16
,265 (2
0
20
/21
: 1
7
,
900).
T
ota
l ene
rgy con
sume
d 4
2,
1
57 MWh
=
32
8.5 MW
h/£ million of r
evenue
T
ot
al reven
ue £1
28.6 mill
ion
The in
tensi
ty r
atio of e
nerg
y
consu
mptio
n ha
s decrea
s
ed thi
s year
due to in
crea
sed G
roup reven
ue an
d a
redu
ct
ion in over
all e
nerg
y consu
med.
Energy performance –
electricity(MWh)
From Apr
il 20
21 to March 20
22 t
he tota
l
ele
ct
ricit
y co
nsum
ption w
as 19
,
1
29 MWh
and i
t ha
s be
en ca
lculate
d that 20
21
/2
2
ele
ct
ricit
y co
nsum
ption i
s 6.
7% lower
tha
n in the s
am
e per
iod i
n 20
20
/2
1
.
Energy performance –
naturalgas (MWh)
From Apr
il 20
21 to March 20
22 t
he tota
l
natur
al ga
s con
sumpt
ion wa
s 567 MWh
and i
t ha
s be
en ca
lculate
d that 20
21
/2
2
natur
al ga
s con
sumpt
ion is 8.6% higher
tha
n in the s
am
e per
iod i
n 20
20
/2
1
.
Energy performance –
directtr
ansport (MWh)
From Apr
il 20
21 to March 20
22 t
he tota
l
dire
ct tr
an
spo
r
t cons
umptio
n wa
s
458MWh a
nd it ha
s b
een c
al
culated that
20
21
/22 t
ra
nsp
or
t en
ergy co
nsumpt
ion i
s
38% hig
her t
han in t
he sa
me p
eri
od in
20
20
/21
. Th
e glo
bal p
and
emici
n 20
20
/2
1
reduc
ed transport consump
tion.
The G
roup ha
s un
der
t
aken a r
an
ge of
improv
ed energy management initiatives
in the yea
r
.
There ha
ve been several ener
gy efﬁciency
imp
rovement
s in th
e India s
ite, inclu
ding:
MH la
mps b
ein
g repla
ced by LED light
s at
Hal
l B and H
all E, CFL lig
hts b
eing re
place
d
by LED pan
el lam
ps in a
dmin, of
ﬁce a
nd
a
sse
mbly h
all
s, auto on
/
of
f co
ntrol (time
ba
se
d) provid
ed to s
treet l
ight
s an
d store
area to
minimise the illuminating hours,
conver
sion o
f the T
4 tu
bes i
nto LED in all
of the m
achine wo
rk
ing t
ab
les, i
nst
al
latio
n
of moti
on se
nso
rs fo
r work t
ab
le la
mps/
fa
ns repl
aced by LED lig
hts at Ha
ll B –
contin
ued i
n this year, with a pla
n to
ins
ta
llsp
eed re
gulato
rs i
n ex
haus
t fa
ns.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
25
Carclo plc
Annu
al re
po
r
t an
d accoun
ts 2022
The T
a
ica
ng si
te ha
s update
d the m
otor
from ﬁ
xed f
requ
enc
y to var
iab
le
freq
uen
cy for t
he HVA
C sys
tem.
Inaddition, the
y hav
e upgraded heating
fa
ns for so
me ma
chine
s to save ene
rgy
,
and h
ave adjus
ted th
e room te
mpe
ratur
e
in the facility
.
The B
runto
ns site h
as re
newed a
nd
ser
v
iced g
as cei
ling h
eater
s in the f
ac
tor
y
to redu
ce ga
s usa
ge.
Mitcha
m an
d China have add
ed a
ir
savin
gnoz
zle
s for auto
matio
n, lead
ing
toa redu
cti
on of 16
% d
eman
d from
comp
ress
or
s. China h
as co
nver
ted th
e
HVA
C sys
tem fro
m ﬁxe
d freq
uenc
y to
var
iab
le for m
inimu
m 1
5% reduced p
ower
consu
mptio
n. The Chi
na and B
rno s
ites
have improved t
heir B
arre
l/Heate
r ban
d,
redu
cing en
ergy by .63 kW
h. per m
achin
e
ann
uall
y
. The Ch
ina fa
cilit
y ha
s be
en
conver
ted to a
ll LED lig
hting.
For F
Y23, al
l site
s are eva
luatin
g the
fea
sibil
it
y of so
lar p
ane
ls, an
d ene
rgy
monitoring of equipment included with
MES. I
n add
itio
n, the si
te in China ma
de
som
e chan
ges to re
duce H
V
AC deman
ds
and tow
er
/
ch
iller systems t
o limit
energy
in coo
ling w
ater
. A
ll si
tes wil
l have energ
y
monitoring on all equipm
ent as Thingtra
x
integration is ﬁnalised.
The Head Of
ﬁce
ha
s be
en relo
cate
d from a
n old
er s
tone
buil
din
g to a mod
ern of
ﬁ
ce, which ha
s
redu
ced sq
uare fo
otag
e from, 4256 sq. f
t
to, 2
450 sq. ft.
Methodology and e
xclusions
We hav
e rep
or
ted o
n all t
he em
issi
on
sou
rces req
uired u
nde
r the Co
mpa
nies
(Dire
cto
rs’ Rep
or
t) and L
imite
d Liab
ilit
y
Par
t
ner
shi
ps (Energ
y and C
ar
bo
n Repo
r
t)
Regul
ation
s 20
18. These s
ource
s fal
l
within our consolidated ﬁnancial
st
ateme
nts. We do not have res
po
nsib
ilit
y
for any e
miss
ion s
ources t
hat are not
included in our consolidated statement,
other than those highlighted below
.
This re
por
t is a
ligne
d wit
h the G
HG
Protoco
l meth
odo
log
y
. The G
HG
Protoco
l es
t
abl
ish
es co
mpre
hen
sive
glo
bal s
ta
nda
rdis
ed fr
am
ework
s to
mea
sure a
nd ma
nag
e green
hou
se ga
s
emis
sio
ns fro
m pri
vate and p
ubl
ic se
cto
r
ope
rati
ons, v
alue ch
ain
s and m
itigat
ion
ac
tion
s. The f
ram
ewor
k has b
ee
n in us
e
since 20
01
, a
nd for
ms a reco
gnis
ed
str
uc
ture
d form
at, to cal
culate a ca
rb
on
footp
rint. T
he tota
l ele
ct
rici
ty co
nvers
ion
to
CO
2
is on a l
ocat
ion-
ba
se
d ba
sis.
Energ
y consu
mptio
n is ex
pre
sse
d in
K
Wh: kilow
at
t hour
s, a
s thi
s is the u
nit
spe
ciﬁe
d by SECR legi
slati
on. Def
ra 201
9
emis
sio
ns fac
tor
s have be
en uti
lise
d for
UK si
tes a
nd ap
prop
riate cou
ntr
y-sp
eciﬁ
c
emis
sio
ns fac
tor
s have be
en uti
lise
d for
overs
ea
s ope
rati
ons, u
sing p
ubli
she
d
emis
sio
ns fac
tor
s by the U
nite
d States
Environ
ment
al Prote
cti
on Ag
enc
y and
the I
nternat
iona
l Energ
y Agen
cy
.
Data h
as b
een co
llated f
rom s
ource
docu
ment
atio
n or
, where t
his ha
s be
en
impractic
able, using estimates.
Ca
lculati
ons of e
miss
ions fo
r the p
eri
od
have bee
n made u
sing t
hird-
par
t
y
,
spe
cial
ist s
of
t
ware a
nd have und
ergo
ne
third-par
t
y qualit
y assura
nce
.
26
Carclo plc
An
nua
l repo
r
t an
d accou
nts 2022
Financial impro
vement acr
oss the board
despite global economic headwinds.
Phil White
Ch
ief Fi
na
nc
ia
l Of
ﬁc
er
Acros
s the b
oard, ﬁn
ancia
l
impro
vement
despite global
economic
headwi
nds:
•
Grou
p revenue up 19
.5% to
£1
28.6mil
lion (202
1
: £10
7
.6 million)
•
Und
erl
ying EB
ITDA up 21
.
3% to
£1
3.
1m
illi
on (20
2
1
: £1
0.8 million)
•
Und
erl
ying o
per
atin
g proﬁt u
p 26.
0%
to £6.
1milli
on (20
21
: £4
.8 mill
ion)
•
Und
erl
ying EP
S up 29
.2% to 3.
1 p
ence
(2021
:
2.4 p
e
nc
e)
•
Statu
tor
y EPS 7
.
9 pen
ce (2
02
1
:
10
.
1pe
nce
)
•
E
xceptio
nal, no
n-re
curr
ing ga
ins
£1
.4million (202
1
: £
5.
7 mill
ion)
•
Pensi
on deﬁci
t redu
ced 30.3% to
£26.0 millio
n (20
21
: £37
.3 milli
on)
•
Net a
ss
ets m
ore th
an tr
ipl
ed to
£24.4million (202
1
: £7
.
9 m
illi
on
)
fromp
roﬁt a
nd pe
nsio
n gai
ns
•
Ca
sh ge
ner
ated fr
om op
erat
ions of
£6.8 millio
n (20
21
: £1
1
.2 mill
ion)
•
Conti
nued c
ap
ita
l inves
tme
nt
mai
nta
ine
d at £9
.
7 mill
ion (20
21
:
£1
0.4million)
Aga
ins
t a ran
ge of gl
oba
l econ
omi
c
chall
eng
es in t
he ﬁna
ncial yea
r
, t
he Gro
up
ha
s deli
vered 19
.5% revenue grow
th to
£1
28.6 mil
lion (202
1
: £10
7
.6 million),
andh
ighe
r und
erl
ying EB
ITDA grow
th
of21
.
3% to £1
3.
1 m
illi
on
(2021
:
£10.8 m
il
li
on).
Und
erl
ying o
per
atin
g proﬁt of £6.
1 m
illio
n
(20
21
: £
4.8 milli
on) produce
d a retur
n on
sa
les of 4.7% (2
0
21
: 4.5%
)
, de
spite t
he
impa
ct of r
isin
g cos
t inﬂatio
n, par
ticul
arl
y
in the s
eco
nd hal
f
.
Und
erl
ying EB
ITDA grow
th of 21
.3% to
£1
3.
1 m
illi
on (20
2
1
: £1
0.8 million) includ
ed
CTP EB
ITDA of £1
5.0 mill
ion (20
21
:
£1
4.8million), Aerospa
ce EBITDA of
£0
.
9mi
llio
n (20
21
: £
0.8 millio
n
), while
Centr
al un
der
lyin
g EBITDA cos
ts
imp
roved by £2.0 millio
n to £2.8 mill
ion
(20
21
: £
4.8 milli
on)
, large
ly dr
iven by the
full yea
r ben
eﬁt of th
e cos
t redu
cti
ons
comm
ence
d in the p
rio
r year
.
Net c
as
h gen
erate
d from o
per
atio
ns
wa
s£6.8 millio
n (20
21
: £1
1
.2 mill
ion)
.
The G
roup ga
ine
d sub
st
anti
al net
except
iona
l an
d non
-recur
rin
g inco
me
forth
e seco
nd su
ccessi
ve year tota
llin
g
£3.5m
illio
n (20
21
: £5.7 million)
. This
inclu
ded £
2.
1 mill
ion gr
ant i
ncom
e from
aUS gover
nme
nt pos
t COVID
-
19 loan
forgi
ven in the yea
r
, £0.
9 mi
ll
io
n fro
m new
pen
sio
n ben
eﬁt ini
tiative
s, £0
.
7 mi
lli
o
n in
discontinued operations from the ﬁnal
ex
it ga
ins of t
he LED techn
olo
gy bu
sine
ss,
and £0.
1 milli
on cos
ts fo
r res
tru
ctu
rin
g
and rationalisation.
As a re
sul
t, st
atuto
r
y ope
ratin
g proﬁ
t
rema
ine
d high fo
r a seco
nd su
ccessi
ve
year at £8.
9 mi
llio
n (20
21
: £9
.3 mil
lion)
.
Fina
nce cos
ts we
re £3.0 millio
n (20
2
1
:
£2.7 millio
n
), includin
g notio
nal p
ens
ion
deﬁci
t intere
st cha
rged o
f £
0.
7 milli
on
(20
21
: £
0.8 millio
n
), and t
a
xat
ion cha
rge
s
st
ayed low at £0
.8 milli
on (20
21
:
£0
.5mill
ion)
, ben
eﬁti
ng fro
m a defer
red
ta
x cred
it of £0
.7 million o
n resu
med
reco
gniti
on of t
a
x
abl
e proﬁ
ta
bilit
y i
n the
UK en
titi
es (the 20
21 ta
x
ation ch
arge
inclu
ded t
he rel
ea
se of so
me t
a
x
ation
provi
sion
s relate
d to unce
r
ta
int
y)
.
Statu
tor
y pro
ﬁt af
ter t
a
x w
as £
5.8 milli
on
(20
21
: £7
.4 million) on all o
per
atio
ns, an
d
£5.
1 m
illio
n (20
21
: £6.2 millio
n
) on
contin
uing o
per
atio
ns, giv
ing a s
tat
utor
y
EPS on a
ll op
erat
ion
s of 7
.
9 pe
nce (20
2
1
:
10
.
1 pe
nce
), and 7
.0 pence o
n contin
uing
ope
rati
ons (20
21
: 8.5 p
ence)
.
Und
erl
ying p
roﬁt af
te
r ta
x increa
s
ed by
33.3% to £
2.3 mill
ion (20
21
: £1
.
7 mill
ion)
,
givi
ng an u
nde
rlyi
ng EPS of 3.
1 pence
(20
21
: 2.4 pence)
, on und
erl
ying
ope
rati
ng proﬁ
t up 26.
0% to £6.
1 milli
on
(20
21
: £
4.8 milli
on)
.
The b
ala
nce sh
eet ha
s sub
st
ant
iall
y
str
engt
hen
ed a
s a resu
lt, wi
th net a
ss
ets
growin
g by £1
6.
5 milli
on to £
2
4.4 millio
n
(20
21
: £7
.
9 mill
ion)
. £1
1
.3 mil
lion of t
he
net a
ss
et grow
th c
ame f
rom th
e
redu
ct
ion in t
he pe
nsio
n deﬁci
t from
£37
.3 milli
on to £
26.
0 milli
on, ai
ded
par
ticularly by c
ommit
ted additional
pen
sio
n contr
ibut
ions a
nd im
proved
dis
count r
ates ap
plie
d to the p
ens
ion
scheme liabilities.
FINANCE REVIEW
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
27
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
Net debt
All ava
ilab
le n
et ca
sh ha
s be
en rei
nveste
d
in ta
rgete
d ca
pit
al e
xp
end
iture to d
rive
forwa
rd business growth, with tangible
add
itio
ns of £9
.7millio
n (20
21
: £1
0.
4
mill
ion)
. £6.8mil
lion of t
his inves
tme
nt
ha
s be
en achieve
d in lea
sin
g. Net de
bt
including IFRS1
6 leas
e liabilities increased
in the yea
r by £
4.8 milli
on to £32.4million
(31 March 20
21
: £27
.6millio
n
), with th
e
increa
se d
riven by a co
mbinat
ion of
sign
iﬁca
nt inves
tme
nt in new pl
ant a
nd
equ
ipme
nt to sup
por
t f
utu
re grow
th a
nd
an in
creas
e in invento
r
y
. Ne
t debt
excluding lease
s remaining broadly
simi
lar at £
21
.
5 milli
on (20
21
:
£20.5mill
ion)
.
T
r
ading performance
Over
all G
roup reve
nue (wholl
y from
contin
uing o
per
atio
ns) increas
ed by
1
9
.5% to £1
28.6 mil
lion (202
1
: £10
7
.6
mill
ion) with CT
P revenue of £1
23.
9
mill
ion, up 20.
9% (20
21
: £10
2.5 m
illio
n
)
and A
eros
pace revenu
e of £4
.7 million,
down 7
.8% (20
2
1
: £5.
1 mil
lion)
.
Underlying E
BITD
A fr
om con
tinuing
ope
rati
ons in
crea
sed 21
.3% to
£1
3.
1m
illi
on (20
2
1
: £1
0.8 million)
.
Underlying operat
ing pro
ﬁt from
contin
uing o
per
atio
ns increa
s
ed by
£1
.3mill
ion to £6.
1 mil
lion (202
1
:
£4
.8milli
on)
, with t
he tota
l ris
ing to
£8.2milli
on inclu
din
g the s
epa
ratel
y
dis
clos
ed inco
me fro
m the fo
rgiven
ess
ofa US gover
nme
nt loa
n provi
ded to
supp
or
t t
he imp
ac
t of CO
VID
-
1
9 on
US
businesses
.
Of t
his, Ae
rosp
ace op
erati
ng proﬁ
t
wa
s£0
.
7 mill
ion (20
21
: £0
.6 mill
ion)
.
CTPo
per
ating p
roﬁt wa
s £10
.5 mil
lion
inclu
ding £
2.
1 mill
ion p
os
t CO
VID
-
1
9
gra
nt inco
me (20
21
: £9
.2 mil
lion)
.
Ot
herG
roup a
nd centr
al co
st
s were
cutby £1
.
9mil
lion to £
3.0 millio
n (20
21
:
£
4.
9million
).
We
signiﬁcantly rationalised
central costs while giving divisions more
accou
nta
bil
it
y
.
A recon
ciliati
on of s
tatu
tor
y to
und
erl
ying n
on-
GA
AP ﬁn
ancia
l mea
sure
s
is provi
ded o
n pag
e 1
53.
The C
TP div
isio
n per
fo
rme
d st
rongl
y in
the ﬁr
s
t hal
f of the year w
ith d
ema
nd
contin
uing to g
row for me
dica
l an
d
diag
nos
tic pr
oduc
t
s. However
, seco
nd
hal
f trad
ing wa
s m
ore cha
llen
ging d
ue
initially to difﬁculties recruiting labour in
the U
S and t
hen co
st es
ca
latio
ns acros
s
raw mat
erials, energy
, packaging, freight
and ot
her over
head
s. Whil
st t
he imp
act
of raw mate
ria
l cost i
ncrea
se
s can la
rge
ly
be pa
s
sed o
n to custo
mer
s (albei
t wit
h
som
e tim
e lag) the overa
ll imp
act of
these i
ncr
eases red
uced m
argins
in
thes
econ
d hal
f
, par
t
icula
rly in t
he
USop
er
ation
s.
The Aerospace division has managed
tomai
nta
in op
erat
ing pro
ﬁta
bili
t
y at
£0
.
7milli
on for t
he year (20
21
: £0
.6mill
ion)
and co
ntinu
ed to ge
ner
ate ca
sh
throu
gho
ut the yea
r
. O
rder i
nta
ke
improv
ed signiﬁcantly in the second half
of the yea
r
. M
argin
s have bee
n mai
nta
ined
des
pite s
igniﬁ
cant co
st in
crea
ses i
n the
se
cond ha
lf an
d mad
e up for a sm
all
redu
ct
ion in t
urnover to £4.
7 milli
on
(20
21
:£5.
1 mi
llio
n
)
.
The G
roup ha
s re
ceived i
ts ﬁna
l pro
ceed
s
from t
he ex
it of i
ts LED T
e
chno
log
ies
bus
ine
ss, an
d ha
s simp
liﬁe
d it
s str
uc
ture
and fo
cus pu
rely o
n CTP a
nd Aero
spa
ce
grow
th. Th
e Grou
p has co
mpl
eted th
is
re-fo
cus whil
e mak
in
g net exce
ptio
nal
gai
ns for a s
econ
d succes
sive year
,
mai
nly fro
m the LED b
usin
ess e
xi
t and
pen
sio
n sche
me ini
tiative
s. As a re
sult,
net e
xceptio
nal g
ains f
rom di
scont
inue
d
bus
ine
ss were £0.
7 m
illio
n
(20
21
:£1
.2m
illio
n
).
Fur
ther n
et exce
ption
al ga
ins fr
om
pen
sio
n sche
me ini
tiative
s were
£0
.
9mi
llio
n (20
21
: £6.5 millio
n
)
. Ot
her n
et
except
iona
l cos
ts p
rima
ril
y dea
l with t
he
restruc
turing and rationalisation of the
Grou
p £0
.2 milli
on (20
21
: £2.0 milli
on)
.
The
se were u
nde
r
ta
ken larg
ely in
conju
nct
ion wi
th mu
tual
ly agre
ed pl
ans
and a
ct
ions b
et
wee
n the Gro
up, the
pen
sio
n tru
stee
s an
d the pr
inci
pal b
ank
a
s est
ab
lish
ed in t
he re-
ﬁnan
cing
agre
eme
nt of Augu
st 202
0.
Af
ter e
xceptio
nal a
nd s
epa
ratel
y
dis
clos
ed ite
ms, op
erat
ing pr
oﬁts fo
r
contin
uing o
per
atio
ns were £8.
9 millio
n
(20
21
: £9
.3 mil
lion)
.
Fina
nce cos
ts we
re £3.0 millio
n
(20
21
:£2.7 million), c
omp
ris
ing ne
t ban
k
intere
st of £1.
7 m
illio
n (20
21
: £1
.6 mi
llio
n
),
pen
sio
n non-
ca
sh n
otion
al ﬁna
nce
charg
es of £0.
7 m
illio
n (20
21
: £
0.8 millio
n
)
and l
ea
sing a
nd oth
er inter
est ch
arge
s of
£0
.5 mill
ion (20
21
: £0.3 millio
n
)
.
Grou
p und
erly
ing p
roﬁt be
fore ta
x fro
m
contin
uing o
per
atio
ns wa
s £3.
1 m
illi
on
(20
21
: £2.2 mil
lion)
, ris
ing to £5.
2 milli
on
includi
ng the C
OVID-related
US loan
forgi
ven in the yea
r
. G
roup s
tatu
tor
y
proﬁt f
rom con
tinui
ng op
erat
ions b
efore
ta
x incl
udin
g except
iona
l an
d
non
-recur
ri
ng item
s wa
s £5.
9 milli
on
(20
21
: £6.
7 millio
n
)
.
Grou
p ta
xati
on of £0.8 million
(20
21
:£
0.5milli
on) include
s a defer
red
ta
x cred
it of £0
.7 million a
s th
e UK
bus
ine
sse
s retur
n to suf
ﬁci
ent pro
jec
ted
proﬁt
s in tot
al to re
cogni
se a defe
rre
d ta
x
a
sset. T
he 20
21 ta
x cha
rge wa
s l
ower
tha
n the U
K ef
fec
tive t
a
x rate a
f
ter ta
ki
ng
account o
f provisi
ons fo
r ta
x
uncer
ta
inti
es no l
ong
er requ
ired a
nd
timing differenc
es. Underlying Gr
oup ta
x
charg
es ten
d to be hi
gher t
han th
e UK
ef
fec
tive t
a
x r
ate due to th
e weighti
ng
ofta
xa
bl
e proﬁt
s ge
ner
ated in hi
gher
ta
xjur
isd
ict
ions a
s we
ll a
s occa
si
onal
wit
hhol
din
g ta
x ch
arge
s charg
ed o
n
some o
verse
as dividend
s decl
ared
.
Proﬁt af
ter t
a
x be
fore dis
conti
nued
ope
rati
ons wa
s £
5.
1 mill
ion
(20
21
:£6.2millio
n
) and G
roup
st
atuto
r
yproﬁt a
f
ter t
a
x, w
hich in
clude
s
discontinued operations, was £5.8 million
(20
21
: £7
.4 million)
.
Ba
sic un
der
lyin
g ear
ning
s per s
hare f
rom
contin
uing o
per
atio
ns were 3.
1 pence
(20
21
: 2.4 pence) which exclu
des
sep
ar
ately di
sclo
sed a
nd e
xceptio
nal
items and discontinued operations.
Statut
ory ba
sic and
underlying e
arnings
per s
hare f
rom cont
inuin
g op
erati
ons
were 7
.0 pence (20
21
: 8.5 p
ence) and
including discontinued operations was
7
.
9 pe
nce (20
21
:10
.
1 pe
nce)
.
28
C
arclo plc
An
nual r
epo
r
t an
d accou
nts 2022
FINANCE REVIEW
continued
Capital expenditure
In th
e year
, t
he Gro
up inves
ted
£9
.7million i
n prop
er
t
y
, p
lant a
nd
equ
ipme
nt (20
2
1
: £1
0
.4 milli
on)
, with t
he
maj
ori
t
y in CTP
’s UK an
d US op
erat
ions
to supp
or
t g
row
th wit
h both e
xi
stin
g an
d
new cus
tome
rs
, larg
ely fro
m the m
edi
cal
se
ctor
. This r
epre
sent
s 14
2.2% of the
Grou
p dep
reciati
on char
ge of £6.8 milli
on
for th
e year for pro
pe
r
t
y
, pla
nt an
d
equ
ipme
nt (20
2
1
: 1
79
.7% on
£5.8mil
lioncha
rge)
.
Bank facilities
At 31 March 20
22, tota
l UK b
ank f
acilit
ies
were £33.8 m
illi
on, of whi
ch £3.5 mil
lion
relate
d to a revolvi
ng credi
t facil
it
y an
d
£30.3 m
illio
n in ter
m loa
n facil
itie
s, whi
ch
include £1
.4 million scheduled for
repa
yment b
y Septem
ber 20
22.
The G
roup, the b
ank a
nd th
e pen
sion
sche
me tr
us
tees a
re ac
tivel
y enga
ged in
neg
otiatio
ns over th
e reﬁna
ncing of t
he
ba
nk debt b
eyond th
e curre
nt ex
pir
y date
of 31 July 2023 and over th
e update
d
sche
dul
e of contr
ibut
ion
s. The p
ar
ti
es
are co
mmit
te
d to a pla
n to ﬁnal
ise th
ese
by 31 July 20
22 a
nd th
e Dire
cto
rs have an
exp
ectation that this will be ac
hieved
.
Deﬁned beneﬁt pension scheme
actuarial v
aluation
The la
s
t tri
ennia
l ac
tua
ria
l valu
ation o
f
the G
roup p
ensi
on sch
eme w
as c
ar
rie
d
out a
s at 31 Ma
rch 20
1
8, rep
or
ti
ng an
ac
tuar
ial te
chnic
al p
rovisio
ns deﬁ
cit of
£90.
4 mill
ion. Th
e nex
t t
rie
nnia
l
ac
tuar
ialv
aluat
ion re
sult
s a
s at
31March202
1 are not e
xp
ec
ted to be
ﬁnal
ise
d until t
he en
d of July 2022. The
ac
tuar
y relea
s
ed a dr
af
t 20
21 valuat
ion
rep
or
t on 2
3Novemb
er20
21 bas
ed o
n
ear
ly a
ssum
ptio
ns, whi
ch record
ed an
ac
tuar
ial d
eﬁcit of £82.8millio
n (20
21
:
£90.
4mill
ion f
rom the 201
8 tri
enni
al
val
uatio
n
) repre
sent
ing a 6
7% fund
ing
lev
el.
By way of comp
ar
iso
n, the st
atu
tor
y
accounting
method of valuing the Group
pen
sio
n sche
me deﬁci
t und
er IA
S 1
9
resu
lted in a r
educ
ti
on in th
e net lia
bili
t
y
to £26.0 millio
n (20
21
: £37
.3 milli
on)
.
T
reasury
The G
roup f
aces cur
renc
y ex
po
sure
onit
s over
sea
s sub
sidia
ri
es an
d on
itsforeign c
urrency trans
actions.
Each business hedges signiﬁcant
transac
tional ex
posure using forward
foreig
n excha
nge co
ntra
ct
s for any
ex
po
sure over £
20
,000. The G
roup
rep
or
t
s trad
ing re
sult
s of over
sea
s
sub
sidia
rie
s ba
se
d on avera
ge rate
s of
excha
nge co
mpa
red wi
th ste
rli
ng over
the yea
r
. Th
is inco
me st
atem
ent
tra
nsl
ation e
xp
osu
re is not he
dg
ed a
s
this is an acc
ounting rather than cash
ex
po
sure a
nd a
s a resul
t the i
ncome
st
ateme
nt is ex
po
se
d to moveme
nts in
the U
S doll
ar
, euro, Czech kor
una a
nd
Ind
ian r
upe
e. In term
s of sen
siti
vit
y
,
ba
se
d on th
e 20
2
1
/22 res
ult
s, a 10%
increa
se i
n the va
lue of s
ter
ling a
gain
st
these c
urre
ncies
wou
ld ha
v
e dec
reased
rep
or
ted p
roﬁt b
efore t
a
x by £0
.8 milli
on
(20
21
: £
0.
7 milli
on)
.
Dividend
Given t
he ﬁna
ncia
l per
fo
rma
nce an
d
po
siti
on of th
e Group, coup
led w
ith
res
tri
cti
ons o
n the paym
ent of di
vide
nds
cont
ain
ed wi
thin th
e reﬁna
ncing
agreement and the lack o
f distribut
able
res
er
ves, th
e Boa
rd is not re
comm
end
ing
the p
ayment of a d
ivid
end fo
r 20
2
1
/22
(20
21
: £nil). The Boa
rd inten
ds to
recom
men
ce divi
den
d payment
s on
ly
whe
n it be
come
s conﬁd
ent that a
sus
ta
ina
ble a
nd re
gula
r divi
dend c
an b
e
re-i
ntrod
uced. Un
der t
he ter
ms of th
e
restruc
turing agreement, the Group is
not pe
rmi
t
ted to ma
ke a divid
end
payme
nt to sha
reho
lder
s up to t
he
per
io
d endi
ng in Ju
ly 20
23.
Alternativ
e performance
measures
In th
e ana
lysi
s of the G
roup’s ﬁnancia
l
per
formance
, position
, operating r
esults
and c
a
sh ﬂow
s, alte
rnati
ve per
fo
rma
nce
mea
sure
s are p
rese
nted to prov
ide
readers with additional information.
Thep
rin
cipal m
ea
sures p
res
ented
areun
der
lyin
g mea
sure
s of ear
nin
gs
includi
ng underlying
operating pr
oﬁt,
underlying pr
oﬁt bef
ore tax, underlying
proﬁt a
f
ter t
a
x, u
nde
rlyi
ng EBITDA a
nd
underlying e
arnings per sh
are.
This re
sul
ts s
tatem
ent in
clude
s both
statutory and adj
usted non-GA
AP
ﬁnan
cial m
eas
ures, t
he lat
ter of w
hich
the D
irec
tor
s be
lieve be
tte
r reﬂe
ct th
e
und
erl
ying p
er
for
ma
nce of the b
usi
nes
s
and pro
vides a mor
e meaningfu
l
comp
ari
son of h
ow the b
usin
ess i
s
man
aged a
nd m
eas
ured o
n a day-to-day
basis. The Group’
s alternativ
e
per
for
mance m
ea
sures a
nd K
PIs a
re
ali
gne
d to the Gro
up’s strate
gy an
d
toge
ther a
re us
ed to mea
su
re the
per
for
mance o
f the bu
sine
ss a
nd for
m
the b
as
is of the p
er
fo
rma
nce mea
su
res
for r
emuneration
. Underlying resu
lts
exclu
de cer
t
ai
n item
s bec
aus
e, if
inclu
ded, th
es
e items co
uld di
sto
r
t the
und
er
st
and
ing of th
e pe
r
form
ance fo
r
the yea
r and t
he comp
ar
abi
lit
y bet
we
en
the p
eri
ods
. A recon
ciliatio
n of the
Grou
p’
s non
-G
A
AP ﬁ
nancia
l mea
su
res
issh
own on pa
ge 153.
W
e pro
vide c
omparativ
es alongside
allcur
rent yea
r ﬁgure
s. The ter
m
“
underlying
” is
not de
ﬁned under IF
RS
and m
ay not be com
par
ab
le wi
th
simi
lar
ly tit
led m
ea
sures u
sed by
othe
rcom
pan
ies.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
29
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
All p
roﬁt a
nd ear
nin
gs pe
r shar
e ﬁgure
s relate to un
der
lyin
g busi
nes
s per
for
mance (as d
eﬁned a
bove) unles
s othe
r
wis
e st
ated.
Arecon
ciliati
on of un
der
lyin
g mea
sure
s to st
atuto
r
y mea
sure
s for 20
21
/2
2 is provi
ded b
elow:
COV
ID
-
E
xcep
tio
na
l
Bef
ore
rel
ate
d
£000
Sta
tut
or
y
ite
ms
e
xce
pti
ona
l
US
gr
ant
Un
der
ly
ing
CTP o
per
ating p
roﬁt
10
,480
—
10
,480
2,
087
8,393
Aero
space o
per
atin
g proﬁt
6
77
—
677
—
6
7
7
Centr
al
cos
ts
(2,253)
721
(2,
97
4)
—
(2,
97
4
)
Grou
p ope
rati
ng proﬁ
t from co
ntinui
ng op
erat
ion
s
8,
90
4
721
8,
183
2
,08
7
6,09
6
Net ﬁn
ance e
xp
ens
e
(2,
989
)
—
(2,
989
)
—
(2,
989
)
Grou
p proﬁt b
efore t
a
x
ation f
rom con
tinui
ng op
erat
ions
5,
91
5
721
5,
1
9
4
2,
087
3,
107
T
a
x
ation
ex
pe
nse
(809)
— (809)
— (809)
Grou
p proﬁt fo
r the p
eri
od fro
m conti
nuing o
per
atio
ns
5,
1
06
721
4,3
85
2,087
2,298
Proﬁt o
n disco
ntinu
ed op
er
ation
s, net of t
a
x
69
3
69
3
—
—
—
Gr
oup p
ro
ﬁt fo
r th
e pe
rio
d
5,799
1,41
4
4,38
5
2,087
2,
298
Ba
si
c ea
rni
ng
s per s
ha
re (
pen
ce)
7
.
9p
1
.
9p
6.0p
2.
8p
3
.
1p
The e
xceptio
nal i
tems co
mpr
ise:
Continuing
Discontinued
£000
operations
operations
Group
Res
tru
ctu
rin
g
and
ratio
nali
satio
n
cost
s
(1
33)
—
(1
33)
Gai
n in res
pec
t of ret
ireme
nt be
neﬁt
s
854
—
85
4
Proﬁt o
n sa
le of LED T
ech
nol
ogie
s bu
sine
ss
—
69
3
69
3
T
ot
a
l
e
xce
pti
on
al
ite
ms
721
69
3
1,41
4
Post balance shee
t ev
ents andgoing concern
Post balance shee
t ev
ents
On 29 A
pril 2022, subs
equ
ent to th
e bal
ance sh
eet d
ate, the Grou
p entere
d into a sa
le a
nd lea
s
eback a
gree
ment for a T
echnic
al
Pla
st
ics ma
nuf
act
urin
g site at T
u
cso
n, Ari
zona, U
SA
. The tr
an
sac
tio
n is ex
pe
cte
d to comp
lete in J
uly 20
22 fo
r a purcha
se p
rice of
$2
.
95 mi
llio
n les
s cost
s of $0.2 mill
ion. A lea
s
e term of n
ine year
s ha
s be
en ag
reed a
nd gr
ant
s the G
roup t
he ri
ght to ca
ncel a
ny
tim
e af
ter thr
ee year
s, provi
ded t
we
lve mont
hs’ notice i
s given. At 31 March 2022 there i
s no rea
so
nab
le cer
t
ain
ty t
hat the G
roup
will e
xercis
e the b
reak cla
use. The G
roup e
xp
ec
ts to re
cogn
ise a p
roﬁt on d
ispo
sa
l in res
pe
ct of th
e site of £0.6 millio
n in the yea
r
end
ing 31Ma
rch 20
2
3.
Going concern
The ﬁn
ancia
l st
atem
ents a
re pre
pare
d on th
e goin
g conce
rn ba
si
s.
Grou
p per
form
ance d
urin
g the yea
r has e
nab
led c
ap
ita
l an
d work
ing c
ap
ita
l inves
tmen
t to be mad
e whil
st ret
ai
ning a s
ta
bl
e
ﬁnan
cial p
osi
tion w
ith n
et debt e
xclud
ing lea
s
e liab
ilit
ies a
s of 31 Ma
rch 20
2
2 increa
si
ng to £
21
.5 m
illio
n (20
2
1
: £20.5 milli
on
).
The d
ebt faci
liti
es avail
abl
e to the G
roup co
mpr
ise a ter
m lo
an of £3
0.3 milli
on, of wh
ich £1
.4 mi
llio
n will b
e amo
r
tis
ed by 30
Septe
mbe
r 20
22 an
d a £3.5 m
illio
n revolvi
ng cred
it faci
lit
y whi
ch wa
s full
y util
ise
d as of 31 Ma
rch 20
22. Both of t
hes
e facil
itie
s
mature o
n 31 July 2023.
A sche
dul
e of contr
ibut
ion
s with t
he pe
nsio
n tru
ste
es is in p
lace th
rough to J
uly 2023
; beyon
d this a s
ched
ule of con
trib
uti
ons for
£3.5 m
illio
n annu
all
y is in pl
ace until 31 O
ctob
er 2040. Thi
s sche
dul
e is reviewe
d and re
cons
ide
red be
twe
en th
e Comp
any an
d the
tru
ste
es at each tr
ien
nial a
ctu
ari
al va
luati
on, the n
ex
t b
eing a
f
ter the re
sul
ts of th
e 31 March 202
1 trie
nnia
l valu
ation a
re kn
own.
This v
aluat
ion, a
nd accord
ingly a
n up
dated s
chedu
le of cont
rib
utio
ns whi
ch ha
s bee
n provis
iona
lly ag
ree
d, is ex
pec
ted to b
e
conclu
ded by 31 Jul
y 20
22. For the p
urp
ose
s of thi
s goin
g conce
rn review t
he ex
t
an
t sche
dule of co
ntri
but
ions h
as b
een
consi
dere
d in th
e ba
se ca
s
e.
30
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
FINANCE REVIEW
continued
Post balance shee
t ev
ents
andgoing concern
continued
Going concern
continued
An inte
rcredi
tor de
ed b
et
ween C
arclo
plc, cer
ta
in oth
er Gro
up comp
ani
es, th
e
ba
nk and t
he pe
nsi
on sch
eme tr
us
tees
requ
ires th
e Gro
up to have reﬁnan
ced it
s
ba
nk debt w
ith a mat
uri
ty d
ate not ear
lier
tha
n 31 March 20
26 and to have agre
ed
an up
dated s
ched
ule of co
ntrib
uti
ons fo
r
the a
ctu
ari
al va
luatio
n of the s
chem
e a
s
at 31 March 202
1 by 3
1 Jul
y 20
22 (this
date havin
g bee
n recent
ly ex
te
nde
d by
one m
onth)
.
The G
roup, the b
ank a
nd th
e pen
sion
sche
me tr
us
tees a
re ac
tivel
y enga
ged in
neg
otiatio
ns over th
e reﬁna
ncing of t
he
ba
nk debt b
eyond th
e curre
nt ex
pir
y date
of 31 July 2023 and over th
e update
d
sche
dul
e of contr
ibut
ion
s. The p
ar
ti
es
are co
mmit
te
d to a pla
n to ﬁnal
ise th
ese
by 31 July 20
22 a
nd th
e Dire
cto
rs have an
ex
pe
ct
atio
n that thi
s will b
e achieved.
As s
uch the D
ire
ctor
s’ goi
ng con
cern
a
sse
ssm
ent pe
rio
d is t
welve m
onth
s
from t
he date of si
gnin
g the
se ﬁna
ncial
st
atem
ent
s.
The bank facilities are subject to f
our
covenant
s to be te
ste
d on a qua
r
ter
ly
basis:
1.
underlying interest cov
er;
2.
net debt t
o underlying
EBIT
DA;
3.
core subsidiar
y underlying EBIT
A; and
4.
core subsidiar
y rev
enue.
Core su
bsid
iar
ies a
re deﬁn
ed a
s Ca
rclo
T
echn
ica
l Pla
st
ics Lim
ited; Bru
ntons Ae
ro
Prod
uct
s Lim
ited; Carcl
o T
echn
ica
l
Pla
st
ics (Br
no) s.
r
.o; CTP Ca
rre
ra In
c and
Jacot
tet In
dus
tri
e SAS, w
ith C
TP T
ai
can
g
Co. L
td an
d Ca
rclo T
echn
ica
l Pla
st
ics P
v
t
Co Limi
ted be
ing treate
d a
s non
-core fo
r
the p
urp
ose
s of the
se covena
nts.
It is a
ss
umed t
hat the b
ank covena
nt
s
and t
hres
hol
ds se
t out in t
he curre
nt
ba
nkin
g agre
eme
nt are in p
lace
throughout t
he going c
oncern
a
sse
ssm
ent pe
rio
d an
d are not a
men
de
d
a
s a resul
t of the o
ngo
ing reﬁna
ncin
g.
Ba
se
d on our cur
rent b
as
e ca
se
forec
a
st
s, the
se covena
nt tes
ts a
re
ex
pe
cte
d to be met t
hrou
ghou
t the
asses
sment period.
In ad
diti
on, the p
ens
ion s
cheme h
as t
he
ben
eﬁt of a ﬁf
th covena
nt to be tes
ted o
n
1 May each year up to a
nd in
cludi
ng 20
23.
In res
pe
ct to th
e year
s to 31 March 20
22
and 31 Ma
rch 20
23 the te
st re
quire
s any
sho
r
t
fa
ll of pe
nsio
n deﬁcit re
cover
y
contr
ibu
tion
s whe
n mea
sure
d aga
inst
Pensi
on Protec
tio
n Fund pri
ori
t
y dri
f
t
(which is a mea
su
re of the in
crea
se in th
e
UK Pen
sion Prote
ct
ion Fund’s potent
ial
ex
po
sure to th
e Grou
p’
s pens
ion s
chem
e
liab
ilit
ies) to be met by a com
binat
ion of
ca
sh paym
ent
s to the s
cheme, pl
us a
notion
al (
non-ca
sh
) pr
opor
tion o
f the
increa
se i
n the un
der
lyin
g val
ue of th
e
T
echn
ica
l Pla
st
ics an
d Aero
space
bus
ine
sse
s ba
se
d on an EB
ITDA multi
ple
for th
ose b
usin
ess
es w
hich is to b
e
determined a
nnually
.
The D
irec
tor
s have reviewe
d ca
sh ﬂow
and coven
ant fore
ca
st
s to cover the
t
welve-
mont
h per
io
d from th
e date of
sign
ing th
ese ﬁ
nanci
al s
tatem
ent
s ta
kin
g
into accou
nt the G
roup’s a
vai
lab
le de
bt
facil
itie
s an
d the ter
ms of th
e curre
nt
ar
ran
gem
ent
s with t
he ba
nk an
d the
pen
sio
n sche
me. Thes
e dem
ons
tr
ate
that the Group
has suf
ﬁcient headroom
in ter
ms of liq
uidi
t
y and covena
nt tes
tin
g
through the forecast perio
d.
In ad
diti
on, the D
irec
tor
s have reviewe
d
ca
sh ﬂow a
nd covena
nt forec
a
st
s for the
sa
me tim
e pe
rio
d ba
se
d on
man
agem
ent
’s bes
t est
imates o
f the
impa
ct of t
he on
goin
g neg
otiatio
ns on
facilities and pension contributions which
includes currently u
ncommit
ted bank
loa
n repaym
ent
s and p
rovisi
onal
ly
agreed additional pension deﬁcit
reco
very con
tributions
cont
ingent
on
fut
ure pe
r
form
ance. Th
ese d
emo
nst
rate
that the Group
has suf
ﬁcient headroom
in ter
ms of liq
uidi
t
y and covena
nt tes
tin
g
throu
gh th
e forec
as
t pe
rio
d.
The D
irec
tor
s have reviewe
d sen
sitiv
it
y
tes
ting b
as
ed o
n a numb
er of rea
so
nab
ly
po
ssib
le sce
nar
ios, t
ak
ing i
nto account
the cur
rent vi
ew of imp
act
s of th
e
conti
nuing C
OVID-
1
9 pandemic on the
Grou
p (pa
r
ticula
rly f
rom su
ppl
y chain
disruption and any unmitigat
ed cost
inﬂati
on acros
s all t
y
pes o
f ope
ratio
nal
expenditu
re
) and poss
ible
politi
cal
uncer
ta
int
y
, i
nclud
ing th
e impa
ct of
theRu
ssia
n inva
sion o
f Ukr
ain
e an
d
heig
htene
d ris
k of wid
er conﬂi
ct,
Bre
xita
nd oth
er po
ssi
ble over
sea
s
trading issues.
Severe do
wnside sensitivit
y testing
ha
sbe
en pe
r
form
ed un
der a r
ang
e of
scen
ari
os mo
del
ling t
he ﬁna
ncial e
f
fec
ts
of los
s of bu
sine
ss fro
m: discrete si
tes,
an over
all f
all in g
ross m
argi
n of 1
%
acros
s the G
roup, a fal
l in Gro
up sa
les
of5% matched by a cor
resp
on
ding f
all in
cos
t of sa
les of t
he sa
me a
mou
nt, delays
in the t
imin
g of comm
encem
ent of
signiﬁcant contractual project
s,
redu
ct
ion in reven
ue fro
m spe
ciﬁc
customer
s, minimum wage inc
reases,
unmitigated inﬂa
tionar
y impact across
ope
rati
ng cos
ts a
nd e
xchang
e ris
k. Th
ese
sen
siti
viti
es at
tem
pt to incor
por
ate the
ris
ks a
ris
ing f
rom natio
nal a
nd re
gion
al
impacts of the
global pandemic
from
loc
al l
ockdown
s, impa
ct
s on
manufacturing and s
upply ch
ain and
othe
r potenti
al in
creas
es to di
rec
t and
indi
rec
t cos
ts. Th
e Dire
cto
rs co
nsid
er
that th
e Grou
p has t
he ca
paci
t
y to take
mitigating actions to ensure
that the
Grou
p rema
ins ﬁna
ncia
lly vi
abl
e,
including fur
ther reducing operating
ex
pe
ndit
ure a
s nece
ss
ar
y
.
On th
e ba
sis of t
his fore
ca
st a
nd
sen
siti
vit
y tes
tin
g, the B
oard h
as
deter
min
ed that i
t is rea
son
abl
e to
a
ssum
e that th
e Group w
ill cont
inue to
ope
rate wi
thin t
he faci
liti
es avail
abl
e to
itan
d to adh
ere to the covena
nt tes
ts
towhich i
t is sub
jec
t thro
ugho
ut th
e
t
welve-
mont
h per
io
d from th
e date of
sign
ing th
e ﬁnan
cial s
tate
ment
s an
d as
such i
t has a
dopte
d the g
oing co
ncer
n
a
ssum
ption i
n prep
ari
ng the ﬁ
nan
cial
st
atem
ent
s.
Phil White
Chie
f Fina
nci
al O
f
ﬁcer
29 June 2022
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
31
Carclo plc
Annua
l rep
or
t a
nd ac
count
s 20
22
PRINCIP
AL RISKS
ANDUNCERT
AINTIES
Ca
rclo deﬁn
es r
isk a
s unce
r
ta
int
y
, wh
ethe
r po
siti
ve or neg
ative, that wil
l af
fec
t the o
utcom
e of an ac
tiv
it
y or inte
r
ventio
n.
The G
roup o
per
ates a ri
sk ma
nage
ment f
ra
mewor
k to direc
t a
nd contro
l the o
rgan
isat
ion wi
th reg
ard to ri
sk.
Ca
rclo’
s ap
peti
te for ri
sk is cate
gor
ise
d acros
s the Str
ategi
c, Ope
rati
ona
l, Finan
cial a
nd Comp
lia
nce ris
k categ
or
ies of th
e bus
ine
ss
and i
s set o
ut be
low
. This o
per
ates a
s a gui
de to ma
nage
ment fo
r app
etite l
evels in a
ppr
oachin
g ris
k to help s
et pr
ior
itie
s an
d levels
of focus.
Risk category
Risk appetite
Description
Strat
egic
Moderat
e
The G
roup is p
repa
red to t
ake mo
der
ate ris
ks to rea
lis
e it
s ambi
tio
ns. In d
oing
so, we aim to s
tr
ike a bala
nce be
twe
en ou
r soci
o-
econ
omi
c role (l
ow ris
k
accept
ance) and o
ur comm
ercia
l ta
rget
s (high
er ri
sk accept
an
ce
)
.
Operational
V
ery low
The G
roup fo
cuse
s pri
mar
ily on e
nsur
ing t
he conti
nuit
y a
nd sha
reh
old
er
contr
ibu
tion of b
usi
nes
s act
ivit
ies, re
gar
dles
s of circums
t
ance
s. We aim to
redu
ce the r
isk
s that th
reaten thi
s contin
uit
y a
s much a
s po
ssi
ble. Ou
r ris
k
accept
ance i
n this re
gard i
s there
fore ver
y low. In the a
rea of safe
ty a
nd
se
curit
y
, we do all we c
an to avoid r
isk
s that cou
ld pu
t our cus
tome
rs, i
ntern
al
and e
x
ter
nal e
mployee
s or vi
sitor
s in d
ang
er
.
Financial
Low
We aim to mai
nta
in a so
lid ﬁn
ancia
l po
siti
on in ord
er to prov
ide s
ta
bili
t
y and
value added
to our
stakeholders incl
uding shar
eholders, bank, pension
scheme
tru
ste
es, sup
pli
er
s, custo
mer
s a
nd all s
t
akeho
lde
rs co
nnec
ted to t
he Ca
rclo
chain. T
he Gro
up is not p
repa
red to t
ake ris
ks t
hat coul
d jeo
pard
ise it
s cred
it
rati
ngs o
r har
m its key ﬁna
ncia
l relati
onsh
ips.
Compliance
Zero
The G
roup s
tri
ves to comp
ly wi
th all a
pp
lica
ble l
aws an
d regu
lation
s, wit
h a
par
ticul
ar focu
s on sa
fet
y and s
ecur
it
y
, e
nvironm
ent
al, comp
eti
tion, ten
der
ing
and privacy/
information security laws.
The B
oard i
s resp
ons
ibl
e for creatin
g
thef
ram
ewor
k for the G
roup’s risk
man
agem
ent to op
er
ate ef
fec
tively a
nd
for ensuring risk management activities
are e
mbe
dde
d in Ca
rclo pro
cess
es.
TheB
oard i
s als
o res
pon
sibl
e for
ensuring th
at appr
opriate
and
prop
or
t
ionate re
sou
rces are a
llo
cate
d
torisk management activities. The Board
und
er
t
akes ri
sk ma
nage
ment to i
mprove
und
er
st
and
ing of th
e ac
tua
l and p
otentia
l
ris
ks to o
ur bus
ine
ss a
s well a
s it
s
resilience, performa
nce
, susta
inabilit
y
and s
ucces
s, to ena
ble i
t to as
se
ss an
d
resp
on
d to new op
por
t
unit
ies a
s th
ey
ar
ise a
nd to provi
de fa
ir an
d ba
lance
d
infor
matio
n to sha
reho
lder
s a
nd
potent
ial s
hareh
old
er
s. The B
oa
rd is al
so
resp
ons
ibl
e for ens
uri
ng that a
ppro
pri
ate
and p
rop
or
ti
onate res
ource
s are
allocated to risk management activities.
The B
oard h
as c
ar
rie
d out a
n as
se
ssm
ent
of the p
rin
cipa
l risk
s fa
cing C
arclo p
lc,
inclu
ding t
hos
e that wou
ld threate
n it
s
business model
, future
per
formance
,
sol
venc
y or liq
uidi
t
y
. This r
epo
r
t det
ail
s
the
se ri
sk
s and e
xp
lai
ns how th
ey are
being managed or mitigated.
Whe
n a
sse
ssin
g ris
k, th
e Boa
rd
consi
der
sb
oth ex
te
rna
l (
ari
sing f
rom th
e
enviro
nme
nt in which we o
per
ate) and
inter
nal f
acto
rs (ari
sing f
rom the n
ature
of our b
usin
ess a
nd i
ts inte
rna
l contro
ls
and pr
ocesses
).
Ma
nagem
ent is a
ccount
abl
e to the B
oa
rd
for mo
nitor
ing t
he sy
stem of i
ntern
al
contro
l and fo
r provid
ing a
ss
ura
nce to
the B
oard t
hat it ha
s do
ne so.
An e
sse
ntial p
ar
t of t
he ri
sk ma
nage
ment
fra
mewo
rk is fo
r mana
gem
ent to mo
nitor
the f
ram
ewor
k’s ope
ratio
n in ord
er to
provide assurance throughout the
man
agem
ent org
ani
sati
on an
d to thos
e
resp
ons
ibl
e for gover
nan
ce that it is
operating ef
fectively
.
Management ar
e further dev
eloping
pro
cess
es for e
nsur
ing th
at the r
isk
man
agem
ent s
tag
es su
ch as even
t
identiﬁcation, risk assessm
ent,
sel
ec
tio
nof resp
ons
es a
nd ri
sk
rep
or
tin
gare wo
rk
ing.
This i
nclud
es, si
nce ris
ks cha
ng
e over
time, managers giving attention to
ens
urin
g that ri
sk reg
iste
rs a
re bei
ng
upd
ated for n
ew or chan
ging r
isk
s a
nd
that inte
rna
l contro
ls are b
ein
g adapte
d
and dev
eloped where
necessar
y
.
Loca
l man
agem
ent t
akes own
er
ship of
the s
peci
ﬁc ris
ks re
leva
nt to thei
r sph
ere
of op
erati
ons w
ith th
e likely c
aus
es an
d
ef
fec
ts re
corde
d wit
hin th
e ris
k regis
ter
hel
d at site l
evel, with co
rpo
rate r
isk
s
bei
ng id
entiﬁ
ed wi
thin th
e Head O
f
ﬁce
E
xecut
ive team. Th
e risk
s a
re score
d
ba
se
d on likel
ihoo
d an
d sever
it
y to
enable the signiﬁcant risks to be readily
identiﬁed
and the appropri
ateness
of
mitigations considered. The
risk
regi
ster
sa
re reviewe
d, challe
nge
d an
d
deb
ated to keep t
hem up to d
ate and
relev
ant to ou
r str
ategy
. Risk
s are
es
cal
ated a
s ap
pro
priate.
32
Carclo plc
Ann
ual re
po
r
t an
d accoun
ts 2022
Dur
ing t
he year a
ll the key ri
sks
ide
ntiﬁe
dby the si
tes were eva
luate
d
anda
ggre
gated, wi
th the h
ighe
st
scor
ingr
isk
s reviewe
d in de
ta
il at the
Group Executive Committee meetings.
ThisCo
mmi
tte
e the
n prop
os
ed th
e risk
s
that it co
nsid
ered key to th
e runn
ing of
the b
usin
ess fo
r evalu
ation at t
he
Boa
rdme
etin
g.
The B
oard c
ar
rie
d out a rev
iew of
ef
fec
tiven
es
s which con
clud
ed that t
he
ris
k mana
gem
ent pro
ces
s that had b
een
in pla
ce duri
ng th
e year wa
s op
erati
ng a
s
do
cum
ente
d.
A st
an
ding r
isk s
ched
ule is n
ow includ
ed
in the B
oa
rd mee
ting p
ape
rs w
hich
det
ail
s the key ris
ks cur
rent
ly ide
ntiﬁe
d
alongsid
e their mitigations
and st
atus of
ac
tion
s. This a
lso i
nclud
es em
ergi
ng ri
sk
s
a
s ident
iﬁe
d at Group E
xe
cutive
Comm
it
tee a
nd Bo
ard m
eetin
gs a
nd
ins
ta
nces of i
ncurre
d lo
sse
s aga
ins
t
ide
ntiﬁe
d ris
ks to e
nab
le a
sse
ss
ment of
the appropriateness of the mitigations.
Group Executive Committee meetings
now reg
ular
ly s
ele
ct a G
roup r
isk reg
iste
r
item fo
r par
t
icula
r focus a
ccordin
g to
priority or ro
tation
.
The ef
ﬁ
cienc
y an
d ef
fec
tiven
ess of
ex
is
ting in
terna
l contro
ls wi
ll contin
ual
ly
be cha
lle
nge
d to improve th
e ris
k
management
framework.
The re
spo
nsib
ilit
ies of t
he Aud
it an
d Risk
Comm
it
tee a
re ex
pla
ine
d on pa
ges 50 to
53. The
se re
spo
nsib
ilit
ies in
clud
e the
review
ing of th
e Grou
p’
s risk
man
agem
ent sy
ste
ms. The
se a
re
primarily design
ed to mitiga
te risk down
to an acce
pta
ble l
evel, rath
er tha
n
comp
letel
y elim
inate the r
isk
, and t
he
review c
an provi
de on
ly rea
so
nabl
e an
d
not ab
so
lute a
ssu
ra
nce of ef
fec
tive
ope
rati
on, comp
lia
nce wit
h laws an
d
regu
latio
ns an
d agai
nst m
ateria
l
misstatement or
loss.
The Group’
s managem
ent is r
esponsib
le
for th
e iden
tiﬁc
ation, a
ss
ess
ment
,
man
agem
ent a
nd mo
nitor
ing of r
isk a
nd
for de
veloping
, operat
ing and monit
oring
the s
yste
m of inter
nal co
ntrol. Th
e Audi
t
and R
isk Co
mmit
te
e recei
ves rep
or
t
s
from m
anag
eme
nt on th
e ef
fec
tiven
ess
of tho
se sy
ste
ms it ha
s es
t
abl
ishe
d.
Lis
ted on t
he foll
owing p
age
s are th
e
most signiﬁcant risk
s that
may affect the
Grou
p, altho
ugh t
here a
re other r
isk
s
thatmay occur a
nd im
pac
t the G
roup’s
per
formance
.
Risks
Mitigation
Change
1.
Su
ppl
y ch
ai
n dis
rup
ti
on a
nd p
oli
ti
ca
l
uncerta
inty
, including Brexit leading
to increasing input costs
Poli
tic
al u
ncer
t
a
int
y su
ch as t
he Ru
ssi
an
inva
si
on of U
kr
ain
e an
d hei
ghte
ne
d ris
k of
wid
er co
nﬂic
t, B
rex
it i
n the U
K an
d othe
r
over
sea
s tr
ad
e iss
ue
s such a
s US a
nd Ch
ine
se
tr
ade t
ar
if
f
s ca
n natu
ra
lly a
f
fec
t de
cisi
ons by
our cu
sto
me
rs to i
nves
t an
d the
refor
e imp
ac
t
on ou
r tr
adin
g in th
os
e lo
cati
on
s.
The
se p
ol
iti
cal r
is
ks a
re ex
ace
rb
ated by t
he
C
OVID-
19
pandemic and im
pact on global
industries with diverse supply chain
dep
en
de
ncie
s such a
s t
he Gr
oup’s. Sup
pl
y
cha
in cos
ts
, del
ays, sh
or
t
ag
e of la
bou
r an
d
mate
ria
ls re
so
urce a
re now hav
ing a s
igni
ﬁc
ant
imp
ac
t on co
st
s, pro
ﬁt
abi
lit
y a
nd cu
sto
mer
se
r
vice fo
r Ca
rclo a
lo
ngs
ide m
any in
du
str
ie
s.
The r
is
k resu
lti
ng f
rom Br
ex
it ha
s la
rge
ly b
ee
n
sup
er
se
de
d by chal
le
nge
s wit
h bot
h nati
ona
l
an
d inte
rnat
ion
al su
pp
ly cha
ins a
nd co
st
incre
ases across labour
, materi
als, energy
and t
ransport.
Pro
ce
ss
:
The G
rou
p E
xecu
tive Co
mmi
t
tee (“GEC”) a
nd l
oca
l ma
nag
em
ent
mo
nito
r an
d revie
w rel
evan
t pos
t-COVID
-1
9 s
upp
ly ch
ainr
isk
s a
nd
po
lit
ica
l an
d tr
ade d
evelo
pm
ent
s reg
ula
rl
y
, u
sin
g inp
ut fr
om ad
vis
or
s
a
s app
rop
ria
te, and e
st
ab
lis
h ac
tio
n pla
ns a
nd s
tr
ateg
ies a
ccord
ing
ly
,
whi
le en
gag
ing w
ith t
ra
de a
ss
ociat
io
ns an
d gove
rnm
ent l
ink
s.
In
cr
ea
si
ng ri
sk l
evel
:
Sup
pl
y chai
n dif
ﬁ
cult
ies a
nd i
ncrea
s
ed cos
t
s es
cal
ated i
n late 2021 and
ear
ly 2022, wi
th cont
inu
ed h
eadw
ind
s fore
ca
s
t into t
he new ﬁ
nan
cia
l
year. Carcl
o cont
inu
es to wo
rk t
ac
tic
all
y an
d spe
ciﬁ
ca
lly wi
th p
rio
ri
t
y
are
as o
f the s
upp
ly cha
in a
nd cus
tom
er d
eli
ver
y to mi
nim
ise s
upp
ly
dis
rup
tio
n, netco
st i
mpa
ct, a
nd cu
sto
me
r sho
r
t
fa
lls i
n del
iver
y
. Bre
x
it
imp
ac
t is no l
on
ger t
he dr
ivi
ng r
isk h
ere, bu
t po
st-COVI
D-1
9 mater
ia
ls
an
d lab
ou
r sho
r
ta
ge
s, sub
se
que
nt hi
ghe
r cos
t, an
d greate
r de
lays in
order fu
lﬁlment
.
Offsetting opportunities:
Ma
nag
eme
nt is p
ut
ti
ng an i
ncrea
s
ed fo
cus o
n ope
rat
ion
al
ef
fec
ti
vene
ss a
nd ef
ﬁ
cien
cy to m
iti
gate t
he ef
fe
ct
s of th
es
e
cha
lle
nge
s. In a
ddi
tio
n, in ea
rl
y 20
22 m
ana
gem
ent u
nde
r
to
ok a revi
ew
of it
s inp
ut co
st
s an
d gro
ss ma
rgi
ns a
nd ha
s im
ple
me
nted a s
er
ies o
f
pr
ice in
crea
se
s in or
der to m
iti
gate in
crea
se
d in
put co
st
.
PRINCIP
AL RISKS
ANDUNCERT
AINTIES
continued
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
33
Carclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
Risks
Mitigation
Change
2.
C
OV
I
D
-19
The COVI
D
-
19 pa
nde
mic h
as b
ee
n an
une
x
pec
te
d sho
ck to th
e glo
ba
l eco
nomy
an
deco
nom
ic ac
ti
vit
y ha
s b
een s
upp
res
se
d
globally
. As the
pandemic has progr
essed
gover
nm
ent
s’ po
lici
es have em
erg
ed,
howeve
r we cont
inu
e to se
e dif
fe
ri
ng
ap
pro
ache
s be
ing t
ake
n by dif
fe
rent
gover
nm
ent
s in re
sp
ons
e to vir
us
mut
ati
ons
,out
brea
k
s an
d waves.
The
sei
ssu
es have a
dde
d com
pl
ex
it
y in
globalise
d supply chains.
The
re is a r
isk to cu
st
ome
r de
man
d, sup
pli
er
ca
pa
bili
t
y an
d our ow
n ca
pa
bili
t
y to de
live
r
,
mea
nin
g the G
rou
p ne
eds t
o ada
pt to
conti
nual
ly cha
ngin
g circums
ta
nces
.
Notwithstanding strong demand
in the
me
dic
al s
ec
tor, chang
ing wo
rk
ing p
ra
ct
ices
an
d shu
tdow
ns have a
n imp
ac
t on
op
era
tio
nal e
f
ﬁcie
ncy w
hic
h inev
it
abl
y
af
fe
ct
s pro
ﬁta
bi
lit
y
. The G
rou
p’s Aeros
pace
division has witnessed a signiﬁcant reduction
in cus
tom
er
s’ ai
rcra
f
t new
bui
ld pro
gr
am
mes
an
d wit
h much o
f the g
lob
al ci
vil a
ircr
af
t ﬂe
et
havin
g be
en gr
oun
de
d sinc
e Mar
ch 20
20,
dem
an
d for b
oth ne
wbu
ild a
nd s
par
es ha
s
be
en ne
gat
ivel
y af
fec
te
d. The
re do
es s
eem
to be s
om
e sig
ns of op
tim
ism in e
ar
ly 2022
a
sorde
r
s are o
utp
acin
g sa
le
s, al
bei
t fro
m
lowl
evels
.
The T
echnical Plastics division was af
fected
wit
h so
me ea
rl
y pla
nt clo
sur
es. W
hil
st
clo
sure
s ap
pea
r to have di
min
ish
ed th
ere
rem
ain
s the r
is
k of fur
the
r waves o
f infe
ct
ion
s
globally
. While the lik
elihood of disruption to
the b
us
ine
ss a
ppe
ar
s to have re
duce
d, th
e
pote
ntia
l im
pac
t of f
ur
th
er mu
tat
ion
s in th
e
virus and signiﬁcantly disruptive wa
ves
rem
ain
s. Th
e Gro
up cont
inu
es to b
e vig
ila
nt
an
d is con
sci
ous o
f COVID
-
1
9 prote
ct
io
n
req
uire
me
nts a
nd e
mpl
oyee wel
fa
re.
Modifying working procedures:
The G
rou
p ha
s cont
inu
ed to ac
ti
vely m
oni
tor t
he COVID
-1
9 o
utb
rea
k in
lin
e wit
h lo
ca
l and n
atio
na
l aut
hor
iti
es, p
ub
lic h
eal
th bo
di
es an
d WH
O
gui
del
ine
s an
d wil
l cont
inu
e to mo
dif
y p
roce
dur
es an
d wor
ki
ng
practices accordingly
.
Acc
es
si
ng g
overn
me
nt s
up
por
t
:
Gove
rnm
ent s
upp
or
t p
rog
ra
mme
s have be
en a
cces
se
d whe
re
avail
able, in
cluding
the furlough
scheme and
HMRC pa
yment de
ferrals
in th
e UK
, the P
aycheck Pr
otec
tio
n Pro
gra
m in t
he US a
nd s
om
e ta
x
rel
ief in Ch
ina
. Ac
tio
n ha
s al
so be
en t
ake
n to red
uce co
st
s whe
re
po
ssi
bl
e in bot
h div
isi
ona
l an
d cent
ra
l area
s. A
s a re
sul
t, de
spi
te
theo
pe
rat
ion
al a
nd ﬁna
nci
al s
etba
ck
s ex
pe
rie
nce
d fro
m CO
VI
D
-
1
9
dis
rup
tio
n, the G
rou
p ha
s man
age
d to ach
ieve an
d ex
cee
d its ﬁ
na
ncia
l
ta
rge
ts s
et for t
he yea
r
.
Creating bank headroom
:
The r
eﬁna
ncin
g agr
ee
d wit
h the G
rou
p’
s pr
inci
pa
l ba
nk in Au
gus
t 2020
prov
ide
d an a
ddi
tio
nal £
3 mil
lio
n hea
dro
om to su
pp
or
t th
e Gro
up to
ma
nage t
hro
ugh t
he ne
ar-term u
nce
r
ta
int
y pr
es
ente
d by the
COVID
-
1
9 pa
nd
emi
c, and t
he G
roup w
as w
ell p
rotec
te
d wit
h ca
sh
hea
dro
om an
d Gro
up ca
s
h ba
lan
ces of ove
r £1
2 mil
lio
n at
31Mar
ch20
22.
Management monitoring
:
The G
rou
p ha
s wee
kl
y mee
tin
gs wh
ere key is
su
es a
re ra
ise
d. COVID
-
19
rem
ain
s a recu
rr
ing a
gen
da ite
m in th
e mo
nthl
y Gro
up E
xe
cuti
ve
Com
mit
te
e me
etin
gs. E
x
ecut
ive Di
rec
to
rs t
al
k wit
h the d
ivi
sio
nal
managing directors frequently to ensure
issues are picked
up quickly
.
He
al
t
h an
d sa
fet
y b
al
an
ci
ng:
Op
er
atio
nal c
han
ge
s are b
ein
g mad
e cont
inu
ous
lyacr
oss a
ll s
ites t
o
minimise health and safety risk whils
t maintaining productio
n
capabili
ty
.
Offsetting opportunities:
Com
mer
cial o
pp
or
tu
nit
ies w
it
hin th
e me
dic
al te
st
ing s
ec
tor a
re a
lso
be
ing p
ur
sue
d. Cos
t-savi
ng in
itia
tive
s are p
ur
sue
d to mi
tig
ate are
as
of
ongoing suppr
essed demand.
New b
us
in
es
s:
The G
rou
p ha
s succ
ess
fu
lly wo
n COVID an
d no
n-
COVID te
sti
ng wo
rk
in CT
P USA a
nd C
TP UK
.
Disrup
tion
miti
gation
:
On t
he wh
ol
e, our si
tes have co
nti
nue
d to ma
nuf
ac
ture t
hrou
gh
out
the p
an
dem
ic wi
th m
ode
st c
los
ure
s see
n. In
st
an
ces of COVID
-1
9
wit
hin t
he wo
rk
for
ce have be
en lo
w and s
prea
d ou
t suf
ﬁc
ient
ly to
notb
e a maj
or di
sr
upti
on.
The G
rou
p rem
ain
s focu
se
d on en
sur
ing o
pe
rat
ion
al co
ntin
uit
y
whe
rever i
t ca
n; however, it rema
in
s ver
y di
f
ﬁcul
t to pre
dic
t how t
he
on
goi
ng pa
nd
emi
c wil
l af
fec
t pe
r
for
ma
nce un
til th
e im
pac
t of ne
w
var
ia
nts a
nd w
aves of in
fec
tio
n is su
st
ai
nab
ly re
du
ced lo
ng
er-term.
Whi
ls
t the d
isr
upt
ion o
f the m
os
t rece
nt va
ria
nt of n
ote, Omi
cron,
ap
pea
r
s to have be
en le
ss s
evere t
han i
ts p
red
ece
ss
or
s, th
e glo
ba
l
po
pul
atio
n is not f
ull
y vacci
nate
d an
d sub
seq
ue
nt var
ia
nts c
oul
d be
more dead
ly
.
Stakeholder support:
The b
an
k an
d pen
sio
n sch
eme r
ema
in su
pp
or
ti
ve. No pay
men
t
ho
liday
s have be
en ne
ed
ed o
r put i
nto pl
ace th
us fa
r
.
34
Carclo plc
An
nua
l repo
r
t an
d acco
unts 2022
Risks
Mitigation
Change
3.
IT security breach,
systems failures
Hack
in
g an
d ong
oin
g dat
a se
curi
t
y ri
sk is
acon
cern f
or bu
sin
es
se
s ever
y
wh
ere.
Forli
ste
d com
pan
ie
s like Ca
rclo t
he r
isk
incr
ea
ses
. Sin
ce the 2020 CO
VI
D
-
1
9 out
brea
k
the
re ha
s al
so b
ee
n a sub
st
an
tia
l ris
e in
cy
ber-
crim
ina
l ac
tiv
it
y su
ch as r
an
so
mwa
re
an
d troj
an de
pl
oyme
nt an
d an i
ncrea
s
e in
so
phi
sti
cat
ion a
nd f
req
uen
cy of at
t
ack
s ha
s
be
en s
een. St
ake
hol
de
rs a
nd i
nsur
er
s are
incr
ea
sin
g the t
hres
ho
lds r
equ
ire
d of cy
ber
se
curi
t
y great
ly
, and i
ncrea
s
ed tu
rb
ule
nce
inth
e glo
ba
l eco
nomy a
nd s
ta
bi
lit
y ha
s
fur
ther heightened risk of
unwanted
sys
te
msbre
ache
s.
Ou
r IT sy
ste
ms pro
ces
s im
men
se da
ta
volu
me
s each day
. The
se s
ys
tem
s cont
ai
n
conﬁdential inf
ormation about our
customers, emplo
yees and
shareholders.
Abrea
kdow
n or s
yst
em fa
ilu
re may le
ad to
major disruption for the
business
es within the
Gro
up, esp
eci
al
ly if n
et
wor
k acce
ss is l
os
t.
Brea
che
s of IT se
cur
it
y may re
sul
t in
una
uth
or
ise
d acce
ss to o
r los
s of co
nﬁde
ntia
l
info
rma
tio
n, brea
che
s of gover
nm
ent da
ta
prote
c
tio
n leg
isl
atio
n, lo
ss or s
to
ppa
ge of
business, reputational damage, litigation and
regulatory investigation or
penalties.
Syste
ms f
ail
ure im
pac
t ca
n have si
gni
ﬁca
nt
op
era
tio
nal a
nd ﬁn
an
cial r
am
iﬁc
atio
ns i
f
conn
ec
ti
on is u
nab
le to b
e res
tor
ed qu
ick
ly
.
Securit
y frameworks:
Ca
rclo u
se
s a secu
ri
t
y pa
ss
word p
rotec
te
d ﬁrewa
ll to h
elp m
ini
mis
e
the r
is
k of fr
aud
ste
rs h
ack
ing i
nto th
e sys
tem, a
nd h
as a n
umb
er of
se
curi
t
y so
lut
ion
s to mo
nito
r an
d prote
ct i
ts u
se
rs a
nd m
aint
a
ins i
ts
sys
te
ms wi
th up
-to
-dat
e ver
sio
ns of a
ll it
s ma
jor a
pp
lic
ati
ons
.
A se
rie
s of ne
w cyb
er co
ntro
ls a
re pla
nn
ed in t
he fo
r
thco
min
g year
an
dbeyon
d, inc
lud
ing t
he int
rod
uc
tio
n of mul
ti-
fac
tor a
uth
ent
icat
ion
acro
ss a
ll Gro
up si
tes
.
Mu
lt
i-
leve
l se
cu
rit
y a
nd r
evie
w:
IT ma
nag
eme
nt un
der
ta
kes re
gul
ar r
isk rev
iew
s to keep d
ata s
ecu
re
an
d cons
tr
uc
t a layere
d envi
ron
men
t that p
rovid
es a co
unte
rm
eas
ure
to th
e var
y
ing fo
rm
s of cy
be
r-att
ack
s. Mu
lti
ple s
ecu
ri
ty a
pp
lic
ati
ons,
layer
s of ba
ck-up, lim
iti
ng acce
ss to co
re sy
ste
ms a
nd re
st
ruc
tu
rin
g IT
in-
hou
se s
ki
ll to pro
ac
tive
ly re
sp
ond to e
me
rgin
g cy
ber t
hrea
ts a
re
so
me of t
he cou
nter
mea
su
res a
ct
ivate
d. Sp
eci
ﬁc cy
be
r ris
k revi
ews
have be
en re
cent
ly ca
rr
ie
d out by a
n ex
t
ern
al co
nsu
lta
nt to cre
ate an
ind
ep
end
ent f
ra
mewo
rk of f
ocus a
nd a
ct
ion p
la
ns on p
rio
ri
t
y
imp
rovem
ent a
rea
s for c
yb
er se
cur
it
y
.
Acc
el
era
ti
ng c
lou
d-
ba
s
ed sy
st
em
s an
d se
cu
rit
y mi
gra
ti
on:
As p
ar
t o
f the G
rou
p’s new IT st
rate
gy th
e Gro
up is a
ccele
rat
ing
mig
rat
ion tocl
ou
d-b
as
ed s
ys
tem
s and s
ecu
ri
ty fo
r un
der
pin
nin
g
prote
c
tio
n ofGro
up sy
ste
ms a
s wel
l a
s cos
t
-e
f
ﬁcie
nc
y and
ef
fec
ti
vene
ss
.
Reducing Disaster Recov
ery lead times:
The b
us
ine
ss ha
s a d
eﬁne
d Di
sa
st
er Rec
over
y pro
ces
s. Pre
vio
us
ta
rge
ts fo
r ful
l recove
r
y in ﬁve d
ays are n
ow be
ing s
upe
r
sed
ed by
news
olu
tio
n pl
ans t
o roll o
ut 24-
hou
r dat
a recove
r
y an
d retu
rn to
op
era
tio
ns. Th
e Di
sa
st
er Rec
over
y so
lu
tio
n is for
ma
lly te
ste
d each
year a
nd a
ls
o und
erg
oes s
ever
al a
d ho
c res
tore c
ycle
s dur
ing e
ach
year to e
nsu
re read
ine
ss
.
PRINCIP
AL RISKS
ANDUNCERT
AINTIES
continued
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
35
Carclo plc
Annu
al re
po
r
t an
d accoun
ts 2022
Risks
Mitigation
Change
4.
T
reasur
y risk (
funding, liquidity
,
fo
re
igne
xch
an
ge (“
FX”
), a
nd ba
nk
in
g
an
dpe
ns
io
n cove
na
nt
s)
On 14Augu
st 2020, the Gr
oup co
nclu
de
d a
reﬁnanc
ing agreement
with the
Group
’s
len
din
g ba
nk a
nd it
s pe
nsi
on tr
us
tee
s wh
ich
prov
ide
s le
ndi
ng fa
cili
tie
s thro
ug
h to Jul
y
2023. The ag
ree
men
t incl
ude
s a num
be
r of
ﬁna
ncia
l coven
ant
s whi
ch ar
e nor
ma
l for
facilities of this
type.
Ca
rclo p
lc ca
n dr
aw dow
n on a £3.
5 mil
lio
n UK
revol
vin
g cred
it fa
cili
t
y comm
it
te
d by
theG
rou
p’s prin
cipa
l ba
nk un
til 31 Ju
ly 2023
an
d UK li
qui
dit
y ha
s to b
e ma
nag
ed th
rou
gh
thi
s faci
lit
y
. At 31 Mar
ch 20
22 t
he fa
cili
t
y is
ful
ly dr
awn.
The
re ar
e covena
nt
s over inte
res
t cover, net
leve
rag
e, core su
bs
idia
r
y reve
nue a
nd co
re
sub
sid
iar
y EBIT
A in re
sp
ec
t of th
e agre
ed
£3
8mill
ion co
mm
it
ted d
ebt f
acil
it
y
. The
se
are te
st
ed qu
ar
te
rl
y
. Th
e coven
ant te
st
s ar
e
ex
pe
ct
ed to b
e met b
as
ed o
n ma
nage
me
nt
’s
curr
ent fo
rec
as
t.
A ﬁf
th cove
na
nt is in f
avour of t
he C
arcl
o
Gro
up Pen
sio
n Sch
eme i
n res
pe
ct of t
he
Gro
up’s deﬁn
ed b
eneﬁ
t pe
nsi
on li
abi
lit
ies
tocur
rent a
nd fo
rm
er em
ploye
es.
Brea
ch of any o
f the
se cove
nan
ts co
uld l
ead
to th
ese cr
edi
tor
s ca
lli
ng in t
hei
r de
bts,
leavi
ng th
e pl
c ins
ol
vent.
In te
rms o
f fore
ign e
xcha
nge (“F
X”) ri
sk
,
Ca
rclo p
lc ha
s GB
P de
nom
inate
d de
bt for t
he
pe
nsi
on sc
hem
e, and d
oll
ar a
nd eu
ro
den
om
inate
d ba
nk de
bt. Th
ere i
s a ris
k that
inco
me i
s gen
er
ated i
n forei
gn cur
ren
cie
s
that a
re not a
n ex
ac
t match w
it
h the
den
om
inati
on of t
he b
ank d
ebt w
hich co
uld
imp
ac
t the G
rou
p’s abili
t
y to se
r
vice t
hat
debt.
Stre
ngt
hen
ing o
f GBP a
ga
ins
t the
subsidiaries’ functional currencies crea
tes a
ri
sk to P&L fo
rec
a
st
s.
Potent
ial i
ntere
st r
ate
s incre
as
es co
uld a
ls
o
incr
ea
se de
bt se
r
vic
ing co
st
s by
ap
prox
im
ately £0.
1 m
illi
on fo
r each 0.25%
interes
t rate increa
se.
Week
ly c
as
h pl
an
ni
ng a
nd m
oni
to
rin
g:
Group management monitors liquidity across all regions through a
rol
lin
g 1
3-we
ek c
as
h fore
ca
s
t and ove
r the m
ed
ium te
rm th
rou
gh
annual three-year forecasting, while maintaining a regular dialogu
e
wit
h the p
ri
ncip
al b
anke
r
.
Cov
enants results and proj
ections:
Ba
nk an
d pe
nsi
on coven
ant
s have b
een m
et con
tinu
ou
sly s
ince
esta
blishing the initial £38 million bank debt facilities in A
ugust 20
20
.
At 31 Mar
ch 20
22, th
e fa
cili
ty av
ail
ab
le is £
33.
9 mil
lio
n, comp
ri
sin
g a
£30.4 mi
lli
on ter
m lo
an f
acil
it
y an
d a £3.
5 mill
ion r
evolv
ing cr
edi
t
fac
ilit
y
. Gro
up ca
s
h head
roo
m at 31 Ma
rch 2022 aga
ins
t ba
nk f
acili
tie
s
wa
s hig
h at over £12 milli
on a
nd ne
t deb
t excl
udi
ng lea
s
e lia
bil
iti
es
wa
s£21.5 mil
lio
n.
Cur
rent fo
rec
a
st
s for th
e ﬁna
ncia
l yea
r to Ma
rch 2023 indi
cate
d
covena
nt
s wil
l be me
t.
Monthly
/
quar
terly
compliance monitoring
:
Covena
nt co
mpl
ian
ce is re
po
r
ted m
onth
ly to th
e ba
nk a
nd pe
ns
ion
sch
eme t
ru
ste
es i
n tri
par
tit
e rep
or
t
s an
d is revi
ewed a
lo
ng
sid
e Gro
up
pe
r
for
man
ce reg
ula
rl
y in tr
ipa
r
ti
te qua
r
ter
ly m
ana
gem
ent m
eet
ing
s
wit
h the E
x
ecut
ive Cha
ir a
nd CFO.
FX –
Monthly projection
monitoring:
An
nua
l ﬁna
ncia
l fore
ca
s
ts a
re mo
nito
red fo
r ex
chan
ge r
isk o
n a
monthly basis.
Divisional FX hedging accountability:
FX r
isk i
s man
age
d at sub
si
dia
r
y leve
l thro
ugh n
atur
al h
ed
ges o
r
for
w
ard co
ntr
ac
ts wh
ere n
ece
ss
ar
y a
nd t
he FX co
mmi
tm
ent ti
min
g
an
d qua
ntu
m is kn
own a
nd mat
eri
al. S
ubs
idia
r
y-l
evel r
isk m
ana
gem
ent
ha
s be
en ef
fe
ct
ive to da
te wit
h rel
ative
ly mi
nor e
xcha
ng
e gai
ns a
nd
lo
sse
s re
cogn
ise
d at su
bsi
dia
r
y leve
l.
Group FX hedging
policies are in place
:
The
se a
re se
t out i
n the G
rou
p ﬁna
nce ma
nua
l to he
lp mi
tig
ate FX
ex
po
sur
e in cent
ra
l trea
su
r
y wi
th refe
ren
ce to late
st cur
ren
cy c
a
sh
ﬂow a
nd ﬁn
anci
al fo
rec
as
t
s. Bu
dge
ted p
roje
ct
ion
s al
low for e
x
pe
cte
d
inte
res
t rate i
nﬂat
ion.
Multi-
currency bank loan
debt hedging in
place:
USD13.3 mil
lio
n and EU
R4.
9 m
ill
ion of d
ebt i
s hel
d in cur
ren
cy,
prov
idi
ng a he
dg
e over pa
r
t
s of the G
rou
p’s net inves
tm
ent in f
orei
gn
operations.
Individual
material
FX
cas
h ﬂo
w he
dgi
ng i
s ap
pl
ied
whe
re si
gni
ﬁca
nt FX e
xp
os
ure may a
ri
se, su
ch as f
rom l
arg
e ca
pit
al o
r
pro
jec
t sp
en
d or s
ale co
ntr
ac
ts
, or wh
ere s
igni
ﬁca
nt c
as
h rep
atri
atio
ns
are a
s
se
sse
d aga
in
st n
et FX c
as
h cur
rent a
nd fo
rec
as
t po
si
tio
ns to
determine
whether hedgi
ng is
appropriate
.
The main mitigation t
o inﬂationary impact is to manage w
orking
ca
pit
al a
nd c
ap
it
al e
xp
en
dit
ure ef
fe
ct
ivel
y an
d accor
din
gly w
ith
in th
e
reg
ula
r rol
ling w
eek
ly a
nd m
onth
ly tr
ea
sur
y a
nd coven
ant fo
rec
a
st
s
undert
aken
.
36
Carc
lo plc
Ann
ual re
po
r
t an
d accoun
ts 2022
PRINCIP
AL RISKS
ANDUNCERT
AINTIES
continued
Risks
Mitigation
Change
5.
Rep
at
ria
ti
on of c
as
h to
holding
company
The m
aj
ori
t
y of th
e Gro
up’s earn
ing
s are
nowg
ene
rate
d over
se
as, w
it
h the p
lc it
se
lf
non-trading and therefore requiring regular
fun
din
g a
s a cos
t cent
re ent
it
y wi
th
com
mit
te
d ba
nk an
d pe
nsi
on de
bt
rep
ayme
nts
. If th
ere wa
s in
suf
ﬁ
cie
nt ab
ilit
y
for ove
rs
ea
s sub
sid
iar
ie
s to rep
atr
iate ca
sh
toth
e plc t
hen i
t coul
d create a l
iqu
idi
t
y
sho
r
t
fa
ll.
Monitoring:
The G
rou
p gen
er
all
y ai
ms to ge
ne
rate s
uf
ﬁci
ent c
as
h to cover h
old
ing
com
pany s
hor
t
fa
lls, a
lt
hou
gh th
ere m
ay be ti
min
g sho
r
t
fa
lls to
fore
ca
s
t, mo
nito
r an
d res
olve w
ith f
un
din
g whe
re ne
ede
d.
The Group monitors liquidity Group-wide by country through a
rolling
1
3-w
eek c
a
sh for
eca
s
t an
d over th
e me
dium te
rm t
hrou
gh a
nnu
al
three
-year foreca
sti
ng.
Inter-company charge
processes in place
:
Ca
sh i
s reg
ula
rly r
emi
t
ted to th
e UK f
rom s
ubs
idi
ar
ies f
rom t
rad
ing
inco
me, roya
lt
ies a
nd m
ana
gem
ent s
er
v
ice re
char
ges
, such a
s IT
,
Gro
up ﬁna
nce a
nd m
ana
gem
ent
, divi
de
nds a
nd i
ntr
a-g
roup l
oa
ns.
Sub
si
dia
rie
s reg
ula
rl
y fore
ca
st t
hei
r avai
lab
le c
as
h to rem
it over t
he
sho
r
t an
d me
diu
m tim
e hor
izo
ns, a
llow
ing U
K li
qui
dit
y to b
e pla
nn
ed
an
d man
age
d.
Support from pro
fessional tax and treasury advisors
prov
ide
s ap
pro
pr
iate tec
hnic
al a
nd l
ega
l gu
ida
nce o
n inter-
comp
any
tr
adin
g, cha
rge
s an
d man
agi
ng th
e ap
prop
ri
ate an
d ef
fec
ti
ve paym
ent
an
d rece
ipt of i
nter-co
mpa
ny ca
sh.
6.
Pensi
ons
Ca
rclo’s UK d
eﬁne
d be
neﬁ
t pen
sio
n sch
em
e,
havin
g lo
ng si
nce clo
se
d to new e
ntr
ant
s, i
s
matu
re an
d la
rge co
mpa
red w
ith t
he si
ze of
Ca
rclo. Th
e sch
eme i
s bac
ked by sub
st
an
tia
l
a
sse
ts a
mou
nti
ng to £155.8 mill
ion at
31Mar
ch 20
22 (2021
: £16
7
.4 milli
on), with a
n
IA
S 1
9 acco
unti
ng de
ﬁcit a
t 31 March 2022 of
£26.
0 million (
20
2
1
: £3
7
.3 million
)
.
The triennial actuarial pension valuation
deﬁ
cit of £90.4mi
llio
n a
s at 31 Mar
ch 201
8
wa
s agr
eed a
s p
ar
t of t
he re
ﬁna
ncin
g
ar
ra
nge
me
nt con
clud
ed o
n 14 Augus
t 202
0 in
whi
ch the G
rou
p agre
ed to a p
en
sio
n deﬁ
cit
recove
r
y pla
n com
pr
isi
ng con
tri
but
io
ns of
£2.8 m
illi
on in t
he yea
r to 31 Mar
ch 202
1
, £3.9
mil
lio
n in th
e year to 31 Ma
rch 2022 an
d £3.8
mil
lio
n in th
e year to 31 Ma
rch 2023. Th
e
Gro
up is i
n dis
cuss
io
n wit
h the p
ens
io
n fun
d
trustees to ﬁnalise the triennial valuation as
at 31 Ma
rch 202
1 incl
udi
ng th
e res
ult
an
t
cont
rib
ut
ion l
evel
s for th
at val
uati
on.
Whi
ls
t the i
ntere
st
s of t
he Gr
oup a
nd th
e
pension fund trustees are aligned in agreeing
an a
f
forda
bl
e sch
edu
le of d
eﬁci
t rep
air
cont
rib
ut
ion
s, th
ere is a
lway
s so
me el
em
ent
of ri
sk th
at thi
s wil
l not be a
chie
ved.
The
refo
re, the
re rem
ain
s a ri
sk tha
t the
Pens
ion
s Reg
ulato
r may imp
os
e con
dit
ion
s
on th
e Gro
up th
at the D
ire
ct
or
s de
em to be
unaffordable.
The G
rou
p ex
pe
ct
s it w
ill b
e ab
le to m
ake
thep
ayme
nt
s set o
ut in t
he sch
ed
ule o
f
contribut
ions.
The P
PF lev
y is a t
a
x o
n the s
che
me’s net
lia
bil
it
y dr
iven by t
he Gr
oup’s cred
it r
isk
.
Du
rin
g COVID
-
1
9
, U
K gove
rnm
ent p
ol
icy h
as
intr
odu
ced a l
ower c
ap w
hich ha
s kep
t the
lev
y at £0.6 mill
ion, b
ut i
f the c
ap i
s lif
te
d
the
re is a r
isk o
f the l
ev
y ris
ing t
o aro
und £1
mil
lio
n. This c
os
t woul
d be re
cog
nis
ed in t
he
Gro
up in
com
e st
atem
ent a
nd wh
ils
t it wo
uld
be s
et
tl
ed ou
t of sch
em
e as
se
ts, t
hus
prote
c
ting t
he G
roup’s ca
sh, i
t dim
ini
she
s the
deﬁ
cit re
duc
ti
on ef
fe
ct o
f the Co
mp
any’s
contribut
ions.
T
rustee liaison
:
The G
rou
p ful
ly an
d reg
ula
rl
y eng
age
s wi
th th
e sch
eme Ch
air o
f
theT
ru
ste
es, w
ho i
s resp
on
sib
le fo
r the d
evel
opm
ent o
f a str
ate
gy
topro
ac
tive
ly ma
nag
e a
sse
ts, l
iab
ili
tie
s an
d adm
inis
tr
ati
ve cos
ts of
thes
che
me.
T
rustee regular monitor
ing:
Reg
ula
r revie
w of th
e pen
sio
n sch
eme a
nd Co
mp
any p
osi
tio
n is
con
duc
ted cu
rre
ntl
y in th
e form o
f tri
pa
r
tit
e mee
tin
gs b
et
wee
n the
bank,
trustees
and
Compan
y
.
Deﬁcit reduction initiatives:
The G
rou
p wor
ks w
ith t
he tr
us
tee
s on d
eﬁci
t red
uc
tio
n ini
tiati
ves.
TheG
rou
p of
fer
s el
igi
ble p
en
sio
ner
s t
he opt
ion t
o swi
tch fro
m a
pe
nsi
on wi
th in
de
xed
-lin
ked p
ens
ion i
ncrea
s
es to a hi
ghe
r ﬁx
ed
pe
nsi
on wi
th no f
ut
ure in
crea
se
s. Th
e Comp
any ha
s a
ls
o intr
odu
ced
aBr
idg
ing Pe
nsi
on O
ptio
n whi
ch red
uce
d the a
ccoun
tin
g (IAS 19)
ca
lcul
atio
n of th
e sch
eme d
eﬁci
t an
d may al
so re
duce t
he s
chem
e
liabilities on the trustees’ tec
hnical provisions basis.
PPF l
ev
y ma
na
ge
me
nt:
The G
rou
p cont
inu
es to li
ais
e wi
th ad
vis
or
s an
d the s
che
me’s Chai
r in
res
pe
ct of P
PF lev
y ma
nag
em
ent a
nd oth
er o
pp
or
tu
nit
ies w
hich c
an
he
lp be
neﬁ
t mem
be
rs a
nd s
chem
e lia
bi
lit
ies.
Enterprise
value
growth:
Gro
up ma
nag
em
ent, w
ith t
he su
ppo
r
t of th
e ba
nk a
nd sch
em
e, is
focu
se
d pri
ma
ril
y on gr
owin
g Gro
up ent
erp
ri
se va
lue t
o redu
ce th
e
deﬁ
cit re
lati
ve to the s
ize of t
he Gr
oup. Th
e Gro
up ha
s pre
se
nted i
ts
bu
dge
t and l
on
g-ter
m pl
ans t
o the s
che
me an
d th
e ban
k at th
eir
req
ues
t in t
he for
m of a Valu
e Creat
ion P
lan.
Inv
estment stra
tegy:
The C
omp
any ha
s p
ar
ti
cip
ated in T
ru
ste
e Bo
ard ch
an
ges m
ade t
o the
sch
eme’s inve
stm
ent m
ana
ge
ment a
nd s
tr
ateg
y whi
ch wa
s up
date
d
dur
ing t
he yea
r to 31 Ma
rch 2022. This re
sul
ted i
n ado
ptin
g a sli
ght
ly
hig
her r
is
k, hi
ghe
r retu
rn s
tra
tegy w
hich w
a
s cons
ide
red to b
e mo
re
like
ly to en
abl
e a
ss
et grow
t
h to hel
p red
uce th
e sch
em
e’s deﬁcit.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
37
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
Risks
Mitigation
Change
7.
Reliance on
major customers
an
dcr
edi
t ris
k
A sub
st
an
tia
l pa
r
t of th
e Grou
p’s revenue i
s
con
centr
ate
d in a rel
ative
ly sm
al
l numb
er o
f
lar
ge cus
to
mer
s. A
ny und
er
per
f
orm
an
ce
coul
d lea
d to th
e los
s of ex
is
ti
ng or f
utu
re
bu
sin
ess
. Fur
the
r
, othe
r comp
eti
tive f
ac
tor
s
or cha
ng
es in cu
st
ome
r be
havio
ur cou
ld l
ead
to a sig
niﬁ
ca
nt lo
ss of reve
nue. Pr
ess
ure
s
fro
m pr
ice in
crea
se
s req
uire
d to of
f
set t
he
po
st-COVI
D-1
9 inpu
t cos
t inﬂ
atio
n imp
ac
t
acro
ss th
e bu
sin
es
s and i
nter
nati
ona
l
economies could trigger opposition from
cus
tom
er
s an
d des
t
abi
lis
e the r
elat
ion
shi
p.
The l
arg
es
t con
cent
rati
on of cu
sto
me
r ris
k is
at th
e Ind
ia pla
nt w
ith p
red
omi
nant
ly o
ne
lar
ge gl
ob
al cus
to
mer.
Cred
it r
isk i
s ex
pe
cte
d to in
crea
se g
ene
ra
lly
a
s a resu
lt of t
he pa
nd
emi
c.
We have a maj
or en
d cus
tom
er of t
he
Aero
sp
ace bu
sin
es
s, wh
o alo
ng w
ith t
he re
st
of th
e se
cto
r ha
s ex
pe
rie
nce
d a tur
nd
own in
the a
ero
spa
ce ma
rket du
e to th
e COVID
-
1
9
pa
nde
mic
. This h
as l
ed to r
edu
ced ﬂi
ght
dem
an
d an
d ha
s sup
pre
ss
ed ai
rcra
f
t bui
ld
rate
s an
d in tu
rn d
ema
nd fo
r our p
rod
uc
ts.
Ord
er
s ar
e howeve
r now re
coveri
ng a
s ai
r
tr
avel incr
ea
ses a
nd a
ircr
af
t b
uil
d rate
s are
rever
t
ing to m
ore n
or
ma
l level
s.
Ma
nag
eme
nt is p
ut
ti
ng an i
ncrea
s
ed fo
cus o
n ope
rat
ion
al e
xcel
len
ce
to en
sure t
hat th
e Gro
up ret
ai
ns it
s key cus
tom
er
s thr
oug
h cla
ss
lea
din
g cos
t, qua
li
ty a
nd d
eli
ver
y
. The G
rou
p ha
s lon
g-s
t
an
ding
po
sit
ive rel
atio
ns
hip
s wit
h it
s key cust
ome
rs a
nd t
he hi
gh leve
ls of
inves
tm
ent t
he Gr
oup ha
s ma
de in b
oth p
rod
uc
tio
n eq
uip
ment a
nd
pro
ces
s kn
ow-h
ow he
lp to en
sure t
he lo
ng
evit
y of t
ho
se re
lati
ons
hip
s.
Di
ver
siﬁ
cati
on of b
usi
nes
s is b
ein
g so
ught l
on
ger te
rm w
her
e
con
centr
ati
on le
vels a
re mo
st h
igh, s
uch a
s In
dia
. This w
ill t
ake t
ime
todeve
lop.
Credit risk has been reduced signiﬁcantly b
y gaining cr
edit insurance
cover in t
he ﬁn
an
cial yea
r for t
he wh
ol
e Gro
up, incl
udi
ng not
ab
ly I
ndia
an
d Chin
a, wh
ere p
revio
us
ly cre
dit i
nsu
ra
nce cover w
as a
bs
ent o
r
limited.
Ou
r pol
ic
y ha
s be
en to fo
cus on m
aj
or cus
tom
er
s wh
o are b
lue
-
chip
mul
ti-
nati
ona
ls o
per
ati
ng in t
he me
dic
al, e
le
ct
roni
cs a
nd ae
ros
pace
ma
rket
s, prov
idi
ng a de
gre
e of cre
dit p
rote
cti
on f
rom s
tre
ngt
h, size
an
d rep
ut
atio
n.
The ch
an
ge to th
e leve
l of ba
d debt
s e
xp
er
ien
ced in t
he yea
r und
er
revi
ew
, an
d the p
ri
or yea
r
, were ne
gli
gib
le.
38
Ca
rclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
PRINCIP
AL RISKS
ANDUNCERT
AINTIES
continued
Risks
Mitigation
Change
8.
Op
era
tio
na
l exe
cut
io
n ri
sk a
nd
management bandwidth/
dependence
on key
in
di
vi
du
al
s
The n
ew ﬁna
nci
al yea
r req
uire
s ad
diti
ona
l
exe
cut
ion fo
cus o
n new ma
jo
r cont
rac
t
s, pl
us
incr
ea
sin
g at
tenti
on to e
f
fec
tive c
ap
acit
y
utilisation as the T
echnical Plastics busine
ss
expands.
The d
ivi
sio
n ha
s won n
ew mul
tip
le ma
jo
r
too
lin
g an
d sup
ply co
ntr
ac
ts a
nd is l
oo
ki
ng to
ex
pa
nd f
ur
th
er
. If th
es
e are n
ot wel
l exe
cute
d
they w
ill a
bs
or
b man
age
me
nt tim
e, imp
ac
t
cus
tom
er re
lati
ons
hip
s an
d hin
der fo
rec
a
st
ear
nin
gs g
row
th a
nd ca
sh g
en
er
atio
n.
Sc
arci
t
y of la
bou
r glo
ba
lly
, bu
t in pa
r
ti
cula
r in
the U
S, may im
pa
ct th
e Gro
up’s abi
lit
y to
exe
cute b
oth p
roje
ct
s a
nd pro
du
ct
ion.
The m
ana
ge
men
t of the G
rou
p ha
s be
en
stretc
hed follo
wing the
restructuring,
and
af
te
r str
eam
lini
ng a
nd refo
cus
ing of t
he
Gro
up over t
he la
s
t t
wo year
s. Th
ere a
re
so
me key me
mbe
r
s of ma
nag
eme
nt wi
th
signiﬁcant exper
ience of
the business and
up
on wh
om th
e Gro
up pa
r
ti
cula
rl
y reli
es.
The
re is a co
ntin
uit
y r
isk i
n the c
a
se th
at any
of th
es
e ind
ivi
dua
ls a
re no lo
ng
er pr
ese
nt.
Re
gul
ar r
is
k rev
iew
s:
The G
rou
p ha
s deve
lop
ed a
n enh
an
ced fo
cus on s
ite
-l
evel ri
sk
ma
nage
me
nt. Frequ
ent m
ana
ge
men
t revie
ws be
t
wee
n ris
k owne
r
an
drep
or
ti
ng ma
nag
er
s ar
e con
duc
ted.
Succession planning:
The G
rou
p ha
s com
men
ced th
e rol
l-
out o
f for
mal s
ucce
ssi
on p
lan
nin
g
acro
ss a
ll ma
nag
eme
nt to id
ent
if
y a
nd mi
tig
ate the h
igh
es
t ris
k
s for
cover a
nd su
cces
sio
n an
d imp
le
ment p
la
ns to re
duce t
he r
isk o
f
signiﬁcant
business impact
from k
ey
dependent loss
.
Operational ex
cellence:
The G
rou
p is pu
t
tin
g an in
crea
se
d focu
s on o
pe
rati
ona
l ex
cell
enc
e to
ens
ure t
hat th
e ope
rat
ion
al e
xecu
tio
n ri
sk is mi
nim
ise
d. Thi
s invol
ves
inves
tm
ent in b
oth p
eo
pl
e and s
ys
tem
s to ens
ure t
hat th
e bus
ine
ss
me
ets b
oth t
he ne
ed
s of it
s cus
tom
er
s an
d al
so ma
x
imis
es t
he
ef
ﬁci
ent u
sag
e of it
s a
ss
ets
.
KPI reporting and
regular local and
Group management
monitoring:
Per
fo
rma
nce e
xecu
tio
n is ma
na
ged v
ia en
han
ced fo
cus o
n
ma
nage
me
nt of ri
sk
s at a lo
ca
l leve
l, regu
la
r and f
req
uen
t
ma
nage
me
nt revi
ews b
et
wee
n ri
sk own
er a
nd re
por
tin
g ma
nag
er
s
an
d the u
se of o
pe
rat
iona
l KP
Is re
po
r
tin
g and m
on
itor
in
g.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
39
Carclo plc
An
nua
l repo
r
t an
d accou
nts 2022
VIABILITY ST
A
TEMENT
The B
oard h
as a
s
ses
sed t
he via
bil
it
y of
the G
roup over a th
ree
-year per
io
d to
31March 2025 tak
ing acco
unt of th
e
Grou
p’
s curren
t pos
itio
n and t
he
potent
ial im
pac
t of the p
rin
cipa
l
ris
ksa
sdo
cume
nted a
bove.
A robu
st a
ss
es
sme
nt of the p
rinci
pal
ris
ks f
acing t
he bu
sine
ss wa
s con
duc
ted,
inclu
ding t
hos
e that wou
ld threate
n it
s
business model
, future
per
formance
,
sol
venc
y or liq
uidi
t
y
, al
ong w
ith a
det
ail
ed revi
ew of the b
udg
et for th
e year
end
ing 31 Ma
rch 20
2
3 and t
he fore
ca
st
s
for th
e year
s endi
ng 31 March 202
4 a
nd
31 March 2025.
Thre
e year
s is cons
ider
ed to be
ana
ppro
pri
ate per
iod over w
hich a
rea
sona
bl
e ex
pe
ct
ation o
f the Gr
oup’s
lon
ger-term via
bil
it
y ca
n be eva
luated
and i
s ali
gne
d with o
ur pla
nnin
g hor
izon
at both G
roup a
nd div
isio
nal l
evel.
On 14 Augus
t 20
20 Carclo p
lc con
clude
d
a res
tru
ct
urin
g with t
he Com
pany’s mai
n
credi
tor
s bei
ng it
s ban
k, HS
BC, a
nd th
e
pen
sio
n sche
me to se
cure the co
ntinu
ed
supp
or
t o
f thos
e pa
r
tie
s throu
gh to Jul
y
20
23. Buil
t into th
e agree
ment
s are t
he
commi
tme
nts th
at by 31 July 20
22 (this
date havin
g bee
n recent
ly ex
te
nde
d by
one m
onth)
, Ca
rclo wil
l have agree
d
a)areﬁnan
cing of i
ts Lend
er Facilit
ies
toex
ten
d to 31 March 202
6, and b) a
Sche
dul
e of Contr
ibu
tion
s wit
h the
trustees reﬂectin
g funding requirements
in conn
ec
tio
n with t
he ac
tua
ria
l valu
ation
of the s
chem
e as at 31 Ma
rch 20
21
.
Key to the Grou
p’
s via
bilit
y
, in add
itio
n to
securing continuity of lending facilities, is
that th
e pen
sion s
chem
e conti
nues to
supp
or
t t
he Gro
up. The Gro
up is wor
ki
ng
clos
ely w
ith th
e pen
sion s
chem
e tru
ste
es
to ensu
re that th
is conti
nues to b
e the
ca
se, an
d the cur
rent leve
l of pen
sion
contributions required is set thr
ough to
July 2023. The 31 March 202
1 tri
ennia
l
val
uatio
n, and acco
rding
ly an u
pdated
sche
dul
e of contr
ibut
ion
s which ha
s
be
en provi
siona
lly a
gree
d, is ex
pe
cte
d
tobe con
clud
ed by 31 July 2022.
The G
roup, the b
ank a
nd th
e pen
sion
sche
me tr
us
tees a
re ac
tivel
y enga
ged in
neg
otiatio
ns over th
e reﬁna
ncing of t
he
ba
nk debt b
eyond th
e curre
nt ex
pir
y date
of 31 July 2023 and over th
e update
d
sche
dul
e of contr
ibut
ion
s. The p
ar
ti
es
are co
mmit
te
d to a pla
n to ﬁnal
ise th
ese
by 31 July 20
22 a
nd th
e Dire
cto
rs have an
ex
pe
ct
atio
n that thi
s will b
e achieved.
The d
ebt faci
liti
es avail
abl
e to the G
roup
comp
ris
e a term l
oan o
f £30.3 mi
llio
n,
ofwhi
ch £1
.4 mil
lion w
ill be a
mo
r
tis
ed
by30Se
ptemb
er 20
22 a
nd a £3.
5 milli
on
revolvi
ng cred
it faci
lit
y whi
ch wa
s full
y
util
ise
d as o
f 31 March 20
22. Both o
f
the
se fa
ciliti
es mat
ure on 31 July 2023.
The tripar
tite agreement with
len
der
san
d the p
ens
ion s
cheme
of1
4Augu
st202
0 al
so set
s ou
t the
sche
dul
e of deﬁn
ed be
neﬁt p
ens
ion
sche
me deﬁ
cit rep
air co
ntrib
uti
ons
comp
risi
ng cont
ribu
tio
ns of £3.8 m
illio
n
in the yea
r end
ing 31 Ma
rch 20
23.
TheD
irec
tor
s have as
se
sse
d that a
ll
contr
ibu
tion
s andb
ank re
payme
nts a
re
af
fordable throughout the three-y
ear
per
io
d and a
rereﬂe
cte
d in the covena
nt
proj
ec
tion
s. Fur
ther t
hey have as
ses
se
d
that ma
nage
ment
’s bes
t es
timate
s of the
impa
ct of t
he on
goin
g neg
otiatio
ns on
facilities and pension contributions,
which i
nclud
es cur
rently u
ncomm
it
ted
ba
nk loa
n repaym
ent
s and p
rovisi
onal
ly
agreed additional pension deﬁcit
reco
very con
tributions
cont
ingent
on
fut
ure pe
r
form
ance, ar
e af
forda
ble
throughout the three-ye
ar period.
The bank facilities are subject to f
our
covenant
s to be te
ste
d on a qua
r
ter
ly
ba
sis: und
er
lyin
g intere
st cover; ne
t debt
to underlying EBITD
A; cor
e subsidiar
y
underlying EBIT
A; and core subsidiary
revenue. Ba
se
d on ou
r curre
nt ba
se
ca
sefo
reca
s
ts, th
es
e covenant te
st
s
aree
xp
ec
ted to b
e met for a
ll pe
rio
ds.
In ad
diti
on, the p
ens
ion s
cheme h
as t
he
ben
eﬁt of a ﬁf
th covena
nt to be tes
ted o
n
1 May each year up to a
nd in
cludi
ng 20
23,
the te
rms of w
hich a
re ex
pec
ted to b
e
comp
lied w
ith un
der t
he curre
nt
man
agem
ent pro
jec
tio
ns. In re
spe
ct
tothe yea
rs to 31 Ma
rch 20
22 an
d
31March2023 the tes
t requi
res a
ny
sho
r
t
fa
ll of pe
nsio
n deﬁcit re
cover
y
contr
ibu
tion
s whe
n mea
sure
d aga
inst
PPF pr
ior
it
y dri
f
t (which is a mea
su
re of
the in
crea
se in th
e UK Pen
sion Prote
ct
ion
Fund’s potentia
l ex
po
sure to th
e Grou
p’
s
pen
sio
n sche
me lia
bili
ties) to be met by a
comb
inatio
n of ca
sh paym
ent
s to the
scheme pl
us a no
tional
(
non-cash
)
prop
or
t
ion of th
e increa
s
e in the
und
erl
ying va
lue o
f the C
TP and
Aero
space b
usin
es
ses b
as
ed o
n an
EBITDA mul
tipl
e for tho
se b
usin
ess
es
which i
s to be dete
rmi
ned a
nnua
lly
.
Ba
se
d on ma
nage
ment
’s current b
es
t
es
timate of PPF p
rio
rit
y d
rif
t i
n
comb
inatio
n with t
he ba
s
e ca
se, this
tes
tis ex
pe
cte
d to be s
atisﬁ
ed for a
ll
relev
ant pe
rio
ds.
The tr
ien
nial a
ctu
ar
ial a
ss
ess
ment o
f the
Grou
p’
s deﬁn
ed be
neﬁt p
ens
ion s
cheme
liab
ilit
y a
s at 31 Ma
rch 20
2
1 an
d
a
sso
ciated de
ﬁcit rep
air co
ntri
buti
ons
mus
t be ag
ree
d by the Gro
up an
d the
pen
sio
n fund t
rus
tee
s by 31 July 20
22
and i
s nea
ring co
nclu
sion. Th
e as
so
ciated
deﬁci
t repa
ir contr
ibu
tio
ns woul
d
contin
ue to be a
pp
lied fo
llowi
ng matu
rit
y
of the cur
rent ﬁn
ancin
g agre
eme
nt on
31July 2023. For the pur
po
se of th
e lates
t
ac
tuar
ial v
aluat
ion (as at 31 March 201
8)
the s
chem
e act
uar
y h
as c
alcu
lated th
e
techni
ca
l provisi
ons d
eﬁcit to b
e
£90.
4mill
ion; this d
eﬁcit ha
s in
creas
ed
from t
he prev
ious v
aluat
ion d
eﬁcit (as at
31March 201
5) o
f £
46.
1 millio
n. In the
conte
x
t of the p
roﬁta
bil
it
y an
d the ca
s
h
gen
erat
ion of th
e Gro
up this i
s a majo
r
liab
ilit
y
. In orde
r to miti
gate the r
isk to
the G
roup, the B
oard co
ntinu
es to wor
k
clos
ely w
ith th
e pen
sion s
chem
e tru
ste
es
to hel
p redu
ce liab
iliti
es an
d ris
k
a
sso
ciated wi
th the d
eﬁne
d be
neﬁt
pension sche
me where
appropriat
e.
40
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
The cur
rent ﬁna
ncin
g agre
eme
nt
provid
es th
e ba
nk an
d pen
sion s
chem
e
dur
ing th
e term of t
he fa
cilit
y wi
th a
cer
t
ain l
evel of mo
nitor
ing of e
nterp
ris
e
per
for
mance a
nd th
e po
ssib
le us
e of
sur
plus c
a
sh ﬂow on
ce the inves
tm
ent
nee
ds of th
e bus
ine
ss, agr
eed b
et
ween
the p
ar
ti
es, have be
en met.
Ma
nagem
ent ha
s con
sid
ered w
heth
er it
is awar
e of any sp
eciﬁc re
leva
nt fac
tor
s,
othe
r than m
ore fore
se
eabl
e ris
ks t
hat
any bu
sine
ss fa
ces, b
eyond the t
hree
year tim
e hor
izon. A
sid
e from t
he ri
sk
relati
ng to fu
ture p
ensi
on sch
eme d
eﬁcit
repa
ir cont
rib
utio
ns, ba
nk lo
an
repaym
ent
s and re
lated covena
nts
arising from
the ongoing
negotia
tions
des
crib
ed a
bove, and co
nsid
erat
ion of
the p
rin
cipal r
isk
s a
nd unce
r
ta
intie
s an
d
miti
gatio
n pla
ns a
s set o
ut in th
e annu
al
rep
or
t, th
ey have conclud
ed that t
here
are n
o other
s of a si
gniﬁc
antl
y
mater
ialn
ature.
The D
irec
tor
s have reviewe
d sen
sitiv
it
y
tes
ting b
as
ed o
n a numb
er of rea
so
nab
ly
po
ssib
le sce
nar
ios, t
ak
ing i
nto account
the cur
rent vi
ew of imp
act
s of th
e
conti
nuing C
OVID-
1
9 pandemic on the
Grou
p (pa
r
ticula
rly f
rom su
ppl
y chain
disruption and any unmitigat
ed cost
inﬂati
on acros
s all t
y
pes o
f ope
ratio
nal
expenditu
re
) and poss
ible
politi
cal
uncer
ta
int
y
, i
nclud
ing th
e impa
ct of
theRu
ssia
n inva
sion o
f Ukr
ain
e an
d
heig
htene
d ris
k of wid
er conﬂi
ct,
Bre
xita
nd oth
er po
ssi
ble over
sea
s
trading issues.
Severe do
wnside sensitivit
y testing
ha
sbe
en pe
r
form
ed un
der a r
ang
e of
scen
ari
os mo
del
ling t
he ﬁna
ncial e
f
fec
ts
of los
s of bu
sine
ss fro
m: discrete si
tes,
an over
all f
all in g
ross m
argi
n of 1
%
acros
s the G
roup, a fal
l in Gro
up sa
les
of5% matched by a cor
resp
on
ding f
all in
cos
t of sa
les of t
he sa
me a
mou
nt, delays
in the t
imin
g of comm
encem
ent of
signiﬁcant contractual project
s,
redu
ct
ion in reven
ue fro
m spe
ciﬁc
customer
s, minimum wage inc
reases,
and unmitigated inﬂa
tionar
y impact
acros
s ope
rati
ng cos
ts a
nd ex
chang
e
risk. These sensitivi
ties attempt to
inco
rpo
rate th
e ris
ks a
ris
ing fro
m natio
nal
and r
egio
nal i
mpac
ts o
f the gl
oba
l
pan
dem
ic fro
m loc
al lo
ckdowns
, impa
ct
s
on ma
nuf
act
urin
g an
d supp
ly chai
n and
othe
r potenti
al in
creas
es to di
rec
t and
indi
rec
t cos
ts. Th
e Dire
cto
rs co
nsid
er
that th
e Grou
p has t
he ca
paci
t
y to take
mitigating actions to ensure
that the
Grou
p rema
ins ﬁna
ncia
lly vi
abl
e,
including fur
ther reducing operating
ex
pe
ndit
ure a
s nece
ss
ar
y
. I
n term
s of
mon
itor
ing th
e curre
nt comme
rcial
enviro
nme
nt for ris
k, th
ere ar
e no
indications of any
signiﬁcant
deter
ior
atio
n in the s
al
es ord
er b
ook
pip
elin
e, and no m
ateria
l ca
pit
al s
pen
d
commi
tme
nts o
uts
ta
ndi
ng whi
ch would
ap
pear to b
e at ris
k of lo
nger-term
materi
al ﬁnancial
loss.
Following this
sensitivit
y testing the
Dire
cto
rs h
ave conclude
d that th
e Grou
p
will b
e ab
le to cont
inue in o
pe
ratio
n and
mee
t its l
iabi
liti
es a
s they f
all du
e over a
thre
e year pe
rio
d.
The s
trate
gic re
por
t wa
s ap
proved by the
Boa
rd on 29 Ju
ne 20
22 a
nd sig
ned o
n it
s
behalf by
:
Nick Sanders
E
xecutive Chair
Phil White
Chie
f Fina
nci
al O
f
ﬁcer
VIABILITY ST
A
TEMENT
continued
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
41
Ca
rclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
The s
tate
ment of co
rp
orate g
overna
nce
pra
ct
ices se
t out o
n page
s 46 to 49
,
inclu
ding t
he rep
or
t
s of Bo
ard
Comm
it
tee
s, and i
nform
ation
incorporated
by r
eferenc
e
, constitutes
the co
rpo
rate gover
nan
ce repo
r
t of
Ca
rclo plc.
Dear shareholder
On b
eha
lf of th
e Boa
rd, I am pl
ea
sed to
present Carc
lo plc’
s corporate go
vernanc
e
rep
or
t for th
e year en
ded 31Ma
rch 20
22.
This re
por
t se
ek
s to provid
e sha
reho
lde
rs
and ot
her s
ta
kehol
der
s wi
th a clea
r
und
er
st
and
ing of h
ow we discha
rge o
ur
govern
ance du
tie
s and a
pp
ly the
pri
ncipl
es of g
ood g
overna
nce se
t down in
the U
K Cor
por
ate Gover
nance Co
de 201
8
(“the Code”)
.
Sin
ce joini
ng the B
oa
rd in Augu
st 202
0,
Ihave obs
er
ved th
e Boa
rd’s desi
re to
mai
nta
in an
d contin
uall
y stre
ngt
hen
ap
prop
riate s
ta
nda
rds o
f corp
or
ate
gov
ernance thr
oughout the Gr
oup.
TheB
oard i
s full
y supp
or
t
ive of the
pri
ncipl
es la
id dow
n in the Co
de a
nd
contin
ues to rev
iew the s
ys
tems, p
olici
es
and p
roce
dures t
hat sup
por
t the G
roup’s
gov
ernance practices.
We acknowl
edg
e that go
od g
overna
nce
is fu
ndam
ent
al to th
e succe
ss of th
e
Grou
p and i
t is woven into th
e str
ategy
and decisi
on-making processes
throughout
the business
. The t
one from
the to
p is ca
sc
ade
d from t
he Bo
ard to th
e
E
xecut
ive team a
nd out to t
he bu
sine
ss.
The co
mpo
siti
on of th
e Boa
rd is rou
tine
ly
a
sse
sse
d to ens
ure that we have the
rig
ht bal
ance of s
kil
ls, ex
pe
rie
nce an
d
kn
owle
dge re
quire
d to achieve ou
r
str
ategi
c goa
ls. W
ithi
n this a
ss
es
sment
the B
oard g
ives du
e consi
der
atio
n to the
ben
eﬁt
s of wid
enin
g Boa
rd diver
si
t
y in
terms of back
ground,
ethnicity
, age,
experience, gender
and perspec
tive
. All
ap
point
ment
s are m
ade o
n mer
it al
one.
As i
n pri
or year
s, an i
ntern
al eva
luatio
n
of the B
oa
rd and ea
ch of its C
ommi
t
tees
ha
s be
en und
er
t
aken. The co
nclu
sion
s
from t
he eva
luatio
n conﬁr
med t
hat the
Boa
rd conti
nue
s to func
tio
n ef
fec
tivel
y
a
s a whol
e an
d in Comm
it
tee, an
d that al
l
Director
s properly discharge their duties.
Nonetheless, the
Board also ide
ntiﬁed
area
s to focu
s on in th
e comin
g year
,
including:
continued improvement in
the
infor
matio
n provid
ed to th
e Boa
rd so i
t is
bet
te
r abl
e to as
se
ss th
e Group’s
operational performance
; incr
easing
focus o
n med
ium an
d lon
g-ter
m
str
ategy; i
mprovi
ng the a
s
ses
sme
nt of
sen
ior l
eader
sh
ip in th
e Group a
nd
develo
pme
nt of be
tte
r succe
ssio
n
pla
nnin
g; and mo
re inter
act
ion
bet
we
enNo
n-E
xe
cutive a
nd E
xecu
tive
Dire
cto
rs b
et
wee
n Boa
rd mee
ting
s.
Inlin
e wit
h bes
t pr
act
ice, alth
oug
h not
arequ
irem
ent for a com
pany of t
his
size,cons
ider
atio
n is be
ing give
n to
und
er
t
ak
ing ne
x
t year
’s e
val
uatio
n
usin
gan e
x
tern
al con
sult
ant.
As i
n previo
us year
s, a
ll Dire
cto
rs a
re
prop
os
ed for e
lec
tio
n or re
-el
ec
tio
n
atthe A
nnua
l Gen
era
l Me
etin
g of
theCo
mpa
ny
.
We remain co
gnis
ant o
f the s
tron
g
relati
ons
hip be
twe
en eth
ics a
nd
govern
ance a
nd th
e role t
he Bo
ard pl
ays
in demonstr
ating ethical leadership.
Further information on ethics is
cont
ain
ed in ou
r resp
ons
ibl
e ope
rati
ons
rep
or
t on p
age
s 1
8 to 25.
Peter Sla
bb
er
t a
nd David T
o
oh
ey
indi
cated t
heir i
ntentio
n not to se
ek
re-
ele
ct
ion a
s No
n-
E
xecuti
ve Dire
ctor
s
af
ter b
oth se
r
ving t
he Gro
up over the l
as
t
six yea
rs
, and t
hey retire
d from t
he Bo
ard
on 31 March 202
1 an
d 30 Ap
ril 202
1
respec
tively
.
We were plea
se
d to be a
ble to re
crui
t Eric
Hutch
inso
n and Fra
nk Do
ore
nbo
sch to
the B
oard a
lo
ngsi
de Jo
e Oatl
ey
, our
Senior Independent
Non-E
xec
utive
Dire
cto
r
, b
rin
ging a wea
lth of b
usi
nes
s
and s
pe
ciﬁc in
dus
tr
y ex
pe
rie
nce that
will b
e inval
uab
le a
s we exe
cute our
str
ategi
es go
ing for
ward. Er
ic wa
s
appoin
ted
in J
anuary 2
0
21 an
d became
Chair o
f the Au
dit Com
mit
te
e in
Ma
rch20
21, tak
ing over fro
m Peter
Sla
bb
er
t. Fran
k wa
s app
ointe
d in
Febr
uar
y 202
1
, and to
ok over a
s Cha
ir
of the Re
mune
ratio
n Comm
it
tee in
Apr
il202
1 followi
ng David
’
s dep
ar
t
ure.
CHAIR’
S
INTR
ODUCTION
The Board is fully supportive of the principles laid
down in the Code and continues to r
eview the
systems, policies and procedur
e
s that support the
Group
’
s governance practic
es.
Nick Sanders
Executive Chair
42
Ca
rclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
CHAIR’
S
INTR
ODUCTION
continued
Dear shareholder
continued
In Ma
rch 20
21 Phil White j
oine
d the
Boa
rda
s the p
erm
ane
nt CFO af
ter a
sho
r
t pe
rio
d as i
nteri
m CFO
. Phil a
lso
bri
ngs a wea
lth of k
now
led
ge an
d
ex
pe
rien
ce to the b
usin
ess a
nd he i
s
work
in
g alo
ngsi
de me o
n dri
ving
imp
rovement
s acros
s the G
roup.
Wit
h ef
fec
t fro
m 6 June 2022,
FrankD
oo
renb
osch wa
s a
ppo
inted a
s a
consu
lt
ant to th
e Grou
p for a pe
rio
d of
upto t
welve m
onths, a
nd acco
rding
ly
be
cam
e an E
xe
cutive D
irec
tor for t
hat
per
io
d. F
ra
nk wil
l focus o
n as
sis
ting t
he
Carclo T
echnical Plastics division to
imp
rove its op
er
ationa
l ef
fec
tive
nes
s in the
face of r
api
dly in
crea
sing d
ema
nd coup
led
wit
h current s
upp
ly chai
n chall
eng
es.
It is inte
nde
d that Fran
k will rever
t back
to bei
ng a No
n-E
xe
cuti
ve Direc
tor of t
he
Comp
any an
d resum
e his p
osi
tion o
n the
Boa
rd Com
mit
tee
s an
d as Cha
ir of th
e
Remun
erat
ion Co
mmit
te
e as s
oo
n as t
he
consu
lt
anc
y pe
rio
d ha
s ende
d. Jo
e
Oatley ha
s b
een re
-ap
poi
nted Cha
ir of
the Re
mune
ratio
n Comm
it
tee in t
he
int
erim
period.
I am p
lea
sed t
hat af
ter a p
er
iod of
dif
ﬁcu
lt
y for th
e Group, wehave recru
ited
a stro
ng new B
oa
rd with ve
r
y relev
ant
ex
pe
rien
ce to guid
e the b
usin
ess
for
w
ar
d.
Our co
rp
orate g
overna
nce rep
or
t is s
et
outo
n pag
es 4
1 to 75 and inco
rp
orate
s the
Audi
t and R
isk Co
mmit
te
e rep
or
t on p
age
s
50 to 53, the N
omi
natio
n Commi
t
tee
rep
or
t on p
age
s 54 to 56 a
nd th
e Dire
cto
rs’
remun
er
ation re
por
t on pa
ges 57 to 75.
This s
ec
tio
n of the a
nnua
l repo
r
t set
s ou
t
how we ma
nage t
he Gro
up an
d compl
y wit
h
the p
rovisio
ns of th
e Code. O
ur State
ment
of Comp
lia
nce wit
h the U
K Corp
or
ate
Gover
nance Co
de is s
et ou
t on pag
e 42
.
Nick Sanders
E
xecutive Chair
29 June 2022
Compliance with the 2018 Corporat
e Gov
ernance Code
The Co
mpa
ny is subj
ect to t
he pr
incip
les a
nd p
rovisio
ns of th
e 20
18 UK Corp
or
ate Governa
nce Co
de (“the Co
de”), a copy of
whichi
s availa
ble at w
w
w.
frc.org.uk.
The Co
mpa
ny has co
mpli
ed wi
th the Co
de th
roug
hout t
he year w
ith th
e except
ion of Co
de Provi
sion
s 9 (
sep
ar
ate role
s of Chaira
nd
CEO
) an
d 21 (
e
x
tern
al Bo
ard eva
luati
on ever
y th
ree year
s) and fur
the
r det
ail
s are cont
ai
ned w
ithi
n this re
por
t on pa
ges4
6an
d 4
7
.
Principle
How Carclo has applied it
Principle 0
1
:
Board leadership and C
ompany pu
rpose
The B
oa
rd is co
lle
ct
ivel
y res
po
nsi
ble fo
r lea
din
g an
d cont
roll
ing a
ll ac
ti
vit
ie
s of the G
rou
p,
wit
hover
all a
uth
or
it
y for e
st
ab
lis
hin
g the C
omp
any
’s purp
os
e an
d over
see
ing t
he
ma
nage
me
nt an
d con
duc
t of th
e Gro
up’s bus
ine
ss, s
tr
ateg
y and d
evel
op
ment
.
Read h
ow Ca
rclo p
lc ha
s a
ppl
ied a
nd
dis
cus
se
d
Principle 0
1
of the cor
po
rate
gover
na
nce fr
am
ewo
rk in t
he
statement of
corporate
gov
ernance
on
pag
es 4
6 to 49
.
Principle 0
2:
Division of responsibilities
Ord
ina
ril
y th
e Boa
rd com
pr
ise
s t
wo E
xecu
tive D
ire
ct
or
s an
d thre
e ind
ep
end
ent N
on
-E
xe
cuti
ve
Dir
ec
tor
s (“NED
s”). The B
oa
rd ha
s an E
xe
cuti
ve Cha
ir
. The key ro
le
s and r
esp
on
sib
ili
tie
s of th
e
me
mbe
rs o
f the B
oa
rd, inc
lud
ing th
e di
visi
on of r
esp
on
sib
ili
tie
s bet
we
en th
e E
xecu
tive Ch
air a
nd
Se
nio
r Ind
ep
end
ent N
on
-E
xe
cuti
ve Dir
ec
tor, are dis
cus
se
d on pa
ge 4
6. As p
revi
ous
ly a
nno
unce
d,
on 6 Ju
ne 2022, Fran
k Do
ore
nbo
sch t
ook u
p a tem
por
ar
y c
ons
ult
an
cy ro
le fo
r the G
rou
p an
d as a
res
ult i
s cons
ide
red t
o be wo
rk
ing i
n an e
xecu
tive c
ap
acit
y fo
r the d
ura
tio
n of that co
ns
ult
an
cy
.
Read h
ow Ca
rclo p
lc ha
s a
ppl
ied a
nd
dis
cus
se
d
Principle 0
2
of the cor
po
rate
gover
na
nce fr
am
ewo
rk in t
he
statement of
corporate
gov
ernance
on
pag
es 4
6 to 49
.
Principle 0
3:
Composition suc
cession and e
valuation
The B
oa
rd ha
s for
ma
lly d
ele
gate
d au
tho
rit
y to t
he N
omi
nati
on Co
mmi
t
tee to a
ss
is
t the
Bo
ardin s
ati
sf
y
ing i
ts re
sp
ons
ibi
lit
ies r
elat
ing to t
he co
mpo
sit
io
n and m
ake
-up of t
he B
oar
d
an
d it
s Comm
it
te
es.
Read h
ow Ca
rclo p
lc ha
s a
ppl
ied a
nd
dis
cus
se
d
Principle 0
3
of the co
rp
or
ate
gover
na
nce fr
am
ewo
rk in t
he
Nomination
Committee report
on
pag
es 5
4 t
o 56
.
Det
a
ils of t
he m
etho
do
lo
gy us
ed i
n the
2021
Evaluation of
Board effect
iveness
ca
n be fo
und o
n
pag
e 56
.
Principle 04
:
Audit, risk
and int
ernal control
The B
oa
rd ha
s over
al
l resp
on
sib
ili
ty f
or en
sur
ing t
hat th
e Gro
up ma
int
ai
ns a s
oun
d sys
tem o
f
ri
sk ma
nag
eme
nt an
d inte
rna
l con
tro
l. The B
oa
rd ha
s for
mal
ly de
le
gate
d spe
ciﬁ
c res
pon
sib
ili
tie
s
for au
di
t, ris
k ma
nag
eme
nt an
d ﬁna
ncia
l con
tro
l to the Au
di
t and R
is
k Comm
it
te
e. The B
oar
d
con
sid
er
s an
d dete
rmi
ne
s the p
rin
cip
al r
isk
s fa
ced by th
e Com
pa
ny
, a
nd a
lso c
ond
uc
ts a
n
an
nua
l revie
w of th
e ef
fec
ti
vene
ss of t
he r
isk ma
na
gem
ent a
nd in
ter
nal co
ntro
l sy
ste
ms.
Read h
ow Ca
rclo p
lc ha
s a
ppl
ied a
nd
dis
cus
se
d
Principle 04
of the c
orp
or
ate
gover
na
nce fr
am
ewo
rk in t
he
Audit and
Risk Committee report
on
pag
es 5
0 to 53
.
Principal risks
faced by t
he Co
mpa
ny ca
n
be fo
und o
n
pa
ge
s 31 to 38
.
Principle 05
:
Remuneration
The Remuneration Committee formally assist
s the Board in
discharging its responsibilities
inre
lati
on to E
xe
cuti
ve Dir
ec
tor re
mun
era
tio
n.
Read h
ow Ca
rclo p
lc ha
s a
ppl
ied a
nd
dis
cus
se
d
Principle 05
of the c
orp
or
ate
gover
na
nce fr
am
ewo
rk in t
he
Directors’
remuneration
report
on
p
age
s 57 to 75
.
The B
oa
rd’s
Remuneration Policy
ca
n be
foun
d on
p
ag
es 59 to 6
6
.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
43
Carclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
Our Board
Ke
y responsibilities:
The Bo
ard is co
lle
ct
ively re
spo
nsib
le for t
he ma
nage
ment of t
he Com
pany
. T
he Bo
ard’s main r
ole is to
create lon
g-term v
alu
e for sha
reho
lde
rs by p
rovidin
g entre
pren
eur
ial a
nd pr
ude
nt lead
er
ship of t
he Com
pany
. I
t doe
s this by
set
ti
ng the C
ompa
ny’s strate
gic a
ims a
nd over
see
ing th
eir d
eliver
y
, ensu
rin
g that the n
ece
ssa
r
y ﬁna
ncia
l and oth
er re
source
s
are ava
ilab
le, and by m
aint
ain
ing a b
ala
nced a
ppro
ach to ri
sk wit
hin a fr
am
ework of e
f
fec
tive contro
ls.
Board Committees
Ke
y responsibilities:
The Bo
ard ha
s e
st
abl
ishe
d Comm
it
tee
s which a
re res
pon
sibl
e for au
dit, re
mune
ratio
n, and a
pp
ointm
ent
s
and s
ucces
sion. E
ach Comm
it
tee p
lays a vit
al ro
le in h
elpi
ng the B
oa
rd to ensu
re that hig
h st
and
ards o
f corp
orate g
overna
nce
are maintained throughout the Group.
Audit and Risk
Committee
Ke
y responsibilities:
The Au
dit a
nd Ris
k
Comm
it
tee revi
ews th
e
ef
fec
tiven
es
s of the
Grou
p’
s inter
nal con
trol
sys
tem, th
e scop
e of
work u
nde
r
ta
ken by the
inter
nal au
dito
r and i
ts
ﬁndi
ngs, t
he Gro
up’
s
account
s an
d the s
cope
of wor
k unde
r
ta
ken by
the e
x
tern
al au
ditor
.
Review
s are un
der
t
aken
regu
lar
ly an
d cover each
account
ing year a
nd th
e
per
io
d up to the d
ate of
ap
proval of t
he accou
nts.
Nomination
Committee
Ke
y responsibilities:
Mon
itor
s an
d review
s the
com
positio
n and
balanc
e
of the B
oa
rd and i
ts
Comm
it
tee
s to ensu
re
Ca
rclo ha
s the r
ight
struc
ture,
skills, diversit
y
and e
x
per
ien
ce in place
for th
e ef
fec
tive
man
agem
ent of th
e
G
ro
up.
Under
takes
the
man
agem
ent of B
oard
effec
tiveness reviews.
Reviews
management
training an
d succession
pla
nnin
g in res
pec
t of th
e
Comp
any’s seni
or
executives.
R
emuneration
Committee
Ke
y responsibilities:
Dete
rmin
es th
e
remun
er
ation fo
r the
Chair, Execu
tive
Dire
cto
rsa
nd cer
ta
in
senior management
.
Over
se
es C
arclo’s overall
remun
er
ation p
oli
cy
,
st
rateg
y and
implement
ation including
the alignment of
incentives with
reward
and cu
lture a
nd t
ak
ing
into accou
nt emp
loyees’
pay and r
eward
s when
set
ti
ng the p
oli
cy for
Dire
c
tor
s’ remun
erat
ion.
Group Ex
ecutive
Committee
Ke
y responsibilities:
The Group Executive
Commi
ttee com
prises
the E
xe
cutive D
irec
tor
s
toge
ther w
ith th
e head
s
of eac
h business division.
The Co
mpa
ny Secret
ar
y
ac
ts a
s Se
creta
r
y to the
Co
mm
it
te
e.
Repr
esentat
ives
from
Fina
nce, IT and H
R al
so
at
tend t
he Com
mit
te
e
meetings.
The p
urp
ose o
f the
Comm
it
tee is to a
s
sis
t
the E
xe
cutive Cha
ir in
thep
er
for
ma
nce of
his/her duties within
theb
oun
ds of th
eir
authorit
y
,including:
•
the dev
elopment and
implementa
tion of
st
rateg
y
, op
er
ation
al
pla
ns, po
licie
s,
pro
cedure
s and
budgets;
•
th
e moni
tori
ng of
ope
rati
ng an
d ﬁnan
cial
per
formance
;
•
th
e as
se
ssm
ent an
d
contro
l of ris
k;
•
the prior
itisation and
all
ocat
ion of
resour
ces
; and
•
monitor
ing
comp
etit
ive forces in
each are
a of
operation
.
44
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
B
O
ARD OF
DIRECTORS
Nic
k wa
s ap
poi
nted a N
on
-E
xe
cuti
ve
Dir
ec
tor a
nd Cha
ir-e
le
ct of t
he
Com
panyf
rom 18 Aug
us
t 202
0.
On3
0Se
ptemb
er2020, Nick wa
s
ap
poi
nted a
s N
on-
E
xe
cuti
ve Chai
r
.
On5O
cto
be
r 202
0, Nickw
as a
pp
oin
ted
a
sEx
ecut
ive Cha
ir of t
he Co
mpa
ny
.
Phi
l wa
s ap
poi
nted Ch
ief Fi
nan
cia
l Of
ﬁ
cer
on 1 M
arch 2021
.
Jo
e wa
s ap
poi
nted a N
on
-E
xe
cut
ive
Dir
ec
tor of t
he Co
mpa
ny fro
m Jul
y 201
8.
He s
er
ve
d as Ch
air o
f the Re
mun
er
atio
n
Com
mit
te
e fro
m that d
ate unt
il Ap
ri
l 20
20.
Jo
e ser
ve
d a
s inte
rim N
on
-E
xe
cuti
ve Cha
ir
fro
m Ap
ril to S
ept
emb
er 2020 and wa
s
appointed as t
he Senior I
ndependent
Dir
ec
tor o
n 30 S
epte
mbe
r 202
0. Joe
wa
sre-
app
oi
nted i
nter
im Cha
ir of t
he
Remu
ner
ati
on Co
mmi
t
tee o
n 6 Jun
e 20
22.
Skills and experience
Nic
k is an e
ngi
ne
er by tr
ain
ing a
nd h
as ove
r
20 year
s’ bo
ard e
xp
er
ien
ce in U
K an
d
inte
rnat
ion
al b
usi
nes
se
s. Hi
s ear
ly c
are
er
wa
s sp
ent in a v
ar
iet
y of te
chn
ica
l an
d
op
era
tio
nal ro
le
s at Rol
ls-
Royce an
d Luca
s
Aero
sp
ace a
nd si
nce 2002 he ha
s b
ee
n
leading turnaround situations in
aerospace
an
d man
ufa
ct
ur
ing b
usi
nes
se
s. In t
his
ca
paci
t
y he s
er
ved a
s E
xe
cuti
ve Cha
irm
an
of Ga
rdn
er Ae
ros
pace fo
r nin
e year
s unt
il
201
9
. Ni
ck wa
s al
so a fo
und
ing p
ar
t
ner o
f
Bet
te
r Ca
pit
a
l LLP (advis
or
s to th
e
turnaround funds)
.
External appointments
Se
r
tec G
rou
p – Non
-E
xe
cut
ive Cha
irm
an
Do
nca
s
ter
s – No
n-
E
xecu
tive D
ire
cto
r
Walker P
reci
sio
n Hol
din
gs L
imit
ed –
No
n-
Ex
ecut
ive Cha
ir
man
Committees
N
Skills and experience
Phi
l is a Ca
mb
rid
ge gr
ad
uate Cha
r
ter
ed
Accou
nt
ant a
nd Cha
ir of t
he In
st
itu
te for
T
u
rna
rou
nd No
r
th
-Ea
s
t reg
ion. O
ver t
hre
e
decades he h
as held permanent and
inte
rim CFO, FD an
d se
nio
r rol
es acr
oss
lis
ted a
nd p
ri
vate com
pa
nie
s incl
udi
ng
Mp
ac pl
c, Opt
ar
e plc, U
K Coa
l pl
c, the
Uni
pa
r
t Gro
up, gsk p
lc, Well
a, Ja
cuz
zi a
nd
Shefﬁeld Forgem
asters.
Skills and experience
Jo
e is cur
rent
ly a
lso a N
on
-E
xe
cuti
ve
Dir
ec
tor at Wate
s Gro
up Lim
ite
d an
d
Cent
ur
ion G
roup L
imi
ted, a
nd is a m
em
ber
of th
e Adv
iso
r
y Bo
ard of B
uch
ana
n.
Previ
ou
sly h
e wa
s Gro
up Chi
ef E
xecu
tive o
f
Ca
pe p
lc, a gl
oba
l F
TSE-li
ste
d com
pa
ny
sp
ecia
lis
ing i
n the p
rovi
sio
n of cri
tic
al
ind
us
tri
al s
er
vi
ces to t
he en
erg
y an
d natur
al
res
our
ces s
ec
tor
s, fr
om 201
2 to 201
8. Pri
or
to joi
nin
g Ca
pe h
e wa
s Chie
f Ex
ecut
ive of
Ha
mwor
t
hy plc, a g
lob
al o
il an
d ga
s
engineer
ing business, which he joined in
2007 and l
ed u
ntil i
ts t
ake
over by Wär
ts
ilä in
201
2. Joe sp
en
t the ea
rl
y pa
r
t of his c
ar
eer i
n
the e
ngi
ne
eri
ng s
ec
tor in a b
roa
d ra
ng
e of
rol
es, i
nclu
din
g Ma
nagi
ng D
ire
cto
r of a
num
ber o
f dif
fe
ren
t bus
ine
ss
es, St
rate
gy
Developmen
t and M&A.
External appointments
Wates Gr
oup Li
mit
ed –
No
n-
Ex
ecut
ive D
irec
to
r
Cent
ur
ion G
roup L
imi
ted –
No
n-
Ex
ecut
ive D
irec
to
r
Buc
han
an – me
mb
er of A
dvi
sor
y B
oa
rd
Committees
N
R
A
Nick Sanders
E
xec
ut
ive
Chair
Phil White
Ch
ief Fi
na
nc
ia
l
Ofﬁcer
Joe Oatley
Senior Ind
ependent
Non‑E
xecutiv
e Director
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
45
Carclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
Eri
c wa
s ap
poi
nted a N
on
-E
xe
cut
ive
Dir
ec
tor of t
he Co
mpa
ny on 7 Ja
nu
ar
y 2021
an
d Chai
r of th
e Aud
it Com
mit
t
ee fro
m
1Ma
rch 202
1.
Fran
k wa
s ap
po
inte
d a Non
-E
xe
cut
ive
Dir
ec
tor of t
he Co
mpa
ny on
1Febr
ua
r
y202
1 an
d Chai
r of th
e
Remu
ner
ati
on Co
mmi
t
tee f
rom
30A
pri
l202
1
.
Wi
th ef
fe
ct f
rom 6 J
une 2022, Fra
nk wa
s
ap
poi
nted a
s a co
nsu
lt
ant to t
he G
roup fo
r
a pe
rio
d of up to t
we
lve m
onth
s, an
d
acco
rdin
gly b
ec
am
e an E
xe
cuti
ve Dir
ec
tor
for th
at pe
rio
d. Fra
nk wi
ll focu
s on a
ss
is
tin
g
the C
arc
lo T
e
chn
ica
l Pla
s
tic
s div
isi
on to
imp
rove it
s op
er
atio
nal e
f
fec
tive
ne
ss in t
he
fac
e of ra
pid
ly in
crea
sin
g de
man
d cou
ple
d
wit
h cur
rent s
upp
ly cha
in cha
ll
eng
es. I
t is
inte
nde
d tha
t Frank w
ill r
ever
t ba
ck to
be
ing a N
on-
E
xe
cuti
ve Dire
c
tor of t
he
Com
pany a
nd re
sum
e hi
s pos
iti
on o
n the
Bo
ard Co
mmi
t
tee
s an
d as Ch
air o
f the
Remu
ner
ati
on Co
mmi
t
tee a
s so
on a
s th
e
con
sul
ta
nc
y per
io
d ha
s end
ed.
Skills and experience
Following graduation Eric qualiﬁed as a
Cha
r
tere
d Cer
t
iﬁe
d Accou
nt
ant a
nd sp
ent
his ea
rl
y ca
ree
r in ad
vis
or
y a
nd in
dus
tr
ia
l
roles before joining Spirent Communication
pl
c, the Lo
ndo
n lis
ted D
ata
Com
muni
cat
ion
s sp
ecia
lis
t. At Sp
ire
nt he
sp
ent 13 years a
s CFO a
nd th
en si
x yea
rs a
s
CEO befo
re ret
iri
ng in 2020, duri
ng wh
ich
tim
e he over
s
aw the t
ra
ns
for
mati
on of t
he
business and a signiﬁcant strengthening of
it
s ba
lan
ce sh
eet. H
e al
so s
er
ve
d as a
Me
mbe
r of th
e Fina
nci
al Re
por
tin
g Revi
ew
Pan
el fo
r nin
e year
s.
Committees
A
R
N
Skills and experience
Fran
k ha
s sp
ent ne
ar
ly hi
s who
le ca
re
er in
the p
la
st
ics i
ndu
st
r
y wit
h RPC G
rou
p pl
c, a
leading
manufacturer o
f ﬁlm
and packa
ging
pro
duc
t
s. He h
as h
el
d rol
es in o
pe
rati
ons
,
ﬁna
nce, s
ale
s an
d ma
rketi
ng, a
nd bu
sin
es
s
imp
rovem
ent a
s wel
l a
s man
agin
g
op
era
tio
ns in s
ever
al lo
cat
io
ns acro
ss
Europ
e an
d As
ia. Fro
m 201
6 to 201
9 h
e wa
s
CEO of RP
C bpi g
roup. Fra
nk ha
s b
ee
n
ins
tr
ume
nt
al in s
ever
al t
urn
aro
und
s in th
e
plastic packa
ging busin
ess sector
.
External appointments
Thi
ngt
ra
x Lim
ited – N
on
-E
xe
cut
ive Di
rec
tor
Imp
ac
t Rec
yclin
g Lim
ited –
No
n-
Ex
ecut
ive D
irec
to
r
Pla
s
tic S
cien
ce by De
sig
n –
Managing Par
tner
An
gie w
as a
pp
oin
ted a
s Gro
up Co
mpa
ny
Se
cret
ar
y i
n Oc
tob
er 201
9 an
d is a fel
low of
The C
har
te
red G
over
na
nce In
st
itu
te. Ang
ie
ha
s prev
iou
sl
y hel
d a num
ber o
f De
put
y
Com
pany S
ecr
eta
r
y ro
les fo
r lis
te
d
comp
ani
es.
Eric Hutchinson
Independent
Non‑E
xecutiv
e Director
F
r
ank Doorenbosch
Consu
ltant
and
Executive Director
Angie W
ak
es
Company
Secretary
Key:
A
Audi
t and R
isk Co
mmit
te
e
N
Nomination Committee
R
Remuneration Committee
Comm
it
tee Ch
air
46
Carclo plc
Annu
al rep
or
t a
nd a
ccount
s 2022
UK Corporat
e Gov
ernance Code
The Co
mpa
ny remai
ns comm
it
ted to t
he
high
es
t st
and
ards o
f corp
orate
govern
ance fo
r which th
e Boa
rd is
account
ab
le. The Co
mpa
ny has co
mpli
ed
throughout the ye
ar with the main
pri
ncipl
es a
nd provi
sion
s of the 201
8 UK
Cor
por
ate Gover
nance Co
de (“the Co
de”)
iss
ued by th
e Fina
ncial Re
por
ting C
ouncil
except fo
r Cod
e Provisio
ns 9 a
nd 21
,
ex
pla
ine
d on pa
ge 42
. The Co
mpa
ny
contin
ues to m
aint
ain a
nd rev
iew it
s
sys
tems
, proce
sse
s an
d pol
icies to
supp
or
t i
ts su
st
ai
nabi
lit
y an
d govern
ance
practices. This statement, together with
the D
irec
tor
s’ remun
erat
ion re
por
t,
des
crib
es h
ow the Com
pany ha
s a
ppli
ed
the ma
in pr
inci
ple
s and p
rovisi
ons of
theCo
de.
The Board
The B
oard cu
rrent
ly comp
ris
es th
e
E
xecut
ive Chair
, the Ch
ief Fina
ncia
l
Of
ﬁ
cer
, a
n E
xecu
tive Dir
ec
tor an
d two
Non
-E
xecut
ive Direc
tor
s.
David T
o
ohey s
tepp
ed d
own a
s a
Non
-E
xe
cutive D
irec
tor o
n 30 Ap
ril 202
1
.
In accord
ance w
ith th
e Comp
any’s
ar
t
icles o
f as
so
ciation a
nd deve
lop
ing
be
st gover
nan
ce pra
cti
ce, all Di
rec
tor
s
are to s
eek re
-e
lec
tio
n on a
n
annualbasis.
The b
iogr
ap
hies o
f all th
e Dire
cto
rs
ap
pear o
n pag
es 4
4 an
d 45.
The Cha
ir ha
s pr
ima
r
y resp
ons
ibil
it
y for
lead
ing th
e Boa
rd an
d ensu
rin
g its
ef
fec
tiven
es
s. He se
ts th
e Boa
rd’s
age
nda a
nd ens
ures, to
geth
er wi
th the
Senior Independent
Non-E
xec
utive
Dire
cto
r
, t
hat all D
irec
tor
s ca
n make a
n
effec
tive c
ontribution.
Whi
lst t
he Chai
r is pe
r
form
ing th
e role o
f
Executive
Chair
, the
Senior Independen
t
Non-E
xecutive Director assist
s with
these responsibilitie
s. The Executive
Chair h
as re
sp
onsi
bili
ty fo
r all o
per
atio
nal
matters and the de
velopmen
t and
imp
lem
entat
ion of G
roup s
trate
gy
approv
ed b
y the Boar
d.
The Cha
ir an
d each No
n-
E
xecuti
ve
Dire
cto
r were in
dep
end
ent on
ap
point
ment a
nd th
e Boa
rd cons
ide
rs
each No
n-
Ex
ecuti
ve Dire
ctor to b
e
ind
epe
nde
nt in accord
ance wi
th th
e
Cod
e. Joe Oatl
ey
, a
s Sen
ior In
dep
end
ent
Non
-E
xe
cutive D
irec
tor
, is avail
abl
e to
sha
reho
lde
rs i
f they have conce
rns w
hich
have not be
en res
olved t
hrou
gh the
nor
mal ch
ann
els of E
xe
cutive Cha
ir
.
The B
oard m
eet
s reg
ular
ly (a
t lea
s
t seven
tim
es each year) an
d the
re is cont
ac
t
bet
we
en me
eting
s to pro
gres
s the
Compan
y’
s busin
ess.
Boa
rd me
etin
gs are u
sua
lly he
ld at
sub
sidia
r
y faci
liti
es at lea
s
t tw
ice a year
.
The
se vi
sit
s inclu
de me
eting w
ith s
ta
f
f
and attending
presentations
from
man
agem
ent, wh
ich ena
ble
s pa
r
ticula
r
focus o
n the re
gion
al con
side
rati
ons
a
sso
ciated wi
th imp
lem
ent
ation o
f the
Gro
up’
s st
rateg
y
.
In th
e ﬁnan
cial year
, t
wo Boa
rd me
etin
gs
were he
ld of
f si
te at CTP in M
itcha
m and
Bru
ntons i
n Mus
selb
urgh. Th
e Boa
rd
inten
ds to ho
ld fur
the
r of
fs
ite Bo
ard
mee
ting
s now that tr
avel res
tri
cti
ons
areea
sin
g.
The B
oard h
as a fo
rma
l sche
dul
e of
mat
ter
s sp
eciﬁc
all
y rese
r
ved to it fo
r
decision
(inc
luding the
dev
elopment o
f
corp
or
ate str
ategy a
nd th
e app
roval of
ann
ual b
udg
ets, m
ajo
r cap
ita
l
exp
enditure and potential ac
quisitions
and d
isp
os
als)
. Brie
ﬁng pa
pe
rs a
re
dis
tri
bute
d by the Se
creta
r
y to al
l
Dire
cto
rs i
n adva
nce of Bo
ard m
eeti
ngs.
All D
irec
tor
s pa
r
tici
pate in a fu
ll indu
ct
ion
pro
cess o
n joini
ng th
e Boa
rd and
subseque
ntly receiv
e training and
bri
eﬁng a
s a
ppro
priate. Th
e Dire
cto
rs a
re
auth
or
ise
d to obta
in in
dep
end
ent adv
ice
a
s requi
red. The B
oa
rd evalu
ation
pro
cess a
lso co
nsid
er
s spe
ciﬁc t
rai
ning
or dev
elopment
needs.
ST
A
TEMENT OF
C
ORPORA
TEGO
VERNANCE
Dur
ing t
he year
, at
tenda
nce by Dir
ec
tor
s at meet
ings o
f the Bo
ard a
nd it
s va
riou
s Comm
it
tee
s wa
s as fo
llow
s:
Board meetings
Remuneration
Audit and Risk
Nomination
N
o.
No.
No.
N
o.
N
o.
No.
N
o.
N
o.
held attended
held attended
held attended
held
attended
N
Sa
nde
rs
7
7 — — — —
5
5
J
Oatley
7
7 9 9 6 6
5
5
P
Whi
te
7
7 — — — — — —
E
Hutch
inso
n
7
7 9 9 6 6
5
5
F
Do
oren
bos
ch
7 7
9 9 6 6
5
5
D
T
oo
hey
1 1 1 1 1 1
2 1
In ad
diti
on, the B
oard h
eld a f
ur
th
er 1
3 adho
c Boa
rd me
eting
s dur
ing th
e year
, at which not a
ll Di
rec
tor
s were req
uired to
be pre
sent.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
47
Carclo plc
Annu
al re
po
r
t and a
ccoun
ts 2022
Conﬂicts of interest
Und
er th
e requi
reme
nts of t
he
Comp
ani
es Ac
t 2006 each D
irec
tor mu
st
se
ek aut
hor
isat
ion b
efore t
ak
ing up a
ny
po
siti
on that may conﬂ
ict w
ith th
e
intere
st
s of the Co
mpa
ny
. The B
oa
rd ha
s
not id
entiﬁ
ed any ac
tua
l conﬂi
ct of
intere
st in re
latio
n to ex
is
ting e
x
tern
al
ap
point
ment
s for ea
ch Dire
ctor w
hich
have bee
n auth
ori
sed by th
e Bo
ard in
accorda
nce wi
th it
s power
s. A re
gis
ter is
mai
nta
ine
d by the Com
pany S
ecret
ar
y
and r
eviewed o
n an a
nnua
l ba
sis.
Board ev
aluation
The Senior
Independent Non-Executiv
e
Dire
cto
r sup
er
vis
ed a
n inter
nal
evalu
ation o
f the Bo
ard’s pe
r
form
ance
and t
hat of it
s pr
incipa
l Com
mit
tee
s.
Inad
diti
on, an eva
luati
on of th
e
per
for
mance o
f indiv
idua
l Di
rec
tor
s
wa
sals
o und
er
t
aken by th
e Seni
or
Independent Dir
ector
.
The eva
luati
on pro
ces
s wa
s ba
sed o
n
aser
ies o
f ques
tio
ns dev
ise
d for the
pur
pos
e an
d circulated to t
he Di
rec
tor
s.
The p
roces
s reviewe
d issu
es su
ch as:
thea
ss
es
sme
nt and m
onito
rin
g of the
Comp
any’s str
ategy
, the mo
nthly B
oa
rd
mee
ting a
gend
a and i
nform
ation ﬂ
ow
,
Boa
rd ef
fec
tive
nes
s, an
d governa
nce.
The
re wa
s als
o a review of t
he rol
e and
per
for
mance o
f the Bo
ard Co
mmit
te
es.
The re
sult
s of th
e evalu
ation we
re
collate
d by the S
enio
r Ind
epe
nde
nt
Non
-E
xe
cutive D
irec
tor a
nd wil
l form t
he
ba
sis of B
oa
rd obje
ct
ives for 2022/23,
including:
•
contin
ued i
mprovem
ent in th
e
infor
matio
n provid
ed to th
e Boa
rd so
it is b
et
ter a
ble to a
ss
es
s the Gro
up’s
operat
ional
performance
;
•
increa
sin
g focus o
n med
ium an
d
lon
g-ter
m str
ateg
y;
•
imp
roving th
e as
se
ssm
ent of se
nio
r
lead
er
ship i
n the Gr
oup an
d
develo
pme
nt of be
tte
r succe
ssio
n
planning; and
•
more i
ntera
cti
on be
twe
en
Non-E
xecutive and Executive
Dire
cto
rs b
et
wee
n Boa
rd mee
ting
s.
The Co
de re
quire
s that the B
oa
rd of a
FTS
E 350 comp
any or a
bove sho
uld ho
ld
an e
x
ter
nall
y facil
it
ated eva
luati
on at
lea
st ever
y thre
e year
s. Du
e to the
numb
er of cha
nge
s on th
e Boa
rd over
the p
eri
od, th
e Boa
rd conclu
ded t
hat
itwou
ld be p
refera
bl
e to car
r
y ou
t a
comp
rehe
nsive inte
rna
l evalu
ation.
Alt
hou
gh not a req
uirem
ent for a
Comp
any of thi
s size, consi
der
atio
n is
bei
ng give
n to unde
r
ta
ki
ng ne
x
t year’s
evaluation using an ex
ternal consultant.
The Nomination Committee recognises
the b
eneﬁ
ts to th
e Grou
p of diver
si
ty i
n
the wo
rk
force a
nd in th
e comp
osi
tion of
the B
oard a
nd su
ppo
r
ts t
he imp
or
t
an
ce
of diver
si
t
y in it
s broa
des
t sen
se. Whi
le
the Co
mpa
ny will cont
inue to m
ake all
ap
point
ment
s on m
eri
t and b
a
sed o
n the
be
st ca
ndi
date for th
e role, it w
ill al
ways
consider suita
bly qualiﬁed applic
ants for
role
s fro
m as w
ide a r
ang
e a
s pos
sibl
e,
wit
h no res
tri
cti
ons o
n age, gen
der
,
religion, ethnic
backgr
ound or current
employment
, but whose c
ompetenc
ies
and k
now
led
ge wil
l enha
nce th
e Boa
rd
and wo
rk
force.
Engagement with the workfor
ce
The B
oard h
as co
mpli
ed wi
th the Co
de
and h
as e
ngag
ed wi
th th
e work
fo
rce.
TheB
oard h
ad previ
ous
ly ado
pted a
pro
cess w
hereby ea
ch of it
s
Non-E
xecutive Directors was de
signat
ed
dire
cto
r to enga
ge wit
h the wo
rk
force at
each of Ca
rclo’s large
st U
K ope
ratin
g
site
s and H
ead O
f
ﬁce. It wa
s not po
ssi
ble
to und
er
t
ake any fur
the
r work
fo
rce
mee
ting
s in the ﬁ
nanci
al year du
e to
CO
VID
-
1
9 res
tri
cti
ons. W
ith t
he lif
t
ing of
travel re
str
ic
tion
s, all o
f the D
irec
tor
s
inten
d to recom
mence wo
rk
force
mee
ting
s andto a
ls
o incor
po
rate the
ov
ersea
s operating
sites.
Board Committees
The B
oard h
as t
hree Co
mmit
te
es,
Nomination, R
emuneration, and Audit
and R
isk
, allof w
hich have term
s of
referen
ce which d
eal sp
eci
ﬁca
lly wi
th
their authorities and duties.
The te
rms of re
ference m
ay be viewe
d on
the Co
mpa
ny’s website. All C
ommi
t
tee
ap
point
ment
s are m
ade by th
e Boa
rd.
Onl
y the Co
mmit
te
e chair
pe
rs
on an
d
mem
ber
s of th
e Comm
it
tee
s are ent
itl
ed
to be pr
ese
nt at Commi
t
tee me
etin
gs,
but ot
her
s may at
tend by invi
tati
on.
Nomination Committee
The Nomination Committee comprises
the N
on-
E
xecut
ive Dire
cto
rs i
nclud
ing
the Executive Chair
.
The Co
mmit
te
e is cha
ired by th
e Sen
ior
Independent Non-Executiv
e Director
and
is res
pon
sib
le for pro
po
sing c
and
idate
s
for ap
poi
ntme
nt to the B
oard, havi
ng
rega
rd to the b
ala
nce an
d st
ruc
ture o
f
the B
oard. I
n consi
der
ing a
n app
oint
ment
the Co
mmit
te
e eval
uates th
e bal
ance of
sk
ills, k
nowl
edg
e and e
x
per
ien
ce of the
Boa
rd an
d prep
are
s a des
cripti
on of th
e
role a
nd c
apa
bili
tie
s requi
red for a
particul
ar cand
ida
te
.
In th
e la
st year t
he ful
l Commi
t
tee
ha
smet ﬁve ti
mes to d
iscus
s Boa
rd
per
formance
.
R
emuneration Committee
The Co
mpa
ny has e
st
ab
lish
ed a
Remuneration Committee consisting
entir
ely of
independent Non-Executiv
e
Dire
cto
rs. T
he Remu
ner
ation Co
mmi
t
tee
met ni
ne tim
es dur
ing t
he year a
nd wa
s
chair
ed by David T
o
ohey u
ntil
30A
pril202
1
, Frank D
oo
renb
osch u
ntil
6Jun
e 20
22, and th
en by Jo
e Oatley
.
The Co
mmit
te
e recom
men
ds to th
e full
Boa
rd the Co
mpa
ny’s polic
y on E
xe
cutive
Dire
cto
r and e
xecu
tive ma
nage
ment
remun
er
ation a
nd cont
inue
s to
determine individual remuner
ation
pack
age
s for E
xecut
ive Dire
cto
rs. T
he
Remuneration Committee is authorise
d
by the Bo
ard to o
bta
in ind
epe
nde
nt
profe
ssio
nal ad
vice if i
t cons
ider
s th
is
nece
ss
ar
y
. T
he Di
rec
tor
s’ remun
erati
on
rep
or
t on p
age
s 57 to 75 sets o
ut th
e
Group’
s remuneration objec
tives and
po
licy a
nd in
clud
es ful
l det
ail
s of
Dire
cto
rs’ rem
une
ratio
n in accord
ance
wit
h the prov
isio
ns of the C
ode.
The Rem
une
ratio
n Comm
it
tee t
akes c
are
to reco
gnis
e and m
anag
e any conﬂi
ct
s of
intere
st wh
en re
ceivin
g view
s from
E
xecut
ive Dire
cto
rs o
r sen
ior
management about its pr
oposals.
48
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
ST
A
TEMENT OF
C
ORPORA
TEGO
VERNANCE
continued
Board Committees
continued
Audit and Risk Committee
The Au
dit a
nd Ris
k Comm
it
tee com
pri
ses
all t
he No
n-
Exe
cuti
ve Direc
tor
s e
xcludin
g
the E
xe
cutive Cha
ir an
d mee
ts not l
ess
than three times annually
. During the
year th
eCommi
t
tee wa
s cha
ired by
EricH
utchin
son, wh
o, bein
g a Char
te
red
Cer
ti
ﬁed Acco
unta
nt an
d form
er gro
up
CFO of Spir
ent Comm
unic
ation p
lc a
nd
acommi
t
tee me
mbe
r of the F
inan
cial
Repo
r
tin
g Review Pa
nel for n
ine year
s,
ha
s both re
cent a
nd rel
evant ﬁna
ncia
l
ex
pe
rien
ce. The Com
mit
tee p
rovide
s a
forum for discussions with the Group
’
s
ex
ter
na
l and in
terna
l aud
itor
s.
Me
eting
sare a
lso at
te
nde
d, by
invit
atio
n,by the E
xecut
ive Chai
r
andCh
ief Fina
ncia
l Of
ﬁ
cer
.
The Au
dit a
nd Ris
k Comm
it
tee ha
s ter
ms
of refere
nce whi
ch follow clo
se
ly the
recom
men
datio
ns of th
e Code a
nd
inclu
de th
e follow
ing ma
in rol
es a
nd
responsibili
ties:
•
to mon
itor th
e ﬁnan
cial re
por
tin
g
pr
o
ce
ss;
•
to review th
e ef
fec
tiven
es
s of the
Grou
p’
s inter
nal ﬁna
ncia
l contro
ls,
inter
nal co
ntrol a
nd ri
sk ma
nage
ment
sys
tems a
nd inte
rna
l aud
it fun
ct
ion;
•
to r
evie
w the inde
pendence and
ef
fec
tiven
es
s of the e
x
terna
l aud
itor
,
inclu
ding t
he provi
sion o
f non-a
udit
ser
vices;
•
to review wh
ist
leb
lowin
g
arrangements whereby emplo
yees
ca
n repo
r
t conce
rns a
bo
ut ﬁna
ncial
irre
gula
ri
ties, h
eal
th an
d safet
y a
nd
enviro
nme
nta
l or le
gal m
atte
rs.
Aded
icate
d whis
tle
blowe
r ema
il
addr
ess ha
s b
een s
et up, det
ail
s of
which a
re incl
ude
d in new em
ployee
indu
ct
ion mate
ria
l and a
dver
ti
sed at
op
erat
ing si
tes;
•
to as
sis
t the B
oa
rd in obs
er
v
ing it
s
resp
ons
ibil
it
y for en
suri
ng that t
he
Grou
p’
s ﬁnan
cial s
yste
ms provi
de
accurate i
nform
ation w
hich is p
rope
rly
reﬂe
cted i
n the p
ubli
she
d account
s;
and
•
to review ha
lf-year and a
nnua
l
accounts befor
e their submission to
the B
oard a
nd revi
ew rep
or
t
s from th
e
external
and in
ter
nal a
udit
ors.
The Au
dit a
nd Ris
k Comm
it
tee re
por
t is
set o
ut on p
ages 50 to 5
3.
Cer
tain operational an
d administrative
mat
ter
s are d
ele
gated by th
e Boa
rd to
the Group Executive Committee.
Group Ex
ecutive Committ
ee
The Group Executive Committee is
chair
ed by the E
xe
cutive Cha
ir an
d
comp
ris
es th
e Chief Fin
ancia
l Of
ﬁ
cer
toge
ther w
ith th
e head
s of each bu
sine
ss
divi
sion. T
he Comp
any Se
cret
ar
y ac
ts a
s
Se
creta
r
y to the Co
mmit
te
e.
Repre
sent
ative
s from Fi
nan
ce, IT and
HRa
lso at
ten
d the Co
mmit
te
e me
eting
s.
The Co
mmit
te
e wa
s re-
es
ta
bli
she
d in
Febr
uar
y 202
0 an
d ha
s met on a m
onth
ly
ba
sis si
nce that date. Th
e Commi
t
tee is
resp
ons
ibl
e to the B
oard fo
r runn
ing
theo
ngoi
ng op
er
ation
s of the
Group
’s
busines
ses.
Accountability and audit
Internal control
The B
oard co
nﬁrm
s that it ha
s
es
ta
blis
hed p
roce
dures t
hat provi
de for
acontin
uou
s proce
ss for i
dent
if
yin
g,
evaluating and managing the principal
mater
ial b
usin
ess r
isk
s fa
ced by the
Grou
p. This pro
cess h
as b
een i
n place
throu
gho
ut the yea
r und
er review a
nd
upto the d
ate of app
roval of t
he an
nual
rep
or
t an
d account
s. Th
e proce
ss ha
s
be
en reviewe
d by the B
oard.
For the yea
r end
ed 31 March 2022, the
Boa
rd ha
s reviewe
d the ef
fe
ct
ivene
ss of
the G
roup’s syste
m of inter
nal co
ntrol
and r
isk m
anag
eme
nt, for wh
ich it ret
ain
s
overall responsibilit
y
.
The Au
dit a
nd Ris
k Comm
it
tee rev
iews
the ef
fe
ct
ivene
ss of th
e Grou
p’
s inter
nal
contro
l sys
tem, th
e scop
e of wor
k
und
er
t
aken by the i
nterna
l aud
itor a
nd
it
sﬁndin
gs, th
e Grou
p’
s account
s an
d
thes
cope of wo
rk un
der
ta
ken by the
ex
ter
na
l audi
tor
. Rev
iews a
re und
er
t
aken
regu
lar
ly an
d cover each account
ing year
and t
he pe
rio
d up to th
e date of ap
proval
of the acc
ounts.
The in
terna
l contro
l sys
tem is d
esi
gne
d
to man
age rat
her t
han el
iminate t
he ri
sk
of failure to
achiev
e business objec
tives.
Alt
hou
gh no sy
ste
m of inter
nal con
trol
ca
n provid
e abs
olu
te as
sur
ance a
gain
st
mater
ial mi
ss
tatem
ent or l
oss, t
he
Grou
p’
s sys
tem is d
esig
ned to p
rovide
rea
sona
bl
e as
sur
ance t
hat prob
lem
s
arei
denti
ﬁed o
n a time
ly ba
sis a
nd d
ealt
with
appropriat
ely
.
The p
rin
cipal feat
ures of t
he Gro
up’
s
inter
nal co
ntrol s
tru
ct
ures c
an be
summarised a
s follows
:
a) Matters reserv
ed for the Board
The B
oard h
old
s regu
lar m
eeti
ngs a
nd
ha
s a numb
er of mat
te
rs re
ser
ve
d for it
s
ap
proval, in
cludi
ng ma
jor ca
pi
ta
l
ex
pe
ndit
ure an
d divi
den
d pol
icy
. The
Boa
rd is re
spo
nsib
le for over
all G
roup
str
ategy a
nd fo
r app
roving a
ll Gro
up
bud
get
s and p
lan
s. Cer
t
ai
n key areas a
re
subj
ec
t to regul
ar rep
or
t
ing to th
e Boa
rd,
including
capital exp
enditure
, c
orporate
ta
xat
ion a
nd le
gal m
atte
rs. T
he Aud
it an
d
Ris
k Commi
t
tee a
ssi
st
s the B
oard i
n its
duti
es re
gardi
ng th
e Group’s ﬁnan
cial
st
ateme
nts a
nd lia
ise
s wit
h the e
x
tern
al
a
u
d
i
t
o
r.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
49
Carclo plc
Annu
al re
por
t a
nd a
ccount
s 2022
b
) Organisational structure
The
re is a clea
rly d
eﬁne
d orga
nis
ationa
l
str
uc
ture w
ith li
nes of re
spo
nsi
bilit
y a
nd
delegation of authorit
y to divisional
executive management. Divisional
resp
ons
ibil
it
y is sup
ple
mente
d by a
Grou
p ﬁnan
ce manu
al wh
ich dic
tate
s
po
licie
s and p
rac
tice
s app
lic
abl
e acros
s
the G
roup a
nd incl
ude
s account
ing,
purcha
si
ng, ca
pit
al e
xp
end
iture a
nd
code
s of bu
sine
ss con
duc
t. The
se a
re
reviewe
d by the inte
rna
l audi
tor an
d are
rep
or
ted to t
he Aud
it an
d Risk
Comm
it
tee. Thi
s proce
ss for
ms pa
r
t of
the Au
dit a
nd Ri
sk Comm
it
tee’s review of
the ef
fe
ct
ivene
ss of th
e Grou
p’
s sys
tem
of inter
nal co
ntrol.
c) Financial control and reporting
The
re is a comp
rehe
nsive G
roup
-wid
e
sys
tem of p
lann
ing a
nd bu
dget
ing wi
th
freq
uent re
po
r
ting o
f resul
ts to each l
evel
of mana
gement as appropria
te
, inc
luding
mont
hly rep
or
t
ing to th
e Boa
rd. Review
s
involvi
ng E
xecu
tive Dir
ec
tor
s and
divisional executives include the
ann
ualid
enti
ﬁcati
on an
d a
sse
ssm
ent
ofbus
ine
ss an
d ﬁna
ncial r
isk
s inh
erent
ineac
h division.
d) Internal auditor
Dur
ing t
he year G
rant T
hor
nton
provid
edth
e out
so
urced inte
rna
l audi
t
fun
cti
on. The i
nterna
l aud
itor re
por
ts to
the Au
dit a
nd Ri
sk Comm
it
tee a
nd wor
ks
to an ag
reed p
rogr
am
me.
R
elations with shareholders
The Co
mpa
ny recogn
ise
s the im
por
ta
nce
of comm
unic
ation w
ith it
s sha
reho
ld
er
s.
Regul
ar me
etin
gs ar
e ordina
ri
ly hel
d
bet
we
en Dir
ec
tor
s of the Co
mpa
ny and
major institutional sh
areholders including
pres
ent
atio
ns af
ter t
he Com
pany’s
preliminary announcements o
f the
hal
f-
year a
nd ful
l-year res
ult
s and
dis
cussi
ons o
n per
fo
rma
nce a
nd
str
ategy
. Maj
or sha
reho
lde
rs h
ave been
advi
sed t
hat the E
xe
cutive Cha
ir an
d the
Non
-E
xe
cutive D
irec
tor
s are ava
ila
ble fo
r
sep
ar
ate discu
ssio
ns if re
quire
d. The
E
xecut
ive Chair h
eld m
eeti
ngs w
ith s
ome
maj
or sha
reho
ld
er
s duri
ng the yea
r
. Th
e
Boa
rd us
es th
e Annu
al Ge
ner
al M
eeti
ng
to comm
unic
ate wit
h pri
vate an
d
ins
titu
tio
nal inves
tor
s an
d welco
mes
their participat
ion. Sh
areholders ha
ve t
he
opp
or
t
unit
y to r
ais
e que
sti
ons wi
th th
e
Boa
rd dur
ing th
e me
eting. D
irec
tor
s al
so
make th
ems
elves ava
ila
ble b
efore a
nd
af
ter th
e AGM to ta
lk infor
ma
lly to
sha
reho
lde
rs, s
houl
d they wi
sh to do s
o.
From the 201
9 AGM, voti
ng ha
s be
en
hel
d on a po
ll ba
si
s. Regul
ar up
dates a
re
als
o now prov
ide
d to reta
il inves
tor
s via
the I
nvestor M
eet
s Com
pany pl
at
form.
Structure of the
Compan
y’
scapital
Det
ai
ls of the s
tr
uc
ture of th
e Comp
any’s
ca
pit
al a
re set ou
t in th
e Dire
cto
rs’ rep
or
t
on pa
ge 78.
By ord
er of the B
oa
rd
Angie W
ak
es
Secretary
29 June 2022
50
Carclo plc
Annu
al re
por
t an
d accoun
ts 2022
Annual statement b
y the
Chairof the Audit and Risk
Committee
The Au
dit a
nd Ris
k Comm
it
tee ha
s
contin
ued i
ts s
crut
iny of the G
roup’s
sys
tem of r
isk ma
nag
emen
t and i
nterna
l
contro
ls, th
e robu
stn
ess a
nd inte
gr
it
y of
the G
roup’s ﬁnancia
l rep
or
ti
ng an
d the
scop
e, ef
fec
tiven
ess a
nd res
ult
s of both
the in
terna
l an
d ex
ter
nal a
udit p
roce
sse
s.
The key res
pon
sibil
itie
s of the
Co
m
m
i
t
t
e
e a
r
e:
•
to review th
e qua
lit
y an
d accept
abi
lit
y
of acc
ounting policies and practices;
•
to keep un
der revi
ew the G
roup’s
ﬁnan
cial a
nd oth
er sys
tem
s and
contro
ls an
d ﬁna
ncial re
por
tin
g
proc
edures
;
•
to pla
n and s
cop
e the a
nnua
l audi
t,
recei
ve audit r
epo
r
ts a
nd revi
ew
ﬁnan
cial s
tate
ment
s ta
ki
ng accou
nt
of accoun
ting p
olici
es ad
opted a
nd
app
lica
ble re
por
t
ing requ
ireme
nts;
•
to review th
e ﬁna
ncial s
tate
ment
s
(hal
f
-y
earl
y and
annu
al re
port)
and
advi
se th
e Boa
rd on wh
ethe
r they gi
ve
a fair
, balanced
and understandable
ex
pla
natio
n of the G
roup’s
per
formance
, business model and
str
ategy over t
he rel
evant p
er
iod;
•
to review th
e inter
nal co
ntrol
s of the
Grou
p and m
oni
tor an
d review th
e
ef
fec
tiven
es
s of the inte
rna
l audi
t
function;
•
to review a
nd up
date the Co
mpa
ny’s
ris
k mana
gem
ent sy
stem
s an
d the
ef
fec
tiven
es
s of thos
e sy
stem
s;
•
to review a
nd cha
llen
ge ac
tio
ns,
jud
geme
nts a
nd key es
timate
s of
man
agem
ent in re
latio
n to ﬁnan
cial
st
atem
ent
s;
•
to review si
gniﬁ
cant l
ega
l an
d
regu
lator
y m
at
ter
s;
•
to review a
ll mat
ter
s a
ss
ociated w
ith
the a
pp
ointm
ent, ter
ms,
remuneration
, independence
,
objectivit
y and ef
fectiveness of the
ex
ter
na
l audi
t proce
ss a
nd to review
the s
cope a
nd re
sult
s of th
e audi
t;
•
to review th
e Anti
-B
rib
er
y an
d
Cor
rupti
on Poli
cy an
d pro
cedure
s
and ot
her p
oli
cies rel
evant to ﬁ
nanci
al
se
curit
y
, compli
ance a
nd bu
sine
ss
et
hi
c
s;
•
to review th
e Comm
it
tee’s terms of
referen
ce and c
ar
r
y out a
n an
nual
review of t
he pe
r
form
ance of t
he
Co
m
m
i
t
t
e
e;
a
n
d
•
to repo
r
t to th
e Boa
rd on how t
he
Comm
it
tee ha
s di
scha
rged t
he
aforementioned respon
sibilities.
The Co
mmit
te
e will co
ntinu
e to keep
its activitie
s under re
view in the ligh
t of
dev
eloping regu
lations
and best practice
.
The Au
dit a
nd Ris
k Comm
it
tee is t
he
bo
dy ap
poi
nted by the B
oa
rd with
resp
ons
ibil
it
y for ca
rr
y
ing ou
t the
fun
cti
ons re
quire
d by the FC
A Dis
clos
ure
and T
ran
spa
renc
y Rule
s D
TR 7
.
1
.3
R.
Composition
The Au
dit a
nd Ris
k Comm
it
tee com
pri
ses
all t
he No
n-
Exe
cuti
ve Direc
tor
s e
xcludin
g
the E
xe
cutive Cha
ir an
d mee
ts not l
ess
than three times annually
. During the
year in qu
es
tion, t
he Comm
it
tee w
as
chair
ed by Eric H
utchin
son, w
ho, bein
g
a Char
te
red Cer
tiﬁ
ed Accoun
ta
nt and
form
er gro
up CFO of Spi
rent
Comm
unic
ation p
lc an
d a mem
ber of t
he
Fina
ncial Re
por
tin
g Review Pan
el for n
ine
year
s, ha
s both re
cent a
nd rel
evant
ﬁnan
cial e
xp
eri
ence. The B
oa
rd is
sati
sﬁe
d that th
e Commi
t
tee a
s a who
le
ha
s releva
nt se
cto
ra
l comp
etence a
s
requ
ired by th
e Code. O
the
r mem
ber
s
also ha
ve r
elevant ﬁ
nancial experience
.
Eric Hutchinson
Ch
air o
f th
e Aud
it a
nd R
isk C
om
mit
te
e
AUDIT AND RISK
C
OMMIT
TEE REPORT
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
51
Carclo plc
Annu
al re
por
t an
d accoun
ts 2022
Meetings
Onl
y Audi
t and R
isk Co
mmit
te
e
mem
ber
s a
re entit
led to at
te
nd a
mee
ting. H
owever
, t
he E
xecut
ive Chai
r
and Ch
ief Fina
ncia
l Of
ﬁ
cer are n
orm
ally
invite
d to at
tend
meet
ing
s.
Si
x meet
ing
s were he
ld dur
ing th
e year
,
t
wo of which we
re sche
dule
d to coin
cide
wit
h the Bo
ard’s review a
nd a
pprova
l of
the G
roup’s interim s
tate
ment a
nd of i
ts
preliminary results announc
ement based
on th
e annu
al rep
or
t a
nd acco
unts.
Internal control and
riskmanagement
The G
roup ha
s a
n est
ab
lis
hed s
yste
m
ofinter
nal co
ntrol a
nd a r
isk
man
agem
ent fr
am
ework t
hat the B
oard
consi
der
s a
ppro
priate i
n the con
tex
t of
the G
roup’s repor
ting r
equi
reme
nts a
nd
strategic objectives. Internal controls and
ris
k mana
gem
ent sy
stem
s coverin
g all
mater
ial con
trols i
nclud
ing ﬁna
ncia
l,
operational
and com
pliance
cont
rols,
aresu
bje
ct to inte
rna
l and e
x
ter
nal
audi
tan
d the ou
tpu
ts of th
e ris
k
management process are actively
challenged
by t
he Board.
On b
eha
lf of th
e Boa
rd, all th
es
e
activities are perio
dically review
ed
bytheAu
dit an
d Ris
k Commi
t
tee a
nd
their effec
tiveness asses
sed through oral
andw
rit
te
n rep
or
t
s from b
oth inter
nal
and extern
al au
dito
rs.
The r
isk ma
nag
emen
t proce
ss ha
s be
en
imp
roved and n
o fai
ling
s have bee
n
ide
ntiﬁe
d this yea
r
.
The Co
mmit
te
e will co
ntinu
e to focus o
n
imp
roving b
oth the i
nterna
l contro
l an
d
ris
k mana
gem
ent envi
ronme
nt in th
e
current ﬁna
ncia
l year
.
A Ris
k As
sura
nce Review i
s cond
ucte
d
ann
uall
y by the fu
ll Boa
rd, in ad
diti
on to a
Ris
k Mana
gem
ent an
d Inter
nal Co
ntrol
Rep
or
t Rev
iew.
Fur
ther d
eta
ils of t
he Gro
up’s emergin
g
and p
rin
cipa
l ris
ks a
nd un
cer
ta
inti
es,
together with the mitigating actions, are
set o
ut on p
ages 31 to 38 o
f the a
nnua
l
rep
or
t a
nd a
ccount
s.
Internal audit
The Co
mmit
te
e review
s annu
all
y the
ar
ran
gem
ent
s for inter
nal a
udi
t and
Gr
ant Th
ornto
n UK LLP con
tinue
d to
provid
e the o
ut
source
d inter
nal a
udit
function throughout the year
.
Thein
terna
l aud
itor m
onito
rs a
nd
rep
or
t
son the s
ys
tem of inter
na
l control
and wo
rk
s to an a
gree
d prog
ra
mme,
alt
hou
gh the e
x
tent of t
he pro
gra
mme
wa
s cur
t
aile
d aga
in thi
s year due to
res
tri
cti
ons a
ris
ing fro
m CO
VID
-
1
9
.
Thein
terna
l aud
it pla
n is se
t in the
conte
x
t of a develo
pin
g as
sur
ance
rep
or
tin
g pro
cess, i
s ﬂexe
d to dea
l
wit
hany chan
ge in th
e ris
k proﬁl
e of
theG
roup a
nd is a
pproved by th
e
Comm
it
tee. The i
ntern
al aud
it
pro
gra
mme wa
s revi
ewed in li
ght of th
e
chan
ges to t
he Gro
up’
s str
ategi
c focus.
Signiﬁcant issues related
toﬁnancial statements
The Committee reviews acc
ounting
pap
er
s pre
pare
d by mana
gem
ent that
provid
e det
ail
s of sign
iﬁca
nt ﬁna
ncia
l
rep
or
tin
g iss
ues, to
geth
er wi
th rep
or
t
s
from t
he ex
te
rna
l aud
itor pr
epa
red in
conju
nct
ion wi
th th
e inter
im and f
ull-yea
r
resu
lts, a
nd a
ss
es
ses t
he foll
owing,
amongst other
matters:
•
the qu
ali
t
y and a
ccepta
bili
t
y of
accounting
policies and prac
tices
;
•
the cla
ri
ty o
f the di
sclo
sures a
nd
comp
lian
ce with ﬁ
nanci
al rep
or
t
ing
standards
and
rele
vant
ﬁn
anci
al and
gov
ernance reporting requir
ements;
•
mater
ial a
rea
s in which s
igniﬁ
can
t
jud
geme
nts o
r es
timate
s have been
ap
plie
d or th
ere ha
s be
en dis
cuss
ion
with the ex
ternal auditor;
•
whet
her t
he an
nual re
por
t, ta
ken a
s a
who
le, is fa
ir
, b
ala
nce
d and
understa
ndable and pr
ovides
the
infor
matio
n nece
ss
ar
y for
sha
reho
lde
rs to a
ss
es
s the Com
pany
’
s
per
formance
, business model and
st
rateg
y; and
•
any cor
resp
ond
ence f
rom reg
ulator
s
in relat
ion to o
ur ﬁnan
cial re
por
tin
g.
The
se mat
ter
s a
re als
o dis
cuss
ed wi
th
the e
x
tern
al au
ditor to
get
her wi
th
any
thi
ng els
e that th
e aud
itor br
ing
s
to the Co
mmi
t
tee’s atte
ntio
n.
In th
e year to 31 March 2022, such issu
es
inclu
ded t
he imp
ac
t of chan
ges in
account
ing s
ta
nda
rds an
d othe
r ﬁnan
cial
repor
ting disclosures.
In ad
diti
on to the a
bove, the Co
mmit
te
e
supp
or
t
s th
e Boa
rd in comp
leti
ng it
s
a
sse
ssm
ent of th
e ado
ption of t
he go
ing
conce
rn ba
si
s of prep
ari
ng th
e ﬁnan
cial
st
ateme
nts. T
he Di
rec
tor
s inclu
de a
Viability Statemen
t conc
erning the
pros
pe
ct
s of the Co
mpa
ny
, a
s requi
red
by the Co
de. Dur
ing th
e ﬁna
ncial yea
r
,
the Co
mmit
te
e reviewe
d the a
ppro
ach
ta
ken by the Di
rec
tor
s in pre
par
ing a
nd
rep
or
tin
g on th
e Via
bili
t
y Statem
ent wi
th
due re
gard fo
r wid
er ma
rket pra
ct
ice and
develo
pin
g guid
ance. A
s a resul
t of that
review
, the Committee wa
s satisﬁed that
the approac
h adop
ted was appropria
te
.
The V
iab
ilit
y St
atemen
t for the 202
1
/22
ﬁnan
cial yea
r is inclu
ded o
n pag
es
39an
d40.
The Co
mmit
te
e al
so cons
ide
red cha
nge
s
in cor
por
ate gover
nance a
nd th
e nee
d for
the a
nnua
l rep
or
t to be f
air, balan
ced an
d
understa
ndable and t
o con
tain sufﬁcient
information on the Group
’
s performa
nce
.
52
Carclo plc
An
nua
l repo
r
t an
d accou
nts 2022
AUDIT AND RISK
C
OMMIT
TEE REPORT
continued
Signiﬁcant issues related
toﬁnancial statements
continued
The signiﬁcant judgements considered
by the Com
mit
te
e whe
re there w
as
poten
tial r
isk o
f mater
ial m
iss
tate
ment
we
r
e:
•
the I
AS 19 pensi
ons p
osit
ion.
TheCo
mpa
ny has a d
eﬁne
d ben
eﬁt
pen
sio
n sche
me wit
h liab
ilit
ies of
ap
proxi
mately £181
.8 mi
llion a
nd
a
sset
s of ap
prox
imate
ly £1
55.8 millio
n
a
s at 31 March 20
22, resu
ltin
g in a net
retire
ment b
ene
ﬁt ob
ligati
on of
£26.0millio
n. The
se num
ber
s are
sensitive to the
main as
sumptions
use
d to ca
lculate th
e deﬁci
t or sur
plu
s
on th
e sche
me an
d the Au
dit a
nd Ris
k
Comm
it
tee s
eek
s conﬁ
rmati
on that
the
se a
ssu
mptio
ns are a
pp
ropr
iate.
The s
chem
e intro
duced a r
ight fo
r
mem
ber
s to Pens
ion In
crea
se
E
xchan
ge (“PIE”) at retire
ment in t
he
year to 31 March 2022 via a D
eed of
Amendment
and comm
unicat
ion to
defer
red m
emb
er
s. Having t
aken
actuar
ial advice
, the Executive
man
agem
ent ha
s ex
ercise
d
jud
geme
nt that, si
mila
r to the
Bri
dgin
g Pensi
on Opt
ion ad
opted l
as
t
year
, 40% of mem
ber
s wi
ll ta
ke the
PIE opt
ion at ret
irem
ent. Thi
s est
imate
impa
ct
s on th
e pa
st s
er
vi
ce credi
t
reco
gnis
ed a
s an e
xceptio
nal i
tem in
the in
come s
tate
ment. T
he Aud
it an
d
Ris
k Commi
t
tee ba
s
es it
s a
ssur
ance
of man
agem
ent
’s judge
ment o
f the
PIE t
ake-
up pe
rcenta
ge es
timate f
rom
the actuaria
l advice
received
;
•
the G
roup b
ala
nce she
et va
lue of
goodwil
l.
The
balanc
e o
f good
will
onth
e Grou
p bala
nce sh
eet a
s at
31March 2022 is £2
2.
0 mill
ion a
nd
theAu
dit a
nd Ri
sk Comm
it
tee s
eek
s
to gai
n as
sur
ance th
roug
h the
Executive management
’
s re
view of
“
recover
ab
le am
ount
” be
ing th
e
high
er of “val
ue in us
e” and “
fai
r valu
e
les
s cos
ts of d
ispo
sa
l” a
s the
ap
proved an
d sel
ec
ted m
etho
d in
tes
ting g
oo
dwill v
aluat
ion fo
r
impa
ir
ment a
nd that t
here a
re no
potent
ial im
pai
rme
nt or re
coverab
ilit
y
is
s
ue
s;
•
man
agem
ent ha
s con
side
red re
cently
acqui
red a
ss
ets awa
iti
ng ful
l sca
le
production f
or ind
icators o
f
impa
ir
ment a
nd ha
s con
clude
d that
the
re is no im
pai
rme
nt;
•
revenue re
cogn
itio
n on cer
t
ai
n
custo
mer co
ntra
ct
s. The Au
dit a
nd
Ris
k Commi
t
tee ha
s sup
por
ted th
e
Group managemen
t’s me
thodology
and a
pp
licat
ion of reven
ue reco
gnit
ion
ap
plyi
ng IFRS 15 guide
line
s acros
s it
s
po
r
t
folio of co
ntra
ct
s;
•
val
uatio
n of invest
ment
s in sub
sid
iar
y
undert
akings in the
Compan
y balance
she
et. Inves
tme
nts in s
ubsi
diar
y
und
er
t
ak
ings tot
al £93.8 milli
on in th
e
Comp
any ba
lan
ce she
et and t
he Aud
it
and R
isk Co
mmit
te
e se
ek
s to gain
assur
ance through the Executive
man
agem
ent
’s review of “recoverab
le
am
ount
” be
ing th
e high
er of “valu
e in
use” a
nd “f
air va
lue l
ess co
st
s to se
ll”
a
s the a
pproved a
nd se
le
cted m
etho
d
in tes
tin
g invest
ment
s in sub
sid
iar
y
und
er
t
ak
ings fo
r impa
ir
ment a
nd that
the
re are no p
otentia
l imp
air
ment o
r
recov
erabili
ty issue
s;
and
•
goin
g conce
rn. The A
udit a
nd Ri
sk
Comm
it
tee su
ppo
r
ted th
e Bo
ard in i
ts
a
sse
ssm
ent of th
e ado
ption of t
he
goin
g conce
rn ba
si
s of prep
ar
ing th
e
ﬁnan
cial s
tate
ment
s. A
s a resul
t of
that revi
ew
, the Bo
ard wa
s s
atis
ﬁed
that th
e app
roach ad
opte
d wa
s
ap
prop
riate. A summ
ar
y of th
e
approach
and work u
nder
taken
by
man
agem
ent is d
isclo
se
d in note1-
ba
sisof p
repa
rati
on: goin
g concer
n
onpa
ge 93.
Ot
her a
rea
s of jud
geme
nt reviewe
d and
agre
ed by the Co
mmi
tte
e, where i
t
conclu
ded t
here w
as n
ot a ris
k of mater
ial
misstatement,
included
:
•
reco
gniti
on of de
ferre
d ta
x a
sse
ts for
the G
roup a
nd Com
pany
. D
efer
red t
a
x
a
sset
s are o
nly re
cogni
se
d to the
ex
ten
t that it is co
nsid
ere
d there a
re
suf
ﬁci
ent t
a
xa
bl
e proﬁt
s in th
e UK
aga
ins
t which to of
f
se
t futu
re ta
x
ded
uc
tion
s. On th
is ba
sis, d
efer
red
ta
x a
sse
ts of £0.
7 m
illio
n have bee
n
reco
gnis
ed at 31 March 2022
(20
21
: £nil). The Comm
it
tee ag
reed
with thisapproach
;
•
sep
ar
ately di
sclo
sed i
tems a
nd
cla
ssiﬁ
catio
n of exce
ption
al ite
ms.
Cer
t
ain i
tems d
urin
g the p
eri
od have
be
en eit
her s
epa
ratel
y discl
os
ed on
the f
ace of the i
ncom
e st
ateme
nt or
pres
ente
d as e
xcepti
ona
l items a
s
deﬁn
ed in th
e Grou
p account
ing
policy
. Alternativ
e performance
mea
sure
s such a
s “under
lyin
g
ope
rati
ng proﬁ
t” a
nd “oper
ating p
roﬁt
befo
re except
iona
l item
s” have been
deﬁn
ed an
d ap
plie
d to ide
ntif
y a cle
ar
distinctio
n between underlying
performanc
e and
ﬁnan
ci
al
per
for
mance a
f
ter accou
nting fo
r
except
iona
l or s
epa
ratel
y discl
ose
d
items
;
•
cla
ssiﬁ
catio
n of cer
t
ain a
s
set
s which
are e
xp
ec
ted to b
e realis
ed t
hroug
h a
sale and leaseback arrangement
and
whether t
hey meet
the held
for sale
crite
ria at 31 Ma
rch 20
22; and
•
lea
se b
reak o
ption
s. Jud
gem
ent ha
s
be
en ap
plie
d by mana
gem
ent wh
en
determin
ing the le
vel
of expected
cer
t
aint
y th
at a brea
k optio
n with
in
alea
se w
ill be e
xercis
ed. Th
e Audit a
nd
Ris
k Commi
t
tee se
ek
s to gai
n
assur
ance from management’s r
eview
and agrees
with the
judgement
ap
pl
ied.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
53
Carclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
The Co
mmit
te
e cons
idere
d whe
ther t
he
20
21
/22 a
nnu
al rep
or
t t
aken a
s a wh
ole
was fair
, balanced and u
nderst
andable
and whether
it pro
vided the
necessar
y
infor
matio
n for sha
reho
lde
rs to a
s
ses
s
the Co
mpa
ny’s posit
ion, pe
r
for
man
ce,
business model and
strategy
. T
he Audit
and R
isk Co
mmit
te
e is s
atisﬁ
ed that,
ta
ken as a w
hol
e, the an
nual re
po
r
t is fa
ir
,
balanced and u
nderst
andable.
External audit
The Co
mmit
te
e ha
s resp
ons
ibil
it
y for
mak
ing a re
comm
end
ation o
n the
app
ointm
ent, re-a
ppoi
ntment a
nd
remova
l of th
e ex
ter
nal au
dito
r
.
Thee
x
tern
al au
ditor
’s appo
intm
ent is
reviewe
d per
iod
ica
lly
, a
nd th
e lead a
udit
par
tne
r is rotate
d at lea
st o
nce ever
y
ﬁveyear
s.
The Au
dit Co
mmit
te
e la
st in
itiate
d a
tend
er pro
cess i
n De
cembe
r 20
1
9
.
Shareholders formally
approv
ed Mazar
s’
ap
point
ment at t
he 20
20 AGM.
The Co
mmit
te
e review
s repo
r
ts f
rom th
e
ex
ter
na
l audi
tor a
s par
t of the a
nnua
l
audi
t pro
cess. T
hes
e cover the s
cope,
ap
proach a
nd re
sult
s of the e
x
ter
nal
audit and i
nclude
the proc
edures
ado
pted for s
afegu
ardi
ng the ﬁ
rm’s
independence
and objectivity
. The
qua
lit
y an
d content o
f thes
e rep
or
t
s,
toge
ther w
ith th
e pe
r
form
ance a
nd
beh
aviour of t
he aud
it tea
ms dur
ing th
e
exe
rcise of th
eir du
tie
s, infor
m the
Comm
it
tee’s ass
es
sme
nt of audi
t
effec
tiveness.
The Co
mmit
te
e ha
s an e
st
abl
ishe
d po
lic
y
for dete
rmi
ning t
he non
-audi
t ser
vice
s
that th
e ex
ter
nal a
udito
r ca
n provid
e
whe
re jus
tiﬁe
d on gro
unds o
f cost a
nd
relate
d ex
per
tis
e and w
here n
ot
impa
cte
d by potenti
al conﬂ
ict
s of
intere
st. Th
is al
lows th
e Comm
it
tee
to satisfy its
elf that auditor
objectivi
ty
andindependenc
e are
safeguarded
.
Thea
nal
ysis of a
udit a
nd no
n-au
dit fee
s
for th
e year to 31 March 2022 and t
he
nature of t
he no
n-aud
it se
r
vices
provid
eda
ppea
r in note 7 i
n the
accou
nts. N
on
-aud
it fee
s tot
all
ed
£0
.0
35mill
ion. N
oapp
roval sh
all b
e given
toany no
n-aud
it se
r
vices p
rohi
bited
und
er the a
me
ndme
nts to t
he
Comp
ani
es Ac
t 2006 an
d the FRC
Revise
d Ethic
al St
and
ard 201
9
.
The Committee discusse
d with the
audi
tor th
e repo
r
t of th
e FRC’
s Au
dit
Qua
lit
y Revi
ew team in re
spe
ct o
f the
audi
t for th
e year end
ed 31 Ma
rch 20
2
1
;
the
re were no key ﬁndi
ngs a
ris
ing f
rom
that re
view
.
Ma
z
ar
s LLP wil
l be pro
po
sed fo
r
re-a
ppo
intm
ent a
s ex
ter
nal a
udito
r by
sha
reho
lde
rs at th
e for
th
comin
g Ann
ual
General
Meeti
ng.
Eric Hutchinson
Cha
ir of th
e Audi
t and R
is
k Comm
it
tee
29 June 2022
54
Carclo plc
An
nua
l repo
r
t an
d accou
nts 2022
The Nomination Committee is
resp
ons
ibl
e for reg
ular
ly revi
ewing t
he
comp
osi
tion of t
he Bo
ard in
cludi
ng it
s
str
uc
ture, size a
nd di
vers
it
y in ord
er to
ens
ure that th
e Grou
p ha
s the ri
ght
lead
er
ship, ba
lan
ce of ski
lls a
nd
ex
pe
rien
ce to del
iver it
s str
ategy a
nd
ena
ble t
he Bo
ard to ef
fe
cti
vely fu
lﬁl
it
sobli
gatio
ns.
Composition
The Nomination Committee comprises
all of t
he No
n-
E
xecuti
ve Dire
ctor
s a
nd
the E
xe
cutive Cha
ir
. It is curre
ntly cha
ired
by
the Senior Inde
pendent
Non
-E
xe
cutive D
irec
tor
, Joe O
atley
.
TheCo
mmit
te
e met o
n ﬁve occa
si
ons
dur
ing th
e year
.
R
ole of the Committee
The Co
mmit
te
e is res
pon
sib
le for
regu
lar
ly review
ing th
e comp
osi
tion of
the B
oard i
nclud
ing it
s s
tru
ctu
re, size and
diver
si
ty
. It is al
so re
spo
nsib
le for
succe
ssio
n pla
nnin
g and i
dent
if
yin
g and
recommendi
ng appropria
te candida
tes
for me
mbe
rs
hip of th
e Boa
rd whe
n
vaca
ncie
s ar
ise. The C
ommi
t
tee ha
s
ap
plie
d the Co
de prov
isio
ns in
develo
pin
g the G
roup’s polici
es on
succe
ssio
n pla
nnin
g and a
pp
ointm
ent
s.
In con
side
rin
g an a
ppo
intme
nt, the
Comm
it
tee eva
luate
s the ba
lan
ce of
skills, kno
wledge,
independence
and
ex
pe
rien
ce of the B
oard a
nd p
repa
res
ades
cript
ion of t
he rol
e and c
apa
bil
itie
s
requ
ired fo
r a par
t
icula
r app
oint
ment.
Inter
nal c
and
idate
s are con
side
red
where
appropriat
e.
The Co
mmit
te
e cons
ider
s th
e
Comp
any’s initi
atives for B
oa
rd
succe
ssio
n pla
nnin
g, toget
her w
ith th
e
tra
inin
g an
d develo
pme
nt of emp
loyees
wit
h the a
bili
ty to p
rogre
ss to s
enio
r
po
siti
ons in t
he Gro
up. The Bo
ard
believes that
these initiatives impro
ve
the p
roba
bili
t
y of the a
ppo
intm
ent of
inter
nal c
and
idates to key exe
cuti
ve
po
siti
ons a
nd the
reby ena
bl
e the Gr
oup
to fulﬁl its strategic objectives.
The N
omin
ation Co
mmi
tte
e al
so
review
sthe ti
me req
uired f
rom each
Non
-E
xe
cutive D
irec
tor a
nd any oth
er
signiﬁcant commitments that the
y may
have. The 20
21
/22 rev
iew foun
d the
Non-E
xecutives’ ti
me commitments
tobe su
f
ﬁcient to d
ischa
rge th
eir
responsibilities ef
fectively
. Base
d on
recomme
ndations
from
the Nomina
tion
Comm
it
tee, Dir
ec
tor
s subm
it the
mse
lves
for el
ec
tion at t
he AGM foll
owing t
heir
appoin
tmen
t and
ther
eafter
annu
ally
forre
-el
ec
tio
n in accorda
nce wi
th
goodgov
ernance
.
Skills and knowledge of
theBoard
A key respo
nsib
ilit
y of t
he Com
mit
tee i
s
to ensu
re that th
e Boa
rd mai
nta
ins a
ba
lance of s
kil
ls, k
nowle
dge a
nd
ex
pe
rien
ce app
ropr
iate to th
e long
-term
ope
rati
on of th
e bus
ines
s an
d deli
ver
y of
the s
trate
gy
. A
s in p
as
t year
s, the
Nom
inatio
n Comm
it
tee ha
s revi
ewed th
e
comp
osi
tion of t
he Bo
ard a
nd a
s pa
r
t of
this revie
w the Committee considered
whether:
•
the B
oard co
nta
ins t
he rig
ht mi
x of
skills, experience and di
versity;
•
the B
oard h
as a
n ap
prop
riate ba
la
nce
of E
xecut
ive Dire
cto
rs a
nd
Non
-E
xe
cutive D
irec
tor
s; and
•
the N
on-
E
xecut
ive Dire
cto
rs a
re ab
le
to commi
t suf
ﬁci
ent tim
e to the
Comp
any to dis
charg
e thei
r
responsibilities ef
fectively
.
Follow
ing th
e review, the Comm
it
tee
wa
s sati
sﬁe
d that th
e Boa
rd conti
nues to
have an ap
prop
riate mi
x of sk
ill
s and
ex
pe
rien
ce to ope
rate ef
fe
cti
vely
.
All t
he Di
rec
tor
s have many year
s of
ex
pe
rien
ce, gaine
d fro
m a broa
d ran
ge of
bus
ine
sse
s, an
d they coll
ec
tivel
y bri
ng a
ra
nge of e
xp
er
ti
se a
nd kn
owle
dge of
dif
fe
rent bu
sine
ss s
ec
tor
s to Boa
rd
deliberations,
which enc
ourages
construc
tive
, challenging and
innovativ
ediscussions.
Joe Oatley
Chair of the
Nomination Committee
NOMINA
TION
C
OMMIT
TEEREPORT
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
55
Carclo plc
Ann
ual re
po
r
t an
d accoun
ts 2022
Nomination Committee
activities in FY22
The key del
ivera
bl
es of th
e Commi
t
tee
we
r
e:
•
review of t
he st
ruc
ture a
nd
comp
osi
tion of t
he Bo
ard;
•
the in
duc
tio
n of the n
ew E
xecut
ive
Dire
cto
rs a
nd N
on-
E
xecut
ive
D
ir
ec
t
or
s;
•
overs
aw the i
nterna
l Bo
ard eva
luatio
n
pr
o
ce
ss;
•
a review of t
he Comm
it
tee’s terms o
f
ref
erence
;
•
Board succession planning;
•
the rev
iew of the N
omi
natio
n
Comm
it
tee re
por
t fo
r inclu
sio
n in the
annual
re
port and ac
cou
nts
; and
•
the p
er
for
ma
nce eval
uation o
f the
Co
mm
it
te
e.
R
evie
w of Board structure
andcomposition
As re
po
r
ted in th
e 20
21 annua
l repo
r
t,
Ca
rclo’
s Boa
rd st
ruc
tu
re ha
s bee
n
str
eamli
ned w
ith th
e remova
l of th
e role
of Chief E
xe
cutive a
nd th
e repla
ceme
nt
of the ro
le of N
on-
E
xecut
ive Chair w
ith
that of E
xe
cutive Cha
ir
.
The B
oard b
eli
eves that, gi
ven the s
ize of
the Group and that a
signiﬁcant majorit
y
of the Group
’
s activities are contained
within the T
echnical Plastics division, this
struc
ture is c
urrently the most efﬁcient
and e
f
fec
tive in ord
er to de
liver t
he
Grou
p’
s str
ategy a
nd th
us create
sha
reho
lde
r valu
e. In par
ticul
ar
, this
str
uc
ture e
nab
les t
he Bo
ard me
mbe
rs
tobe clo
ser to t
he Gro
up’s operat
ions
and t
hus im
prove the p
ace an
d
effec
tiveness of decision-making.
TheCo
mmit
te
e conclu
de
d that having
three Non-E
xecutive Directors remained
optim
al wi
th th
e Seni
or In
dep
end
ent
Dire
cto
r ta
kin
g on ad
diti
ona
l
resp
ons
ibil
it
y to provid
e an over
sig
ht
ofcor
por
ate govern
ance.
Selection of new Direct
ors
–process
The Co
mmit
te
e foll
ows an e
st
ab
lish
ed
and fo
rma
l pro
cess fo
r the re
crui
tmen
t
ofnew D
irec
tor
s, bot
h Ex
ecuti
ve and
Non
-E
xe
cutive. In ge
ner
al te
rms, w
hen
consi
der
ing c
and
idate
s for ap
poin
tment
a
s Dire
ctor
s of t
he Comp
any
, t
he
Nomination Committee, in c
onjunction
wit
h the Bo
ard, dr
af
t
s a det
ail
ed jo
b
spe
ciﬁc
ation a
nd ca
ndi
date proﬁ
le.
Indrafting this, consideration is given t
o
the existing experience
, knowledge
and
backgrou
nd of Bo
ard m
emb
er
s as we
ll a
s
the strategic and business objec
tives of
the G
roup. On
ce a deta
ile
d sp
eciﬁc
atio
n
ha
s be
en agre
ed wi
th the B
oa
rd, the
Comm
it
tee wou
ld th
en wor
k with a
n
ap
prop
riate ex
tern
al sea
rch an
d sel
ec
tion
age
ncy to i
dent
if
y ca
ndid
ates of th
e
ap
prop
riate ca
lib
re and w
ith wh
om a
n
init
ial c
and
idate sh
or
tli
st cou
ld be
agre
ed. The co
nsul
ta
nts a
re requ
ired to
work to a s
pe
ciﬁcati
on that i
nclud
es th
e
stro
ng de
sir
abi
lit
y of pro
duci
ng a ful
l lis
t
of ca
ndid
ates wh
o meet t
he es
sent
ial
crite
ria
, whils
t reﬂe
ct
ing th
e ben
eﬁt
s
ofdiv
ersit
y
.
Appointment of new
Non‑Ex
ecutive Direct
ors
Each N
on-
E
xecut
ive Dire
cto
r is ap
poi
nted
for an i
nitia
l ter
m of thre
e year
s.
Thete
rm ca
n be re
newed by mu
tua
l
agre
eme
nt if the B
oa
rd is sat
isﬁe
d wit
h
the D
irec
tor
’s per
for
man
ce and
commi
tme
nt and a r
eso
luti
on to re
-el
ec
t
at the a
ppro
pri
ate AGM is succe
ssf
ul.
TheB
oard w
ill not n
orm
ally e
x
ten
d the
aggr
egate p
erio
d of se
r
vice of a
ny
independent Non-Executiv
e Director
be
yon
d ni
ne
yea
r
s.
David T
o
ohey in
dic
ated his i
ntentio
n
notto se
ek re
-el
ec
tio
n af
ter se
r
vin
g six
year
s, an
d retire
d from th
e Bo
ard on
30A
pril 202
1
.
Eric H
utchin
son a
nd Fran
k Do
orenb
os
ch
were a
ppo
inted to th
e Boa
rd on
7Janu
ar
y 202
1 and 1 Feb
rua
r
y 20
21
resp
ec
tivel
y
. Th
ey brin
g a weal
th of
bus
ine
ss an
d spe
ciﬁc in
dus
tr
y e
xp
erie
nce
that is inva
lua
ble to t
he Gro
up.
Wit
h ef
fec
t fro
m 6 June 2022, F
ra
nk
Do
oren
bos
ch wa
s app
ointe
d a
s a
consu
lt
ant to th
e Grou
p for a pe
rio
d of
up to t
welve m
onths, a
nd acco
rding
ly
be
cam
e an E
xe
cutive D
irec
tor for t
hat
per
io
d. F
ra
nk wil
l focus o
n as
sis
ting t
he
Ca
rclo T
ech
nica
l Pla
st
ics di
visi
on to
imp
rove its op
er
ationa
l ef
fec
tive
nes
s in
the f
ace of ra
pid
ly increa
si
ng dem
and
coup
led w
ith cur
rent sup
ply cha
in
chall
eng
es. It i
s intend
ed th
at Frank wi
ll
rever
t ba
ck to bein
g a Non
-E
xe
cutive
Dire
cto
r of the Co
mpa
ny and re
sume h
is
po
siti
on on th
e Boa
rd Com
mit
tee
s an
d
a
s Chair of t
he Remu
ner
ation Co
mmi
tte
e
a
s soo
n as t
he con
sult
an
cy p
erio
d ha
s
end
ed. The N
omi
natio
n Commi
t
tee is
sati
sﬁe
d that in th
e pe
rio
d, all Bo
ard
Comm
it
tee
s will co
ntinu
e to ope
rate in
accorda
nce wi
th the Co
de a
nd to me
et
the re
quire
ment
s for a ma
jor
it
y of
ind
epe
nde
nt Dire
cto
rs o
n each
Co
mm
it
te
e.
Induction of new Direct
ors
All n
ew Dire
cto
rs g
o throu
gh a t
ailo
red
indu
ct
ion p
roces
s. It is u
sual p
roce
ss a
s
par
t of a Di
rec
tor’s indu
ct
ion for
comp
rehe
nsive si
te visi
ts to b
e
und
er
t
aken; however
, t
his ha
s not b
een
po
ssib
le du
e to C
OVID
-
1
9 res
tric
tio
ns.
However
, all D
irec
tor
s vis
ited t
he CTP
Mitcha
m (UK
) site i
n Oc
tobe
r 20
21 and
Bru
ntons i
n Mus
selb
urgh (U
K) si
te in
Ma
rch 20
2
2, meet
ing wi
th lo
ca
l
man
agem
ent a
nd dis
cuss
ing a ra
ng
e of
mat
ter
s, in pa
r
ti
cular s
trate
gy an
d hea
lth
and s
afet
y
. N
ick Sa
nd
er
s als
o visi
ted th
e
CTP B
rno (Czech Re
pub
lic) and CTP
Penns
ylva
nia (US) si
tes in 2022, F
ra
nk
Do
oren
bos
ch visi
ted CT
P Ban
gal
ore
(Indi
a) in 20
2
1
, CTP B
rno (Cze
ch Repub
lic)
and s
om
e of the U
S sites i
n 20
22, and J
oe
Oatley v
isite
d Jacot
tet (Fran
ce
) in 20
21
.
Each of N
ick Sa
nde
rs, J
oe Oat
ley an
d Eric
Hutch
inso
n have visite
d the n
ew Head
Of
ﬁ
ce in the la
s
t t
welve mo
nths.
56
Carclo plc
Annu
al re
po
r
t an
d accoun
ts 2022
NOMINA
TION
C
OMMIT
TEEREPORT
continued
Board and Committee e
v
aluation
The B
oard re
cogn
ise
s that it n
eed
s to
regu
lar
ly mo
nitor p
er
for
ma
nce of bot
h
the B
oard a
nd i
ts Com
mit
te
es. Thi
s is
achiev
ed through the annual
per
for
mance ev
aluat
ion, fu
ll indu
ct
ion of
new Bo
ard m
emb
er
s and o
ngo
ing Bo
ard
development activities.
The Co
de re
quire
s that the B
oa
rd of a
FTS
E 350 comp
any or a
bove, shoul
d
consi
der h
old
ing a
n ex
ter
nal
ly facil
it
ated
evalu
ation at l
ea
st ever
y t
hree year
s.
Alt
hou
gh not a req
uirem
ent for a
comp
any of Ca
rclo’s c
urr
ent size,
consideration is being given t
o
und
er
t
ak
ing ne
x
t year
’s e
val
uatio
n usin
g
an e
x
tern
al con
sult
ant. D
ue to th
e
numb
er of cha
nge
s on th
e Boa
rd in
recent yea
rs
, the Bo
ard in
stead c
ar
rie
d
out a co
mpre
hens
ive inter
nal eva
luati
on
led by t
he Se
nior I
nde
pen
dent D
irec
tor
this yea
r
.
As s
et ou
t in more d
eta
il in t
he st
atem
ent
of cor
por
ate govern
ance o
n page 47
, t
he
review co
nclud
ed that t
he Bo
ard ha
s
signiﬁcantly improv
ed its ef
fectiveness,
des
pite t
he chal
len
ges of t
he la
st yea
r
.
The
re were no
neth
ele
ss a num
ber of
area
s for i
mproveme
nt.
Recom
mendation
s for
the futu
re
inclu
ded i
ncrea
se
d focus on m
edi
um
andl
ong
-term s
trate
gy
, co
ntinu
ed
imp
rovement in t
he info
rmati
on provi
ded
to the B
oard s
o it is b
et
ter a
ble to a
ss
es
s
the G
roup’s oper
ation
al p
er
for
man
ce,
buil
din
g on succe
ssi
on pla
nni
ng an
d
organisational design, and more
interaction bet
ween Non-E
xecutive
andE
xe
cuti
ve Direc
tor
s b
et
ween B
oard
meetings.
The
se wi
ll be a
reas o
f focus du
rin
g
theco
ming yea
r
. It i
s ex
pec
ted t
hat an
ex
ternally facilitated evaluation will
ta
keplace in 2022/23. Th
e review
als
oconcl
ude
d that th
e Nom
inatio
n
Committee had operated ef
fectively
.
A review of t
he pe
r
form
ance of t
he
E
xecut
ive Chair a
nd oth
er No
n-
Exe
cuti
ve
Dire
cto
rs w
as a
ls
o facili
tate
d by the
Senior Independent Dir
ector
.
R
enew
al and re‑election
If th
e Boa
rd app
oint
s a Di
rec
tor
, that
Dire
cto
r mus
t retire at t
he ﬁr
st AGM
foll
owing t
heir a
ppo
intm
ent. That
Dire
cto
r may
, if th
ey so wi
sh, put
themselves
forward for
election.
In accord
ance w
ith th
e Cod
e and t
he
Comp
any’s ar
ti
cles of a
ss
ociat
ion, th
e
Comp
any wil
l continu
e it
s pra
cti
ce to
prop
os
e all D
irec
tor
s for a
nnua
l
re-
ele
ct
ion. Accor
dingl
y
, al
l Dire
cto
rs w
ill
retire at t
he for
t
hcomi
ng AGM an
d, bein
g
elig
ibl
e, will of
fer t
hems
elve
s up for
re-election.
I am s
atis
ﬁed th
at, follow
ing th
e
evalu
ation a
nd revi
ew of the B
oa
rd
des
crib
ed a
bove, the D
irec
tor
s of
fer
ing
themselves
for r
e-election continue
to
demonstr
ate
commitment, management
and b
usi
nes
s ex
per
tis
e in the
ir pa
r
ticula
r
role a
nd co
ntinue to p
er
fo
rm ef
fe
cti
vely
.
The re
-e
lec
tio
n resp
ec
tive
ly of each
Dire
cto
r is reco
mme
nde
d by the Bo
ard.
Fur
ther i
nform
ation of t
he se
r
vice
contr
ac
ts for t
he E
xecut
ive Dire
cto
rs a
nd
let
ter
s of a
ppo
intm
ent for th
e
Non
-E
xe
cutive D
irec
tor
s are s
et ou
t in
the D
irec
tor
s’ remun
erat
ion re
por
t on
page 6
5.
During the y
ear
, the
Senior Independent
Dire
cto
r hel
d a numb
er of m
eetin
gs wi
th
the oth
er No
n-
E
xecuti
ve Dire
cto
rs
wit
hout t
he E
xecu
tive Chai
r bei
ng
pres
ent, a
s re
quire
d by provisi
on 1
2
ofthe Co
de.
Diversity
The B
oard re
cogn
ise
s the im
por
ta
nce of
diver
si
ty i
n its b
road
es
t sen
se a
s an
impor
ta
nt element in maintaining Boa
rd
effec
tiveness and crea
ting competitive
advantage. Diversit
y of skills, bac
kgr
ound,
knowledge
, int
ernation
al and industry
experience, gender
and ethnic
ity will be
ta
ken into cons
ide
ratio
n whe
n see
ki
ng to
make new a
pp
ointm
ent
s to the B
oard
andi
ts Co
mmit
te
es. A
ll ap
poi
ntme
nts
willb
e mad
e on me
rit, t
ak
ing i
nto account
suit
ab
ilit
y fo
r the ro
le, compo
sit
ion a
nd
ba
lance of t
he Bo
ard to en
sure th
at the
Comp
any ha
s the a
ppro
pr
iate mix o
f
skills,
exper
ience
, independenc
e
andknowledge
.
The B
oard re
cogn
ise
s the li
nk bet
we
en
diver
si
ty a
nd p
er
for
man
ce and w
ill
always proactively c
onsider this when
ta
kin
g de
cision
s rega
rdin
g app
oint
ment
s
and in succession planning.
The B
oard w
ill a
lways con
side
r suit
ab
ly
qua
liﬁe
d app
lic
ant
s for rol
es fro
m as w
ide
a ra
nge a
s po
ssi
ble, wi
th no re
str
ict
ion
s
on ag
e, gend
er
, re
ligi
on, ethn
ic
backgr
ound or current
employment,
butw
hos
e comp
etenci
es an
d kn
owle
dge
will e
nhan
ce the B
oard.
Committee priorities for
2022/23
•
Over
se
e the B
oa
rd evalu
ation
pro
ces
s.
•
F
urther focus
on suc
cession
planning
.
Joe Oatley
Chair of
the Nomination Committee
29 June 2022
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
57
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
DIRECTORS’
REMUNERA
TIONREPORT
Annual Sta
tement
Dear shareholder
On b
eha
lf of th
e Boa
rd I am pl
ea
sed to
pres
ent th
e Dire
cto
rs’ re
mune
ratio
n
rep
or
t (the “Rep
or
t
”) fo
r the year e
nde
d
31 M
a
rch
2022.
The Rep
or
t h
as t
hree s
ec
tion
s:
•
this A
nnua
l State
ment, w
hich
summ
ari
ses a
nd e
xp
lai
ns the m
ajo
r
deci
sion
s and ch
ang
es in re
spe
ct of
Dire
c
tor
s’ remun
erat
ion;
•
a summ
ar
y of th
e Dire
cto
rs’
Remun
erat
ion Poli
cy (the “Po
licy
”)
a
sapp
roved at the 202
1 AGM; and
•
the A
nnua
l Repo
r
t on Rem
une
ratio
n,
provid
ing d
eta
ils of th
e remu
ner
ation
ear
ned by th
e Comp
any’s Dire
cto
rs
inrelat
ion to th
e year en
ded
31March2022 and h
ow the Poli
cy
willb
e op
erate
d for the yea
r to
31March2023.
The G
roup’s targ
ets fo
r the ﬁna
ncia
l year
20
21
/22 we
re set d
urin
g the p
and
emic
whe
n it wa
s a
ssu
med th
at the re
cover
y
from i
t woul
d occur mu
ch soo
ner t
han
ha
s act
ual
ly tra
nsp
ired. N
onet
hel
ess, t
he
comb
inatio
n of the e
xceptio
nal e
f
for
t
s of
ever
yone a
cross th
e bus
ine
ss an
d the
Grou
p’
s ex
pos
ure to me
dica
l ma
rkets
which h
ave remain
ed rel
atively ro
bus
t,
ha
s resu
lted in t
arg
ets fo
r the yea
r
being
exceeded
.
The Remuneration Committee (the
“Commi
t
tee”) too
k this i
nto account
whe
n mak
ing ju
dge
ment
s a
s to pa
st a
nd
future elements
of remu
neration.
Leadership changes
The Co
mmit
te
e supp
or
te
d the wo
rk
a
sso
ciated wi
th the ch
ang
es in G
roup
leaders
hip during the ye
ar
.
Frank D
oo
renb
osch wa
s a
ppo
inted a
Non
-E
xe
cutive D
irec
tor o
n
1Febr
uar
y202
1 and to
ok over a
s
Remun
erat
ion Co
mmit
te
e Chair w
ith
ef
fec
t fro
m 30Ap
ril 202
1
. David T
o
ohey
ste
ppe
d down f
rom the B
oa
rd and a
s
Remun
er
ation C
ommi
t
tee Cha
ir
on30A
pr
il 20
21
.
Wit
h ef
fec
t fro
m 6 June 2022,
FrankD
oo
renb
osch wa
s a
ppo
inted a
s a
consu
lt
ant to th
e Grou
p for a pe
rio
d of up
to t
welve mo
nths, a
nd acco
rdingl
y
be
cam
e an E
xe
cutive D
irec
tor for t
hat
per
io
d. F
ra
nk wil
l focus o
n as
sis
ting t
he
Ca
rclo T
ech
nica
l Pla
st
ics di
visi
on to
imp
rove its op
er
ationa
l ef
fec
tive
nes
s in
the f
ace of ra
pid
ly increa
si
ng dem
and
coup
led w
ith cur
rent sup
ply cha
in
chall
eng
es. It i
s intend
ed th
at Frank wi
ll
rever
t ba
ck to bein
g a Non
-E
xe
cutive
Dire
cto
r of the Co
mpa
ny and re
sume h
is
po
siti
on on th
e Boa
rd Com
mit
tee
s an
d
a
s Chair of t
he Remu
ner
ation Co
mmi
tte
e
a
s soo
n as t
he con
sult
an
cy p
erio
d ha
s
end
ed. I wa
s re-a
pp
ointe
d Chair of t
he
Remun
erat
ion Co
mmit
te
e for thi
s inter
im
period
.
A summ
ar
y of th
e pr
incip
al ter
ms of th
e
E
xecut
ive Chair a
nd CFO’s remune
rati
on
is set o
ut on p
age 68.
2021/22 ﬁnancial y
ear –
performance and pa
y
R
emuneration alignment
tostr
ategy
The Remuneration Committee believes
in rewa
rding C
arcl
o’
s Exe
cuti
ves ba
se
d
on th
eir pe
r
for
man
ce and t
he val
ue
created for t
he Gro
up’
s sha
reho
lde
rs.
Und
er th
e term
s of the Co
mpa
ny’
s
sho
r
t
-term in
centi
ve plan, P W
hite
recei
ved a bo
nus for t
he ﬁna
ncia
l per
iod
20
21
/22. Un
der t
he ter
ms of his cu
rrent
ser
v
ice agre
eme
nt, N Sa
nde
rs i
s not
enti
tle
d to var
iab
le remu
ner
ation.
The va
ria
bl
e ele
ment of P W
hite’s
remun
er
ation in 202
1
/22 wa
s focu
sed
onsim
ple a
nd tr
an
spa
rent mea
su
res of
per
formance against Group underlying
EBITDA an
d work
ing c
api
ta
l ca
sh ﬂow
ta
rget
s. Accordi
ngly
, this Rep
or
t s
houl
d
be read i
n conjun
ct
ion wi
th th
e
st
rateg
icrep
or
t.
Salary
An inte
rna
l review co
nclud
ed that b
as
ic
sa
lar
y fo
r E
xecuti
ve Dire
cto
rs wo
uld not
be in
creas
ed du
rin
g the ﬁn
ancia
l year
2021
/22.
Annual bonus
N Sa
nde
rs wa
s n
ot entit
led to p
ar
ti
cipate
in the 202
1
/22 a
nnua
l bon
us sch
eme.
PWhi
te par
ticip
ated in th
e 20
21
/2
2
ann
ual b
onu
s sche
me an
d will re
ceive a
bo
nus for t
he pe
rio
d. 1
00% of t
he
payme
nt wa
s set ag
ain
st de
man
ding
ﬁnan
cial t
arg
ets, w
hich a
re set ou
t in
det
ail o
n pag
e 6
9
.
Joe Oatley
Ch
air o
f th
e Re
mun
erat
io
n Co
mmi
tt
ee
58
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
DIRECTORS’
REMUNERA
TIONREPORT
continued
2021/22 ﬁnancial y
ear –
performance and pa
y
continued
Long
T
erm Incentiv
e Plan
(“L
TIP”)
Historically
,
per
formanc
e measur
es
forawa
rds mad
e und
er the C
arclo
Per
for
man
ce Sha
re Plan (“PS
P
”) were
equ
ally we
ighted b
et
wee
n EPS an
d
TSRt
arg
ets.
As d
eta
ile
d previ
ous
ly
, th
e curre
nt PSP
sche
me wa
s revi
ewed in 202
1 and i
t wa
s
deter
min
ed that i
t contin
ued to m
eet
thecur
rent n
eed
s of the Co
mpa
ny
.
Accordi
ngly
, awards we
re made i
n
20
21
/22 to P W
hite a
nd oth
er key
executives. In l
ine with this contract,
NSa
nde
rs di
d not rece
ive any award
under the
PSP
.
The Co
mmit
te
e deter
min
ed that a
n
ab
sol
ute TSR t
arg
et wa
s a mor
e
ap
prop
riate pe
r
for
man
ce mea
sure for
the 202
1
/22 award t
han re
lative TS
R
mea
sure t
hat had b
een u
sed p
reviou
sly
.
The p
er
for
ma
nce mea
sure
s for th
e
award
s to vest b
e equ
ally we
ighte
d
bet
we
en EPS a
nd ab
so
lute TSR t
ar
get
s.
The a
bs
olute T
SR ta
rget w
as s
et at the
tim
e of award, t
ak
ing into a
ccount th
e
pre
cedin
g shar
e pri
ce and e
nsur
ing th
at
the t
arg
et is su
f
ﬁcientl
y chall
eng
ing to
deliver
material
shareholder ret
urn.
The B
oard i
s commi
t
ted to a clea
r
,
focus
ed s
trate
gy an
d the Co
mpa
ny is
now well p
lace
d to continu
e this
imp
rovement. It i
s unfor
t
unate that th
e
sha
re pri
ce recover
y in d
if
ﬁcult m
arket
cond
itio
ns ha
s not b
een a
s pl
ann
ed an
d
in lin
e with t
he s
trate
gy an
d
management impr
ov
ements.
The Co
mmit
te
e is keen to e
nsure t
hat
the Co
mpa
ny is in a po
siti
on to ret
ain,
recr
uit a
nd moti
vate exe
cutive
s of an
ap
prop
riate ca
lib
re to lead th
e Comp
any
throu
gh it
s ne
x
t pha
se of d
evelo
pme
nt.
The Co
mmit
te
e ha
s the
refore con
duc
ted
a review of t
he curre
nt PS
P rul
es.
The Co
mmit
te
e an
d Boa
rd consi
der t
hat
it is in t
he be
st i
nteres
t of sha
reho
ld
er
s
for th
e reward
s of top e
xecuti
ves to be
ali
gne
d to the inte
res
t of sha
reho
lder
s.
Inthi
s contex
t
, and g
iven the Co
mpa
ny’s
current mark
et capita
lisation, the
Comm
it
tee con
sid
er
s that it wou
ld be
high
ly be
neﬁcia
l to remove th
e 5% in
10-year dil
utio
n limi
t which cur
rentl
y
ap
plie
s to the Co
mpa
ny’s discretio
nar
y
sha
re pla
ns onl
y
, a
nd to op
erate w
ithin
the e
xi
stin
g 10% in 1
0-year d
ilut
ion li
mit
for al
l sha
re pla
ns.
The Co
mmit
te
e is not s
eek
ing to
incre
ase potential
shareholder dilution
overa
ll, rath
er
, to e
nab
le th
e Comp
any
tohave greater ﬂe
xib
ilit
y w
ithi
n the
ap
proved 10% in 1
0-yea
r dilu
tion l
imit
togra
nt sha
re award
s as p
ar
t of a
contin
uatio
n of our re
mune
ratio
n po
lic
y
which i
ncenti
vis
es the l
ong
-term su
ccess
of the Co
mpa
ny
. Wi
thou
t this ﬂ
ex
ibil
it
y
,
the Co
mpa
ny will likel
y be hi
nder
ed in
any fu
ture re
cruit
ment o
f seni
or
exe
cutive
s and m
ay also f
ace retent
ion
iss
ues of i
ts s
enio
r mana
gem
ent.
Implementation of the
R
emuneration P
olicy for the
2022/23 ﬁnancial y
ear
The cur
rent D
irec
tor
s’ Remun
erati
on
Polic
y wa
s ap
proved by sha
reho
lde
rs at
the 202
1 AGM. In res
pe
ct of th
e
imp
lem
entat
ion of t
he Polic
y for th
e
20
22/23 ﬁ
nan
cial year
, the Co
mmit
te
e
agreed that:
•
the
re will b
e a ba
sic s
ala
r
y level
increa
se fo
r P Whi
te, who is th
e Chief
Fina
ncial O
f
ﬁce
r and a
n E
xecut
ive
Dire
cto
r
. T
he Comp
any ha
s req
uired
NSa
nde
rs to in
crea
se his t
ime
commi
tme
nt to the b
usin
ess a
nd ha
s
the
refore adj
uste
d his s
ala
r
y so t
hat
his p
er die
m sa
lar
y re
mai
ns
uncha
nge
d. Ba
sic s
ala
r
y level in
crea
se
award
s made to ot
her em
ployee
s
wit
hin the G
roup r
an
ged f
rom 0%
to9%;
•
the
re will n
ot be an i
ncrea
se in t
he
ba
se fe
es for th
e No
n-E
xe
cutive
D
ir
ec
t
or
s;
•
the s
tru
ct
ure an
d qua
ntum of th
e
ann
ual b
onu
s for E
xecut
ive Dire
cto
rs
is con
side
red to b
e broad
ly
appropriat
e and aligned
to
sha
reho
lde
rs’ inte
rest
s. For 2022/23
the a
nnua
l bo
nus p
otentia
l will
contin
ue to be b
a
sed o
n dem
and
ing
ﬁnan
cial t
arg
ets, n
oting t
hat the
E
xecut
ive Chair i
s not curre
ntly
enti
tle
d to par
t
icipate i
n the
Compan
y’
s short
-t
erm bonus
sche
me;and
•
the Lon
g T
er
m Incent
ive Plan,
whe
reby cond
itio
nal awa
rds of s
hare
s
are gr
ante
d ann
uall
y und
er the C
arclo
PSP w
ith ve
stin
g af
ter t
hree year
s
ba
se
d on ear
nin
gs pe
r sha
re and
ab
sol
ute tota
l sha
reho
lde
r retur
n
per
for
mance co
ndi
tion
s (followed by
a t
wo-year h
oldi
ng pe
rio
d), has i
n the
pa
st p
rovide
d a st
rong a
lign
ment
bet
we
en the s
eni
or exe
cutive tea
m
and s
hare
hol
der
s. It i
s prop
ose
d that
L
TIP gr
ant
s wil
l be mad
e in 20
22
/23
wit
h the ves
tin
g crite
ria a
nticip
ated to
be ea
rni
ngs p
er sha
re grow
th a
nd an
absolute TSR
target.
The Remuneration Committee is mindful
of the cha
ng
es to the 201
8 Cod
e and
tho
se provi
sion
s were t
aken into a
ccount
in the Po
lic
y app
roved by shar
eho
lder
s at
the 202
1 AGM. A numb
er of th
ose
provis
ions h
ave already b
ee
n adopte
d:
•
the Remuneration Committee was
resp
ons
ibl
e for set
t
ing s
enio
r
man
agem
ent pay for t
he 20
22
/23
ﬁnanc
ial
y
ear;
•
the re
quire
ment fo
r a tota
l vest
ing/
hol
ding p
er
iod of ﬁ
ve years fo
r the
PSP
s wa
s imp
lem
ented w
hen th
e
new sch
eme w
as a
pp
roved in 201
7
;
•
the im
ple
ment
atio
n of a
post
-employment sh
areholding
requi
rement;
•
the Remuneration Committee already
ha
s the a
bili
t
y to use di
screti
on to
overr
ide for
mula
ic ou
tcome
s; and
•
any fu
ture E
xe
cutive Di
rec
tor
s which
are re
crui
ted wil
l receive a p
ens
ion
contr
ibu
tion r
ate in lin
e with t
he UK
gen
era
l wor
k
force. The curr
ent
E
xecut
ive Chair a
nd Chi
ef Fina
ncial
Of
ﬁ
cer do not h
ave a pensi
on
contribution entitlement.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
59
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
Alignment with shareholders
The Remuneration Committee is mindful
of the i
nteres
ts of t
he Gro
up’s
sha
reho
lde
rs a
nd is kee
n to ensu
re a
dem
ons
tra
bl
e link b
et
ween rew
ard a
nd
val
ue creatio
n. In add
itio
n to the mat
te
rs
set o
ut in thi
s Repo
r
t, al
ignm
ent an
d
shareholder int
erest is fu
r
ther
dem
ons
trate
d by the o
per
ation o
f share
ownership guide
lines and the inclusion of
mal
us an
d clawba
ck provisi
ons fo
r both
ann
ual b
onu
s and L
TI
P award
s.
Mo
st imp
or
t
ant
ly
, h
owever
, is t
he clea
r
link b
et
ween e
xecu
tive remu
ner
ation a
nd
the p
er
for
ma
nce of the b
usin
es
s as a
who
le. As p
erm
ane
nt E
xecut
ive Dire
cto
rs
are n
ow in place, th
e Remun
erati
on
Comm
it
tee wi
ll ens
ure the e
xecu
tive
remun
er
ation “mix
” is in lin
e wit
h the
Dire
cto
rs’ Rem
uner
atio
n Polic
y and i
n
the b
es
t intere
st
s of the s
hare
hol
der
s
and the C
ompany
.
The Grou
p ackno
wledges the support
itha
s rece
ived in th
e pa
st f
rom it
s
sha
reho
lde
rs a
nd ho
pe
s that this
willco
ntinu
e.
Joe Oatley
Cha
ir of th
e Remu
ner
ation C
omm
it
tee
29 June 2022
Compliance statement
This Re
por
t ha
s be
en prep
are
d in
accorda
nce wi
th the r
equi
reme
nts of th
e
La
rge an
d Me
dium Si
zed Com
pan
ies a
nd
Grou
ps (Account
s an
d Repo
r
ts)
(Amen
dme
nt) Regulati
ons 201
3, th
e
Companies (
Miscell
aneous Reporting
)
Regul
ation
s 20
18, the Comp
anie
s
(Dire
cto
rs’ Remu
ner
ation Po
licy a
nd
Dire
cto
rs’ Rem
uner
atio
n Repo
r
t)
Regul
ation
s 20
1
9
, th
e UK Lis
tin
g
Auth
ori
t
y List
ing Rul
es an
d ap
plie
s the
pri
ncipl
es s
et out i
n the U
K Corp
or
ate
Gover
nance Co
de 201
8 (“the Cod
e”)
.
The fo
llowi
ng pa
r
ts of t
he An
nual Re
por
t
on Remu
ner
atio
n are au
dited: the s
ingl
e
tota
l ﬁgure of re
mune
rati
on for D
irec
tor
s,
inclu
ding a
nnua
l bo
nus a
nd L
TIP
outco
mes fo
r the ﬁna
ncia
l year en
ding
31March 2022; scheme i
nteres
ts
award
ed dur
ing t
he year; a
nd D
irec
tor
s’
share
hol
dings a
nd sha
re interes
ts.
Remun
erat
ion paym
ent
s and p
ayment
s
for lo
ss of of
ﬁce c
an o
nly be m
ade to
Dire
cto
rs i
f they a
re consi
stent w
ith
thea
pprove
d Dire
cto
rs’ Remu
ner
ation
Polic
yor oth
er
wis
e ap
proved by
ordi
nar
yre
sol
utio
n of the
Company’
sshareholders.
Directors’ Remuneration P
olicy
The Rem
une
ratio
n Polic
y wa
s ap
proved by sha
reho
lde
rs at t
he 20
21 A
GM on 2 S
eptem
ber 202
1
.
The Pol
icy fo
r the rem
une
ratio
n of the E
xe
cutive a
nd No
n-
E
xecuti
ve Dire
ctor
s is s
et ou
t in the t
ab
le be
low
.
El
em
ent o
f
remuneration
Salar
y
Pur
po
se a
nd
li
nkto s
t
rat
egy
T
o p
rovid
e an a
pp
rop
riat
e, comp
eti
tive l
evel of b
as
ic ﬁ
xed in
com
e avoid
ing e
xces
si
ve ris
k ar
isi
ng fro
m over-re
lia
nce
onva
ri
ab
le in
com
e.
T
o re
ta
in a
nd at
tr
ac
t E
xecu
tive D
ire
cto
rs o
f sup
er
ior c
al
ibre i
n ord
er to de
live
r ear
ni
ngs g
row
th.
Reﬂe
ct
s in
div
idu
al sk
il
ls an
d ex
pe
ri
ence a
nd ro
le.
Operation
Revie
wed a
nnu
all
y by the Re
mun
er
atio
n Com
mit
te
e, nor
ma
lly ef
f
ec
tive 1 A
pr
il.
T
a
kes pe
ri
odi
c acco
unt of s
imil
ar ro
le
s at comp
an
ies w
ith s
imi
lar ch
ar
ac
ter
ist
ics a
nd s
ec
tor co
mp
ar
ator
s, in
div
idu
al
ex
pe
ri
ence a
nd p
er
fo
rma
nce, Co
mpa
ny pe
r
for
ma
nce an
d wi
der p
ay level
s an
d sa
lar
y incr
ea
ses a
cros
s th
e Gro
up.
Ma
ximum
No p
res
crib
ed m
a
x
imu
m ann
ual i
ncre
as
e, but w
ill n
or
mal
ly be i
n lin
e wit
h ge
ner
al i
ncrea
s
e for th
e wid
er wo
rk
fo
rce.
In e
xcept
ion
al cir
cums
ta
nce
s, th
e Com
mit
te
e may de
cid
e to awar
d a lower i
ncre
as
e for E
xe
cuti
ve Di
rec
tor
s or i
nd
eed
exce
ed t
his to r
eco
gnis
e, for e
xa
mpl
e, an in
crea
se i
n the s
ca
le, sc
ope o
r res
po
nsi
bil
it
y of th
e rol
e to ta
ke acco
unt of
rel
eva
nt mar
ket move
me
nts a
nd/or the a
pp
oin
tme
nt of ne
w Ex
ecut
ive D
irec
to
rs
.
Per
fo
rm
an
ce
targets
N
/A
60
Carclo plc
Annua
l rep
or
t a
nd a
ccount
s 2022
DIRECTORS’
REMUNERA
TIONREPORT
continued
Directors’ Remuneration P
olicy
con
tinued
El
em
ent o
f
remuneration
Other beneﬁts
Pur
po
se a
nd
li
nkto s
t
rat
egy
Provi
de
s mar
ket-com
pet
iti
ve ben
eﬁt
s.
Provi
de
s ins
ured b
en
eﬁt
s to su
ppo
r
t th
e ind
ivi
dua
l an
d the
ir fa
mil
y dur
ing p
er
io
ds of i
ll hea
lt
h, accid
ent o
r deat
h.
Operation
Beneﬁts provided
through thir
d-par
ty providers.
Inc
lud
es ca
r al
low
ance, l
ife in
sur
an
ce, pri
vate me
di
ca
l insu
ra
nce a
nd p
erm
an
ent di
sa
bil
it
y in
sur
an
ce. Oth
er b
en
eﬁt
s
maybe p
rovi
ded w
he
re ap
pro
pri
ate.
Ma
ximum
Be
neﬁt
s may va
r
y by ro
le an
d ind
ivi
dua
l circu
ms
ta
nce a
nd a
re revi
ewed p
er
iod
ica
ll
y
. B
ene
ﬁt
s have not e
xcee
de
d 10%
ofsa
la
r
y in th
e la
st t
hre
e ﬁna
ncia
l year
s a
nd ar
e not a
ntici
pate
d to ex
cee
d this ove
r the n
ex
t t
hre
e ﬁna
ncia
l year
s.
TheC
omm
it
tee r
eta
in
s the d
iscr
etio
n to ap
prove a h
igh
er co
st in e
xce
ptio
nal ci
rcum
st
an
ces (e.g. reloc
ati
on) or
incircu
ms
ta
nce
s whe
re fa
cto
r
s out
si
de of th
e Com
pa
ny’s contr
ol have mat
eri
all
y cha
nge
d (e
.g. incre
as
es i
n
medicalpremiums
)
.
Per
fo
rm
an
ce
targets
N
/A
El
em
ent o
f
remuneration
Bonus
Pur
po
se a
nd
li
nkto s
t
rat
egy
Inc
enti
vis
es a
nnu
al de
live
r
y of sh
or
t-term ﬁ
nan
cia
l an
d str
ate
gic b
usi
nes
s go
als a
nd b
us
ine
ss s
trat
egy
.
Ma
ximum bonus
only pa
yable f
or achi
eving dem
anding targets.
Operation
Per
fo
rma
nce m
ea
sure
s, t
arg
ets a
nd we
igh
tin
gs ar
e set at t
he s
ta
r
t of th
e year. Payment
s a
re ca
lcul
ated b
as
ed o
n an
a
sse
ss
men
t of pe
r
for
ma
nce at th
e end o
f the yea
r
. Pai
d in ca
s
h wit
h paym
ent of 3
3% of any b
onu
s ear
ne
d defe
rre
d by
t
wo yea
r
s.
No
t pe
n
sio
na
b
le.
Clawb
ack a
nd ma
lu
s provi
sio
ns a
ppl
y in th
e event o
f mater
ia
l mis
st
atem
ent o
f resu
lt
s an
d/
or a
n err
or in t
he ca
lcu
lati
on
ofth
e bo
nus o
utco
me.
Ma
ximum
100% of s
ala
r
y CEO (not curr
entl
y ap
pli
ca
ble).
75% of sa
lar
y CFO.
Per
fo
rm
an
ce
targets
Per
fo
rma
nce i
s as
se
ss
ed on a
n an
nua
l ba
si
s by refer
ence to ﬁ
nan
cia
l mea
su
res a
s wel
l a
s the a
chieve
men
t of pe
rs
ona
l/
st
rate
gic o
bje
ct
ive
s. The ﬁ
nan
cia
l per
for
man
ce mea
s
ures f
or 2022/23 a
re un
de
rly
ing EB
ITDA an
d Op
er
atin
g Ca
sh Fl
ow,
howeve
r the C
omm
it
tee h
a
s dis
creti
on to ad
jus
t th
e pe
r
for
man
ce mea
su
res a
nd we
ight
ing
s each yea
r acco
rdi
ng to
st
rate
gic p
ri
ori
tie
s, a
lth
oug
h the we
igh
tin
g on ﬁna
nci
al m
eas
ure
s wil
l be at l
ea
st 75%. For 2022/
23 the G
rou
p is
intr
odu
cin
g a mea
su
re of hea
lt
h an
d safe
t
y per
f
orm
an
ce in ad
dit
ion to t
he ﬁn
an
cial p
er
fo
rm
anc
e mea
sur
es a
bove.
The b
on
us for p
er
s
ona
l/stra
tegi
c pe
r
for
man
ce is p
ayab
le on
ly if, in th
e opi
nio
n of th
e Remu
ner
atio
n Com
mit
te
e, the
re
wa
s an i
mprove
me
nt in th
e und
er
lyi
ng ﬁn
anci
al a
nd op
er
ati
ona
l pe
r
for
man
ce of th
e Gro
up du
rin
g that ﬁ
nan
cia
l year
.
The C
omm
it
tee h
a
s dis
creti
on to ad
jus
t th
e pe
r
for
man
ce con
dit
ion
s to en
sure t
hat pay
ment
s accu
rate
ly reﬂ
ec
t bu
sin
es
s
pe
r
for
man
ce over t
he pe
r
for
ma
nce p
eri
od. H
owever, such di
scret
ion m
ay onl
y be u
sed i
n circu
mst
a
nces w
he
re the
Com
mit
te
e con
sid
er
s the a
me
nd
ed pe
r
for
ma
nce co
ndi
tio
ns to b
e:
•
fa
ir an
d rea
so
na
ble i
n the ci
rcum
st
an
ces; an
d
•
a mo
re ap
pro
pri
ate mea
su
re of p
er
fo
rma
nce a
nd n
ot mater
ia
lly l
es
s chal
len
gin
g tha
n th
e ori
gin
al co
ndi
tio
n woul
d
have be
en.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
61
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
El
em
ent o
f
remuneration
Lo
ng T
e
rm In
ce
nti
ve Pla
n
(
award
s made u
nder t
he Ca
rclo Per
fo
rma
nce Sha
re Pla
n
)
Pur
po
se a
nd
li
nkto s
t
rat
egy
Ali
gne
d to ma
in s
tra
tegi
c obj
ec
ti
ves of d
eli
veri
ng su
st
ai
nab
le v
alu
e grow
t
h and s
ha
reho
ld
er ret
ur
n.
T
o re
war
d and r
eta
in su
cces
sf
ul l
eade
r
ship t
eam, re
ward d
el
iver
y of t
he Co
mpa
ny st
rate
gy a
nd lo
ng
-term g
oa
ls a
nd to
he
lp al
ign E
xe
cuti
ve an
d sha
reh
old
er i
ntere
st
s.
Operation
An
nua
l gra
nt of ni
l cos
t opt
ion
s or p
er
fo
rma
nce s
har
es wh
ich no
rm
all
y ves
t af
ter a
t lea
st t
hre
e year
s su
bje
ct to co
nti
nue
d
se
r
vice a
nd p
er
fo
rma
nce t
ar
get
s. At th
e st
ar
t o
f each p
er
fo
rma
nce c
ycle, th
e Com
mit
te
e set
s p
er
for
ma
nce t
arg
et
s whi
ch
it cons
iders to be
appropriat
ely stret
ching
.
Awar
ds ma
de to E
xe
cuti
ve Dir
ec
tor
s wil
l be s
ubje
c
t to a “hol
din
g pe
rio
d” un
de
r whi
ch for th
e ﬁve
-year p
eri
od fo
llow
in
g
the d
ate of gr
an
t the E
xe
cuti
ve Di
rec
tor
s wi
ll not b
e pe
rm
it
ted to s
el
l sha
res s
ubj
ec
t to the aw
ard
s (other t
han to f
und a
ny
exe
rcis
e pr
ice paya
bl
e or p
ay any ta
x lia
bi
lit
y a
ris
ing o
n ves
tin
g) and li
mit
ed ex
cepti
ona
l circu
ms
ta
nce
s (such a
s deat
h
).
Clawb
ack a
nd/or mal
us may b
e ap
pli
ed up to s
even yea
r
s fro
m the g
ra
nt of awa
rds i
n any of t
he fol
low
ing ci
rcums
ta
nce
s:
(a
) if any o
f the a
udi
ted ﬁn
an
cial r
esu
lt
s for th
e Com
pany a
re mat
eri
all
y mis
st
ate
d;
(b)
if t
he Co
mpa
ny
, any Gro
up com
pa
ny an
d/
or a rel
eva
nt bu
sin
es
s uni
t ha
s suf
fe
red s
er
iou
s rep
ut
atio
nal d
am
age a
s a
res
ult of t
he re
leva
nt p
ar
ti
cip
ant
’s mis
cond
uc
t or ot
her
w
is
e;
(c
) th
ere ha
s b
ee
n ser
io
us mi
scon
du
ct o
n the p
ar
t of t
he re
leva
nt p
ar
ti
cip
ant; o
r
(d)
in s
uch oth
er ci
rcums
t
ance
s, wh
ere t
he Co
mmi
t
tee d
eter
min
es th
at ma
lus o
r clawb
ack s
hou
ld ap
pl
y
.
Ma
ximum
100% of s
ala
r
y no
rma
l li
mit.
200% of s
al
ar
y e
xcept
ion
al li
mit – e.g. re
cru
itm
ent.
Per
fo
rm
an
ce
targets
L
TI
P pe
r
for
man
ce is m
ea
sure
d over th
ree yea
r
s. Cur
rent p
er
fo
rma
nce m
ea
sur
es ar
e EPS a
nd a
bso
lu
te TSR
, weig
hted
equally; howe
ver
, the Committee has discretion to adjust the
per
formance measures and weightings to
ensure they
cont
inu
e to be l
inked to t
he d
eli
ver
y of th
e Com
pa
ny str
ate
gy
.
The C
omm
it
tee h
a
s dis
creti
on to ad
jus
t th
e pe
r
for
man
ce con
dit
ion
s to en
sure t
hat pay
ment
s accu
rate
ly reﬂ
ec
t bu
sin
es
s
pe
r
for
man
ce over t
he pe
r
for
ma
nce p
eri
od. H
owever, such di
scret
ion m
ay onl
y be u
sed i
n circu
mst
a
nces w
he
re the
Com
mit
te
e con
sid
er
s the a
me
nd
ed pe
r
for
ma
nce co
ndi
tio
ns to b
e:
•
fa
ir an
d rea
so
na
ble i
n the ci
rcum
st
an
ces; an
d
•
a mo
re ap
pro
pri
ate mea
su
re of p
er
fo
rma
nce a
nd n
ot mater
ia
lly l
es
s chal
len
gin
g tha
n th
e ori
gin
al co
ndi
tio
n
woul
dhave be
en.
El
em
ent o
f
remuneration
Pensi
on
Pur
po
se a
nd
li
nkto s
t
rat
egy
Provi
de
s mar
ket-com
pet
iti
ve reti
rem
ent b
ene
ﬁts
.
Op
po
r
tun
it
y for E
xe
cut
ives to co
ntr
ib
ute to th
eir ow
n ret
irem
ent p
lan.
Operation
E
xecu
tive D
ire
cto
r
s recei
ve a cont
ri
but
ion to H
MR
C
-ap
prove
d per
s
ona
l pe
nsi
on a
rra
ng
em
ent o
r a payme
nt in l
ieu of
pension c
ontributions
.
Ma
ximum
E
xecu
tive D
ire
cto
r
s will r
ecei
ve an e
mpl
oyer con
tri
but
io
n to pen
sio
n in li
ne wi
th th
e UK g
en
era
l wor
k
force.
Per
fo
rm
an
ce
targets
N
/A
62
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
DIRECTORS’
REMUNERA
TIONREPORT
continued
Directors’ Remuneration P
olicy
con
tinued
El
em
ent o
f
remuneration
Share ownership guidelines
Pur
po
se a
nd
li
nkto s
t
rat
egy
T
o p
rovid
e al
ign
men
t bet
we
en E
xe
cuti
ves a
nd sh
are
hol
de
rs.
Operation
E
xecu
tive D
ire
cto
r
s are re
qui
red to b
uil
d an
d mai
nt
ain a s
har
eho
ldi
ng e
qui
val
ent to o
ne yea
r’s ba
se s
al
ar
y t
hrou
gh
ther
etent
ion o
f ves
ted s
hare aw
ard
s or t
hrou
gh op
en m
ar
ket purc
ha
ses u
nti
l the g
uid
eli
ne is m
et.
Ma
ximum
100% of s
ala
r
y ho
ldi
ng fo
r Ex
ecut
ive D
irec
to
rs
. The Co
mmi
t
tee w
ill m
oni
tor p
rogr
es
s aga
ins
t thi
s req
uire
me
nt on
ana
nnu
al ba
s
is.
A rea
so
nab
le t
ime l
imi
t is con
sid
ere
d to be ﬁ
ve year
s.
For a
s lo
ng a
s an E
xe
cut
ive Di
rec
tor h
as n
ot met t
he re
leva
nt sh
are ow
ne
rs
hip g
uid
eli
ne ab
ove, he/she w
ill b
e
ex
pe
ct
edto ret
a
in 50% of th
e po
st-ta
x num
be
r of any ve
ste
d sha
re awa
rd un
der P
SP i
n the ﬁr
s
t ﬁve yea
rs o
f the
ir
emp
loym
ent a
nd 75% th
erea
f
ter un
til th
e gui
de
lin
e is met
.
De
pa
r
tin
g E
xecu
tive D
ire
cto
rs a
re re
qui
red to h
old t
hei
r ves
ted P
SP s
hare
s up to 100% o
f sa
lar
y o
r th
eir ac
tu
al P
SP
der
ive
d sha
reh
ol
din
g if lowe
r
, for t
wo yea
rs a
f
ter l
eavin
g.
Per
fo
rm
an
ce
targets
N
/A
El
em
ent o
f
remuneration
Ser
vice agreements – notice periods
Pur
po
se a
nd
li
nkto s
t
rat
egy
Operation
Ma
ximum
Se
r
vice co
ntr
ac
ts w
ill n
ot cont
ai
n noti
ce pe
rio
ds o
f mor
e tha
n tw
elve m
ont
hs.
Per
fo
rm
an
ce
targets
N
/A
El
em
ent o
f
remuneration
Non‑E
xecutiv
e Directors‘ fees
Pur
po
se a
nd
li
nkto s
t
rat
egy
Reﬂe
ct
s ti
me com
mit
me
nts a
nd re
sp
ons
ibi
lit
ies o
f each ro
le.
Reﬂe
ct
s ma
rket-co
mpe
tit
ive fe
es.
Operation
Revie
wed a
nnu
all
y by the B
oa
rd, no
rma
lly e
f
fec
tive 1 A
pr
il. N
on-
E
xecu
tive D
ire
ct
or
s rece
ive a ba
si
c fee fo
r the
ir
res
pe
ct
ive rol
es. A
ddi
tio
na
l fee
s are p
ai
d to No
n-E
x
ecut
ive Di
rec
to
rs fo
r add
iti
ona
l se
r
vice
s su
ch as c
hai
rin
g the A
udi
t
an
d Ris
kan
dRemu
ner
ati
on Com
mit
t
ees
.
Fee l
evels a
re b
ench
mar
ked w
ith re
fere
nce to s
ec
tor co
mpa
rat
or
s an
d FTS
E-lis
te
d comp
ani
es of s
imi
lar s
ize a
nd
com
ple
xi
t
y
. T
he re
qui
red t
ime co
mmi
tme
nt a
nd re
spo
nsi
bil
iti
es a
re ta
ken int
o accou
nt wh
en rev
iewi
ng fe
e level
s.
Allf
eesa
re p
aid i
n ca
sh.
Ma
ximum
No p
res
crib
ed m
a
x
imu
m ann
ual i
ncre
as
e, but i
t is e
xp
ec
ted t
hat fee i
ncre
as
es w
ill no
rm
all
y be i
n lin
e wit
h gen
er
al
incr
ea
ses f
or th
e wid
er wo
rk
for
ce. Howeve
r
, in the eve
nt tha
t the
re is a ma
teri
al mi
sa
lig
nme
nt wi
th th
e ma
rket or c
han
ge
in com
pl
ex
it
y
, res
pon
sib
ili
t
y or ti
me com
mit
me
nt req
uire
d to fu
lﬁl a N
on-
E
xe
cuti
ve Dir
ec
tor ro
le, th
e Boa
rd ha
s di
scre
tio
n
to ma
ke an ap
pro
pr
iate ad
jus
tm
ent to t
he fe
e level.
Per
fo
rm
an
ce
targets
No
n-
Ex
ecut
ive D
irec
to
rs d
o not p
ar
ti
cip
ate in va
ria
bl
e pay a
rra
ng
em
ent
s or re
ceive a
ny pe
nsi
on pr
ovis
ion.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
63
Carclo plc
An
nual r
epo
r
t an
d accou
nts 2022
Notes to the P
olicy table
Performance measurement
selection
The ch
oice of un
der
lyin
g EBITDA and
Op
erat
ing Ca
s
h Flow as t
he ﬁna
ncia
l
per
for
mance m
etr
ics ap
pli
cab
le to th
e
ann
ual b
onu
s sche
me is de
sign
ed to li
nk
per
for
mance to s
tr
ategy a
nd the
bus
ine
ss pla
n. The Co
mmit
te
e be
lieves
that pe
r
for
man
ce mea
sure
s set in
resp
ec
t of th
e annu
al bo
nus s
houl
d be
appropriat
ely c
hallenging and
tied to
both t
he de
liver
y of p
roﬁt grow
t
h, ca
sh
management and speciﬁc individual
objectives. A non-ﬁnancial measure
(hea
lth a
nd sa
fet
y ta
rget) ha
s recent
ly
be
en intro
duce
d into th
e annu
al bo
nus
sc
he
m
e.
The a
bs
olute T
SR an
d EPS pe
r
form
ance
cond
itio
ns ap
pli
cab
le to th
e Carcl
o PSP
were se
le
cted by t
he Remun
er
ation
Comm
it
tee o
n the ba
si
s that th
ey reward
the d
elive
r
y of lon
g-term re
turn
s to
sha
reho
lde
rs a
nd th
e Grou
p’
s ﬁnan
cial
grow
th a
nd are co
nsis
tent w
ith th
e
Company’
s objective of deliv
ering
sup
eri
or level
s of lon
g-term v
alu
e
to
shareholders.
The Co
mmit
te
e op
erate
s the C
arclo P
SP
in accord
ance w
ith th
e rul
es of th
at plan,
Lis
ting Rul
es, co
mpa
ny law and th
e
relev
ant t
a
x le
gis
lation. T
he Com
mit
tee
reta
ins d
iscret
ion over cer
ta
in are
as
relati
ng to th
e ope
ratio
n an
d
administration of the Carclo PSP
consistent with market
practice.
The Co
mpa
ny has a s
hare ow
ner
shi
p
po
licy w
hich re
quire
s the E
xe
cutive
Dire
cto
rs to b
uild u
p and m
aint
ai
n a
ta
rget h
oldi
ng eq
ual to 100% of ba
s
e
sa
lar
y
. Det
ail
s of the e
x
tent to wh
ich the
E
xecut
ive Dire
cto
rs ha
d comp
lied w
ith
this Pol
icy a
s at 31 Ma
rch 20
22 are s
et
outo
n pag
e 75.
R
emuneration policy for other
employ
ees
The follo
wing differenc
es exist bet
ween
the Co
mpa
ny’s P
oli
cy for t
he
remun
er
ation of E
xe
cutive D
irec
tor
s a
s
set o
ut ab
ove and i
ts a
ppro
ach to the
paymen
t of emplo
y
ees generally:
•
a lower l
evel of ma
x
imu
m ann
ual
bonus opportunity generally applies
to emp
loyees b
elow B
oard l
evel;
•
E
xecut
ive Dire
cto
rs c
ar
r
y an ob
ligat
ion
to buil
d an
d main
ta
in a sizea
ble
sha
re-
owne
rs
hip po
siti
on. No s
uch
obl
igati
on is he
ld by othe
r emp
loyees;
•
ben
eﬁt
s of
fere
d to other e
mployee
s
gen
era
lly co
mpr
ise pr
ovisio
n of
healt
hcare
and c
ompan
y car bene
ﬁts
whe
re requ
ired for t
he rol
e or to me
et
mar
ket nor
ms; and
•
par
ticip
atio
n in the C
arclo P
SP (L
TIP) is
limi
ted to th
e Ex
ecuti
ve Dire
ctor
s a
nd
certain selected
senior
managers.
In ge
ner
al, the
se di
f
feren
ces a
ris
e from
the de
velopment
of r
emuneration
ar
ran
gem
ent
s that ar
e mar
ket
comp
etit
ive for the v
ar
ious c
atego
rie
s
ofind
ivid
ual
s and fo
r the di
vers
e
interna
tional emplo
yment settings
in whi
ch we ope
rate. This i
s of great
impor
ta
nce giv
en the highly c
ost
competitive demands of the business
se
ctor
s wi
thin w
hich Ca
rclo com
pete
s.
They a
lso reﬂ
ec
t the f
act t
hat, in th
e ca
se
of the E
xe
cutive D
irec
tor
s an
d sen
ior
exe
cutive
s, a greater em
pha
sis te
nds to
be p
laced o
n per
fo
rma
nce
-relate
d pay
.
R
emuneration P
olicy for the
Non‑Ex
ecutive Direct
ors
The Board
determines
the
Remun
erat
ionPoli
cy a
nd level o
f fees
forth
e Non
-E
xe
cutive Di
rec
tor
s, wit
hin
the li
mit
s set o
ut in th
e ar
ti
cles of
a
sso
ciatio
n. When d
oin
g so, an
indi
vidu
alis n
ot all
owed to pa
r
ticip
ate
inthe d
iscu
ssio
ns rel
ating to th
eir
ownrem
uner
atio
n.
The Pol
icy t
ab
le sum
mar
ise
s the key
comp
one
nts of re
mune
rati
on for th
e
Non
-E
xecut
ive Direc
tor
s.
64
Carclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
DIRECTORS’
REMUNERA
TIONREPORT
continued
Directors’ Remuneration P
olicy
con
tinued
Pa
y scenario charts
The gr
ap
hs be
low provi
de es
tim
ates of th
e potent
ial fu
ture rew
ard op
po
r
tuni
t
y for the t
wo E
xe
cutive D
irec
tor p
osit
ion
s for the
20
22/23 ﬁ
nan
cial year
, an
d the p
otentia
l spli
t bet
we
en dif
fe
rent el
eme
nts of re
mune
rati
on und
er th
ree di
f
ferent s
cenar
ios:
“Minimum”
, “
On target
” and “Ma
x
imum”
per
forman
ce
.
Minimum
Maximum
On target
Executiv
e Chair
Minimum
Maximum
On target
Chief Financial Ofﬁcer
48%
18%
100%
58%
21%
21%
34%
100%
100%
100%
£225,000
£225,000
£225,000
£482,000
£400,
000
£232,000
Basic salary
, beneﬁts and pension
Bonus
L
TIP
As
sumpt
ion
s unde
rly
ing each e
lem
ent of pay ar
e provid
ed in th
e ta
ble b
el
ow
. T
he pro
jec
ted va
lue of t
he Ca
rclo P
SP exclu
de
s
theim
pac
t of sha
re pr
ice grow
th a
nd di
vide
nd accr
ual. Ac
tua
l pay del
ivered, h
owever
, wi
ll be in
ﬂuen
ced by the
se fa
cto
rs.
Minimum
F
ixe
d pay com
pr
isi
ng ba
s
e sa
lar
y, beneﬁ
ts a
nd p
en
sio
n
Ba
se s
al
ar
y is t
he cur
ren
t ba
se s
al
ar
y ef
fe
c
tive 1 A
pr
il 2022
Be
neﬁt
s a
re the cu
rre
nt be
neﬁ
ts p
roje
ct
ed for t
he ﬁn
an
cial yea
r ah
ead
Ba
se
s
ala
r
y
Be
neﬁ
ts
Pen
sio
n
T
ota
l
ﬁ
xe
d
Name
£000
£
000 £
000 £
000
N Sanders
1
225
—
—
225
P
White
221
1
1
—
2
32
1.
N San
de
rs r
ecei
ves a ﬁ
xed s
al
ar
y o
nly a
nd is n
ot ent
itl
ed to a
ny othe
r be
neﬁ
ts, b
on
us or L
TIP
.
On tar
get
Ba
se
d on re
mun
er
atio
n if pe
r
for
ma
nce wa
s i
n line w
it
h ex
pe
ct
ati
ons
An
nua
l per
for
man
ce bo
nu
s for 40% – P W
hi
te 40% of b
a
se s
ala
r
y
L
TI
P con
sis
ts o
f thre
sho
ld P
SP ve
sti
ng (25% for b
oth a
bs
olu
te TS
R and EP
S
per
formancemeasures
)
Ma
ximum
Base
d on maximum remuneration receivable
An
nua
l per
for
man
ce bo
nu
s for 75% – P Whi
te 75% of ba
se s
ala
r
y
L
TI
P a
ssu
mes m
a
x
imu
m PSP ve
st
ing (100% fo
r both a
bs
ol
ute TS
R an
d EPS
per
formancemeasures
)
Approach to remuner
ation upon recruitment
The re
mune
ratio
n pack
age for a
ny new pe
rma
nen
t Ex
ecuti
ve Dire
ctor – i.e. ba
sic s
ala
r
y
, be
neﬁt
s, pe
nsio
n, ann
ual b
onu
s and
lon
g-term i
ncenti
ve awards – wo
uld b
e set in a
ccorda
nce wit
h the ter
ms of t
he Comp
any’s preva
iling a
pp
roved Remun
erat
ion
Polic
y at the t
ime of a
ppo
intme
nt an
d would re
ﬂec
t the e
xp
er
ience of t
he ind
ivid
ual. A
nnua
l bon
us pote
ntial w
ill b
e limi
ted to
100% of sa
lar
y for t
he Chie
f Ex
ecuti
ve (
not curre
ntly a
ppli
cab
le) and 75% of sal
ar
y for t
he Chief F
inan
cial O
f
ﬁcer
. Und
er curr
ent
po
licy l
ong
-term in
centive
s will b
e limi
ted to 100% of sa
la
r
y in both c
a
ses (200% of s
ala
r
y in e
xceptio
nal circum
st
an
ces)
.
In ad
diti
on to nor
ma
l remun
erat
ion el
eme
nts, t
he Com
mit
tee m
ay offe
r add
itio
nal c
as
h and
/
or s
hare
-b
as
ed el
eme
nts w
hen it
consi
der
s th
ese to b
e in th
e bes
t inte
rest
s of th
e Comp
any (
and t
here
fore sha
reho
lde
rs) to ta
ke account of remu
ner
atio
n
relin
quis
hed by a n
ew E
xecuti
ve Dire
cto
r as a re
sult o
f them l
eaving th
eir fo
rme
r empl
oyer (“
buyou
t” aw
ards)
.
In ma
kin
g such b
uyout awa
rds th
e Commi
t
tee wou
ld ta
ke account of, where p
oss
ibl
e, the nature, tim
e hor
izon
s and p
er
fo
rma
nce
requ
irem
ents (i
ncludi
ng th
e likelih
oo
d of tho
se con
diti
ons b
eing m
et) of the for
fe
ited awa
rds. A
ny such “buyout
” awa
rds wi
ll
t
ypic
all
y be ma
de und
er th
e ex
ist
ing a
nnua
l bon
us an
d L
TIP sch
eme, al
tho
ugh in e
xcepti
onal ci
rcums
ta
nces th
e Comm
it
tee
mayexerci
se th
e discret
ion ava
ilab
le un
der Li
sti
ng Rule 9
.4.2
R to make awa
rds us
ing a di
f
ferent s
tr
uct
ure. Any “buyout
” awa
rds
woul
d have a fair va
lue n
o high
er tha
n the awa
rds for
feite
d. Sha
reho
lde
rs wi
ll be i
nform
ed of a
ny such payme
nts at th
e tim
e of
app
ointm
ent.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
65
Carclo plc
An
nua
l repo
r
t an
d accou
nts 2022
For an i
nterna
l E
xecut
ive Dire
cto
r ap
poin
tment, t
he Remu
ner
ation C
ommi
t
tee wil
l be con
sis
tent wit
h the Pol
icy a
dopte
d for
ex
ter
na
l app
ointe
es det
ai
led a
bove. Any va
ria
ble p
ay elem
ent award
ed in re
sp
ec
t of the pr
ior r
ole may b
e allowe
d to pay out
accordi
ng to it
s term
s. Wh
ere an i
ndiv
idua
l ha
s contr
ac
tual co
mmit
ment
s mad
e pri
or to th
eir pro
motio
n to E
xecut
ive Dire
cto
r
level, th
e Compa
ny will co
ntinu
e to hon
our th
ese a
rr
ang
eme
nts.
For ex
te
rna
l and i
ntern
al ap
poi
ntme
nts, th
e Comm
it
tee m
ay agree that t
he Com
pany wi
ll me
et cer
t
ain re
loc
ation a
nd/
or in
cide
nta
l
expenses as appropriate
.
In th
e ca
se of hi
rin
g a new No
n-E
xe
cutive D
irec
tor
, a ba
se fe
e in lin
e with t
he preva
ilin
g fee s
chedu
le woul
d be p
ayabl
e for Bo
ard
mem
ber
sh
ip, with ad
diti
ona
l fees p
ayabl
e for add
itio
nal s
er
vi
ces, su
ch as cha
iri
ng a Bo
ard Co
mmit
te
e or be
ing th
e Sen
ior
Independent Dir
ector
.
Service contracts
The E
xe
cutive D
irec
tor
s are e
mpl
oyed unde
r contr
act
s of em
ploym
ent wi
th Ca
rclo. The pr
incip
al te
rms of t
he E
xecut
ive Dire
cto
rs’
ser
v
ice cont
rac
ts a
re a
s follow
s:
Effe
ct
ive da
te
N
otic
e pe
rio
d
N
oti
ce pe
ri
od
E
xecu
ti
ve Dir
ec
tor
Po
si
tio
n
of contr
ac
t
fro
m Com
pa
ny
fro
m Dir
ec
tor
N Sa
nde
rs
E
xe
cuti
ve Chair
5 Oc
tob
er 20
20
6 mont
hs
6 m
onth
s
P Whi
te
Chief Fi
nancia
l O
f
ﬁcer
1 Ma
rch 20
21
6 month
s
6 mo
nths
Non
-E
xe
cutive D
irec
tor
s are a
pp
ointe
d unde
r ar
ran
gem
ent
s that may gen
er
ally b
e ter
minated at w
ill by eit
her p
ar
t
y wi
thou
t
compensation and their appointment is reviewed
annually
.
Let
ter
s of app
oint
ment a
re provi
ded to th
e No
n-E
xe
cutive D
irec
tor
s. No
n-
E
xecuti
ve Dire
cto
rs have let
te
rs of a
pp
ointm
ent
ef
fec
tive for a p
er
iod of t
hree year
s a
nd are s
ubje
ct to a
nnua
l re-
el
ec
tion at th
e AGM.
Dire
cto
rs’ le
t
ter
s of app
oint
ment a
nd th
e une
xp
ired p
eri
od of th
eir a
ppo
intme
nts (whe
re app
ropr
iate af
ter e
x
tens
ion by
re-
ele
ct
ion) are set o
ut be
low:
Une
xpired
Last
Date o
f mo
st
te
rm a
s at
Date
re
-ap
po
int
me
nt
No
n-
E
xecu
tiv
e Dir
ec
tor
rece
nt le
tt
er
31 Ma
rch 2022
o
f ap
po
intm
en
t
at AGM
J Oatley
2
4 Jun
e 20
2
1
T
o 20
22 AGM
20 July 201
8
2 Se
ptemb
er 20
21
E Hutch
inso
n
21 Decem
ber 202
0
T
o 20
22 AGM
7 Ja
nua
r
y 20
2
1
2 S
eptem
ber 202
1
F Do
oren
bos
ch
1
1 Janu
ar
y 202
1
T
o 20
22 AGM
1 Febru
ar
y 202
1
2 Se
ptemb
er 20
21
Dire
cto
rs’ s
er
vice co
ntra
ct
s and l
et
ter
s of ap
poi
ntme
nt are avai
lab
le for in
spe
ct
ion at th
e Comp
any’s regis
tere
d of
ﬁce.
This s
ec
tio
n has b
ee
n update
d to reﬂe
ct th
e po
siti
on a
s at 2
4 Jun
e 20
2
1 in res
pe
ct of th
e Dire
cto
rs’ s
er
vice co
ntra
ct
s an
d let
ter
s
of ap
poi
ntmen
t. The p
osit
ion a
s at th
e time t
he Remun
erat
ion Pol
icy w
as a
pprove
d is set o
ut in th
e Remun
erat
ion Poli
cy
which i
s availa
ble o
n the Co
mpa
ny’s website.
Exit pa
yment policy
The Co
mpa
ny’s polic
y is to lim
it any paym
ent mad
e to a dep
ar
t
ing Di
rec
tor to cont
rac
tua
l ar
ran
gem
ent
s and to h
ono
ur any
pre
-e
st
abl
ishe
d comm
itme
nts. A
s pa
r
t of th
is pro
cess, t
he Com
mit
tee w
ill t
ake into con
side
ratio
n the E
xe
cutive D
irec
tor
’s duty
tomitiga
te their loss.
It is Co
mpa
ny poli
cy that E
xe
cutive s
er
vi
ce contra
ct
s sho
uld n
ot nor
mall
y cont
ain not
ice pe
rio
ds of mo
re tha
n t
welve mo
nths.
The
re are no p
rovisi
ons wi
thin t
he contr
ac
ts to p
rovide a
utomat
ic payme
nts i
n exces
s of payme
nt in lie
u of notice u
pon
term
inatio
n by the Co
mpa
ny and no p
rede
term
ined co
mpe
nsat
ion p
ackag
e ex
ist
s in th
e event of ter
minati
on of em
ploym
ent.
Payment i
n lieu of n
otice woul
d inclu
de ba
si
c sa
lar
y
, pen
sion co
ntri
buti
ons a
nd be
neﬁt
s. Th
ere are n
o provis
ions fo
r the p
ayment
of liquidated damages.
Ann
ual b
onu
ses m
ay be payab
le wi
th resp
ec
t to the p
er
iod of t
he ﬁna
ncial yea
r ser
ve
d by the de
pa
r
ting E
xe
cutive w
ith th
e
Comm
it
tee o
rdina
rily p
rovidi
ng that su
ch bo
nus wi
ll be pr
o-r
ated for t
ime a
nd pa
id at th
e nor
mal p
ayout date. Any sha
re-b
as
ed
enti
tlem
ent
s gra
nted to a
n E
xecuti
ve Dire
cto
r unde
r the Co
mpa
ny’s share pla
ns wi
ll be d
eterm
ine
d ba
se
d on the re
leva
nt pla
n rul
es.
The d
efaul
t treatm
ent und
er th
e 20
1
7 PSP is t
hat any ou
ts
ta
ndin
g award
s lap
se on ce
ss
ation of e
mpl
oyment. H
owever
, i
n cer
t
ain
pres
crib
ed circu
mst
an
ces, su
ch as d
eath, inju
r
y or dis
ab
ilit
y o
r other circu
mst
an
ces at th
e discre
tion of t
he Com
mit
tee, “good
leaver” s
tat
us may be a
pp
lied. For g
oo
d leavers
, awards w
ill no
rma
lly ves
t on t
he no
rma
l vest
ing date, al
bei
t that the Co
mmi
t
tee
ha
s the di
screti
on to dete
rmi
ne that th
e award
s may vest at a
n ear
lier d
ate. In deter
minin
g the e
x
tent of a
ny such ves
ting t
he
Comm
it
tee wi
ll ta
ke account of t
he ex
te
nt to which t
he rel
evant p
er
for
man
ce cond
itio
ns have bee
n sati
sﬁe
d and t
he pro
po
r
tion
of the p
er
fo
rma
nce pe
rio
d act
ual
ly se
r
ved.
66
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
DIRECTORS’
REMUNERA
TIONREPORT
continued
Directors’
Remuneration P
olicy
con
tin
ued
Malus and clawback
Award
s gra
nted un
der th
e Comp
any’s
Shor
t
-
T
erm Inc
entive
(
“STI”) and PSP
sche
mes a
re sub
jec
t to mal
us an
d
clawba
ck provisi
ons, e
nab
ling a
n
adju
stm
ent to a
n empl
oyee’
s var
iab
le
pay award
s if wa
rra
nted by th
e
occur
rence of a “t
rig
ger event
”
. Th
e t
ype
of event
s that may cons
tit
ute a tr
igge
r
event are a
s fol
lows:
•
circ
umsta
nces justif
ying the summary
dism
iss
al of a
n emp
loyee fro
m his
of
ﬁce or e
mpl
oyment w
ith a
ny
mem
ber of t
he Gro
up incl
udin
g, but
not lim
ited to, dis
hon
est
y
, frau
d,
misre
pres
entati
on or brea
ch of trus
t;
•
circums
ta
nces w
here a
n emp
loyee
ha
s par
ticip
ated in o
r is res
pon
sibl
e
for con
duc
t which re
sul
ted in
sign
iﬁca
nt lo
sse
s to any me
mbe
r of
the Group
;
•
the Co
mpa
ny has b
ecom
e aware o
f
any mater
ial w
rong
doin
g on th
e par
t
of an e
mployee;
•
an em
ployee ha
s ac
ted i
n a man
ner
which i
n the op
inio
n of the B
oa
rd ha
s
brou
ght or i
s likely to b
ring a
ny
mem
ber of t
he Gro
up into mate
ria
l
disp
ute or i
s mater
iall
y adver
se to th
e
intere
st
s of any me
mbe
r of the G
roup;
•
any mater
ial b
reach of a
n empl
oyee’
s
term
s an
d condi
tion
s of emp
loyme
nt,
or mate
ria
l breach of a ﬁd
ucia
r
y dut
y
owed to any m
emb
er of th
e Group;
•
any mater
ial v
iolat
ion of Co
mpa
ny
po
licy
, rul
es or re
gulat
ion, or a f
ail
ure
to mee
t app
ropr
iate st
an
dard
s of
ﬁtness and pr
opriety;
•
any mater
ial f
ail
ure of ri
sk
mana
geme
nt;
•
any othe
r cond
uct w
hich is co
nsid
ered
to be mi
scon
duc
t; or
•
the in
accurate re
por
tin
g of any
account
s, ﬁna
ncia
l data o
r such oth
er
information resulting in such
account
s, ﬁna
ncia
l data o
r other
infor
matio
n bei
ng, in th
e opin
ion of
the Remuneration Committee (
acting
fa
irly a
nd rea
so
nab
ly)
, eith
er
mater
iall
y corre
cte
d and
/
o
r requi
rin
g
any fu
ture acco
unts, ﬁ
nanci
al dat
a or
infor
matio
n having to in
clud
e
wri
te-
down
s, adju
stm
ent
s or othe
r
corre
ct
ive item
s in ord
er to add
ress
the inacc
uracy
.
The a
ppl
icati
on of ma
lus (i.e. par
tia
l or
full l
aps
e of an u
nveste
d incent
ive
opp
or
t
unit
y) will b
e pos
sib
le over the
relev
ant pe
r
for
man
ce per
iod a
nd ho
ldi
ng
per
io
d; the app
licat
ion of claw
back
(i.e
.the pa
r
tia
l or f
ull rep
ayment of a
veste
d-a
nd-p
aid i
ncenti
ve award) w
ill be
po
ssib
le for a p
eri
od of 18 month
s from
the e
nd of th
e releva
nt pe
r
form
ance
period
.
The Rem
une
ratio
n Comm
it
tee wi
ll
consider
the most appropria
te
method
throu
gh wh
ich to app
ly a
n adjus
tm
ent to
pay at it
s abs
olu
te discre
tion. I
n mos
t
ca
se
s, the si
mpl
es
t app
roach wou
ld be i
n
the follo
wing sequence
:
1
.
redu
ct
ion of in
-ﬂight a
nnu
al bo
nus
and
/
o
r PSP awa
rds n
ot yet
pe
r
form
ance
-tes
ted (i.e. malu
s
);
2.
re
duc
tio
n of defe
rred b
onu
s or ves
ted
PSP (i.e. malu
s
); and
3.
req
ues
t for th
e repaym
ent of an
alrea
dy-pa
id a
nnua
l bon
us an
d/
o
r PS
P
awa
rd (i.e. clawb
ack).
An em
ployee n
ot in role at t
he tim
e of
the tr
igg
er event s
houl
d be e
xclude
d
from a
n adju
st
ment e
xcept in th
e
ins
ta
nce wh
ere the s
everi
t
y of the event
warra
nts a collective adjustment acr
oss
the e
ntire bu
sin
ess a
rea or Co
mpa
ny
regardless of responsib
ility
.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
67
Ca
rclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
Annual Report on Remuneration
The fo
llowi
ng se
cti
on provi
des d
eta
ils o
f how Ca
rclo’
s Remun
er
ation Pol
icy w
as i
mple
mente
d dur
ing th
e ﬁna
ncial yea
r endi
ng
31March 2022.
R
emuneration Committee membership in 2021/22
The Rem
une
ratio
n Comm
it
tee cur
rentl
y compr
ise
s of J Oatl
ey and E H
utchin
son. Th
e Comm
it
tee is cu
rrent
ly chai
red by J Oatl
ey
.
D T
oo
hey wa
s a me
mbe
r and Cha
ir of th
e Comm
it
tee unt
il 30 A
pri
l 20
21 when he s
tepp
ed dow
n from t
he Bo
ard. F Do
ore
nbo
sch
wa
s a mem
ber a
nd Cha
ir of th
e Commi
t
tee unt
il 6 Jun
e 20
22.
The Co
mmit
te
e met ni
ne tim
es du
ring t
he ﬁna
ncia
l year end
ed 31 Ma
rch 20
22 an
d indi
vidu
al Com
mit
te
e memb
er
s at
tend
ed a
ll
meetings held
during the
ye
ar under r
evie
w
.
Dur
ing t
he year
, the Co
mmit
te
e sou
ght inter
nal s
upp
or
t fr
om the E
xe
cutive Cha
ir a
nd Chief Fi
nan
cial O
f
ﬁcer wh
o at
tend
ed
Comm
it
tee m
eetin
gs by invi
tati
on fro
m the Rem
uner
atio
n Commi
t
tee Cha
ir
, to a
dvis
e on sp
eciﬁ
c que
sti
ons r
ais
ed by the
Comm
it
tee a
nd on m
atte
rs re
latin
g to the p
er
for
man
ce and r
emun
erati
on of s
enio
r mana
ger
s. Th
e Ex
ecuti
ve Chair a
nd Chief
Fina
ncial O
f
ﬁce
r were not pr
ese
nt for any di
scus
sion
s that rel
ated dire
ct
ly to the
ir own rem
uner
atio
n. The Com
pany S
ecret
ar
y
at
tend
ed each m
eetin
g a
s Secre
ta
r
y to the Co
mmit
te
e.
Independent advice
In un
der
t
ak
ing i
ts re
spo
nsib
ilit
ies, th
e Comm
it
tee s
eek
s in
dep
end
ent ex
te
rna
l advi
ce as n
ece
ssa
r
y
. D
uri
ng the yea
r
, th
e
Comm
it
tee un
der
took a s
el
ec
tion p
roces
s for new a
dvis
or
s. Ella
so
n LLP were s
ele
cte
d and p
rovide
d adv
ice from 3D
ecem
ber202
1
.
Ella
so
n LLP ha
s no conn
ec
tion w
ith a
ny indiv
idua
l Dir
ecto
r
. P
rio
r to that, Me
rcer Limi
ted prov
ide
d advi
ce.
Dur
ing t
he year £7
,200 fee
s were pa
id to Me
rcer Limi
ted in re
sp
ec
t of gen
era
l advi
ce arou
nd level
s of E
xecut
ive remun
erat
ion.
Dur
ing t
he year £
25,086 fee
s were pa
id to Ella
so
n LLP in res
pe
ct of g
ener
al a
dvice a
roun
d levels of E
xe
cutive re
mune
rati
on.
Summary of shareholder voting on remuner
ation matters
The fo
llowi
ng ta
bl
e shows t
he res
ult
s of the s
hare
hol
der vote on t
he 20
20
/21 remune
ratio
n repo
r
t at th
e 20
2
1 AGM:
T
ot
al
num
be
r
%
o
f
of
v
otes
vote
s
c
as
t
For
(inclu
din
g
discret
ion
ar
y)
1
6,
92
2,
7
43
98.89
Aga
ins
t
189
,462
1
.
1
1
T
ota
l votes ca
s
t (
exclu
ding w
ithh
eld vote
s
)
1
7
,
1
1
2,205
1
00.00
V
otes
with
hel
d
4,5
90
T
ota
l votes ca
s
t (includ
ing w
ithh
eld votes)
1
7
,
1
1
6,
795
The fo
llowi
ng ta
bl
e shows t
he res
ult
s of the s
hare
hol
der vote on t
he Remu
ner
ation Pol
icy at t
he 20
21 A
GM:
T
ot
al
num
be
r
%
o
f
of
v
otes
vote
s
c
as
t
For
(includi
ng
discret
iona
r
y)
16,
1
19
,4
71
94.2
6
Aga
ins
t
980,
956
5.
7
4
T
ota
l votes ca
s
t (
exclu
ding w
ithh
eld vote
s
)
1
7
,
1
00,4
2
7
100.
00
V
ot
es
withheld
1
6,3
68
T
ota
l votes ca
s
t (includ
ing w
ithh
eld votes)
1
7
,
1
1
6,
795
68
Carclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
DIRECTORS’
REMUNERA
TIONREPORT
continued
Annual Report on Remuneration
c
onti
nued
N Sanders – remuner
ation details
N Sa
nde
rs wa
s a
ppo
inted a
s E
xe
cutive Cha
ir on 5 O
cto
ber 202
0.
The te
rms of h
is ap
poin
tment c
an b
e summ
ar
ise
d as fo
llows:
•
ann
ual s
ala
r
y of £1
50,
00
0; and
•
no ent
itle
ment to b
onu
s, L
TIP awa
rds, p
ensi
on cont
rib
utio
ns or oth
er b
eneﬁt
s.
P
White – remuner
ation details
P Whi
te wa
s app
ointe
d a
s Chief Fina
ncia
l Of
ﬁ
cer on 1 M
arch 20
21
.
The te
rms of h
is ap
poin
tment c
an b
e summ
ar
ise
d as fo
llows:
•
ann
ual s
ala
r
y of £
21
5,00
0;
•
annual
car
allow
ance
and
priva
te
medical
ins
uranc
e
;
•
no entitlemen
t to
pension cont
ributions;
•
elig
ibl
e to receive a c
as
h bo
nus up to 75% of sal
ar
y (with p
ayment of 33% o
f any bo
nus ea
rne
d defer
red by t
wo year
s)
; and
•
elig
ibl
e to receive P
SP awa
rds up to 100% of sa
la
r
y
.
Single total ﬁgure of remuner
ation for Ex
ecutiv
e Directors (audited)
The t
ab
le be
low se
ts ou
t a sing
le ﬁgu
re for the tot
al re
mune
rati
on rece
ived by each E
xe
cutive Di
rec
tor for th
e year en
ded
31March2022 and th
e pr
ior year
:
LT
I
P
Paym
ent
an
d
ot
he
r
fo
r
los
s
A
nnu
al
share-based
To
t
a
l
To
t
a
l
Sa
la
r
y
o
f of
ﬁce
Be
neﬁ
ts
1
bonus
pay
me
nts
Pens
io
n
2
ﬁxed
variable
T
otal
Name
£
000 £
000 £
000 £
000 £
000 £
000 £000
£
000 £
000
N Sanders
3
202
2
150 N/
A N/
A N/
A N
/
A N/
A
150 N/
A
150
2021
7
4 N/
A N/
A N/
A N/
A N/
A
7
4 N/
A
7
4
P Whi
te
4
202
2
21
5 N/
A
1
1
45 N/
A N/
A
215
56
271
2021
1
8 N/
A
1
1
3 N/
A N/
A
18
1
4
32
A Collins
5
202
2
N
/A
N
/A
N
/A
N
/A
N
/A
N
/A
N
/A
N
/A
N
/A
2021
2
4
7 N/
A N/
A N/
A
N/
A N/
A
2
4
7 N/
A
2
4
7
M Durkin-
Jones
6
202
2
N
/A
N
/A
N
/A
N
/A
N
/A
N
/A
N
/A
N
/A
N
/A
2021
16
7 N/
A N/
A N/
A N/
A N/
A
16
7 N/
A
16
7
1.
Ben
eﬁt
s com
pri
se p
riv
ate me
dic
al cove
r
, trave
l and c
ar a
ll
owan
ce.
2.
Paym
ent i
n lie
u of pe
nsi
on con
tri
bu
tio
ns ar
e in lin
e wi
th th
e Remu
ner
ati
on Pol
icy.
3.
N Sa
nd
er
s’ 202
1 sa
lar
y r
elate
s to th
e pe
rio
d fro
m 5 Oc
tob
er 2020 whe
n app
oi
nted a
s E
xe
cuti
ve Chai
r
.
4.
P Wh
ite’s 20
21 sal
ar
y
, be
neﬁ
ts a
nd a
nnua
l bo
nu
s relat
e to the p
er
iod f
rom 1 M
arc
h 20
21 to 31 March 2021
. The s
al
ar
y p
aymen
t of th
e inter
im
Chie
fFina
nci
al O
f
ﬁcer fo
r P Wh
ite f
rom 16 Dece
mb
er 2020 to 28 Febru
ar
y 2021 is not inc
lud
ed a
s thi
s ap
po
intm
ent w
as n
ot a Bo
ard a
pp
oint
me
nt.
5.
A
. Col
lin
s’ 20
21 sal
ar
y re
late
s to the p
er
io
d to 5 Nove
mbe
r 202
0 wh
en he l
ef
t th
e Gro
up.
6.
M Du
rk
in-Jon
es’ 202
1 sa
la
r
y rela
tes to t
he pe
ri
od to 17 Dece
mbe
r 2020 when he l
ef
t th
e Gro
up.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
69
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
Single total ﬁgure of remuner
ation for Non‑Ex
ecutiv
e Directors (audited)
The t
ab
le be
low se
ts ou
t a sing
le ﬁgu
re for the tot
al re
mune
rati
on rece
ived by each N
on-
E
xecut
ive Dire
cto
r for the yea
r end
ed
31March 2022 and th
e pr
ior year
:
Ba
se fe
e £
Comm
it
te
e fee
s £
T
ot
a
l £
Non-Executiv
e
Director
202
2
2021
2022
2
021
2022
202
1
J Oat
ley
1
48,
000
55,
164
N
/A
1,
6
6
2
48,
000
5
6,
826
E Hutch
inso
n
2
38,
000
8,81
9
7
,000
583
45,000
9,
4
0
2
F Do
ore
nbo
sch
3
38,
000
6,333
6,
417
N/
A
4
4
,
417
6,333
P Slab
bert
4
N
/A
3
4
,9
3
0
N
/A
6
,
47
7
N
/A
41
,
4
0
7
D
To
o
h
e
y
5
3,1
6
7
3
4
,9
3
0
583
5,45
4
3
,750
4
0,3
8
4
N Sanders
6
N
/A
5,370
N
/A
N/
A
N
/A
5
,
370
1.
J Oatl
ey ac
ted a
s Rem
une
rati
on Co
mmi
t
tee Ch
air u
ntil 27 A
pri
l 202
0. J Oatl
ey ac
ted a
s No
n-
E
xecu
tive Ch
air fo
r th
e per
io
d 27 Apr
il 2020 to
30S
epte
mbe
r 202
0 an
d a
s Sen
ior I
nd
epe
nd
ent D
irec
to
r fro
m 30 Se
ptem
be
r 20
20.
2.
E Hu
tchi
nso
n wa
s ap
po
inte
d as a N
on
-E
xe
cuti
ve Di
rec
tor o
n 7 Jan
ua
r
y 20
21 and a
s
sum
ed th
e rol
e of Aud
it Co
mmi
t
tee Ch
air f
rom 1 M
arch 2021
.
3.
F Do
ore
nb
os
ch wa
s ap
poi
nted a
s a N
on
-E
xe
cuti
ve Dir
ec
tor o
n 1 Febr
ua
r
y 20
21 and a
s
sum
ed th
e rol
e of Rem
une
rat
ion Co
mm
it
tee Ch
ai
r from
30A
pri
l 202
1
.
4.
P Sl
abb
er
t a
cte
d a
s Se
nio
r Ind
ep
end
ent D
ire
cto
r unt
il 30 S
epte
mb
er 202
1 an
d Aud
it Co
mmi
tt
ee Cha
ir un
til 1 M
arch 2021
. P Sla
bb
er
t s
too
d dow
n
fro
m the B
oa
rd on 31 Ma
rch 2021
.
5.
D T
ooh
ey ac
ted a
s Rem
une
rat
ion C
omm
it
tee C
hai
r fro
m 27 Apr
il 202
0. D T
o
ohey s
to
od do
wn fro
m th
e Boa
rd a
nd a
s Remu
ne
rati
on Co
mmi
t
tee
Cha
ir on 3
0 Ap
ril 2021
.
6.
N Sa
nd
er
s ac
ted a
s No
n-
E
xecu
tive D
ire
cto
r an
d Cha
ir el
ec
t fro
m 18 Augus
t 2020 to 30 Se
ptemb
er 2020 and a
cte
d a
s Non
-E
xe
cut
ive Cha
ir fr
om
30S
epte
mbe
r 202
0 to 5 Oc
to
ber 2020, when h
e wa
s el
ec
ted a
s E
xe
cuti
ve Cha
ir
.
Incentive out
comes for the y
ear ended 31 March 2022 (audited)
Annual performance bonus outcome 2021/22
Ou
tcom
e
Ma
x
im
um
%
salary
pot
enti
al %
salary
Name
Financial
Pa
yable
Financ
ial
Payab
le
P
Wh
ite
75.00
21
.00
75.00
28.00
The d
eta
ile
d ﬁnan
cial p
er
for
man
ce ta
rget
s ap
plic
ab
le to the 202
1
/22 an
nual b
onu
s ar
ran
gem
ent
s were a
s foll
ows:
T
o achieve a
nd e
xceed t
he Gro
up’
s und
erl
ying EB
ITDA (50
% weigh
ted) an
d Work
ing Ca
pi
ta
l Ca
sh Flow t
arg
ets (50% weighte
d).
In res
pe
ct of un
der
lyin
g EBITDA
, to achieve the m
inim
um thre
sho
ld und
er thi
s ﬁnan
cial p
er
for
man
ce ta
rget th
e Gro
up wa
s
requ
ired to ach
ieve £1
2,283,000. T
o achi
eve the ma
xi
mum thr
esho
ld th
e Grou
p wa
s requ
ired to ach
ieve £1
5,51
5,000. The a
ctu
al
per
for
mance a
chieved ag
ain
st th
is ta
rget wa
s £14
,
1
38,000.
T
urn
ing to wor
ki
ng ca
pit
al c
a
sh ﬂow
, to achieve th
e mini
mum thr
esho
ld un
der t
his ﬁna
ncia
l per
fo
rma
nce t
arge
t the Gr
oup wa
s
requ
ired to ach
ieve £277
,000. T
o achieve th
e ma
x
imu
m thre
shol
d the G
roup w
as re
quire
d to achieve £
3,2
4
4,
00
0. The ac
tua
l
per
for
mance a
chieved ag
ain
st th
is ta
rget wa
s £(3,59
5,000)
.
Cons
equ
entl
y 28% of the tota
l potent
ial a
nnua
l bon
us wa
s achi
eved in res
pe
ct of th
e aggr
egate of b
oth ﬁna
ncial p
er
fo
rma
nce
targ
ets.
P Whi
te, who pa
r
ticip
ated in th
e 20
21
/2
2 annu
al bo
nus s
chem
e, will rece
ive a bon
us of £45,
1
50, 33% paym
ent of wh
ich will b
e
defer
red fo
r two yea
rs i
n accorda
nce wi
th the D
irec
tor
s’ Remun
erat
ion Pol
icy
.
N Sa
nde
rs di
d not pa
r
tici
pate in th
e 20
2
1
/22 a
nnua
l bon
us sch
eme.
70
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
DIRECTORS’
REMUNERA
TIONREPORT
continued
Annual Report on Remuneration
c
onti
nued
Scheme interests a
war
ded in the y
ear ended 31 March 2022 (audited)
2021/22 L
TIP
Shares subject
to awa
rd
s mad
e
Sha
re pr
ice a
t
Fac
e val
ue at
E
xecu
ti
ve Dir
ec
tor
Date of gr
an
t
dur
in
g the ye
ar
dat
e of awa
rd
date o
f awa
rd
P Whi
te
5 A
ugus
t 20
21
386,778
41
.6p
£1
60,
900
Award
s ta
ke the form of co
ndi
tion
al sha
re awa
rds an
d were mad
e to the e
x
tent of 8
0% of sal
ar
y in re
sp
ec
t of P Whi
te.
The e
x
tent to wh
ich award
s gra
nted in t
he year en
din
g 31 March 20
22 w
ill ves
t is dep
en
dent o
n two i
nde
pen
dent p
er
for
ma
nce
cond
itio
ns, wi
th 50% deter
min
ed by refere
nce to the Co
mpa
ny’s abso
lute TS
R and 50% d
eter
mine
d by referen
ce to the
Comp
any’s EPS, a
s foll
ows:
The TSR
element:
The p
er
for
ma
nce per
io
d is the p
eri
od com
men
cing on t
he gr
ant date a
nd en
ding o
n the ve
sti
ng date, which w
ill be t
he thi
rd
ann
iver
sa
r
y of the g
rant d
ate.
The TS
R per
form
ance co
ndi
tion w
ill be b
a
sed o
n the Co
mpa
ny’s TSR as at th
e end of t
he pe
r
for
man
ce per
iod, a
s foll
ows:
•
if TSR i
s 7
0 pe
nce or l
ess, t
he TSR Awa
rd will n
ot vest to a
ny ex
tent;
•
if TSR i
s 90 pen
ce or ab
ove, the TSR Awa
rd will ve
st in f
ull; and
•
if TSR f
all
s bet
we
en 70 pence a
nd 90 pe
nce, a prop
or
ti
on of th
e TSR Award w
ill ves
t, ca
lculate
d by str
aig
ht
-lin
e app
or
t
ionm
ent.
The m
eas
urem
ent pe
rio
d relate
s to the p
eri
od of 30 d
ays prece
ding t
he thi
rd ann
iver
sa
r
y of the gr
ant d
ate, using t
he averag
e dai
ly
clos
ing sh
are pr
ice ca
lculate
d from t
hat date an
d endi
ng on t
he la
st d
eali
ng day befo
re the ves
tin
g date.
This a
ls
o includ
es a
ny gross d
ivid
end
s pai
d in res
pec
t of th
e sha
res be
twe
en th
e gra
nt date an
d the ve
sti
ng date reinves
ted o
n the
relev
ant paym
ent date at th
e average o
f the hi
gh an
d low sha
re pri
ces on t
hat date.
The E
PS element:
The p
er
for
ma
nce per
io
d is the p
eri
od of th
ree ﬁna
ncia
l year
s of the Co
mpa
ny bet
wee
n 1 Apr
il 20
21 and 31 Ma
rch 20
2
4.
The EP
S per
fo
rma
nce con
diti
on wil
l be ba
s
ed on t
he Comp
any’s EPS for th
e la
st ﬁn
ancia
l year of th
e per
form
ance p
er
iod
(theﬁnan
cial yea
r endi
ng 31 March 202
4), as fol
lows:
•
if EPS i
s 6.0 pence or l
ess, t
he EPS Awa
rd will n
ot vest to a
ny ex
tent;
•
if EPS i
s 8.0 pence or a
bove, the EPS Awa
rd wil
l vest in f
ull; and
•
if EPS f
all
s bet
wee
n 6.0 pence a
nd 8.0 pence, a pro
por
tio
n of the EP
S Award wil
l vest, c
al
culated by s
tra
ight-line a
ppo
r
tio
nme
nt.
The awa
rd to P Whi
te is con
ditio
nal u
pon co
ntinu
ed se
r
vice, wil
l nor
mal
ly vest a
f
ter thr
ee year
s an
d is sub
jec
t to a fur
t
her t
wo
-year
holding period.
Implementation of R
emuneration P
olicy for the y
ear ending 31 March 2023
A summ
ar
y of h
ow the Di
rec
tor
s’ Remune
rati
on Polic
y wil
l be a
ppli
ed dur
ing t
he year e
ndin
g 31 March 20
23 is s
et out b
elow:
Basic salary
Executiv
e Di
rectors
’ base salaries
.
2
022/
23
2021
/22
%
in
crea
s
e
N
S
and
er
s
£2
25,000
£1
50,
000
50
P
Wh
ite
£2
21
,450
£21
5,000
3
The Co
mpa
ny has re
quire
d N Sa
nde
rs to i
ncrea
se hi
s time co
mmit
ment to t
he bu
sine
ss an
d ha
s adju
ste
d his sa
la
r
y accordi
ngly
sothat t
here i
s no chan
ge to his p
er di
em sa
la
r
y
.
Bel
ow E
xecuti
ve Dire
cto
r level, ba
sic p
ay increa
ses a
re lim
ited to m
inima
l cos
t of livi
ng adju
st
ment
s, t
ypi
cal
ly in th
e ran
ge
0%to9
.0%, apa
r
t fro
m ca
se
s of loc
al s
tatu
tor
y re
quire
ment
s, pro
motio
ns, in
creas
es in s
cope o
r othe
r except
iona
l rea
son
s.
Pension arr
angements
N Sa
nde
rs a
nd P Wh
ite do not re
ceive em
ployer p
ensi
on cont
rib
utio
ns.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
71
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
Annual bonus
Curre
ntly
, t
he E
xecu
tive Chai
r ha
s no an
nual b
onu
s enti
tlem
ent.
In lin
e wit
h the Di
rec
tor
s’ Remune
rati
on Polic
y it i
s antici
pated t
hat the ma
x
imum b
onu
s potent
ial for t
he year en
din
g
31March2023 will be 75% of sa
lar
y fo
r the CFO. It is likely th
at all of t
he bo
nus wi
ll be b
as
ed o
n ﬁnan
cial mea
su
res, wh
ich wil
l
inclu
de un
der
lyin
g EBITDA and O
pe
ratin
g Ca
sh Flow m
ea
sures
, equa
lly wei
ghted. In re
cogn
itio
n of the i
mpo
r
ta
nce of s
afet
y to the
bus
ine
ss, th
e Compa
ny ha
s inclu
ded a s
afet
y pe
r
for
mance m
ea
sure for t
he 20
22
/23 ﬁnan
cial year. The Remune
rati
on Com
mit
tee
res
er
ves di
screti
on over agre
ein
g som
e ele
ment of p
er
so
nal ob
jec
tive s
houl
d that be d
eem
ed to b
e in the b
es
t intere
st
s of the
Comp
any an
d sha
reho
lder
s. M
a
x
imum b
onu
s will o
nly be p
ayabl
e whe
n the ﬁn
ancia
l resu
lts o
f the G
roup si
gniﬁc
antl
y exce
ed
ex
pe
ct
atio
ns an
d any bo
nus wi
ll be p
ayable o
nly i
f
, in the o
pinio
n of the Re
mune
rati
on Com
mit
tee, th
ere is a
n improvem
ent in t
he
und
erl
ying ﬁn
ancia
l an
d ope
rati
ng pe
r
form
ance of t
he Gro
up dur
ing th
e year en
ding 31 Ma
rch 20
23. Clawba
ck and m
alu
s provis
ions
will a
pp
ly for al
l E
xecuti
ve Dire
cto
rs. Paym
ent of 33% of a
ny bonu
s ear
ned by a
n E
xecut
ive Dire
cto
r is subj
ec
t to defer
ra
l for t
wo
yea
r
s.
Prop
ose
d ta
rget l
evels have be
en set to b
e chal
len
ging re
lative to th
e 20
22/23 b
usin
es
s pla
n, alth
oug
h spe
ciﬁc t
arge
ts a
re dee
med
to be com
mercia
lly s
ensi
tive a
nd will n
ot be pu
blis
he
d until su
ch time t
hat the Co
mmi
tte
e is conﬁ
dent t
here w
ill be n
o adver
se
impa
ct o
n the Co
mpa
ny of such dis
clos
ure. At this tim
e the Co
mmit
te
e be
lieves th
at the di
sclo
sure of t
arg
ets in t
he year fo
llowin
g
the d
eterm
inatio
n of bo
nus
es is a
ppro
pri
ate as di
sclo
se
d above.
Long‑term incentiv
es
N Sa
nde
rs, i
n line w
ith his s
er
v
ice agre
eme
nt, will n
ot receive a gr
ant of aw
ards u
nde
r the PS
P
.
In lin
e wit
h the Di
rec
tor
s’ Remune
rati
on Polic
y it i
s antici
pated t
hat the va
lue of t
he PS
P gra
nt to be m
ade to th
e CFO for the year
end
ing 31 Ma
rch 20
2
3 will n
ot excee
d 100% of sa
lar
y
. It is ex
pe
cte
d that th
e PSP ve
sti
ng cri
teria w
ill be b
a
sed o
n the p
er
for
man
ce
over the th
ree year
s en
ded 31 Ma
rch 20
25 an
d metr
ics of 50% ea
rni
ngs p
er sha
re an
d 50% abs
olu
te TSR.
As n
oted prev
ious
ly
, fo
llowi
ng the wo
rk c
arr
ied o
ut by the Re
mune
rati
on Com
mit
tee i
n 20
2
1
/22, the Re
mune
ratio
n Comm
it
tee
ha
sdeter
min
ed that t
he L
TIP is cu
rrent
ly ﬁt for p
urp
os
e.
The Co
mmit
te
e be
lieves th
e sche
me wor
ks cl
ose
ly in a
lign
ing E
xecu
tive Di
rec
tor
s’ long
-term inte
res
ts wi
th tho
se of t
he Com
pany
and t
he sha
reh
old
er
s. As s
et out i
n the D
irec
tor
s’ Remun
erat
ion Poli
cy
, aw
ards w
ill be s
ubje
ct to m
alu
s and claw
back prov
isio
ns,
and a r
equi
reme
nt to hol
d the sh
ares s
ubje
ct to awa
rds for ﬁ
ve year
s from date of g
ra
nt except i
n except
iona
l circums
ta
nces o
r to
pay any ta
x lia
bil
it
y ar
isin
g on ves
ting.
Non‑Ex
ecutive Direct
ors
The Co
mpa
ny’s approa
ch to Non
-E
xe
cutive D
irec
tor
s’ remun
erat
ion is s
et by the B
oard w
ith acco
unt ta
ken of th
e time a
nd
resp
ons
ibil
it
y involved i
n each rol
e, includi
ng, whe
re ap
plic
ab
le, the cha
irp
er
son
ship o
f Boa
rd Comm
it
tee
s. A summ
ar
y of cur
rent
fees i
s show
n in the t
ab
le be
low
.
Fee level
s for the 2022/23 ﬁn
ancia
l year ca
n be s
umma
ris
ed a
s foll
ows:
Prov
isi
on
2022/23
2021
/2
2
%
i
ncr
ea
se
Ba
se
fe
e
£
38,000
£
38,000
0
Sen
ior
Ind
epe
nde
nt
Di
rec
tor
fe
e
£1
0,
00
0
£10
,000
0
Comm
it
tee
Chair
fee
s
£7
,00
0
£7
,000
0
72
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
DIRECTORS’
REMUNERA
TIONREPORT
continued
Annual Report on Remuneration
c
onti
nued
Percentage change in Dir
ectors’ remuner
ation
The t
ab
le be
low sh
ows th
e percen
tag
e chan
ge in each D
irec
tor
’s sala
r
y
/fees, b
onus a
nd b
eneﬁ
ts b
et
ween th
e ﬁna
ncial yea
r end
ed
31 March 202
1 and 31 Ma
rch 20
22 comp
are
d to that of th
e tota
l amo
unts fo
r all U
K emp
loyees of t
he Gro
up for each of t
hes
e
ele
ment
s of pay
. D
iscl
osure fo
r all D
irec
tor
s in ad
dit
ion to th
e CEO has b
een a
dde
d in the p
rio
r year in li
ne wi
th the n
ew
requ
irem
ents u
nde
r the EU Sha
reh
old
er Rig
hts D
irec
tive I
I and over t
ime a ﬁve
-year comp
ar
iso
n will b
e buil
t up.
Percent
age cha
nge f
rom 202
0/
21 to 20
21
/22:
S
al
ar
y/fee
B
ene
ﬁt
s
Bo
nus
Executive Chair
N
S
and
er
s
0%
N/
A
N/
A
Executive Directors
P
Wh
ite
0%
0%
(72.0)
%
Non‑E
xecutiv
e Directors
J
Oatl
ey
2
2.23%
N/
A
N/
A
E
Hu
tchins
on
0%
N/
A
N/
A
F
D
oore
nbo
sch
0%
N/
A
N/
A
Av
erage
percentage in
crease for UK emplo
y
ees
2.
9
%
19
.4%
(5
4.
1)%
Percent
age cha
nge f
rom 201
9/2
0 to 20
20
/2
1
:
S
al
ar
y/fee
B
ene
ﬁt
s
Bo
nus
Executive Chair
N
S
and
er
s
—
N/
A
N/
A
Executive Directors
P
Wh
ite
—
—
—
A
Col
lins
(inter
im
CEO)
0%
N/
A
N/
A
M
D
urk
in-
Jo
nes
0%
N/
A
N/
A
Non‑E
xecutiv
e Directors
J
Oatl
ey
0%
N/
A
N/
A
E
Hu
tchins
on
—
N/
A
N/
A
F
D
oore
nbo
sch
—
N/
A
N/
A
P
Sl
abb
er
t
0%
N/
A
N/
A
D
T
o
ohey
0%
N/
A
N/
A
Av
erage
percentage in
crease for UK emplo
y
ees
3.
4%
0%
720%
UK em
ployee
s have bee
n sel
ec
ted a
s the m
os
t app
ropr
iate comp
ar
ator po
ol, give
n the la
rge
st num
ber of G
roup e
mpl
oyees an
d
the G
roup’s headqu
ar
ter
s a
re loc
ated in t
he UK
.
The b
onu
s ﬁgure
s are for U
K
-ba
se
d emp
loyees w
ho pa
r
ticip
ate in a bo
nus a
rr
ang
eme
nt.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
73
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
R
elative importance of spend on pa
y
The t
ab
le be
low sh
ows th
e Group’s act
ual e
xp
end
iture o
n pay (for all em
ployee
s
) relati
ve to reta
ine
d proﬁt
s for th
e ﬁnan
cial yea
rs
end
ing 31 Ma
rch 20
21 an
d 31 March 2022.
202
2
2
021
£000
£
000
%
change
Staf
f
cos
ts
3
4,
971
31
,554
1
0.8%
Reta
ine
d
pro
ﬁt
5,799
7
,4
12
(21
.8)%
Number
Nu
mber
%
change
Numb
er
of
em
ployee
s
1
,06
2
1
,048
1.3%
R
elative performance
The gr
ap
h bel
ow comp
ares t
he va
lue of £100 investe
d in Ca
rclo sh
ares
, includ
ing re
investe
d divi
den
ds, wi
th the F
TSE S
mal
l Cap
ind
ex over th
e la
st ten yea
rs. T
his in
dex w
as s
ele
cte
d be
caus
e it is co
nsid
ere
d to be th
e mos
t ap
prop
riate aga
ins
t whi
ch the tot
al
sha
reho
lde
r retur
n of Ca
rclo plc s
hou
ld be m
ea
sured.
0
200
Apr 21
Apr 22
Apr 20
Apr 19
Apr 18
Apr 17
Apr 16
Apr 15
Apr 14
Apr 13
Apr 12
Apr 11
Apr 10
Apr 09
300
400
500
Carclo
FTSE Small Cap ex
-IT
s
600
100
T
able of historical data (Chief Executiv
e/Ex
ecutive Chair)
201
1 2012 201
3
2014 201
5 20
16 201
7
2018
2019
2020 2021
2
022
Chief Executive single ﬁgure
of remu
ner
ation (£000)
491
2
49
2,
7
6
4
328
538
4
62
836
4
49
325
27
0
32
1
150
Ann
ual b
onu
s payout
(
as
%
of
m
a
x
imum)
— — — —
71
21
9
6 — — — —
—
PSP vesting
(
as
%
of
m
a
x
imum)
50
50
100 — —
50
50
32.5 — — —
—
Figur
es for 201
1 to 201
3 relate to I W
illia
ms
on wh
o wa
s succee
de
d as Chi
ef E
xecut
ive by C Mal
ley on 27 March 201
3. C M
all
ey
resi
gne
d as Chi
ef E
xecut
ive and s
too
d down f
rom th
e Boa
rd on 1
1 Janu
ar
y 201
9
. M Rollin
s as
sum
ed the ro
le of E
xe
cutive Cha
ir
untilA Co
llin
s wa
s app
ointe
d a
s new inter
im Chie
f E
xecuti
ve on 1 Oc
tob
er 201
9
. C
ons
eque
ntly
, the fu
ll-year dat
a is a com
binati
on
of both, reﬂ
ec
ting t
he pe
rio
d in wh
ich they each a
cte
d as Ch
ief E
xecut
ive. A Collin
s lef
t th
e Grou
p on 5 Novem
ber 2020
, however
ac
ted a
s CEO until 5 O
ctob
er 202
0, and N Sa
nd
er
s as
sum
ed the ro
le of E
xe
cutive Cha
ir on 5 O
cto
ber 2020
. Cons
eque
ntly
, the
full
-year dat
a for 20
21 is a combin
ation of b
oth, reﬂe
ct
ing th
e per
iod i
n which N S
an
der
s ac
ted in th
e po
siti
on of E
xecu
tive
Chaira
nd up to a
nd in
cludi
ng the l
eaving d
ate for A Coll
ins.
74
Carclo plc
Annu
al rep
or
t a
nd a
ccount
s 2022
DIRECTORS’
REMUNERA
TIONREPORT
continued
Annual Report on Remuneration
c
onti
nued
Chief Ex
ecutive/Ex
ecutiv
e Chair pa
y r
atio reporting
Ou
tline
d be
low is th
e rati
o of the Chi
ef E
xecuti
ve/E
xecuti
ve Chair
’s single ﬁ
gure of tot
al rem
uner
atio
n for 20
21
/2
2 ex
pres
se
d as
amult
ipl
e of tota
l remun
erat
ion for U
K emp
loyees.
The th
ree r
atios re
ference
d be
low are c
alcu
lated by refere
nce to the e
mpl
oyees at the 2
5th, 50th a
nd 75th perce
ntile.
Weadditi
ona
lly di
sclo
se th
e total p
ay and b
eneﬁ
ts a
nd ba
se s
al
ar
y of th
e emp
loyees u
sed to c
alcu
late the r
atios
.
In tim
e, the t
abl
e bel
ow will b
uild to r
epre
sent te
n year
s of data
:
25th
75th
perc
entile
Median
percentile
Fin
an
cia
l year
Me
tho
d
pay r
atio
p
ay rat
io
p
ay rat
io
2021
/22
Op
ti
on A
7 : 1
6 : 1
4 : 1
20
20
/21
Opti
on A
1
5 : 1
1
3 : 1
8 : 1
20
1
9
/20
O
ptio
n A
12 : 1
1
0 : 1
7 : 1
Full-year pay dat
a for th
e 20
2
1
/22 ﬁna
ncia
l year ha
s be
en us
ed to ca
lculate t
he rat
ios.
In ord
er to ai
d comp
ari
son b
et
wee
n 20
20
/2
1 and 202
1
/22, the fo
llowi
ng ta
bl
e includ
es p
ay data onl
y in res
pec
t of N S
and
er
s as
E
xecut
ive Chair f
rom th
e date of ap
poi
ntme
nt on 5 Oc
tob
er 202
0 until 31 Ma
rch 20
21
:
25th
75th
percentile
Median
percentile
Fin
an
cia
l year
Me
tho
d
pay r
atio
p
ay rat
io
p
ay rat
io
20
20
/21
Opti
on A
7 : 1
6 : 1
4 : 1
The e
mployee d
ata us
ed to c
alcul
ate the r
atios i
s as fo
llows:
25th
75th
percentile
Median
percentile
T
ota
l
p
ay
a
nd
b
en
eﬁts
£
22,655
£27
,
02
4
£4
1,2
79
Ba
se
s
al
ar
y
£
21
,
357
£25,
90
8
£38,754
Of t
he thre
e opti
ons s
et out i
n the ne
w legi
slati
on for c
alcul
ating t
he Chief E
xe
cutive/E
xe
cutive Cha
ir pay rat
io, we have opted to
use O
ptio
n A to ca
lculate th
e pay ratio.
As re
quir
ed in th
e regu
lation
s, we conﬁr
m our b
elie
f that the m
edi
an pay rat
io for th
e year is con
sis
tent wi
th the Co
mpa
ny’s wider
pay
, rewa
rd an
d prog
ress
ion p
olici
es af
fe
cti
ng our e
mpl
oyees. O
ur pay reﬂe
ct
s the key mar
ket in whi
ch we ope
rate. We also
contin
ue to sup
por
t our co
lleag
ues i
n an envi
ronm
ent that is d
riven by o
ur core cul
ture an
d val
ues.
Chan
ges to t
he ba
sic s
al
ar
y of ou
r Chief E
xe
cutive/E
xecu
tive Cha
ir have consis
tent
ly be
en in li
ne wit
h the b
as
e pay award gi
ven
toour em
ployee
s over the la
s
t ﬁve year
s.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
75
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
Directors’ inter
ests (audited)
The in
teres
ts of t
he Di
rec
tor
s and t
heir co
nne
cte
d per
so
ns in th
e ordi
nar
y s
hare
s of the Co
mpa
ny as at 31 Ma
rch 20
2
2 were
a
sfollow
s:
31 Ma
rc
h 2021
31 Ma
rc
h 2020
Ordinary
Or
din
ar
y
shares
Options
shares Options
D
To
o
h
e
y
1
— —
— —
J
Oatl
ey
— —
— —
N
S
and
er
s
592
,
231
—
369
,356
N/
A
E
Hu
tchins
on
1
9
2
,11
8
—
192,
1
18
N/
A
F
D
oore
nbo
sch
2
03,
958 —
203,
958
N/
A
P
Wh
ite
7
4,
278
3
86
,7
78
— N/
A
1.
D T
o
ohey s
tep
pe
d dow
n fro
m the B
oa
rd on 1 A
pri
l 202
1
.
The
re have been n
o chan
ges i
n the D
irec
tor
s’ interes
t
s since th
e year en
d.
Directors’ shareholding requir
ement (audited)
The t
ab
le be
low sh
ows th
e share
hol
din
g of each E
xecut
ive Dire
cto
r aga
ins
t thei
r resp
ec
tive sha
reh
oldi
ng req
uirem
ent a
s at
31March 2022:
Shares held
Ves
te
d
bu
t
Unve
ste
d
Owned
subjec
t to
and subject
Shareholding
Current
Prior year
outright
holding
to
vesting
requirement shareholding shareholding
Di
rec
to
r
or ve
ste
d
pe
ri
od
con
di
tio
ns
(% sa
la
r
y)
(% sa
la
r
y)
(% s
ala
r
y)
N
Sa
nde
rs
592,23
1 — —
100
106.6
7
40.0
P
Wh
ite
7
4,27
8
—
3
86,
778
100
14.
04
0.
0
All o
f N Sa
nde
r
s and P W
hi
te’s share
s own
ed o
utr
ight a
re a
s a re
sult o
f mar
ket pu
rcha
se
s mad
e sin
ce ap
po
intm
ent to t
he B
oar
d.
Directors’ inter
ests in shares in Carclo long‑term incentiv
e plans (audited)
As d
es
crib
ed ab
ove, P White wa
s gr
ante
d a condi
tio
nal awa
rd of 386,778 share
s on 5 Aug
ust 202
1 und
er the C
arclo p
lc 201
7
Pe
r
fo
rmanc
e Shar
e P
lan
.
Appro
val of the Dir
ectors’ remuner
ation report
The D
irec
tor
s’ remun
erat
ion re
por
t set o
ut on p
ages 57 to 75 wa
s a
pproved by th
e Boa
rd of Di
rec
tor
s on 29 Jun
e 20
22 a
nd sign
ed
on it
s be
hal
f by Joe Oat
ley
, Cha
ir of th
e Remun
erati
on Com
mit
tee.
Joe Oatley
Cha
ir of th
e Remu
ner
ation C
omm
it
tee
29 June 2022
76
Carclo plc
Annu
al rep
or
t a
nd a
ccount
s 2022
DIRECTORS’ REPORT
The D
irec
tor
s’ repo
r
t is re
quire
d to be
pro
duced by law. Pages 7
6 to 79 inclus
ive
(togeth
er wit
h the s
ec
tion
s of the a
nnua
l
rep
or
t inco
rp
orate
d into th
ese p
age
s by
referen
ce
) cons
tit
ute a Di
rec
tor
s’ repor
t
that ha
s be
en dr
awn up a
nd pre
sente
d in
accorda
nce wi
th ap
plic
ab
le law
. The
Dire
cto
rs’ rep
or
t a
ls
o inclu
des cer
ta
in
disclosures that the
Company is required
to make by the F
inan
cial Co
nduc
t
Authority’s
Disclosure Guid
ance and
T
ransparency Ru
les and Listing
Rules.
Strat
egic report
The s
trate
gic re
por
t requ
ired by th
e
Comp
ani
es Ac
t 2006 ca
n be fou
nd on
pag
es 01 to 40. This rep
or
t, to
geth
er
wit
h the Cha
ir’s st
ateme
nt on pa
ges 4
to9
, set
s ou
t the Co
mpa
ny’s busine
ss
mod
el a
nd st
rateg
y
, cont
ai
ns a review of
the b
usin
ess a
nd d
escr
ibe
s the
develo
pme
nt an
d per
fo
rma
nce of th
e
Grou
p’
s bus
ines
s dur
ing th
e ﬁnan
cial yea
r
and i
ts p
osi
tion at t
he en
d of the yea
r
.
Ital
so cont
ai
ns on p
age
s 31 to 38 a
des
cript
ion of t
he pr
incip
al ri
sk
s and
uncert
ainties facing the Group
.
The D
irec
tor
s wh
o ser
ve
d throu
ghou
t
the yea
r can b
e foun
d in the Cha
ir
’
s
st
ateme
nt on pa
ge 6.
FCA
’
s Disclosure Guidanc
e
and
T
ransparency R
ules
For the p
urp
os
es of th
e Fina
ncial
Conduct Authority’
s Disclosure
Guidance
and T
ran
spa
renc
y Rule
s (D
TR 4.
1
.5R (2
)
and DTR 4.
1
.8R), this Dire
cto
rs’ rep
or
t,
the s
trate
gic re
por
t on pa
ges 01 to 40
andt
he Cha
ir’s st
ateme
nt on pa
ges 4
to9 toge
ther co
mpr
ise t
he
“
management r
epor
t”
.
Statement of corpor
ate
gov
ernance
The s
tate
ment of co
rp
orate g
overna
nce
on pa
ges 4
6 to 49 provide
s the co
rpo
rate
govern
ance s
tate
ment re
quire
d by the
Financi
al Conduct Authority’
s Disclosure
Gui
dan
ce and T
r
an
spa
renc
y Rule
s (D
TR
7
.2.
1
). The s
tatem
ent of cor
po
rate
govern
ance fo
rms p
ar
t of t
his Di
rec
tor
s’
rep
or
t an
d is inco
rp
orate
d into it by
cros
s-refe
rence.
Going concern
The ﬁn
ancia
l st
atem
ents a
re pre
pare
d on
the g
oing co
ncer
n ba
sis.
Grou
p per
form
ance d
urin
g the yea
r has
enabled
capital
and w
orking
capital
invest
ment to b
e mad
e whil
st ret
ain
ing a
st
ab
le ﬁna
ncia
l pos
itio
n with n
et de
bt
exclu
ding l
ea
se lia
bili
tie
s as of
31March2022 increa
sin
g to £21
.5 mill
ion
(20
21
: £20.5 milli
on)
.
The d
ebt faci
liti
es avail
abl
e to the G
roup
comp
ris
e a term l
oan o
f £30.3 mi
llio
n, of
which £1.
4 mill
ion wi
ll be a
mor
tis
ed by
30S
eptemb
er 2022 and a £
3.5 mill
ion
revolvi
ng cred
it faci
lit
y whi
ch wa
s full
y
util
ise
d as o
f 31 March 20
22. Both o
f
the
se fa
ciliti
es mat
ure on 31 July 2023.
A sche
dul
e of contr
ibut
ion
s with t
he
pen
sio
n tru
stee
s is in p
lace thro
ugh to
July 2023; beyond thi
s a sche
dule o
f
contr
ibu
tion
s for £3.
5 milli
on an
nual
ly is
in pla
ce until 31 Oc
tob
er 2040.
This s
ched
ule is rev
iewed a
nd
recon
sid
ered b
et
ween t
he Com
pany
and t
he tr
us
tees at ea
ch trie
nnia
l
ac
tuar
ial v
aluat
ion, th
e nex
t b
ein
g af
ter
the re
sult
s of th
e 31 March 20
21 trie
nnial
val
uatio
n are k
nown. Thi
s valu
ation, a
nd
accordi
ngly a
n upd
ated sch
edu
le of
contr
ibu
tion
s which ha
s b
een
provis
iona
lly ag
reed, i
s ex
pec
ted to b
e
conclu
ded by 31 Jul
y 20
22. For the
pur
pos
es of t
his go
ing con
cern rev
iew
the e
x
ta
nt sch
edul
e of contr
ibu
tion
s
ha
s be
en cons
ider
ed in th
e ba
se c
as
e.
An inte
rcredi
tor de
ed b
et
ween C
arclo
plc, cer
ta
in oth
er Gro
up comp
ani
es, th
e
ba
nk and t
he pe
nsi
on sch
eme tr
us
tees
requ
ires th
e Gro
up to have reﬁnan
ced it
s
ba
nk debt w
ith a mat
uri
ty d
ate not ear
lier
tha
n 31 March 20
26 and to have agre
ed
an up
dated s
ched
ule of co
ntrib
uti
ons fo
r
the a
ctu
ari
al va
luatio
n of the s
chem
e a
s
at 31 March 202
1 by 3
1 Jul
y 20
22 (this
date havin
g bee
n recent
ly ex
te
nde
d by
one m
onth)
.
The G
roup, the b
ank a
nd th
e pen
sion
sche
me tr
us
tees a
re ac
tivel
y enga
ged in
neg
otiatio
ns over th
e reﬁna
ncing of t
he
ba
nk debt b
eyond th
e curre
nt ex
pir
y date
of 31 July 2023 and over th
e update
d
sche
dul
e of contr
ibut
ion
s. The p
ar
ti
es
are co
mmit
te
d to a pla
n to ﬁnal
ise th
ese
by 31 July 20
22 a
nd th
e Dire
cto
rs have an
ex
pe
ct
atio
n that thi
s will b
e achieved.
As s
uch the D
ire
ctor
s’ goi
ng con
cern
a
sse
ssm
ent pe
rio
d is t
welve m
onth
s
from t
he date of si
gnin
g the
se ﬁna
ncial
st
atem
ent
s.
The bank facilities are subject to f
our
covenant
s to be te
ste
d on a qua
r
ter
ly
basis:
1
. und
erly
ing in
teres
t cover;
2. net debt to u
nde
rlyi
ng EBITDA;
3. core
subsidiar
y underlying EBIT
A; and
4. core sub
sidia
r
y revenu
e.
Core su
bsid
iar
ies a
re deﬁn
ed a
s Ca
rclo
T
echn
ica
l Pla
st
ics Lim
ited; Bru
ntons Ae
ro
Prod
uct
s Lim
ited; Carcl
o T
echn
ica
l
Pla
st
ics (Br
no) s.
r
.o; CTP Ca
rre
ra In
c and
Jacot
tet In
dus
tri
e SAS
, with C
TP T
ai
can
g
Co. L
td an
d Ca
rclo T
echn
ica
l Pla
st
ics
Priv
ate Co. Limited b
ein
g treated a
s
non
-cor
e for the p
urp
os
es of th
ese
coven
ant
s.
It is a
ss
umed t
hat the b
ank covena
nt
s
and t
hres
hol
ds se
t out in t
he curre
nt
ba
nkin
g agre
eme
nt are in p
lace
throughout t
he going c
oncern
a
sse
ssm
ent pe
rio
d an
d are not a
men
de
d
a
s a resul
t of the o
ngo
ing reﬁna
ncin
g.
Ba
se
d on our cur
rent b
as
e ca
se
forec
a
st
s, the
se covena
nt tes
ts a
re
ex
pe
cte
d to be met t
hrou
ghou
t the
asses
sment period.
In ad
diti
on, the p
ens
ion s
cheme h
as t
he
ben
eﬁt of a ﬁf
th covena
nt to be tes
ted o
n
1 May each year up to a
nd in
cludi
ng 20
23.
In res
pe
ct to th
e year
s to 31 March 20
22
and 31 Ma
rch 20
23 the te
st re
quire
s any
sho
r
t
fa
ll of pe
nsio
n deﬁcit re
cover
y
contr
ibu
tion
s whe
n mea
sure
d aga
inst
Pensi
on Protec
tio
n Fund pri
ori
t
y dri
f
t
(which is a mea
su
re of the in
crea
se in th
e
UK Pen
sion Prote
ct
ion Fund’s potent
ial
ex
po
sure to th
e Grou
p’
s pens
ion s
chem
e
liab
ilit
ies) to be met by a com
binat
ion of
ca
sh paym
ent
s to the s
cheme, pl
us a
notion
al (
non-ca
sh
) pr
opor
tion o
f the
increa
se i
n the un
der
lyin
g val
ue of th
e
T
echn
ica
l Pla
st
ics an
d Aero
space
bus
ine
sse
s ba
se
d on an EB
ITDA multi
ple
for th
ose b
usin
ess
es w
hich is to b
e
determined a
nnually
.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
77
Carclo
plc
Annu
al rep
or
t a
nd a
ccount
s 2022
The D
irec
tor
s have reviewe
d ca
sh ﬂow
and coven
ant fore
ca
st
s to cover the
t
welve-
mont
h per
io
d from th
e date of
sign
ing th
ese ﬁ
nanci
al s
tatem
ent
s ta
kin
g
into accou
nt the G
roup’s a
vai
lab
le de
bt
facil
itie
s an
d the ter
ms of th
e curre
nt
ar
ran
gem
ent
s with t
he ba
nk an
d the
pen
sio
n sche
me. Thes
e dem
ons
tr
ate
that the Group
has suf
ﬁcient headroom
in ter
ms of liq
uidi
t
y and covena
nt tes
tin
g
through the forecast perio
d.
In ad
diti
on the D
ire
ctor
s have reviewe
d
ca
sh ﬂow a
nd covena
nt forec
a
st
s for the
sa
me tim
e pe
rio
d ba
se
d on
man
agem
ent
’s bes
t est
imates o
f the
impa
ct of t
he on
goin
g neg
otiatio
ns on
facilities and pension contributions which
includes currently u
ncommit
ted bank
loa
n repaym
ent
s and p
rovisi
onal
ly
agreed additional pension deﬁcit
reco
very con
tributions
cont
ingent
on
fut
ure pe
r
form
ance. Th
ese d
emo
nst
rate
that the Group
has suf
ﬁcient headroom
in ter
ms of liq
uidi
t
y and covena
nt tes
tin
g
throu
gh th
e forec
as
t pe
rio
d.
The D
irec
tor
s have reviewe
d sen
sitiv
it
y
tes
ting b
as
ed o
n a numb
er of rea
so
nab
ly
po
ssib
le sce
nar
ios, t
ak
ing i
nto account
the cur
rent vi
ew of imp
act
s of th
e
conti
nuing C
OVID-
1
9 pandemic on the
Grou
p (pa
r
ticula
rly f
rom su
ppl
y chain
disruption and any unmitigat
ed cost
inﬂati
on acros
s all t
y
pes o
f ope
ratio
nal
expenditu
re
) and poss
ible
politi
cal
uncer
ta
int
y
, i
nclud
ing th
e impa
ct of
theRu
ssia
n inva
sion o
f Ukr
ain
e an
d
heig
htene
d ris
k of wid
er conﬂi
ct, B
rex
it
and ot
her p
oss
ibl
e overs
ea
s trad
ing
issu
es.
Severe d
ownsi
de se
nsit
ivit
y te
sti
ng ha
s
be
en pe
r
form
ed un
der a r
an
ge of
scen
ari
os mo
del
ling t
he ﬁna
ncial e
f
fec
ts
of los
s of bu
sine
ss fro
m: discrete si
tes,
an over
all f
all in g
ross m
argi
n of 1
%
acros
s the G
roup, a fal
l in Gro
up sa
les o
f
5% matched by a cor
resp
ond
ing f
all in
cos
t of sa
les of t
he sa
me a
mou
nt, delays
in the t
imin
g of comm
encem
ent of
signiﬁcant contractual project
s,
redu
ct
ion in reven
ue fro
m spe
ciﬁc
customer
s, minimum wage inc
reases,
and unmitigated inﬂa
tionar
y impact
acros
s ope
rati
ng cos
ts a
nd ex
chang
e
risk. These sensitivi
ties attempt to
inco
rpo
rate th
e ris
ks a
ris
ing fro
m natio
nal
and r
egio
nal i
mpac
ts o
f the gl
oba
l
pan
dem
ic fro
m loc
al lo
ckdowns
, impa
ct
s
on ma
nuf
act
urin
g an
d supp
ly chai
n and
othe
r potenti
al in
creas
es to di
rec
t and
indi
rec
t cos
ts. Th
e Dire
cto
rs co
nsid
er
that th
e Grou
p has t
he ca
paci
t
y to take
mitigating actions to ensure
that the
Grou
p rema
ins ﬁna
ncia
lly vi
abl
e,
including fur
ther reducing operating
ex
pe
ndit
ure a
s nece
ss
ar
y
.
On th
e ba
sis of t
his fore
ca
st a
nd
sen
siti
vit
y tes
tin
g, the B
oard h
as
deter
min
ed that i
t is rea
son
abl
e to
a
ssum
e that th
e Group w
ill cont
inue to
ope
rate wi
thin t
he faci
liti
es avail
abl
e to it
and to a
dhe
re to the covena
nt tes
ts to
which it is
subject throughout the
t
welve-
mont
h per
io
d from th
e date of
sign
ing th
e ﬁnan
cial s
tate
ment
s an
d as
such i
t has a
dopte
d the g
oing co
ncer
n
a
ssum
ption i
n prep
ari
ng the ﬁ
nan
cial
st
atem
ent
s.
Proﬁts and earnings
The p
roﬁt fro
m contin
uing o
per
atio
ns of
the G
roup b
efore t
a
x
ation, af
te
r charg
ing
net inte
res
t of £3.0 milli
on (20
21
:
£2.7millio
n
), amounte
d to £5.
9 milli
on
comp
ared w
ith £6.7 million fo
r the
previ
ous year
. Af
ter t
a
x
atio
n, the
ear
ning
s from co
ntinu
ing op
er
ation
s per
ordi
nar
y 5 p
ence sh
are wa
s a pro
ﬁt of
7
.
0pe
nce comp
are
d with 8.
5pen
ce for
the p
reviou
s year
.
Statu
tor
y pro
ﬁts of t
he Gro
up am
ounte
d
to £5.8 mil
lion co
mpa
red wi
th £7
.4million
for th
e previo
us year
. Af
ter t
a
x
ation, th
e
ear
ning
s from a
ll op
er
ation
s per o
rdina
r
y
5 pen
ce sha
re wa
s a proﬁt of 7
.
9 pen
ce
comp
ared w
ith 10.
1pence fo
r the
previo
us year
.
Dividend
In accord
ance w
ith th
e provis
ion
s of
thereﬁ
nanci
ng agre
eme
nt sign
ed in
Augu
st202
0, the bus
ine
ss is not
curre
ntly p
ermi
t
ted to pay di
vide
nds.
TheB
oard i
s the
refore not
recom
men
ding t
he paym
ent of a
divi
den
d for 20
21
/2
2 (20
20/2
1
: £nil).
Post balance shee
t ev
ents
On 29 A
pril 2022, subs
equ
ent to th
e
ba
lance s
heet d
ate, the Gro
up entere
d
into a sa
le a
nd lea
s
eback a
gree
ment fo
r a
T
echnical Plastics manuf
acturing site at
T
ucs
on, A
rizon
a, USA
. Th
e tra
ns
act
ion is
ex
pe
cte
d to compl
ete in Ju
ly 20
22 for a
purcha
s
e pri
ce of $2
.
95 mil
lion l
ess co
st
s
of $0.2 milli
on. A lea
se te
rm of ni
ne year
s
ha
s be
en agre
ed a
nd gra
nt
s the Gr
oup
the r
ight to c
ance
l any tim
e af
ter th
ree
year
s, provid
ed t
wel
ve month
s’ notice is
given. At 31 March 2022 the
re is no
rea
sona
bl
e cer
t
aint
y th
at the Gr
oup
wille
xercis
e the b
reak cla
use. The G
roup
ex
pe
ct
s to reco
gnis
e a proﬁt o
n disp
os
al
in res
pec
t of th
e site of £0.6 millio
n in the
year en
ding 31Ma
rch20
23.
78
Carclo plc
Ann
ual re
po
r
t an
d accoun
ts 2022
DIRECTORS’ REPORT
continued
Share capital
At 31 March 20
22, the Co
mpa
ny’s issue
d
sha
re cap
it
al com
pri
sed 73,4
1
9
,
1
93
ordi
nar
y sh
are
s of 5 pen
ce each. Det
ail
s
of the cha
ng
es in is
sue
d sha
re cap
it
al
dur
ing th
e year are s
et ou
t in note 27 to
the a
ccount
s. The info
rmati
on in n
ote 2
7
is inco
rp
orate
d into thi
s Dire
cto
rs’ rep
or
t
by referen
ce and i
s dee
med to fo
rm pa
r
t
of this r
epo
r
t.
Each sh
are ca
rr
ies e
qua
l righ
ts to
divi
den
ds, votin
g and re
turn o
f cap
ita
l on
the w
indi
ng up of th
e Comp
any a
s set
out i
n the Com
pany
’
s ar
t
icle
s of
a
sso
ciatio
n. There a
re no re
str
ic
tion
s on
the tr
an
sfer of s
ecur
iti
es in th
e Comp
any
and t
here a
re no re
str
ic
tion
s on votin
g
rig
hts o
r deadl
ines
, other t
han th
ose
pres
crib
ed by law o
r by the ar
ticl
es of
a
sso
ciatio
n, nor is t
he Comp
any awa
re of
any ar
ra
nge
ment b
et
ween h
old
er
s of it
s
sha
res wh
ich may resul
t in res
tr
ict
ions o
n
the transfer of securities or voting
rights.
Share capital authorities
The D
irec
tor
s were gr
ante
d a gen
era
l
auth
or
it
y at the 202
1 Annu
al Ge
ner
al
Me
eting (the “20
21 A
GM”
) to all
ot share
s
in the c
ap
ita
l of th
e Compa
ny up to an
aggr
egate no
mina
l val
ue of £1
,21
1
,4
1
7
(
repr
esenting appro
ximatel
y 33
% of t
he
iss
ued s
hare c
api
ta
l pri
or to the 202
1
AGM)
. This au
tho
rit
y is d
ue to la
pse at
the A
nnua
l Gen
er
al Me
etin
g in 20
22
(the“2
022 AGM”).
At the 202
1 AGM the Di
rec
tor
s als
o
requ
es
ted au
thor
it
y to al
lot sha
res for
ca
sh on a n
on-
pre
-em
ptive ba
sis i
n any
circums
ta
nces u
p to a ma
x
imum
aggr
egate no
mina
l am
ount of £183,548
(
repr
esenting appro
ximatel
y 5
% of
the
iss
ued s
hare c
api
ta
l pri
or to the 202
1
AGM) and to p
urcha
se up to 10% of the
Comp
any’s issu
ed ord
inar
y s
hare
s in
thema
rket.
All of t
he ab
ove shar
e cap
it
al aut
hor
it
y
res
olut
ion
s will b
e prop
os
ed for re
newa
l
of aut
hor
it
y at the 2022 AGM.
Change of control
There are no signiﬁcant agr
eements to
which t
he Com
pany is a p
ar
t
y that t
ake
ef
fec
t, al
ter or te
rmin
ate on a chan
ge of
contro
l follow
ing a t
akeover b
id, nor a
re
the
re any agre
eme
nts b
et
ween t
he
Comp
any an
d its D
ire
ctor
s o
r empl
oyees
provid
ing for co
mpe
ns
ation fo
r los
s of
ofﬁce or employment (
whether through
resignation,
purpor
ted redundanc
y or
othe
r
wise) that occur
s b
eca
use of a
ta
keove
r bi
d.
Amendment of articles
ofassociation
The Co
mpa
ny’s ar
ticle
s of a
sso
ciatio
n
may only b
e am
end
ed by sp
ecial
res
olut
ion of t
he sha
reho
lde
rs at a
general meeting
.
Appointment and replacement
of Directors
The Co
mpa
ny’s ar
ticle
s of a
sso
ciatio
n
provid
e that th
e numb
er of D
irec
tor
s
sha
ll be n
ot more th
an t
welve a
nd not
fewer
than four
, unless other
wise
deter
min
ed by the Co
mpa
ny by ordina
r
y
res
olut
ion. D
irec
tor
s may be a
ppo
inted
by an ord
inar
y r
eso
luti
on of th
e
sha
reho
lde
rs o
r by a reso
luti
on of
theB
oard.
A Dire
cto
r app
ointe
d by the B
oard d
urin
g
the yea
r mus
t retire at th
e ﬁr
st A
nnua
l
Gen
era
l Me
etin
g follow
ing hi
s or he
r
ap
point
ment a
nd su
ch Dire
cto
r is eli
gibl
e
to of
fer him o
r her
s
elf for e
le
cti
on by the
Company’
s shareholders.
Add
itio
nall
y
, th
e Compa
ny’s ar
ticl
es of
a
sso
ciatio
n provid
e that each of t
he
Dire
cto
rs w
ho are s
ubje
ct to ret
irem
ent
by rotati
on sha
ll reti
re from of
ﬁ
ce at each
Ann
ual G
ene
ral M
eet
ing. A Di
rec
tor wh
o
retire
s at an A
nnua
l Gen
era
l Me
etin
g may
be re-elected b
y the sh
areholders.
In lin
e wit
h the Com
pany
’
s ar
t
icle
s of
a
sso
ciatio
n and t
he UK Co
rp
orate
Gover
nance Co
de, all D
ire
ctor
s ret
ired
and present
ed themselv
es for
re-election
at the 202
1 AGM.
In ad
diti
on to the s
tat
utor
y p
ower
, a
Dire
cto
r may be rem
oved by ordin
ar
y
res
olut
ion of t
he sha
reho
lde
rs
.
Thea
r
ticl
es al
so s
et out t
he
circums
ta
nces w
hen a D
irec
tor mu
st
leave of
ﬁce. Thes
eincl
ude wh
ere a
Dire
cto
r resi
gns, b
ecom
es ba
nk
rupt,
isab
sen
t from th
e bus
ine
ss wi
thou
t
per
mis
sion o
r whe
re a Dire
cto
r is
removed by n
otice sig
ned by a re
quisi
te
numb
er of re
main
ing D
irec
tor
s.
Political donations
andexpenditure
No p
olit
ica
l donat
ion
s were mad
e, nor
was politic
al expen
diture incurred
during
the ﬁn
ancia
l year
.
Financial instruments
Infor
matio
n on th
e Grou
p’
s ﬁnan
cial r
isk
management objec
tives and policies and
it
s ex
pos
ure to cred
it ris
k, inte
res
t risk
,
liquidity risk an
d foreign
currency risk can
be fou
nd in note 29
. S
uch info
rmati
on is
inco
rpo
rated i
nto this D
irec
tor
s’ rep
or
t
by referen
ce and i
s dee
med to fo
rm pa
r
t
of this r
epo
r
t.
Employment policies
The G
roup’s polici
es a
s rega
rds th
e
emp
loyme
nt of dis
ab
led p
er
son
s and a
des
cript
ion of a
cti
ons th
e Grou
p ha
s
taken t
o encourage
grea
ter emplo
yee
involvem
ent in th
e bus
ine
ss are s
et ou
t
on pa
ge 20. Such infor
matio
n is
inco
rpo
rated i
nto this D
irec
tor
s’ rep
or
t
by referen
ce and i
s dee
med to fo
rm pa
r
t
of this r
epo
r
t.
Greenhouse gas emissions
andenergy consumption
Infor
matio
n on gre
enh
ous
e ga
s
emis
sio
ns an
d ene
rgy cons
umpti
on
requ
ired to b
e dis
clos
ed in th
is Dire
cto
r
s’
rep
or
t is s
et out o
n pag
es 24 and 25.
Such i
nform
ation i
s incor
po
rated in
to this
Dire
cto
rs’ rep
or
t by refe
rence a
nd is
dee
med to fo
rm pa
r
t of th
is rep
or
t.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
79
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
Engagement with employ
ees, suppliers and customers
Infor
matio
n on en
gage
ment w
ith e
mployee
s, sup
plie
rs a
nd cus
tom
er
s are req
uire
d to be dis
clos
ed i
n this D
irec
tor
s’ repo
r
t an
d are
set o
ut und
er th
e s.
1
72 st
atemen
t on pag
es 14 and 15. Such infor
matio
n is inco
rp
orate
d into thi
s Dire
cto
rs’ rep
or
t by refer
ence a
nd
is de
eme
d to form p
ar
t of t
his rep
or
t.
R
esearch and dev
elopment andfuture de
v
elopment
Infor
matio
n on fu
ture d
evelop
ment re
quir
ed to be d
isclo
se
d in this D
ire
ctor
s’ rep
or
t is s
et ou
t on pag
e 9
. Su
ch infor
matio
n is
inco
rpo
rated i
nto this D
irec
tor
s’ rep
or
t by refere
nce an
d is de
eme
d to form p
ar
t of t
his rep
or
t.
Substantial shareholdings
At the date of a
pprov
al of th
e 20
21
/22 a
nnua
l rep
or
t a
nd accou
nts, th
e Comp
any had re
ceived n
otiﬁc
ation of t
he fol
lowin
g
sha
reho
ldin
gs in e
xcess o
f 3% of its i
ssu
ed sha
re ca
pit
al p
ur
suant to t
he Di
sclo
sure Gu
ida
nce an
d T
ra
nsp
aren
cy Rul
es of th
e
Fina
ncial Co
ndu
ct Au
tho
rit
y a
s at 31 March 2022 and 29 J
une 2022:
As at
A
s at
2
9 Jun
e
31 Ma
rch
202
2
202
2
Schroder
Investment
Management
Limited
12
.
0%
12
.0
%
Janu
s
H
end
er
son
Inves
tor
s
9.
8
%
9.
8
%
La
kestre
et
C
api
ta
l
Pa
r
tne
rs
AG
Be
low 3%
Bel
ow 3%
Directors and Direct
ors’
interests
The D
irec
tor
s at the d
ate of this
Dire
cto
rs’ rep
or
t a
re lis
ted o
n page
s 4
4
and 45. Davi
d T
oo
hey ste
ppe
d down a
s a
Non
-E
xe
cutive D
irec
tor o
n 30 Ap
ril 202
1
.
No oth
er pe
rs
on se
r
ved a
s a Di
rec
tor of
the Co
mpa
ny at any time d
urin
g the
ﬁnanc
ial
y
ear
.
Additional information relating
to
Dire
cto
rs’ rem
une
ratio
n and i
nteres
t
s in
the o
rdina
r
y sha
re cap
it
al of th
e
Comp
any are i
nclud
ed in th
e Dir
ecto
r
s’
remun
er
ation re
por
t on pa
ges 57 to 75.
Biographies of Dir
ectors
The b
iogr
ap
hies o
f Dire
cto
rs re
quire
d to
be di
sclo
sed i
n this D
irec
tor
s’ rep
or
t ar
e
set o
ut on p
ages 4
4 a
nd 45. Su
ch
infor
matio
n is inco
rp
orate
d into thi
s
Dire
cto
rs’ rep
or
t by refe
rence a
nd is
dee
med to fo
rm pa
r
t of th
is rep
or
t.
Directors’ indemnities
The Co
mpa
ny’s ar
ticle
s of a
sso
ciatio
n
per
mit t
he Com
pany to in
demn
if
y any
Dire
cto
r or a
ny Direc
tor of a
ny as
so
ciated
company against any liabilit
y pursuant to
any qualify
ing third-par
ty inde
mnity
provis
ion o
r any qua
lif
yi
ng pe
nsio
n
sche
me in
demn
it
y provi
sion, o
r on any
other lawful basis.
The in
dem
nit
y prov
isio
ns entere
d into by
the Co
mpa
ny in favour of a
ll the
Dire
cto
rs we
re in force du
rin
g the year
and co
ntinu
e to be in fo
rce at the date
the D
irec
tor
s’ repo
r
t is a
pproved.
TheCo
mpa
ny als
o ta
kes out in
sur
ance
coverin
g claim
s aga
ins
t the D
irec
tor
s or
of
ﬁcer
s of th
e Comp
any an
d any
a
sso
ciated com
pany a
nd thi
s insu
ran
ce
provid
es cover in re
spe
ct o
f som
e of the
Compan
y’
s liabili
ties under t
he indemnity
provisions.
Disclosure of information
toauditor
In accord
ance w
ith S
ec
tion 41
8(2
) o
f the
Comp
ani
es Ac
t 2006, the D
irec
tor
s wh
o
hel
d of
ﬁce at the d
ate of ap
proval of t
his
Dire
cto
rs’ rep
or
t co
nﬁrm t
hat, so fa
r a
s
they a
re each aware, th
ere is n
o releva
nt
audi
t infor
matio
n of whi
ch the
Comp
any’s audi
tor is unaw
are; and each
Dire
cto
r ha
s ta
ken all th
e ste
ps that h
e
oug
ht to have taken a
s a Di
rec
tor to
make him
sel
f aware of a
ny relev
ant au
dit
infor
matio
n and to e
st
ab
lish t
hat the
Comp
any’s audi
tor is awa
re of that
information.
Information required b
y
LR9
.8.4R
There is no additional inf
ormation
requ
ired to b
e dis
clos
ed und
er LR 9
.8.4R
othe
r than t
hat dis
clos
ed in th
e Dire
cto
rs’
remuneration
report.
By ord
er of the B
oa
rd
Angie W
ak
es
Secretary
29 June 2022
80
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
The D
irec
tor
s are r
esp
onsi
ble fo
r prep
ar
ing th
e annu
al rep
or
t
and t
he Gro
up an
d pa
rent comp
any ﬁna
ncia
l st
ateme
nts in
accorda
nce wi
th ap
plic
ab
le law a
nd regu
latio
ns.
Comp
any law req
uires t
he Di
rec
tor
s to prep
are G
roup a
nd
par
ent comp
any ﬁna
ncia
l st
atemen
ts for ea
ch ﬁnan
cial year
.
Und
er that law t
hey are re
quire
d to prep
are t
he Gro
up ﬁna
ncial
st
ateme
nts in a
ccorda
nce wit
h Inter
natio
nal Fi
nancia
l Rep
or
ti
ng
Sta
nda
rds a
s ado
pted pur
su
ant to Reg
ulatio
n (EC) No
1
606/200
2 a
s it ap
plie
s in th
e Europea
n Uni
on (“
Ado
pted IFRS
s”)
and h
ave elec
ted to p
repa
re the p
arent co
mpa
ny ﬁnan
cial
st
ateme
nts in a
ccorda
nce wit
h UK acco
untin
g st
and
ards,
inclu
ding FRS 101 Reduce
d Dis
closu
re Framewo
rk.
Und
er comp
any law th
e Dire
cto
rs m
ust n
ot app
rove the
ﬁnan
cial s
tate
ment
s unl
ess t
hey are s
atis
ﬁed t
hat they gi
ve a
tru
e and f
air v
iew of th
e st
ate of af
fa
ir
s of the G
roup a
nd pa
rent
comp
any an
d of thei
r proﬁt o
r los
s for that p
er
iod. In p
repa
rin
g
each of th
e Grou
p and p
arent co
mpa
ny ﬁnan
cial s
tatem
ent
s,
the D
irec
tor
s are r
equi
red to:
•
sel
ec
t sui
ta
ble acco
untin
g pol
icies a
nd th
en a
pply t
hem
consistently;
•
make ju
dgem
ent
s and e
st
imates t
hat are rea
s
onab
le,
relev
ant, r
eliable and prudent
;
•
for th
e Group ﬁ
nan
cial s
tatem
ent
s, st
ate whet
her th
ey
havebee
n prep
ared i
n accorda
nce wi
th IFRS
s as a
dopte
d
bythe EU;
•
for th
e pare
nt comp
any ﬁna
ncial s
tate
ment
s, s
tate wh
ethe
r
ap
plic
abl
e UK a
ccountin
g st
an
dard
s have been fo
llowe
d,
subj
ec
t to any mater
ial d
epa
r
ture
s dis
clos
ed an
d ex
pla
ine
d
in the p
are
nt comp
any ﬁnan
cial s
tate
ment
s;
•
a
sse
ss th
e Grou
p and p
arent co
mpa
ny’s abili
ty to co
ntinu
e
a
s a goin
g concer
n, dis
closi
ng, a
s app
lic
abl
e, matte
rs re
lated
to goin
g conce
rn; and
•
use the going concern basis of acc
ounting unless they either
inten
d to liqui
date the G
roup o
r the p
arent co
mpa
ny or to
ceas
e op
erat
ions o
r have no real
isti
c alte
rnati
ve but to d
o so.
The D
irec
tor
s are r
esp
onsi
ble fo
r keepin
g ade
quate acco
untin
g
record
s that a
re suf
ﬁci
ent to show a
nd e
xp
lain t
he pa
rent
company’
s transactio
ns and disclose with reasonable accuracy
at any tim
e the ﬁn
ance p
osi
tion of t
he pa
rent com
pany a
nd
ena
ble t
hem to en
sure th
at its ﬁ
nanci
al st
atem
ent
s compl
y with
the Co
mpa
nies A
ct 2006. T
hey are re
spo
nsib
le for s
uch inte
rna
l
contro
l as t
hey dete
rmin
e is ne
cess
ar
y to e
nab
le th
e
prep
ar
ation of ﬁ
nan
cial s
tatem
ent
s that are f
ree f
rom mater
ial
mis
st
atemen
t, whet
her du
e to fra
ud or e
rror
, an
d have gene
ral
resp
ons
ibil
it
y for t
ak
ing su
ch step
s a
s are rea
so
nab
ly op
en to
the
m to safe
guard t
he a
ss
ets of t
he Gro
up an
d to prevent a
nd
detect fraud
and other
irregularities
.
ST
A
TEMENT OF DIRECTORS’ RESPONSIBILITIES
Und
er ap
pli
cab
le law a
nd reg
ulatio
ns, th
e Dire
cto
rs a
re al
so
resp
ons
ibl
e for pre
par
ing a s
trate
gic re
por
t, Dire
cto
rs’ re
por
t,
Dire
cto
rs’ rem
une
ratio
n repo
r
t an
d st
ateme
nt of cor
por
ate
govern
ance th
at comp
lies w
ith that l
aw and t
hos
e regul
ation
s.
The D
irec
tor
s are r
esp
onsi
ble fo
r the ma
inten
ance a
nd inte
gri
ty
of the co
rp
orate a
nd ﬁna
ncia
l infor
matio
n includ
ed o
n the
Comp
any’s websi
te. Legislat
ion in t
he UK g
overni
ng the
prep
ar
ation a
nd di
sse
minati
on of ﬁna
ncia
l st
ateme
nts may
dif
fer from legislation i
n other jurisdictions.
R
esponsibility statement of the Directors
inrespectof the annual ﬁnancial report
The D
irec
tor
s a
s at the date o
f this rep
or
t, w
hos
e nam
es a
nd
fun
cti
ons a
re set o
ut on p
ages 4
4 a
nd 45, conﬁr
m that to th
e
best of thei
r knowledge
:
•
the ﬁn
ancia
l st
atem
ents, p
repa
red i
n accorda
nce wi
th the
ap
plic
abl
e set of a
ccounti
ng st
an
dard
s, give a tr
ue a
nd fa
ir
view of t
he a
sse
ts, lia
bil
itie
s, the ﬁ
nancia
l po
siti
on a
nd proﬁ
t
or lo
ss of th
e Comp
any an
d the un
der
ta
kin
gs in
clude
d in th
e
cons
oli
dation t
a
ken as a w
hol
e
; an
d
•
the s
trate
gic re
por
t inclu
des a f
air rev
iew of th
e
develo
pme
nt an
d per
fo
rma
nce of th
e bus
ine
ss an
d the
po
siti
on of th
e issu
er an
d the un
der
ta
ki
ngs in
clude
d in th
e
cons
oli
dation t
a
ken as a w
hol
e, togeth
er wit
h a des
cript
ion
of the p
rin
cipa
l risk
s a
nd unce
r
ta
inti
es that th
ey face.
We consid
er the a
nnua
l rep
or
t a
nd accou
nts, t
aken a
s a
whole,
is
fair
, balanced and unde
rst
andable and pro
vides the
infor
matio
n nece
ss
ar
y for s
hare
hol
der
s to a
sse
ss th
e Gro
up’
s
po
siti
on an
d per
fo
rma
nce, bus
ine
ss mo
del a
nd s
trate
gy
.
By ord
er of the B
oa
rd
Nick Sanders
E
xecutive Chair
29 June 2022
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
81
Carclo plc
Annu
al rep
or
t a
nd a
ccount
s 2022
Opinion
We hav
e aud
ited th
e ﬁna
ncial s
tate
ment
s of Ca
rclo pl
c (the
‘Pare
nt Comp
any’) a
nd i
ts su
bsid
iar
ies (the ‘Gro
up’) for th
e year
end
ed 31 March 2022 whi
ch compr
ise t
he Con
sol
idated I
ncom
e
Stat
ement, C
onsolidated
Statemen
t of C
omprehensiv
e Income
,
Cons
oli
dated St
atem
ent of Fi
nan
cial Pos
itio
n, Cons
oli
dated
Statem
ent of Cha
nge
s in Equit
y
, Conso
lid
ated State
ment of
Ca
sh Flow
s, Comp
any Ba
lan
ce She
et, Comp
any State
ment of
Chan
ges i
n Equit
y an
d notes to th
e ﬁnan
cial s
tate
ment
s,
including a summary of signiﬁcant accounting
policies.
The ﬁn
ancia
l rep
or
ti
ng fr
amewo
rk th
at has b
ee
n app
lie
d in the
prep
ar
ation of t
he Gro
up ﬁna
ncia
l st
atemen
ts is a
ppl
ica
ble l
aw
and U
K
-ado
pted inter
natio
nal a
ccountin
g st
an
dard
s. The
ﬁnan
cial re
por
tin
g fra
mewor
k that ha
s b
een a
ppl
ied in t
he
prep
ar
ation of t
he Pa
rent Com
pany ﬁna
ncia
l st
ateme
nts is
ap
plic
abl
e law an
d Unite
d Ki
ngdo
m Account
ing St
and
ards
inclu
ding FRS 101 “Reduce
d Dis
clos
ure Fram
ework
” (Uni
ted
Kin
gdo
m Gen
er
ally A
ccepted Accou
nting P
rac
tice) as a
ppli
ed in
accorda
nce wi
th the p
rovisi
ons of t
he Comp
ani
es Ac
t 2006.
In our o
pin
ion:
•
the ﬁn
ancia
l st
atem
ents g
ive a tru
e and f
air v
iew of th
e
st
ateof the G
roup’s and of th
e Pare
nt Comp
any’s af
fai
rs a
s
at 31 March 2022 and of t
he Gro
up’
s proﬁt fo
r the yea
r then
ended
;
•
the G
roup ﬁn
ancia
l st
ateme
nts have be
en p
rope
rly p
repa
red
in accord
ance w
ith U
K
-adopte
d intern
ation
al accou
nting
standards
;
•
the Pa
rent Co
mpa
ny ﬁnancia
l st
atem
ent
s have been
prop
er
ly prep
are
d in accord
ance w
ith Un
ited K
ing
dom
Gen
era
lly A
ccepted Accou
nting P
rac
tice a
s ap
pli
ed in
accorda
nce wi
th the r
equi
reme
nts of th
e Comp
ani
es Ac
t
20
06;
a
n
d
•
the ﬁn
ancia
l st
atem
ents h
ave been p
repa
red in a
ccorda
nce
wit
h the re
quire
ment
s of the Co
mpa
nie
s Act 200
6.
Basis for opinion
We conduc
ted o
ur aud
it in acco
rdance w
ith I
nternat
iona
l
Sta
nda
rds on Au
diti
ng (UK
) (ISA
s (UK
)) and ap
plic
ab
le law
. Our
resp
ons
ibil
itie
s und
er tho
se s
ta
nda
rds ar
e fur
th
er de
scr
ibe
d in
the “
Audito
r’s resp
ons
ibili
tie
s for the a
udit o
f the ﬁna
ncia
l
st
ateme
nts” se
ct
ion of o
ur rep
or
t. We are in
dep
end
ent of th
e
Grou
p and t
he Pa
rent Com
pany in a
ccordan
ce with t
he eth
ica
l
requ
irem
ents t
hat are re
leva
nt to our au
dit of th
e ﬁna
ncial
st
ateme
nts in t
he UK
, inclu
din
g the FRC’
s Ethic
al Sta
nda
rd a
s
ap
plie
d to lis
ted ent
itie
s and p
ubl
ic intere
st e
ntiti
es an
d we
have fulﬁl
led o
ur othe
r ethic
al re
spo
nsib
ilit
ies in a
ccorda
nce
wit
h thes
e req
uirem
ent
s. We believe that t
he aud
it evi
dence we
have obta
ine
d is suf
ﬁ
cient a
nd ap
prop
riate to p
rovide a b
as
is for
our opinion.
Conclusions relating to going concern
In au
ditin
g the ﬁ
nancia
l st
atem
ents
, we have conclud
ed that
the d
irec
tor
s’ use of t
he goi
ng con
cern b
as
is of accoun
ting in
the p
repa
rati
on of th
e ﬁnan
cial s
tatem
ent
s is ap
prop
riate.
In ad
diti
on to tho
se mat
te
rs s
et out i
n the “Key aud
it mat
ter
s”
se
cti
on be
low
, we ide
ntiﬁe
d goi
ng conce
rn of th
e Grou
p and o
f
the Pa
rent Co
mpa
ny as a key audi
t mat
ter
.
INDEPENDENT AUDITOR’
S REPORT
to the members of Carclo plc
The G
roup a
nd th
e Parent Co
mpa
ny have previou
sly b
een l
os
s
mak
ing a
nd a
re dep
end
ent on d
ebt fa
ciliti
es fro
m it
s ban
k,
which h
ave a number o
f ﬁnan
cial covena
nts a
nd e
xpi
re in Jul
y
20
23. The d
irec
tor
s an
d mana
gem
ent team a
re curre
ntly
dis
cussi
ng an
d und
er
t
ak
ing a pro
ces
s with t
he ba
nk (
an
d
T
ru
ste
es of th
e pen
sion s
chem
e
) to agre
e new de
bt facil
itie
s
beyond J
uly 2023. The glo
bal COVID
-
1
9 pan
demi
c and w
ide
r
glo
bal e
cono
mic con
diti
ons a
ls
o continu
e to have an imp
act o
n
the G
roup’s oper
ation
s an
d resul
ts. T
herefo
re, there is a r
isk
that th
e goin
g conce
rn ba
sis o
f prep
arat
ion is n
ot app
ropr
iate
for th
e ﬁnan
cial s
tatem
ent
s and we h
ave identi
ﬁed go
ing
conce
rn a
s a key audit m
atte
r
.
The G
roup’s accountin
g pol
icy i
n resp
ec
t of goi
ng conce
rn is
set o
ut in note 1 ‘B
as
is of pre
par
atio
n’ on pag
e 9
3. Go
ing
conce
rn ha
s al
so be
en id
enti
ﬁed a
s a key judg
eme
nt in note 2
on pa
ge 10
1
.
Our a
udit p
roce
dures to ev
aluate t
he dire
cto
rs’ a
ss
ess
ment o
f
the G
roup’s and th
e Parent C
ompa
ny’s abili
t
y to continu
e to
ado
pt the go
ing co
ncern b
a
sis of acco
untin
g includ
ed b
ut were
not lim
ited
to
:
•
Und
er
t
ak
ing a
n init
ial a
ss
ess
ment at t
he pla
nni
ng st
age o
f
the au
dit to i
denti
f
y events o
r cond
itio
ns that m
ay cas
t
sign
iﬁca
nt dou
bt on th
e Grou
p’
s and t
he Pare
nt Comp
any’s
abi
lit
y to cont
inue a
s a go
ing con
cern;
•
Obtaining an unde
rst
anding of
the rele
vant
contr
ols rela
ting
to the di
rec
tor
s’ goin
g concer
n a
sse
ssm
ent;
•
Ma
kin
g enqu
irie
s of the d
irec
tor
s to und
er
st
an
d the p
eri
od
of a
sse
ssm
ent con
side
red by th
em, the a
s
sumpti
ons t
hey
consi
dere
d an
d the im
plic
atio
n of tho
se wh
en a
sse
ssi
ng the
Grou
p’
s and Pa
rent Co
mpa
ny’s future ﬁn
ancia
l pe
r
form
ance;
•
Challengi
ng the appropri
ateness
of the
directors’
ke
y
a
ssum
ption
s in the
ir ca
sh ﬂow fo
rec
as
ts, a
s d
escr
ibe
d in
note 1, b
y review
ing sup
po
r
ting a
nd co
ntrad
ic
tor
y evid
ence
in relat
ion to th
es
e key assu
mptio
ns an
d a
sse
ssi
ng the
dire
cto
rs’ con
side
ratio
n of severe b
ut pl
ausi
ble s
cena
rio
s.
This included considering mitigating actions within the
dire
cto
rs’ cont
rol;
•
T
es
tin
g the accur
acy a
nd f
unc
tio
nali
ty o
f the mo
de
l use
d to
prep
are th
e dire
cto
rs’ fore
ca
st
s;
•
As
se
ssin
g the hi
stor
ica
l accur
acy of fo
rec
as
ts p
repa
red by
the d
irec
tor
s;
•
Engaging in regular disc
ussions with the director
s regarding
the s
tat
us of ne
gotiati
ons i
n resp
ec
t of reﬁna
ncing o
ptio
ns;
•
Engaging in discussions with the bank t
o discuss and
understa
nd the
status and pr
ogress on the
reﬁ
nancing
;
•
As
se
ssin
g and ch
alle
ngi
ng key as
sumpti
ons a
nd mi
tigati
ng
ac
tion
s put in p
lace in re
sp
ons
e to C
OVID
-
1
9 and w
ide
r
global ec
onomic c
onditions
;
•
Cons
ider
ing t
he con
siste
nc
y of the di
rec
tor
s’ forec
as
ts w
ith
othe
r area
s of the ﬁ
nan
cial s
tatem
ent
s and o
ur aud
it;
•
E
xa
minin
g the f
acilit
y h
eadro
om on t
he deb
t facili
tie
s and
evaluating whether the dir
ector
s’ c
onclusion that liq
uidit
y
head
room re
mai
ns in a
ll scena
ri
os mo
del
led by th
em is
reas
ona
ble;
•
Reviewi
ng the ﬁ
nan
cial covena
nts a
nd pe
nsio
n covenant
a
sso
ciated wi
th the d
ebt fa
cilit
ies a
nd che
ckin
g the
ca
lculati
on of th
e covenant
s and p
roje
cte
d compl
ian
ce
; an
d
•
Evaluat
ing th
e app
rop
riaten
ess of t
he dir
ecto
r
s’ disclo
sure
s
in the ﬁ
nan
cial s
tatem
ent
s on go
ing con
cern.
82
Ca
rclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
INDEPENDENT AUDITOR’
S REPORT
continued
to the members of Carclo plc
Conclusions relating to going concern
continued
Ba
se
d on the wo
rk we have pe
r
form
ed, we have not id
entiﬁ
ed any mate
ria
l uncer
ta
intie
s relat
ing to event
s or con
diti
ons t
hat,
indi
vidu
all
y or coll
ec
tivel
y
, may ca
st s
igniﬁ
ca
nt doubt o
n the G
roup’s and th
e Paren
t Compa
ny’s abili
t
y to contin
ue a
s a goin
g
conce
rn for a p
eri
od of at le
as
t t
welve mo
nths f
rom wh
en the ﬁ
nan
cial s
tatem
ent
s are au
thor
is
ed for is
sue.
Our re
sp
onsi
bili
ties a
nd th
e resp
ons
ibil
itie
s of the d
irec
tor
s wit
h resp
ec
t to goi
ng conce
rn a
re des
crib
ed in t
he rel
evant s
ec
tion
s of
this repor
t.
In rel
ation to C
arclo p
lc’s repor
tin
g on how it h
as a
ppl
ied t
he UK Co
rp
orate G
overna
nce Cod
e, we have nothing mate
ria
l to add o
r
draw at
tent
ion to in r
elatio
n to the d
irec
tor
s’ st
atemen
t in the ﬁn
ancia
l st
atem
ents a
bo
ut wh
ethe
r the di
rec
tor
s consi
dere
d it
ap
prop
riate to ad
opt the g
oin
g concer
n ba
sis of a
ccountin
g.
Ke
y audit matters
Key audit m
atte
rs a
re tho
se mat
te
rs t
hat, in our p
rofes
sion
al jud
gem
ent, wer
e of mos
t sign
iﬁca
nce in o
ur aud
it of th
e ﬁnan
cial
st
ateme
nts of t
he curre
nt pe
rio
d and i
nclud
e the m
ost s
igni
ﬁca
nt as
se
sse
d ris
ks of m
ateria
l mis
st
ateme
nt (whethe
r or not du
e to
fra
ud) we id
enti
ﬁed, incl
udin
g tho
se whi
ch had th
e greates
t ef
fec
t on: the over
all au
dit s
trate
gy; the a
llo
cati
on of re
source
s in th
e
audi
t; an
d direc
ti
ng the ef
for
t
s of the e
ngag
eme
nt team. Th
ese m
at
ter
s were add
ress
ed in t
he conte
x
t of our a
udit o
f the ﬁna
ncia
l
st
ateme
nts a
s a wh
ole, an
d in for
ming o
ur op
inio
n there
on, an
d we do not p
rovide a s
epa
rate o
pini
on on th
es
e mat
ter
s.
We summa
ris
e bel
ow the key audi
t mat
ter
s in for
min
g our au
dit op
inio
n ab
ove, togethe
r with a
n over
vi
ew of the p
rinci
pal a
udit
pro
cedure
s per
for
med to ad
dres
s each mat
ter a
nd key obs
er
vat
ions a
ri
sing f
rom th
ose p
roced
ures. T
he mat
ter
s se
t out b
elow a
re
in add
itio
n to goi
ng conce
rn wh
ich, as s
et ou
t in the “Co
nclus
ions re
latin
g to goin
g concer
n” sec
tio
n ab
ove, was al
so id
enti
ﬁed a
s a
key audi
t mat
ter
.
The
se mat
ter
s, to
geth
er wi
th our ﬁn
din
gs, were co
mmuni
cated to t
hos
e charg
ed wit
h govern
ance th
roug
h our Aud
it Com
plet
ion
Rep
or
t.
Key aud
it mat
t
er
How o
ur sc
op
e add
re
ss
ed t
hi
s mat
t
er
Rev
enue recognition (
Group
)
The G
roup’s accountin
g pol
icy i
n resp
ec
t of revenue
reco
gniti
on is s
et out i
n note 1(
j) ‘Revenue re
cogni
tio
n’ on
pag
e 96. R
evenue re
cog
nitio
n on to
olin
g contr
act
s ha
s
als
o be
en id
entiﬁ
ed a
s a key judge
ment i
n note 2 on p
age
10
2. Revenu
e recog
nise
d on to
olin
g contr
ac
ts in t
he year
is £
25.
1m as set o
ut in n
ote 6 on pag
e 10
7
.
The
re is a pre
sume
d sign
iﬁca
nt ri
sk of fr
aud in reve
nue
reco
gniti
on du
e to the p
otentia
l to inap
prop
riate
ly shi
f
t
the ti
ming a
nd b
as
is of revenue r
ecog
niti
on, a
s well a
s
the p
otentia
l to reco
rd ﬁct
itio
us revenu
es or f
ail to re
cord
ac
tual reve
nues
.
For the G
roup, we cons
ide
r this r
isk to a
ris
e as fo
llows:
•
In rel
ation to to
olin
g revenue:
•
too
ling reven
ue may not be re
cog
nise
d on a
n
ap
prop
riate ba
si
s and i
n line w
ith th
e term
s of
underlying contract
s or agreements with customers;
and
•
any cont
rac
t mo
diﬁc
ation
s or am
end
ment
s may not be
accounte
d for on a
n ap
prop
riate ba
si
s, inclu
ding i
n line
wit
h the re
quire
ment
s of IFRS 15.
•
The
re is a ris
k that revenu
e is reco
gnis
ed in t
he inco
rre
ct
account
ing p
eri
od, due to t
he pote
ntial to i
nap
prop
riatel
y
shif
t the t
iming a
nd b
as
is of revenu
e recog
niti
on,
inclu
ding t
he reco
gni
tion of reve
nue b
efore se
r
vice
s or
pro
duc
ts have be
en prov
ide
d to custo
mer
s.
As reve
nue is a key be
nchma
rk in a u
ser
’s ass
ess
ment o
f
the p
er
for
ma
nce of the G
roup a
nd gi
ven the ju
dge
ment
involved i
n deter
mini
ng the a
mo
unt of revenu
e to be
reco
gnis
ed on to
oli
ng contr
ac
ts, we have id
entiﬁ
ed
revenue re
cogn
itio
n as a key au
dit mat
te
r
.
Our response
Our a
udit p
roce
dures i
nclud
ed, bu
t were not li
mite
d to
:
•
in relat
ion to to
olin
g revenue:
•
review
ing th
e ba
sis of reven
ue reco
gnit
ion o
n tool
ing
contr
ac
ts, in
cludi
ng ma
nage
ment
’s ass
es
sme
nt of the
per
for
mance o
bli
gatio
ns an
d the a
mount o
f revenue
reco
gnis
ed wi
th refere
nce to und
erl
ying
documentation;
•
reviewing c
ontract modiﬁcations and the a
ssociated
accounting
treatment f
or changes in contract re
venue
;
•
per
forming subst
antive analytica
l re
view procedures,
inclu
ding s
et
tin
g an e
xp
ec
tati
on for revenu
e ba
se
d on
ca
sh re
ceived in b
ank s
t
atement
s an
d comp
ari
ng thi
s to
ac
tual reve
nue re
cogni
sed i
n the year
;
•
substa
ntive sample testing of re
venue transaction
s either
sid
e of the year e
nd. For each i
tem se
lec
ted, we a
ss
ess
ed
the ti
ming o
f revenue re
cogni
tio
n by reference to
underlying suppor
ting do
cumentation
; and
•
review
ing th
e audi
t work co
mpl
eted on reve
nue by the
comp
one
nt audi
tor
s in accord
ance w
ith ou
r ins
tru
cti
ons.
Ou
r obs
er
va
ti
on
s
Ba
se
d on the a
udi
t proce
dure
s outl
ined a
bove, we
consi
der t
hat the G
roup’s revenue reco
gnit
ion p
olic
y is
ap
prop
riate, and we a
re sat
isﬁe
d that reven
ue ha
s be
en
reco
gnis
ed in li
ne wit
h the s
tate
d account
ing p
olic
y
.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
83
Carclo plc
An
nual r
epo
r
t an
d accou
nts 2022
Key Audi
t Mat
te
r
How o
ur sc
op
e add
re
ss
ed t
hi
s mat
t
er
V
aluation and impairment of
intangible assets (Group
)
Inclu
ded o
n the Co
nso
lidate
d Statem
ent of Fi
nanci
al
Posit
ion o
n page 90 i
s £2
2.
7
m of inta
ngib
le a
ss
ets, o
f
which £
22m re
lates to go
od
will a
llo
cated to t
he T
ech
nica
l
Pla
st
ics ca
sh g
ene
rati
ng uni
t (C
G
U)
.
The G
roup’s accountin
g pol
icies i
n resp
ec
t of go
odw
ill
ares
et out i
n note 1(
c) ‘Good
will
’ on pag
e 95 and n
ote 1
(v
)
‘Imp
air
men
t’ o
n page 100. Imp
air
men
t of goo
dwi
ll ha
s als
o
be
en ide
ntiﬁe
d a
s a key judge
ment i
n note 2 on pa
ge 10
1
.
The di
rec
tor
s are re
quire
d to pe
r
form a
n imp
air
ment
review in re
sp
ec
t of the g
ood
will o
n an a
nnua
l ba
sis o
r
whe
re the
re are in
dicato
rs of i
mpa
irm
ent. Thi
s involves
deter
mini
ng th
e recovera
bl
e amo
unt of th
e C
GU to whi
ch
the g
ood
will h
as b
een a
llo
cate
d and co
mpa
rin
g it aga
ins
t
it
s car
r
yin
g valu
e, with a
ny impa
irm
ent lo
ss ﬁr
st a
llo
cate
d
to redu
ce the c
arr
y
ing va
lue o
f the go
od
will a
nd the
n to
redu
ce the c
arr
ying a
mo
unt of the ot
her a
ss
ets i
n the
CGU on a pro
-rat
a ba
sis.
As d
iscl
ose
d in note 15 on page 1
1
4, the re
coverab
le
am
ount is b
as
ed o
n a cal
culatio
n of val
ue in us
e.
The c
alcul
ation of v
alu
e in us
e is subj
ec
tive an
d involves
signiﬁcant judgement and estimation, including cash ﬂow
proj
ec
tion
s and d
iscou
nt rates
. There
fore, there i
s a ris
k
that th
e as
sumpt
ion
s use
d in the c
al
culatio
n of valu
e in
use a
re not a
ppro
pri
ate, result
ing in a
n overs
tate
ment of
the re
covera
ble a
mou
nt of the CGU an
d an unre
cogn
ise
d
impairm
ent of in
tan
gible ass
ets.
Accordi
ngly
, we ident
iﬁed t
he va
luatio
n an
d impa
irm
ent
of int
ang
ibl
e as
set
s a
s a key audit mat
te
r
.
Our response
Our a
udit p
roce
dures i
nclud
ed, bu
t were not li
mite
d to
:
•
obtaining an
d revie
wing manageme
nt’s
impair
ment
review;
•
reviewing and e
valuating the basis for grouping entities
toge
ther a
s a CGU in th
e impa
irm
ent revi
ew;
•
reviewing the
arithmetic accuracy of the impairment
model prepared
by m
anagement,
includ
ing chec
king the
data u
se
d in the c
alcu
lation o
f valu
e in us
e;
•
consi
der
ing t
he ap
prop
riaten
es
s of the key a
ssum
ption
s
use
d in th
e cal
culatio
n of val
ue in u
se, bein
g the c
as
h ﬂow
projections, estimated growth rates and discount rat
es.
This i
nclud
ed en
gagi
ng an i
nterna
l ex
pe
r
t to eval
uate the
discount rates
applied by management;
•
reviewing the
sensitivit
y analysis per
formed by
man
agem
ent in t
heir a
ss
es
sme
nt; and
•
a
sse
ssin
g whet
her t
he rel
evant di
sclo
sure
s in the ﬁ
nancia
l
st
atement
s are rea
son
abl
e.
Our observations
Ba
se
d on the a
udi
t proce
dure
s outl
ined a
bove, we
consi
der t
hat the va
luat
ion of int
an
gib
le a
sse
ts, in
cludi
ng
goo
dwi
ll all
oc
ated to the T
echnic
al Pl
as
tic
s CGU
, is
rea
sona
bl
e and t
hat man
agem
ent
’s conclusi
on that t
here
is no im
pai
rme
nt of the i
nta
ngib
le a
ss
ets i
s reas
ona
bl
e.
Valua
ti
on a
nd im
pa
irm
ent o
f inves
tm
en
t in su
bs
idi
ar
ie
s
(P
arent Compan
y
)
The c
arr
yin
g valu
e of inves
tment
s in su
bsi
diar
y
und
er
t
ak
ings o
n the Co
mpa
ny Bala
nce Sh
eet o
n page140
i
s £
93.
8
m.
As s
et ou
t in the a
ccountin
g po
licy i
n note 35(d) on
pag
e1
4
4, investm
ent
s are he
ld at cos
t le
ss provi
sion
s for
impairment wher
e appropria
te
.
There is a risk tha
t inv
estments in subsidiar
y under
ta
kings
are im
pai
red wh
ere th
ere are i
ndic
ator
s of imp
air
ment i
n
the underlying subsidiarie
s not
identiﬁed by management,
inclu
ding a r
isk t
hat the n
et as
set
s or ea
rni
ngs d
o not
support the carr
ying value
.
As s
et ou
t in note 39 on p
age 146, val
ue in u
se mo
del
s
have bee
n use
d by mana
gem
ent to a
sse
ss th
e recover
abl
e
amount of in
vestments in the material trading subsidiaries.
The c
alcul
ation of v
alu
e in us
e is subj
ec
tive an
d involves
signiﬁcant judgement and estimation, including in r
elation
to proje
cte
d ca
sh ﬂ
ows an
d dis
count rate
s.
As a re
sul
t of the f
acto
rs o
utli
ned a
bove, as we
ll a
s the
sign
iﬁca
nce of th
is ba
lance i
n resp
ec
t of the P
arent
Comp
any ﬁna
ncial s
t
atement
s, we id
entiﬁ
ed th
e valu
ation
and i
mpa
irm
ent of su
bsid
iar
ies a
s a key audi
tmat
ter
.
Our response
Our a
udit p
roce
dures i
nclud
ed, bu
t were not li
mite
d to
:
•
obtaining an
d revie
wing manageme
nt’s
impair
ment
rev
i
ew
s;
•
review
ing th
e unde
rly
ing a
ss
umptio
ns us
ed in t
he
impa
ir
ment rev
iews a
nd a
ss
essi
ng wh
ethe
r the
se are
reas
ona
ble;
•
tes
ting i
ndiv
idua
l invest
ment
s for f
ur
th
er ind
icator
s of
impairment,
includi
ng by
comparing t
he carrying amount
of the i
nvestm
ent to th
e net a
ss
ets/
liab
ilit
ies of t
he
relate
d subs
idia
r
y (be
ing a
n app
roxi
matio
n of the
minimum recov
erable a
mount
);
and
•
a
sse
ssin
g whet
her t
he rel
evant di
sclo
sure
s in the ﬁ
nancia
l
st
atement
s are rea
son
abl
e.
Our observations
Ba
se
d on the a
udi
t proce
dure
s outl
ined a
bove, we
consider that the
valuation of in
vestments in subsidiaries
is rea
so
nab
le, and th
at mana
gem
ent
’s conclusi
on that
the
re is no im
pai
rme
nt of the i
nvestm
ent in su
bsi
diar
ies
balanc
e i
s re
asonable
.
84
Ca
rclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
INDEPENDENT AUDITOR’
S REPORT
continued
to the members of Carclo plc
Our application of materiality and an o
vervie
w of the scope of our audit
The s
cope of o
ur au
dit wa
s inﬂu
ence
d by our a
ppli
catio
n of mater
ial
it
y
. We set cer
t
ai
n quant
it
ative thre
sho
lds fo
r mater
iali
ty
.
The
se, toge
ther w
ith qu
ali
tati
ve consid
er
ation
s, help
ed u
s to deter
mine t
he sco
pe of o
ur aud
it an
d the natu
re, timin
g and e
x
tent of
our au
dit p
roced
ures o
n the in
divi
dua
l ﬁnan
cial s
tatem
ent li
ne item
s an
d discl
osure
s an
d in eval
uatin
g the ef
fe
ct of m
iss
tatem
ent
s,
both i
ndiv
idua
lly a
nd on th
e ﬁna
ncial s
tate
ment
s a
s a who
le. Ba
se
d on our p
rofes
siona
l jud
gem
ent, we de
termi
ned m
ateria
lit
y for
the ﬁn
ancia
l st
atem
ents a
s a wh
ole a
s fo
llows:
Group materiality
Over
all mater
iality
£
1
,11
6
k
How we d
ete
rm
ine
d it
We determ
ined over
al
l materi
alit
y to b
e 1
% of the G
roup’s rev
enu
e.
Rationale for
benchmark applied
Revenu
e has b
ee
n ide
ntiﬁe
d as t
he pr
incip
al b
enchm
ark w
ithi
n the G
roup
ﬁnan
cial s
tate
ment
s a
s we consi
der t
hat the G
roup’s revenue rema
ins a key
mea
sure of t
he pe
r
for
man
ce of the G
roup a
nd is a mo
re st
ab
le be
nchma
rk
on wh
ich to set mate
ria
lit
y com
pare
d to othe
r mea
sure
s. For ex
amp
le,
proﬁt
/l
os
s before t
a
x
atio
n ﬂuc
tuates a
nd ha
s b
een s
igniﬁ
cant
ly imp
ac
ted
by a numb
er of on
e-
of
f item
s such a
s res
tr
uc
turi
ng that have t
aken pla
ce
over the la
s
t few year
s.
Performa
nce materi
alit
y
Per
fo
rma
nce mater
ial
it
y is set to r
educe to a
n ap
prop
riatel
y low level t
he
prob
abi
lit
y that t
he ag
gregate of u
ncor
rec
ted an
d und
etec
ted
mis
st
atemen
ts in t
he ﬁna
ncial s
t
atement
s ex
ceed
s materi
ali
ty fo
r the
ﬁnan
cial s
tate
ment
s a
s a who
le. Having co
nsid
ere
d fac
tor
s such a
s the
Grou
p’
s contro
l environ
ment a
nd th
at it is th
e third yea
r of our au
dit
eng
agem
ent, we s
et per
form
ance m
ateria
lit
y at £669k which is 60% of
ov
erall mat
eriality
.
Reporting threshold
We agreed w
ith th
e dire
cto
rs t
hat we would re
po
r
t to the
m miss
tate
ment
s
ide
ntiﬁe
d dur
ing ou
r audi
t ab
ove £33k a
s well a
s mi
sst
atem
ents b
el
ow that
am
ount that, i
n our vi
ew
, war
ran
ted rep
or
ti
ng for qu
ali
tati
ve reas
ons.
The r
ang
e of overa
ll mater
ial
it
y acros
s comp
one
nts, a
udite
d to the l
ower of st
atu
tor
y aud
it mater
ial
it
y an
d mater
iali
ty c
ap
ped fo
r
Grou
p audi
t pur
pos
es, w
as b
et
ween £150k and £850
k, be
ing al
l bel
ow Grou
p overa
ll mater
iali
t
y
.
Parent Compan
y materiality
Over
all mater
iality
£12
7
k
How we d
ete
rm
ine
d it
We determ
ined over
al
l materi
alit
y to b
e 1
% of net lia
bili
tie
s.
Rationale for
benchmark applied
Ne
t liab
ilit
ies is co
nsid
ered t
he mo
st a
ppro
pri
ate ben
chmar
k a
s the Pa
rent
Comp
any is not t
radi
ng an
d mai
nly ho
lds i
nvestm
ent
s in sub
sidia
ri
es a
s well
a
s intercom
pany ba
la
nces, b
ank
ing f
acilit
ies a
nd a deﬁ
ned b
eneﬁ
t pen
sio
n
scheme liabilit
y
.
Performa
nce materi
alit
y
Per
fo
rma
nce mater
ial
it
y is set to r
educe to a
n ap
prop
riatel
y low level t
he
prob
abi
lit
y that t
he ag
gregate of u
ncor
rec
ted an
d und
etec
ted
mis
st
atemen
ts in t
he ﬁna
ncial s
t
atement
s ex
ceed
s materi
ali
ty fo
r the
ﬁnan
cial s
tate
ment
s a
s a who
le. Having co
nsid
ere
d fac
tor
s such a
s the
Pare
nt Comp
any’s control e
nviron
ment a
nd that i
t is the t
hird year of o
ur
audi
t eng
agem
ent, we s
et per
form
ance m
ateria
lit
y at £7
6k wh
ich is 60% of
ov
erall mat
eriality
.
Reporting threshold
We agreed w
ith th
e dire
cto
rs t
hat we would re
po
r
t to the
m miss
tate
ment
s
ide
ntiﬁe
d dur
ing ou
r audi
t ab
ove £3k a
s well a
s mis
st
ateme
nts b
elow t
hat
am
ount that, i
n our vi
ew
, war
ran
ted rep
or
ti
ng for qu
ali
tati
ve reas
ons.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
85
Carclo plc
Annu
al re
po
r
t an
d accoun
ts 2022
As p
ar
t of d
esi
gning o
ur au
dit, we a
ss
ess
ed th
e ris
k of mater
ial
mis
st
atemen
t in the ﬁn
ancia
l st
atem
ents
, wheth
er du
e to fra
ud
or er
ror
, and t
hen d
esig
ned a
nd p
er
for
med a
udit p
roce
dures
resp
ons
ive to tho
se ri
sk
s. In pa
r
ticu
lar
, we loo
ked at whe
re the
directors made subjec
tive j
udgement
s such as making
assumptions on signiﬁcant accounting estimates.
We tail
ored t
he sco
pe of o
ur audi
t to ens
ure that we p
er
for
med
suf
ﬁci
ent wor
k to be a
ble to g
ive an op
inio
n on th
e ﬁnan
cial
st
ateme
nts a
s a wh
ole. We use
d the ou
tpu
ts of a r
isk
a
sse
ssm
ent, ou
r unde
rs
ta
ndi
ng of th
e Grou
p and t
he Pare
nt
Comp
any
, th
eir env
ironm
ent, cont
rols, a
nd cr
itic
al bu
sin
ess
pro
cess
es, to con
side
r qua
lit
ative fac
tor
s in o
rder to e
nsure
that we obt
ai
ned s
uf
ﬁcie
nt coverag
e across a
ll ﬁna
ncia
l
statement li
ne items.
Our G
roup a
udit s
cop
e includ
ed a
n audi
t of the G
roup a
nd th
e
Pare
nt Comp
any ﬁna
ncial s
tate
ment
s of Ca
rclo pl
c. Ba
se
d on
our r
isk a
ss
ess
ment, o
f the G
roup’s nine rep
or
ti
ng
comp
one
nts, s
even were su
bjec
t to fu
ll scop
e aud
its fo
r Grou
p
pur
pos
es a
nd t
wo were su
bje
ct to sp
eciﬁ
ed ri
sk-focuse
d audi
t
procedures. F
or the other non-trading entities within the
Group,
we per
form
ed d
esk
top a
na
ly
tic
al pro
cedu
res at an a
ggre
gated
Grou
p level to a
ss
ess w
heth
er th
ere were a
ny signiﬁ
can
t risk
s
of mat
erial misst
atement within these entities.
In ad
diti
on to the P
arent Co
mpa
ny ﬁnan
cial s
tatem
ent
s, which
were sub
jec
t to ful
l scop
e aud
it, the co
mpo
nent
s wi
thin th
e
scop
e of our a
udi
t work acco
unted fo
r the fol
lowin
g
perce
nta
ges of t
he Gro
up’
s resu
lts:
N
umb
er o
f
T
ota
l Gro
up
G
rou
p proﬁ
t
T
ota
l Gro
up
com
po
nen
ts
revenu
e
befo
re t
a
x
as
se
ts
Full scop
e
8
91
%
66
%
91
%
Ris
k ba
sed a
udi
t
pro
cedure
s
2
9
% 34%
9%
T
ot
a
l
9 100% 100% 100%
The au
dit of t
he UK co
mpo
nent
s, in
cludin
g the au
dit of t
he
Pare
nt Comp
any
, were u
nde
r
ta
ken by the G
roup au
dit tea
m.
The G
roup au
dit tea
m ins
tru
cte
d comp
one
nt audi
tor
s to ca
rr
y
out a
udit p
roce
dures i
n relati
on to comp
on
ents n
ot ba
se
d in
the U
K, coveri
ng th
e US, Chin
a, Ind
ia, Fran
ce and t
he Cze
ch
Republic. The instructions covered
the signiﬁcant areas of audit
focus i
nclud
ing, wh
ere rel
evant, t
he key audit m
at
ter
s det
ail
ed
ab
ove and th
e infor
matio
n to be rep
or
te
d back to th
e Grou
p
audi
t team. Th
e Grou
p audi
t team a
pproved a
ll of th
e sign
iﬁca
nt
component ma
teriality lev
els.
As par
t of
the proc
ess, the
Group aud
it te
am held tele
phone
confere
nce me
eting
s wit
h the com
po
nent au
dito
rs at b
oth the
pla
nnin
g and co
mpl
etio
n st
age, a
s well a
s dur
ing th
e aud
it
ﬁel
dwor
k as re
quire
d. At the
se me
etin
gs, the G
roup a
udit tea
m
dis
cuss
ed th
e audi
t str
ategy a
nd th
e ﬁndi
ngs re
por
te
d to the
Grou
p audi
t team by th
e comp
one
nt audi
tor
s, wit
h any fur
t
her
work r
equi
red by the G
roup a
udit tea
m the
n bei
ng pe
r
form
ed
by the com
pon
ent au
ditor, as requ
ired. Th
e Grou
p audi
t team
reviewe
d key worki
ng pa
per
s pr
epa
red by the co
mpo
nent
aud
itor
s.
At the Pa
rent Com
pany l
evel, we als
o teste
d the co
nso
lidat
ion
pro
cess a
nd ca
rr
ied o
ut ana
ly
ti
cal p
roce
dures to co
nﬁrm o
ur
conclu
sio
n that the
re were no s
igni
ﬁca
nt risk
s of m
ateria
l
misstatement of the aggregated
ﬁnancial information.
Other information
The oth
er info
rmati
on com
pri
ses t
he infor
matio
n inclu
ded i
n
the a
nnua
l rep
or
t oth
er tha
n the ﬁn
ancia
l st
ateme
nts a
nd ou
r
audi
tor
’
s rep
or
t th
ereo
n. The di
rec
tor
s are re
spo
nsib
le for t
he
othe
r inform
ation. O
ur op
inio
n on th
e ﬁnan
cial s
tatem
ent
s
doe
s not cover th
e other i
nform
ation a
nd, exce
pt to the e
x
tent
othe
r
wise e
x
plici
tly s
tated i
n our re
por
t, we d
o not ex
pre
ss a
ny
form o
f assurance
concl
usion ther
eon.
Our re
sp
onsi
bili
ty i
s to read th
e other i
nformat
ion a
nd,
indoi
ngso, con
side
r whet
her th
e othe
r infor
matio
n is
mater
iall
y incon
sis
tent wi
th the ﬁn
ancia
l st
atem
ents o
r our
kn
owle
dge o
bta
ined i
n the cou
rs
e of aud
it or oth
er
wi
se
ap
pear
s to b
e materi
ally m
iss
tate
d. If we ide
ntif
y su
ch mater
ial
inco
nsis
tencie
s or a
ppa
rent mate
ria
l miss
t
atement
s, we a
re
requ
ired to d
eterm
ine wh
ethe
r this g
ives ri
se to a mate
ria
l
mis
st
atemen
t in the ﬁn
ancia
l st
atem
ents t
hem
sel
ves.
If
,ba
se
don th
e work we h
ave per
for
med, we co
nclud
e that
there is a ma
terial misstatement of this o
ther information,
we are re
quire
d to rep
or
t that f
act
.
We hav
e nothi
ng to rep
or
t in t
his re
gard.
Opinions on other matters prescribed b
y the
Companies Act 2006
In our o
pin
ion, th
e par
t o
f the di
rec
tor
s’ remune
rati
on rep
or
t to
be au
dite
d ha
s bee
n prop
er
ly prep
are
d in accord
ance w
ith th
e
Comp
ani
es Ac
t 2006.
In our o
pin
ion, ba
s
ed on th
e wor
k unde
r
ta
ken in th
e cour
se of
the audit:
•
the in
format
ion gi
ven in th
e Strateg
ic Rep
or
t a
nd the
Dire
cto
rs’ Rep
or
t fo
r the ﬁna
ncia
l year for w
hich the ﬁ
nan
cial
st
ateme
nts a
re prep
are
d is cons
iste
nt wit
h the ﬁna
ncia
l
st
ateme
nts a
nd th
ose re
por
ts h
ave been p
repa
red in
accordance with applicable le
gal requirements;
•
the in
format
ion a
bou
t inter
nal co
ntrol a
nd ri
sk ma
nage
ment
sys
tems i
n relati
on to ﬁna
ncia
l repo
r
tin
g proce
sse
s an
d
ab
out s
hare c
api
ta
l str
uc
ture
s, given in co
mpl
iance w
ith
rul
es 7
.2.5 an
d 7
.2
.6 in th
e Dis
closu
re Gui
dan
ce and
T
ra
nsp
aren
cy Rul
es s
ourceb
oo
k made by th
e Fina
ncial
Cond
uc
t Autho
ri
ty (the FC
A Rule
s)
, is consi
stent w
ith t
he
ﬁnan
cial s
tate
ment
s an
d ha
s bee
n prep
are
d in accord
ance
wit
h app
lica
bl
e leg
al req
uirem
ent
s; and
•
infor
matio
n ab
out th
e Pare
nt Comp
any’s corp
orate
governance c
ode and prac
tices and about its administrative,
management and super
visor
y bodie
s and their committees
comp
lies w
ith r
ule
s 7
.2.2
, 7
.2.3 and 7
.2.
7 of the FC
A ru
les.
Matters on which we ar
e required to report
bye
x
ception
In lig
ht of the k
nowl
edg
e an
d unde
rs
ta
ndi
ng of th
e Grou
p and
the Pa
rent Co
mpa
ny and th
eir envi
ronm
ent obt
ai
ned in t
he
cour
se of t
he aud
it, we have not id
entiﬁ
ed mater
ial
mis
st
ateme
nts i
n;
•
the Str
ategi
c Repo
r
t or th
e Dire
cto
rs’ Rep
or
t; o
r
•
the in
format
ion a
bou
t inter
nal co
ntrol a
nd ri
sk ma
nage
ment
sys
tems i
n relati
on to ﬁna
ncia
l repo
r
tin
g proce
sse
s an
d
ab
out s
hare c
api
ta
l str
uc
ture
s, given in co
mpl
iance w
ith
rul
es 7
.2.5 an
d 7
.2
.6 of the FC
A Rule
s.
86
C
arclo plc
An
nua
l repo
r
t an
d accou
nts 2022
INDEPENDENT AUDITOR’
S REPORT
continued
to the members of Carclo plc
Matters on which we ar
e required to report
bye
x
ception
continued
We hav
e nothi
ng to rep
or
t in r
esp
ec
t of the fo
llowin
g mat
ter
s in
relati
on to whi
ch the Co
mpa
nies A
ct 2006 re
quir
es us to re
por
t
to you if, in our opi
nion:
•
ade
quate accou
nting r
ecord
s have not bee
n kept by the
Pare
nt Comp
any
, or r
etur
ns ade
quate for o
ur aud
it have not
be
en recei
ved fro
m bra
nche
s not vi
sited by u
s; or
•
the Pa
rent Co
mpa
ny ﬁnancia
l st
atem
ent
s and t
he pa
r
t of the
dire
cto
rs’ remu
ner
atio
n repo
r
t to be au
dite
d are not i
n
agreement with the acc
ounting records and re
turns; or
•
cer
t
ain d
isclo
sure
s of dire
cto
rs’ rem
uner
atio
n spe
ciﬁed by
law are n
ot made; or
•
we have not receive
d all t
he infor
mati
on an
d ex
pla
natio
ns
we requ
ire for ou
r audi
t; or
•
a corp
or
ate governa
nce s
tatem
ent ha
s not b
een p
repa
red
by the Pa
rent Com
pany
.
Corporat
e gov
ernance statement
The Li
sti
ng Rule
s requ
ire us to revi
ew the di
rec
tor
s’ st
atement
in relat
ion to g
oing co
ncer
n, long
er-term via
bili
ty a
nd th
at par
t
of the Co
rp
orate G
overna
nce State
ment re
latin
g to Carcl
o plc’s
comp
lian
ce with t
he provi
sion
s of the U
K Cor
por
ate
Gover
nance St
ateme
nt sp
eciﬁe
d for our r
eview
.
Ba
se
d on the wo
rk un
der
t
aken a
s p
ar
t of o
ur audi
t, we have
conclu
ded t
hat each of th
e follow
ing e
lem
ents o
f the Cor
po
rate
Gover
nance St
ateme
nt is mate
rial
ly cons
iste
nt wit
h the
ﬁnan
cial s
tate
ment
s or ou
r kn
owled
ge ob
ta
ined d
urin
g the
audi
t:
•
Dire
cto
rs’ s
tatem
ent wi
th reg
ards t
he ap
prop
riate
nes
s of
ado
pting t
he goi
ng con
cern b
as
is of accoun
ting a
nd a
ny
mater
ial un
cer
t
aint
ies id
enti
ﬁed s
et out o
n pag
e 80;
•
Dire
cto
rs’ e
xp
lanat
ion a
s to it
s as
se
ssm
ent of th
e enti
ty
’s
pros
pe
ct
s, the p
eri
od th
is a
sse
ssm
ent cover
s an
d why they
per
io
d is ap
prop
riate se
t out o
n page
s 39 an
d 40;
•
Dire
cto
rs’ s
tatem
ent on f
air, balan
ced an
d und
er
st
and
ab
le
set o
ut on p
age 80;
•
Boa
rd’s conﬁrm
ation t
hat it ha
s ca
rr
ied ou
t a rob
ust
a
sse
ssm
ent of th
e e-m
ergi
ng an
d pri
ncipa
l ris
ks s
et ou
t on
pag
es 31 to 38;
•
The s
ec
tion o
f the a
nnua
l repo
r
t that d
escr
ibe
s the rev
iew of
ef
fec
tiven
es
s of ris
k mana
gem
ent an
d inter
nal con
trol
sys
tems s
et ou
t on pag
e 48; an
d;
•
The s
ec
tion d
es
cribi
ng th
e work of t
he Aud
it Comm
it
tee s
et
out o
n pag
es 50 to 53.
R
esponsibilities of Directors
As e
xp
lai
ned m
ore fu
lly in th
e dire
cto
rs’ res
po
nsibi
liti
es
st
ateme
nt set o
ut on p
age 80, th
e direc
tor
s ar
e resp
ons
ible fo
r
the p
repa
rati
on of th
e ﬁnan
cial s
tatem
ent
s and fo
r bei
ng
sati
sﬁe
d that th
ey give a tru
e an
d fai
r view, and for su
ch intern
al
contro
l as t
he dir
ecto
r
s deter
mine i
s nece
ss
ar
y to en
abl
e the
prep
ar
ation of ﬁ
nan
cial s
tatem
ent
s that are f
ree f
rom mater
ial
mis
st
atemen
t, whet
her du
e to fra
ud or e
rror
.
In pre
par
ing t
he ﬁna
ncia
l st
atemen
ts, th
e dire
ctor
s a
re
resp
ons
ibl
e for a
sse
ssi
ng the G
roup’s and th
e Pare
nt
Comp
any’s abil
it
y to conti
nue a
s a goi
ng conce
rn, dis
clos
ing,
a
sapp
lica
bl
e, matte
rs re
lated to g
oing co
ncer
n and u
sing t
he
going concern basis of acc
ounting unless the directors either
inten
d to liqui
date the G
roup o
r the Pa
rent Co
mpa
ny or to
ceas
e op
erat
ions
, or have no real
ist
ic al
ternat
ive but to d
o so.
Auditor’
s responsibilities f
or the audit of the
ﬁnancialstatements
Our o
bje
cti
ves are to o
bta
in rea
so
nab
le a
ssur
an
ce abo
ut
whet
her t
he ﬁna
ncial s
tate
ment
s a
s a who
le a
re free f
rom
mater
ial mi
ss
tatem
ent, wh
ethe
r due to fr
aud o
r err
or
, a
nd to
iss
ue an a
udito
r’s repo
r
t that in
clude
s our o
pini
on. Rea
sona
bl
e
a
ssur
ance i
s a high l
evel of a
ssur
an
ce but is n
ot a guar
ante
e
that a
n audi
t condu
cte
d in accord
ance w
ith IS
As (U
K) w
ill
alw
ays detec
t a mater
ial m
iss
tate
ment w
hen it e
x
ist
s.
Mis
st
ateme
nts c
an ar
is
e from f
raud o
r er
ror an
d are con
sid
ered
mater
ial if, indiv
idua
lly o
r in the a
ggre
gate, they coul
d
rea
sona
bl
y be ex
pe
cte
d to inﬂu
ence th
e econ
omic d
ecis
ions
ofus
er
s ta
ken on the b
a
sis of th
ese ﬁ
nancia
l st
atem
ent
s.
The e
x
tent to wh
ich our p
roced
ures a
re ca
pab
le of de
tec
ting
irregulari
ties, including fraud is detailed b
elow
.
Irregular
ities, including fraud, are instances of non-comp
liance
wit
h laws an
d regu
latio
ns. We desi
gn pro
cedure
s in lin
e with
our re
spo
nsib
ilit
ies, o
utli
ned a
bove, to detec
t mater
ial
misst
atements in respect of irregulari
ties, including fraud.
Ba
se
d on our u
nde
rs
ta
ndi
ng of the G
roup a
nd th
e Pare
nt
Comp
any an
d thei
r indu
str
y
, we consi
dere
d that
non
-com
plia
nce wi
th the fo
llowi
ng laws a
nd re
gulati
ons m
ight
have a materia
l ef
fec
t on t
he ﬁna
ncial s
t
atement
s: emp
loyme
nt
regu
latio
n, heal
th an
d safet
y re
gulati
on, ant
i-br
ib
er
y
, co
rru
ption
and fraud,
anti-mone
y laundering
regula
tion,
modern sla
very
,
GDPR and
non-complianc
e with
implementa
tion o
f
govern
ment s
upp
or
t sch
eme
s relati
ng to COVID
-
19
.
T
o he
lp us id
enti
f
y ins
ta
nces of n
on-
comp
lian
ce with t
hes
e laws
and r
egul
ation
s, and i
n ide
ntif
yi
ng an
d as
se
ssin
g the r
isk
s of
mater
ial mi
ss
tatem
ent in re
spe
ct to n
on-
comp
lian
ce, our
pro
cedure
s inclu
ded, b
ut were n
ot limite
d to:
•
Gai
ning a
n und
er
st
an
ding of t
he le
gal a
nd re
gulator
y
fra
mewo
rk ap
pli
cab
le to th
e Grou
p and t
he Par
ent Comp
any
,
the in
dus
tr
y in w
hich th
ey ope
rate, and t
he st
ruc
ture o
f the
Grou
p, and cons
ide
rin
g the r
isk of ac
ts by t
he Gro
up an
d the
Pare
nt Comp
any whi
ch were contr
ar
y to t
he ap
plic
ab
le laws
and regulations, including fraud;
•
Inq
uiri
ng of th
e direc
tor
s, ma
nage
ment a
nd, wh
ere
ap
prop
riate, tho
se cha
rged w
ith gover
nan
ce, as to wh
ethe
r
the G
roup a
nd th
e Parent Co
mpa
ny is in com
plia
nce wi
th
laws a
nd reg
ulatio
ns, a
nd dis
cuss
ing th
eir po
licie
s an
d
pro
cedure
s rega
rdin
g compl
ian
ce with law
s an
d regul
ation
s;
•
Ins
pec
tin
g corre
sp
ond
ence wi
th rel
evant li
censi
ng or
regulatory autho
rities;
•
Reviewi
ng min
utes of d
irec
tor
s’ meet
ings i
n the year
; and
•
Dis
cuss
ing a
mon
gst t
he en
gage
ment tea
m the l
aws an
d
regu
latio
ns lis
ted a
bove, and rem
ain
ing a
ler
t to a
ny
indica
tions of
non-compli
ance
.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
87
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
We also co
nsid
ered t
hos
e laws a
nd reg
ulatio
ns that h
ave a
dire
ct ef
fe
ct o
n the p
repa
ratio
n of the ﬁ
nan
cial s
tatem
ent
s such
a
s ta
x l
egi
slati
on, pe
nsio
n leg
islati
on, the C
ompa
nie
s Act 20
06
and b
reache
s of reg
ulator
y re
quire
ment o
f the FC
A.
In ad
diti
on, we eval
uated th
e dire
ctor
s’ an
d mana
gem
ent
’s
incen
tives a
nd op
por
tuni
tie
s for fr
audu
lent ma
nip
ulatio
n of the
ﬁnan
cial s
tate
ment
s, incl
udin
g the r
isk of ma
nag
eme
nt overri
de
of contro
ls, a
nd dete
rmin
ed th
at the pr
inci
pal r
isk
s relate
d to
po
stin
g man
ual j
ourn
al ent
rie
s to man
ipulate ﬁ
nancia
l
per
formance
, managemen
t bias through
judgements and
assumptions in signiﬁcant accounting estimates,
rev
enue
reco
gniti
on (which we pi
npoi
nted to th
e cut
-of
f
, accura
cy a
nd
occur
rence a
ss
er
ti
ons), and sign
iﬁca
nt on
e-
of
f or unu
sua
l
transac
tions.
Our p
roce
dures i
n relati
on to fr
aud in
clude
d bu
t were not
limi
ted to:
•
Ma
kin
g enqu
irie
s of the d
irec
tor
s an
d man
agem
ent on
whet
her t
hey had k
nowl
edg
e of any ac
tua
l, susp
ec
ted
or alleged fraud
;
•
Gai
ning a
n und
er
st
an
ding of t
he inter
nal co
ntrol
s
es
ta
bli
she
d to mit
igate r
isk
s relate
d to fr
aud;
•
Dis
cuss
ing a
mon
gst t
he en
gage
ment tea
m the r
isk
s of
fraud
; and
•
Addressing the risks of fraud through management override
of contro
ls by pe
r
form
ing jo
urn
al ent
r
y tes
ting.
The p
rima
r
y res
pon
sibi
lit
y for t
he prevent
ion a
nd dete
ct
ion of
irre
gula
ri
ties, i
nclud
ing f
raud, re
st
s wit
h both th
os
e charge
d
wit
h governa
nce a
nd ma
nage
ment. A
s wit
h any aud
it, th
ere
rema
ine
d a ris
k of non
-de
tec
tion of i
rre
gula
rit
ies, a
s th
ese m
ay
inv
olv
e col
lusion,
for
gery
, intent
ional omiss
ions,
misr
epre
sent
atio
ns or th
e overr
ide of i
nterna
l contro
ls.
The r
isk
s of mater
ial m
iss
tate
ment t
hat had th
e greates
t ef
fec
t
on ou
r audi
t, inclu
ding f
rau
d, are dis
cuss
ed un
der “
Key audit
mat
ter
s” with
in this re
po
r
t.
A fur
t
her d
escr
iptio
n of our re
sp
onsi
bili
ties i
s availa
ble
onth
eFina
ncial Re
por
t
ing Co
uncil’s webs
ite at
ww
w
.frc.
org.uk/
auditors
responsibilitie
s
. This des
cript
ion
form
s par
t of our a
udi
tor’s repo
r
t.
Other matters which we ar
e required to address
Follow
ing th
e recom
men
datio
n of the Au
dit Co
mmit
te
e, we
were a
ppo
inted by th
e Boa
rd of Dir
ec
tor
s on 14 April 202
0 to
audi
t the ﬁ
nancia
l st
atem
ents fo
r the yea
r endi
ng 31March20
20
and s
ubs
equ
ent ﬁna
ncia
l per
iod
s. The p
er
iod of tot
al
uninte
rr
upted en
gage
ment i
s thre
e year
s, coverin
g the year
s
end
ing 31 Ma
rch 20
20 to 31 Ma
rch 20
22.
The n
on-au
dit s
er
vice
s proh
ibite
d by the FRC’s E
thic
al St
and
ard
were not p
rovide
d to the G
roup o
r the Pa
rent Com
pany a
nd we
rema
in ind
ep
ende
nt of the G
roup a
nd th
e Pare
nt Comp
any in
conducting our audit.
Our a
udit o
pin
ion is co
nsis
tent wi
th th
e addi
tion
al rep
or
t to
the Audit Committee.
Use of the audit report
This re
por
t is ma
de so
lel
y to the Pa
rent Com
pany’s mem
ber
s
a
s a bod
y in accord
ance w
ith Cha
pter 3 of Pa
r
t 1
6 of the
Comp
ani
es Ac
t 2006. Our a
udi
t work ha
s b
een u
nde
r
ta
ken so
that we mig
ht st
ate to the Pa
rent Co
mpa
ny’s membe
rs t
hos
e
mat
ter
s we are re
quire
d to st
ate to the
m in an a
udito
r’s repo
r
t
and fo
r no oth
er pur
po
se. T
o the f
ulle
st e
x
tent p
erm
it
ted by
law
, we do not acce
pt or a
ssum
e res
pon
sibil
it
y to anyone ot
her
tha
n the Pa
rent Com
pany a
nd th
e Parent C
ompa
ny’s memb
er
s
a
s a bod
y for our a
udi
t work
, for thi
s repo
r
t, or for t
he op
inio
ns
we have forme
d.
Ga
vin Barcla
y (Senior Statutory Auditor)
for a
nd on b
eh
alf of M
a
za
rs LL
P
Cha
r
tere
d Accou
nta
nts a
nd St
atutor
y A
udi
tor
30 O
ld Ba
iley
London
EC4M 7
AU
29 June 2022
88
Carclo plc
Annua
l rep
or
t a
nd ac
count
s 20
22
CONSOLID
A
TED INCOME ST
A
TEMENT
for the year ended 31 March 202
2
202
2
2021
Not
es
£000
£
000
Continuing
operations:
Reve
nu
e
6
128,576
107,564
Underlying
operating
proﬁt
6,096
4,840
CO
VID
-
related U
S govern
ment g
ran
t incom
e
10
2,087
—
Operating pro
ﬁt before
exceptional
items
8,183
4,840
E
xceptio
nal
item
s
9
721
4,490
Operating pro
ﬁt
3,7
8,904
9,330
Fina
nce
reven
ue
11
77
42
Fina
nce
e
xp
ens
e
11
(3,066)
(2,701)
Proﬁt
before tax
5,915
6,671
Inco
me
t
a
x
ex
pe
nse
12
(809)
(457)
Proﬁt
after tax but before
proﬁt on
discontinued oper
ations
5,106
6,214
Discontinued oper
ations:
Proﬁt o
n dis
contin
ued o
per
atio
ns, net of t
a
x
4
693
1,198
Pro
ﬁt fo
r th
e pe
rio
d
5,799
7,412
Attributable to
:
Equit
y
h
old
er
s
of
t
he
Co
mpa
ny
5,799
7,412
Non
-contro
lling
intere
st
s
—
—
5,799
7,412
Ea
rni
ng
s per o
rd
ina
r
y sh
ar
e
13
Ba
sic
–
cont
inuin
g
op
er
ation
s
7.0
p
8.5p
Basic
–
discontinued
oper
ations
0.9
p
1.6
p
Basic
7.9
p
10.1
p
Dil
uted
–
cont
inuin
g
op
er
ation
s
6.9
p
8.5p
Dil
uted
–
di
scont
inue
d
op
erat
ion
s
0.9
p
1.6
p
Diluted
7.9
p
10.1
p
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
89
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
CONSOLID
A
TED ST
A
TEMENT OF
COMPREHENSIVE INC
OME
for the year ended 31 March 202
2
2022
2021
£000
£000
Pro
ﬁt fo
r th
e pe
rio
d
5,799
7,412
Other comprehensive
income/
(
expense
)
It
em
s th
at wi
ll no
t be r
ec
la
ss
iﬁe
d to t
he i
nco
me s
ta
tem
en
t
Remea
su
reme
nt gain
s/
(los
se
s
) on deﬁ
ned b
eneﬁ
t sche
me
8,480
(6,540)
Defe
rred
ta
x
ar
ising
—
—
T
ot
a
l ite
ms t
ha
t wil
l not b
e re
cl
as
si
ﬁed t
o t
he in
com
e st
at
eme
nt
8,480
(6,540)
It
em
s th
at a
re or m
ay in fu
tu
re be c
la
s
siﬁ
ed t
o th
e in
com
e st
ate
me
nt
Foreign
exchange
tr
anslation
dif
ferences
1,840
(2,939)
Net
inves
tment
he
dge
440
1,084
Defe
rred
ta
x
ar
ising
(127)
137
T
ot
a
l ite
ms t
ha
t ar
e or may i
n fut
ur
e be c
la
ss
iﬁe
d to t
he i
nco
me s
tat
em
en
t
2,153
(1,718)
Other comprehensive
income/
(
expense
)
, net
of tax
10,633
(8,258)
T
otal comprehensiv
e income
/
(expense
) for the y
ear
16,432
(846)
Attributable to
:
Equit
y
h
old
er
s
of
t
he
Co
mpa
ny
16,432
(846)
Non
-contro
lling
intere
st
s
—
—
T
otal comprehensiv
e expense for
the period
16,432
(846)
90
Carclo plc
Annu
al rep
or
t a
nd a
ccount
s 2022
2022
2021
Not
es
£000
£000
Non
-curre
nt asset
s
Int
ang
ibl
e
a
sse
ts
15
22,714
21,848
Prop
er
t
y
,
pla
nt
a
nd
e
quip
ment
16
46,964
43,218
Defe
rred
ta
x
as
set
s
23
1,403
384
T
ra
de
a
nd
ot
her
recei
vab
les
19
115
112
T
ot
a
l non
-
cur
re
nt as
se
t
s
71,196
65,562
Current as
sets
Inventor
ies
17
16,987
12,821
Contr
ac
t
a
ss
ets
18
7,700
2,898
T
ra
de
a
nd
ot
her
recei
vab
les
19
19,702
19,254
Ca
sh
and
ca
sh
de
pos
its
20
12,347
15,485
Non
-cur
rent a
ss
ets cl
as
siﬁe
d a
s hel
d for sa
le
21
266
—
T
ot
a
l cur
ren
t as
se
ts
57,002
50,458
T
otal
asse
ts
128,198
116,020
Non-
current liabilities
Loan
s
an
d
bo
rrow
ings
22
41,804
37,997
Defe
rred
ta
x
liab
ilit
ies
23
4,878
4,393
Contract
liabilitie
s
6
3,099
866
Retire
ment
be
neﬁt
obl
igatio
ns
24
25,979
37,275
T
otal non-current liabilities
75,760
80,531
Current liabilities
Loan
s
an
d
bo
rrow
ings
22
2,948
5,084
T
ra
de
a
nd
ot
her
payab
les
26
21,062
17,016
Curre
nt
t
a
x
l
iabi
liti
es
170
17
Contract
liabilitie
s
6
3,755
5,461
Provisi
ons
25
87
—
T
otal current liabilities
28,022
27,578
T
otal
liab
iliti
es
103,782
108,109
Net asset
s
24,416
7,911
Equity
Ordi
nar
y
sha
re
ca
pi
ta
l
is
sued
27
3,671
3,671
Sha
re
pre
mium
7,359
7,359
T
ra
nsl
ation
res
er
ve
28
7,486
5,333
Reta
ine
d
ea
rnin
gs
28
5,926
(8,426)
T
ot
a
l equ
it
y at
tri
bu
ta
bl
e to eq
uit
y h
old
er
s of t
he Co
mp
any
24,442
7,937
Non
-contro
lling
intere
st
s
(26)
(26)
To
t
a
l
e
q
u
i
t
y
24,416
7,911
App
roved by the B
oa
rd of Dire
cto
rs o
n 29 June 2022 and s
igne
d on it
s be
hal
f by:
Nick
Sanders
Phil White
Director Director
Registered Number 1
96249
CONSOLID
A
TED ST
A
TEMENT OF FINANCIAL POSITION
as at 3
1 March 202
2
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
91
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
At
tr
ibu
ta
bl
e to eq
ui
ty h
ol
de
rs of t
he Co
mp
any
Non-
Sh
are S
ha
re
T
ran
sl
atio
n
Reta
ine
d
con
tro
lli
ng
Total
c
ap
it
al p
rem
ium
res
er
ve
ea
rn
ing
s
T
ot
al
int
ere
st
s
e
qu
it
y
£000 £000 £000 £000 £000 £000 £000
Bal
ance at 1 A
pri
l 20
20
3,671
7,359
7,051
(9,324)
8,757
(26)
8,731
Pro
ﬁt fo
r th
e yea
r
—
—
—
7,412
7,412
—
7,412
Other comprehensive
income/
(
expense
):
Forei
gn excha
nge t
ra
nslati
on di
f
feren
ces
—
—
(2,939)
—
(2,939)
—
(2,939)
Net inve
stm
ent he
dge
—
—
1,084
—
1,084
—
1,084
Remea
su
reme
nt los
ses o
n deﬁn
ed
ben
eﬁt s
cheme
—
—
—
(6,540)
(6,540)
—
(6,540)
T
a
x
ation o
n item
s ab
ove
—
—
137
—
137
—
137
T
otal comprehensiv
e income
/
(expense
)
for t
h
e per
iod
—
—
(1,718)
872
(846)
—
(846)
T
ra
ns
ac
ti
on
s wit
h owne
rs r
ec
ord
ed d
ir
ect
ly
in equity:
Sha
re-
ba
sed p
ayment
s
—
—
—
26
26
—
26
T
a
x
ation o
n item
s record
ed di
rec
tly in e
quit
y
—
—
—
—
—
—
—
Bal
ance at 31 Ma
rch 20
21
3,671
7,359
5,333
(8,426)
7,937
(26)
7,911
Bal
ance at 1 A
pri
l 20
21
3,671
7,359
5,333
(8,426)
7,937
(26)
7,911
Pro
ﬁt fo
r th
e yea
r
—
—
—
5,799
5,799
—
5,799
Other comprehensive
income/
(
expense
):
Foreign exc
hange translation dif
ferences
—
—
1,840
—
1,840
—
1,840
Net inve
stm
ent he
dge
—
—
440
—
440
—
440
Remea
su
reme
nt gain
s on deﬁ
ned
ben
eﬁt s
cheme
—
—
—
8,480
8,480
—
8,480
T
a
x
ation o
n item
s ab
ove
—
—
(127)
—
(127)
—
(127)
T
otal comprehensiv
e income
for the per
iod
—
—
2,153
14,279
16,432
—
16,432
T
ra
ns
ac
ti
on
s wit
h owne
rs r
ec
ord
ed d
ir
ect
ly
in equity:
Sha
re-
ba
sed p
ayment
s
—
—
—
73
73
—
73
T
a
x
ation o
n item
s record
ed di
rec
tly in e
quit
y
—
—
—
—
—
—
—
Ba
la
nc
e at 31 Ma
rc
h 2022
3,671
7,359
7,486
5,926
24,442
(26)
24,416
CONSOLID
A
TED ST
A
TEMENT OF CHANGES IN EQUITY
for the year ended 31 March 202
2
92
Carclo plc
Annu
al rep
or
t a
nd a
ccount
s 2022
2022
2021
Not
es
£000
£000
Cash generated
from oper
ations
30
6,780
11,202
Intere
st
pa
id
(2,502)
(1,782)
T
a
x
pai
d
(1,309)
(1,023)
Ne
t ca
sh fr
om o
pe
rat
ing a
ct
ivit
ie
s
2,969
8,397
Ca
sh ﬂ
ows us
ed i
n inve
st
ing a
ct
ivit
ie
s
Proce
eds
fro
m
sa
le
of
b
usin
ess
693
1,250
Proce
eds f
rom s
ale of p
rop
er
t
y
, p
lant a
nd eq
uipm
ent
20
21
Interes
t
re
ceived
77
42
Purcha
se of p
rop
er
t
y
, p
lant a
nd eq
uipm
ent
(4,804)
(7,180)
Purcha
se of i
nta
ngib
le a
ss
ets – co
mpu
ter sof
t
wa
re
(135)
(139)
Ne
t ca
sh u
se
d in inve
st
ing a
ct
ivi
ti
es
(4,149)
(6,006)
Ca
sh ﬂ
ows (use
d in)/
fro
m ﬁna
nc
in
g act
iv
iti
es
22
Dr
awing
s on ex
is
tin
g and n
ew facil
itie
s
1,575
38,697
T
ra
ns
act
ion co
st
s as
so
ciated wi
th the i
ssu
e of debt
—
(380)
Proce
eds f
rom s
ale a
nd le
as
eba
ck of prop
er
t
y
, p
lant a
nd e
quip
ment
1,410
—
Repaym
ent of bo
rrowi
ngs e
xclud
ing lea
s
e liab
ilit
ies
(2,282)
(31,666)
Repaym
ent
of
lea
se
lia
bili
ties
(3,196)
(1,601)
Ne
t ca
sh (use
d in)/
fro
m ﬁn
an
ci
ng ac
tiv
it
ie
s
(2,493)
5,050
Net (decrea
se)/increa
se in c
as
h and c
a
sh equ
iva
lent
s
(3,673)
7,441
Ca
sh a
nd ca
sh e
quiv
ale
nts at b
egi
nning o
f per
iod
15,485
8,352
Ef
fec
t of excha
nge r
ate ﬂuc
tuati
ons o
n ca
sh he
ld
535
(308)
Ca
sh a
nd c
as
h eq
uiv
al
ent
s at e
nd of p
eri
od
12,347
15,485
Ca
sh a
nd c
as
h eq
uiv
al
ent
s co
mp
ris
e:
Ca
sh
and
ca
sh
de
pos
its
12,347
15,485
12,347
15,485
CONSOLID
A
TED ST
A
TEMENT OF CASH FLO
WS
for the year ended 31 March 202
2
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
93
Carclo plc
Annua
l rep
or
t a
nd a
ccount
s 2022
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
for the year ended 31 March 202
2
1. Basis of prepar
ation
The G
roup ﬁn
ancia
l st
ateme
nts have be
en p
repa
red a
nd
ap
proved by the D
irec
tor
s in acco
rdan
ce with U
K
-adopte
d
inter
natio
nal acco
untin
g st
and
ards
. The Com
pany ha
s el
ec
ted
to prep
are it
s pa
rent co
mpa
ny ﬁnancia
l st
atem
ents i
n
accorda
nce wi
th FRS 10
1
; thes
e are p
rese
nted on p
age
s 1
40 to
1
50. The pre
sent
atio
nal cur
renc
y of th
ese ﬁ
nancia
l st
atem
ent
s
is GB
P
, w
ith a
mount
s pre
sen
ted in rou
nd tho
us
and
s, exce
pt
whe
re othe
r
wis
e st
ated.
The a
ccountin
g po
licie
s have been a
ppl
ied co
nsis
tentl
y to all
per
io
ds pre
sente
d in th
e cons
olid
ated ﬁna
ncial s
t
atement
s,
unless other
wise stated.
Jud
gem
ent
s made by th
e Dire
cto
rs i
n the a
ppli
catio
n of the
se
accounting
policies that ha
ve signiﬁcant e
f
fect on the ﬁnancial
st
ateme
nts a
nd es
tim
ates wi
th a sign
iﬁca
nt ri
sk of mater
ial
adju
stm
ent in t
he ne
x
t year are d
iscus
se
d in note 2.
Going concern
The ﬁn
ancia
l st
atem
ents a
re pre
pare
d on th
e goin
g
conce
rnba
si
s.
Grou
p per
form
ance d
urin
g the yea
r has e
nab
led c
ap
ita
l an
d
work
in
g cap
ita
l inves
tme
nt to be mad
e whil
st ret
ai
ning a s
ta
bl
e
ﬁnan
cial p
osi
tion w
ith n
et debt e
xclud
ing lea
s
e liab
ilit
ies a
s of
31 March 2022 increa
sin
g to £21
.5 mill
ion (20
21
: £
20
.5 mil
lion)
.
The d
ebt faci
liti
es avail
abl
e to the G
roup co
mpr
ise a ter
m
loa
nof £3
0.3 milli
on, of whi
ch £1
.4 mil
lion w
ill b
e amo
r
tis
ed by
30S
eptemb
er 2022 and a £
3.5 mill
ion revol
ving cre
dit f
acili
ty
which w
as f
ully u
tili
sed a
s of 31 Ma
rch 20
22. Both of th
ese
facil
itie
s mature o
n 31 July 2023.
A sche
dul
e of contr
ibut
ion
s with t
he pe
nsio
n tru
ste
es is in p
lace
throu
gh to Jul
y 20
23; beyond th
is a sch
edul
e of contr
ibu
tion
s
for £3.
5 milli
on an
nual
ly is in p
lace unti
l 31 Octo
ber 204
0. This
sche
dul
e is reviewe
d and re
cons
ide
red be
twe
en th
e Comp
any
and t
he tr
us
tees at ea
ch trie
nnia
l act
uar
ial v
aluat
ion, th
e nex
t
bei
ng af
ter t
he res
ult
s of the 31 Ma
rch 20
21 trienn
ial va
luati
on
are k
nown. Th
is val
uatio
n, and acco
rding
ly an u
pdate
d sche
dule
of contr
ibu
tion
s which h
as b
ee
n provisi
ona
lly agre
ed, is
ex
pe
cte
d to be con
clude
d by 31 July 20
22. For th
e pur
pos
es of
this g
oing co
ncer
n review th
e ex
t
ant s
ched
ule of con
trib
uti
ons
ha
s be
en cons
ider
ed in th
e ba
se c
as
e.
An inte
rcredi
tor de
ed b
et
ween C
arclo p
lc, cer
t
ain ot
her G
roup
comp
anie
s, the b
ank a
nd th
e pen
sio
n sche
me tr
uste
es re
quire
s
the G
roup to have reﬁna
nced i
ts b
ank d
ebt wit
h a matur
it
y date
not ear
lie
r than 31 Ma
rch 20
26 and to have agre
ed an u
pdate
d
sche
dul
e of contr
ibut
ion
s for the a
ctu
ar
ial va
luati
on of th
e
sche
me a
s at 31 March 202
1 by 31 July 20
22 (this date havi
ng
be
en rece
ntly e
x
tend
ed by one m
onth)
.
The G
roup, the b
ank a
nd th
e pen
sion s
chem
e tru
ste
es are
ac
tively e
ngag
ed in n
egot
iation
s over the reﬁ
nanci
ng of th
e
ba
nk debt b
eyond th
e curre
nt ex
pir
y date of 31 Ju
ly 20
23 an
d
over the up
dated s
che
dule of co
ntri
buti
ons. T
he pa
r
tie
s are
commi
t
ted to a pl
an to ﬁna
lis
e the
se by 31 July 2022 and t
he
Dire
cto
rs h
ave an ex
pec
t
ation t
hat this w
ill be a
chieved.
As s
uch the D
ire
ctor
s’ goi
ng con
cern a
ss
ess
ment
per
io
dist
welvemo
nths f
rom th
e date of sign
ing
the
seﬁna
ncia
lst
ateme
nts.
The b
ank f
acilit
ies a
re subj
ec
t to four covena
nts to b
e tes
ted on
a qua
r
terl
y ba
sis:
1
. und
erly
ing in
teres
t cover;
2. net debt to u
nde
rlyi
ng EBITDA;
3. core
subsidiar
y underlying EBIT
A; and
4. core sub
sidia
r
y revenu
e.
Core su
bsid
iar
ies a
re deﬁn
ed a
s Ca
rclo T
e
chnica
l Pla
s
tics Ltd;
Bru
ntons Ae
ro Prod
uc
ts Ltd; Carclo T
e
chnic
al Pla
s
tic
s (Brno)
s.r
.o; CTP Ca
rrer
a Inc a
nd Jacot
tet I
ndu
str
ie SA
S, wit
h CTP
T
aic
an
g Co. L
td an
d Carcl
o T
echn
ica
l Pla
sti
cs P
v
t Co Ltd being
treated a
s no
n-
core for th
e pur
po
ses of t
hes
e covenant
s.
It is a
ss
umed t
hat the b
ank covena
nt
s and t
hresh
old
s set o
ut
in the cu
rrent b
ank
ing a
gree
ment a
re in pl
ace thro
ugho
ut th
e
goin
g conce
rn a
ss
ess
ment p
eri
od a
nd are n
ot ame
nde
d a
s a
resu
lt of th
e ongo
ing reﬁ
nanci
ng.
Ba
se
d on our cur
rent b
as
e ca
se fo
reca
s
ts, t
hes
e covenant te
st
s
are e
xp
ec
ted to b
e met thro
ugh
out th
e a
sse
ssm
ent pe
rio
d.
In ad
diti
on, the p
ens
ion s
cheme h
as t
he be
neﬁt of a ﬁ
f
th
covenant to b
e tes
ted on 1 M
ay each year up to an
d inclu
din
g
20
23. In res
pe
ct to th
e year
s to 31 March 20
22 a
nd
31March2023 the tes
t requi
res a
ny shor
t
f
all of p
ens
ion d
eﬁcit
recover
y con
trib
uti
ons wh
en mea
su
red ag
ains
t Pens
ion
Protec
tio
n Fund pri
ori
t
y drif
t (which is a mea
su
re of the
increa
se i
n the U
K Pensio
n Protec
tio
n Fund’s potentia
l
ex
po
sure to th
e Grou
p’
s pens
ion s
chem
e liab
ilit
ies) to be met
by a combi
nation o
f ca
sh paym
ents to t
he sch
eme, plu
s a
notio
nal (non-
ca
sh) prop
or
ti
on of the i
ncrea
se in t
he und
er
lyin
g
val
ue of th
e T
echni
cal P
la
sti
cs an
d Aeros
pace b
usin
ess
es ba
s
ed
on a
n EBITDA mult
iple fo
r tho
se bu
sine
ss
es whi
ch is to be
determined a
nnually
.
The D
irec
tor
s have reviewe
d ca
sh ﬂow a
nd covenan
t forec
as
ts to
cover the t
wel
ve month p
er
iod f
rom th
e date of sign
ing th
ese
ﬁnan
cial s
tate
ment
s ta
ki
ng into acco
unt the G
roup’s availa
ble
debt f
acili
ties a
nd th
e term
s of the cur
rent a
rr
ang
eme
nts w
ith
the b
ank a
nd th
e pen
sion s
chem
e. Thes
e dem
ons
trate t
hat the
Grou
p ha
s suf
ﬁcie
nt head
room i
n term
s of liqu
idit
y a
nd covena
nt
testing through the forecast perio
d.
In ad
diti
on the D
ire
ctor
s have reviewe
d ca
sh ﬂow a
nd covena
nt
forec
a
st
s for the s
am
e tim
e per
iod b
as
ed o
n mana
gem
ent
’s
be
st es
tim
ates of th
e impa
ct of t
he ong
oin
g neg
otiatio
ns on
facilities and pension contributions which includes curren
tly
uncommitted bank loa
n repa
yments and provisionally agreed
additional pension deﬁcit recov
er
y contributions contingent
on
fut
ure pe
r
form
ance. Th
ese d
emo
nst
rate that t
he Gro
up ha
s
suf
ﬁci
ent hea
droo
m in ter
ms of liq
uidi
ty a
nd covena
nt tes
ting
throu
gh th
e forec
as
t pe
rio
d.
The D
irec
tor
s have reviewe
d sen
sitiv
it
y tes
tin
g ba
sed o
n a
numb
er of rea
so
nab
ly po
ssi
ble s
cena
rio
s, ta
kin
g into accou
nt
the cur
rent vi
ew of imp
act
s of th
e contin
uing COVID
-
1
9
pan
dem
ic on th
e Gro
up (pa
r
ticula
rl
y from su
ppl
y chain
disruption and any unmitigat
ed cost inﬂation ac
ross all type
s
of op
erati
ona
l ex
pen
dit
ure) and po
ssib
le po
lit
ica
l uncer
ta
int
y
,
inclu
ding t
he imp
ac
t of the Rus
sia
n inva
sion o
f Ukr
ain
e an
d
heig
htene
d ris
k of wid
er conﬂi
ct, B
rex
it a
nd othe
r pos
sib
le
overseas trading issues.
94
Carc
lo plc
Ann
ual re
po
r
t an
d accoun
ts 2022
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
1. Basis of prepar
ation
continued
Going concern
continued
Severe d
ownsi
de se
nsit
ivit
y te
sti
ng ha
s be
en pe
r
for
med u
nde
r
a ra
nge of s
cena
rio
s mod
elli
ng the ﬁ
nan
cial ef
fe
ct
s of los
s of
bus
ine
ss fro
m: discrete si
tes, an over
all f
all i
n gros
s marg
in of
1
% across t
he Gro
up, a fall i
n Group s
al
es of 5% matche
d by a
corre
sp
ondi
ng fa
ll in cos
t of s
ale
s of the s
am
e amo
unt, de
lays
in the timing of
commencement of signiﬁcant c
ontractual
proj
ec
ts, re
duc
tio
n in revenue f
rom sp
eciﬁ
c custo
mer
s,
minimum wage incr
ease
s, unmitiga
ted inﬂationary impact
across operating costs and exchange risk. These sensitivi
ties
at
tempt to in
corp
or
ate the ri
sk
s ar
isin
g from nat
iona
l and
regi
ona
l impa
ct
s of the g
lob
al pa
nde
mic fr
om lo
cal l
ockdown
s,
impa
ct
s on ma
nuf
act
uri
ng an
d supp
ly cha
in an
d other p
otentia
l
increa
se
s to dire
ct a
nd in
direc
t cos
ts. T
he Di
rec
tor
s cons
ider
that th
e Grou
p has t
he ca
paci
t
y to take mi
tigat
ing ac
tio
ns to
ens
ure that th
e Grou
p rema
ins ﬁna
ncia
lly via
bl
e, includi
ng
fur
t
her re
ducin
g op
erati
ng ex
pe
ndi
ture a
s ne
cess
ar
y
.
On th
e ba
sis of t
his fore
ca
st a
nd s
ensi
tivi
t
y test
ing, th
e Boa
rd
ha
s deter
min
ed that i
t is rea
son
abl
e to as
sum
e that th
e Group
will co
ntinu
e to ope
rate wi
thin th
e faci
litie
s avail
abl
e to it an
d to
adhe
re to the covena
nt tes
ts to w
hich it i
s subje
ct t
hrou
ghou
t
the t
wel
ve month p
er
iod f
rom th
e date of sign
ing th
e ﬁna
ncial
st
ateme
nts a
nd a
s such i
t ha
s adopte
d the g
oing co
ncer
n
a
ssum
ption i
n prep
ari
ng the ﬁ
nan
cial s
tatem
ent
s.
New standards, amendments and int
erpretations
Cer
t
ain n
ew st
an
dard
s, ame
ndm
ent
s and i
nterp
retat
ions to
ex
is
ting s
ta
nda
rds have be
en pub
lis
hed t
hat are ma
ndato
r
y for
the G
roup’s accountin
g per
iod b
eg
innin
g on or a
f
ter
1Apr
il202
1
. The foll
owin
g new st
an
dard
s and a
me
ndme
nts to
st
an
dard
s are ma
ndato
r
y and h
ave been ad
opte
d for the ﬁ
rs
t
tim
e for the ﬁ
nancia
l year b
egin
ning 1 A
pr
il 20
21
:
•
IFRS 9 Fin
ancia
l Ins
tr
umen
ts, IA
S 39 Fina
ncia
l Ins
tru
ment
s:
Recog
niti
on an
d Mea
sure
ment
, IFRS 7 Fina
ncia
l Ins
tru
ment
s:
Dis
clos
ures, I
FRS 4 Ins
ura
nce Contr
ac
ts a
nd IFRS 16 Leas
es
(Amen
dme
nt)
: Interes
t Rate Be
nchma
rk Refo
rm – Pha
se 2;
and
•
IFRS 16 Lease
s (Amen
dme
nt)
: COVID
-
1
9 related re
nt
conce
ssio
ns b
eyond 30 Ju
ne 20
21
.
The
se s
ta
nda
rds have not had a mate
ria
l impa
ct o
n the
cons
oli
dated ﬁ
nan
cial s
tate
ment
s.
Cer
t
ain n
ew st
an
dard
s, ame
ndm
ent
s and i
nterp
retat
ions to
ex
is
ting s
ta
nda
rds have be
en pub
lis
hed t
hat are ma
ndato
r
y
for th
e Group’s accounti
ng pe
rio
d be
ginni
ng on o
r af
ter
1Apr
il2022.
The G
roup ha
s el
ec
ted not to ea
rl
y adopt t
hes
e st
an
dard
s,
which a
re de
scri
bed b
el
ow
.
•
IA
S 1
6 Prope
r
t
y
, Pla
nt an
d Equipm
ent (Am
endm
ent)
:
Proce
eds b
efore in
tende
d us
e (
ef
fec
tive date
1Janu
ar
y2022
);
•
IA
S 37 Provision
s, Conti
ngen
t Liab
iliti
es an
d Conti
nge
nt
As
set
s (Ame
ndme
nt)
: One
rous co
ntrac
t
s – Cost
s of Fulﬁll
ing
a Contr
ac
t (
ef
fec
tive date 1 Ja
nua
r
y 20
22)
;
•
IFRS 3 Bu
sin
ess Co
mbin
ation
s (Amen
dmen
t)
: Refe
rence to
the Co
nceptu
al Fram
ewor
k (
ef
fec
tive date 1 Ja
nua
r
y 20
22)
;
•
Ann
ual Im
proveme
nts to I
FRSs (20
18-
2020 cycle
) (
ef
fec
tive
date 1 Jan
uar
y 2022
);
•
IA
S 1 Prese
ntat
ion of Fi
nancia
l State
ment
s (Ame
ndm
ent)
:
Cla
ssiﬁ
catio
n of lia
bili
ties a
s cur
rent or n
on-
curr
ent – defe
rra
l
of ef
fec
tive date (ef
fec
tive date 1 Ja
nuar
y 20
23)
;
•
IA
S 1 Prese
ntat
ion of Fi
nancia
l State
ment
s an
d IFRS Pr
act
ice
Stat
ement 2 Making Ma
terial Judgements (
Amendment
)
:
Disclosure of acc
ounting policies (
ef
fective date
1Janu
ar
y2023
);
•
IA
S 8 Accounti
ng Polici
es, Cha
nge
s in Account
ing Es
tim
ates
and Er
ror
s (Ame
ndm
ent)
: Deﬁni
tio
n of account
ing es
tim
ates
(
ef
fec
tive date 1 Ja
nua
r
y 20
23)
; and
•
IA
S 1
2 Incom
e T
a
xe
s: Defer
red t
a
x relate
d to a
sset
s an
d
liabilities arising from a single transac
tion (
effective
1Janu
ar
y 2023
).
The a
bove are n
ot ex
pe
cted to h
ave a materia
l impa
ct o
n the
ﬁnancial
statements.
The
re are no ot
her I
FRS or IFRI
C inter
pret
atio
ns that a
re not yet
ef
fec
tive th
at would b
e ex
pe
cte
d to have a materia
l imp
act o
n
the Group.
Accounting policies
a) Basis of accounting
The ﬁn
ancia
l st
atem
ents a
re pre
pare
d on th
e his
tori
cal co
st
ba
sis e
xcept that d
eri
vative ﬁna
ncia
l ins
tru
ment
s, sha
re opti
ons
and d
eﬁne
d be
neﬁt p
ensi
on pl
an a
ss
ets a
re st
ated at th
eir fa
ir
va
l
ue.
Cer
t
ain i
tems of p
rop
er
t
y
, p
lant a
nd eq
uipm
ent that h
ad be
en
reval
ued to f
air va
lue o
n or pr
ior to 1 A
pr
il 2004, th
e date of
tra
nsi
tion to I
FRS, ar
e mea
sure
d on the b
a
sis of de
eme
d cos
t,
bei
ng the r
evalu
ed am
ount at t
he date of that r
evaluat
ion.
Non
-cur
rent a
ss
ets a
nd di
spo
sa
l group
s hel
d for s
ale a
re st
ated
at the l
ower of ca
rr
yi
ng am
ount a
nd fa
ir va
lue l
ess co
st
s to sel
l.
b
) Basis of consolidation
The G
roup ﬁn
ancia
l st
ateme
nts co
nso
lidate t
hos
e of the
Comp
any an
d its s
ubs
idia
rie
s (togeth
er refer
red to a
s the
“Group”). The pa
rent com
pany ﬁn
ancia
l st
ateme
nts p
res
ent
infor
matio
n ab
out th
e Comp
any a
s a sep
ar
ate entit
y a
nd not
ab
out i
ts gro
up. The res
ult
s of any sub
sid
iar
ies s
old o
r acquire
d
are in
clud
ed in th
e cons
olid
ated in
come s
tatem
ent up to, or
from, the da
te contr
ol pass
es. Intra-group transactio
ns,
ba
lance
s an
d proﬁt
s are e
limin
ated fu
lly on co
nso
lidati
on.
On acq
uisi
tion of a s
ubs
idia
r
y
, al
l of the i
denti
ﬁab
le a
ss
ets a
nd
liabilities exis
ting at the da
te of
acquisition are recor
ded at their
fa
ir val
ues reﬂ
ec
ting t
heir co
ndit
ion at th
at date.
i) Business combinations
Business combinations are acc
ounted for using
the acquisition
meth
od a
s at the a
cquis
itio
n date, which is t
he date on w
hich
contro
l is tr
ans
ferr
ed to the G
roup. Cont
rol is th
e power to
govern t
he ﬁna
ncia
l and o
per
atin
g pol
icies of a
n enti
t
y so a
s to
obt
ain b
eneﬁ
ts f
rom it
s ac
tivi
ties
. In a
sse
ssi
ng contro
l, the
Grou
p ta
kes into cons
ide
ratio
n poten
tial voti
ng ri
ghts t
hat
current
ly are exe
rcisa
ble.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
95
Carclo plc
An
nua
l repo
r
t an
d accou
nts 2022
The Group measures goodwill at the acquisition da
te as:
•
the f
air va
lue o
f the con
side
rati
on tr
ans
ferr
ed; plus
•
the re
cogn
ise
d amo
unt of any no
n-
contro
llin
g interes
t
s in
the acquiree
; plus
•
if th
e busi
nes
s comb
inatio
n is achieve
d in st
ag
es, th
e fair
val
ue of th
e pre-
ex
is
ting e
qui
ty i
nteres
t in th
e acqui
ree; les
s
•
the n
et reco
gnis
ed am
ount (ge
ner
all
y a fai
r valu
e
) of the
identiﬁable a
ssets acquired and liabiliti
es assume
d.
Any conti
nge
nt consi
der
atio
n payab
le is re
cogni
sed at f
air va
lue
at the ac
quisition date
. If the c
ontingent consideration is
cla
ssiﬁ
ed a
s equ
it
y
, it i
s not rem
eas
ured a
nd se
t
tlem
ent is
accounte
d for wi
thin e
quit
y
. Oth
er
wi
se, subs
equ
ent cha
nge
s to
the f
air va
lue o
f the cont
inge
nt cons
ide
ratio
n are re
cogni
sed i
n
proﬁt o
r los
s.
The co
nsid
erat
ion tr
an
sfer
red do
es n
ot includ
e am
ount
s
relate
d to the s
et
tlem
ent of p
re-
ex
ist
ing re
latio
nship
s.
Such a
mou
nts a
re gen
era
lly re
cogn
ise
d in proﬁt o
r lo
ss.
T
ra
ns
act
ion co
st
s other t
han th
os
e as
so
ciated wi
th the i
ssue o
f
debt o
r equ
it
y se
curit
ies, th
at the G
roup in
curs i
n conne
ct
ion
wit
h a busi
nes
s comb
inatio
n, are ex
pe
nse
d a
s incur
red.
ii) Acquisitions of non-contr
olling interests
Acqui
sitio
ns of no
n-
contro
llin
g intere
st
s are accou
nted for a
s
tra
ns
act
ion
s with ow
ner
s in th
eir ca
paci
t
y as ow
ner
s an
d
the
refore no g
oo
dwill i
s reco
gnis
ed a
s a resu
lt. Adju
st
ment
s to
non
-con
troll
ing inte
res
ts a
risi
ng fro
m tra
nsa
ct
ions t
hat do not
involve th
e los
s of contro
l are b
as
ed on a p
rop
or
ti
onate am
ount
of the n
et a
sset
s of th
e subs
idia
r
y
.
c) Goodwill
In res
pe
ct of b
usin
ess co
mbin
ation
s that occur
red s
ince
1Apr
il200
4, goo
dwill a
ri
sing o
n cons
olid
ation re
pres
ent
s the
exce
ss of th
e fai
r valu
e of the co
nsid
erat
ion gi
ven over the f
air
val
ue of th
e ident
iﬁab
le n
et as
set
s acqu
ired. Go
od
will a
ris
ing on
acquisition of subsidiaries, joint v
entures and businesses is
ca
pit
ali
sed a
s a
n as
set.
In accord
ance w
ith I
FRS 1 and I
FRS 3, go
odw
ill at 1 Ap
ril 200
4
ha
s be
en frozen a
nd will n
ot be a
mor
t
ise
d. Goo
dwi
ll is al
loc
ated
to ca
sh ge
ner
ating u
nit
s an
d is subj
ec
t to an an
nua
l impa
irm
ent
review, with any im
pai
rme
nt los
se
s bein
g reco
gnis
ed
imm
ediate
ly in t
he inco
me s
tate
ment.
Any go
odw
ill ar
isi
ng on th
e acqui
siti
on of an over
s
eas
sub
sidia
r
y is ret
ran
slate
d at the ba
lan
ce she
et date.
d) Other intangible assets
Int
ang
ibl
e as
set
s that a
re acquire
d by the G
roup a
re st
ated at
cos
t les
s accumulate
d am
or
ti
satio
n (
se
e account
ing p
olic
y e)
and i
mpa
irm
ent lo
ss
es (see account
ing p
olic
y v)
.
Ex
penditure on research activities, under
taken with the
pros
pe
ct of ga
ini
ng new s
cienti
ﬁc or te
chnica
l kn
owle
dge a
nd
und
er
st
and
ing, is re
cogn
ise
d in the i
ncome s
t
atement a
s a
n
ex
p
ens
e a
s in
cur
red.
E
xp
end
iture o
n develo
pme
nt ac
tivi
ties
, wher
eby rese
arch
ﬁndi
ngs a
re ap
plie
d to a pla
n or de
sign fo
r the p
rodu
cti
on of
new or s
ubs
ta
ntia
lly imp
roved pro
duc
ts a
nd p
roces
ses
, is
ca
pit
ali
sed i
f the p
rodu
ct or p
roce
ss is te
chnic
ally a
nd
comm
ercial
ly fea
sibl
e an
d the Gro
up ha
s suf
ﬁ
cient re
sou
rces to
complet
e dev
elopment
.
The e
xp
end
iture c
ap
ita
lis
ed in
clude
s the co
st of mate
ria
ls,
dire
ct la
bo
ur an
d an ap
pro
priate p
ropo
r
tio
n of overh
eads.
Ot
her d
evelop
ment e
xp
en
ditur
e is reco
gnis
ed in th
e inco
me
st
ateme
nt a
s an ex
pe
nse a
s in
curre
d. Cap
it
alis
ed d
evelop
ment
ex
pe
ndit
ure is s
tated at co
st l
ess a
ccumulate
d amo
r
tis
atio
n
(
se
e accounti
ng po
lic
y e
) an
d impa
irm
ent lo
ss
es (see
accounting
policy v)
.
E
xp
end
iture o
n inter
nall
y gen
erate
d goo
dwi
ll an
d bra
nds i
s
reco
gnis
ed in th
e inco
me st
atem
ent a
s an e
xp
ens
e as i
ncurre
d.
Sub
seq
uent e
xp
end
itur
e on ca
pit
ali
sed i
nta
ngib
le a
ss
ets i
s
ca
pit
ali
sed o
nly wh
en it i
ncrea
ses t
he fu
ture e
cono
mic be
neﬁt
s
emb
odi
ed in th
e sp
eciﬁc a
ss
et to whi
ch it relate
s. All ot
her
ex
pe
ndit
ure is e
xp
ens
ed a
s incur
red.
e) Amortisation
Int
ang
ibl
e as
set
s, othe
r than g
oo
dwil
l, are am
or
ti
sed o
n a
str
ai
ght
-li
ne ba
sis to w
rite of
f t
he cos
t of th
e as
set, l
ess
es
timate
d resi
dual v
alu
e, ov
er th
e es
timate
d econ
omic l
ife of
the a
ss
et. Patent
s an
d develo
pme
nt cos
ts a
re amo
r
tis
ed over a
per
io
d of up to ten year
s fro
m the d
ate upon w
hich th
e patent
or rel
ated devel
opm
ent e
xp
endi
ture b
ecom
es avai
lab
le for u
se.
Custo
mer-rel
ated int
ang
ibl
es are a
mo
r
tis
ed over seven to te
n
year
s and co
mpu
ter sof
t
w
are over th
ree to ﬁve year
s.
f
) Property
, plant and equipment
The G
roup ha
s t
aken th
e optio
n provi
ded by IFR
S 1 to use i
ts
previ
ous U
K GA
A
P valu
ation a
s “
dee
med co
st
”
. Item
s of
prop
er
t
y
, plant a
nd e
quip
ment a
re st
ated at cos
t, or at d
eem
ed
cos
t, les
s accumul
ated de
preciat
ion a
nd imp
air
ment l
os
ses.
De
preciat
ion on p
rop
er
t
y
, p
lant a
nd eq
uipm
ent is p
rovide
d usi
ng
the s
tra
ight-line m
etho
d to wr
ite of
f th
e cost o
r val
uatio
n les
s
es
timate
d resi
dual v
alu
e, using t
he foll
owing d
epre
ciatio
n rates:
Freeho
ld bu
ildin
gs 2.0% – 5.
0%
Plan
t and e
quip
ment 8.
33% – 33.33%
No deprec
iation
is pro
vided on
freehold land
.
g) Leases
At incepti
on of a con
trac
t, th
e Group a
s
ses
se
s whet
her a
contr
ac
t is, or con
ta
ins, a lea
s
e. A contra
ct is, o
r cont
ain
s, a
lea
se i
f the cont
rac
t conveys th
e righ
t to control t
he us
e of an
ide
ntiﬁe
d a
sset fo
r a per
io
d of time i
n excha
nge fo
r
consi
der
atio
n. T
o as
se
ss wh
ethe
r a contra
ct co
nveys the ri
ght
to contro
l the u
se of an i
dent
iﬁe
d as
set, th
e Grou
p use
s the
deﬁni
tio
n of a lea
se in I
FRS 16
.
As a lessee
At comme
ncem
ent or o
n mod
iﬁcat
ion of a co
ntra
ct that
cont
ain
s a lea
se com
pon
ent, th
e Grou
p all
ocate
s the
consi
der
atio
n in the co
ntra
ct to each l
ea
se comp
on
ent on th
e
ba
sis of i
ts re
lative s
ta
nda
lone p
rice
s. However
, for th
e lea
se
s
of pro
per
t
y
, the Gro
up ha
s ele
cte
d not to se
pa
rate no
n-lea
s
e
comp
one
nts a
nd accou
nt for th
e lea
se a
nd no
n-lea
s
e
comp
one
nts a
s a sin
gle l
eas
e comp
one
nt.
The G
roup re
cogni
ses a r
ight-of-use a
s
set a
nd a lea
se l
iab
ilit
y
at the l
eas
e comm
ence
ment date. Th
e righ
t
-of-us
e as
set is
init
iall
y mea
sure
d at cost
, which com
pri
ses t
he ini
tia
l amo
unt
of the l
ea
se lia
bili
t
y adjus
ted fo
r any lea
se p
ayment
s mad
e at or
befo
re the com
men
ceme
nt date, plus a
ny initi
al dire
ct co
st
s
incur
red a
nd an e
st
imate of cos
ts to d
isma
ntle a
nd rem
ove the
und
erl
ying a
ss
et or to re
sto
re the un
der
lyin
g as
set o
r the si
te
on wh
ich it is l
ocate
d, les
s any lea
se i
ncenti
ves rece
ived.
96
Carclo plc
Annu
al rep
or
t a
nd a
ccount
s 2022
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
1. Basis of prepar
ation
continued
Accounting policies
c
ontinued
g) Leases
continued
As a lessee
continued
The r
ight-of-use a
ss
et is su
bse
que
ntly de
pre
ciated us
ing th
e
str
ai
ght
-li
ne met
hod f
rom th
e comme
ncem
ent date to th
e end
of the l
ea
se ter
m, unle
ss th
e lea
se tr
an
sfer
s own
er
ship of t
he
und
erl
ying a
ss
et to the G
roup by th
e end o
f the lea
s
e term o
r
the co
st of th
e rig
ht
-of-us
e a
sset re
ﬂec
ts t
hat the G
roup wi
ll
exe
rcise a pu
rchas
e opti
on. In th
at ca
se th
e righ
t
-of-us
e as
set
will b
e dep
reciate
d over the u
sefu
l life of th
e und
erl
ying a
ss
et,
which i
s deter
min
ed on th
e sa
me ba
si
s as t
hos
e of pro
per
t
y
and e
qui
pme
nt. In add
itio
n, the r
ight-of-use a
ss
et is p
eri
odic
all
y
redu
ced by imp
air
ment l
os
ses, i
f any
, a
nd adj
uste
d for cer
t
ai
n
remea
sure
ment
s of the lea
se lia
bili
ty
.
The l
eas
e lia
bili
ty i
s init
iall
y mea
sure
d at the pr
ese
nt valu
e of
the l
eas
e payme
nts t
hat are not p
aid at t
he comm
ence
ment
date, disco
unted u
sing t
he intere
st r
ate imp
licit in t
he lea
s
e or
,
if that r
ate ca
nnot be re
adily d
eter
mine
d, the G
roup’s
incre
ment
al b
orrow
ing r
ate. Gene
ra
lly
, th
e Gro
up use
s it
s
incre
ment
al b
orrow
ing r
ate as t
he dis
count r
ate.
The G
roup d
eterm
ines i
ts i
ncreme
nta
l bo
rrowi
ng rate by
obt
ain
ing inte
res
t rates f
rom va
rio
us ex
te
rna
l ﬁnan
cing s
ources
and m
akes cer
ta
in adj
ust
ment
s to reﬂe
ct t
he ter
ms of th
e lea
se
and t
he t
yp
e of as
set l
ea
sed.
Leas
e payme
nts in
clude
d in th
e mea
sure
ment of t
he lea
se
liabilit
y comprise the following:
•
ﬁxe
d payme
nts, in
cludi
ng in-
sub
st
ance ﬁ
xed p
ayment
s;
•
var
iab
le lea
s
e paymen
ts that d
epe
nd on a
n ind
ex o
r a rate,
init
iall
y mea
sure
d usin
g the i
nde
x or rate a
s at th
e
commencemen
t dat
e
;
•
am
ount
s ex
pec
ted to b
e payab
le un
der a re
sidu
al va
lue
guaran
tee
; and
•
the e
xercis
e pri
ce unde
r a purcha
s
e optio
n that th
e Group i
s
rea
sona
bl
y cer
ta
in to e
xercise, lea
s
e payme
nts in a
n opti
ona
l
renew
al p
erio
d if th
e Grou
p is rea
so
nabl
y cer
t
ain to e
xercis
e
an e
x
tensi
on opt
ion, an
d pe
nalt
ies fo
r earl
y term
inatio
n of a
lea
se un
les
s the G
roup is r
eas
ona
bly ce
r
ta
in not to ter
minate
e
a
r
l
y.
The l
eas
e lia
bili
ty i
s mea
sure
d at amo
r
tis
ed co
st us
ing th
e
ef
fec
tive inte
res
t meth
od. It is re
mea
sure
d whe
n the
re is a
chan
ge in fu
ture l
eas
e payme
nts a
ris
ing f
rom a chan
ge in a
n
ind
ex or r
ate, if the
re is a chan
ge in th
e Grou
p’
s es
timate of th
e
am
ount e
xp
ec
ted to be p
ayabl
e und
er a resi
dua
l valu
e
gua
ran
tee, if the G
roup cha
nge
s it
s a
sse
ssm
ent of wh
ethe
r it
will e
xercis
e a purcha
s
e, ex
tensi
on or te
rmin
ation o
ptio
n or if
the
re is a revis
ed in
-sub
st
an
ce ﬁxed l
ea
se paym
ent.
Whe
n the l
eas
e lia
bili
ty i
s remea
su
red in t
his way
, a
corresponding adjustm
ent is made
to the carr
ying amount of
the r
ight-of-use a
ss
et, or i
s record
ed in p
roﬁt or l
oss i
f the
ca
rr
yin
g am
ount of th
e rig
ht
-of-us
e a
sset h
as b
ee
n redu
ced
to z
er
o.
The G
roup p
rese
nts r
ight-of-use a
ss
et
s in “
pro
per
t
y
, plan
t and
equ
ipme
nt
” and l
ea
se lia
bili
ties i
n “loan
s and b
or
rowing
s” in the
statement o
f ﬁnanci
al position.
Short-term leases and leases of lo
w-v
alue assets
The G
roup l
eas
es of
ﬁce a
nd IT e
quip
ment w
ith cont
rac
t ter
ms
t
ypic
all
y bet
wee
n one a
nd ten yea
rs. T
he Gro
up ha
s el
ec
ted
not to reco
gnis
e rig
ht
-of-us
e a
sset
s an
d lea
se l
iabi
liti
es for
lea
se
s of low-va
lue a
ss
ets a
nd sh
or
t-term lea
se
s wit
h a
dur
ation of l
es
s than o
ne year
. The G
roup re
cogni
ses t
he lea
s
e
payme
nts a
ss
ociate
d with t
hes
e lea
se
s in the i
ncom
e
st
ateme
nt, a
s an ex
pe
nse o
n a st
rai
ght-line ba
si
s over the
lea
s
e ter
m.
h) Borro
wings
The G
roup m
eas
ures a
ll deb
t ins
trum
ent
s (whethe
r ﬁnan
cial
a
sset
s or li
abi
litie
s) initia
lly at fa
ir va
lue, which e
quates to t
he
pri
ncipa
l va
lue of th
e consi
der
atio
n pai
d or rece
ived.
Sub
sequ
ent to initi
al mea
surem
ent, de
bt instr
ume
nts are
mea
sure
d at am
or
tis
ed co
st us
ing th
e ef
fec
tive inte
res
t
meth
od. T
r
ans
ac
tio
n cost
s (
any su
ch cost
s incre
ment
al a
nd
dire
ctl
y at
trib
ut
abl
e to the i
ssue o
f the ﬁna
ncia
l ins
tru
ment) are
inclu
ded i
n the c
alcul
ation of t
he ef
fec
ti
ve interes
t rate a
nd are
am
or
tis
ed over th
e life of t
he ins
tr
ument.
Debt instrument
s denominated in
foreign c
urrencies are
reval
ued u
sing p
eri
od en
d excha
nge r
ates, s
ee acco
untin
g
po
licy t) v) for the G
roup he
dge a
ccounti
ng po
lic
y
.
Bor
rowin
gs ar
e clas
siﬁe
d a
s curren
t liab
iliti
es un
les
s the G
roup
ha
s an un
condi
tio
nal r
ight to defe
r set
tl
eme
nt of the l
iabi
lit
y for
at lea
st t
we
lve mont
hs af
ter t
he rep
or
ti
ng pe
rio
d.
i) In
vent
ories
Inventor
ies a
re st
ated at th
e lower of co
st a
nd net r
ealis
ab
le
val
ue. Net rea
lis
abl
e val
ue is th
e es
timate
d sell
ing p
rice in t
he
ordi
nar
y cou
rs
e of bus
ine
ss, le
ss th
e es
timate
d cost
s of
comp
leti
on an
d sel
ling e
xp
ens
es. Th
e cos
t of other i
nventori
es
is ba
se
d on th
e ﬁr
st-in ﬁrs
t-out p
rinci
ple a
nd in
clude
s
ex
pe
ndit
ure incur
red i
n acquir
ing t
he inventor
ies a
nd b
ring
ing
the
m to thei
r ex
ist
ing lo
cati
on an
d cond
itio
n. In the c
as
e of
man
ufac
tur
ed inventor
ies a
nd wo
rk in p
rogre
ss, cos
t incl
ude
s
an a
ppro
pri
ate share o
f overhea
ds ba
se
d on no
rma
l op
erat
ing
c
a
p
a
c
i
t
y.
j) R
ev
enue recognition
Rev
enue arises on the Group’
s principal activities. F
ur
ther
det
ail
s are s
et out i
n note 6.
T
o dete
rmin
e whe
ther to re
cogn
ise reven
ue, the Gro
up foll
ows
the ﬁve
-s
tep pro
cess a
s pr
escr
ibe
d in IFRS 15
:
1
.
identifying the contract with a customer;
2.
identif
ying the per
formance obligations;
3.
determining the tran
saction price;
4. all
ocat
ing th
e tra
ns
act
ion p
rice to th
e per
form
ance
obligations; and
5.
re
cogni
sing reven
ue wh
en/
a
s per
fo
rma
nce ob
ligat
ion(s
) are
satisﬁed.
The G
roup s
omet
ime
s enter
s into tr
an
sac
tio
ns involv
ing a
ra
nge of t
he Gro
up’
s pro
duc
ts a
nd se
r
vice
s, which i
n the
T
echn
ica
l Pla
st
ics se
gme
nt woul
d gene
ra
lly b
e for too
ling a
nd
production
.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
97
Carclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
The tot
al tr
an
sac
tio
n pri
ce for a contr
ac
t is al
loc
ated am
ong
st
the va
ri
ous p
er
for
man
ce obl
igatio
ns ba
s
ed on t
heir re
lative
st
an
dal
one s
ellin
g pr
ices, o
r
, in t
he ab
sen
ce of a st
an
dal
one
sel
ling p
rice, on a co
st pl
us ma
rgin ba
si
s. The t
ran
sac
tio
n pr
ice
for a cont
rac
t exclu
des a
ny amo
unt
s colle
cte
d on b
ehal
f of thir
d
par
ties.
Revenue is r
ecog
nise
d eith
er at a p
oint in ti
me or over t
ime,
whe
n (
or a
s
) the G
roup s
atis
ﬁes p
er
for
ma
nce obl
igati
ons by
tra
ns
ferr
ing th
e prom
ise
d goo
ds o
r ser
v
ices to it
s cus
tome
rs.
The Group recognises contract liabilities for c
onsideration
recei
ved in res
pe
ct of un
sati
sﬁe
d per
form
ance o
bli
gatio
ns an
d
rep
or
t
s thes
e am
ount
s a
s contr
act l
iabi
liti
es in th
e st
ateme
nt of
ﬁnan
cial p
osi
tion (see n
ote 6
)
. Simil
arl
y
, if t
he Gro
up sati
sﬁe
s a
per
formance obligation before it r
eceives the c
onsideration,
the G
roup re
cogni
ses e
ith
er a contr
ac
t as
set o
r a receiv
abl
e in
it
s st
ateme
nt of ﬁnan
cial p
osi
tion, d
epe
ndin
g on wh
ethe
r
som
ethi
ng othe
r than t
he pa
s
sag
e of time i
s requ
ired b
efore
the consideration is due
.
k) F
oreign currency tr
ansactions
T
ransac
tions in foreign c
urrencies are translated a
t the foreign
excha
nge r
ate rul
ing at th
e date of the t
ra
nsa
cti
on. Mo
net
ar
y
a
sset
s an
d liab
ilit
ies d
eno
minated i
n foreig
n curren
cies at t
he
ba
lance s
heet d
ate are tr
an
slated to f
unc
tio
nal cur
renc
y at the
foreig
n excha
nge r
ate rul
ing at that d
ate. Foreign e
xchang
e
dif
fe
rence
s ari
sing o
n tra
nsl
ation a
re reco
gnis
ed in t
he inco
me
st
ateme
nt. No
n-mo
net
ar
y a
ss
ets a
nd li
abil
itie
s that a
re
mea
sure
d in ter
ms of hi
stor
ica
l cos
t in a forei
gn curre
ncy a
re
tra
nsl
ated usi
ng th
e excha
nge r
ate at the date of t
he
tra
ns
act
ion. No
n-m
onet
a
r
y as
set
s an
d liab
ilit
ies de
nom
inated
in forei
gn curre
ncie
s that are s
t
ated at fa
ir val
ue are t
ra
nslate
d
to ster
lin
g at foreig
n excha
nge r
ates ru
ling at t
he dates t
he fa
ir
value was det
ermined.
l) Financial statements of foreign oper
ations
The a
ss
ets a
nd li
abil
itie
s of forei
gn op
erat
ions
, includ
ing
goo
dwi
ll an
d fai
r valu
e adju
stm
ent
s ar
ising o
n cons
oli
datio
n,
are tr
an
slated to s
ter
ling at fo
reign e
xchan
ge rate
s rul
ing at th
e
ba
lance s
heet d
ate. The revenue
s an
d ex
pen
ses o
f foreig
n
op
erat
ions
are tr
an
slate
d to ster
lin
g at rate
s app
rox
imatin
g to
the fo
reign e
xchan
ge rate
s rul
ing at th
e dates of th
e
transac
tions. Foreign
exchange dif
ferences arising on
retr
ans
latio
n are reco
gnis
ed d
irec
tly in a s
epa
rate co
mpo
nent
o
f
e
q
u
i
t
y.
m) Net in
v
estment in foreign oper
ations
E
xchan
ge dif
fe
rence
s ar
isin
g from th
e tra
nsl
ation of t
he net
invest
ment i
n foreig
n ope
rati
ons, a
nd of rel
ated he
dge
s
mee
ting t
he cri
teria fo
r hed
ge accou
nting u
nde
r IFRS 9
, a
re
ta
ken to the tr
an
slatio
n res
er
ve. They ar
e relea
se
d into th
e
income
statemen
t upon di
sposal.
The G
roup ha
s t
aken ad
vant
age of re
lief ava
ilab
le un
der I
FRS 1
to not
separ
ately
recognise the cumula
tive translation
dif
fe
rence
s for all fo
reign o
per
atio
ns at the d
ate of tra
nsi
tion,
1Apr
il 200
4.
n) Dividends
Div
ide
nds a
re only r
ecog
nise
d a
s a liab
ilit
y to th
e ex
ten
t that
they a
re decl
ared p
rio
r to the yea
r end. Un
pai
d divi
den
ds that
do not m
eet th
ese cr
iter
ia are d
iscl
ose
d in the n
ote to the
ﬁnancial
statements.
o
) Net oper
ating expenses
Net o
per
ating e
x
pen
ses i
ncurre
d by the bu
sin
ess a
re wr
it
ten
of
f to the i
ncom
e st
atemen
t as i
ncurre
d.
p
) Net ﬁnancing costs
Net ﬁn
ancin
g cos
ts com
pri
se inte
res
t payab
le on b
orrow
ing
s
ca
lculated u
sin
g the ef
fe
cti
ve interes
t rate m
etho
d, intere
st
recei
vab
le on f
unds i
nveste
d, divid
end i
ncom
e and g
ains a
nd
los
se
s on he
dgin
g ins
tru
ment
s that a
re reco
gnis
ed in th
e
income stat
ement.
Intere
st i
s recog
nise
d in th
e incom
e st
ateme
nt as i
t accru
es,
using the effec
tive i
nterest method.
q) Cash and cash equiv
alents
Ca
sh a
nd ca
sh e
quiv
ale
nts co
mpr
ise c
as
h bal
ance
s and c
all
dep
osi
ts. B
ank overdr
af
t
s that ar
e repayab
le o
n dema
nd a
nd
form a
n inte
gra
l par
t of the G
roup’s cas
h man
agem
ent a
re
inclu
ded a
s a com
po
nent of c
as
h and c
a
sh equ
iva
lent
s for th
e
pur
pos
e of th
e st
atemen
t of ca
sh ﬂow
s.
Ban
k overdraf
ts a
re show
n with
in bo
rrowi
ngs in cu
rrent
liab
ilit
ies i
n the ba
lan
ce she
et unl
ess t
hey are p
ar
t of t
he net
overdra
f
t facil
it
y which h
as a £ni
l net li
mit, in w
hich ca
se t
hey
are of
f
set a
gai
nst c
a
sh.
r) T
axation
Inco
me ta
x on t
he proﬁ
t or lo
ss for t
he year co
mpr
ise
s current
and d
efer
red t
a
x. I
ncom
e ta
x is reco
gnis
ed in t
he in
come
st
ateme
nt except to t
he ex
te
nt that it r
elates to i
tems
reco
gnis
ed dire
ct
ly in e
quit
y
, i
n which c
as
e it is re
cogn
ise
d in
equ
it
y or th
e st
ateme
nt of comp
rehe
nsive in
come.
Curre
nt ta
x is th
e ex
pe
cted t
a
x p
ayabl
e on th
e ta
xa
ble i
ncom
e
for th
e year
, u
sin
g ta
x rates e
nac
ted or s
ubs
ta
ntivel
y enac
ted at
the b
ala
nce sh
eet date, an
d any adju
stm
ent to t
a
x paya
ble i
n
resp
ec
t of prev
ious yea
rs.
Defe
rred t
a
x i
s provid
ed us
ing th
e ba
lance s
hee
t liab
ilit
y
meth
od, provi
din
g for temp
or
ar
y di
f
ference
s bet
we
en th
e
ca
rr
yin
g am
ount
s of a
sset
s an
d lia
bilit
ies fo
r ﬁnan
cial re
por
t
ing
pur
pos
es a
nd th
e amo
unts u
se
d for ta
x
ation p
urp
ose
s. The
foll
owing te
mpo
rar
y dif
fe
rence
s are not p
rovide
d for: g
ood
will
not de
duc
tib
le for t
a
x p
urp
ose
s, the i
nitia
l reco
gnit
ion of a
ss
et
s
or lia
bili
tie
s that af
fe
ct ne
ith
er accoun
ting n
or ta
x
abl
e proﬁt
,
and d
if
fere
nces re
latin
g to investm
ent
s in sub
sidi
ari
es to th
e
ex
ten
t that they w
ill pro
bab
ly not rever
s
e in the fo
rese
eab
le
fut
ure. The a
mount o
f defer
red t
a
x prov
ide
d is ba
se
d on th
e
ex
pe
cte
d mann
er of rea
lis
ation o
r set
tl
eme
nt of the c
ar
r
ying
am
ount of a
ss
ets a
nd lia
bil
itie
s, usi
ng ta
x rate
s enac
ted o
r
sub
st
anti
vely ena
cte
d at the ba
la
nce she
et date.
A defer
red t
a
x a
ss
et is re
cogni
sed o
nly to th
e ex
te
nt that it is
prob
ab
le that f
uture t
a
x
ab
le pro
ﬁts w
ill be ava
ila
ble a
gain
st
which t
he a
sse
t can b
e uti
lise
d.
Defe
rred t
a
x a
s
set
s are re
duced to t
he ex
te
nt that it i
s no
lon
ger p
roba
bl
e that the re
lated t
a
x b
eneﬁ
t will b
e real
ise
d.
Additional income ta
xes that arise from the distribution of
divi
den
ds fro
m foreig
n ope
rati
ons a
re reco
gnis
ed at the s
am
e
tim
e as t
he lia
bili
ty to p
ay the rel
ated div
iden
d.
Comp
ani
es wi
thin th
e Grou
p may be ent
itle
d to clai
m spe
cial
ta
x de
duc
tio
ns in rel
ation to q
uali
f
ying e
x
pen
ditu
re (
e.
g.
Resea
rch an
d Devel
opm
ent)
. The Gro
up accou
nts for s
uch
all
owan
ces a
s ta
x cred
its, w
hich me
ans th
at the a
llowa
nce
redu
ces th
e ta
x payab
le a
nd curre
nt ta
x ex
pe
nse.
98
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
1. Basis of prepar
ation
continued
Accounting policies
c
ontinued
s) R
etirement beneﬁt costs
The G
roup o
per
ates a deﬁ
ned b
eneﬁ
t pen
sio
n schem
e an
d als
o
makes p
ayment
s into de
ﬁned co
ntri
but
ion s
cheme
s for
employ
ees. T
he pension pa
yable unde
r the de
ﬁned beneﬁt
sche
me is c
alcul
ated ba
se
d on year
s of s
er
vi
ce up to retire
ment
and p
en
siona
bl
e sa
lar
y at th
e poi
nt of retire
ment
.
In th
e year to 31 March 2022, memb
er
s of the C
arclo G
roup
Pensi
on Sch
eme we
re of
fered t
he ri
ght to ta
ke a Pensio
n
Increa
s
e Exch
ang
e. This opt
ion en
abl
es me
mbe
rs to e
xcha
nge
cer
t
ain f
utur
e pen
sion i
ncrea
ses i
n retire
ment fo
r a one
-of
f
upli
f
t. Refer to note 24 for more i
nform
ation.
The n
et obl
igatio
n in res
pe
ct of th
e deﬁn
ed b
eneﬁ
t pla
n is the
pres
ent va
lue of t
he deﬁ
ned b
eneﬁ
t obl
igati
ons le
ss th
e fa
ir
val
ue of th
e pla
n’
s as
set
s at the b
ala
nce she
et date.
The a
ss
umpti
ons u
sed to c
alcul
ate the pr
ese
nt valu
e of the
deﬁn
ed be
neﬁt o
bli
gatio
ns are d
eta
ile
d in note 24.
IFRI
C 1
4 requi
res th
at where p
lan a
s
set
s excee
d the d
eﬁne
d
ben
eﬁt ob
ligat
ion, a
n as
set is r
ecog
nise
d to the e
x
tent that a
n
econ
omi
c ben
eﬁt is avai
lab
le to th
e Group, in acco
rdan
ce with
the te
rms of t
he pla
n an
d app
lic
abl
e st
atuto
r
y requ
irem
ents
and t
he be
neﬁt s
hou
ld be rea
lis
ab
le dur
ing t
he life of t
he pla
n or
on th
e set
tl
eme
nt of the p
lan li
abi
litie
s.
The o
per
ating a
nd ﬁn
ancin
g cos
ts of th
e sche
me a
re
reco
gnis
ed se
par
ately i
n the in
come s
tate
ment in t
he pe
rio
d
they arise.
Payment
s to the d
eﬁne
d contr
ibu
tion s
chem
es a
re accounte
d
for on a
n accru
als b
as
is. On
ce the p
ayment
s have bee
n made
the Group has no fur
ther obligation.
t) Financial instruments
i) R
ecognition and initial measurement
T
ra
de rece
ivab
les a
nd d
ebt se
curi
ties i
ssu
ed are i
nitia
lly
reco
gnis
ed wh
en they a
re or
iginate
d. All oth
er ﬁna
ncia
l as
set
s
and ﬁ
nan
cial lia
bil
itie
s are in
itia
lly re
cogni
sed w
hen th
e Grou
p
be
come
s a par
t
y to the cont
rac
tua
l provi
sion
s of the
instrument.
A ﬁnan
cial a
ss
et (unles
s it is a tr
ade re
ceiva
ble w
ith
out a
sign
iﬁca
nt ﬁna
nce comp
on
ent) or ﬁnan
cial li
abi
lit
y is in
itia
lly
mea
sure
d at fa
ir val
ue (pl
us tr
ans
ac
tion co
st
s that a
re direc
tl
y
at
trib
ut
ab
le to it
s acqui
siti
on or is
sue fo
r an ite
m not at Fair
Value Thro
ugh Pro
ﬁt or Los
s (“FV
TPL
”)
)
. A trad
e recei
vab
le
wit
hout a s
igni
ﬁca
nt ﬁnan
cing com
pon
ent is i
nitia
lly m
eas
ured
at the transaction price.
The f
air va
lue i
s the a
moun
t at which a ﬁna
ncia
l ins
tru
ment
could b
e exch
ang
ed in a
n ar
m’
s len
gth tr
ans
ac
tio
n bet
wee
n
third p
ar
t
ies. W
here ava
ilab
le, mar
ket valu
es a
re use
d to
deter
min
e fai
r valu
es, oth
er
wi
se fa
ir va
lue
s are ca
lculate
d by
dis
counti
ng ex
pe
cte
d ca
sh ﬂow
s at preva
ilin
g intere
st an
d
excha
ng
e rates
.
ii) Classiﬁcation and subsequent measurement
On in
itia
l reco
gniti
on, a ﬁna
ncia
l as
set is cl
as
siﬁe
d a
s mea
sure
d
at: amo
r
tis
ed co
st; Fair Value T
hrou
gh O
ther Co
mpre
hen
sive
Inco
me (“FVOCI
”) – debt i
nvestm
ent; F
VOCI – eq
uit
y
investm
ent; or F
V
TPL.
Fina
ncial a
s
set
s are not re
cla
ssi
ﬁed su
bse
que
nt to thei
r init
ial
reco
gniti
on un
les
s the G
roup cha
nge
s it
s busi
nes
s mod
el for
man
agin
g ﬁnan
cial a
ss
ets, i
n which c
as
e all a
f
fec
ted ﬁna
ncia
l
a
sset
s are re
cla
ssi
ﬁed o
n the ﬁr
s
t day of the ﬁr
st re
po
r
ting
period follo
wing the
change i
n business model
.
A ﬁnan
cial a
ss
et is m
eas
ured at a
mor
t
ise
d cos
t if it me
et
s both
of the fo
llowi
ng con
diti
ons a
nd is not d
esi
gnated a
s at F
V
TPL:
•
it is h
eld w
ithin a b
usi
nes
s mod
el wh
ose o
bje
cti
ve is to hol
d
a
sset
s to coll
ec
t contr
ac
tual c
a
sh ﬂows; a
nd
•
it
s contr
act
ual te
rms g
ive ris
e on sp
eciﬁe
d dates to c
a
sh
ﬂows t
hat are s
ole
ly payme
nts of p
rin
cipa
l and i
nteres
t on
the princ
ipal amount
outsta
nding
.
On in
itia
l reco
gniti
on of a
n equi
t
y invest
ment t
hat is not he
ld
for tr
adin
g, the Gro
up may ir
revoca
bly e
lec
t to pre
sent
sub
seq
uent cha
nge
s in th
e invest
ment
’s fair v
alue i
n Ot
her
Comp
rehe
nsive In
come (“OCI”
)
. This e
lec
tio
n is mad
e on a
n
inve
st
me
nt
-by-
inve
st
me
nt ba
s
is.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
99
Carclo plc
Annu
al re
po
r
t an
d accoun
ts 2022
All ﬁ
nancia
l a
sse
ts not cla
s
siﬁe
d as m
ea
sure
d at amo
r
tis
ed cos
t
or F
VOCI a
s des
crib
ed a
bove are m
eas
ured at F
V
TPL. Thi
s
inclu
des a
ll de
rivat
ive ﬁna
ncial a
s
set
s. On in
itia
l recog
niti
on,
theG
roup may ir
revoca
bly d
esi
gnate a ﬁna
ncial a
s
set th
at
othe
r
wise m
eet
s the r
equi
reme
nts to b
e mea
sure
d at
am
or
tis
ed co
st or at F
VOCI a
s at F
V
TPL, if do
ing so e
limi
nates
or signiﬁcantly reduces an acc
ounting mismatc
h that
would
otherw
ise arise.
Fina
ncial a
s
set
s at FV
T
PL are sub
se
quen
tly mea
su
red at fa
ir
val
ue. Net ga
ins a
nd lo
sse
s, incl
udin
g any intere
st o
r divi
den
d
inco
me, are reco
gnis
ed in p
roﬁt o
r los
s.
Fina
ncial a
s
set
s at amo
r
tis
ed cos
t are s
ubs
equ
ently m
ea
sured
at amo
r
tis
ed co
st us
ing th
e ef
fec
tive inte
res
t meth
od. The
am
or
tis
ed co
st is re
duce
d by impa
irm
ent lo
sse
s. Inte
rest
inco
me, foreign e
xcha
nge ga
ins a
nd lo
ss
es an
d impa
ir
ment a
re
reco
gnis
ed in p
roﬁt or l
oss. A
ny gain o
r los
s on d
ereco
gnit
ion is
reco
gnis
ed in p
roﬁt or l
oss.
Equit
y inves
tme
nts at F
VOCI are s
ubs
equ
ently m
ea
sured at f
air
val
ue. Divi
den
ds ar
e recog
nise
d a
s incom
e in the p
roﬁt o
r los
s
unle
ss th
e div
iden
d clea
rly re
pres
ent
s a recover
y of pa
r
t of th
e
cos
t of the inves
tm
ent. O
ther n
et ga
ins an
d los
se
s are
reco
gnis
ed in O
CI and a
re never re
cla
ssiﬁ
ed to proﬁ
t or lo
ss.
Fina
ncial l
iabi
liti
es ar
e clas
siﬁe
d a
s mea
sure
d at amo
r
tis
ed cos
t
or F
V
TPL. A ﬁna
ncial l
iab
ilit
y is cla
s
siﬁe
d as F
V
TPL i
f it is
classiﬁed a
s held-for
-trading, it is a derivativ
e or it is designat
ed
a
s such on i
nitia
l reco
gnit
ion. Fin
ancia
l lia
bili
ties at F
V
TPL a
re
mea
sure
d at fa
ir val
ue an
d net ga
ins a
nd lo
sse
s, incl
udin
g any
intere
st e
xp
ens
e, are reco
gnis
ed in p
roﬁt an
d los
s. O
ther
ﬁnan
cial li
abi
litie
s are s
ubs
equ
ently m
ea
sured at a
mor
tis
ed
cos
t usin
g the ef
fe
cti
ve intere
st me
tho
d. Interes
t ex
pe
nse a
nd
foreig
n excha
nge g
ain
s and l
oss
es a
re reco
gnis
ed in pro
ﬁt an
d
los
s. Any ga
in or l
oss o
n dere
cogn
itio
n is al
so reco
gnis
ed in
proﬁt a
nd l
oss.
iii) Derecognition
The G
roup d
ereco
gnis
es a ﬁna
ncia
l as
set w
hen th
e contr
ac
tual
rig
hts to th
e ca
sh ﬂow
s from t
he ﬁna
ncia
l as
set e
xp
ire, or it
tra
ns
fer
s the r
ight
s to receive th
e contr
ac
tua
l ca
sh ﬂow in a
tra
ns
act
ion in w
hich su
bst
ant
iall
y all of t
he ri
sk
s and rew
ards o
f
owne
rs
hip of th
e ﬁnan
cial a
ss
et are t
ran
sfer
red o
r in whi
ch the
Grou
p neit
her t
ran
sfer
s no
r ret
ains s
ubs
ta
ntia
lly a
ll of the r
isk
s
and r
eward
s of owne
rs
hip an
d it do
es not re
ta
in contro
l of the
ﬁnancial a
sset.
The G
roup d
ereco
gnis
es a ﬁna
ncia
l liab
ilit
y w
hen it
s cont
rac
tua
l
obl
igati
ons a
re disch
arge
d or c
ance
lled, o
r ex
pire. The G
roup
als
o de
recog
nise
s a ﬁna
ncial l
iabi
lit
y wh
en it
s term
s are
mod
iﬁe
d and t
he ca
sh ﬂ
ows of th
e mod
iﬁed l
iabi
lit
y ar
e
sub
st
antia
lly d
if
feren
t, in whi
ch ca
se a new ﬁ
nancia
l lia
bili
t
y
ba
se
d on mo
diﬁe
d term
s is reco
gnis
ed at f
air va
lue.
On d
ereco
gnit
ion of a ﬁn
ancia
l lia
bili
ty
, the di
f
feren
ce bet
wee
n
the carr
ying amount ex
tinguished and the consideration paid
(inclu
ding a
ny non-
ca
sh a
s
set
s tra
ns
ferre
d or lia
bili
tie
s
a
ssum
ed) is re
cogn
ise
d in proﬁ
t or lo
ss.
iv) Offsetting
Fina
ncial a
s
set
s and ﬁ
nanci
al lia
bili
tie
s are of
f
set a
nd th
e net
am
ount
s pres
ente
d in the s
tate
ment of ﬁ
nancia
l po
siti
on wh
en,
and o
nly w
hen, th
e Grou
p current
ly ha
s a le
gall
y enforcea
ble
rig
ht to set of
f t
he am
ount
s and i
t inten
ds to set
t
le th
em on a
net ba
si
s or to rea
lise t
he a
sse
t and s
et
tle t
he lia
bili
t
y
simultan
eously
.
v) Hedge accounting
Net in
v
estment hedges
Whe
n a non
-d
eriv
ative ﬁna
ncia
l liab
ilit
y is d
esi
gnated a
s th
e
hed
gin
g ins
trum
ent in a h
edg
e of a net inves
tm
ent in a fore
ign
ope
rati
on, the e
f
fec
tive po
r
tio
n of foreig
n excha
nge g
ains a
nd
los
se
s is reco
gnis
ed in O
CI and p
rese
nted in t
he tr
ans
latio
n
res
er
ve wit
hin eq
uit
y
. A
ny inef
fe
cti
ve por
t
ion of t
he forei
gn
excha
nge g
ain
s and l
oss
es is re
cogn
ise
d imme
diatel
y in proﬁ
t
or lo
ss. Th
e am
ount re
cogni
sed i
n OCI is re
clas
siﬁe
d to proﬁ
t or
loss as a reclassiﬁc
ation adjustment on disposal of foreign
operations
.
10
0
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
1. Basis of prepar
ation
continued
Accounting policies
c
ontinued
u) Share-based pa
yments
The Group issues awards structured as equit
y-set
tled share-
ba
se
d paymen
ts a
nd ca
sh
-set
t
led s
hare
-ba
se
d payme
nts to
cer
t
ain e
mpl
oyees in e
xchang
e for se
r
vice
s rend
ered by th
em.
The f
air va
lue o
f the eq
uit
y-s
et
tle
d sha
re-b
as
ed awa
rd is
ca
lculated at d
ate of gra
nt an
d is ex
pe
nse
d on a st
ra
ight-line
ba
sis over th
e ves
ting p
eri
od wi
th a cor
resp
ond
ing in
crea
se in
equ
it
y
. Th
e fai
r valu
e of the c
a
sh-s
et
tle
d award i
s cal
culated at
date of gr
ant a
nd reco
gnis
ed a
s an e
xp
ens
e over the ve
sti
ng
per
io
d ba
sed u
pon t
he ca
sh e
xp
ec
ted to b
e pai
d. The fa
ir va
lue
of ca
sh
-set
tl
ed sh
are
-ba
se
d payme
nts i
s reca
lculate
d at each
rep
or
tin
g date an
d the accr
ual r
evise
d accordi
ngly
. Both
val
uatio
ns are b
as
ed o
n the G
roup’s estim
ate of sha
re awards
that wi
ll eventua
lly ves
t an
d ta
ke into account m
ovement of
non
-ma
rket cond
itio
ns, b
eing s
er
vi
ce condi
tion
s and ﬁ
nan
cial
per
formance
, if
relevant
.
v) Impairment
i) Non-ﬁnancial assets
For non
-ﬁna
ncial a
s
set
s the con
tinui
ng po
lic
y is a
s follow
s:
The c
arr
yin
g amo
unts o
f the Gro
up’s ass
ets, oth
er tha
n
inventor
ies (see acco
untin
g pol
icy i) a
nd defe
rre
d ta
x a
sset
s
(
se
e accounti
ng po
lic
y r)
, are revi
ewed at each b
ala
nce sh
eet
date to dete
rmin
e whet
her t
here is a
ny indi
catio
n of
impa
ir
ment. I
f any such in
dic
ation e
xi
st
s, the a
ss
et
’s
recov
erable am
ount is estimat
ed.
For go
odw
ill, a
sset
s that h
ave an indeﬁ
nite us
eful l
ife an
d
int
ang
ible a
s
set
s that ar
e not yet availa
ble fo
r us
e, the
recover
abl
e amo
unt is e
sti
mated at each b
ala
nce sh
eet date.
An im
pai
rme
nt los
s is reco
gnis
ed w
heneve
r the ca
rr
y
ing
am
ount of a
n as
set o
r its c
a
sh ge
ner
ating un
it exce
ed
s its
recover
abl
e amo
unt. Im
pai
rme
nt los
se
s are reco
gnis
ed i
n the
income stat
ement.
Imp
air
ment l
oss
es re
cogni
sed i
n resp
ec
t of ca
sh g
ene
ratin
g
unit
s are a
llo
cate
d ﬁrs
t to red
uce the c
ar
r
ying a
mo
unt of any
goo
dwi
ll all
oc
ated to ca
sh g
ene
ratin
g unit
s or gr
oup of un
its
and t
hen to re
duce th
e ca
rr
yi
ng am
ount of t
he othe
r as
set
s in
the un
it or g
roup of un
its o
n a pro
-rat
a ba
sis.
ii) Financial assets
The G
roup m
eas
ures l
oss a
llowa
nces fo
r es
timate of e
xp
ec
ted
credi
t los
ses (“ECLs”) o
n:
•
ﬁnan
cial a
ss
et
s mea
sure
d at amo
r
tis
ed cos
t; an
d
•
contr
ac
t as
set
s (
as d
eﬁne
d in IFRS 15)
.
The G
roup m
eas
ures l
oss a
llowa
nces at a
n am
ount e
qua
l to
lifet
ime ECL, except fo
r ban
k bal
ance
s for whi
ch the cre
dit r
isk
has not increased signiﬁcantly
.
Loss a
llowa
nces fo
r tra
de rece
ivab
les a
nd co
ntrac
t a
ss
ets a
re
alw
ays mea
sure
d at an am
ount e
qua
l to lifeti
me ECL.
Whe
n deter
min
ing wh
ethe
r the cre
dit r
isk of a ﬁna
ncia
l as
set
has increased signiﬁcantly since initial recognition and when
es
timati
ng ECL, the G
roup con
side
rs re
as
ona
ble a
nd
supp
or
t
ab
le info
rmati
on that i
s releva
nt an
d availa
bl
e with
out
undu
e cos
t or ef
for
t. This i
nclud
es b
oth qua
ntit
ative an
d
qua
lit
ative infor
mati
on an
d ana
lysi
s, ba
se
d on the G
roup’s
his
tori
cal e
xp
er
ience a
nd info
rme
d credi
t a
sse
ssm
ent a
nd
including forwa
rd-look
ing information.
The G
roup a
ss
umes t
hat the cre
dit r
isk o
n a ﬁnan
cial a
ss
et ha
s
increa
se
d sign
iﬁca
ntly i
f it is m
ore tha
n 1
20 days pa
st du
e.
The G
roup con
sid
er
s a ﬁnan
cial a
ss
et to be in d
efau
lt wh
en:
•
the b
or
rower is unl
ikely to pay it
s credi
t obl
igati
ons to th
e
Grou
p in ful
l, with
out re
cour
se by th
e Group to a
cti
ons s
uch
a
s realis
ing s
ecur
it
y (if any is h
eld); or
•
the ﬁn
ancia
l a
sse
t is more t
han 120 da
ys pa
s
t due.
Lifeti
me ECLs a
re the ECLs th
at resul
t from a
ll p
ossi
ble d
efau
lt
events over t
he ex
pe
cte
d life of a ﬁ
nancia
l ins
tr
umen
t.
T
welve
-mo
nth ECLs ar
e the po
r
tio
n of ECLs that re
sult f
rom
defa
ult event
s that a
re po
ssib
le wi
thin th
e t
welve mo
nths a
f
ter
the re
por
tin
g date (
or a sh
or
ter p
er
iod i
f the e
xp
ec
ted life of t
he
ins
tru
ment i
s les
s than t
we
lve mont
hs)
.
ECLs are a p
roba
bili
t
y-weighte
d es
timate of cre
dit lo
ss
es. Cred
it
los
se
s are mea
su
red a
s the p
res
ent va
lue of a
ll ca
sh s
hor
t
f
all
s
(i.e
. the di
f
feren
ce bet
wee
n the con
trac
ted c
a
sh ﬂows a
nd th
e
ca
sh ﬂow
s the G
roup e
xp
ec
ts to re
ceive)
. ECLs a
re dis
counte
d
at the ef
fe
ct
ive intere
st r
ate of the ﬁna
ncia
l a
sset.
At each rep
or
tin
g date, the G
roup a
ss
ess
es wh
ethe
r ﬁnan
cial
a
sset
s ca
rr
ied at a
mor
t
ise
d cos
t are cred
it-impai
red. A ﬁna
ncia
l
a
sset i
s credi
t
-imp
aire
d whe
n one o
r more event
s that have a
detr
ime
nta
l imp
act o
n the e
sti
mated fu
ture c
as
h ﬂows of t
he
a
ss
et
s have oc
curr
ed.
w) Exceptional it
ems
In ord
er for u
ser
s of th
e account
s to bet
te
r und
er
st
and t
he
und
erl
ying p
er
for
ma
nce of the G
roup, the B
oa
rd ha
s sep
arate
ly
dis
clos
ed tr
ans
ac
tio
ns whi
ch, whils
t fa
llin
g with
in the o
rdina
r
y
ac
tivi
ties of t
he Gro
up, are, by vir
tu
e of the
ir size or i
ncide
nce,
consi
dere
d to be e
xceptio
nal i
n nature. Su
ch tra
nsa
cti
ons
inclu
de, but a
re not lim
ited to: ratio
nal
isati
on, res
tr
uct
uri
ng an
d
reﬁna
ncing of t
he Gro
up, cost
s of imp
air
ment
, one
-of
f
retire
ment b
ene
ﬁt ef
fec
ts, l
itig
ation co
st
s an
d materi
al ba
d
debt
s.
Non
-o
per
atin
g excepti
ona
l item
s ari
se fro
m cos
ts in
curre
d
out
sid
e the o
rdina
r
y cour
se of t
he Gro
up’
s bus
ine
ss.
Such i
tems in
clud
e proﬁt
s, lo
sse
s an
d as
so
ciated cos
ts a
ris
ing
on th
e disp
os
al of su
rpl
us pro
per
tie
s and b
usin
es
ses.
x) Segment reporting
Se
gment
al i
nform
ation i
s pres
ente
d on the s
am
e ba
sis a
s that
use
d for inte
rna
l repo
r
tin
g to the chi
ef ope
rati
ng de
cisio
n
m
a
k
e
r.
y) Pro
visions
A provis
ion is re
cogn
ise
d in the b
ala
nce sh
eet wh
en th
e Grou
p
ha
s a pres
ent l
ega
l or cons
tr
uc
tive ob
ligati
on a
s a resu
lt of a
pa
st event
, that ca
n be re
liab
ly mea
sur
ed an
d it is p
roba
ble t
hat
an ou
t
ﬂow of eco
nom
ic be
neﬁt
s will b
e req
uired to s
et
tle t
he
obligation. Pr
ovisions are determined by
discounting the
ex
pe
cte
d futu
re ca
sh ﬂow
s at a pre
-ta
x r
ate that reﬂ
ec
ts ri
sk
s
spe
ciﬁc to th
e lia
bilit
y to t
he ex
te
nt that th
e ef
fec
t of
discounting is ma
terial. Pro
visions totalling £
0
.08
7 million ha
ve
be
en reco
gnis
ed at 31 Ma
rch 20
22 (20
2
1
: £nil); fur
th
er det
ail
s
ca
n be foun
d in note 25.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
101
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
z) Non-current assets held for sale and
discontinued operations
A non
-cur
rent a
ss
et or a gro
up of a
sse
ts con
ta
ining a
non
-cur
rent a
ss
et (
a disp
os
al gro
up) is clas
siﬁe
d as h
eld fo
r sa
le
if it
s ca
rr
yi
ng am
ount w
ill be re
covered p
rinci
pal
ly thro
ugh s
ale
rath
er tha
n thro
ugh cont
inuin
g us
e, it is availa
bl
e for imm
ediate
sa
le an
d sa
le is hi
ghly p
roba
bl
e with
in one yea
r
.
On in
itia
l cla
ssiﬁ
catio
n a
s hel
d for sa
le, non
-cur
rent a
ss
ets a
nd
disp
os
al gro
ups a
re mea
sure
d at the l
ower of prev
ious c
ar
r
yin
g
am
ount a
nd fa
ir val
ue le
ss cos
ts to s
ell w
ith a
ny adjus
tme
nts
ta
ken to proﬁt o
r los
s. The s
am
e ap
plie
s to gai
ns an
d los
ses o
n
subsequent reme
asurement although gains
are no
t recogni
sed
in exce
ss of a
ny cumulati
ve impa
irm
ent lo
ss. Any im
pai
rme
nt
los
s on a di
spo
sa
l group i
s ﬁrs
t al
loc
ated to go
odw
ill, an
d the
n
to rema
inin
g as
set
s an
d liab
ilit
ies o
n a pro-
rat
a ba
sis, e
xcept
that no l
oss i
s all
ocate
d to inventor
ies, ﬁ
nancia
l a
sse
ts, d
eferre
d
ta
x a
sse
ts, e
mployee b
ene
ﬁt a
sset
s an
d inves
tment p
rop
er
t
y
,
which co
ntinu
e to be mea
su
red in a
ccordan
ce wit
h the Gr
oup’s
account
ing p
olici
es. Int
an
gib
le a
sse
ts a
nd pro
per
t
y
, plant a
nd
equ
ipme
nt once cla
s
siﬁe
d as h
eld fo
r sa
le or d
ist
rib
utio
n are
not
amortised or dep
reci
at
ed.
A dis
contin
ued o
per
atio
n is a comp
one
nt of the G
roup’s
bus
ine
ss that re
pres
ent
s a sep
ar
ate majo
r line o
f busi
nes
s or
geo
gr
aph
ica
l area of o
per
ation
s that ha
s be
en di
spo
se
d of or is
hel
d for sa
le, or is a s
ubsi
dia
r
y acqui
red excl
usive
ly wit
h a view
to res
ale. Cla
ss
iﬁcat
ion a
s a dis
conti
nued o
pe
ratio
n occur
s
upo
n disp
os
al o
r when t
he op
er
ation m
eet
s the cr
iter
ia to be
cla
ssiﬁ
ed a
s hel
d for s
ale, if ea
rli
er
. When a
n op
erat
ion is
cla
ssiﬁ
ed a
s a dis
contin
ued o
per
atio
n, the com
par
ative in
come
st
ateme
nt is res
tate
d a
s if the o
per
atio
n ha
s bee
n dis
contin
ued
from t
he st
ar
t of the co
mpa
rati
ve per
iod.
aa) Gov
ernment grants
On
ce there i
s reas
ona
ble a
s
sura
nce th
at the Gro
up wil
l comp
ly
wit
h any cond
itio
ns at
ta
ched to a
n inco
me-
ba
se
d governm
ent
gra
nt, such g
ran
ts a
re recog
nise
d in th
e incom
e st
ateme
nt over
the p
eri
od in w
hich th
e related co
st
s are re
cogn
ise
d as a
n
ex
pe
nse. They a
re pre
sente
d by dedu
ct
ing th
e gra
nt inco
me
from t
he rel
ated ex
pe
nse u
nles
s by vir
t
ue of size o
r incid
ence
separate disclosure is required
.
ab
) Current v
ersus non-current disclosure
Curre
nt liab
ilit
ies a
re tho
se wh
ich are du
e to be s
et
tle
d with
in
t
welve mo
nths of t
he rep
or
ti
ng date, or wh
ere th
e Group d
oe
s
not have an un
condi
tio
nal r
ight to defe
r for at lea
s
t t
welve
mont
hs af
ter t
he rep
or
t
ing date. Al
l other li
abi
litie
s are
cla
ssiﬁ
ed a
s non
-cur
rent.
2. Accounting estimat
es and judgements
The p
repa
rati
on of th
e ﬁnan
cial s
tatem
ent
s in confor
mit
y w
ith
IFRS re
quire
s mana
gem
ent to ma
ke judge
ment
s, es
tim
ates an
d
a
ssum
ption
s that af
fe
ct th
e app
lic
ation o
f pol
icies a
nd rep
or
te
d
am
ount
s of as
set
s an
d liab
ilit
ies, i
ncome a
nd e
xp
ens
es.
The e
sti
mates a
nd a
ssum
ptio
ns are b
as
ed o
n his
toric
al
ex
pe
rien
ce and v
ar
ious ot
her fa
cto
rs t
hat are b
elieve
d to be
rea
sona
bl
e und
er the circu
mst
an
ces. Th
ese e
st
imates a
nd
a
ssum
ption
s form t
he ba
sis fo
r mak
ing j
udg
emen
ts a
bou
t the
ca
rr
yin
g val
ues of a
s
set
s and l
iabi
liti
es that a
re not read
ily
ap
pare
nt from ot
her s
ources. A
ctu
al re
sult
s may dif
fe
r from
these esti
mat
es.
The e
sti
mates a
nd und
erl
ying a
s
sumpt
ions a
re reviewe
d on a
n
ongoing ba
sis. R
evisions to ac
counting estimates are
reco
gnis
ed in th
e per
io
d in whi
ch the es
tim
ate is revis
ed if t
he
revisi
on af
fe
ct
s onl
y that pe
rio
d, or in th
e per
iod o
f revisi
on an
d
fut
ure pe
rio
ds if t
he revis
ion af
fe
ct
s bot
h current a
nd f
uture
periods.
The fo
llowi
ng are t
he cri
tica
l jud
gem
ents a
nd key sou
rces of
es
timati
on un
cer
ta
int
y that t
he Di
rec
tor
s have made in t
he
pro
cess of a
ppl
ying t
he Gro
up’s accounting p
oli
cies a
nd that
have the mo
st si
gniﬁc
ant ef
fec
t on th
e amo
unts re
cogn
ise
d in
the ﬁn
ancia
l st
atem
ents. M
ana
gem
ent ha
s dis
cuss
ed th
ese
wit
h the Aud
it an
d Ris
k Commi
t
tee. The
se sh
ould b
e read in
conjunction with the signiﬁcant acc
ounting policies provided in
the n
otes to the ﬁ
nanci
al st
atem
ent
s.
Going concern
Note 1 cont
ai
ns infor
matio
n ab
out t
he pre
par
atio
n of the
se
ﬁnan
cial s
tate
ment
s on a g
oing co
ncer
n ba
sis.
Ke
y judgements
Ma
nagem
ent ha
s e
xercise
d jud
gem
ent over th
e likelih
oo
d of
the G
roup b
eing a
bl
e to continu
e to op
erate wi
thin i
ts ava
ilab
le
facil
itie
s an
d in accorda
nce wi
th it
s covenant
s for th
e t
welve
mont
hs fro
m the date of s
igni
ng the
se ﬁna
ncia
l st
ateme
nts.
This d
eter
mine
s whet
her th
e Grou
p sho
uld op
er
ate the go
ing
conce
rn ba
si
s of prep
arat
ion fo
r thes
e ﬁna
ncial s
tate
ment
s.
Impairment of assets
Notes 15 and 16 conta
in info
rmati
on ab
out m
anag
eme
nt
’
s
es
timate
s of the re
covera
ble a
mou
nt of ca
sh ge
ner
ating u
nit
s
and their risk factor
s.
Ke
y judgements
Management h
as exerci
sed judgement
ov
er the u
nderlying
a
ssum
ption
s with
in the v
aluat
ion m
ode
ls an
d ha
s app
lie
d
jud
geme
nt to dete
rmin
e the G
roup’s cas
h gen
erati
ng uni
ts to
which g
oo
dwil
l is all
ocate
d an
d agai
nst w
hich im
pai
rme
nt
tes
ting i
s per
fo
rme
d. The
se a
re key facto
rs in t
heir a
s
ses
sme
nt
of whe
ther t
here i
s any impa
ir
ment in r
elated g
oo
dwill o
r othe
r
a
sset
s.
Recent
ly acqui
red a
ss
ets awa
iti
ng ful
l sca
le p
rodu
cti
on have
be
en cons
ide
red for in
dic
ator
s of impa
ir
ment. J
udg
emen
t has
be
en ap
plie
d whe
n cons
ider
ing vo
lume
s and t
imin
g of orde
rs
.
102
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
R
ev
enue recognition
As reve
nue fro
m too
ling co
ntrac
t
s is reco
gnis
ed over ti
me, the
am
ount of revenu
e reco
gnis
ed in a re
por
ting p
er
iod d
epe
nds
on th
e ex
tent to w
hich th
e per
form
ance o
blig
ation
s have bee
n
satisﬁed.
Ke
y judgements
The reven
ue reco
gnis
ed o
n cer
ta
in cont
rac
ts i
n the T
e
chnic
al
Pla
st
ics se
gme
nt requ
ired m
anag
eme
nt to use j
udge
men
t to
ap
por
t
ion co
ntrac
t revenu
e to the to
olin
g per
for
mance
obligations.
Ke
y sources of estimation unc
ertainty
Revenue re
cogni
se
d on cer
t
ain co
ntra
ct
s in th
e T
echni
ca
l
Plastics se
gment required management to
estimate the
rema
inin
g cost
s to com
plete t
he too
ling p
er
fo
rma
nce
obl
igati
on in ord
er to dete
rmi
ne the p
ercent
ag
e of comp
letio
n
and r
evenue to re
cogni
se in re
spe
ct of t
hos
e per
form
ance
obligations.
R
ecognition of deferred tax assets
Note 23 co
nta
ins info
rmati
on ab
ou
t the de
ferre
d ta
x a
sse
ts
reco
gnis
ed in th
e cons
oli
dated s
tatem
ent of ﬁn
ancia
l po
siti
on.
Ke
y judgements
Ma
nagem
ent ha
s e
xercise
d jud
gem
ent over th
e level of fu
ture
ta
xa
bl
e proﬁt
s in th
e UK aga
ins
t whi
ch to relieve th
e Grou
p’
s
defer
red t
a
x a
ss
ets
. On thi
s ba
sis ma
nag
eme
nt bel
ieves it i
s
ap
prop
riate to reco
gnis
e defe
rred t
a
x a
s
set
s and at
31March2022 UK defe
rred t
a
x a
s
set
s of £0
.
7 mill
ion have
be
en reco
gnis
ed (31 March 202
1
: £ni
l)
.
Classiﬁcation of ex
ceptional items
Note 9 cont
ai
ns infor
matio
n ab
out i
tems cla
s
siﬁe
d as
exc
ept
ional
.
Ke
y judgements
Ma
nagem
ent ha
s e
xercise
d jud
gem
ent over wh
ethe
r items a
re
except
iona
l a
s set ou
t in th
e Group’s accounti
ng po
lic
y –
se
e note 1 w)
.
Non-current assets held for sale
Ke
y judgements
Note 21 conta
ins i
nform
ation a
bo
ut a
sse
ts cla
ss
iﬁed a
s he
ld for
s
al
e.
Ma
nagem
ent ha
s a
ppli
ed ju
dge
ment in d
eter
minin
g that a s
ale
and l
ea
seb
ack of on
e of the T
e
chnic
al Pl
as
tic
s sites w
as h
ighl
y
prob
ab
ly at 31 March 2022 and a
s su
ch ha
s clas
siﬁe
d the
prop
or
t
ion in re
sp
ec
t to the dis
po
sed u
sef
ul econ
omi
c life a
s
non
-cur
rent a
ss
ets h
eld fo
r sa
le at the b
ala
nce sh
eet date.
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
2. Accounting estimat
es and judgements
continued
Impairment of assets
continued
Ke
y sources of estimation unc
ertainty
The G
roup te
st
s whet
her go
od
will ha
s su
f
fere
d any impa
ir
ment
and co
nsi
der
s whe
ther t
here i
s any ind
icati
on of imp
air
men
t on
an a
nnua
l ba
sis. G
oo
dwil
l at 31 March 20
22 a
moun
ts to
£2
2.
0mill
ion (20
21
: £
21
.
1 millio
n
)
. A
s set ou
t in mo
re det
ail in
note 15, the recovera
bl
e amo
unts m
ay be ba
se
d on ei
ther
val
uein us
e ca
lculati
ons o
r fai
r valu
e les
s cos
ts of d
ispo
sa
l
ca
lculati
ons. Th
e form
er re
quire
s the e
stim
ation o
f fut
ure ca
sh
ﬂows a
nd th
e choice of a d
isco
unt rate in o
rder to c
alcu
late the
pres
ent va
lue of t
he fu
ture c
as
h ﬂows. T
he lat
ter m
etho
d
requ
ires th
e es
timat
ion of f
air va
lue.
Det
ai
ls of the s
ens
itiv
it
y of a
ssu
mptio
ns are i
nclud
ed in n
ote 1
5.
Pension assumptions
Note 24 conta
ins info
rmati
on ab
ou
t mana
gem
ent
’s estim
ate of
the n
et liab
ilit
y fo
r deﬁne
d be
neﬁt o
blig
ation
s and t
heir r
isk
fac
tor
s. Th
e pen
sion li
abi
lit
y at 31 March 2022 amo
unt
s to
£26.0millio
n (20
21
: £37
.3 milli
on)
.
Ke
y sources of estimation unc
ertainty
The va
lue o
f the deﬁ
ned b
eneﬁ
t pe
nsio
n pla
n obli
gatio
n is
deter
min
ed by lo
ng-ter
m act
uar
ial a
ss
umpti
ons. T
hes
e
a
ssum
ption
s inclu
de dis
count r
ates, inﬂ
ation r
ates an
d
mor
ta
lit
y r
ates. Di
f
feren
ces ar
isin
g from a
ct
ual e
xp
eri
ence or
fut
ure chan
ges i
n as
sum
ption
s will b
e reﬂe
cted i
n the G
roup’s
cons
oli
dated s
tatem
ent of com
preh
ens
ive incom
e. The Gro
up
exe
rcises j
udg
eme
nt in dete
rmin
ing th
e as
sumpt
ion
s to be
ado
pted af
ter d
iscu
ssio
n wit
h a qual
iﬁed a
ct
uar
y
. Det
ails o
f the
key actu
ari
al a
ssu
mptio
ns us
ed an
d of the s
ens
itiv
it
y of the
se
a
ssum
ption
s are in
clude
d wit
hin note 24.
The s
chem
e intro
duced a r
ight fo
r mem
ber
s to Pens
ion
Increa
s
e Exch
ang
e (“PIE”) at retirem
ent in th
e year to
31March2022 via a De
ed of A
men
dmen
t and co
mmuni
catio
n
to defer
red m
emb
er
s. Having t
aken a
ctu
ar
ial ad
vice, the
E
xecut
ive mana
gem
ent ha
s exe
rcise
d judg
eme
nt that,
simi
larto th
e Bri
dgin
g Pensi
on Opt
ion ad
opted l
as
t year
,
40%of me
mbe
rs w
ill t
ake the PI
E opti
on at retire
ment.
Thise
sti
mate imp
act
s on t
he pa
st s
er
v
ice credi
t recog
nis
ed
a
san exce
ptio
nal ite
m in the i
ncom
e st
ateme
nt.
Lease break options
Note 5 cont
ai
ns infor
matio
n ab
out l
ea
se brea
k opti
ons.
Ke
y judgements
Management h
as applied judgement
when det
ermining t
he
ex
pe
cte
d cer
t
aint
y that a b
reak o
ptio
n with
in a lea
se w
ill be
exe
rcised. N
ote 5 det
ail
s the a
moun
t by which lea
s
e liab
ilit
ies
woul
d decrea
se i
f the G
roup we
re to exerci
se brea
k opti
ons th
at
at 31 March 2022 manag
eme
nt are rea
s
ona
bly cer
ta
in wil
l not
be e
xercis
ed.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
103
Ca
rclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
3. Segment reporting
The G
roup is o
rgan
ise
d into thre
e, sepa
rate
ly ma
nage
d, busi
nes
s seg
ment
s – T
ech
nica
l Pla
st
ics, Ae
rosp
ace an
d Centr
al.
The
se a
re the s
egme
nts fo
r which s
umma
ris
ed ma
nage
ment i
nform
ation i
s pres
ente
d to the Gro
up’s chief ope
ratin
g deci
sion
maker (compr
isin
g the ma
in Bo
ard a
nd Gro
up E
xecu
tive Comm
it
tee)
.
The T
e
chnic
al Pl
as
tic
s seg
ment su
ppl
ies ﬁn
e tole
ra
nce, injec
tio
n mou
lde
d pla
st
ic comp
on
ents
, which a
re use
d in me
dic
al,
diag
nos
tics, o
ptic
al a
nd el
ec
troni
c prod
uct
s. Thi
s bus
ine
ss op
erate
s inter
natio
nall
y in a fa
st-growi
ng an
d dyna
mic m
arket
underpinned by
rapid technological de
velopment
.
The Aerospace segment supplies systems to the manufacturing and aerospace industries.
The Ce
ntra
l se
gment r
elates to ce
ntra
l cos
ts a
nd non
-trad
ing com
pa
nies.
The LED T
e
chno
log
ies s
egme
nt pre
sente
d as a d
isco
ntinu
ed op
erat
ion wa
s a l
eader i
n the deve
lop
ment of h
igh-
power LED li
ghtin
g
for th
e premi
um auto
motive in
dus
tr
y a
nd wa
s dis
pos
ed of i
n the year to 31 Ma
rch 20
20
. Sin
ce its d
ispo
sa
l, fur
t
her p
rocee
ds have
be
en recei
ved fro
m the ad
minis
tr
ator
s of Wip
ac Limi
ted (this yea
r and p
rio
r)
, which a
re dis
clos
ed a
s proﬁ
t on dis
pos
al o
f
dis
contin
ued o
per
atio
ns be
low – se
e note 4.
T
ra
ns
fer pr
icing b
et
ween b
usi
nes
s seg
ment
s is se
t on an a
rm’s leng
th ba
sis. S
egm
ent
al reven
ues a
nd res
ult
s inclu
de tr
ans
fer
s
bet
we
en bu
sine
ss se
gme
nts. T
hos
e tra
ns
fers a
re eli
minate
d on con
soli
datio
n.
Analysis b
y business segment
The s
egm
ent res
ult
s for th
e year end
ed 31 Ma
rch 20
22 were a
s foll
ows:
T
ec
hn
ica
l
T
ot
al
LE
D
Plastics
Aerospace
Central
(continuing
T
echnologies
Group
(
continuing)
(
continuing)
(
continuing)
operations)
(
discontinued)
total
£000 £000
£000
£000 £
000 £
000
Consolidated
income
statement
T
ot
al
r
evenue
1
23,869
4,707
—
128,576
—
1
2
8,57
6
Less in
ter-segm
ent revenu
e
—
—
—
—
—
—
E
x
tern
al
reven
ue
123,869
4,707
—
1
2
8,57
6
—
1
28
,57
6
Expenses
(
1
15,47
6)
(4,030)
(2,
97
4
)
(1
2
2,
480)
—
(122,
480)
Underlying operat
ing pro
ﬁt/
(loss
)
8,393
677
(2,
97
4)
6,096
—
6,096
CO
VID
-
related U
S govern
ment g
ran
t incom
e
2
,087
—
—
2,087
—
2,087
Operating pro
ﬁt/
(loss) bef
ore ex
ceptional items
10,48
0
6
77
(2,97
4)
8,
183
—
8,
183
E
xceptio
nal o
per
atin
g items
—
—
72
1
721
—
721
Operating pro
ﬁt/
(loss)
1
0,48
0
677
(2,
253)
8,904
—
8,
904
Net
ﬁna
nce
e
xp
ens
e
(
2
,9
8
9
)
—
(
2
,9
8
9)
Inco
me
t
a
x
ex
pe
nse
(8
0
9)
—
(8
09)
Pro
ﬁt fr
om op
era
ti
ng ac
ti
vit
ie
s af
te
r ta
x
5,
106
—
5,
106
Proﬁt o
n disp
os
al of di
scont
inue
d ope
rati
ons,
net of t
a
x – s
ee note 4
—
69
3
693
Pro
ﬁt fo
r th
e pe
rio
d
5,
106
693
5,799
Consolidated statement
of ﬁn
ancial position
Se
gment
a
ss
ets
1
21
,
11
9
6,41
8
661
1
28
,
198
—
128,
198
Segment
lia
bilities
(40
,6
86)
(998)
(6
2
,0
98)
(103,782)
—
(103
,782)
Net asset
s
8
0,433
5,420
(
6
1,437)
2
4,41
6
—
24,
41
6
Oth
er segment
al inform
ation
Ca
pit
al e
xp
endi
ture o
n prop
er
t
y
, p
lant
and
eq
uipm
ent
9,529
36
143
9
,7
08
—
9
,7
08
Ca
pit
al e
xp
endi
ture o
n compu
ter so
f
t
ware
6
2
—
73
135
—
135
De
pre
ciatio
n
6,533
23
4
58
6,825
—
6,825
Amo
r
tis
atio
n of comp
uter s
of
t
ware
16
—
120
136
—
136
Amor
tisation of other intangibles
6
7
—
—
6
7
—
67
104
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
3. Segment reporting
continued
Analysis b
y business segment
continued
The s
egm
ent res
ult
s for th
e year end
ed 31 Ma
rch 20
2
1 were a
s foll
ows:
T
e
chn
ic
al
Tota
l
LED
Pla
stics
Aerospace
Central
(
continuing
T
echnologies
Group
(con
tinuing)
(
continuing
) (
continuing
)
oper
ations
)
(discontinued)
total
£000
£
000 £
000
£000
£
000 £
000
Consolidated
income
statement
T
ota
l revenue
10
2,4
73
5,091
—
10
7
,56
4
—
1
0
7
,564
Less in
ter-segm
ent revenu
e
—
—
—
—
—
—
T
ota
l ex
te
rna
l revenue
102
,4
73
5,091
—
10
7
,56
4
—
1
0
7
,564
E
xp
ens
es
(93,256
)
(4,54
1)
(4,
92
7)
(
10
2,
724
)
—
(
10
2,
724
)
Und
erl
ying o
per
atin
g proﬁt
/
(lo
ss)
9
,2
1
7
550
(4,
92
7)
4,840
—
4,840
E
xceptio
nal o
per
atin
g items
—
—
4,490
4,4
90
(5
2
)
4,438
Operating pro
ﬁt/
(loss)
9
,2
1
7
550
(
437)
9
,33
0
(5
2
)
9
,2
78
Net
ﬁna
nce
e
xp
ens
e
(2,65
9)
—
(2,659
)
Inco
me
t
a
x
ex
pe
nse
(4
57)
—
(457)
Pro
ﬁt/(los
s) from o
pe
rat
ing a
ct
ivi
ti
es a
ft
er t
a
x
6,21
4
(52
)
6,
16
2
Proﬁt o
n disp
os
al of di
scont
inue
d ope
rati
ons, n
et of ta
x
—
1
,250
1,250
Pro
ﬁt fo
r th
e pe
rio
d
6,2
1
4
1,
1
98
7
,4
12
Consolidated statement
of ﬁn
ancial position
Se
gment a
s
set
s
109
,21
7
6,0
73
730
1
1
6,0
20
—
1
16,0
20
Se
gment l
iab
iliti
es
(33,
951
)
(832
)
(73,326
)
(108,
1
09)
—
(
1
08,
109)
Net asset
s
75,2
66
5,24
1
(72,59
6
)
7
,
91
1
—
7
,
91
1
Oth
er segment
al inform
ation
Ca
pit
al e
xp
endi
ture o
n prop
er
t
y
, p
lant a
nd e
quip
ment
1
0,
1
28
208
38
10,37
4
—
10,37
4
Ca
pit
al e
xp
endi
ture o
n compu
ter so
f
t
ware
3
—
1
36
1
39
—
1
39
De
preciat
ion
5,49
2
250
32
5,77
4
—
5,77
4
Imp
air
ment of p
rop
er
t
y
, p
lant a
nd eq
uipm
ent
—
(
1
3)
—
(1
3)
—
(
1
3)
Amo
r
tis
atio
n of comp
uter s
of
t
ware
57
—
96
1
53
—
153
Amo
r
tis
atio
n of othe
r inta
ngi
ble
s
5
3
—
—
53
—
53
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
105
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
Analysis b
y geogr
aphical segment
The b
usin
ess o
pe
rates in t
hree m
ain g
eog
ra
phic
al re
gion
s – the Un
ited K
ing
dom, N
or
th A
mer
ica a
nd in l
ower-cos
t regi
ons
inclu
ding t
he Cze
ch Repub
lic, Chi
na and I
ndia
, and t
he ge
ogr
ap
hica
l ana
lys
is wa
s a
s follow
s:
Ex
penditure on tangible
ﬁx
ed a
ss
et
s an
d
E
x
ter
nal r
even
ue
Ne
t se
gme
nt a
ss
et
s
co
mpu
ter s
of
t
wa
re
202
2
2021
2
022
202
1
2022
2021
£000
£
000
£
000
£
000
£000
£
000
United
Kingdom
12
,
63
2
1
2
,
413
(2
9,
3
6
7
)
(4
1
,577)
1,65
1
6,0
0
6
Nor
th
America
65,
296
50,81
4
2
7,
2
6
7
25,
1
73
6
,9
1
8
3
,7
20
Res
t of worl
d
50,6
48
4
4,
3
37
2
6,
5
16
24
,
315
1
,
2
74
787
12
8
,
5
76
1
0
7,
5
6
4
2
4
,
416
7,
9
1
1
9,
8
4
3
1
0
,
5
13
The a
nal
ysis of s
egm
ent revenu
e repre
se
nts revenu
e from e
x
ter
nal cus
tom
er
s ba
se
d upo
n the lo
cati
on of th
e custo
mer
.
The a
nal
ysis of s
egm
ent a
ss
ets a
nd ca
pit
al e
x
pen
ditu
re is ba
se
d upo
n the l
ocat
ion of th
e a
sset
s.
The mate
ria
l comp
one
nts of t
he Cent
ral s
egm
ent a
ss
ets a
nd lia
bil
itie
s are ret
ireme
nt be
neﬁt o
blig
ation n
et lia
bili
ties of
£25.9
79 millio
n (20
2
1
: net lia
bili
ties of £
37
.2
75 millio
n
), and net b
orrow
ing
s of £36.
134 milli
on (20
21
: £3
4.0
1
7 m
illio
n
)
.
On
e T
echni
ca
l Pla
sti
cs cus
tome
r accounte
d for 37
.8% (
20
21
: 2
4.5%
) a
nd a
nothe
r custo
mer fo
r 10
.4
% of Group reve
nues f
rom
continuing operations and similar propor
tions of trade receivables.
No oth
er cus
tome
r accounte
d for mo
re than 10.0
% of revenu
es fro
m contin
uing o
per
atio
ns in th
e year
.
Defe
rred t
a
x a
s
set
s by geo
gra
phi
cal l
ocat
ion a
re as fo
llow
s: Unite
d Kin
gdo
m £
0.
952 millio
n (20
2
1
: £nil), Nor
th A
me
ric
a
£0
.288milli
on (20
21
: £0
.277 milli
on)
, rest o
f worl
d £0
.
1
63 mill
ion (20
21
: £0.
1
0
7 mill
ion)
.
T
ota
l non
-cur
rent a
ss
ets by g
eog
ra
phic
al lo
cati
on ar
e as fo
llows: Un
ited K
ing
dom £
24
.
15
9 millio
n (20
2
1
: £23.096 millio
n
),
Nor
th A
mer
ica £
28.
1
4
2 milli
on (20
21
: £
2
4.2
1
2 mill
ion)
, res
t of wor
ld £1
8.895 millio
n (20
2
1
: £1
8.
254 mi
llio
n
)
.
4. Discontinued operation
Whi
lst t
here wer
e no new di
scont
inue
d ope
rati
ons in t
he year e
nde
d 31 March 20
22 o
r in the p
rio
r year com
par
ative, on 5 May 20
21
and 6 A
ugus
t 20
21
, p
roce
eds of £0.2 millio
n an
d £
0.3 mill
ion re
spe
ct
ively wer
e receive
d from t
he adm
inis
trato
rs of W
ipa
c Ltd which
wa
s par
t of th
e LED T
echno
lo
gies s
egm
ent that w
as cl
as
siﬁe
d a
s disco
ntinu
ed in th
e year to 31 March 2020 (
31 March 20
21
:
£1
.3mill
ion)
. T
he pro
cee
ds were re
ceived by th
e Grou
p’
s len
ding b
ank
, HSB
C, an
d use
d to prep
ay the Gro
up’
s ter
m loa
n.
On 28 Jul
y 20
2
1
, an ad
dit
iona
l £0
.2 milli
on wa
s re
ceived fr
om the W
ipa
c Ltd admini
str
ator
s in payme
nt of a ﬁr
st a
nd ﬁna
l div
iden
d
for th
e Group’s unse
cured cre
dito
r claim a
gain
st th
e comp
any
. In a
ccorda
nce wit
h the fa
cilit
y ag
reem
ent, th
e ﬁr
st £0.
1 millio
n wa
s
reta
ine
d by the G
roup wi
th the b
ala
nce of £0.
1 millio
n use
d to pre
pay the Gro
up’s term loa
n.
No ne
t as
set wa
s re
cogni
se
d in the re
sult
s for th
e year to 31 March 202
1 for pote
ntia
l pos
t ba
lan
ce she
et proce
ed
s or div
iden
ds,
and, a
s su
ch, the fu
ll £0
.
7 mill
ion ha
s b
een re
cogni
se
d as e
xceptio
nal p
roﬁt o
n disp
os
al of di
scont
inue
d ope
rati
ons in t
he curre
nt
y
e
a
r.
Ma
nagem
ent do
es n
ot ex
pec
t to rece
ive any fur
the
r pro
ceed
s from t
he admi
nis
trato
rs of W
ipa
c Ltd nor othe
r proce
eds f
rom th
e
disposa
l of the L
ED T
echnologies segment.
106
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
5. Leases
The G
roup’s leas
es a
re pri
ncipa
lly fo
r ware
hous
e an
d manu
fac
tur
ing f
acili
ties w
ith a sm
all nu
mbe
r of vehicl
es an
d othe
r pla
nt
andm
achin
er
y
.
Infor
matio
n ab
out l
eas
es for w
hich th
e Grou
p is a le
sse
e is pre
sente
d be
low
.
Amounts recognised in the statement of ﬁnancial position
i) Right-of-use assets
All r
ight-of-use a
s
set
s are in
clude
d in pro
per
t
y
, pl
ant a
nd equ
ipm
ent (see note 16
).
La
nd
an
d
Pl
an
t
a
nd
b
uildings
equipment
T
otal
£000
£
000
£
000
Ba
la
nc
e at 1 Ap
ril 2
020
4,839
280
5,
1
19
De
preciat
ion
ch
arge
for
the
year
(1
,322)
(260
)
(1
,582
)
Add
itio
ns to ri
ght
-of-us
e a
sse
ts
2,
950
81
9
3,7
69
De
recog
niti
on of ri
ght
-o
f
-us
e a
sse
ts
(1
48)
—
(1
48)
Ef
fec
t of moveme
nts in fo
reign e
xchan
ge
(1
6
7)
(3)
(1
70)
Bal
ance at 31 Ma
rch 20
21
6,
152
83
6
6,
988
De
preciat
ion
ch
arge
for
the
year
(1
,877)
(405) (2,
282
)
Additions
to
right-of
-
use
as
sets
2
,25
5
4,
563
6,818
Ef
fec
t of moveme
nts in fo
reign e
xchan
ge
1
57
32
189
Ba
la
nc
e at 31 Ma
rc
h 2022
6,
687
5,026
11
,713
Add
itio
ns to ri
ght
-of-us
e a
sse
ts dur
ing t
he t
welve m
onths e
nde
d 31 March 2022 inclu
de £1
.4
10 millio
n in res
pec
t of s
ale a
nd
leaseback plan
t and equipmen
t.
ii) Lease liabilities
Leas
e liab
ilit
ies have be
en pr
ese
nted a
s loa
ns a
nd bo
rrowi
ngs (see n
ote 22)
.
Amounts recognised in the income statement
202
2
2021
£000
£
000
Intere
st
on
l
ea
se
l
iabi
liti
es
527
210
E
xp
ens
es
re
latin
g
to
s
hor
t-term
l
eas
es
13
42
De
preciat
ion a
nd imp
air
ment e
x
pen
se on l
eas
es
2
,2
82
1,
5
8
2
Amounts recognised in consolidated stat
ement of cash ﬂow
s
202
2
2021
£000
£
000
T
ota
l
c
as
h
ou
tﬂ
ow
for
lea
se
s
(
3
,7
3
6)
(1,
8
5
3
)
Break options
So
me pro
per
t
y l
ea
ses co
nta
in brea
k opti
ons e
xercis
abl
e by the G
roup, t
ypic
all
y at the ﬁve
-year ann
iver
sa
r
y of the l
eas
e ince
ption.
Whe
re pr
act
ica
ble, th
e Group s
ee
ks to in
clud
e break o
ptio
ns in new l
ea
ses to p
rovide o
per
atio
nal ﬂ
ex
ibili
t
y
. The G
roup a
s
ses
ses at
lea
se co
mmen
ceme
nt date whe
ther i
t is rea
so
nab
ly cer
t
ain to e
xercis
e the b
reak o
ption
s. The G
roup rea
ss
es
ses w
heth
er it is
rea
sona
bl
y cer
ta
in to e
xercise t
he opt
ions i
f the
re is a sig
niﬁc
ant event o
r signi
ﬁca
nt chan
ges in ci
rcums
ta
nces wi
thin i
ts con
trol.
The G
roup ha
s e
stim
ated that t
he pote
ntial f
utu
re lea
se paym
ent
s, sho
uld it e
xercis
e the b
reak o
ption
s, woul
d resul
t in a de
creas
e
in lea
se l
iab
iliti
es of £1
.3 mi
llio
n (2
02
1
: £
2.8 milli
on)
.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
107
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
6. R
ev
enue from contr
acts with customers
a) Nature of goods and services
The fo
llowi
ng is a de
scr
iptio
n of the p
rinci
pal a
cti
viti
es – se
par
ated by rep
or
t
ab
le se
gme
nts – f
rom wh
ich the G
roup g
ener
ates it
s
revenue
s. For mo
re det
ail
ed info
rmati
on ab
ou
t repo
r
ta
bl
e seg
ment
s, se
e note 3.
i)
T
echnical Plastics segment:
The T
e
chnic
al Pl
as
tic
s seg
ment su
ppl
ies ﬁn
e tole
ra
nce, injec
tio
n mou
lde
d pla
st
ic comp
on
ents
, which a
re use
d in me
dic
al,
diag
nos
tics, o
ptic
al a
nd el
ec
troni
cs pro
duc
ts. T
echnic
al Pla
s
tics r
evenues co
mpr
ise t
wo t
yp
ica
l proj
ec
t ty
pes: ma
nuf
act
uri
ng an
d
tooling.
Manufacturing
The ma
jor
it
y of T
e
chnic
al Pla
s
tics’ b
usin
ess i
s in ma
nufa
ctu
rin
g inje
cti
on mo
ulde
d pro
duc
t.
Contro
l of ma
nufa
ctu
red ﬁni
she
d goo
ds tr
an
sfer
s to cus
tome
rs o
n del
iver
y
. T
herefo
re revenue i
s recog
nise
d at a poi
nt in tim
e,
on de
liver
y of i
ndiv
idua
l ma
nufa
ctu
red pro
duc
t
s to custo
mer
s.
T
ooling
The T
e
chnic
al Pl
as
tic
s busi
nes
s als
o de
sign
s, buil
ds an
d val
idates i
njec
ti
on mou
ldin
g too
ls for cus
tom
er
s. Dep
end
ing on t
he
contr
ac
t, each of the
se th
ree el
eme
nts of t
he too
ling p
roce
ss may be d
eem
ed a di
sti
nct p
er
fo
rma
nce ob
ligati
on un
der IFR
S 1
5,
or a sin
gle p
er
for
ma
nce ob
ligati
on, a
s contr
act
s wi
th custo
mer
s may in
clude o
ne or m
ore el
eme
nts of t
he too
ling p
roce
ss.
The ma
jor
it
y of to
olin
g per
form
ance o
bli
gatio
ns are s
atis
ﬁed over ti
me, eith
er on i
nput m
etho
ds (p
as
sa
ge of tim
e or cos
ts to
comp
lete) or outp
ut met
hod
s (
mil
esto
ne
s achieved). Thes
e met
hod
s reco
gnis
e revenue o
n a ba
sis that i
s repre
sent
ative of t
he
enhancement of the t
ool and therefore satisfaction of the per
formance obligation.
Some T
echnical Plas
tics contracts include both tooling and manufacturing per
forma
nce obligations.
ii) Aerospac
e segment:
The Aerospace segment manufactures components for the aerospace industries.
Contro
l of ma
nufa
ctu
red ﬁni
she
d goo
ds tr
an
sfer
s to cus
tome
rs o
n del
iver
y
. T
herefo
re revenue i
s recog
nise
d at a poi
nt in tim
e,
on de
liver
y of i
ndiv
idua
l ma
nufa
ctu
red pro
duc
t
s to custo
mer
s.
b
) Disaggregation of re
venue
Continuing operations
T
echnical
Te
c
h
n
i
c
a
l
G
roup
Group
Plasti
cs
Pla
sti
cs
Aero
space
Aer
osp
ace
tot
al
tota
l
202
2
2021
2022
2
021
2022
202
1
£000
£
000
£
000
£
000
£000
£
000
Major products/
service lines
Manufacturing
98
,73
4
8
8,21
0
4,
707
5,091
1
03,4
41
93
,
3
01
T
ooling
25,
1
35
14
,
26
3
—
—
25,
135
14,
2
6
3
12
3
,
8
69
102
,
47
3
4
,707
5,091
1
2
8
,
5
76
1
0
7,
5
6
4
Timing of re
venue recognition
Prod
uct
s tr
ans
fer
red at a po
int in ti
me
98,872
88,210
4,70
7
5,091
103,579
93
,
3
01
Prod
uct
s an
d ser
vice
s tra
nsfe
rre
d over time
2
4
,9
9
7
14
,
2
6
3
—
—
2
4
,9
9
7
14
,
26
3
12
3
,
8
69
10
2,
47
3
4,70
7
5,0
91
1
2
8
,
5
76
1
0
7,
5
6
4
Refer to note 3 for i
nform
ation o
n relia
nce on m
ajo
r custo
mer
s.
c) Contract balances
The fo
llowi
ng ta
bl
e provid
es info
rmati
on ab
out t
rad
e recei
vab
les, co
ntra
ct a
ss
ets a
nd cont
rac
t lia
bili
ties f
rom con
trac
t
s with
customers.
202
2
2021
£000
£
000
T
ra
de
re
ceiva
ble
s
(see
n
ote
19
)
14
,79
2
15,
49
6
Contr
ac
t
a
ss
ets
(
se
e
note
18)
7,
7
0
0
2,89
8
Contract
liabilitie
s
(6,854)
(6,
3
27
)
15,
63
8
12
,
0
67
Contr
ac
t as
set
s have increa
se
d at 31 March 20
22 d
ue to a sign
iﬁca
nt me
dic
al too
lin
g proje
ct w
hich is o
ngoi
ng at the p
er
iod e
nd.
108
Ca
rclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
6. R
ev
enue from contr
acts with customers
continued
c) Contract balances
c
ontinued
The co
ntrac
t a
ss
ets p
rima
ri
ly relate to th
e Gro
up’
s rig
hts to con
sid
erati
on for wo
rk com
plete
d but n
ot bill
ed at th
e repo
r
tin
g date
on it
s too
ling co
ntra
ct
s in T
e
chnic
al Pla
s
tics.
The co
ntrac
t lia
bil
itie
s relate to th
e adva
nce con
side
rati
on recei
ved fro
m custo
mer
s b
efore th
e related reve
nue ha
s be
en
recognised; this
applies to tooling contracts in T
echnical Plastics.
The fo
llowi
ng ta
bl
e provid
es info
rmati
on ab
out r
evenue re
cogni
sed i
n the cur
rent pe
rio
d that wa
s in
clud
ed in th
e contr
act l
iab
ilit
y
ba
lance at t
he be
ginn
ing of th
e per
io
d:
202
2
2021
£000
£
000
Re
ven
ue
recognised
6
,1
3
8
1,
6
07
d)
T
ransaction price allocat
ed to remaining performance obligations
The fo
llowi
ng ta
bl
e inclu
des reven
ue ex
pe
cte
d to be re
cogni
sed i
n the f
uture re
lated to p
er
for
man
ce obl
igatio
ns that a
re (pa
r
tia
lly)
unsatisﬁed at the reportin
g dat
e.
The G
roup is m
ak
ing us
e of th
e prac
ti
cal e
xp
edi
ent not to in
clud
e revenue o
n contr
act
s wit
h an or
igi
nal e
xp
ec
ted dur
atio
n of one
year or l
ess.
R
ev
enue expected to be recognised
202
3
2024
2
025
2026
£000
£000
£
000 £
000
T
oo
ling – T
echnic
al Pl
as
tic
s
9
,47
3
1
,
93
7
1,57
1
93
7
. Operating proﬁt
Op
erat
ing pro
ﬁt fro
m continu
ing o
per
ation
s is ar
rive
d at as fo
llow
s:
202
2
2021
£000
£
000
Reve
nu
e
1
2
8
,
5
76
1
0
7,
5
6
4
(Increa
se)/
de
creas
e in s
tock
s of ﬁnis
hed g
ood
s an
d work i
n prog
ress
(92
4)
2
,0
06
Raw
mate
ria
ls
a
nd
co
nsum
abl
es
5
9,
6
2
9
46,
9
46
Pers
onn
el
e
xp
ens
es
(
se
e
note
8)
3
4
,9
7
1
3
1,
5
5
4
Imp
air
ment l
oss o
n tra
de an
d other r
eceiv
abl
es, in
cludi
ng contr
ac
t as
set
s
2
14
Amo
r
tis
atio
n
of
inta
ngi
ble
a
sse
ts
203
206
De
preciat
ion of p
rope
r
t
y
, pl
ant a
nd equ
ipm
ent
6,825
5,
77
4
Auditor’
s remuner
ation:
Fees p
ayabl
e to the Com
pa
ny’
s aud
itor for t
he au
dit of th
e Comp
any’s annu
al accou
nts
163
17
1
Fees p
ayabl
e to the Com
pa
ny’
s aud
itor a
nd it
s a
sso
ciates for ot
her s
er
vi
ces:
The audit of the C
ompany’s
subsidiaries, pur
suant to
legislation
87
124
Audi
t
-relate
d
a
ss
ura
nce
s
er
vice
s
35
32
T
ota
l
au
dito
r’s
remun
er
ation
285
327
Exceptional
items:
Ratio
nali
sati
on
co
st
s
(see
n
ote
9)
13
3
1
,9
6
8
Pa
st s
er
vice cre
dit in r
esp
ec
t of retire
ment b
eneﬁ
ts (see note 24
)
(8
5
4)
(6,458)
T
ota
l
e
xceptio
nal
item
s
(
7
2
1)
(4
,
49
0
)
CO
VID
-
related
US
govern
ment
gr
ant
i
ncom
e
(2,0
87
)
—
Foreig
n
exch
ang
e
lo
sse
s
2
17
74
5
Pension
s
cheme
administration
cost
s
1,
000
1
,11
7
Ot
her
op
erati
ng
cha
rge
s
20,
272
14
,
03
5
11
9,
6
7
2
98,23
4
Operating pro
ﬁt
8
,9
0
4
9,
3
3
0
E
xceptio
nal r
atio
nali
satio
n cos
ts in
clude £0.21
1 milli
on (20
21
: £0
.447 millio
n
) of pen
sion s
chem
e admi
nis
trati
on cos
ts.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
109
Ca
rclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
8. P
ersonnel expenses
202
2
2021
£000
£
000
Wages
a
nd
sa
lar
ies
2
9,9
41
2
6
,9
5
1
So
cial
secu
rit
y
contr
ibu
tion
s
3
,7
12
3,5
63
Charg
e in res
pec
t of de
ﬁned co
ntri
buti
on a
nd othe
r pen
sion p
lan
s
1
,2
47
1,0
3
9
Sha
re-
ba
sed
payme
nts
(see
note
27)
71
1
3
4
,9
7
1
3
1,
5
5
4
E
xceptio
nal cre
dit re
gard
ing pa
s
t ser
vice co
st
s (
see n
otes 9
, 24
)
(8
5
4)
(6,45
8)
3
4
,11
7
2
5
,096
Dire
cto
rs’ rem
une
ratio
n and e
mol
ume
nts, wh
ich are i
nclud
ed in th
is ana
lys
is, are d
es
crib
ed in th
e Dire
cto
rs’ re
mune
ratio
n rep
or
t
on pa
ges 57 to 75.
No opt
ion
s veste
d und
er the P
SP s
cheme d
uri
ng the yea
r or dur
ing t
he comp
ar
ative pe
rio
d, there
fore the
re were no g
ain
s made
by the D
irec
tor
s to dis
clos
e.
The aver
age mo
nthl
y numb
er of pe
rs
ons e
mpl
oyed by the Gro
up dur
ing th
e year wa
s a
s foll
ows:
202
2
202
1
Nu
mb
er o
f
Number of
employ
ees
employ
ees
By segm
ent
Centr
al
18
20
T
echn
ica
l
Pla
s
tics
9
93
9
67
Aero
spa
ce
51
61
1,0
62
1,0
4
8
By geogr
aphic location
United
Kingdom
332
306
Nor
th
America
384
3
78
Res
t
of
wo
rld
346
36
4
1,0
62
1,0
4
8
9
. Exc
eptional items
202
2
2021
£000
£
000
Continuing
operations
Rationalisation
costs
(13
3)
(
1,9
6
8
)
Gai
n in res
pec
t of ret
ireme
nt be
neﬁt
s – se
e note 2
4
85
4
6,45
8
721
4,
490
Discontinued oper
ations
Rationalisation
costs
—
(5
2)
Proﬁt o
n disp
os
al of di
scont
inue
d ope
rati
ons – s
ee note 4
693
1,250
693
1
,1
9
8
1,
41
4
5,6
88
110
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
9
. Exc
eptional items
continued
The reven
ue an
d cos
t impa
ct
s of the COVID
-
1
9 pand
emi
c are so p
er
va
si
ve and d
if
ﬁcult to i
dent
if
y that th
ey can
not be rea
dily
sep
ar
ated an
d qua
ntiﬁe
d from t
he on
goin
g tra
ding of t
he Gro
up. As a re
sult, co
nsis
tent wi
th th
e resul
ts re
por
ted in t
he ﬁna
ncial
st
ateme
nts fo
r the year e
nde
d 31 March 202
1
, neith
er COVID
-
19-relate
d cost
s no
r credit
s ar
isin
g fro
m governm
ent a
ss
ist
an
ce have
be
en pre
sente
d a
s except
iona
l item
s in the co
nso
lidate
d incom
e st
ateme
nt for th
e year en
ding 31 Ma
rch 20
22.
Ratio
nali
sati
on cos
ts f
rom cont
inuin
g ope
rati
ons du
rin
g the p
eri
od rel
ate to the res
tr
uc
turi
ng an
d reﬁna
ncing of t
he Gro
up.
The
se in
clude £0.
1 milli
on credi
t in res
pe
ct to le
gal a
nd p
rofess
iona
l accru
als re
lea
se
d (20
21
: £1
.
3 mill
ion cos
ts), £
0.
1 millio
n for
consu
lt
ant
s’ fees (20
21
: £0
.
1 mil
lion) and £0.2 millio
n except
iona
l pen
sio
n sche
me adm
inis
trat
ion cos
ts (202
1
: £0.5 milli
on
).
The ga
in in re
spe
ct to r
etirem
ent b
eneﬁ
ts is a p
as
t se
r
vice cre
dit for t
he imp
act o
f intro
ducin
g a Pensio
n Increa
se E
xch
ang
e optio
n
to mem
ber
s (20
21
: pa
s
t ser
v
ice credi
t in res
pec
t to th
e introd
uc
tion o
f a bri
dgin
g pen
sion o
ptio
n, par
t
ly of
f
set by a pa
s
t ser
v
ice
cos
t relatin
g to GM
P equa
lis
atio
n
)
. See n
ote 2
4 for mo
re infor
matio
n.
The p
roﬁt on d
isp
osa
l of dis
conti
nued o
pe
ratio
ns of £0.
7 m
illio
n (20
21
: £1
.
3 mill
ion) is proce
eds re
ceived i
n the cur
rent year f
rom
the ad
mini
str
ator
s of Wip
ac Lim
ited. S
ee note 4.
10
. Gov
ernment support for CO
VID-
19
Dur
ing t
he pe
rio
d and t
he com
par
ative pe
rio
d the G
roup ha
s u
tilis
ed g
overnm
enta
l sup
por
t in so
me of it
s op
erat
ing l
ocat
ions to
miti
gate the i
mpac
t of COVID
-
19
. Sup
por
t h
as b
ee
n in the fo
rm of gr
ant
s, loa
ns a
nd defe
rr
al of t
a
x paym
ent
s.
The gov
ernment
al suppor
t utilised during the period wa
s:
202
2
2021
£000
£
000
Gr
ant
s – use
d to of
fs
et la
bou
r and v
ari
abl
e cos
ts, in
clude
d wit
hin op
er
ating e
xp
ens
es
2
,1
5
7
74
7
Loan
s – pres
ented i
n loa
ns an
d bo
rrowin
gs
—
2
,1
0
4
Payment d
efer
ral
s – pres
ente
d in tra
de an
d othe
r payab
les
—
68
In Ap
ril 2020
, the Gro
up rece
ived a lo
an un
der t
he Payback Prote
ct
ion Pro
gra
m, und
er
wr
it
ten by th
e US gover
nme
nt in sup
por
t o
f
CO
VID
-
1
9 for $2.
9 milli
on, pre
sente
d a
s loa
ns an
d bo
rrowin
gs in t
he pr
ior year co
mpa
rati
ves. On 5 M
ay 20
21, notice of forgive
nes
s
of the l
oan w
as r
eceive
d from th
e Sma
ll Bu
sine
ss Ad
minis
tr
ation, re
sult
ing in i
ts conver
si
on fro
m a loa
n to a gra
nt an
d there
fore it
s
relea
s
e to the con
so
lidate
d incom
e st
ateme
nt. In th
e year end
ed 31 Ma
rch 20
22, the fu
ll am
ount ha
s be
en re
cogni
sed w
ithi
n
ope
rati
ng proﬁ
t in the i
ncom
e st
ateme
nt as a cre
dit to of
f
se
t lab
our a
nd va
ria
ble COVID
-
1
9-
relate
d cost
s incu
rred to d
ate.
The cre
dit of £
2.
1 mill
ion, reco
gnis
ed in r
esp
ec
t to this COVID
-
1
9-
relate
d govern
ment gr
ant, h
as b
een p
res
ented s
epa
rate
ly on
the f
ace of the co
nso
lidate
d inco
me st
atem
ent for th
e year en
ded 31 Ma
rch 20
22 for cla
ri
ty d
ue to it
s val
ue an
d nature.
11. Finance re
venue and e
xpense
202
2
2021
£000
£
000
Fina
nce reve
nue co
mpr
ise
s:
Intere
st re
ceiva
ble o
n ca
sh at b
ank
77
42
Finance rev
enue
77
42
Fina
nce ex
pe
nse co
mpr
ise
s:
Ban
k
lo
ans
an
d
overdr
af
ts
(1
,7
94)
(1,
5
59
)
Leas
e
interes
t
(527
)
(2
10)
Ot
her
(18)
(9
0)
Net in
teres
t on th
e net deﬁ
ned b
ene
ﬁt lia
bili
ty
(7
27
)
(8
42)
Finance expense
(3
,
0
6
6)
(
2,7
01)
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
111
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
12. Income tax expense
The e
xp
ens
e reco
gnis
ed in th
e cons
oli
dated in
come s
tate
ment co
mpr
ise
s:
202
2
2021
£000
£
000
United Kingdom
corporation
tax
Cor
por
ation t
a
x o
n los
se
s for the cu
rrent yea
r
—
30
8
Adju
stm
ent
s
for
pr
ior
yea
rs
(14)
—
Ov
erseas
taxation
Curre
nt
t
a
x
(1
,
2
6
6)
(5
6
4)
Adju
stm
ent
s
for
pr
ior
yea
rs
(19
0)
(37
)
T
ot
a
l cur
ren
t ta
x n
et ex
pe
ns
e
(1,
470)
(
293)
Deferred tax expense
Or
iginat
ion a
nd rever
sa
l of temp
or
ar
y di
f
feren
ces:
Defe
rred
ta
x
62
9
(8
0)
Adju
stm
ent
s
for
pr
ior
yea
rs
32
(8
4)
T
ot
a
l def
err
ed t
a
x cr
ed
it/(
cha
rg
e) – see n
ote 23
6
61
(16
4
)
T
otal inc
ome tax expense
recognised
in the
consolidated
income
statement
(8
0
9)
(45
7
)
R
econciliation of tax expense for the y
ear
The t
a
x a
ss
es
sed fo
r the year i
s lower (20
21
: lowe
r) than th
e st
and
ard rate o
f corp
orat
ion t
a
x in t
he UK
. The di
f
feren
ces a
re
ex
pla
ine
d as fo
llow
s:
2022
2
021
£000
%
£
000
%
Proﬁt
befo
re
t
a
x
6,60
8
7,
8
6
9
Inco
me ta
x us
ing s
ta
nda
rd rate of U
K corp
or
ation t
a
x of 19% (20
21
: 1
9%
)
1,2
5
6
1
9.
0
1,
495
1
9
.0
Ot
her i
tems not d
edu
cti
ble fo
r ta
x pur
po
ses
2
67
4.0
99
1
.3
R&D
t
a
x
reli
ef
(2
2)
(0.
3)
(26) (0.
3)
Inco
me
n
ot
ta
xa
bl
e
(
603)
(9.
1)
(4
5
6)
(
5
.
8
)
Adju
stm
ent
s in res
pec
t of over
sea
s t
a
x rate
s
273
4
.1
62
0.8
Recog
niti
on of defe
rre
d ta
x a
sset p
revio
usly u
nreco
gnis
ed
(65
7
)
(9.9
)
—
—
Relea
s
e
of
t
a
x
provi
sion
s
—
—
(30
8)
(3
.
9)
Other
temporar
y
dif
ferenc
es
(412)
(6
.
2)
(650)
(8.
3)
Adju
stm
ent to cur
rent t
a
x in re
spe
ct of p
rio
r per
io
ds (UK a
nd over
sea
s)
204
3
.1
37
0.5
Adju
stm
ent
s to defer
red t
a
x in re
sp
ec
t of pri
or pe
rio
ds (U
K and over
sea
s)
(32)
(0
.
5)
84
1.
1
Foreig
n ta
xes e
xp
ens
ed in th
e UK
535
8
.1
12
0
1
.5
T
ot
a
l inc
ome t
a
x ex
pe
ns
e
809
12
.
2
457
5.8
T
ax on items charged outside of the consolidated income statement
202
2
2021
£000
£
000
Recog
nise
d in oth
er comp
rehe
nsive in
come:
Foreig
n
exch
ang
e
movem
ent
s
12
7
(13
7
)
T
ota
l inco
me t
a
x cha
rged/(
cre
dite
d) to othe
r compr
ehen
sive in
come
127
(
13
7
)
112
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
13. Earnings per share
The c
alcul
ation of b
a
sic ea
rnin
gs pe
r sha
re is ba
se
d on th
e proﬁt at
t
rib
uta
bl
e to equi
t
y hol
der
s of th
e pare
nt comp
any div
ide
d by
the wei
ghted aver
age nu
mbe
r of ordin
ar
y sh
ares o
ut
st
and
ing du
rin
g the year
.
The c
alcul
ation of d
ilute
d ear
ning
s pe
r share i
s ba
se
d on the p
roﬁt at
tr
ibu
ta
ble to e
quit
y h
old
er
s of the p
aren
t compa
ny divi
ded by
the weighted
average number of
ordinar
y shares outsta
nding during the ye
ar (
adjusted for dilutiv
e options
)
.
The fo
llowi
ng det
ail
s the re
sult a
nd aver
age num
ber o
f share
s us
ed in c
alcul
ating th
e ba
sic a
nd di
luted e
arn
ings p
er sh
are:
202
2
2021
£000
£
000
Proﬁt af
ter t
a
x bu
t befor
e proﬁt o
n disco
ntinu
ed op
er
ation
s
5,
1
06
6,
214
Proﬁt
at
tri
but
ab
le
to
non
-con
troll
ing
i
nteres
ts
—
—
Proﬁt at
tr
ibu
ta
ble to o
rdina
r
y sha
reho
lde
rs f
rom cont
inuin
g op
erati
ons
5,
106
6
,
2
14
Proﬁt o
n disco
ntinu
ed op
er
ation
s, net of t
a
x
693
1
,1
9
8
Pro
ﬁt af
te
r t
a
x, at
t
ribu
ta
bl
e to e
qui
ty h
ol
de
rs of t
he p
ar
en
t
5
,799
7,
4
1
2
202
2
2021
Sha
res
Shar
es
Weighted aver
age num
ber o
f ordin
ar
y sha
res i
n the year
7
3
,
419,
193
7
3
,
419
,
193
Ef
fec
t
of
s
hare
opti
ons
in
is
sue
3
24,
977
1
5,
97
4
Weigh
ted ave
rag
e num
be
r of or
din
ar
y s
ha
re
s (dilu
ted
) in t
he yea
r
7
3
,
74
4
,1
7
0
73,
435,
16
7
In ad
diti
on to the a
bove, the Co
mpa
ny als
o cal
culates a
n ear
ning
s per s
hare b
as
ed o
n unde
rly
ing pro
ﬁt a
s the B
oard b
eli
eves this
provid
es a m
ore us
eful co
mpa
ris
on of bu
sine
ss tr
ends a
nd p
er
for
man
ce. Unde
rlyi
ng proﬁ
t is deﬁ
ned a
s pro
ﬁt befo
re impa
ir
ment
s,
rati
ona
lisat
ion co
st
s, one
-of
f r
etirem
ent b
eneﬁ
t ef
fec
ts, e
xceptio
nal b
ad de
bts, b
usin
ess cl
osure co
st
s, lit
igati
on cos
ts, oth
er
sep
ar
ately di
sclo
sed o
ne
-of
f i
tems a
nd the i
mpac
t of pro
pe
r
t
y and b
usin
es
s disp
os
als, n
et of at
tri
but
ab
le t
a
xes
.
The fo
llowi
ng ta
bl
e recon
ciles t
he Gro
up’
s proﬁ
t to unde
rly
ing pr
oﬁt us
ed in th
e num
erato
r in ca
lculatin
g und
erl
ying ea
rni
ngs
p
e
r s
h
a
re:
202
2
2021
£000
£
000
Proﬁt af
ter t
a
x, at
t
rib
uta
bl
e to equi
t
y hol
der
s of th
e pare
nt
5,799
7,
4
1
2
Continuing operations:
E
xceptio
nal – R
ationa
lis
atio
n and re
st
ruc
tur
ing co
st
s, net of t
a
x
133
1,9
6
8
E
xceptio
nal – G
ain i
n resp
ec
t of retire
ment b
ene
ﬁts, n
et of ta
x
(8
5
4)
(6,458)
CO
VID
-
related U
S govern
ment g
ran
t incom
e, net of ta
x
(2
,0
87
)
—
Discontinued operations:
E
xceptio
nal – R
ationa
lis
atio
n and re
st
ruc
tur
ing co
st
s, net of t
a
x
—
52
E
xceptio
nal – G
ain o
n disp
os
al of di
scont
inue
d op
erati
ons, n
et of ta
x
(69
3)
(1,
2
5
0
)
Un
der
lyi
ng pr
oﬁ
t att
ri
but
a
ble t
o eq
uit
y ho
ld
er
s of t
he pa
re
nt
2
,298
1,7
24
CO
VID
-
related U
S govern
ment g
ran
t incom
e, net of ta
x
2
,0
87
—
Pro
ﬁt af
te
r t
a
x but b
efo
re e
xcep
ti
ona
l it
em
s, at
t
rib
ut
ab
le to e
qu
it
y hol
de
rs of t
h
e pa
ren
t
4,385
1,724
Und
erl
ying o
per
atin
g proﬁt – co
ntinui
ng op
er
ation
s
6,096
4,8
4
0
Fina
nce
reven
ue
–
contin
uing
op
erat
ions
77
42
Fina
nce
e
xp
ens
e
–
co
ntinu
ing
o
pe
ratio
ns
(
3
,0
6
6)
(
2
,70
1)
Inco
me ta
x e
xp
ens
e – contin
uing o
per
atio
ns
(8
0
9)
(45
7
)
Underlying
proﬁt attributable to
equity holders
of the p
arent – con
tinuing oper
ations
2
,298
1,7
24
CO
VID
-
related U
S govern
ment g
ran
t incom
e, net of ta
x
2,0
87
—
Pro
ﬁt af
te
r t
a
x but b
efo
re e
xcep
ti
ona
l it
em
s – co
nti
nui
ng o
per
ati
on
s
4,385
1,724
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
113
Carclo plc
Annu
al re
po
r
t an
d accoun
ts 2022
The fo
llowi
ng ta
bl
e summa
ri
ses t
he ear
nin
gs pe
r shar
e ﬁgure
s ba
sed o
n the a
bove dat
a:
202
2
2021
Pen
ce
Pence
Ba
sic ea
rni
ngs p
er sha
re – conti
nuin
g ope
ratio
ns
7.
0
8.
5
Ba
sic ea
rni
ngs p
er sha
re – dis
contin
ued o
per
atio
ns
0
.9
1.
6
Ba
si
c ea
rni
ng
s per s
ha
re
7.9
1
0
.1
Dil
uted ea
rni
ngs p
er sha
re – conti
nuin
g ope
ratio
ns
6
.9
8.5
Dil
uted ea
rni
ngs p
er sha
re – dis
conti
nued o
per
atio
ns
0
.9
1.
6
Di
lut
ed e
ar
nin
gs p
er s
ha
re
7.9
1
0
.1
Und
erl
ying ea
rni
ngs p
er sh
are – ba
si
c – contin
uing o
per
atio
ns
3
.1
2.4
Und
erl
ying ea
rni
ngs p
er sh
are – ba
si
c – disco
ntinu
ed op
er
ation
s
—
—
Un
der
lyi
ng e
arn
ing
s pe
r sh
ar
e – ba
si
c
3
.1
2.4
Und
erl
ying ea
rni
ngs p
er sh
are – dil
uted – co
ntinui
ng op
er
ation
s
3
.1
2.4
Und
erl
ying ea
rni
ngs p
er sh
are – dil
uted – d
iscon
tinue
d op
erat
ions
—
—
Un
der
lyi
ng e
arn
ing
s pe
r sh
ar
e – di
lut
ed
3
.1
2.
4
Ear
nin
gs pe
r shar
e before e
xcepti
ona
l items – b
a
sic – cont
inuin
g ope
rati
ons
6
.0
2.4
Ear
nin
gs pe
r shar
e before e
xcepti
ona
l items – b
a
sic – dis
conti
nue
d ope
ratio
ns
—
—
Ea
rni
ng
s per s
ha
re b
ef
ore e
xce
pti
on
al it
em
s – ba
si
c
6.0
2.
4
Ear
nin
gs pe
r shar
e before e
xcepti
ona
l items – d
ilute
d – conti
nuing o
pe
ratio
ns
6
.0
2.4
Ear
nin
gs pe
r shar
e before e
xcepti
ona
l items – d
ilute
d – dis
contin
ued o
per
atio
ns
—
—
Ea
rni
ng
s per s
ha
re b
ef
ore e
xce
pti
on
al it
em
s – di
lut
ed
6.0
2.4
14. Dividends paid and proposed
The D
irec
tor
s are n
ot prop
osi
ng a ﬁna
l divi
den
d for the yea
r end
ed 31 Ma
rch 20
2
2 (20
21
: £nil). Unde
r the ter
ms of t
he res
tru
ct
urin
g
agre
eme
nt entere
d into on 14 Augus
t 20
20
, the G
roup i
s not per
mit
te
d to make a di
vide
nd paym
ent to sha
reho
lde
rs u
p to the
per
io
d endi
ng in Ju
ly 20
23.
114
Carclo
plc
Annu
al re
por
t an
d accoun
ts 2022
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
15. Intangible assets
Pat
ent
s
a
nd
Cu
st
ome
r-
development
related
Computer
Goodwill
costs
intangibl
es
sof
tware
T
otal
£000
£
000 £
000 £
000 £
000
Cost
Bal
ance at 31 Ma
rch 20
20
24
,
12
7
16,
734
5
83
1,664
43,
108
Add
itio
ns
— — —
1
39
1
39
Dis
pos
al
s
—
—
—
(1
1)
(1
1)
Ef
fec
t of moveme
nts in fo
reign e
xchan
ge
(
1
,
71
9
)
—
(
56
)
(5
1
)
(1
,8
26
)
Bal
ance at 31 Ma
rch 20
21
22,408
1
6,
734
527
1
,
7
4
1
41
,4
1
0
Additions
—
—
—
135
135
Ef
fec
t of moveme
nts in fo
reign e
xchan
ge
686
—
26
2
3
735
Ba
la
nc
e at 31 Ma
rc
h 2022
23,094
16,734
553
1,899
42,
280
Amortisation
Bal
ance at 31 Ma
rch 20
20
2,
1
65
16,
734
202
1
,
1
27
20,228
Amo
r
tis
atio
n for th
e year
—
—
53
1
53
206
Dis
pos
al
s
—
—
—
(6
)
(
6
)
Ef
fec
t of moveme
nts in fo
reign e
xchan
ge
(822)
—
(20)
(2
4
)
(866
)
Bal
ance at 31 Ma
rch 20
21
1
,
343
16,
734
2
35
1,250
1
9
,562
Amo
r
tis
atio
n for th
e year
—
—
6
7
136
203
Ef
fec
t of moveme
nts in fo
reign e
xchan
ge
(21
3)
—
—
14
(199
)
Ba
la
nc
e at 31 Ma
rc
h 2022
1,
130
1
6,734
302
1,4
00
19
,
566
Carr
ying amo
unts
At 1 Apr
il 20
20
21
,
96
2
—
381
5
37
22,880
At 31 March 20
21
21
,065
—
292
491
21
,84
8
At 31 Ma
rch 2
022
21,
964
—
2
51
499
2
2,714
The G
roup ha
s in
curre
d resea
rch an
d develo
pme
nt cos
ts of £0.2 millio
n (20
21
: £
0.
1 milli
on) which have been i
nclud
ed wi
thin
ope
rati
ng ex
pe
nse
s in th
e incom
e st
ateme
nt.
Impairment tests for cash gener
ating units containing goodwill
Go
odw
ill acqu
ired in a b
usi
nes
s combi
natio
n is all
oc
ated at acqu
isiti
on to th
e ca
sh ge
ner
ating u
nit
s (“C
G
Us”) that a
re ex
pe
cte
d to
ben
eﬁt fro
m that b
usin
ess co
mbinat
ion. Th
e car
r
yin
g am
ount of go
od
will i
s allo
cate
d to the G
roup’s princip
al CGUs, b
eing t
he
ope
rati
ng se
gme
nts d
escr
ibe
d in the o
pe
ratin
g seg
ment d
es
cripti
ons in n
ote 3.
The c
arr
yin
g valu
e of go
odw
ill at 31 March 2022 and 31 Ma
rch 20
21 is allo
cated w
hol
ly to the T
e
chnic
al Pl
as
tic
s ca
sh ge
ner
ating u
nit
a
s fo
ll
ow
s:
The fo
llowi
ng ca
sh g
ener
atin
g unit
s have signi
ﬁca
nt ca
rr
yin
g am
ount
s of go
odw
ill po
st im
pai
rme
nt:
202
2
2021
£000
£
000
T
echn
ica
l
Pla
s
tics
2
1
,96
4
2
1,0
6
5
At 31 March 20
22, the re
covera
ble a
mou
nt of the T
echnic
al Pl
as
tic
s ca
sh ge
ner
ating u
nit wa
s dete
rmi
ned o
n a cal
culatio
n of va
lue
in us
e, being t
he hig
her of t
hat an
d fai
r valu
e les
s cos
ts of di
spo
sa
l “F
VLC
D”
. The re
sult
s of each p
rodu
ced the s
am
e an
swer
, that
the
re is no im
pai
rme
nt of go
odw
ill.
The va
lue i
n use c
alcu
lation
s us
e ca
sh ﬂow pro
jec
tio
ns ba
s
ed up
on ﬁna
ncial b
udg
ets a
pp
roved by mana
gem
ent coveri
ng a
thre
e-year p
eri
od. Ca
sh ﬂ
ows beyon
d the th
ree
-year per
io
d are e
x
tra
pol
ated us
ing es
tim
ated grow
th r
ates of b
et
ween 2.3%
and 4.2% (20
21
: 1.5
% an
d 4.6
%) depen
ding u
pon t
he ma
rket ser
ved.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
115
Ca
rclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
The c
as
h ﬂows we
re disco
unted at p
re-t
a
x rate
s in the r
an
ge 6.
1
%-
8.7
% (20
2
1
: 4.
9%-
8.4
%
)
. The
se rate
s are c
alcul
ated an
d
reviewe
d annu
all
y and a
re ba
se
d on th
e Grou
p’
s weighte
d average co
st of c
api
ta
l. Chang
es in i
ncome a
nd e
xp
end
iture a
re ba
se
d
on e
xp
ec
tati
ons of f
uture ch
ang
es in th
e mar
ket. Sen
siti
vit
y tes
tin
g of the re
covera
ble a
mou
nt to rea
sona
bly p
os
sibl
e chan
ges i
n
key ass
umpti
ons ha
s b
een p
er
for
me
d, includ
ing cha
nge
s in the d
isco
unt rate a
nd cha
nge
s in forec
a
st ca
s
h ﬂows.
All ot
her a
ssu
mptio
ns un
chang
ed, a 6.6
% (20
21
: 7
.8%
) increa
s
e in the d
iscou
nt rate in
creas
ing th
e ra
nge to 12
.7
% -
15.3% (20
21
:
1
2.6
%
-
16.
1
%)
, or a 45% (2
0
21
: 47
%
) decrea
s
e in und
erl
ying EB
IT would re
duce t
he hea
droo
m on the T
echnic
al Pl
as
tic
s CGU to £nil.
Sho
uld th
e dis
count r
ate increa
se f
ur
the
r tha
n this o
r the pr
oﬁta
bil
it
y decre
as
e fur
t
her
, the
n an imp
air
me
nt of the g
ood
will wo
uld
be li
kely
.
16. Property
, plant and equipment
Land
and
Plant
and
b
uildings
equipment
T
otal
£000
£
000
£
000
Cost
Bal
ance at 31 Ma
rch 20
20
3
3,
180
65,46
7
98,647
Add
itio
ns
5,0
1
1
5,
363
10
,37
4
D
is
p
o
s
a
l
s
(14
8)
(1,
195
)
(1,3
4
3)
Ef
fec
t of moveme
nts in fo
reign e
xchan
ge
(1
,597)
(1
,
97
6)
(3,573
)
Bal
ance at 31 Ma
rch 20
21
36,4
46
6
7
,659
104,
1
05
Additions
5,79
2
3,
91
6
9,
708
Disposals
(
3)
(1,
0
87
)
(1,0
9
0)
Recla
ss
iﬁcat
ion to a
ss
ets h
eld fo
r sa
le
(6
0
8)
—
(6
0
8)
Ef
fec
t of moveme
nts in fo
reign e
xchan
ge
1,
2
96
1,639
2,9
35
Ba
la
nc
e at 31 Ma
rc
h 2022
4
2
,9
2
3
7
2,
1
27
11
5,050
Depreciation and impair
ment losses
Bal
ance at 31 Ma
rch 20
20
10,
980
4
7
,2
72
58,252
De
preciat
ion cha
rge for t
he year
2,508
3,2
66
5,
77
4
Dis
pos
al
s
—
(1
,
150
)
(1
,
1
50)
Imp
air
ment
—
(1
3)
(1
3)
Ef
fec
t of moveme
nts in fo
reign e
xchan
ge
(
640)
(1
,336)
(1
,
97
6)
Bal
ance at 31 Ma
rch 20
21
12
,848
48,039
60,
887
De
preciat
ion
ch
arge
for
the
year
3,
338
3,4
87
6,8
25
Disposals
(2)
(1,0
6
8) (1,
070)
Recla
ss
iﬁcat
ion to a
ss
ets h
eld fo
r sa
le
(3
42)
—
(
3
42)
Ef
fec
t of moveme
nts in fo
reign e
xchan
ge
621
1,165
1,78
6
Ba
la
nc
e at 31 Ma
rc
h 2022
16
,
4
6
3
51,
62
3
6
8,
0
8
6
Ca
rr
yi
ng a
mou
nt
s
At 1 Apr
il 20
20
2
2,2
00
18,
1
95
40,395
At 31 March 20
21
23,598
1
9
,620
43,218
At 31 Ma
rch 2
022
26,46
0
2
0,
50
4
4
6
,9
6
4
At 31 March 20
22, pro
per
t
ies w
ith a ca
rr
y
ing a
moun
t of £2.6
9 mill
ion wer
e subje
ct to a re
gis
tered ch
arge i
n favour of th
e Grou
p
pen
sio
n sche
me (20
2
1
: £2.
75 milli
on) capp
ed at £5.
1 m
illio
n.
Prop
er
t
y
, p
lant a
nd e
quipm
ent in
clude
s ri
ght
-of-us
e a
sse
ts a
s set o
ut in note 5.
La
nd an
d buil
ding
s wit
h a car
r
yin
g val
ue of £0
.3 mi
llio
n have been re
cla
ssi
ﬁed to a
ss
ets h
eld fo
r sa
le a
s set o
ut in note 21
.
The im
pac
t of th
e glob
al pa
nd
emic, a
nd a
s a resu
lt the d
owntu
rn in a
ir travel, ha
s b
een p
ar
ti
cular
ly ha
rd on the A
eros
pace se
gme
nt
and t
he di
visio
n saw a
n adver
se ef
fe
ct o
n it
s custo
mer b
as
e whi
ch in the p
rio
r year wa
s de
eme
d by mana
geme
nt to be a
n
indi
catio
n of imp
air
ment
. Followi
ng a res
ult la
rgel
y in lin
e with b
udg
et for th
e year to 31 March 2022 and t
rad
ing an
d orde
r bo
ok
stro
ng in t
he pe
rio
d sub
seq
uent to th
e ba
lance s
hee
t date, manag
eme
nt no lo
nge
r bel
ieve this to b
e the c
as
e.
116
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
17
. Inv
entories
202
2
2021
£000
£
000
Raw
mate
ria
ls
a
nd
co
nsum
abl
es
9,
4
6
0
6
,
218
Work
i
n
pro
gres
s
329
319
Finis
hed
go
od
s
7,1
9
8
6,
28
4
16
,9
8
7
12,821
The va
lue o
f inventori
es is s
tate
d af
ter im
pai
rme
nt for ob
so
les
cence a
nd wr
ite down
s to net rea
lis
abl
e val
ue of £0.
858 mil
lion
(2021
:
£1.043 m
i
ll
io
n)
.
18. Contr
act assets
202
2
2021
£000
£
000
Contr
ac
t
a
ss
ets
–
se
e
note
6
7,
7
0
0
2,898
The G
roup a
ppl
ies th
e IFRS 9 si
mpli
ﬁed a
ppro
ach to mea
sur
ing e
xp
ec
ted cre
dit lo
ss
es whi
ch use
s a lifet
ime e
xp
ec
ted lo
ss
all
owan
ce for all co
ntra
ct a
ss
ets
.
T
o mea
sur
e the e
xp
ec
ted cred
it lo
sse
s, contr
ac
t as
set
s have bee
n group
ed b
as
ed on s
hare
d credi
t ris
k char
acte
ris
tic
s.
The co
ntrac
t a
ss
ets re
late to unbi
lle
d work i
n prog
ress a
nd a
re ther
efore not pa
s
t due. Th
e Group h
as rev
iewed th
e ris
k
char
ac
teris
tic
s and co
nsi
der
s the
m to be th
e sa
me a
s the t
rade r
eceiv
abl
es not p
as
t due fo
r the s
am
e ty
pe
s of contr
act
s.
The G
roup ha
s con
clude
d that th
e ex
pe
cte
d los
s rates fo
r the co
ntrac
t a
ss
ets a
re the
refore £nil (202
1
: £n
il).
Aga
ins
t an op
enin
g contr
ac
t as
set b
ala
nce of £
2.898 million at 31 Ma
rch 20
21
, i
nvoicing of £
2.862 million d
urin
g the yea
r to
31March2022 indic
ates th
at the cont
rac
t a
sse
t has b
ee
n mos
tly re
covered du
ring t
he pe
rio
d.
19
.
T
rade and other receiv
ables
202
2
2021
£000
£
000
Am
ount
s d
ue wit
h
in on
e yea
r
T
rade
receivables
14
,
83
6
1
5,51
2
Less
imp
air
ment
provi
sion
s
(4
4)
(16)
14,7
92
15,4
96
Prepayme
nts
2
,454
1
,
3
61
Ot
her
debto
rs
2
,456
2,3
97
T
ra
de a
nd ot
he
r re
ce
iva
ble
s – du
e wit
hi
n one ye
ar
19,
7
0
2
1
9,
2
5
4
Am
ount
s d
ue af
te
r on
e yea
r
Other
debtors
and
prepay
ments
11
5
11
2
T
ra
de a
nd ot
he
r re
ce
iva
ble
s – du
e af
te
r on
e year
11
5
11
2
The G
roup a
ppl
ies th
e IFRS 9 si
mpli
ﬁed a
ppro
ach to mea
sur
ing e
xp
ec
ted cre
dit lo
ss
es whi
ch use
s a lifet
ime e
xp
ec
ted lo
ss
all
owan
ce for all t
rad
e recei
vab
les.
The li
fetim
e ex
pec
ted l
os
s allow
ance t
akes i
nto account h
isto
ric
al cred
it lo
ss an
d imp
air
ment e
xp
er
ience fo
r the on
goi
ng cus
tome
r
ba
se a
s well a
s re
cent cred
it inte
llige
nce for key cus
tomer a
ccount
s which i
n turn t
ake
s into account t
he imp
ac
ts of COVID
-
1
9 o
n
credi
t ris
k.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
117
Carclo plc
Annu
al rep
or
t a
nd a
ccount
s 2022
T
o mea
sur
e the e
xp
ec
ted cred
it lo
sse
s, tra
de rece
ivab
le
s have been g
roup
ed ba
se
d on sh
are
d credit r
isk cha
ra
cter
is
tics a
nd th
e
days pa
st d
ue. On th
at ba
sis, th
e los
s all
owan
ce as at 31 Ma
rch 20
22 wa
s dete
rmi
ned a
s fol
lows for t
rad
e recei
vab
les:
2022
2
021
Gross
Gross
carrying
Loss
Expected
car
r
yi
ng
Los
s Ex
p
ec
ted
a
mo
unt
al
lowa
nc
e
l
os
s ra
te
amount
allowance
loss rat
e
£000 £000
%
£
000 £
000
%
Not pa
s
t due
1
3,626
—
0.0%
13
,
413
—
0.
0
%
Pa
st du
e 0 – 30 days
1,
090
—
0.0%
1,
973
—
0.0
%
Pa
st du
e 31 – 60 days
55
—
0.0%
50
—
0.0%
Pa
st du
e 6
1 – 12
0 days
21
—
0.0%
58
—
0.0%
Mor
e than 120 da
ys
4
4
4
4
100.0%
1
8
1
6
8
8.
9%
14,836
4
4
0.
3%
1
5,51
2
16
0.
1
%
The m
ovement i
n the a
llowa
nce for im
pai
rme
nt in res
pec
t of tr
ade re
ceiva
bl
es an
d contr
act a
s
set
s dur
ing th
e per
iod w
as a
s
fo
ll
ow
s:
202
2
2021
£000
£
000
Bal
ance
at
1
A
pr
il
16
16
Amo
unt
s
wr
it
ten
of
f
(2)
—
Net
mea
sure
ment
of
l
oss
al
lowa
nce
30
—
Ba
la
nc
e at 31 Ma
rc
h
44
16
20
. Cash and cash deposits
202
2
2021
£000
£
000
Ca
sh
at
ba
nk
a
nd
i
n
ha
nd
1
2,34
7
1
5,485
At 31 March 20
22 C
arclo p
lc’s ov
erdr
af
t of £
2.4 million (202
1
: £4.6 millio
n
) ha
s be
en reco
gnis
ed wi
thin c
as
h and c
a
sh de
pos
its w
hen
cons
oli
dated du
e to a righ
t of set-of
f und
er a UK n
et overdr
af
t ar
ra
ngem
ent
21. Non-current assets classiﬁed as held for sale
202
2
2021
£000
£
000
Land
and
buildings
held
for
sa
le
266
—
Net
a
sset
s
h
eld
for
s
al
e
266
—
At 31 March 20
22, the G
roup i
s clos
e to ﬁnal
isin
g an agre
eme
nt wit
h a buyer fo
r the s
ale a
nd l
eas
eba
ck of a T
echn
ica
l Pla
sti
cs
man
ufac
tur
ing s
ite at T
uc
son, A
rizo
na, US
A. T
he ca
rr
yi
ng am
ount of t
he pro
per
t
y at 31 Ma
rch 20
22 is £0.6 million, h
owever only
the p
ropo
r
tio
n relati
ng to the d
isp
ose
d us
eful li
fe ha
s bee
n cla
ssiﬁ
ed a
s he
ld for s
ale at yea
r end. £0.
4 milli
on, be
ing th
e prop
or
t
ion
ex
pe
cte
d to be reco
gnis
ed a
s a ri
ght-of-use a
ss
et on com
plet
ion, cont
inue
s to be di
sclo
sed a
s a n
on-
curre
nt as
set w
ithi
n prop
er
t
y
,
pla
nt an
d equi
pme
nt at 31March 20
22.
On 29 A
pril 2022, subs
equ
ent to th
e bal
ance sh
eet d
ate, the Grou
p entere
d into a sa
le a
nd lea
s
eback a
gree
ment for t
he T
u
cso
n
site. Se
e note 34 fo
r fur
t
her d
eta
ils.
118
Carclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
22. Loans and borro
wings
202
2
2021
£000
£
000
Current
Ban
k
lo
ans:
T
er
m
lo
an
1,
331
1,
47
3
Lease liabilities:
Land
and
buildings
988
1,
2
9
1
Plan
t
an
d
eq
uipm
ent
559
1
76
Ot
her l
oan
s:
Gover
nmen
t
CO
VI
D-1
9
s
upp
or
t
loa
ns
—
2
,1
0
4
Ot
her
loa
ns
70
40
2
,94
8
5,08
4
Non
-curre
nt
Ban
k loa
ns rep
ayabl
e bet
wee
n one a
nd t
wo year
s:
T
er
m
lo
an
28
,
929
1,
27
3
Revolv
ing
cred
it
f
acil
it
y
3,
50
0
—
Ban
k loa
ns rep
ayabl
e bet
wee
n t
wo and ﬁ
ve years:
T
er
m
lo
an
—
2
9,
0
6
6
Revolv
ing
cred
it
f
acil
it
y
—
2
,
000
Lease liabilities:
Land
and
buildings
5
,9
5
7
4,88
0
Plan
t
an
d
eq
uipm
ent
3,
366
70
8
Ot
her l
oan
s:
Ot
her l
oan
s repaya
ble b
et
ween o
ne a
nd t
wo year
s
43
42
Ot
her l
oan
s repaya
ble b
et
ween t
wo a
nd ﬁve year
s
9
28
41
,8
0
4
3
7,
9
9
7
T
ot
a
l loa
ns a
nd b
orr
owin
gs
4
4,752
4
3,0
81
The G
roup ha
s a U
K mult
i-cur
renc
y net overd
raf
t f
acilit
y w
ith a £nil n
et lim
it an
d a £1
2.5 m
illio
n gros
s limi
t agree
d a
s par
t of the
reﬁna
ncing a
rr
ang
eme
nt sign
ed on 14 Augus
t 20
20. The overdraf
ts b
ear in
teres
t at bet
we
en 2.0% and 4.5% above preva
ilin
g UK
ba
nk ba
se r
ates. At 31 March 2022, Carclo p
lc’s overdraf
t of £
2.4 millio
n (20
21
: £
4.6 millio
n
) ha
s be
en reco
gnis
ed wi
thin c
as
h an
d
ca
sh de
po
sit
s whe
n conso
lid
ated due to a r
ight of s
et-of
f
.
The d
ebt faci
liti
es avail
abl
e to the G
roup co
mpr
ise a ter
m lo
an of £3
0.3 milli
on, of wh
ich £1
.4 mi
llio
n will b
e amo
r
tis
ed by
30S
eptemb
er 2022 and a £
3.5 mill
ion revol
ving cre
dit f
acili
ty w
hich wa
s fu
lly ut
ilis
ed a
s of 31 March 2022. Both of the
se f
acilit
ies
mature o
n 31 July 2023.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
119
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
The te
rm lo
ans a
re den
omi
nated a
s foll
ows: ster
lin
g 1
9
.5 mil
lion, U
S doll
ar 1
3.3 mi
llio
n and e
uro 4.
9 mi
llio
n. £1
.4 mill
ion of t
he
ste
rlin
g facil
it
y will b
e am
or
ti
sed by 3
0 Septe
mbe
r 20
22 wit
h the b
ala
nce on th
is an
d the t
wo fore
ign cur
renc
y facil
itie
s payab
le
atterm
inatio
n on 31 July 2023. Carcl
o Plc is re
quire
d, per t
he agre
eme
nt, to pre
pay bor
rowin
gs of am
ount
s equ
al to e
xcess c
as
h
ar
isin
g from di
spo
sa
l, intercom
pany a
nd ins
ura
nce pro
cee
ds. Du
rin
g the year to 31 Ma
rch 20
22, proce
ed
s amo
untin
g to
£0
.6milli
on were re
ceived f
rom th
e Admin
ist
rator
s of W
ipac Ltd by HSB
C and we
re us
ed to pre
pay the ter
m loa
n. In ad
diti
on to
this, a f
ur
th
er £1
.6 milli
on of sch
edu
led p
repayme
nts we
re made by t
he Com
pany to fu
r
the
r redu
ce the lo
an du
rin
g the pe
rio
d.
Ban
k loa
ns in
cur intere
st at b
et
ween 1.
9% an
d 4.5% above preva
ili
ng ba
nk ba
se r
ates.
The b
ank f
acilit
ies a
re subj
ec
t to four covena
nts to b
e tes
ted on a qu
ar
te
rly b
as
is:
1
. und
erly
ing in
teres
t cover;
2. net debt to u
nde
rlyi
ng EBITDA;
3. core
subsidiar
y underlying EBIT
A; and
4. core sub
sidia
r
y revenu
e
Core su
bsid
iar
ies a
re deﬁn
ed a
s Ca
rclo T
e
chnica
l Pla
s
tics Ltd, Bru
ntons Ae
ro Prod
uc
ts Ltd, Carcl
o T
echn
ica
l Pla
sti
cs (Brn
o
) s.r
.o,
CTP C
ar
rera I
nc an
d Jacot
tet In
dus
trie S
AS, w
ith C
TP T
aic
an
g Co. L
td an
d Carcl
o T
echn
ica
l Pla
sti
cs P
v
t Co Ltd bein
g treated a
s
non
-cor
e for the p
urp
os
es of th
ese covena
nts
.
In ad
diti
on, the p
ens
ion s
cheme h
as t
he be
neﬁt of a ﬁ
f
th covena
nt to be tes
ted o
n 1 May each year up to a
nd in
cludin
g 20
23.
Inres
pe
ct to th
e year
s to 31 March 20
22 a
nd 31 March 2023 the tes
t req
uires a
ny sho
r
t
fal
l of pen
sio
n deﬁcit re
cover
y contr
ibu
tio
ns
whe
n mea
sure
d aga
ins
t Pensio
n Protec
tio
n Fund pri
ori
t
y drif
t (whi
ch is a mea
sure of t
he in
creas
e in the U
K Pens
ion Prote
cti
on
Fund’s potentia
l ex
po
sure to th
e Grou
p’
s pen
sion s
chem
e liab
ilit
ies) to be met by a com
binati
on of c
as
h paymen
ts to th
e sche
me,
plu
s a notio
nal (non-
ca
sh) propo
r
tio
n of the i
ncrea
se in t
he und
erl
ying v
alu
e of the T
e
chnic
al Pla
s
tic
s and Ae
rosp
ace bu
sine
sse
s
ba
se
d on an EB
ITDA multi
ple fo
r thos
e bu
sine
sse
s whi
ch is to be de
term
ined a
nnua
lly
.
The G
roup ha
s com
plie
d wit
h the ﬁn
ancia
l covenant
s of it
s bo
rrowi
ng faci
liti
es dur
ing th
e ﬁna
ncial re
po
r
ting p
er
iod.
Und
er th
e term
s of the re
str
uc
tur
ing ag
reem
ent, th
e Grou
p is not pe
rmi
t
ted to ma
ke a divid
end p
ayment to th
e sha
reho
lde
rs of
Ca
rclo plc u
p to the p
eri
od en
ding i
n July 2023.
Ban
k loa
ns in
clude £
33.8 mill
ion (20
21
: £33.8 m
illio
n
) se
cured on t
he a
ss
ets of t
he Gro
up. The ba
nk lo
an fa
ciliti
es ar
e secure
d by
gua
ran
tees f
rom cer
t
ai
n Grou
p compa
nie
s and by ﬁ
xed a
nd ﬂo
ating cha
rge
s over cer
t
ain of th
e a
sset
s of a nu
mbe
r of the G
roup’s
comp
an
ies.
As p
ar
t of t
he de
bt res
tru
ctu
rin
g which co
nclud
ed on 14 Augus
t 20
20, securi
ty w
as g
ra
nted by cer
t
ain G
roup co
mpa
nies to t
he
ba
nk such th
at at 31 March 20
22 th
e gros
s val
ue of th
e as
set
s se
cured, whi
ch inclu
des a
ppl
ica
ble i
ntra-
grou
p bal
ance
s, go
odw
ill
and i
nvestm
ent
s in sub
sidi
ari
es at net b
oo
k val
ue in th
e releva
nt com
pon
ent com
pani
es’ accoun
ts, bu
t whi
ch elimi
nate in the
Grou
p upo
n cons
olid
ation, a
mou
nted to £
2
48.2 mi
llio
n (20
21
: £251
.2 milli
on)
. E
xclu
din
g the a
ss
ets w
hich el
iminate in t
he Gro
up
upo
n cons
oli
dation t
he va
lue of t
he se
curit
y w
as £
31
.
1 milli
on (20
21
: £32.8 millio
n
)
.
12
0
Carclo plc
Annua
l rep
or
t a
nd ac
count
s 20
22
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
22. Loans and borro
wings
continued
R
econciliation of mov
ements of liabilities to cash ﬂo
ws arising from ﬁnancing activities
Ba
nk
o
verd
raf
t
s
u
se
d
fo
r
c
a
sh
Gove
rn
me
nt
ma
nag
eme
nt
T
er
m
COVI
D
-
19
R
evol
vin
g
Lea
se
Ot
her
pu
rp
os
es
lo
an
su
pp
or
t l
oan
cre
di
t fa
cili
t
y
l
iab
ili
ti
es
lo
an
s
Total
£000
£
000 £
000 £000
£
000 £
000 £000
Bal
ance at 31 Ma
rch 20
20
10,
957
—
—
3
0,442
5,2
50
17
46,666
Ch
an
ge
s fro
m ﬁna
nc
in
g ca
sh ﬂ
ows
Dr
awing
s on new f
acili
ties
—
34,35
4
2,243
2,00
0
—
100
3
8,6
97
T
ra
ns
act
ion co
st
s as
so
ciated wi
th the i
ssu
e of debt
—
(3
8
0)
—
—
—
—
(3
8
0)
Repaym
ent of bo
rrowi
ngs
—
(1
,589)
—
(30,0
71)
(1
,60
1
)
(6
)
(33,26
7
)
—
32,385
2,2
43
(28,
07
1
)
(1,
601
)
94
5,050
Ef
fe
ct of c
ha
ng
es in f
or
eig
n exc
ha
nge ra
te
s
—
(657)
(1
39
)
(37
1
)
(21
5)
(1
)
(1
,383)
Liability–related
other changes
Chan
ges i
n ban
k overdraf
t
2,
184
—
—
—
—
—
2,
184
Dr
awing o
n new fa
ciliti
es
—
—
—
—
3,
7
6
9
—
3,
7
6
9
T
er
minati
on of fa
ciliti
es
(1
3,
1
93
)
—
—
—
(1
4
8)
—
(1
3,3
4
1
)
Intere
st e
xp
ens
e
6
1
8
4
—
—
—
—
145
Intere
st re
ceiva
ble
(
9)
—
—
—
—
—
(9)
(10
,
957)
8
4
—
—
3,6
21
—
(7
,252)
Equity–related
other changes
—
—
—
—
—
—
—
Bal
ance at 31 Ma
rch 20
21
—
31
,81
2
2,
1
04
2,00
0
7
,055
1
10
43,081
Ch
an
ge
s fro
m ﬁna
nc
in
g ca
sh ﬂ
ows
Dr
awing
s on new f
acili
ties
—
—
—
1,50
0
—
75
1,575
Repaym
ent of bo
rrowi
ngs
—
(2,
21
8)
—
—
(3,
195)
(64)
(5,
477)
—
(2,
21
8)
—
1,50
0
(3,
195)
11
(3,
902)
Ef
fe
ct of c
ha
ng
es in f
or
eig
n exc
ha
nge ra
te
s
—
4
40
(1
7)
—
192
1
61
6
Liability-related
other changes
Dr
awing
s on new f
acili
ties
—
—
—
—
6,81
8
—
6,818
Conver
sio
n of loa
n to a gra
nt (see note 10
)
—
—
(2,087)
—
—
—
(2,087)
Intere
st e
xp
ens
e
—
226
—
—
—
—
2
26
—
2
26
(2,087)
—
6,81
8
—
4,957
Equ
it
y-r
el
ate
d ot
he
r cha
ng
es
—
—
—
—
—
—
—
Ba
la
nc
e at 31 Ma
rc
h 2022
—
3
0,260
—
3,500
10,8
70
122
4
4,752
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
121
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
23. Deferred tax assets and liabilities
R
ecognised deferred tax assets and liabilities
Defe
rred t
a
x a
s
set
s and l
iabi
liti
es are at
t
rib
uta
bl
e to the fol
lowin
g:
202
2
2021
£000
£
000
A
ss
et
s:
Prop
er
t
y
,
pla
nt
a
nd
e
quip
ment
283
—
Shor
t
-
term
timing
dif
ferences
250
2
52
T
a
x
los
se
s
870
13
2
De
fer
re
d ta
x a
ss
et
s
1,
4
0
3
3
84
Liabili
ties:
Int
ang
ibl
e
a
sse
ts
(
2
,
62
2)
(
2,
5
16)
Prop
er
t
y
,
pla
nt
a
nd
e
quip
ment
(
1,
5
4
6)
(1,
4
0
0)
Shor
t
-
term
timing
dif
ferences
(317)
(2
8
4)
Foreign ta
x on undistributed foreign pro
ﬁts
(3
93)
(
193
)
Defer
red
tax liab
iliti
es
(4
,8
78)
(4
,
3
93
)
Net deferred
tax liability
(
3,
47
5)
(4
,0
0
9)
Unrecognised deferred tax asse
ts
Defe
rred t
a
x a
s
set
s have not bee
n reco
gnis
ed in re
spe
ct of t
he foll
owin
g items:
202
2
2021
£000
£
000
T
a
x
los
se
s
–
tr
adi
ng
3
,7
70
5,
1
7
4
T
a
x
los
se
s
–
c
api
ta
l
50
52
9
T
a
x
los
se
s
–
n
on-tr
adin
g
1,
4
94
35
Prop
er
t
y
,
pla
nt
a
nd
e
quip
ment
2
,1
8
5
702
Shor
t
-
term
timing
dif
ferences
12
62
Empl
oyee
be
neﬁt
s
6,
333
7,
0
8
6
13
,
8
4
4
13
,
5
8
8
Defe
rred t
a
x a
s
set
s have not bee
n reco
gnis
ed on t
he ba
lan
ce she
et to the e
x
tent that t
he und
erl
ying t
imin
g dif
fer
ences a
re not
ex
pe
cte
d to revers
e. The natu
re of the t
a
x re
gime
s in cer
t
ai
n of the re
gio
ns in wh
ich Ca
rclo op
erate
s are su
ch that t
a
x lo
sse
s may
ar
ise even t
houg
h the b
usin
ess i
s proﬁt
ab
le. This s
ituat
ion is e
xp
ec
ted to con
tinue i
n the m
ediu
m term. A
n increa
se in d
efer
red t
a
x
los
se
s recog
nise
d a
s a defer
red t
a
x a
ss
et a
s at 31 March 20
22 is b
a
sed u
pon t
he lates
t ap
proved b
usin
ess p
lan a
nd pro
ﬁta
bil
it
y
levels t
here
in. Cap
it
al lo
ss
es wil
l be re
cogni
sed at t
he po
int whe
n a tra
ns
act
ion gi
ves ri
se to an of
fs
eta
bl
e cap
it
al ga
in. This w
as n
ot
the c
as
e at 31March 2022. Simila
rly
, non-tr
adi
ng lo
sse
s will o
nly b
e util
ise
d agai
nst f
utu
re non
-tradi
ng proﬁ
ts. N
o such, no
n-tra
ding
proﬁt
s ar
e fores
een at 31 Ma
rch 20
22.
£0
.2 milli
on of th
e ta
x lo
sse
s reco
gnis
ed at 31 March 2022 (20
21
: £
0.
1 milli
on) are time re
st
ric
ted to ﬁve year
s, th
e rema
ind
er are
availa
bl
e to car
r
y for
wa
rd wi
thou
t time re
st
ric
tio
n.
At 31 March 20
22, £0
.4 milli
on of defe
rre
d ta
x l
iab
iliti
es were re
cogn
ise
d for ta
xe
s that woul
d be de
duc
tib
le on t
he unr
emit
te
d
ear
ning
s of the G
roup’s oversea
s su
bsi
diar
y u
nde
r
ta
kin
gs (20
21
: £0
.2 mil
lion)
. As th
e Grou
p pol
icy i
s to continu
all
y reinves
t in tho
se
bus
ine
sse
s, provis
ion ha
s not b
ee
n made a
gain
st un
remit
te
d ear
ning
s that a
re not pla
nne
d to be re
mit
ted. I
f all ea
rni
ngs were
remi
t
ted it is e
st
imated t
hat £0
.4 millio
n of add
itio
nal t
a
x wou
ld be p
ayabl
e (20
2
1
: £
0.6 millio
n
)
.
Defe
rred t
a
x a
s
set
s and l
iabi
liti
es at 31 March 2022 have bee
n cal
culated b
as
ed on t
he rate
s sub
st
anti
vely ena
cte
d at the b
ala
nce
she
et date.
A chan
ge to the m
ain U
K corp
or
ation t
a
x r
ate, set ou
t in the Fi
nan
ce Bill 202
1
, was s
ubs
ta
ntive
ly enac
ted o
n 2
4 May 20
21
, w
ith th
e
mai
n rate of cor
po
ratio
n ta
x to be
come 2
5% from 1 Ap
ril 2023.
12
2
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
23. Deferred tax assets and liabilities
continued
R
econciliation of mov
ement in recognised deferr
ed tax assets
Balanc
e
Balance
as
at
Recognised
Recogni
sed
as at
1
A
pr
21
in in
co
me
i
n eq
uit
y
31 M
ar 2
2
£000
£000 £000
£000
Prop
er
t
y
,
pla
nt
a
nd
e
quip
ment
(
1
,400)
203
(
66)
(1
,263)
Int
ang
ibl
e
a
sse
ts
(2,51
6)
(37)
(69
) (2,622
)
Shor
t
-
term
timing
dif
ferences
(3
2
)
(
3
3)
(
2)
(67
)
T
a
x
los
se
s
1
3
2
728
10
870
Foreign ta
x on undistributed foreign pro
ﬁts
(1
93
)
(20
0)
—
(393)
(4,
0
0
9
)
66
1
(1
27)
(3,
47
5)
Balanc
e
Balance
as
at
Rec
ognised
Recognised
as
at
1 Ap
r 20
i
n in
com
e
in e
qu
it
y
31 Ma
r 21
£000
£000
£
000 £
000
Prop
er
t
y
, p
lant a
nd e
quipm
ent
(1
,271
)
(304)
17
5
(1
,40
0)
Int
ang
ibl
e
a
sse
ts
(2
,654)
—
1
38
(
2,5
1
6
)
Sho
r
t
-term
tim
ing
d
if
fere
nces
8
(
38)
(2
)
(
32
)
T
a
x
los
se
s
16
5
(29)
(
4)
13
2
Foreign ta
x on undistributed foreign pro
ﬁts
(
400)
20
7
—
(
1
93
)
(
4,
1
52
)
(1
64)
3
0
7
(
4,009
)
24. R
etirement beneﬁt obligations
The G
roup o
per
ates a deﬁ
ned b
eneﬁ
t UK p
ensi
on sch
eme w
hich provi
des p
ens
ion
s ba
sed o
n ser
vice a
nd ﬁna
l pay
. Ou
ts
ide of th
e
UK
, retirem
ent b
eneﬁ
ts a
re deter
min
ed accord
ing to lo
ca
l pra
cti
ce and f
und
ed acco
rdingl
y
.
In th
e UK, C
arclo p
lc sp
ons
or
s the C
arcl
o Group Pen
sio
n Sche
me (the “S
chem
e”), a funde
d deﬁn
ed be
neﬁt p
ens
ion s
chem
e which
provid
es d
eﬁned b
en
eﬁts fo
r som
e of it
s mem
ber
s. Th
is is a le
gal
ly se
par
ate, trus
tee
-admin
iste
red fu
nd ho
ldin
g the S
chem
e’
s
a
sset
s to me
et lon
g-ter
m pen
sion l
iabi
liti
es for s
ome 2,662 current a
nd pa
s
t emp
loyees a
s at 31 March 2022.
The tr
us
tee
s of the S
chem
e are re
quire
d to act i
n the b
es
t interes
t of th
e Sche
me’s beneﬁ
ciari
es. Th
e app
oint
ment of t
he tr
us
tees
is dete
rmi
ned by th
e Sche
me’s trus
t docum
ent
atio
n. It is po
lic
y that at lea
s
t one
-third of a
ll tr
uste
es sh
oul
d be no
minate
d by the
mem
ber
s. Th
e tru
ste
es curr
ently co
mpr
ise t
wo Com
pa
ny-nomin
ated tr
uste
es (of which on
e is an i
nde
pen
dent p
rofess
iona
l
tru
ste
e and o
ne is th
e ind
epe
nde
nt profes
sio
nal Cha
irp
er
so
n
) as we
ll a
s t
wo memb
er-nom
inated tr
us
tee
s. The tr
us
tees a
re al
so
resp
ons
ibl
e for the i
nvestm
ent of th
e Sch
eme’s ass
et
s.
The S
chem
e provid
es p
ensi
ons a
nd lum
p sums to m
emb
er
s on reti
reme
nt and to t
heir d
epe
nda
nts o
n death. D
urin
g the yea
r to
31March 2022, the Sche
me int
rodu
ced a Pensi
on In
creas
e E
xchan
ge opt
ion (“PIE”), see b
elow fo
r fur
th
er de
ta
ils. Th
e level of
retire
ment b
ene
ﬁt is pr
incip
all
y ba
sed o
n ﬁna
l pen
sion
abl
e sa
lar
y p
rio
r to leavin
g act
ive ser
v
ice an
d is linke
d to chang
es in i
nﬂatio
n
up to reti
remen
t. The de
ﬁned b
ene
ﬁt se
cti
on is clo
se
d to new ent
rant
s, wh
o now have the o
ption of e
nteri
ng into a s
epa
rate
deﬁn
ed cont
rib
utio
n sche
me, and t
he Gro
up ha
s ele
cte
d to cea
se fu
ture accr
ual fo
r ex
ist
ing m
emb
er
s of the d
eﬁned b
en
eﬁt
se
cti
on such t
hat mem
ber
s wh
o have not yet retire
d are ent
itle
d to a defe
rred p
ens
ion.
The Co
mpa
ny current
ly pays cont
rib
utio
ns to th
e Sche
me a
s deter
min
ed by regu
lar a
ctu
ari
al va
luatio
ns. Th
e tru
ste
es are r
equi
red
to use p
ru
dent a
ss
umpti
ons to va
lue th
e lia
bili
ties a
nd cos
t
s of the S
chem
e wher
eas t
he accou
nting a
ss
umpti
ons un
der I
AS 19
mus
t be b
es
t est
imates
.
The S
chem
e is sub
jec
t to the f
undi
ng le
gisl
ation, wh
ich ca
me into fo
rce on 30 D
ecem
ber 2005, o
utli
ned i
n the Pens
ion
s Act 200
4.
This, to
get
her wi
th do
cumen
ts is
sue
d by the Pens
ions Re
gulato
r
, a
nd Gu
ida
nce Notes a
dopte
d by the Fin
ancia
l Repo
r
tin
g Coun
cil,
set o
ut the f
ra
mewor
k for fu
ndin
g deﬁn
ed be
neﬁt o
ccupati
ona
l pen
sion p
lan
s in the U
K.
A full a
ct
uar
ial va
luati
on wa
s ca
rr
ied o
ut a
s at 31 March 201
8 in accorda
nce wi
th the s
chem
e fun
ding re
quire
ment
s of th
e Pensio
ns
Act 20
04. The f
undin
g of the S
chem
e is agr
eed b
et
ween t
he Gro
up an
d the tr
us
tee
s in line w
ith t
hos
e requi
reme
nts. T
hes
e in
par
ticul
ar req
uire th
e sur
plus o
r deﬁci
t to be ca
lculate
d usi
ng pr
ude
nt, as o
pp
ose
d to be
st es
tim
ate, actua
ria
l a
ssu
mptio
ns.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
12
3
Carclo plc
Annu
al re
po
r
t and a
ccoun
ts 2022
This 31Ma
rch 20
18 actua
ria
l val
uatio
n showe
d a deﬁcit o
f £90.
4 milli
on. Un
der th
e recover
y p
lan ag
reed w
ith th
e tru
ste
es
foll
owingt
he 201
8 v
aluat
ion, th
e Grou
p agree
d that it wo
uld a
im to eli
minate th
e deﬁci
t over a per
iod of 19 years 9 m
onth
s from
1Febr
uar
y202
1
, which i
s by 31 Octob
er 2040, by the p
ayment of a
nnu
al cont
ribu
tio
ns comb
ine
d with t
he a
ssu
med a
ss
et retu
rns
inexce
ss of gi
lt yie
lds. C
ontr
ibut
ion
s pai
d in the yea
r to 31 March 20
21 amou
nted to £
2.8 millio
n, £3.
9 m
illio
n dur
ing th
e year to
31March 2022 and a
re agre
ed a
s £3.8 mi
llion i
n the year e
ndi
ng Ma
rch 20
23. The
se cont
ribu
tio
ns incl
ude a
n all
owan
ce of
£0
.6milli
on p.a. in re
spe
ct of t
he ex
pe
nse
s of run
ning t
he Sch
eme a
nd th
e Pensio
n Protec
tio
n Fund (“PPF”) levy
.
Beyond 2023, a sche
dule of co
ntri
buti
ons fo
r £3.5 mi
llio
n annu
ally i
s in pla
ce until 31 Oc
tob
er 2040, bu
t is reviewe
d and
recon
sid
ered b
et
ween t
he em
ployer a
nd the t
rus
tee
s at each tri
enni
al ac
tua
ria
l val
uatio
n
; the n
ex
t revi
ew bei
ng no late
r than by
31July 2022 af
ter th
e resul
ts of t
he 31 March 202
1 trie
nnia
l val
uatio
n are k
nown.
On 14 Augus
t 20
20 addit
iona
l se
curit
y wa
s gr
ante
d by cer
t
ain G
roup com
pan
ies to th
e Sch
eme tr
us
tees s
uch that at 31 Ma
rch 20
22
the gr
oss va
lue o
f the a
ss
ets s
ecure
d, which in
clude
s ap
plic
ab
le intr
a-g
roup b
ala
nces, g
ood
will a
nd inves
tm
ents i
n subs
idia
rie
s at
net b
ook v
alu
e in the re
leva
nt comp
one
nt comp
anie
s’ account
s, but w
hich el
iminate i
n the G
roup up
on con
sol
idatio
n, amo
unted
to £248.2 mil
lion (202
1
: £
251
.2 millio
n
). Exclud
ing th
e as
set
s whi
ch elim
inate in th
e Grou
p upo
n conso
lid
ation t
he val
ue of th
e
se
curit
y wa
s £
36.3 mil
lion (202
1
: £
37
.
9 mill
ion)
.
For the p
urp
os
es of IA
S 1
9
, th
e resul
ts of t
he ac
tua
ria
l val
uation a
s at 31 Ma
rch 20
18, which wa
s car
ri
ed ou
t by a quali
ﬁed
ind
epe
nde
nt act
uar
y
, have been u
pdate
d on an a
pp
roxim
ate ba
sis to 31 Ma
rch 20
22. There have be
en no ch
ang
es in th
e val
uatio
n
meth
odo
lo
gy ado
pted for t
his pe
rio
d’s disclo
sure
s comp
ared to t
he prev
ious p
er
iod’s dis
closu
res.
The S
chem
e ex
po
ses t
he Gro
up to ac
tuar
ial r
isk
s a
nd the key ri
sk
s are se
t out in t
he t
abl
e bel
ow
. In each in
st
ance th
es
e ris
ks wou
ld
detr
ime
nta
lly im
pac
t the G
roup’s state
ment of ﬁ
nancia
l po
siti
on a
nd may give ri
se to in
creas
ed inte
res
t cost
s in th
e Gro
up incom
e
st
ateme
nt. The t
rus
tee
s could re
quire h
ighe
r ca
sh con
trib
utio
ns or a
ddi
tiona
l se
curi
ty f
rom th
e Grou
p.
The tr
us
tee
s mana
ge gover
nan
ce and o
per
ation
al r
isk
s throu
gh a num
ber of i
ntern
al cont
rols p
oli
cies, in
cludi
ng a ri
sk regi
ster a
nd
integrated risk management.
Risk
Description
Mitig
ation
Inv
estment risk
Weaker than e
x
pec
ted i
nvestm
ent retu
rns
resu
lt in a wor
s
enin
g in the S
chem
e’
s
funding position.
The trustees
cont
inually
monitor
inv
estment
ris
k and p
er
fo
rma
nce an
d have est
ab
lish
ed
an inves
tm
ent sub
-co
mmi
tte
e whi
ch
incl
udes a
Group
repr
esenta
tive
, meets
regu
lar
ly an
d is adv
ise
d by profes
sion
al
invest
ment a
dvis
or
s. A numb
er of t
he
inv
estment manager
s operate tactica
l
invest
ment m
anag
eme
nt of the p
lan a
s
set
s.
The Scheme
curr
ently in
v
ests approximat
ely
56
% in lia
bili
t
y-dr
iven inves
tme
nts, 42% of its
a
sset v
alu
e in a po
r
t
folio of d
iver
siﬁe
d
grow
th f
unds a
nd 2% in ca
s
h and l
iquid
it
y
funds.
Interest r
ate
risk
A decre
as
e in cor
por
ate bo
nd yie
lds
increa
se
s the p
res
ent va
lue of th
e IAS 19
deﬁne
d beneﬁ
t oblig
ations.
A decre
as
e in gil
t yiel
ds re
sult
s in a
wor
sen
ing in t
he Sch
eme’s fund
ing
position.
The tr
us
tee
s’ investm
ent st
rateg
y inclu
des
investing in liability-dri
ven in
vestments and
bo
nds wh
os
e valu
es in
creas
e wit
h
decr
eases in
int
erest ra
tes
.
App
roxi
mately 96
% of the S
chem
e’
s
fun
ded l
iabi
liti
es are cur
rent
ly he
dge
d
against interest rates using liabilit
y-driven
inve
st
me
nt
s.
Note that t
he Sch
eme h
edg
es inte
res
t
rater
isk on a s
tat
utor
y a
nd lo
ng-ter
m
fun
ding b
as
is (gilt
s) wherea
s A
A cor
po
rate
bo
nds a
re impl
icit in t
he IA
S 1
9 dis
count
rate a
nd so th
ere is s
ome m
ismatch
ing ri
sk
to the G
roup sh
oul
dyiel
ds on g
ilt
s and
corporat
ebonds
diver
ge
.
12
4
Carc
lo plc
Ann
ual re
po
r
t an
d accoun
ts 2022
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
24. R
etirement beneﬁt obligations
continued
Risk
Description
Mitig
ation
Inﬂat
ion risk
An in
creas
e in inﬂat
ion re
sult
s in hi
gher
ben
eﬁt in
creas
es fo
r memb
er
s whi
ch in
tur
n increa
se
s the S
chem
e’
s liab
ilit
ies.
The tr
us
tee
s’ investm
ent st
rateg
y inclu
des
investing in liability-dri
ven in
vestments
which w
ill move wi
th inﬂati
on e
xp
ec
tati
ons
wit
h app
roxi
mately 8
0% of the S
chem
e’
s
inﬂation-linked liabilities being hedge
d on a
fun
ded b
as
is. The g
row
th a
sse
ts he
ld a
re
ex
pe
cte
d to provid
e protec
tio
n over
inﬂati
on in th
e lon
g term.
Mo
rt
a
lit
yr
is
k
An in
creas
e in li
fe ex
pec
t
anc
y lead
s to
ben
eﬁt
s bei
ng payab
le for a l
ong
er pe
rio
d
which re
sul
ts in a
n increa
se i
n the
Scheme’
s liabilities.
The tr
us
tee
s’ actu
ar
y prov
ide
s regul
ar
upd
ates on m
or
t
ali
ty
, ba
se
d on sch
eme
ex
pe
rien
ce, and th
e as
sumpt
ion co
ntinu
es
to be rev
iewed.
The a
mou
nts re
cogni
sed i
n the s
tatem
ent of ﬁn
ancia
l po
siti
on in re
spe
ct of t
he deﬁ
ned b
eneﬁ
t sche
me were a
s fol
lows:
202
2
2021
£000
£
000
Pres
ent
v
alu
e
of
f
und
ed
o
blig
ation
s
(181,7
59)
(204,65
4)
Fair
va
lue
of
s
chem
e
a
ss
ets
15
5,78
0
1
6
7,
3
7
9
Recognised liabili
ty for deﬁned
beneﬁt obliga
tions
(
2
5
,9
7
9)
(
3
7,
2
7
5
)
The p
rese
nt val
ue of Sch
eme l
iabi
liti
es is m
eas
ured by di
scount
ing th
e be
st es
tim
ate of fut
ure ca
sh ﬂ
ows to be p
aid o
ut of th
e
Sche
me us
ing th
e proj
ec
ted uni
t credi
t meth
od. The v
alu
e cal
culated in t
his way is reﬂ
ec
ted in th
e net lia
bil
it
y in th
e st
atemen
t of
ﬁnan
cial p
osi
tion a
s sh
own ab
ove.
The p
rojec
ted u
nit cre
dit me
thod i
s an accr
ued b
en
eﬁts v
aluat
ion m
etho
d in whi
ch allow
ance i
s made fo
r proje
cte
d ear
ning
s
increa
se
s. The a
ccumulate
d ben
eﬁt ob
ligat
ion is a
n al
ternat
ive ac
tuar
ial m
ea
sure of th
e Sche
me’s liabil
itie
s who
se c
alcul
ation
dif
fe
rs f
rom that un
der t
he pro
jec
ted un
it credi
t meth
od in t
hat it in
clude
s no a
ssu
mptio
n for fu
ture ea
rnin
gs in
creas
es. I
n this
ca
se, a
s the S
chem
e is clos
ed to f
uture a
ccrua
l, the accumu
lated b
eneﬁ
t obl
igatio
n is eq
ual to th
e val
uatio
n usin
g the p
rojec
ted
unit credit method.
All a
ctu
ari
al rem
ea
surem
ent ga
ins a
nd lo
sse
s will b
e reco
gnis
ed in t
he year in w
hich th
ey occur in oth
er com
preh
ensi
ve incom
e.
The cum
ulative re
mea
surem
ent n
et los
s repo
r
ted i
n the s
tatem
ent of com
preh
ens
ive incom
e since 1 A
pr
il 2004 is £40.856 mill
ion.
IFRI
C 1
4 ha
s no ef
fec
t on th
e ﬁgure
s dis
clos
ed b
eca
use t
he Comp
any ha
s an u
ncond
itio
nal r
ight to a ref
und u
nde
r the res
ulti
ng
trust pr
inciple.
Mov
ements in the net liability for deﬁned beneﬁt obligations r
ecognised in the consolidated statement
ofﬁnancial position:
202
2
2021
£000
£
000
Net li
abi
lit
y for d
eﬁned b
en
eﬁt ob
ligati
ons at th
e st
ar
t o
f the year
(
3
7,
2
7
5
)
(37
,620)
Contri
butions
paid
3
,9
0
0
2,8
3
4
Net (exp
ens
e)
/
cre
dit re
cogni
sed i
n the con
so
lidate
d incom
e st
ateme
nt (
se
e bel
ow)
(
1,0
8
4)
4,052
Remeasurement
gains/
(losses)
recognised i
n other
comprehensiv
e inc
ome
8,4
80
(6
,
5
41)
Ne
t lia
bi
lit
y fo
r de
ﬁne
d be
ne
ﬁt ob
lig
at
ion
s at t
he e
nd of t
he ye
ar
(2
5
,9
7
9)
(
3
7,
2
7
5
)
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
12
5
Ca
rclo plc
Ann
ual re
po
r
t an
d accou
nts 2022
Mov
ements in the present v
alue of deﬁned beneﬁt obligations:
202
2
2021
£000
£
000
Deﬁn
ed b
eneﬁ
t obli
gatio
n at the s
ta
r
t of th
e year
204,65
4
210,
3
8
6
Intere
st
ex
pe
nse
3
,9
8
6
4
,73
0
Act
uar
ial g
ain
s due to cha
nge
s in dem
ogr
ap
hic a
ssu
mptio
ns
(1,
767
)
(6
,7
27
)
Act
uar
ial (ga
ins)/loss
es du
e to chan
ges i
n ﬁnan
cial a
ssu
mptio
ns
(13
,
476)
12
,
28
0
Ben
eﬁt
s
pa
id
(10,78
4)
(
9,
5
5
7
)
Pa
st
s
er
v
ice
cred
it
(see
note
9)
(8
5
4)
(6,458)
De
ﬁne
d be
ne
ﬁt ob
lig
at
io
n at th
e en
d of t
he yea
r
181,75
9
204,654
Wit
h the e
xceptio
n of that d
escr
ibe
d be
low
, the
re have been n
o pla
n am
endm
ent
s, cur
ta
ilm
ent
s or set
t
lem
ents d
urin
g the p
er
iod.
The S
chem
e intro
duced a Pe
nsio
n Increa
se E
xcha
ng
e (“PIE”) option at r
etirem
ent du
ring t
he year
. A De
ed of A
mend
ment, s
igne
d
1
6Ma
rch 20
22, created the r
ight fo
r defer
red m
emb
er
s to take a PI
E at retirem
ent. A m
emb
er an
noun
cemen
t wa
s issu
ed to al
l
defer
red m
emb
er
s at the en
d of Ma
rch 20
22.
The D
ee
d of Ame
ndm
ent al
so created t
he ri
ght for m
emb
er
s to receive PI
E on ter
ms su
ch that 20% of the PI
E valu
e is ret
ain
ed
wit
hin the S
che
me. Ba
sed u
pon t
he a
ssum
ptio
n that 40% of m
emb
er
s will o
pt for PIE at ret
irem
ent, thi
s resul
ted in a re
duc
tio
n
inthe cu
rrent v
alu
e of accru
ed lia
bili
tie
s and, a
s a res
ult, a pa
s
t ser
vice cre
dit ha
s be
en re
cogni
sed i
n the in
come s
tate
ment of
£0
.
9mi
llio
n, pres
ented w
ithi
n except
iona
l item
s. A Bri
dgin
g Pensi
on Opt
ion wa
s int
rodu
ced in th
e pr
ior year w
ith si
mila
r
a
ssum
ption
s made. A pa
s
t ser
v
ice cred
it wa
s reco
gnis
ed in t
he year en
ded 31 Ma
rch 20
21 in the inco
me s
tatem
ent of
£6.689millio
n an
d pres
ented a
s e
xceptio
nal i
tems.
The En
glish H
igh Co
ur
t ru
ling in L
loyds Ban
kin
g Grou
p Pensio
n T
ru
ste
es Lim
ited v Ll
oyds Bank p
lc a
nd othe
rs w
as p
ubli
she
d on
26Octo
ber 201
8, an
d hel
d that UK p
ens
ion s
cheme
s wit
h Gua
ra
nteed M
inim
um Pensi
ons (“GMP
s”) accrue
d from 17 May 1
9
90
mus
t equ
alis
e for th
e dif
fer
ent ef
fec
t
s of the
se GM
Ps b
et
ween m
en an
d wome
n. The ca
s
e als
o gave som
e guida
nce on r
elated
matter
s, including the methods for equalisation.
The tr
us
tee
s of the p
lan wi
ll ne
ed to obt
ai
n lega
l adv
ice coverin
g the im
pac
t of the r
uli
ng on th
e pla
n, before d
ecid
ing wi
th th
e
emp
loyer on th
e meth
od to ad
opt. Th
e lega
l adv
ice will n
ee
d to consi
der (amon
gs
t other t
hing
s
) the a
ppro
pri
ate GMP e
qua
lisat
ion
sol
utio
n, whet
her th
ere sh
oul
d be a tim
e limi
t on th
e obl
igatio
n to make ba
ck
-paym
ent
s to memb
er
s (the “loo
k
-ba
ck” p
eri
od) a
nd
the tr
eatment o
f form
er me
mbe
rs (memb
er
s who have die
d wit
hou
t a spo
use a
nd me
mbe
rs w
ho have tra
ns
ferre
d out fo
r
example
)
.
The tr
us
tee
s commi
ssio
ned s
chem
e-s
pe
ciﬁc ca
lculat
ions to d
eter
mine t
he likely i
mpac
t of th
e rul
ing on t
he Sch
eme. An a
llow
ance
for th
e impa
ct of G
MP eq
uali
sati
on wa
s incl
ude
d with
in the 31 Ma
rch 201
9 accou
ntin
g ﬁgure
s, increa
sin
g liab
ilit
ies by 1.68%
;
aresu
ltin
g pa
st s
er
vi
ce cost of £
3.559 millio
n wa
s reco
gnis
ed in th
e incom
e st
ateme
nt at that ti
me. The S
chem
e has n
ot yet
imp
lem
ented G
MP eq
uali
sati
on an
d the
refore th
e all
owan
ce made in 201
9 has b
ee
n main
ta
ined fo
r account
ing di
sclo
sure
s.
On 20 Novem
ber 202
0, the Hig
h Cour
t i
ssu
ed a sup
ple
ment
ar
y r
ulin
g in th
e Lloyds Ba
nk GM
P equa
lis
ation c
a
se wi
th res
pec
t to
mem
ber
s that h
ave trans
fer
red ou
t of the
ir sche
me pr
ior to t
he ru
ling. Th
e resu
lts m
ean t
hat tru
ste
es are o
bli
ged to m
ake top
-up
payme
nts th
at reﬂec
t eq
uali
sati
on be
neﬁt
s an
d to make top
-up p
ayment
s whe
re this w
as n
ot the c
as
e in the p
a
st. A
lso, a deﬁn
ed
ben
eﬁt s
cheme t
hat recei
ved a tr
ans
fer is co
ncurre
ntly o
blig
ed to prov
ide e
qual
ise
d ben
eﬁt
s in resp
ec
t to the t
ra
nsfe
r payment
s
and, ﬁ
nall
y
, the
re were no e
xclus
ions o
n the g
round
s of dis
charg
e form
s, CET
V le
gis
lation, fo
r
feitu
re provis
ion
s or the L
imit
atio
n
Act 1980.
The im
pac
t of thi
s ruli
ng wa
s es
tim
ated to cos
t £0
.231 millio
n (
app
roxi
mately 0.
1% of liabil
itie
s
)
. This a
ddi
tion
al se
r
vice cos
t wa
s
reco
gnis
ed thro
ugh t
he inco
me st
atem
ent a
s a pa
st s
er
vi
ce cost i
n the year e
ndin
g 31 March 202
1 and w
as p
rese
nted wi
thin
except
iona
l item
s an
d there
fore the i
mpac
t of th
e ruli
ng is a
llowe
d for in th
e ﬁgure
s pres
ented at 31 Ma
rch 20
22.
The S
chem
e liab
ilit
ies a
re spl
it bet
we
en ac
tive, defer
red a
nd p
ensi
oner m
emb
er
s at 31 March a
s foll
ows:
202
2
2021
%
%
Active
—
—
Defe
rre
d
35
35
Pensioners
65
65
10
0
10
0
126
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
24. R
etirement beneﬁt obligations
continued
Mov
ements in the f
air v
alue of Scheme assets:
202
2
2021
£000
£
000
Fair val
ue of S
cheme a
s
set
s at the s
ta
r
t of th
e year
1
6
7,
3
7
9
17
2
,76
6
Intere
st
inco
me
3,
259
3,888
Loss o
n Sche
me a
ss
ets e
xcludi
ng intere
st i
ncom
e
(6
,
76
3
)
(98
8)
Contri
butions
by
employ
er
3
,9
0
0
2,
83
4
Ben
eﬁt
s
pa
id
(10,78
4)
(
9,
5
5
7
)
E
xp
ens
es
p
aid
(
1,
211
)
(1,
5
6
4)
Fair va
lue o
f Sc
he
me a
ss
et
s at t
he e
nd of t
he ye
ar
15
5,
780
1
6
7,
3
7
9
Act
ua
l (lo
ss)/
ret
ur
n on S
che
me a
s
set
s
(3
,
5
0
4)
2
,9
0
0
The f
air va
lue o
f Sche
me a
sse
t invest
ment
s wa
s a
s follow
s:
202
2
2021
£000
£
000
Diversiﬁed
grow
th
funds
65,234
9
0
,1
7
7
Bon
ds
a
nd
liab
ilit
y-
dri
ven
inves
tme
nt
f
unds
8
7,
9
3
1
7
1,0
4
4
Ca
sh
and
liq
uidi
t
y
fun
ds
2
,
61
5
6
,1
5
8
T
otal
asse
ts
15
5,78
0
1
6
7,
3
7
9
Non
e of the f
air v
alu
es of th
e as
set
s show
n ab
ove includ
e any of the G
roup’s own ﬁnan
cial in
str
ume
nts o
r any pro
per
t
y o
ccupie
d,
or oth
er a
sse
ts us
ed by th
e Grou
p.
All of t
he Sch
eme a
s
set
s have a quoted ma
rket pr
ice in a
n act
ive mar
ket with t
he exce
ption o
f the tr
us
tees’ ba
nk acco
unt ba
lan
ce.
Dive
rsi
ﬁed gr
owt
h fun
ds are p
oo
led f
und
s investe
d acros
s a diver
siﬁ
ed r
ang
e of as
set
s wi
th the a
im of giv
ing l
ong
-term
inv
estment growth with lower shor
t
-t
erm volatility than equities.
It is th
e po
licy o
f the tr
us
tees a
nd th
e Grou
p to review th
e invest
ment s
trate
gy at th
e time of e
ach fun
ding v
aluat
ion. Th
e tru
stee
s’
invest
ment o
bje
cti
ves an
d the p
roces
ses u
nde
r
ta
ken to mea
sure a
nd ma
nag
e the ri
sk
s inhe
rent in t
he Sch
eme a
re set o
ut in th
e
Stat
ement of
Inv
estment Princi
ples.
A prop
or
t
ion of th
e Sch
eme’s ass
et
s is inves
ted in th
e BMO LD
I No
mina
l Dyn
ami
c LDI Fund a
nd in th
e BMO LD
I Real D
yna
mic LD
I
Fund which p
rovide
s a de
gree of a
s
set lia
bili
t
y matchin
g.
The n
et ex
pen
se/(
gai
n
) recog
nise
d in th
e cons
olid
ated inco
me s
tatem
ent wa
s a
s foll
ows:
202
2
2021
£000
£
000
Pa
st
s
er
v
ice
cred
it
(8
5
4)
(6,458)
Net in
teres
t on th
e net deﬁ
ned b
ene
ﬁt lia
bili
ty
7
27
8
42
Scheme
administr
ation
e
xpense
s
1,
2
11
1,
5
6
4
1,0
8
4
(4,
0
52)
The n
et ex
pen
se/(
gai
n
) is reco
gnis
ed in th
e foll
owing l
ine ite
ms in th
e cons
oli
dated in
come s
tate
ment:
202
2
2021
£000
£
000
Charg
ed
to
op
erat
ing
p
roﬁt
1,
000
1
,11
7
Credi
ted
to
exce
ption
al
i
tems
(6
4
3
)
(6,01
1)
Ot
her ﬁn
ance reven
ue an
d ex
pen
se – ne
t intere
st on t
he net d
eﬁne
d ben
eﬁt lia
bil
it
y
727
8
42
1,0
8
4
(4,
0
52)
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
127
Carclo plc
Annu
al rep
or
t a
nd a
ccount
s 2022
The p
rin
cipal a
ctu
ar
ial a
ss
umptio
ns at th
e bal
ance s
heet d
ate (
ex
pres
se
d as wei
ghted aver
age
s
) were:
202
2
2021
Dis
count
rate
at
31
Ma
rch
2
.70
%
2.0
0
%
Future
s
al
ar
y
i
ncrea
se
s
N
/A
N
/A
Inﬂation
(RPI
)
(
non-pensioner)
3
.70
%
3
.2
5%
Inﬂation
(C
PI)
(non-pensioner
)
3
.20%
2
.75%
All
owan
ce for reval
uatio
n of defer
red p
ensi
ons of R
PI or 5% p.a. if le
ss
3
.70
%
3
.2
5%
All
owan
ce for reval
uatio
n of defer
red p
ensi
ons of CPI o
r 5% p
.a. if l
es
s
3.
20%
2
.75%
All
owan
ce for pe
nsio
n in payme
nt increa
se
s of RPI o
r 5% p
.a. if l
ess
3.
5
5%
3
.1
5
%
All
owan
ce for pe
nsio
n in payme
nt increa
se
s of CPI or 3% p.a. if l
es
s
2
.60%
2.
3
0%
All
owan
ce for pe
nsio
n in payme
nt increa
se
s of RPI o
r 5% p
.a. if l
ess, m
inimu
m 3% p.a.
3.
85%
3.
65%
All
owan
ce for pe
nsio
n in payme
nt increa
se
s of RPI o
r 5% p
.a. if l
ess, m
inimu
m 4
% p.a.
4
.3
0%
4.20
%
The m
or
t
ali
ty a
s
sumpt
ions a
dopte
d at 31 March 20
22 a
re 1
43% an
d 1
53% resp
ec
tivel
y of the s
ta
nda
rd ta
bl
es S3
PMA
/S3
PF
A (202
1
:
1
43%/1
53% for S3P
MA
/S3PFA respe
cti
vely), y
ear of b
ir
th, no a
ge rati
ng for ma
le
s and fe
mal
es, pr
ojec
ted u
sing CM
I
_
20
21
convergin
g to 1
.00% p.a. (20
21
: 1
.00%
) w
ith a sm
ooth
ing pa
ra
meter 7
.0% (20
21
: 7
.
0)
.
It is re
cogni
sed t
hat the Co
re CMI
_
202
1 mod
el is likel
y to repre
sen
t an overl
y cau
tiou
s view of e
xp
eri
ence in t
he nea
r term.
As a re
sul
t, mana
gem
ent have app
lie
d judg
eme
nt an
d the CMI
_
202
1 mo
del ha
s b
een a
dopte
d with a w2
02
1 and w2
02
0 weight
ing
par
am
eter of 10% to repre
sent p
os
sibl
e fut
ure tren
d as a b
es
t es
timate a
nd wi
ll be kept un
der rev
iew in th
e fut
ure.
The
se a
ssu
mptio
ns imp
ly th
e follow
ing li
fe ex
pec
t
ancie
s:
202
2
2021
Life e
xp
ec
ta
ncy fo
r a mal
e (
curren
t pen
sion
er) aged 65
1
8.8
y
ears
1
9.
0
y
e
a
r
s
Life e
xp
ec
ta
ncy fo
r a fema
le (c
urre
nt pe
nsio
ner) age
d 65
20.
9
ye
ars
21.
0
y
e
a
r
s
Life e
xp
ec
ta
ncy at 65 for a m
ale a
ged 45
19
.7 yea
r
s
19.
9
y
e
a
r
s
Life e
xp
ec
ta
ncy at 65 for a fe
mal
e age
d 45
22.0
y
ears
22.
2 y
ears
It is a
ss
umed t
hat 75% of the po
st A-
Day ma
x
imum fo
r ac
tive an
d defer
red me
mbe
rs w
ill b
e commu
ted for c
as
h (20
21
: 75
%
)
.
Pensi
on Increa
s
e E
xchang
e ta
ke-up i
s as
sum
ed to be 4
0% (20
2
1
: Brid
ging Pe
nsio
n Opti
on ta
ke-u
p 40%
)
.
The p
ensi
on sch
eme l
iabi
liti
es are d
er
ived us
ing ac
tua
ria
l a
ssum
ption
s for inﬂat
ion, fu
ture s
ala
r
y increa
s
es, di
scount r
ates,
mor
ta
lit
yr
ates an
d commu
tati
on. Du
e to the re
lative si
ze of the S
cheme’s liab
ilit
ies, sm
all cha
ng
es to the
se a
ss
umpti
ons ca
n give
ris
e to a sign
iﬁca
nt imp
act o
n the p
ens
ion s
chem
e deﬁcit re
por
ted in t
he Gro
up st
atem
ent of ﬁna
ncia
l pos
itio
n.
The s
ensi
tivi
t
y to the p
rinci
pal a
ctu
ari
al a
ssu
mptio
ns of th
e pres
ent va
lue of t
he deﬁ
ned b
eneﬁ
t obl
igatio
n is sh
own in th
e
foll
owingt
ab
le:
202
2
202
2
2021
2021
%
£000
% £000
Disc
ount rate
1
Increa
s
e of 0.25% per ann
um
(3
.
68)%
(6,
68
2)
(3
.43)%
(
7
,014)
De
creas
e of 0.25% per an
num
3
.
8
2
%
6
,9
3
7
3.6
1
%
7
,
396
De
creas
e of 1.
0% per a
nnum
16
.1
0
%
2
9,
2
5
8
15.
71
%
3
2,
1
4
7
Inﬂat
ion
2
Increa
s
e of 0.25% per ann
um
1.25%
2,272
1.
1
4%
2,3
34
Increa
s
e of 1
.0% per ann
um
4.71% 8,56
8
4.89%
1
0,
00
4
De
creas
e of 1.
0% per a
nnum
(5.
47
)% (9,
948)
n
/a
n
/a
Life expectanc
y
Increa
s
e
of
1
year
4
.
8
8%
8
,8
62
5
.
0
6%
10
,
3
5
5
1.
At 31 March 2022, th
e as
sum
ed d
isco
unt r
ate is 2.70% (
202
1
: 2.00%
).
2.
At 31 Ma
rch 2022, the a
ss
ume
d rat
e of RPI in
ﬂati
on is 3.70% and CPI i
nﬂat
ion 3.
20% (20
21
: R
PI 3.25% a
nd CPI 2.75
%
). Sens
iti
vit
y to a
n inﬂ
atio
n
de
crea
se of 1.0% wa
s not ca
lcu
lated i
n the c
omp
ar
ative p
er
io
d.
12
8
Carclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
24. R
etirement beneﬁt obligations
continued
The sensitivities shown above are approximate
. Eac
h sensitivit
y considers one change in isolation. The
inﬂation sensitivity includes
the im
pac
t of cha
nge
s to the a
ssu
mptio
ns for reva
luati
on an
d pe
nsio
n increa
se
s.
The wei
ghted aver
age du
ratio
n of the d
eﬁne
d ben
eﬁt ob
ligat
ion at 31 Ma
rch 20
22 is 15 years (20
21
: 15 y
ear
s)
.
The li
fe ex
pe
ct
anc
y a
ssu
mptio
n at 31 March 20
22 is b
a
sed u
pon i
ncrea
sing t
he ag
e ratin
g as
sumpt
ion by 1 year (202
1
: 1 yea
r)
.
Ot
her t
han th
ose s
pe
ciﬁca
lly me
ntio
ned a
bove, ther
e were no cha
nge
s in the m
etho
ds a
nd a
ssu
mptio
ns us
ed in p
repa
rin
g the
sensitivit
y analysis from the prior year
.
The hi
sto
r
y of the S
chem
e’
s deﬁci
ts a
nd ex
pe
rie
nce gai
ns an
d los
se
s is show
n in the fo
llowi
ng ta
bl
e:
202
2
2021
£000
£
000
Pres
ent
v
alu
e
of
f
und
ed
o
blig
ation
(181,7
59)
(204,65
4)
Fair val
ue of s
cheme a
s
set inves
tme
nts
155
,78
0
1
6
7,
3
7
9
Recog
nise
d lia
bili
ty fo
r deﬁn
ed b
eneﬁt o
bli
gatio
ns
(
2
5
,9
7
9
)
(
3
7,
2
7
5
)
Act
ual
retur
n
o
n
sch
eme
a
sset
s
(3,
5
0
4)
2
,9
0
0
Act
uar
ial g
ain
s due to cha
nge
s in dem
ogr
ap
hic a
ssu
mptio
ns
1,
767
6
,72
7
Act
uar
ial g
ain
s/
(los
ses) due to cha
nge
s in ﬁna
ncial a
s
sumpti
ons
13,
476
(
12,
2
8
0
)
25. Pro
visions
2022
2
021
Onerous
S
ite
O
nerous
Site
contract
closure
T
ota
l
cont
rac
t
clo
sure
T
otal
£000
£000 £000
£000
£
000
£000
Provisi
ons at th
e st
ar
t o
f the year
— — —
—
23
23
Provisi
on es
ta
bli
she
d in the p
er
iod
87
—
87
—
—
—
Provisi
ons u
sed i
n the p
eri
od
— — —
—
(2
3)
(2
3)
Provi
si
on
s at t
he en
d of t
he yea
r
87
—
87
—
—
—
Non
-curre
nt
— — —
—
—
—
Current
87
— 87
—
—
—
87
—
87
—
—
—
Provisi
on ha
s be
en ma
de at 31 March 2022 for a los
s-ma
ki
ng cus
tome
r contr
act i
n China
.
26.
T
rade and other pa
yables – f
alling due within one y
ear
202
2
2021
£000
£
000
T
rade
payables
13
,
3
99
8,6
14
Ot
her t
a
xe
s and s
ocia
l se
curit
y co
st
s
1,
20
4
2,03
8
Ot
her
credi
tor
s
2
,07
1
1,7
28
Accru
al
s
4,3
88
4,63
6
2
1,0
62
17
,016
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
129
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
27
. Ordinary share capital
Ordinary shares of 5 pence each
Number
of
shares
£
000
Iss
ued a
nd f
ully pa
id at 31 Ma
rch 20
2
1
73,
4
1
9
,
1
93
3,6
71
Is
su
ed a
nd fu
lly p
ai
d at 31 Ma
rc
h 2022
73,41
9
,
193
3,6
71
The
re are 15,
97
4 veste
d sha
res ou
ts
ta
ndi
ng in re
spe
ct of a b
uyout awa
rd gra
nted to a fo
rme
r Dire
cto
r of the Co
mpa
ny
. The
se a
re
yet to be is
sue
d.
The
re are 1,5
1
7
,37
6 potenti
al sha
re opt
ions o
ut
st
and
ing un
der t
he pe
r
form
ance s
hare p
lan at 31 Ma
rch 20
22 (20
21
: 1
33,000)
.
The 133,
00
0 share o
ptio
ns out
s
ta
ndin
g at 31 March 20
21 fail
ed to ves
t on 31 July 202
1 an
d hence l
aps
ed.
Ou
ts
ta
ndin
g award
s unde
r the p
er
for
ma
nce sha
re pla
n are a
s foll
ows:
D
ate
N
um
be
r
of
Ea
rli
es
t
d
ate
gr
ant
ed
sha
re
s
P
ric
e
of
ve
sti
ng
Per
for
man
ce share p
lan
5 Aug
ust 202
1
1
,5
1
7
,37
6
nil
5 Augu
st 202
4
Cond
itio
nal s
hare awa
rds have be
en gr
ante
d to Ex
ecuti
ve Dire
ctor
s a
nd se
nior m
anag
er
s wit
hin the G
roup u
nde
r the Ca
rclo p
lc
20
1
7 Per
form
ance S
hare Pl
an (the “P
SP
”). In addit
ion, a nu
mbe
r of mana
ger
s have be
en gra
nted co
ndit
iona
l ca
sh awa
rds li
nked to
the f
uture v
alu
e of Ca
rclo plc s
hare
s, whi
ch als
o fal
l with
in the s
cop
e of IFRS 2 Sh
are
-ba
se
d Payment
s.
The ve
stin
g cond
itio
ns for th
e out
st
an
din
g ca
sh an
d equ
it
y award
s are li
nked to conti
nued e
mpl
oyment a
nd s
atis
fac
tio
n of
market
-b
ased an
d non-market
-ba
sed per
forma
nce c
onditions.
As re
quir
ed und
er IFR
S 2, a charge is re
cogn
ise
d for the co
ndi
tion
al sha
re award
s an
d condi
tion
al ca
s
h awards g
ran
ted und
er th
e
PSP
, and aw
ards a
re val
ued u
sing a M
onte C
ar
lo mo
del a
nd a Bl
ack-
Sch
ole
s mod
el. Add
itio
nal awa
rds gr
ante
d to E
xecut
ive
Dire
cto
rs a
re sub
jec
t to a t
wo-year p
os
t
-vesti
ng ho
ldin
g per
io
d app
lica
bl
e to the p
os
t
-ta
x nu
mbe
r of sha
res acqu
ired o
n vest.
For the
se awa
rds, a di
scoun
t for lack of ma
rket
abi
lit
y (“DLOM”) ha
s be
en c
alcul
ated usi
ng a Fin
ner
t
y mo
de
l.
The f
air va
lue p
er sh
are of th
e award
s unde
r the p
er
for
ma
nce sha
re pla
n gra
nted in t
he year is a
s fo
llows:
2022
2
021
Ca
sh
Cash Equity Equity
Restricted
Restricte
d
award award
award a
ward
equity
award
equity
award
No
Per
fo
rm
an
ce sha
re p
lan
T
SR E
PS
T
S
R EP
S
TS
R E
PS
awa
rd
Numb
er of s
hare
s per t
ran
che
293,621
293,
62
1
3
98,75
4
39
8,75
4 100,079 10
0,079
n
/a
Fair val
ue at gr
ant date
8.
9p 20.4
p 30.
4p
41
.6p
21.4p
29
.3
p
n
/a
Sha
re pr
ice at gra
nt date
41.
6
p
41.
6
p
41.
6
p
41.
6
p
41.
6
p
41
.6
p
n
/a
E
xercis
e pri
ce
0.0
p 0.0p
0.0p 0.0
p 0.0
p 0.0
p
n
/a
Ris
k-
fre
e rate
0
.16%
0
.16
%
0
.16
%
n
/a
0
.1
6%
n
/a
n/a
E
xp
ec
ted vo
latili
t
y
108.96
% 108.96
% 108.9
6
%
n/
a 108.
96
%
n/a
n/a
Ex
pec
ted dividend yield
0% 0% 0% 0% 0% 0%
n
/a
Res
tric
ted e
qui
ty aw
ards a
re subj
ec
t to a t
wo-year p
os
t
-vesti
ng ho
ldin
g per
iod.
The e
quit
y a
nd res
tr
icte
d equ
it
y award
s iss
ued u
nder t
he pe
r
for
man
ce share p
lan o
n 5 Augu
st 202
1 have a split p
er
fo
rma
nce
cond
itio
n whe
reby hal
f of the awa
rds wou
ld ves
t af
ter t
hree year
s ba
s
ed on p
er
fo
rma
nce comp
are
d to tota
l share
hol
der re
turn
(“TSR”) a
nd th
e rema
inin
g hal
f would ve
st ba
s
ed on ea
rni
ngs p
er sha
re (“EPS”) per
form
ance. 100% of the awa
rds su
bje
ct to th
e
TSR p
er
for
man
ce condi
tio
n will ves
t wh
ere the C
ompa
ny’s av
era
ge sha
re pr
ice dur
ing th
e 30 days p
rio
r to vest (the “
Mea
sure
ment
Perio
d”) is at l
ea
st 90 p
ence a
nd 0% if th
e average i
s lower th
an 71 pe
nce. 5% will vest fo
r each who
le p
enny that th
e sha
re pri
ce
dur
ing th
e mea
sure
ment p
eri
od e
xceed
s 70 pence. Ca
sh awa
rds are s
ubje
ct to a c
ap on t
he qua
ntum of c
a
sh whi
ch can b
e pa
id
which i
s equa
l to the n
umbe
r of sha
res un
der
pinn
ing th
e award m
ultip
lie
d by 90 pen
ce. 1
00% of award
s subj
ec
t to the EPS
cond
itio
n will ve
st in f
ull if C
arclo p
lc’s EPS for the ﬁ
nanci
al year e
ndin
g 31 March 20
24 is at leas
t 8.0 pence. 5% of the sh
ares
subj
ec
tto the EPS p
ar
t of t
he awa
rd would ve
st for ever
y 0.
1 pen
ce above 6.0 pen
ce.
The
re wa
s no is
sue of sh
are opt
ions d
uri
ng the p
er
iod e
nde
d 31 March 20
21
.
The e
xp
ec
ted vol
atilit
y is b
a
sed o
n the hi
sto
ric
al volat
ilit
y (calcul
ated ba
se
d on th
e weighte
d averag
e rema
inin
g life of th
e sha
re
opti
ons)
, adju
ste
d for any ex
p
ec
ted chan
ges to f
utu
re volatil
it
y due to p
ubli
cly avail
abl
e infor
matio
n.
The a
mou
nts re
cogni
sed i
n the in
come s
tate
ment a
ris
ing fr
om equ
it
y-set
t
led s
hare
-ba
s
ed paym
ents w
as a ch
arge o
f
£0
.05
9milli
on (20
21
: charg
e of £0
.0
26 million)
.
13
0
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
27
. Ordinary share capital
continued
Ordinary shares of 5 pence each
continued
The nu
mbe
r and we
ighted aver
age e
xercis
e pri
ce of the o
uts
ta
ndi
ng awa
rds und
er th
e PSP a
nd bu
y out awa
rds a
re set o
ut in th
e
follo
wing table
:
2022
2
021
Weighted
Weighted
average
averag
e
exerc
ise
exe
rci
se
pri
ce N
um
ber
p
ri
ce Nu
mbe
r
pence
of shares
pen
ce
of sh
are
s
Ou
ts
ta
ndin
g
at
1
Ap
ril
—
1
4
8
,
9
74
—
2
46,
333
La
pse
d
dur
ing
the
pe
rio
d
—
(20
0,
532)
—
(97
,
3
59)
E
xercis
ed
d
urin
g
th
e
pe
rio
d
—
—
—
—
Gr
anted
dur
ing
the
pe
rio
d
—
1,584,908
—
—
Outstanding at the end o
f the period

1,
5
3
3,
3
5
0
—
1
4
8,
97
4
E
xercis
abl
e
at
31
M
arch
1
5
,
9
74
—
Weighted aver
age rem
ain
ing cont
rac
tua
l life at 31 Ma
rch
2.35
ye
ars
0 ye
ar
s
28. R
eserves
T
r
anslation reserve
The tr
an
slati
on res
er
ve comp
ris
es a
ll forei
gn excha
ng
e dif
fere
nces a
ris
ing f
rom the t
ra
nslati
on of th
e ﬁnan
cial s
tate
ment
s of
foreig
n ope
rati
ons th
at are not i
ntegr
al to th
e ope
ratio
ns of th
e Comp
any
, a
s well a
s f
rom th
e tra
nslat
ion of li
abil
itie
s that he
dg
e
the Company’
s net in
vestment in a f
oreign subsidiar
y
.
R
etained earnings
Net
te
d agai
nst r
eta
ine
d ear
ning
s is the co
st of ow
n share
s hel
d by the G
roup. The Co
mpa
ny maint
ai
ns an e
mployee s
hare
owne
rs
hip pla
n for th
e be
neﬁt of e
mployee
s an
d which c
an b
e use
d in conju
nc
tion w
ith a
ny of the Gro
up’s share opti
on sch
eme
s.
As at 31Ma
rch20
22 th
e pla
n hel
d 3,0
7
7 sha
res (20
21
: 3,0
77 sh
are
s
)
.
29
. Financial instruments
The G
roup’s ﬁnancia
l ins
tru
ment
s comp
ris
e ba
nk loa
ns a
nd overdr
af
ts, c
a
sh an
d sho
r
t
-term d
epo
sit
s. The
se ﬁna
ncia
l ins
tru
ment
s
are u
sed fo
r the p
urp
ose of f
und
ing th
e Grou
p’
s ope
ratio
ns. In a
ddit
ion, th
e Grou
p ha
s other ﬁ
nancia
l ins
tr
umen
ts su
ch as t
rad
e
receivables, trade payables and lease liabilitie
s which
arise direc
tly from its operational activities.
The G
roup is e
xp
os
ed to a ra
ng
e of ﬁnan
cial r
isk
s a
s par
t of it
s day-to-d
ay activ
itie
s. The
se in
clud
e credi
t risk
, intere
st r
ate ris
k,
liquidity risk an
d foreign
currency risk.
a) Credit risk
Credi
t ris
k is the r
isk of ﬁ
nancia
l lo
ss to th
e Group i
f a custo
mer o
r ﬁna
ncial i
nst
itut
ion f
ail
s to meet i
ts co
ntrac
tua
l ob
ligati
ons.
The G
roup’s credit r
isk is m
ainl
y at
trib
ut
abl
e to it
s trad
e recei
vab
les w
hich th
e Grou
p miti
gates by way of credi
t insu
ra
nce. Credit
insu
ra
nce, covering in
so
lvenc
y
, def
ault a
nd p
oli
tica
l ris
k, is s
oug
ht for al
l custo
mer
s wh
ere ex
po
sure is i
n exces
s of £0
.0
2 milli
on.
The a
mou
nts sh
own in th
e ba
lance s
hee
t are af
te
r mak
ing du
e provis
ion fo
r any dou
bt
ful de
bts.
The G
roup ma
int
ain
s any sur
plu
s ca
sh ba
lan
ces on d
epo
sit a
ccount
s or le
gal of
f
se
t account
s wit
h the G
roup’s princip
al b
ank
, which
ha
s a high cre
dit r
ating a
s
signe
d by ind
epe
nde
nt inter
nation
al cred
it rat
ing ag
encie
s. In ad
diti
on, the G
roup h
as u
ndraw
n revolvi
ng
credi
t facil
itie
s of £nil at 31 Ma
rch 20
22 (20
2
1
: £1
.5 m
illio
n
).
The ma
x
imum e
xp
osu
re to credi
t ris
k as at 31 Ma
rch wa
s:
202
2
2021
£000
£
000
T
ra
de rece
ivab
les
, net of at
tr
ibu
ta
ble im
pai
rme
nt provis
ion
s (
see n
ote 1
9)
14
,7
92
15,4
9
6
Ca
sh a
nd ca
sh d
epo
sit
s (see note 20)
1
2,34
7
15,
485
Contr
ac
t
a
ss
ets
(
se
e
note
18)
7,
7
0
0
2,8
98
3
4,839
3
3,87
9
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
131
Ca
rclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
Ca
rclo is a wor
ldw
ide su
ppl
ier of com
pon
ent
s and s
ys
tems. A
s a con
seq
uence, th
e Group’s trad
e recei
vab
les a
nd cont
rac
t a
sse
ts
resi
de acro
ss a bro
ad sp
ec
trum o
f countr
ies w
ith p
otentia
lly hig
her at
tr
ibu
ta
ble cre
dit r
isk i
n cer
ta
in ter
ri
torie
s. Th
e follow
ing
ta
ble
s ana
lys
e the g
eo
gra
phic
al lo
cati
on of tr
ade re
ceiva
bl
es (net of att
rib
ut
abl
e impa
ir
ment p
rovisio
ns) and of cont
rac
t a
sse
ts:
202
2
2021
£000
£
000
United
Kingdom
6,
59
9
2,
34
0
Res
t
of
Euro
pe
1
,1
6
6
3
,1
3
5
Nor
th
America
4
,
427
6,291
Res
t
of
wo
rld
2,60
0
3,7
3
0
T
rade
receivables, net
of a
ttributable impairment pro
visions
14,
792
15
,4
96
United
Kingdom
1,
316
1
,
333
Res
t
of
Euro
pe
2
,1
6
6
47
9
Nor
th
America
4
,2
18
4
63
Res
t
of
wo
rld
—
623
Contract
assets, net of
attributable impairment
prov
isions
7,
7
0
0
2,
898
b
) Interest r
ate risk
The G
roup’s borrow
ing
s are on ﬁ
xed a
nd ﬂo
ating r
ate ter
ms. The i
nteres
t char
ge bo
rne by th
e Gro
up in the yea
r to 31 March 2022
wa
s at a level com
par
ab
le wi
th the p
rio
r year
.
The in
teres
t rate pro
ﬁle of ﬁn
ancia
l lia
bili
ties by cur
renc
y of the G
roup a
s at 31 Ma
rch wa
s as fo
llows:
Fixed
Floating
Non-intere
st
rate
interest
rate
interest
bearing
payable
pa
yable
pay
able
T
otal
£000 £
000 £
000 £000
As at 31 M
ar
ch 202
2
Sterling
4,422
1
9
,
46
4
—
23,886
US
d
olla
r
4,839
10,
146
—
14,
985
Eur
o
8
6
4,
150
—
4,236
Ot
her
1,64
5
—
—
1,645
10,
992
33,7
60
—
44,752
As at 31 Ma
rch 20
21
Sterl
ing
3,7
30
1
9
,
954
—
23,684
US do
llar
3,583
9
,6
72
—
1
3,2
55
Euro
14
9
4,
18
7
—
4,336
Ot
her
1,806
—
—
1,806
9
,268
33,81
3
—
4
3,081
The in
teres
t rate pro
ﬁle of ﬁn
ancia
l a
sset
s by curre
ncy o
f the G
roup a
s at 31 March wa
s a
s foll
ows:
Floating
rate
interest
No
interest
receivable
receivable
T
otal
£000
£000
£000
As at 31 M
ar
ch 202
2
Sterling
2
,048
873
2,92
1
US
d
olla
r
3,058
632
3,690
Eur
o
214
1,
418
1,6
32
Ot
her
1
4
,1
0
3
4
,1
0
4
5,
321
7
,026
12,3
47
132
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
29
. Financial instruments
continued
b
) Interest r
ate risk
continued
Floa
ting
r
ate
i
nte
res
t
(p
ayab
le)/
No
int
ere
st
re
ceiva
ble
r
eceiva
ble
T
otal
£000
£
000
£
000
As at 31 Ma
rch 20
21
Sterl
ing
(1
,4
2
4)
251
(1
,
1
73
)
US
d
olla
r
9
,2
72
95
9
,36
7
Euro
991
1,
979
2,
97
0
Ot
her
797
3,52
4
4,32
1
9
,636
5,849
15,485
The ﬂ
oatin
g rate of inte
res
t earn
ed on c
a
sh ba
lan
ces is in t
he ra
nge b
ank b
a
se -
1
% to b
ank b
as
e +
2%.
The G
roup ha
s a ne
t UK mul
ti-
curre
ncy overd
raf
t f
acilit
y w
ith a £nil n
et lim
it an
d a £1
2.5 m
illio
n gros
s limi
t agree
d a
s par
t of the
reﬁna
ncing a
rr
ang
eme
nt sign
ed on 14 Augus
t 20
20. The overdraf
ts b
ear in
teres
t at bet
we
en 2.0% and 4.5% above preva
ilin
g ba
nk
ba
se r
ates. At 31 March 2022, Carclo p
lc’s overdraf
t of £
2.4 millio
n (20
21
: £
4.6 millio
n
) ha
s be
en reco
gnis
ed wi
thin c
as
h an
d ca
sh
deposits when consolidated
.
c) Liquidity risk
Liqui
dit
y r
isk is t
he ri
sk that th
e Grou
p will n
ot be ab
le to me
et it
s ﬁna
ncial o
bli
gatio
ns a
s they fa
ll du
e. The Grou
p mana
ges t
his ri
sk
by main
ta
ining a m
ix
tu
re of ter
m loa
ns, revolv
ing cre
dit fa
cilit
ies a
nd sh
or
t-
term overd
raf
t f
acili
ties w
hich have be
en es
ta
bli
she
d to
ens
ure that ad
equate f
und
ing is ava
ilab
le for i
ts o
per
ating, i
nvesti
ng an
d ﬁnan
cing ac
tiv
itie
s. Refer to note 2
2 for fu
r
the
r det
ail
s.
As d
eta
ile
d in note 2
2, at 3
1 Ma
rch 20
22 the G
roup h
ad a commi
t
ted ter
m loa
n ou
ts
ta
ndin
g of £30.3 m
illio
n (20
20
: £32.
1 millio
n
), a
commi
t
ted revol
ving cre
dit f
acilit
y ava
ila
ble of £
3.5 mill
ion w
hich is £3.
5 milli
on dr
awn (20
2
1
: £3.5 mil
lion f
acili
t
y
, £2 m
illio
n draw
n
)
and U
K net overd
raf
t f
acilit
ies tot
all
ing £ni
l (2
02
1
: £ni
l), repayab
le on d
ema
nd.
The G
roup’s net debt at 31 Ma
rch 20
22 wa
s £32.405 milli
on (20
21
: £27
.59
6 milli
on)
. Th
e net d
ebt comp
ris
ed £44.75
2 milli
on
intere
st-bear
ing l
oa
ns an
d bor
rowin
gs (see note 22) les
s £1
2.3
4
7 mill
ion c
as
h and c
a
sh dep
osi
ts (see n
ote 20
)
.
The G
roup’s term lo
an an
d revolvi
ng cred
it faci
liti
es are ava
ila
ble i
n the U
K; net overd
raf
t f
acilit
ies ava
ilab
le in t
he UK tot
all
ed £ni
l at
31 March 202
1 and, a
s such, th
e plc overd
raf
t at yea
r end of £
2.4 millio
n ha
s bee
n pres
ente
d net aga
ins
t ca
sh a
nd ca
s
h dep
osit
s.
The G
roup p
er
for
ms a de
ta
iled, we
ekl
y
, rol
ling 13-week c
as
h ﬂow fore
ca
st to h
elp ma
nag
e its s
hor
t-term liq
uidi
t
y risk
. Add
itio
nall
y
,
the B
oard m
oni
tor
s a mont
hly t
welve
-mo
nth Gro
up ca
sh ﬂ
ow forec
as
t, com
par
ing i
t to intern
al t
arge
ts a
nd covenant
s an
d
thresholds est
ablished with the Group’
s bankers.
The mat
uri
t
y of ﬁnan
cial li
abil
itie
s of the G
roup a
s at 31 Ma
rch was a
s fo
llows:
Gove
rnm
ent
Revo
lvi
ng
T
erm
COVID-
19
credit
Other
Lease
loa
n
support
loans
facility
loa
ns
lia
bilities
T
otal
£000 £000
£000
£000 £
000 £
000
As at 31 M
ar
ch 202
2
Wit
hi
n 1 yea
r
1,331
—
—
70
1,54
6
2
,
9
47
Wit
hi
n 1 to 2 yea
r
s
28
,
929
—
3,
500
43
1,5
82
34,0
54
Wit
hi
n 2 to 5 yea
r
s
—
—
—
9
6,
16
7
6,
17
6
Mo
re t
ha
n 5 yea
rs
—
—
—
—
1,575
1
,575
30,260
—
3,
50
0
122
10,87
0
4
4,752
Gover
nme
nt
Revolv
ing
T
er
m
COVID
-1
9
cr
edi
t
O
th
er
Lea
se
l
oan
supp
or
t
lo
ans
fac
ili
ty
lo
an
s
liab
ili
ti
es
Tota
l
£000
£
000 £
000
£000
£
000 £
000
As at 31 Ma
rch 20
21
Wit
hin 1 year
1
,4
73
2,
104
—
40
1
,46
7
5,084
Wit
hin 1 to 2 year
s
1,2
73
—
—
4
2
1
,49
4
2,809
Wit
hin 2 to 5 year
s
29
,066
—
2,000
28
2,
990
3
4,
08
4
Mor
e than 5 yea
rs
—
—
—
—
1
,
104
1
,
104
31,
81
2
2,
1
04
2,
00
0
1
10
7
,
055
43,081
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
133
Carclo plc
Annu
al re
por
t a
nd a
ccount
s 2022
d) F
oreign currency risk
The G
roup ha
s a num
ber o
f overs
ea
s subs
idia
r
y ope
rati
ons. T
he ma
jor over
sea
s sub
sid
iar
ies a
re loc
ated in t
he Uni
ted St
ates,
France, the C
zech Rep
ubl
ic, China a
nd In
dia. H
ence, the b
ala
nce sh
eet of t
he Gro
up ca
n be af
fe
cte
d by the ap
pli
cab
le conver
sio
n
rates
, the s
terl
ing/U
S dol
lar e
xchan
ge rate in p
ar
t
icula
r
. It i
s the Gr
oup’s polic
y to hed
ge th
e ef
fec
t of such s
tr
uct
ura
l curre
ncy
ex
po
sures by havi
ng bo
rrowi
ngs in t
he ap
pro
priate cur
renci
es wh
ere it i
s consi
dere
d ef
ﬁcient to d
o so. A loa
n of US$1
3.3 mill
ion
(20
21
: US$1
3.
3 milli
on) is desig
nated a
s th
e hed
ging i
nst
rum
ent aga
ins
t forei
gn curre
ncy e
xp
osu
res in t
he net i
nvestm
ent in th
e
tra
ding s
ubsi
diar
ies i
n the U
nited St
ates. A l
oan of €4.
9 m
illio
n (20
21
: €4
.
9 m
illio
n
) is de
sign
ated a
s the h
edgi
ng ins
tr
ume
nt agai
nst
foreign c
urrency ex
posures in the net in
vestment in the E
uropean operations. Under this hedge accounting
, foreign
exchange
gai
ns an
d los
ses o
n non
-
GBP l
oan
s are re
cogni
sed, n
ot in the in
come s
tate
ment, b
ut in oth
er com
preh
ensi
ve incom
e.
In ad
diti
on, the G
roup is s
ubje
ct to t
ran
sac
tio
nal fo
reign cur
ren
cy ex
po
sure
s ar
isin
g from th
e sa
le a
nd purcha
s
e of go
ods a
nd
ser
v
ices i
n curren
cy oth
er tha
n the Co
mpa
ny’s loca
l curre
ncy
. Histo
ric
all
y
, it ha
s b
een t
he Gro
up’
s po
lic
y to hed
ge su
ch ex
pos
ure
whe
re the n
et ex
po
sure in a
ny one cur
renc
y exce
eds a
n es
timate
d £20,
00
0 on a
ny day using fo
r
ward co
ntra
ct
s. However
, with
in
the U
K op
erati
ons o
ppo
r
tun
itie
s have bee
n ex
ploi
ted to nat
ura
lly he
dge i
nﬂows in cu
rren
cy wi
th sim
ilar o
ut
ﬂow
s. It is th
e Group’s
po
licy n
ot to und
er
t
ake any sp
eculati
ve tra
nsa
cti
ons.
The f
air va
lue o
f the for
w
ard cont
rac
ts at t
he st
ar
t an
d end of t
he ﬁna
ncial yea
r wa
s immate
ria
l. The ca
sh ﬂ
ows a
ss
ociated w
ith th
e
forwa
rd c
ontract
s are summarised as follows:
2022
2
021
Less
than
6 – 12
Le
ss t
ha
n
6 – 12
6 months
month
s
6 mo
nth
s
m
on
ths
£000 £000
£
000 £
000
As
set
s
825
—
1
,6
4
4
—
Liabili
ties
—
—
—
—
825
—
1,64
4
—
The b
ala
nce sh
eet ex
p
osure to cur
renc
y at the yea
r end a
ris
ing f
rom tr
adin
g act
ivit
ies is i
llus
trate
d in th
e follow
ing a
naly
sis by
currency of the Group
’
s trade receivables and trade payables:
S
te
rl
ing
U
S do
ll
ar
Eur
o
Ot
he
r
Tota
l
£000 £000
£000
£000
£000
As at 31 M
ar
ch 202
2
T
ra
de rece
ivab
les
, net of at
tr
ibu
ta
ble im
pai
rme
nt provis
ion
s
6,
520
4,832
1
,4
6
1
1,
979
14,792
T
rade
payables
(4,482) (
6,856)
(81
3
)
(1
,2
48)
(13
,
3
9
9)
Net
2
,038
(2
,024)
6
48
731
1,3
93
As at 31 Ma
rch 20
21
T
ra
de rece
ivab
les
, net of at
tr
ibu
ta
ble im
pai
rme
nt provis
ion
s
4,05
9
6,550
2,460
2,4
27
1
5,4
96
T
ra
de
p
ayabl
es
(2,
06
4
)
(4,
1
43)
(1
,
7
00)
(70
7)
(8,6
1
4)
Net
1,
995
2,40
7
760
1
,
720
6,88
2
The fo
llowi
ng ta
bl
e summa
ri
ses t
he ma
in excha
nge r
ates u
sed d
urin
g the yea
r:
Reporting date
Av
erage
rate
mid-mark
et
rate
202
2
2021
2022
2
021
Sterli
ng/US
do
llar
1.3
5
1.
3
1
1.
32
1
.38
Sterling/
euro
1
.1
8
1
.1
2
1
.19
1
.1
8
Sterl
ing/Czech
korun
a
2
9.
8
0
2
9.
8
2
8
.9
6
3
0
.7
Sterling/
Chinese
yuan
8
.
76
8.85
8.
34
9.
0
4
Sterl
ing/I
ndia
n
ru
pee
101.
78
9
7.1
9
9.
8
3
1
01.
0
13
4
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
29
. Financial instruments
continued
d) F
oreign currency risk
continued
F
air values
The f
air va
lue i
s the a
moun
t at which a ﬁna
ncia
l ins
tru
ment co
uld b
e excha
nge
d in an a
rm’s lengt
h tra
ns
act
ion b
et
ween t
hird
par
tie
s. Whe
re avail
abl
e, market va
lue
s are u
sed to d
eter
mine f
air va
lue
s, othe
r
wis
e fai
r valu
es a
re cal
culated by di
scou
nting
ex
pe
cte
d ca
sh ﬂow
s at preva
iling i
nteres
t an
d excha
nge r
ates. Th
e fa
ir val
ue of th
e der
ivative
s and ﬁ
nan
cial in
str
ume
nts wa
s not
mater
iall
y dif
fere
nt to the b
oo
k valu
e at 31 March 2022 and 31 Ma
rch 20
21
. Un
recog
nise
d an
d defer
red ga
ins a
nd lo
ss
es in re
spe
ct
of der
ivati
ves an
d ﬁnan
cial in
st
rum
ents at 31 Ma
rch 20
22 were i
nsig
niﬁc
ant.
Hedges of net in
v
estments in foreign oper
ations
The G
roup ha
s ne
t invest
ment
s in fore
ign op
erat
ion
s in it
s subs
idia
rie
s in No
r
th Am
er
ica, Fra
nce, the C
zech Repu
bli
c, China an
d
Ind
ia, a
s det
ail
ed in n
ote 3 Seg
ment re
por
tin
g – Ana
lysi
s by geo
gra
phic
al s
egm
ent.
A foreign
currency exp
osure arises from the Group’
s net inv
estment
s in subsidiaries with foreign c
urrencies i
.e
. functional
curre
ncies ot
her th
an s
terli
ng. The r
isk a
ris
es f
rom the ﬂ
uc
tuatio
ns in s
pot excha
ng
e rates b
et
ween t
hes
e forei
gn curre
ncies a
nd
ste
rlin
g (in pa
r
ticula
r the s
ter
ling
/US do
llar e
xchan
ge r
ate
), which cau
ses t
he am
ount of t
he Gro
up’
s net i
nvestm
ent to va
r
y whe
n
tra
ns
lated into
ster
lin
g.
Par
t o
f the Gro
up’s net investm
ent
s in the
se over
sea
s su
bsid
iar
ies a
re he
dge
d by foreign cur
ren
cy de
nom
inated, se
cured b
ank
loa
ns, a
s det
ai
led i
n note 22 Loa
ns an
d bo
rrowin
gs. Th
is mit
igates t
he forei
gn curre
nc
y risk
s a
risi
ng fro
m the su
bsi
diar
y
’s net
a
sset
s. Th
e loa
n is de
signate
d a
s a hed
ging i
nst
rum
ent for th
e chan
ges i
n the va
lue of t
he net inve
stm
ent
s that are at
t
ribu
ta
bl
e to
chan
ges i
n the sp
ot excha
nge r
ates.
A summ
ar
y of th
e Gro
up’
s hed
ges o
f net inves
tme
nts in fo
reign o
per
atio
ns is a
s foll
ows:
2022
2
021
Loans
and
Carr
ying amount
Loans and
Carrying amount
borrowings
Assets Liabilities
borrowin
gs
Assets Liabilit
ies
£000 £000
£000
£000
£
000 £
000
US
d
olla
r
10,
146
48,
1
1
2
(20,845)
9
,6
71
40,082
(1
4,
909)
Eur
o
4,
150
1,888
(647)
4,
187
2,
32
5
(1,010)
Other
currencies
—
33,7
40
(8,465)
—
3
0,782
(7
,782
)
T
o assess hedge effectiveness,
the Grou
p det
ermines the ec
onomic r
elationshi
p between the
hedging instrument
and the hedged
item by com
par
ing cha
ng
es in th
e ca
rr
yin
g am
ount of th
e debt t
hat is at
tr
ibut
ab
le to a cha
nge i
n the sp
ot rate wi
th chan
ge
s in the
invest
ment i
n the fore
ign op
er
ation d
ue to movem
ents i
n the s
pot rate (the of
f
se
t meth
od). The Grou
p’
s pol
icy i
s to hed
ge th
e net
invest
ment o
nly to th
e ex
ten
t of the d
ebt pr
incip
al.
Dur
ing t
he year a pr
oﬁt of £0
.44 m
illi
on wa
s reco
gnis
ed on t
hes
e he
dgin
g ins
tru
ment
s wit
hin othe
r comp
rehe
nsive in
come.
Dur
ing t
he year th
ere ha
s be
en no h
edg
e inef
fe
ct
ivene
ss re
cogni
sed i
n proﬁt o
r los
s.
In ma
nagin
g intere
st r
ate and cu
rren
cy ri
sk
s the G
roup a
ims to re
duce th
e impa
ct of s
hor
t-term ﬂuc
tuat
ions o
n the G
roup’s
ear
ning
s. Over t
he lo
nge
r term, howeve
r
, p
erm
ane
nt chan
ges in fo
reign e
xchan
ge a
nd intere
st r
ates wou
ld have an im
pac
t on
cons
oli
dated ea
rnin
gs. In t
he year e
nde
d 31 March 20
22, it is e
st
imated t
hat a gen
era
l increa
se o
f one p
ercent
age p
oint i
n intere
st
rates wo
uld have de
crea
sed t
he Gro
up’
s proﬁ
t before t
a
x by a
pprox
imate
ly £0
.3
4
2 mill
ion (20
21
: £0.31
8 m
illio
n de
creas
e
).
It is e
stim
ated that a g
ene
ra
l increa
se of 10% in the v
alu
e of ster
lin
g agai
nst t
he ab
ove-n
oted ma
in curre
ncie
s would have
decre
as
ed th
e Grou
p’
s proﬁt b
efore t
a
x by ap
prox
imatel
y £0
.8 milli
on for th
e year en
ded 31 Ma
rch 20
22 (20
21
: £0
.
7 mill
ion
decre
as
e
) which i
s det
ail
ed by curre
nc
y in the fo
llowi
ng ta
bl
e:
202
2
2021
£000
£
000
US
d
olla
r
3
67
38
4
Eur
o
15
43
Cze
ch
korun
a
39
57
Ot
her
403
2
29
82
4
7
13
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
13
5
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
Capital risk management
The c
api
ta
l str
uc
ture of t
he Gro
up cons
ist
s of net d
ebt (compri
sing b
or
rowing
s a
s det
ail
ed in note 2
2 of
f
set by ca
sh a
nd ba
nk
ba
lance
s
) an
d equi
t
y of the G
roup (compr
isin
g issu
ed sha
re ca
pit
al, re
ser
ve
s and r
eta
ine
d earn
ing
s as d
eta
ile
d in the s
t
atement o
f
chan
ges i
n equi
t
y
).
The G
roup’s objec
tive
s whe
n mana
ging c
api
ta
l are to s
afeg
uard th
e Grou
p’
s abi
lit
y to cont
inue a
s a go
ing con
cern i
n order to
provid
e retur
ns for s
hare
hol
der
s an
d ben
eﬁt
s for othe
r st
akeh
old
er
s and to m
aint
ain a
n ap
prop
riate c
api
ta
l str
uc
ture. In or
der to
mai
nta
in or ad
jus
t the c
api
ta
l str
uc
ture, the G
roup w
ill t
ake into accou
nt the a
mount o
f divi
den
ds pa
id to sha
reho
lde
rs, t
he level o
f
debt a
nd th
e numb
er of sh
ares i
n iss
ue. Clos
e control o
f dep
loyme
nt of ca
pit
al is m
aint
ain
ed by det
a
iled m
anag
eme
nt review
procedures for authorisation of signiﬁcant capital commitments, such as land acquisition, capital ta
rgets for local management
and a s
ys
tem of inte
rna
l intere
st cha
rges, e
nsur
ing c
api
ta
l cos
t impa
ct is u
nde
rs
too
d and co
nsi
dere
d by all ma
nage
ment t
ier
s.
De
cisio
ns reg
ardin
g the b
ala
nce of eq
uit
y an
d bo
rrowi
ngs, di
vid
end p
olic
y an
d all m
ajo
r bor
rowin
g facili
tie
s are re
ser
ve
d for the
Bo
ard.
30
. Cash generat
ed from operations
202
2
2021
£000
£
000
Pro
ﬁt fo
r th
e yea
r
5
,79
9
7,
4
1
2
Adjustments for:
Pensi
on sch
eme con
trib
uti
ons ne
t of cost
s se
tt
led by t
he Comp
any
(
3,
2
58)
(
2
,1
7
9
)
Pensi
on sch
eme cos
t
s set
tl
ed by the S
chem
e
569
910
De
pre
ciatio
n
cha
rge
6,825
5,77
4
Amor
tisation
charge
203
206
E
xceptio
nal g
ain in re
sp
ec
t of retire
ment b
eneﬁ
ts
(85
4)
(6,458)
Conver
sio
n of CO
VID
-
1
9 govern
ment su
ppo
r
t lo
an to gr
ant
(2
,0
87
)
—
Proﬁt
on
b
usi
nes
s
dis
po
sal
(6
93
)
(
1,
2
5
0)
Loss o
n disp
os
al of oth
er pla
nt an
d equ
ipme
nt
—
10
Loss o
n disp
os
al of int
an
gib
le no
n-cur
rent a
ss
ets
—
5
Ca
sh ﬂow re
latin
g to provis
ion for s
ite clos
ure cos
ts
—
(2
3)
Sha
re-
ba
sed
payme
nt
cha
rge
73
1
Fina
ncia
l
in
com
e
(77)
(42)
Fin
anci
al
ex
pense
3,0
66
2
,701
Ta
x
a
t
i
o
n
8
09
45
7
Op
era
tin
g ca
sh ﬂ
ow be
for
e ch
an
ge
s in wor
kin
g ca
pi
ta
l
10,
3
75
7,
5
2
4
Changes in working capital
(Increa
se)
/
de
creas
e
in
inventorie
s
(
3,
8
16)
76
8
Increa
s
e
in
co
ntra
ct
a
sset
s
(4
,7
0
8)
(
1,
49
2)
De
creas
e/
(increa
se) in trad
e an
d other re
ceiva
bl
es
42
(3
08)
Increa
s
e in tra
de an
d other p
ayabl
es
4,
5
49
864
Increa
s
e
in
co
ntra
ct
lia
bilit
ies
338
3,8
4
6
Cash generated
from oper
ations
6
,78
0
11
,
2
0
2
136
Carclo plc
An
nual r
epo
r
t an
d accou
nts 2022
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
31. Financial commitments
202
2
2021
£000
£
000
The D
irec
tor
s have auth
ori
sed t
he fol
lowin
g fut
ure ca
pit
al e
xp
end
iture w
hich is co
ntrac
ted:
94
4
3,572
32. R
elated parties
Identity of related parties
The G
roup ha
s a rel
ated pa
r
t
y relat
ions
hip wi
th it
s sub
sidia
ri
es (see note 33), its D
irec
tor
s an
d execu
tive of
ﬁcer
s, a
nd th
e Grou
p
pen
sio
n sche
me. There a
re no tr
an
sac
tio
ns that a
re requ
ired to b
e dis
clos
ed in re
latio
n to the G
roup’s 60% dorma
nt sub
sidia
r
y
Platform Diagnostics Limited.
Dur
ing t
he year to 31 Ma
rch 20
22, the Gro
up pa
id £0
.
16
9 m
illio
n to Thin
gtr
a
x
, a compa
ny that of
fer
s inte
llig
ent ma
nufa
ctu
rin
g
infr
a
str
uc
ture a
s a se
r
vice. Frank D
oo
renb
osch, a C
arclo p
lc No
n-
Ex
ecuti
ve Dire
ctor, is also a n
on-
exe
cutive of Th
ing
tra
x an
d, as
such, th
e comp
any is id
entiﬁ
ed a
s a relate
d par
t
y
. Du
rin
g the year to 31 Ma
rch 20
22, £0
.
1 mill
ion ha
s b
een re
cogni
sed a
s a co
st in
the in
come s
tate
ment; t
he ba
lan
ce is pre
pai
d and w
ill be r
ecog
nise
d in th
e year to 31 March 2023.
Wit
h ef
fec
t fro
m 6 June 2022, F
ra
nk Do
oren
bos
ch wa
s ap
poi
nted a
s a consu
lt
ant to th
e Grou
p for a pe
rio
d of up to t
welve mo
nths,
and a
ccordin
gly isa
n E
xecut
ive Dire
cto
r for that p
eri
od. It is i
ntend
ed that Fra
nk wil
l rever
t back to b
ein
g a Non
-E
xe
cutive D
irec
tor
of the Co
mpa
ny as s
oon a
s th
e cons
ult
anc
y pe
rio
d ha
s end
ed.
The
re have been n
o othe
r chang
es to rel
ated pa
r
tie
s in th
e year end
ed 31 Ma
rch 20
22.
T
r
ansactions with k
ey management personnel
Key manag
eme
nt per
so
nne
l are con
sid
ered to b
e the E
xe
cutive D
irec
tor
s of the G
roup.
Det
ai
ls of Di
rec
tor
s’ remune
rati
on ca
n be fou
nd in th
e Dire
cto
rs’ rem
uner
atio
n repo
r
t on p
age
s 57 to 75.
Group pension scheme
A third
-pa
r
t
y profe
ssio
nal ﬁr
m is en
gage
d to adm
inis
ter the G
roup p
ens
ion s
chem
e (the Carcl
o Grou
p Pensio
n Sche
me)
.
The a
ss
ociate
d invest
ment co
st
s are b
orn
e by the s
chem
e in full. It h
as b
ee
n agree
d wit
h the tr
us
tees o
f the p
ensi
on sch
eme th
at,
und
er the te
rms o
f the re
cover
y pla
n, the sch
eme wo
uld b
ear it
s own ad
minis
tr
ation co
st
s.
Contr
ibu
tion
s agre
ed wi
th the t
rus
tee
s of the G
roup p
ensi
on sch
eme we
re £0
.292 millio
n per m
onth du
rin
g the year to
31March2022 to incor
por
ate both d
eﬁcit re
cover
y contr
ibu
tion
s and s
chem
e ex
pe
nse
s inclu
ding PPF l
ev
y
. An a
ddit
iona
l
£0
.4millio
n wa
s als
o pa
id und
er th
e sche
dule o
f contr
ibut
ions
. The mo
nthly co
st w
ill rem
ain th
e sa
me in th
e year to 31 March 2023
with additional annual contributions of £
0.35
million agreed.
Ca
rclo incur
red ad
mini
str
ation co
st
s of £1
.2 milli
on dur
ing t
he pe
rio
d which h
as b
ee
n charge
d to the co
nso
lidate
d incom
e
st
ateme
nt, inclu
ding £0.2 milli
on pre
sente
d a
s except
iona
l cos
ts (20
21
: £1
.6 milli
on, of whi
ch £
0.5 milli
on wa
s pre
sente
d a
s
except
iona
l cos
ts)
. Cost
s of £0
.
1 mi
llion we
re incur
red to ma
nag
e the p
lan’s ass
ets; thi
s wa
s recog
nise
d aga
ins
t the p
ens
ion
liab
ilit
y
. Of th
e admi
nis
trati
on cos
ts, £0.6 millio
n wa
s pai
d dire
ctl
y by the sch
eme (202
1
: £0.
9 milli
on)
. T
he tota
l of deﬁ
cit redu
ct
ion
contr
ibu
tion
s and a
dmini
str
atio
n cost
s pa
id by the G
roup d
urin
g the p
eri
od wa
s £3.9 million (202
1
: £
2.8 millio
n
)
.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
137
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
33. Group entities
Control of the Group
The G
roup’s ultimate p
aren
t compa
ny is Ca
rclo pl
c which is i
ncor
por
ated in En
glan
d.
The o
rdina
r
y sha
re cap
it
al of th
e sub
sidia
r
y und
er
t
ak
ing
s is owne
d by the Co
mpa
ny except wh
ere in
dicate
d.
In
vestments in subsidiaries
The G
roup a
nd Com
pany have the fo
llowi
ng inves
tme
nts in s
ubsi
diar
ie
s:
Reg
is
tere
d Pri
nci
pal p
la
ce
Cla
ss o
f
2
022
202
1
Com
pa
ny
of
ﬁce a
ddr
es
s
of bu
sin
es
s
St
atu
s
shar
es he
ld
%
%
Acre Mil
ls (UK
) Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Ar
t
hur Lee & S
ons (Hot Ro
llin
g Mill
s
) Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Aus
tra
lia
n Card Cl
othin
g Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Bru
ntons Ae
ro Prod
uc
ts Lim
ited
1
UK
Ac
tive
O
rdina
r
y
10
0
10
0
Bruntons (Musselburgh
) Limit
ed
2
UK Dor
man
t
Ord
inar
y
10
0
10
0
Br
ymill
Stoc
kholder
s Lim
ited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Ca
rclo Dia
gnos
tic S
olu
tio
ns Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Ca
rclo Gro
up Ser
vice
s Limite
d
1
UK
Ac
tive
O
rdina
r
y
10
0
10
0
Ca
rclo Ho
ldin
g Corp
or
ation
One N
ex
us Way
,
Cayma
n
Ac
tive
Ordi
nar
y
10
0
10
0
Ca
mana B
ay
,
I
slan
ds
Gr
and C
ayman,
K
Y
1-90
0
5
Ca
rclo Ho
ldin
g Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Ca
rclo Inves
tme
nts Lim
ited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Ca
rclo Over
s
eas H
ol
ding
s Limite
d
1
UK
Ac
tive
O
rdina
r
y
10
0
10
0
Ca
rclo T
ech
nica
l Pla
st
ics Lim
ited
1
UK
Ac
tive
O
rdina
r
y
10
0
10
0
Ca
rclo T
ech
nica
l Pla
st
ics Pr
ivate Co. Limite
d
27
A (2
) KIA
DB
Indi
a
Ac
tive
O
rdina
r
y
10
0
10
0
Ind
ust
ria
l Area,
Doddabalap
ur
,
Ban
gal
ore – 56
1
203,
Karnataka
Ca
rclo T
ech
nica
l Pla
st
ics (Mi
tcham) Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Ca
rclo T
ech
nica
l Pla
st
ics (Slo
ugh) Limited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Ca
rclo Zephyr Lim
ited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
CIT T
echn
olo
gy Lim
ited
1
UK
Ac
tive
O
rdina
r
y
10
0
10
0
Critch
ley
, S
har
p & T
etlow Li
mite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Crow
the
r & Gee Li
mite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
CTP Dava
ll Limi
ted
2
UK Dor
man
t
Ord
inar
y
10
0
10
0
CTP Li
chﬁeld L
imite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Ca
rclo Plat
t Ne
der
la
nd BV
1
UK
Active
Ordinar
y
10
0
10
0
CTP S
ille
ck Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
CTP S
ille
ck Scotla
nd Lim
ited
2
UK Dor
man
t
Ord
inar
y
10
0
10
0
CTP W
hite K
night Li
mite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
De
ll Bal
er Lim
ited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Edwin Stead & S
ons L
imite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Fairb
ank B
rear
ley Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Fine
spa
rk (Ho
r
sham) Limite
d
1
UK
Ac
tive
O
rdina
r
y
10
0
10
0
High
ﬁeld M
ills L
imite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Hill
s Die
ca
st
ing Co
mpa
ny Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
13
8
Ca
rclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
NOTES TO THE CONSOLID
A
TED
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
33. Group entities
continued
In
vestments in subsidiaries
continued
Reg
is
tere
d Pri
nci
pal p
la
ce
Cla
ss o
f
2
022
202
1
Com
pa
ny
of
ﬁce a
ddr
es
s
of bu
sin
es
s
St
atu
s
shar
es he
ld
%
%
Hill
s Non Fe
rrou
s Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Hor
s
fal
l & Bick
ham Li
mited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Hor
s
fal
l Card Cl
othin
g Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Ironfo
il
Lim
ited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Joh
n Sha
rp (
Wire) Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
J.
W.
& H. P
lat
t Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Lee of Sh
ef
ﬁel
d Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Lee Sta
inl
ess Ste
el Se
r
vice
s Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Leep
las
Lim
ited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Met
all
ic Ca
rd Clothi
ng Com
pany Lim
ited (
The)
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Nor
s
ema
n (Cabl
es & E
x
tr
usio
ns) Limited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Novo
pl
ex
Lim
ite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Prat
t, Levick a
nd Co
mpa
ny Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Rumbold Securities Limited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Seymour Plastics Limited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
She
f
ﬁeld W
ire Rop
e Comp
any Lim
ited (
The)
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
She
pley I
nvestm
ent
s Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Smi
th Wi
res Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Stati
on Road (U
K) Li
mite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
T
ex
t
ure Roll
ed Lim
ited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Tho
ma
s White & S
on
s Limite
d
2
UK Dor
man
t
Ord
inar
y
10
0
10
0
T
ru
bri
te
Li
mite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
T
ru
-
Gri
t
Lim
ited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Woodco
ck & Bo
oth Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Woodhead
Limited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Y
ork
shire Engineering Supplie
s Limited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
1.
Regi
ste
red of
ﬁ
ce add
res
s is: Un
it 5, Si
lk
wo
od Co
ur
t, O
ss
et
t, Uni
ted K
in
gdo
m, WF5 9TP
2.
Re
gis
tere
d of
ﬁce a
ddre
ss i
s: C/O Bru
nton
s Aero Pr
odu
ct
s, U
nit
s 1-3, Blo
ck 1, Inveres
k, I
ndu
st
ria
l Es
tate, M
uss
el
burg
h, Ea
st Lot
hia
n, EH21 7P
A
R
egi
st
ere
d
P
rin
cip
al p
lac
e
Cla
ss o
f
202
2
2021
Gro
up
of
ﬁce a
dd
res
s
of bu
si
nes
s
St
atu
s
sh
ar
es he
ld
%
%
Ap
ollo Ste
els Li
mite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Ca
rclo France S
AS
40 bi
s Avenue d’Or
lean
s,
Fran
ce
A
cti
ve
O
rdin
ar
y
10
0
10
0
2
8000
, C
hartres
Ca
rclo Se
curit
ies Li
mite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Ca
rclo T
ech
nica
l Pla
st
ics (Br
no) s.r
.o
T
ur
ank
a 98, 62
7
00
0, Brno
C
zech
A
cti
ve
O
rdin
ar
y
10
0
10
0
Repu
bli
c
Ca
rclo US Fin
ance N
o. 2
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Ca
rclo US H
oldi
ngs I
nc
600 De
pot St. Latro
be, P
A. 15650
USA
Ac
tive
O
rdin
ar
y
10
0
10
0
Chap
man
s Spr
ing
s Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
CTP A
lan Li
mite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
CTP C
ar
rera I
nc
60
0 Dep
ot St. Latro
be, P
A. 15650
U
SA
A
cti
ve
Ordi
nar
y
10
0
10
0
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
139
Carclo plc
Annua
l rep
or
t a
nd a
ccount
s 2022
R
egi
st
ere
d
P
rin
cip
al p
lac
e
Cla
ss o
f
202
2
2021
Gro
up
of
ﬁce a
dd
res
s
of bu
si
nes
s
St
atu
s
sh
ar
es he
ld
%
%
CTP Fi
nance N
V
Parer
aweg 45,
Curac
ao
M
emb
er
s’
Ord
inar
y
10
0
10
0
Curacao
V
olunt
ar
y
Liquidation
CTP M
oul
ded G
ear
s Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
CTP Pre
cisio
n T
oo
lin
g Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
CTP T
a
ica
ng Co.
, Ltd
No. 8 Xi
xi
n Road, Chen
gx
ia
ng T
own,
Chi
na
A
cti
ve
O
rdina
r
y
10
0
10
0
T
aic
an
g Cit
y
, Jia
ng
su Provin
ce 2
154
1
1
Data
ca
ll
Li
mite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
D.B.
T
. (M
otor Facto
rs) Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Dou
gla
s Ca
mpb
ell Li
mite
d
2
UK Dor
man
t
Ord
inar
y
10
0
10
0
Europea
n Ca
rd Clothi
ng Com
pany Lim
ited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Electro-
Medical Limited
1
UK
D
orm
ant
A
1 o
rdina
r
y
10
0
10
0
& o
rdina
r
y
Finemoulds
Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Gilby
-Brunton
Limited
2
UK Dor
man
t
Ord
inar
y
10
0
10
0
Ind
ust
ates
Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Jacot
tet In
dus
tri
e SAS
40 bi
s Av
enu
e d’Orl
ean
s,
France
Ac
tive
Ord
ina
r
y
100
10
0
2
8000
, C
hartres
Joh
n Shaw Lif
t
ing & T
e
st
ing Se
r
vice
s Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Jon
as Woo
dhea
d Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Jon
as Woo
dhea
d (Manch
es
ter) Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Jon
as Woo
dhea
d (
Os
set
t) Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Jon
as Woo
dhea
d (Shef
ﬁel
d) Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Jon
as Woo
dhea
d & Son
s Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
K.A
.S. Precision E
ngineering Limited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Platform Diagnostics Limited
1
UK
Dorm
ant
A
1 o
rdina
r
y
60
60
Rumb
old I
nvestm
ent
s Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Shepley Securities Limited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Sima P
la
sti
cs Limi
ted
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Squ
ires Ste
el Stock
hol
der
s Lim
ited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Sybro
Li
mited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
T
ol
edo Woo
dhead S
pr
ings L
imite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
T
olwo
od En
gine
er
ing Lim
ited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Woodh
ead Com
pon
ent
s Limite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Woodhead C
onstr
uction Ser
vices Limited
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
Woodh
ead Steel L
imite
d
1
UK Dor
man
t
Ord
inar
y
10
0
10
0
1.
Regi
ste
red of
ﬁ
ce add
res
s is: Un
it 5, Si
lk
wo
od Co
ur
t, O
ss
et
t, Uni
ted K
in
gdo
m, WF5 9TP
2.
Re
gis
tere
d of
ﬁce a
ddre
ss i
s: C/O Bru
nton
s Aero Pr
odu
ct
s, U
nit
s 1-3, Blo
ck 1, Inveres
k, I
ndu
st
ria
l Es
tate, M
uss
el
burg
h, Ea
st Lot
hia
n, EH21 7P
A
34. Post balance shee
t ev
ents
On 29 A
pril 2022, subs
equ
ent to ba
lan
ce she
et date, the G
roup ente
red into a s
al
e and l
ea
seb
ack agre
eme
nt for a T
ech
nica
l
Pla
st
ics ma
nuf
act
urin
g site at T
u
cso
n, Ari
zona, U
SA
. The tr
an
sac
tio
n is ex
pe
cte
d to comp
lete in J
uly 20
22 fo
r a purcha
se p
rice of
$2
.
95 mi
llio
n les
s cost
s of $0.2 mill
ion. A lea
s
e term of 9 yea
rs h
as b
een a
gree
d an
d gra
nts th
e Grou
p the r
ight to ca
nce
l any time
af
ter 3 yea
rs, p
rovide
d t
welve mo
nths’ noti
ce is given. At 31 Ma
rch 20
22 the
re is no rea
s
onab
le cer
ta
int
y that th
e Gro
up will
exe
rcise th
e brea
k claus
e. The Gro
up ex
pe
ct
s to reco
gnis
e a proﬁt o
n disp
os
al in re
sp
ec
t to the si
te of £0
.6 millio
n in th
e year
end
ing 31 Ma
rch 20
2
3.
140
Carclo plc
An
nua
l repo
r
t an
d accou
nts 2022
COMP
ANY BALANCE SHEET
as at 3
1 March 202
2
2022
2
021
Not
es
£000
£000
£000
£
000
Fix
ed assets
Prop
er
t
y
, p
lant a
nd e
quipm
ent
37
152
67
Int
ang
ibl
e
a
sse
ts
38
17
7
223
Inves
tment
s in su
bsi
diar
y u
nde
r
ta
kin
gs
39
93,7
95
9
3
,79
5
Defe
rred
ta
x
as
set
s
43
9
52
218
95,07
6
94
,
3
03
Current as
sets
De
btor
s – amo
unts f
all
ing du
e with
in on
e year
40
6
9,
4
4
1
6
9,
0
9
9
De
btor
s – amo
unts f
all
ing du
e af
ter m
ore tha
n one yea
r
40
2
,03
3
4,58
8
Ca
sh at ba
nk a
nd in ha
nd
450
3
,5
59
7
1
,9
2
4
7
7,
2
4
6
Cr
edi
to
rs – a
mo
unt
s fa
lli
ng du
e wit
hi
n on
e year
T
ra
de an
d other cre
dito
rs
41
(
1
0
9,
2
3
2
)
(
113
,
2
13
)
(
1
0
9,
2
3
2
)
(
113
,
2
13
)
Net
current
liabilitie
s
(37
,
308
)
(
3
5
,9
67
)
T
ot
a
l as
set
s l
es
s cur
re
nt li
ab
ili
ti
es
57
,7
68
58,
336
Cr
edi
to
rs – a
mo
unt
s fa
lli
ng du
e af
te
r mo
re t
ha
n on
e year
42
(3
5,
478)
(
3
5
,
2
9
1)
Ne
t as
se
ts e
xclu
di
ng pe
ns
io
n lia
bi
lit
y
22
,290
2
3,0
45
Pension
liabilit
y
44
(2
5
,9
7
9
)
(
3
7,
2
7
5
)
Ne
t
li
abi
li
tie
s
(3,689)
(
14,
2
3
0)
Capital
and
reserv
es
Ca
lled
-up
sha
re
ca
pit
al
27
3
,
671
3
,
67
1
Share
premium
account
7,
3
5
9
7,
3
5
9
Proﬁt
an
d
lo
ss
a
ccount
(14
,7
19)
(2
5,26
0)
Shareholders’ deﬁcit
(3,
6
89)
(14
,
2
3
0)
The Co
mpa
ny repo
r
ted a pro
ﬁt af
ter t
a
x fo
r the year o
f £1
,
988,000 (202
1
: p
roﬁt of £18
1
,000)
.
The
se accou
nts we
re app
roved by the B
oard o
f Dire
cto
rs o
n 29 June 2022 and we
re sign
ed on i
ts b
eha
lf by:
Nick Sanders
Phil White
Director Director
Registered Number 1
9
6
2
4
9
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
141
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
COMP
ANY ST
A
TEMENT OF CHANGES IN EQUITY
for the year ended 31 March 202
2
Sha
re
Sha
re
Pr
oﬁt
an
d
Total
capital
premium
loss
account
equity
£000
£000
£
000 £
000
Bal
ance at 1 A
pri
l 20
20
3,6
71
7
,359
(1
8,
92
7)
(7
,897)
Pro
ﬁt fo
r th
e yea
r
—
—
18
1
18
1
Other comprehensive
expense
Remea
su
reme
nt los
ses o
n deﬁn
ed b
eneﬁt s
chem
e
—
—
(
6,54
0)
(6,540)
T
a
x
ation o
n item
s ab
ove
—
—
—
—
T
otal comprehensiv
e expense for
the y
ear
—
—
(6,359
)
(
6,
359
)
T
ra
ns
ac
ti
on
s wit
h owne
rs r
ec
ord
ed d
ir
ect
ly i
n eq
uit
y
Sha
re-
ba
sed p
ayment
s
—
—
26
26
T
a
x
ation o
n item
s record
ed di
rec
tly in e
quit
y
—
—
—
—
Bal
ance at 31 Ma
rch 20
21
3,6
71
7
,359
(25,260)
(1
4,230)
Bal
ance at 1 A
pri
l 20
21
3,6
71
7
,359
(25,
260)
(14,230)
Pro
ﬁt fo
r th
e yea
r
—
—
1
,
988
1,
988
Other comprehensive
income
Remea
su
reme
nt gain
s on deﬁ
ned b
ene
ﬁt sche
me
—
—
8,4
80
8,
480
T
a
x
ation
on
item
s
ab
ove
—
—
—
—
T
otal comprehensiv
e income
for the y
ear
—
—
10,4
68
10,46
8
T
ra
ns
ac
ti
on
s wit
h owne
rs r
ec
ord
ed d
ir
ect
ly i
n eq
uit
y
Sha
re-
ba
sed
payme
nts
—
—
73
73
T
a
x
ation o
n item
s record
ed di
rec
tly in e
quit
y
—
—
—
—
Ba
la
nc
e at 31 Ma
rc
h 2022
3,6
71
7
,359
(
14,7
19
)
(3,689)
142
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
NOTES TO THE COMP
ANY
FINANCIAL ST
A
TEMENTS
for the year ended 31 March 202
2
35. Basis of prepar
ation for the Compan
y
Going concern
The ﬁn
ancia
l st
atem
ents a
re pre
pare
d on th
e goin
g conce
rn
basis.
Grou
p per
form
ance d
urin
g the yea
r has e
nab
led c
ap
ita
l an
d
work
in
g cap
ita
l inves
tme
nt to be mad
e whil
st ret
ai
ning a s
ta
bl
e
ﬁnan
cial p
osi
tion w
ith n
et debt e
xclud
ing lea
s
e liab
ilit
ies a
s of
31 March 2022 increa
sin
g to £21
.5 mill
ion (20
21
: £
20
.5 mil
lion)
.
The d
ebt faci
liti
es avail
abl
e to the G
roup co
mpr
ise a ter
m lo
an
of £30.3 m
illio
n, of whi
ch £1
.4 mil
lion w
ill be a
mo
r
tis
ed by
30S
eptemb
er 2022 and a £
3.5 mill
ion revol
ving cre
dit f
acili
ty
which w
as f
ully u
tili
sed a
s of 31 Ma
rch 20
22. Both of th
ese
facil
itie
s mature o
n 31 July 2023.
A sche
dul
e of contr
ibut
ion
s with t
he pe
nsio
n tru
ste
es is in p
lace
throu
gh to Jul
y 20
23; beyond th
is a sch
edul
e of contr
ibu
tion
s
for £3.
5 milli
on an
nual
ly is in p
lace unti
l 31 Octo
ber 204
0. This
sche
dul
e is reviewe
d and re
cons
ide
red be
twe
en th
e Comp
any
and t
he tr
us
tees at ea
ch trie
nnia
l act
uar
ial v
aluat
ion, th
e nex
t
bei
ng af
ter t
he res
ult
s of the 31 Ma
rch 20
21 trienn
ial va
luati
on
are k
nown. Th
is val
uatio
n, and acco
rding
ly an u
pdate
d sche
dule
of contr
ibu
tion
s which h
as b
ee
n provisi
ona
lly agre
ed, is
ex
pe
cte
d to be con
clude
d by 31 July 20
22. For th
e pur
pos
es of
this g
oing co
ncer
n review th
e ex
t
ant s
ched
ule of con
trib
uti
ons
ha
s be
en cons
ider
ed in th
e ba
se c
as
e.
An inte
rcredi
tor de
ed b
et
ween C
arclo p
lc, cer
t
ain ot
her G
roup
comp
anie
s, the b
ank a
nd th
e pen
sio
n sche
me tr
uste
es re
quire
s
the G
roup to have reﬁna
nced i
ts b
ank d
ebt wit
h a matur
it
y date
not ear
lie
r than 31 Ma
rch 20
26 and to have agre
ed an u
pdate
d
sche
dul
e of contr
ibut
ion
s for the a
ctu
ar
ial va
luati
on of th
e
sche
me a
s at 31 March 202
1 by 31 July 20
22 (this date havi
ng
be
en rece
ntly e
x
tend
ed by one m
onth)
.
The G
roup, the b
ank a
nd th
e pen
sion s
chem
e tru
ste
es are
ac
tively e
ngag
ed in n
egot
iation
s over the reﬁ
nanci
ng of th
e
ba
nk debt b
eyond th
e curre
nt ex
pir
y date of 31 Ju
ly 20
23 an
d
over the up
dated s
che
dule of co
ntri
buti
ons. T
he pa
r
tie
s are
commi
t
ted to a pl
an to ﬁna
lis
e the
se by 31 July 2022 and t
he
Dire
cto
rs h
ave an ex
pec
t
ation t
hat this w
ill be a
chieved.
As s
uch the D
ire
ctor
s’ goi
ng con
cern a
ss
ess
ment
per
io
dist
welve mo
nths f
rom th
e date of sign
ing
the
seﬁna
ncia
lst
ateme
nts.
The b
ank f
acilit
ies a
re subj
ec
t to four covena
nts to b
e tes
ted on
a qua
r
terl
y ba
sis:
1
. und
erly
ing in
teres
t cover;
2. net debt to u
nde
rlyi
ng EBITDA;
3. core
subsidiar
y underlying EBIT
A; and
4. core sub
sidia
r
y revenu
e.
Core su
bsid
iar
ies a
re deﬁn
ed a
s Ca
rclo T
e
chnica
l Pla
s
tics Ltd;
Bru
ntons Ae
ro Prod
uc
ts Ltd; Carclo T
e
chnic
al Pla
s
tic
s (Brno)
s.r
.o; CTP Ca
rrer
a Inc a
nd Jacot
tet I
ndu
str
ie SA
S, wit
h CTP
T
aic
an
g Co. L
td an
d Carcl
o T
echn
ica
l Pla
sti
cs P
v
t Co Ltd being
treated a
s no
n-
core for th
e pur
po
ses of t
hes
e covenant
s.
It is a
ss
umed t
hat the b
ank covena
nt
s and t
hresh
old
s set o
ut
inthe cu
rrent b
ank
ing a
gree
ment a
re in pl
ace thro
ugho
ut th
e
goin
g conce
rn a
ss
ess
ment p
eri
od a
nd are n
ot ame
nde
d a
s a
resu
lt of th
e ongo
ing reﬁ
nanci
ng.
Ba
se
d on our cur
rent b
as
e ca
se fo
reca
s
ts, t
hes
e covenant te
st
s
are e
xp
ec
ted to b
e met thro
ugh
out th
e a
sse
ssm
ent pe
rio
d.
In ad
diti
on, the p
ens
ion s
cheme h
as t
he be
neﬁt of a ﬁ
f
th
covenant to b
e tes
ted on 1 M
ay each year up to an
d inclu
din
g
20
23. In res
pe
ct to th
e year
s to 31 March 20
22 a
nd
31March2023 the tes
t requi
res a
ny shor
t
f
all of p
ens
ion
deﬁci
t recover
y cont
rib
utio
ns wh
en mea
su
red aga
ins
t
Pensi
on Protec
tio
n Fund pri
ori
t
y dri
f
t (which is a mea
sur
e of
the in
crea
se in th
e UK Pen
sion Prote
ct
ion Fund’s potent
ial
ex
po
sure to th
e Grou
p’
s pens
ion s
chem
e liab
ilit
ies) to be met
by a combi
nation o
f ca
sh paym
ents to t
he sch
eme, plu
s a
notio
nal (non-
ca
sh) prop
or
ti
on of the i
ncrea
se in t
he und
er
lyin
g
val
ue of th
e T
echni
cal P
la
sti
cs an
d Aeros
pace b
usin
ess
es ba
s
ed
on a
n EBITDA mult
iple fo
r tho
se bu
sine
ss
es whi
ch is to be
determined a
nnually
.
The D
irec
tor
s have reviewe
d ca
sh ﬂow a
nd covenan
t forec
as
ts
to cover the t
wel
ve month p
er
iod f
rom the d
ate of sign
ing
the
se ﬁna
ncia
l st
ateme
nts t
ak
ing in
to account th
e Grou
p’
s
availa
bl
e debt f
acilit
ies a
nd th
e term
s of the cur
rent
ar
ran
gem
ent
s with t
he ba
nk an
d the p
ens
ion s
cheme. Th
ese
dem
ons
trate t
hat the G
roup ha
s su
f
ﬁcient h
eadro
om in te
rms
of liqu
idit
y a
nd covena
nt tes
ting t
hroug
h the for
eca
s
t per
iod.
In ad
diti
on the D
ire
ctor
s have reviewe
d ca
sh ﬂow a
nd covena
nt
forec
a
st
s for the s
am
e tim
e per
iod b
as
ed o
n mana
gem
ent
’s
be
st es
tim
ates of th
e impa
ct of t
he ong
oin
g neg
otiatio
ns on
facilities and pension contributions which includes curren
tly
uncommitted bank loa
n repa
yments and provisionally agreed
additional pension deﬁcit recov
er
y contributions contingent
on
fut
ure pe
r
form
ance. Th
ese d
emo
nst
rate that t
he Gro
up ha
s
suf
ﬁci
ent hea
droo
m in ter
ms of liq
uidi
ty a
nd covena
nt tes
ting
throu
gh th
e forec
as
t pe
rio
d.
The D
irec
tor
s have reviewe
d sen
sitiv
it
y tes
tin
g ba
sed o
n a
numb
er of rea
so
nab
ly po
ssi
ble s
cena
rio
s, ta
kin
g into accou
nt
the cur
rent vi
ew of imp
act
s of th
e contin
uing COVID
-
1
9
pan
dem
ic on th
e Gro
up (pa
r
ticula
rl
y from su
ppl
y chain
disruption and any unmitigat
ed cost inﬂation ac
ross all type
s
ofop
erati
ona
l ex
pen
dit
ure) and po
ssib
le po
lit
ica
l uncer
ta
int
y
,
inclu
ding t
he imp
ac
t of the Rus
sia
n inva
sion o
f Ukr
ain
e an
d
heig
htene
d ris
k of wid
er conﬂi
ct, B
rex
it a
nd othe
r pos
sib
le
overseas trading issues.
Severe d
ownsi
de se
nsit
ivit
y te
sti
ng ha
s be
en pe
r
for
med u
nde
r
a ra
nge of s
cena
rio
s mod
elli
ng the ﬁ
nan
cial ef
fe
ct
s of los
s of
bus
ine
ss fro
m: discrete si
tes, an over
all f
all i
n gros
s marg
in of
1
% across t
he Gro
up, a fall i
n Group s
al
es of 5% matche
d by a
corre
sp
ondi
ng fa
ll in cos
t of s
ale
s of the s
am
e amo
unt, de
lays
in the timing of
commencement of signiﬁcant c
ontractual
proj
ec
ts, re
duc
tio
n in revenue f
rom sp
eciﬁ
c custo
mer
s,
minimum wage incr
ease
s, unmitiga
ted inﬂationary impact
across operating costs and exchange risk. These sensitivi
ties
at
tempt to in
corp
or
ate the ri
sk
s ar
isin
g from nat
iona
l and
regi
ona
l impa
ct
s of the g
lob
al pa
nde
mic fr
om lo
cal l
ockdown
s,
impa
ct
s on ma
nuf
act
uri
ng an
d supp
ly cha
in an
d other p
otentia
l
increa
se
s to dire
ct a
nd in
direc
t cos
ts. T
he Di
rec
tor
s cons
ider
that th
e Grou
p has t
he ca
paci
t
y to take mi
tigat
ing ac
tio
ns to
ens
ure that th
e Grou
p rema
ins ﬁna
ncia
lly via
bl
e, includi
ng
fur
t
her re
ducin
g op
erati
ng ex
pe
ndi
ture a
s ne
cess
ar
y
.
On th
e ba
sis of t
his fore
ca
st a
nd s
ensi
tivi
t
y test
ing, th
e Boa
rd
ha
s deter
min
ed that i
t is rea
son
abl
e to as
sum
e that th
e
Comp
any wil
l continu
e to op
erate wi
thin t
he fa
ciliti
es avai
lab
le
to it an
d to adh
ere to the covena
nt tes
ts to w
hich it i
s subje
ct
throu
gho
ut the t
we
lve mont
h per
io
d from th
e date of sig
ning
the ﬁn
ancia
l st
atem
ents a
nd a
s su
ch it ha
s ado
pted the g
oin
g
conce
rn a
ssu
mptio
n in prep
ar
ing th
e ﬁnan
cial s
tate
ment
s.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
143
Carclo plc
Annu
al re
por
t a
nd a
ccount
s 2022
Accounting policies for the Compan
y
The fo
llowi
ng accoun
ting p
oli
cies have be
en ap
plie
d
consi
ste
ntly in d
ealin
g wit
h items w
hich a
re consi
dere
d mater
ial
in relat
ion to th
e ﬁna
ncial s
tate
ment
s.
The
se ﬁna
ncia
l st
ateme
nts wer
e prep
ared i
n accorda
nce wi
th
Fina
ncial Re
por
tin
g Stan
dard 101 Reduce
d Dis
closu
re
Framewo
rk (“FRS 10
1”)
. T
here a
re no a
men
dment
s to
account
ing s
ta
nda
rds, or I
FRIC in
terp
retati
ons, t
hat are
ef
fec
tive for t
he year e
nde
d 31 March 20
22 w
hich have had a
mater
ial im
pac
t on th
e Comp
any
.
In pre
par
ing t
hes
e ﬁnan
cial s
tate
ment
s, the C
ompa
ny app
lie
s
the reco
gniti
on, mea
surem
ent an
d disclo
sure requ
ireme
nts of
Inter
natio
nal Fi
nanci
al Rep
or
ti
ng Sta
nda
rds a
s ado
pted by th
e
EU (“UK
-adopte
d inter
natio
nal a
ccountin
g st
an
dard
s”), but
makes a
me
ndme
nts w
here n
eces
sa
r
y in ord
er to comp
ly wi
th
the Co
mpa
nies A
ct 2006 a
nd ha
s s
et out b
elow w
here
adva
nta
ge of th
e FRS 10
1 discl
osure e
xempt
ion
s has b
ee
n
t
ake
n.
Und
er Se
ct
ion 4
08 of th
e Compa
nie
s Act 20
06 the Co
mpa
ny is
exe
mpt from t
he req
uirem
ent to pre
se
nt its ow
n proﬁt a
nd l
oss
accou
nt.
In th
ese ﬁ
nancia
l st
atem
ents
, the Com
pany ha
s a
ppl
ied th
e
exe
mptio
ns avail
abl
e und
er FRS 10
1 in res
pec
t of th
e follow
ing
disclosures:
•
ca
sh ﬂ
ow st
ateme
nt an
d relate
d notes;
•
comp
arat
ive per
io
d recon
ciliatio
ns for s
hare c
api
ta
l and
ta
ngib
le ﬁ
xed a
ss
ets;
•
dis
closu
res in re
spe
ct of t
ra
nsa
cti
ons w
ith wh
olly ow
ned
subsidiaries;
•
dis
closu
res in re
spe
ct of c
ap
ita
l ma
nage
ment;
•
the ef
fe
ct
s of new b
ut not yet ef
fe
cti
ve IFRSs;
•
an ad
diti
ona
l bal
ance s
heet fo
r the b
egi
nning o
f the ea
rlie
st
comp
arat
ive per
io
d follow
ing th
e recla
ss
iﬁcat
ion of i
tems in
the ﬁnanc
ial statements
;
•
dis
closu
res in re
spe
ct of t
he com
pen
sati
on of key
management
personnel; and
•
disclosures of transaction
s with a management entity that
provid
es key man
agem
ent p
er
sonn
el s
er
vice
s to the
C
o
m
p
a
n
y.
As t
he con
soli
dated ﬁn
ancia
l st
atem
ents i
nclud
e the e
quiv
ale
nt
dis
closu
res, th
e Comp
any ha
s al
so ta
ken the e
xempt
ion
s unde
r
FRS 10
1 availa
ble i
n resp
ec
t of the fo
llowi
ng dis
clos
ures:
•
IFRS 2 S
hare
-ba
se
d Paymen
ts in re
spe
ct o
f Group
-s
et
tle
d
share-based paymen
ts;
and
•
cer
t
ain d
isclo
sure
s requ
ired by IFRS 13 F
air Valu
e
Mea
sure
ment a
nd th
e dis
closu
res re
quire
d by IFRS 7
Financial Instrument Disclosures.
The Co
mpa
ny prop
ose
s to contin
ue to ado
pt the re
duce
d
dis
closu
re fra
mewo
rk of FRS 101 in its ne
x
t ﬁna
ncial
st
atem
ent
s.
The acco
untin
g po
licie
s set ou
t bel
ow have, unles
s other
w
ise
st
ated, be
en a
ppli
ed con
sis
tently to a
ll pe
rio
ds p
rese
nted in
these ﬁnanci
al statements.
Jud
gem
ent
s made by th
e Dire
cto
rs i
n the a
ppli
catio
n of the
se
accounting
policies that ha
ve signiﬁcant e
f
fect on the ﬁnancial
st
ateme
nts, a
nd e
stim
ates wi
th a sign
iﬁca
nt ri
sk of mater
ial
adju
stm
ent in t
he ne
x
t year
, are dis
cuss
ed in n
ote 4
9
.
Cer
t
ain n
ew st
an
dard
s, ame
ndm
ent
s and i
nterp
retat
ions to
ex
is
ting s
ta
nda
rds have be
en pub
lis
hed t
hat are ma
ndato
r
y
forth
e Compa
ny’s accountin
g per
io
d beg
innin
g on or a
f
ter
1Apr
il202
1
. The foll
owin
g new st
an
dard
s and a
me
ndme
nts to
st
an
dard
s are ma
ndato
r
y and h
ave been ad
opte
d for the ﬁ
rs
t
tim
e for the ﬁ
nancia
l year b
egin
ning 1 A
pr
il 20
21
:
•
IFRS 9 Fin
ancia
l Ins
tr
umen
ts, IA
S 39 Fina
ncia
l Ins
tru
ment
s:
Recog
niti
on an
d Mea
sure
ment
, IFRS 7 Fina
ncia
l Ins
tru
ment
s:
Dis
clos
ures, I
FRS 4 Ins
ura
nce Contr
ac
ts a
nd IFRS 16 Leas
es
(Amen
dme
nt)
: Interes
t Rate Be
nchma
rk Refo
rm – Pha
se 2;
and
•
IFRS 16 Lease
s (Amen
dme
nt)
: COVID
-
1
9-relate
d rent
conce
ssio
ns b
eyond 30 Ju
ne 20
21
.
The
se s
ta
nda
rds have not had a mate
ria
l impa
ct o
n the
Company’
s ﬁnancial stat
ements.
a) Measurement con
v
ention
The ﬁn
ancia
l st
atem
ents a
re pre
pare
d on th
e his
tori
cal co
st
ba
sis e
xcept that t
he foll
owing a
s
set
s and l
iab
iliti
es ar
e st
ated
at thei
r fai
r valu
e: deri
vative ﬁna
ncia
l ins
trum
ent
s, ﬁna
ncial
ins
tru
ment
s cla
ssi
ﬁed a
s fa
ir va
lue th
rough t
he proﬁ
t or lo
ss
and l
iab
iliti
es for c
as
h-s
et
tle
d sha
re-b
a
sed p
ayment
s.
b
) Leases
At incepti
on of a con
trac
t, th
e Comp
any as
se
sse
s whe
ther a
contr
ac
t is, or con
ta
ins, a lea
s
e. A contra
ct is, o
r cont
ain
s, a
lea
se i
f the cont
rac
t conveys th
e righ
t to control t
he us
e of an
ide
ntiﬁe
d a
sset fo
r a per
io
d of time i
n excha
nge fo
r
consi
der
atio
n. T
o as
se
ss wh
ethe
r a contra
ct co
nveys the ri
ght
to contro
l the u
se of an i
dent
iﬁe
d as
set, th
e Comp
any us
es th
e
deﬁni
tio
n of a lea
se in I
FRS 16
.
As a lessee
At comme
ncem
ent or o
n mod
iﬁcat
ion of a co
ntra
ct that
cont
ain
s a lea
se com
pon
ent, th
e Comp
any all
oc
ates the
consi
der
atio
n in the co
ntra
ct to each l
ea
se comp
on
ent on th
e
ba
sis of i
ts re
lative s
ta
nda
lone p
rice
s. However
, for th
e lea
se
s
of pro
per
t
y
, the Com
pany ha
s el
ec
ted not to s
epa
rate
non
-lea
s
e compo
nent
s an
d account fo
r the l
eas
e an
d non
-lea
se
comp
one
nts a
s a sin
gle l
eas
e comp
one
nt.
The Co
mpa
ny recogn
ise
s a rig
ht
-of-us
e as
set a
nd a lea
s
e
liab
ilit
y at t
he lea
se co
mme
nceme
nt date. The r
ight-of-use a
ss
et
is ini
tial
ly mea
sur
ed at cos
t, which co
mpr
ise
s the in
itia
l am
ount
of the l
ea
se lia
bili
t
y adjus
ted fo
r any lea
se p
ayment
s mad
e at or
befo
re the com
men
ceme
nt date, plus a
ny initi
al dire
ct co
st
s
incur
red a
nd an e
st
imate of cos
ts to d
isma
ntle a
nd rem
ove the
und
erl
ying a
ss
et or to re
sto
re the un
der
lyin
g as
set o
r the si
te on
which i
t is lo
cated, l
ess a
ny lea
se in
centive
s receive
d.
The r
ight-of-use a
ss
et is su
bse
que
ntly de
pre
ciated us
ing th
e
str
ai
ght
-li
ne met
hod f
rom th
e comme
ncem
ent date to th
e end
of the l
ea
se ter
m, unle
ss th
e lea
se tr
an
sfer
s own
er
ship of t
he
und
erl
ying a
ss
et to the C
ompa
ny by the en
d of the l
eas
e ter
m
or th
e cost o
f the r
ight-of-use a
ss
et reﬂe
ct
s that th
e Comp
any
will e
xercis
e a purcha
s
e optio
n. In that c
as
e, the ri
ght
-of-us
e
a
sset w
ill b
e depr
eciated over t
he us
eful li
fe of the u
nde
rlyi
ng
a
sset, w
hich is d
eterm
ine
d on th
e sam
e ba
sis a
s th
ose o
f
prop
er
t
y a
nd eq
uipm
ent. In a
ddit
ion, th
e rig
ht
-of-us
e as
set i
s
per
io
dica
lly re
duce
d by impa
irm
ent lo
sse
s, if a
ny
, and a
djus
ted
for cer
t
ai
n remea
su
reme
nts of th
e lea
se l
iabi
lit
y
.
14
4
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
NOTES TO THE COMP
ANY
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
35. Basis of prepar
ation for the Compan
y
continued
Accounting policies for the Compan
y
continued
b
) Leases
continued
As a lessee
continued
The l
eas
e lia
bili
ty i
s init
iall
y mea
sure
d at the pr
ese
nt valu
e of
the l
eas
e payme
nts t
hat are not p
aid at t
he comm
ence
ment
date, disco
unted u
sing t
he intere
st r
ate imp
licit in t
he lea
s
e or
,
if that r
ate ca
nnot be re
adily d
eter
mine
d, the Com
pany
’
s
incre
ment
al b
orrow
ing r
ate. Gene
ra
lly
, th
e Comp
any us
es it
s
incre
ment
al b
orrow
ing r
ate as t
he dis
count r
ate.
The Co
mpa
ny deter
mine
s it
s increm
ent
al b
orrow
ing rate by
obt
ain
ing inte
res
t rates f
rom va
rio
us ex
te
rna
l ﬁnan
cing s
ources
and m
akes cer
ta
in adj
ust
ment
s to reﬂe
ct t
he ter
ms of th
e lea
se
and t
y
pe of th
e as
set l
ea
sed.
Leas
e payme
nts in
clude
d in th
e mea
sure
ment of t
he lea
se
liab
ilit
y co
mpr
ise th
e foll
owing:
•
ﬁxe
d payme
nts, in
cludi
ng in-
sub
st
ance ﬁ
xed p
ayment
s;
•
var
iab
le lea
s
e paymen
ts that d
epe
nd on a
n ind
ex o
r a rate,
init
iall
y mea
sure
d usin
g the i
nde
x or rate a
s at th
e
commencemen
t dat
e
;
•
am
ount
s ex
pec
ted to b
e payab
le un
der a re
sidu
al va
lue
guaran
tee
; and
•
the e
xercis
e pri
ce unde
r a purcha
s
e optio
n that th
e
Comp
any is rea
so
nab
ly cer
t
ai
n to exercis
e, lea
se paym
ent
s
in an o
ptio
nal ren
ewal p
er
iod i
f the Co
mpa
ny is reas
ona
bly
cer
t
ain to e
xercis
e an e
x
tensi
on opt
ion, an
d pen
alt
ies for
ear
ly ter
minati
on of a lea
s
e unle
ss th
e Comp
any is
rea
sona
bl
y cer
ta
in not to te
rmin
ate earl
y
.
The l
eas
e lia
bili
ty i
s mea
sure
d at amo
r
tis
ed co
st us
ing th
e
ef
fec
tive inte
res
t meth
od. It is re
mea
sure
d whe
n the
re is a
chan
ge in fu
ture l
eas
e payme
nts a
ris
ing f
rom a chan
ge in a
n
ind
ex or r
ate, if the
re is a chan
ge in th
e Comp
any’s est
imate of
the a
mou
nt ex
pe
cted to b
e payab
le un
der a re
sidu
al va
lue
gua
ran
tee, if the Co
mpa
ny chang
es it
s a
ss
ess
ment of w
heth
er
it wi
ll exerci
se a pu
rchas
e, ex
ten
sion o
r term
inatio
n optio
n, or if
the
re is a revis
ed in
-sub
st
an
ce ﬁxed l
ea
se paym
ent.
Whe
n the l
eas
e lia
bili
ty i
s remea
su
red in t
his way
, a
corresponding adjustm
ent is made
to the carr
ying amount of
the r
ight-of-use a
ss
et, or i
s record
ed in p
roﬁt or l
oss i
f the
ca
rr
yin
g am
ount of th
e rig
ht
-of-us
e a
sset h
as b
ee
n redu
ced to
ze
ro.
The Co
mpa
ny pres
ents r
ight-of-us
e as
set
s that do n
ot meet
the d
eﬁnit
ion of inves
tm
ent pro
per
t
y in “t
ang
ible ﬁ
xed a
s
set
s”
and l
ea
se lia
bili
tie
s in “tr
ade a
nd othe
r credi
tor
s – amo
unt
s
fa
lling d
ue in le
ss th
an on
e year” a
nd “creditor
s – a
mount
s
fa
lling d
ue af
ter m
ore th
an on
e year” i
n the ba
la
nce she
et.
Short-term leases and leases of lo
w-v
alue assets
The Co
mpa
ny has e
lec
ted n
ot to recog
nise r
ight-of-use a
s
set
s
and l
ea
se lia
bili
tie
s for lea
se
s of low-va
lue a
ss
et
s and
sho
r
t
-term l
eas
es, in
cludi
ng IT eq
uipm
ent. Th
e Comp
any
rec
ognises
the le
ase pa
yments assoc
iat
ed wit
h these
leases as
an e
xp
ens
e on a st
ra
ight-line ba
si
s over the l
eas
e term.
c) In
vestments
Fixe
d a
sset i
nvestm
ent
s are s
tate
d at cost l
es
s provisi
on for
impa
ir
ment w
here a
ppro
pri
ate. The Dire
cto
rs co
nsid
er a
nnua
lly
whet
her a p
rovisio
n aga
ins
t the va
lue of i
nvestm
ent
s on an
indi
vidu
al ba
si
s is req
uired. S
uch provi
sion
s are cha
rge
d in the
proﬁt a
nd l
oss a
ccount in th
e year
.
d) Property
, plant and equipment
Prop
er
t
y
, p
lant a
nd e
quipm
ent is s
tate
d at cos
t les
s
accumula
ted depreciation and accumula
ted impairme
nt losses.
Whe
re pa
r
ts of a
n item of p
rop
er
t
y
, p
lant a
nd eq
uipm
ent have
dif
fe
rent us
eful l
ives, th
ey are accou
nted for a
s s
epa
rate ite
ms
of pro
per
t
y
, plant a
nd e
quip
ment.
De
preciat
ion is cha
rge
d to the p
roﬁt an
d los
s account o
n a
str
ai
ght
-li
ne ba
sis over t
he es
timate
d us
eful li
ves of each p
ar
t
ofan i
tem of pro
per
t
y
, pla
nt an
d equ
ipme
nt. La
nd is n
ot
dep
reciate
d. The es
tim
ated us
eful li
ves are b
et
wee
n three
andt
we
lve year
s.
De
preciat
ion me
tho
ds, us
eful l
ives an
d resi
dua
l valu
es a
re
reviewe
d at each ba
lan
ce shee
t date.
e) T
axation
T
a
x o
n the pro
ﬁt or lo
ss fo
r the year co
mpr
ise
s curren
t and
defer
red t
a
x
. T
a
x is re
cogn
ise
d in the p
roﬁt a
nd lo
ss accou
nt
except to t
he ex
te
nt that it r
elates to i
tems re
cogni
sed d
irec
tly
in eq
uit
y or oth
er com
preh
ensi
ve incom
e, in which ca
s
e it is
recognised directly in equit
y or o
ther comprehensive income
.
Curre
nt ta
x is th
e ex
pe
cted t
a
x p
ayabl
e or re
ceiva
ble o
n the
ta
xa
bl
e incom
e or lo
ss for t
he year
, usin
g ta
x rate
s enac
ted o
r
sub
st
anti
vely ena
cte
d at the ba
la
nce she
et date, and a
ny
adju
stm
ent to t
a
x paya
ble i
n resp
ec
t of previ
ous yea
rs.
Defe
rred t
a
x i
s provid
ed on te
mpo
ra
r
y dif
fe
rence
s bet
wee
n the
ca
rr
yin
g am
ount
s of a
sset
s an
d lia
bilit
ies fo
r ﬁnan
cial re
por
t
ing
pur
pos
es a
nd th
e amo
unts u
se
d for ta
x
ation p
urp
ose
s.
The fo
llowi
ng temp
or
ar
y di
f
feren
ces are n
ot provid
ed for
: the
init
ial re
cogni
tio
n of goo
dwi
ll; the ini
tial re
cogn
itio
n of a
sset
s or
liab
ilit
ies t
hat af
fec
t nei
the
r accounti
ng no
r ta
xa
ble p
roﬁt oth
er
tha
n in a bus
ine
ss comb
inati
on; and di
f
ference
s relat
ing to
invest
ment
s in su
bsid
iar
ies to t
he ex
te
nt that th
ey will pro
ba
bly
not rever
se in t
he fore
see
abl
e fut
ure. The a
mount of d
efer
red
ta
x provi
ded i
s ba
se
d on the e
xp
ec
ted ma
nne
r of real
isat
ion or
set
tl
eme
nt of the c
ar
r
ying a
mo
unt of a
sse
ts a
nd lia
bili
ties
,
usin
g ta
x rate
s enac
ted o
r sub
st
anti
vely ena
cte
d at the ba
la
nce
she
et date. A defer
red t
a
x a
ss
et is re
cogni
sed o
nly to th
e ex
ten
t
that it i
s prob
abl
e that fu
ture t
a
x
ab
le proﬁ
ts wi
ll be ava
ilab
le
aga
ins
t which th
e temp
or
ar
y di
f
feren
ce can b
e util
ise
d.
f
) Emplo
y
ee beneﬁts
Deﬁned contribution plans
A deﬁn
ed cont
rib
utio
n pla
n is a po
st-emp
loyme
nt ben
eﬁt pl
an
und
er whi
ch the Com
pany p
ays ﬁxed co
ntri
but
ions i
nto a
sep
ar
ate entit
y a
nd wi
ll have no leg
al or co
ns
tru
cti
ve obli
gatio
n
to pay fur
t
her a
mou
nts. O
blig
ation
s for cont
rib
utio
ns to
deﬁn
ed cont
rib
utio
n pen
sion p
lan
s are re
cogni
se
d as a
n
ex
pe
nse in t
he proﬁ
t and l
os
s account in t
he pe
rio
ds du
ring
which s
er
vi
ces are r
ende
red by em
ployee
s.
Deﬁned beneﬁt plans
A deﬁn
ed be
neﬁt p
lan i
s a pos
t-empl
oyment b
en
eﬁt pla
n othe
r
tha
n a deﬁne
d contr
ibu
tio
n plan. T
he Com
pany’s net ob
ligat
ion
in res
pec
t of de
ﬁned b
en
eﬁt pe
nsio
n pla
ns is c
alcul
ated by
es
timati
ng th
e amo
unt of fu
ture b
eneﬁ
t that emp
loyees h
ave
ear
ned i
n retur
n for the
ir se
r
vice in t
he curre
nt an
d pri
or pe
rio
ds;
that b
eneﬁt i
s dis
counted to d
eter
mine i
ts pr
ese
nt val
ue, and
the f
air va
lue
s of any pl
an a
ss
ets (at bid pr
ice
) are d
edu
cte
d. The
Compan
y determi
nes the ne
t int
erest on the
net de
ﬁned beneﬁt
liab
ilit
y/
a
ss
et for th
e per
iod by a
ppl
ying t
he dis
count r
ate use
d
to mea
sure t
he deﬁn
ed b
eneﬁ
t obl
igatio
n at the b
egi
nning o
f
the a
nnua
l per
io
d to the ne
t deﬁne
d be
neﬁt li
abi
lit
y
/
as
set.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
145
Carclo plc
Annu
al rep
or
t a
nd a
ccount
s 2022
The di
scou
nt rate is th
e yie
ld at the re
po
r
ting d
ate on bo
nds
that have a credi
t rati
ng of at lea
s
t A
A that have matu
rit
y date
s
ap
proxi
matin
g the ter
ms of t
he Comp
any’s obl
igatio
ns an
d that
are d
enom
inated i
n the cur
renc
y in whi
ch the b
eneﬁ
ts a
re
ex
pe
cte
d to be pa
id.
Remea
su
reme
nts a
risi
ng fro
m deﬁn
ed be
neﬁt p
lan
s comp
ris
e
ac
tuar
ial g
ain
s and l
oss
es, th
e retur
n on p
lan a
ss
ets (exclud
ing
intere
st) and t
he ef
fe
ct of th
e a
sset ce
ilin
g (if any
, e
xcludi
ng
intere
st)
. The Co
mpa
ny recog
nise
s the
m imme
diatel
y in othe
r
comp
rehe
nsive in
come a
nd al
l other e
x
pen
ses re
lated to
deﬁn
ed be
neﬁt p
lan
s in emp
loyee b
eneﬁt e
x
pen
ses i
n proﬁt o
r
loss.
Whe
n the b
eneﬁ
ts of a p
lan a
re chan
ged, o
r whe
n a pla
n is
cur
t
aile
d, the p
or
ti
on of th
e chan
ged b
eneﬁ
t relate
d to pa
st
ser
v
ice by emp
loyees, o
r the ga
in or l
os
s on cur
t
ail
ment, is
reco
gnis
ed imm
edi
ately in p
roﬁt or l
oss w
hen t
he pla
n
amendment
or cu
r
tailment
occurs.
The c
alcul
ation of t
he deﬁ
ned b
eneﬁ
t obl
igati
ons is p
er
fo
rme
d
by a qual
iﬁed a
ct
uar
y u
sing t
he proj
ec
ted uni
t credi
t meth
od.
Whe
n the c
alcul
ation re
sul
ts in a b
eneﬁ
t to the Co
mpa
ny
, the
reco
gnis
ed a
ss
et is lim
ited to th
e pres
ent va
lue of b
en
eﬁts
availa
bl
e in the fo
rm of a
ny futur
e refun
ds fro
m the p
lan or
redu
ct
ions i
n fut
ure contr
ibu
tion
s and t
ake
s into account t
he
adverse ef
fect of any minimum funding requirements.
The li
abi
lit
y in re
spe
ct of t
he deﬁn
ed b
eneﬁ
t pla
n is the f
air
val
ue of th
e pla
n as
set
s les
s the p
res
ent va
lue of th
e deﬁn
ed
ben
eﬁt ob
ligat
ion at th
e ba
lance s
hee
t date, togeth
er wi
th
adju
stm
ent
s for ac
tua
ria
l gai
ns an
d los
ses. A
ctu
ar
ial ga
ins a
nd
los
se
s that ar
ise a
re reco
gnis
ed in f
ull wi
th the m
ovement
reco
gnis
ed in th
e st
ateme
nt of comp
rehe
nsive in
come.
The Co
mpa
ny is the p
rinci
pal s
pon
sor
ing e
mpl
oyer of a UK
Grou
p deﬁn
ed be
neﬁt p
ens
ion p
lan. A
s the
re is no cont
rac
tua
l
agre
eme
nt or st
ated G
roup p
oli
cy for cha
rgin
g the n
et deﬁn
ed
ben
eﬁt cos
t of th
e pla
n to par
t
icipat
ing ent
itie
s, the n
et deﬁn
ed
ben
eﬁt cos
t of th
e pen
sion p
lan i
s recog
nise
d ful
ly by the
pri
ncipa
l sp
ons
ori
ng emp
loyer
, which is t
he Comp
any
.
g) F
oreign currency
T
ra
ns
act
ion
s in foreig
n curre
ncies a
re reco
rded u
sing t
he rate of
excha
nge r
ulin
g at the d
ate of the tr
ans
ac
tio
n or
, if hed
ged
for
wa
rd, at the r
ate of excha
nge u
nder t
he rel
ated for
wa
rd
curre
ncy co
ntra
ct. M
onet
ar
y a
s
set
s and l
iabi
liti
es de
nom
inated
in forei
gn curre
ncie
s are tr
ans
lated u
sing t
he cont
rac
ted r
ate or
the r
ate of excha
nge r
ulin
g at the b
ala
nce sh
eet date a
nd th
e
gai
ns or l
oss
es on t
ran
slati
on ar
e includ
ed in t
he proﬁ
t and l
os
s
accou
nt.
h) Financial instruments
The Co
mpa
ny use
s der
ivative ﬁn
ancia
l ins
tr
ument
s to he
dge i
ts
ex
po
sure to fore
ign ex
chang
e rate r
isk
s ar
isin
g from o
per
ation
al
activities. In accordance
with its treasur
y policy
, the C
ompany
doe
s not ho
ld or i
ssu
e der
ivative ﬁn
ancia
l ins
tr
ument
s for
tra
ding p
urp
ose
s. However
, der
ivat
ives that d
o not qua
lif
y for
hedge accounting are ac
counted f
or as trading instrum
ents.
De
rivat
ive ﬁnan
cial in
str
ume
nts a
re reco
gnis
ed ini
tia
lly at fa
ir
val
ue. The ga
in or l
oss o
n remea
su
reme
nt of fa
ir val
ues i
s
reco
gnis
ed imm
edi
ately in th
e inco
me st
atem
ent. However
,
whe
re der
ivati
ves qua
lif
y for h
edg
e account
ing, re
cogni
tion o
f
any res
ult
ant ga
in or l
oss d
epe
nds o
n the nat
ure of th
e item
bei
ng he
dge
d. At the year en
d no de
riv
ative ﬁna
ncial
instrum
ents qualiﬁed for hedge accounting.
i) Share-based pa
yments
Sha
re-
ba
sed p
ayment a
rr
ang
eme
nts in w
hich th
e Comp
any
recei
ves go
ods o
r ser
v
ices a
s con
side
rati
on for i
ts own e
quit
y
ins
tru
ment
s are a
ccounted fo
r as e
qui
ty-
set
tl
ed sha
re-
ba
se
d
payme
nt tra
ns
act
ions, r
ega
rdle
ss of how th
e equ
it
y
ins
tru
ment
s are o
bta
ine
d by the Com
pany
.
The gr
ant d
ate fai
r valu
e of sha
re-b
a
sed p
ayment
s award
s
gra
nted to e
mployee
s is reco
gnis
ed a
s an e
mpl
oyee ex
pen
se,
wit
h a corre
spo
ndin
g increa
s
e in equ
it
y
, over th
e per
iod i
n
which t
he emp
loyees b
eco
me unco
ndi
tion
ally e
ntit
led to th
e
award
s. The f
air va
lue of t
he awa
rds gr
anted i
s mea
sure
d usin
g
an o
ption va
luat
ion mo
de
l, tak
ing i
nto account t
he ter
ms an
d
cond
itio
ns up
on whi
ch the awa
rds were g
ran
ted. The a
mou
nt
reco
gnis
ed a
s an e
xp
ens
e is adju
ste
d to reﬂec
t th
e act
ual
numb
er of awa
rds for w
hich th
e related s
er
v
ice and n
on-
mar
ket
vest
ing co
ndit
ions a
re ex
pe
cte
d to be m
et, such th
at the
am
ount ul
timatel
y reco
gnis
ed a
s an e
xp
ens
e is ba
se
d on th
e
numb
er of awa
rds that d
o mee
t the re
lated se
r
vice a
nd
non
-ma
rket pe
r
form
ance co
ndit
ions at t
he ves
ting d
ate. For
sha
re-b
a
sed p
ayment awa
rds wi
th no
n-ves
ting co
ndit
ions
, the
gra
nt date fa
ir va
lue of th
e sha
re-
ba
sed p
ayment i
s mea
sure
d
to reﬂe
ct su
ch condi
tio
ns an
d there i
s no tr
ue-
up for di
f
feren
ces
bet
we
en ex
pe
cte
d and a
ct
ual ou
tcome
s.
Sha
re-
ba
sed p
ayment t
ran
sac
tio
ns in w
hich th
e Compa
ny
recei
ves go
ods o
r ser
v
ices by in
curr
ing a lia
bil
it
y to tra
ns
fer
ca
sh or ot
her a
ss
ets t
hat is ba
s
ed on t
he pr
ice of the
Comp
any’s equi
t
y ins
trum
ent
s are acco
unted for a
s c
as
h-
set
tl
ed sh
are
-ba
se
d payme
nts. T
he fa
ir val
ue of th
e amo
unt
payab
le to em
ployee
s is reco
gnis
ed a
s an e
xp
ens
e, with a
corre
sp
ondi
ng incre
as
e in lia
bili
ties
, over the p
erio
d in wh
ich
the e
mployee
s be
come u
ncond
itio
nal
ly enti
tle
d to payment
.
The li
abi
lit
y is rem
ea
sure
d at each bal
ance s
heet d
ate and at
set
tl
eme
nt date. Any chan
ges i
n the fa
ir va
lue of t
he lia
bili
t
y are
reco
gnis
ed a
s per
s
onne
l ex
pe
nse
s in proﬁ
t or lo
ss.
Further disclosure in rela
tion to share-bas
ed payments is
given
in note 27 of the G
roup ﬁna
ncia
l st
ateme
nts.
j) Dividends
Div
ide
nds a
re only r
ecog
nise
d a
s a liab
ilit
y to th
e ex
ten
t that
they a
re decl
ared p
rio
r to the yea
r end. Un
pai
d divi
den
ds that
do not m
eet th
ese cr
iter
ia are d
iscl
ose
d in the n
ote to the
ﬁnancial
statements.
36. Personnel
The aver
age num
ber o
f empl
oyees in t
he year wa
s 18 (2
02
1
: 20)
.
14
6
Ca
rclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
NOTES TO THE COMP
ANY
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
37
. Property
, plant and equipment
La
nd
an
d
P
la
nt
a
nd
b
uildings
equipment
T
otal
£000
£
000
£
000
Cost
Bal
ance at 31 Ma
rch 20
21
—
180
180
Additions
14
1
2
143
Ba
la
nc
e at 31 Ma
rc
h 2022
14
1
182
323
Depreciation and impair
ment losses
Bal
ance at 31 Ma
rch 20
21
—
1
1
3
1
1
3
De
pre
ciatio
n
cha
rge
22
36
5
8
Ba
la
nc
e at 31 Ma
rc
h 2022
2
2
14
9
1
71
Carr
ying amo
unts
At 31 March 20
21
—
6
7
6
7
At 31 Ma
rch 2
022
11
9
33
152
38. Intangible ﬁx
ed assets
Soft
ware
£000
Cost
Bal
ance
at
31
Ma
rch
202
1
1
,
1
43
Additions
73
Ba
la
nc
e at 31 Ma
rc
h 2022
1,
216
Amortisation and impairment
losses
Bal
ance
at
31
Ma
rch
202
1
920
Amor
tisation
charge
119
Ba
la
nc
e at 31 Ma
rc
h 2022
1,
03
9
Carr
ying amo
unts
At
31
Ma
rch
20
21
2
23
At 31 Ma
rch 2
022
17
7
39
. Fixed asse
t in
vestments
Sha
re
s
i
n
Gr
oup
undertakings
£000
Cos
t
Bal
ance
at
31
Ma
rch
202
1
150
,
1
17
Ba
la
nc
e at 31 Ma
rc
h 2022
1
5
0
,11
7
Pro
visions
Bal
ance
at
31
Ma
rch
202
1
56,322
Ba
la
nc
e at 31 Ma
rc
h 2022
5
6,
322
Net b
oo
k valu
e
At
31
Ma
rch
20
21
93,
795
At 31 Ma
rch 2
022
93
,795
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
147
Carclo plc
Ann
ual re
po
r
t an
d accoun
ts 2022
Dur
ing t
he year en
ded 31 Ma
rch 20
22, £0
.
7 mill
ion (20
21
: £1
.3 mil
lion) wa
s receive
d from t
he adm
inis
trato
rs of W
ipa
c Ltd, the
invest
ment d
isp
ose
d of in th
e year end
ed 31 Ma
rch 20
20
. See n
ote 4 in the G
roup a
ccount
s for fur
the
r det
ail
s.
Value in u
se mo
del
s were us
ed to a
ss
ess t
he recover
ab
le am
ount of i
nvestm
ent
s in the m
ateria
l tra
ding s
ubsi
dia
rie
s. The key
a
ssum
ption
s in the
se mo
de
ls were c
as
h ﬂow proj
ec
tion
s coverin
g a three
-year pe
rio
d an
d dis
count rate
s. Su
f
ﬁcient h
eadro
om
bet
we
en recover
ab
le am
ount a
nd net b
oo
k valu
e wa
s ca
lculate
d and t
he Dir
ec
tor
s were comfo
r
ta
ble t
hat any rea
so
nab
ly po
ssib
le
chan
ges to key a
ssum
ption
s woul
d not resu
lt in a
n impa
irm
ent.
A lis
t of sub
sidia
r
y und
er
t
ak
ing
s is given i
n note 33 to th
e Group ﬁ
nan
cial s
tatem
ent
s.
40
. Debtors
202
2
2021
£000
£
000
De
bto
rs – a
mo
unt
s fa
ll
ing d
ue wi
th
in on
e yea
r:
Amo
unt
s
owed
by
Gro
up
un
der
ta
ki
ngs
69,
0
9
1
68,80
8
Ot
her
debto
rs
16
4
167
Prepaym
ent
s
an
d
accr
ued
inco
me
18
6
124
69,
4
4
1
6
9,
0
9
9
De
bto
rs – a
mo
unt
s fa
ll
ing d
ue af
t
er m
ore t
ha
n on
e yea
r:
Amo
unt
s
owed
by
Gro
up
un
der
ta
ki
ngs
2
,0
33
4,
588
2
,03
3
4,5
88
Amo
unt
s owed by Grou
p und
er
t
ak
ings w
hich fa
ll du
e with
in one yea
r are no
n-i
nteres
t bea
rin
g an
d repayab
le on d
ema
nd.
Amo
unt
s owed by Grou
p und
er
t
ak
ings w
hich fa
ll du
e af
ter mo
re tha
n one yea
r bea
r interes
t at ma
rket intere
st r
ates.
Amo
unt
s owed by Grou
p und
er
t
ak
ings a
re pre
sente
d af
ter p
rovisio
n for cred
it ri
sk.
41.
T
rade and other credit
ors – amounts falling due within one y
ear
202
2
2021
£000
£
000
Ba
nk
overd
ra
f
t
s
2
,4
07
4,
637
T
ra
de
cre
dito
rs
4
46
371
T
a
x
ation
an
d
so
cial
se
curi
ty
54
50
Lease
liabilitie
s
32
16
Accru
al
s
an
d
d
efer
red
inco
me
801
1
,1
8
4
Amo
unt
s
owed
to
G
roup
u
nde
r
ta
kin
gs
104,091
105,442
Ban
k
lo
ans
1,
331
1,47
3
Ot
her
loa
ns
70
40
1
0
9,
2
3
2
113
,
2
13
The G
roup ha
s a U
K mult
i-cur
renc
y net overd
raf
t f
acilit
y w
ith a £nil n
et lim
it an
d a £1
2.5 m
illio
n gros
s limi
t. The overdr
af
t
s bea
r
intere
st at b
et
ween 2.0% and 4.5% ab
ove prevai
ling b
ank b
as
e rate
s. At 31 March 20
22, Ca
rclo plc’s overdra
f
t of £2.4 milli
on (20
21
:
£4
.6 milli
on) has be
en re
cogni
sed w
ithi
n ca
sh a
nd ca
sh d
epo
sit
s whe
n cons
olid
ated.
Ban
k loa
ns in
clude £
33.8 mill
ion (20
21
: £33.8 m
illio
n
) se
cured on t
he a
ss
ets of t
he Gro
up. The ba
nk lo
an fa
ciliti
es ar
e secure
d by
gua
ran
tees f
rom cer
t
ai
n Grou
p compa
nie
s and by ﬁ
xed a
nd ﬂo
ating cha
rge
s over cer
t
ain of th
e a
sset
s of a nu
mbe
r of the G
roup’s
comp
anie
s. Ba
nk loa
ns in
cur intere
st at b
et
ween 1.
9% a
nd 4.5% above pr
evail
ing ba
nk ba
s
e rates.
As p
ar
t of t
he de
bt res
tru
ctu
rin
g which co
nclud
ed on 14 Augus
t 20
20, additi
onal s
ecur
it
y wa
s gr
anted by t
he Comp
any to th
e ban
k
such th
at at 31 March 20
22, the g
ross v
alu
e of the Co
mpa
ny’s ass
ets s
ecure
d amo
unted to £168.3 millio
n (20
2
1
: £1
71
.5 mill
ion)
.
Amo
unt
s owed to Gro
up und
er
t
ak
ing
s which f
all du
e with
in on
e year are n
on-i
nteres
t bea
ri
ng an
d repaya
ble o
n dema
nd.
148
Carclo plc
Annu
al re
po
r
t an
d accoun
ts 2022
NOTES TO THE COMP
ANY
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
42. Creditors – amounts f
alling due after more than one y
ear
202
2
2021
£000
£
000
Ban
k
lo
ans
3
2
,
429
32,
33
9
Ot
her
loa
ns
52
59
Amo
unt
s
owed
to
G
roup
u
nde
r
ta
kin
gs
2
,9
2
2
2,8
81
Lease
liabilitie
s
75
12
3
5,
478
35,291
Amo
unt
s owed to Gro
up und
er
t
ak
ing
s which f
all du
e af
ter m
ore tha
n one yea
r bea
r intere
st at ma
rket inte
rest r
ates.
43. Deferred tax assets and liabilities
Defe
rred t
a
x a
s
set
s and l
iabi
liti
es are at
t
rib
uta
bl
e to the fol
lowin
g:
A
ssets Liabi
lities
Net
202
2
2021
2022
2
021
2
022
202
2
£000
£
000
£
000
£
000
£000
£
000
T
a
x
los
se
s
6
69
—
—
—
669
—
Ot
her
283
218
—
—
283
218
Defe
rred t
a
x a
s
set
s
952
218
—
—
952
218
Defe
rred t
a
x a
s
set
s have not bee
n reco
gnis
ed in re
spe
ct of t
he foll
owin
g items:
202
2
2021
£000
£
000
T
a
x
los
se
s
–
tr
adi
ng
3
,7
70
4,0
90
T
a
x
los
se
s
–
c
api
ta
l
50
35
T
a
x
los
se
s
–
n
on-tr
adin
g
312
353
Empl
oyee
be
neﬁt
s
6,
333
7,
0
8
6
T
an
gibl
e
ﬁ
xed
a
ss
et
s
13
7
76
Ot
her
—
57
10,6
02
11
,
6
9
7
Defe
rred t
a
x a
s
set
s have not bee
n reco
gnis
ed on t
he ba
lan
ce she
et to the e
x
tent that t
he und
erl
ying t
imin
g dif
fer
ences a
re not
ex
pe
cte
d to revers
e. The natu
re of the t
a
x re
gime
s in cer
t
ai
n of the re
gio
ns in wh
ich Ca
rclo op
erate
s are su
ch that t
a
x lo
sse
s may
ar
ise even t
houg
h the b
usin
ess i
s proﬁt
ab
le. This s
ituat
ion is e
xp
ec
ted to con
tinue i
n the m
ediu
m term. A
n increa
se in d
efer
red t
a
x
los
se
s recog
nise
d a
s a defer
red t
a
x a
ss
et a
s at 31 March 20
22 is b
a
sed u
pon t
he lates
t ap
proved b
usin
ess p
lan a
nd pro
ﬁta
bil
it
y
levels t
here
in. Cap
it
al lo
ss
es wil
l be re
cogni
sed at t
he po
int whe
n a tra
ns
act
ion gi
ves ri
se to an of
fs
eta
bl
e cap
it
al ga
in; this wa
s not
the c
as
e at 31March 2022. Simila
rly
, non-tr
adi
ng lo
sse
s will o
nly b
e util
ise
d agai
nst f
utu
re non
-tradi
ng proﬁ
ts. N
o such n
on-tr
adin
g
proﬁt
s ar
e fores
een at 31 Ma
rch 20
22. T
rad
ing l
oss
es wi
ll onl
y be ut
ilis
ed aga
ins
t fut
ure tr
adin
g proﬁt
s; as s
uch, a £0
.
7 milli
on
defer
red t
a
x cre
dit ha
s b
een re
cogn
ise
d in the i
ncome s
tate
ment u
pon re
cogn
itio
n of UK d
eferre
d ta
x a
ss
ets.
The t
a
x l
oss
es at 31 March 2022 are ava
ilab
le to ca
rr
y fo
r
war
d with
out ti
me res
tr
ict
ion.
Moveme
nt in defe
rre
d ta
x dur
ing th
e year:
Balanc
e
Balance
as
at
Recognised
Recogni
sed
as at
1
A
pr
21
in in
co
me
i
n eq
uit
y
31 M
ar 2
2
£000
£000 £000
£000
T
a
x
los
se
s
—
669
—
669
Ot
her
21
8
65
—
283
218
73
4
—
9
52
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
149
Carclo plc
Ann
ual re
po
r
t an
d accoun
ts 2022
Moveme
nt in defe
rre
d ta
x dur
ing th
e pri
or year
:
Balanc
e
Balance
as
at
Rec
ognised
Recognised
as
at
1 Ap
r 20
i
n in
com
e
in e
qu
it
y
31 Ma
r 21
£000
£000
£
000 £
000
Ot
her
—
21
8
—
21
8
—
21
8
—
21
8
44. Pension liability
The G
roup o
per
ates a deﬁ
ned b
eneﬁ
t UK p
ensi
on sch
eme w
hich provi
des p
ens
ion
s ba
sed o
n ser
vice a
nd ﬁna
l pay
.
The Co
mpa
ny is the sp
on
sor
ing e
mployer th
roug
hout t
he cur
rent an
d pri
or pe
rio
d an
d full d
isclo
sure
s in res
pec
t of th
e pla
n are
given i
n note 2
4 of the G
roup ﬁ
nanci
al s
tatem
ent
s. On 14 Augus
t 20
20
, addi
tio
nal s
ecuri
t
y wa
s gra
nted by th
e Comp
any to the
sche
me tr
us
tees s
uch that at 31 Ma
rch 20
22, the gro
ss va
lue of th
e Comp
any’s as
set
s se
cured a
mounte
d to £1
68.3 mil
lion (202
1
:
£1
71
.5 million)
.
45. R
eserves
The Co
mpa
ny maint
ai
ns an e
mpl
oyee share ow
ner
shi
p pla
n for the b
en
eﬁt of emp
loyees a
nd w
hich ca
n be u
sed i
n conjun
cti
on
wit
h any of the G
roup’s share o
ption s
chem
es. A
s at 31 March 2022, the pla
n hel
d 3,0
77 sha
res (20
21
: 3,0
77 sh
are
s
)
. The o
rigi
nal
cos
t of the
se sha
res w
as £0.
003 mil
lion (202
1
: £0.
003 mill
ion)
. T
he cos
t of the s
hare
s ha
s be
en char
ged ag
ain
st th
e proﬁt a
nd lo
ss
accou
nt.
46. Contingent liabilities
The Co
mpa
ny has e
ntered i
nto cross-
gua
ra
ntee a
rra
ng
eme
nts rel
ating to t
he ba
nk bo
rrowi
ngs of i
ts U
K and I
ndia s
ubsi
diar
y
ope
rati
ons. T
he ma
xi
mum ob
ligat
ion un
der th
es
e arr
an
gem
ent
s at 31 March 20
22 wa
s £ni
l (2
02
1
: £0.5 milli
on
).
The
re are cont
ing
ent lia
bili
ties a
ri
sing in t
he ord
inar
y cour
se of b
usin
es
s, in res
pec
t of li
tigati
on, whi
ch the Di
rec
tor
s be
lieve will n
ot
have a signi
ﬁca
nt ef
fec
t on th
e ﬁnan
cial p
osit
ion of t
he Com
pany or G
roup.
47
. Proﬁt and loss account
The p
roﬁt af
te
r ta
x for th
e year dea
lt wi
th in th
e account
s of the Co
mpa
ny amo
unts to £1.
988 mil
lion (202
1
: £0.
1
81 millio
n
) which,
af
ter di
vid
end
s of £nil (20
21
: £nil), give
s a reta
ine
d proﬁt fo
r the year o
f £1
.
988 mil
lion (202
1
: £0.
1
81 millio
n
)
.
48. R
elated parties
The Co
mpa
ny has a re
lated p
ar
t
y rel
ation
ship w
ith it
s sub
sid
iar
ies (see note 33), its D
irec
tor
s an
d exe
cutive of
ﬁce
rs, a
nd th
e Gro
up
pen
sio
n sche
me. There a
re no tr
an
sac
tio
ns that a
re requ
ired to b
e dis
clos
ed in re
latio
n to the G
roup’s 60% dorma
nt sub
sidia
r
y
Platform Diagnostics Limited.
T
ra
ns
act
ion
s with re
lated p
ar
ti
es are s
et ou
t in note 32 of the G
roup ﬁna
ncia
l st
ateme
nts.
In addition to this
:
•
intere
st p
ayabl
e to Group co
mpa
nie
s duri
ng the p
er
iod wa
s £0.3 milli
on (20
21
: £0
.3 mil
lion) and in
teres
t recei
vab
le fro
m Grou
p
comp
anie
s dur
ing th
e per
io
d wa
s £
0.
1 milli
on (20
21
: £0
.2 mill
ion)
;
•
royalt
ies we
re receive
d from G
roup co
mpa
nies d
urin
g the p
eri
od tot
alli
ng £1
.6 milli
on (20
21
: £1
.2 milli
on
);
•
man
agem
ent fee i
ncom
e wa
s receive
d from G
roup co
mpa
nies d
urin
g the p
eri
od tot
alli
ng £1
.2 milli
on (20
21
: £1
.3 mil
lion)
; and
•
divi
den
ds were re
ceived f
rom G
roup com
pan
ies du
rin
g the pe
rio
d tota
llin
g £1
.7 milli
on (20
21
: £0
.
9 m
illio
n
)
.
Dur
ing t
he curre
nt pe
rio
d the Co
mpa
ny’
s le
ndin
g ban
k receive
d £0
.5 mill
ion (20
21
: £1
.3 mil
lion) and th
e Comp
any rece
ived a fu
r
the
r
£0
.2 milli
on in re
spe
ct of d
ist
rib
utio
ns mad
e by the ad
minis
tr
ator
s of Wip
ac Ltd follow
ing th
e Comp
any’s disp
osa
l of Wi
pac Ltd a
s a
sub
sidia
r
y on 20 De
cemb
er 202
0. £
0.
6 mill
ion wa
s p
repa
id aga
ins
t the te
rm lo
an a
nd, in acco
rdance w
ith th
e facil
itie
s agre
eme
nt,
£0
.
1 mill
ion wa
s ret
ai
ned by th
e Comp
any
.
Remun
erat
ion of th
e Dire
cto
rs
, who a
re consi
dere
d to be th
e key manag
eme
nt per
so
nne
l of the Co
mpa
ny
, is dis
clo
sed i
n the
audi
ted pa
r
t of th
e Dire
cto
rs’ rem
une
ratio
n repo
r
t on p
age
s 57 to 75.
150
Carclo plc
Annu
al re
po
r
t an
d accoun
ts 2022
NOTES TO THE COMP
ANY
FINANCIAL ST
A
TEMENTS
continued
for the year ended 31 March 202
2
49
. Accounting estimat
es and judgements
The p
repa
rati
on of th
e ﬁnan
cial s
tatem
ent
s in confor
mit
y w
ith FRS 101 require
s mana
gem
ent to ma
ke judge
ment
s, es
tim
ates an
d
a
ssum
ption
s that af
fe
ct th
e app
lic
ation o
f pol
icies a
nd rep
or
te
d am
ount
s of as
set
s an
d liab
ilit
ies, i
ncome a
nd e
xp
ens
es.
The e
sti
mates a
nd a
ssum
ptio
ns are b
as
ed o
n his
toric
al e
xp
eri
ence a
nd va
rio
us othe
r fac
tor
s that a
re be
lieved to b
e reas
ona
ble
und
er the ci
rcumst
an
ces. Th
es
e est
imates a
nd a
ss
umptio
ns for
m the b
as
is for ma
ki
ng jud
gem
ent
s abo
ut th
e car
r
yin
g val
ues of
a
sset
s an
d liab
ilit
ies t
hat are not rea
dily a
ppa
rent f
rom othe
r sou
rces. Ac
tua
l resu
lts m
ay dif
fer fro
m the
se e
stim
ates.
The e
sti
mates a
nd und
erl
ying a
s
sumpt
ions a
re reviewe
d on a
n ong
oing b
as
is. Revis
ions to a
ccountin
g es
timate
s are re
cogni
sed i
n
the p
eri
od in w
hich th
e est
imate is rev
ise
d if the rev
isio
n af
fec
ts o
nly th
at per
iod, o
r in the p
eri
od of revi
sion a
nd f
uture p
er
iod
s if
the rev
isio
n af
fec
ts b
oth curre
nt an
d fut
ure pe
rio
ds.
The fo
llowi
ng are t
he cri
tica
l jud
gem
ents a
nd key sou
rces of e
stim
ation u
ncer
t
ai
nty t
hat the D
irec
tor
s have mad
e in the p
roces
s of
ap
plyi
ng the Co
mpa
ny’s accountin
g pol
icies a
nd th
at have the mos
t sig
niﬁc
ant ef
fe
ct o
n the a
mount
s reco
gnis
ed in t
he ﬁna
ncia
l
st
ateme
nts. T
hes
e sho
uld b
e read in con
junc
tio
n with t
he sig
niﬁc
ant accou
nting p
oli
cies p
rovide
d in th
e notes to th
e ﬁnan
cial
st
atem
ent
s.
Going concern
Ke
y judgements
Ma
nagem
ent ha
s e
xercise
d jud
gem
ent over th
e likelih
oo
d of the Co
mpa
ny to be ab
le to conti
nue to op
er
ate with
in it
s availa
ble
facil
itie
s an
d in accorda
nce wi
th it
s covenant
s for th
e t
welve mo
nths f
rom the d
ate of sign
ing th
ese ﬁ
nanci
al s
tatem
ent
s.
Thisd
eter
mine
s whet
her th
e Comp
any sho
uld o
per
ate the g
oing co
ncer
n ba
sis of p
repa
rati
on for th
es
e ﬁnan
cial s
tatem
ent
s.
Pension assumptions
Note 24 conta
ins info
rmati
on ab
ou
t mana
gem
ent
’s estim
ate of the ne
t liab
ilit
y for d
eﬁne
d be
neﬁt o
blig
ation
s and t
heir r
isk
fac
tor
s. Th
e pen
sion li
abi
lit
y at 31 March 2022 amo
unt
s to £26.0 million (202
1
: £
37
.
3 mill
ion)
.
Ke
y sources of estimation unc
ertainty
The va
lue o
f deﬁne
d be
neﬁt p
ensi
on pl
an lia
bili
tie
s is dete
rmin
ed by lo
ng-ter
m ac
tuar
ial a
s
sumpti
ons. T
hes
e as
sum
ption
s inclu
de
dis
count r
ates, inﬂat
ion r
ates an
d mor
t
al
it
y rate
s. Dif
fe
rence
s ari
sing f
rom ac
tua
l ex
pe
rie
nce or f
uture cha
ng
es in a
ss
umptio
ns wi
ll
be reﬂ
ec
ted in th
e Comp
any’s compre
hen
sive inco
me. The Co
mpa
ny exercis
es it
s jud
gem
ent in d
eterm
inin
g the a
ssu
mptio
ns to
be ad
opted, af
ter dis
cuss
ion w
ith a qua
liﬁ
ed ac
tua
r
y
. D
eta
ils of t
he key actu
ar
ial a
ssu
mptio
ns us
ed a
nd the s
ens
itiv
it
y of the
se
a
ssum
ption
s are in
clude
d in note 24.
The s
chem
e intro
duced a r
ight fo
r mem
ber
s to Pens
ion In
creas
e E
xchan
ge (“PIE”) at retire
ment i
n the year to 31 Ma
rch 20
22 via a
De
ed of A
mend
ment a
nd com
muni
catio
n to defer
red m
emb
er
s. Having t
aken a
ctu
ar
ial ad
vice, the E
xe
cutive ma
nage
ment h
as
exe
rcised j
udg
eme
nt that, sim
ilar to t
he Br
idg
ing Pens
ion O
ption a
dopte
d la
st year, 40% of memb
er
s will t
ake th
e PIE opt
ion at
retire
ment. T
his es
tim
ate impa
ct
s on th
e pa
st s
er
vice cre
dit re
cogn
ise
d as a
n exce
ptiona
l ite
m in the in
come s
tate
ment.
V
aluation of in
v
estments in subsidiary undertakings
Note 39 cont
ai
ns infor
mati
on ab
out m
anag
eme
nt
’
s es
timate
s of the re
covera
ble a
mou
nt of inves
tment
s in su
bsi
diar
y
undert
akings and their
risk factors.
Ke
y judgements
Ma
nagem
ent ha
s e
xercise
d jud
gem
ent over th
e unde
rly
ing a
ssu
mptio
ns wi
thin th
e val
uatio
n mod
els. T
hes
e are key fac
tor
s in
thei
ras
se
ssm
ent of wh
ethe
r the
re is any imp
air
men
t in the
se inves
tme
nts.
As s
et ou
t in more d
eta
il in n
ote 39
, the re
covera
ble a
mou
nts a
re ba
se
d on va
lue in u
se a
nd fa
ir val
ue le
ss cos
ts o
f disp
os
al
ca
lculati
ons. Th
e use o
f the va
lue in u
se m
etho
d requ
ires th
e es
timati
on of f
uture c
as
h ﬂows a
nd th
e choice of a d
isco
unt rate in
orde
r to cal
culate th
e pres
ent va
lue of t
he fu
ture ca
sh ﬂ
ows. Th
e use o
f the fa
ir va
lue l
ess co
st
s to sel
l meth
od req
uire
s the
es
timati
on of th
e fai
r valu
e of the i
nvestm
ent in t
he sub
sidi
ar
y un
der
t
ak
ing a
nd of a
ss
ociate
d cos
ts of di
spo
sa
l.
R
ecognition of deferred tax assets
Note 43 cont
ai
ns infor
mati
on ab
out t
he defe
rre
d ta
x a
sset
s reco
gnis
ed in t
he st
atem
ent of ﬁna
ncia
l pos
itio
n.
Ke
y judgements
Ma
nagem
ent ha
s e
xercise
d jud
gem
ent over th
e level of fu
ture t
a
x
ab
le proﬁ
ts ag
ain
st wh
ich to reli
eve the Comp
any’s defer
red
ta
xa
sse
ts. O
n the b
as
is of thi
s judg
eme
nt, £0
.
9 mi
llio
n defer
red t
a
x a
ss
ets have be
en re
cogni
sed at t
he pe
rio
d end.
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
ADDITION
AL INF
ORMA
TION
STR
A
TEGI
C REP
ORT
151
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
202
2
2021 20
20
201
9
1
2018
1
£000
£
000 £
000
£000
£
000
Gr
oup t
ot
al:
Reven
ue
12
8
,
5
76
107
,
5
6
4
14
6
,
2
8
8
14
4
,
8
51
14
6
,
214
Underlying
operating
proﬁt
6,096
4,840
4,
365
1
,31
5
10,8
1
1
CO
VID
-
related U
S govern
ment g
ran
t incom
e
2
,08
7
—
—
—
—
Op
erat
ing pro
ﬁt befo
re except
iona
l item
s
8,
183
4,840
4,3
65
1
,31
5
10,8
1
1
E
xceptio
nal
item
s
7
21
4,438
(8,779
)
(1
3,
908)
(904)
Op
erat
ing
p
roﬁt
/
(los
s)
8
,9
0
4
9
,278
(4,
4
1
4
)
(1
2,5
93
)
9
,
907
Net
ﬁna
ncing
charg
e
(2
,9
8
9
)
(2,6
59) (2,58
5)
(2,06
1)
(1
,7
40)
Proﬁt
/
(lo
ss)
b
efore
t
a
x
5
,9
1
5
6,6
1
9
(6,
999)
(1
4,654)
8,
16
7
Inco
me
t
a
x
(
ex
pe
nse)/
credi
t
(8
0
9)
(457) (1
,4
49
)
(3,
978
)
325
Proﬁt
/
(lo
ss) afte
r ta
x but b
efore l
oss o
n disp
os
al of
discontinued
operations
5,
106
6,
1
62
(8,44
8)
(1
8,632
)
8,49
2
Underlying
operating
proﬁt
6,096
4,840
4,365
1,31
5
10,8
1
1
Add b
ack: Am
or
t
isati
on of int
an
gib
le a
sse
ts
203
206
1
72
279
281
Und
erl
ying ea
rni
ngs b
efore in
teres
t, ta
x an
d am
or
tis
atio
n (“EBIT
A
”)
6,29
9
5,046
4,537
1,5
9
4
1
1,09
2
Add b
ack: D
epre
ciation o
f prop
er
t
y
, p
lant a
nd e
quip
ment
6,825
5,
77
4
6,7
65
5,260
4,7
32
Underlying
earnings before
interest, tax, depreciation
and
amortisati
on (
“EBITD
A
”)
13
,1
2
4
10,
820
1
1
,302
6,854
15,8
2
4
Continuing
operations:
Reven
ue
12
8
,
5
76
1
0
7
,564
1
10
,506
1
05,33
8
104,681
Underlying
operating
proﬁt
6,096
4,840
7
,31
3
6,390
6,
1
58
CO
VID
-
related U
S govern
ment g
ran
t incom
e
2
,08
7
—
—
—
—
Op
erat
ing pro
ﬁt befo
re except
iona
l item
s
8,
183
4,8
40
7
,31
3
6,390
6,
158
E
xceptio
nal
item
s
7
21
4,4
9
0
(5,4
70
)
(
4,50
7)
(904
)
Op
erat
ing
p
roﬁt
8
,9
0
4
9
,
330
1,843
1
,883
5,25
4
Net
ﬁna
ncing
charg
e
(2
,9
8
9
)
(2
,6
59) (
2,
3
8
8)
(1,8
91)
(1,7
49)
Proﬁt
/
(lo
ss)
b
efore
t
a
x
5
,9
1
5
6,6
71
(545)
(8)
3,505
Underlying operat
ing pro
ﬁt from
contin
uing operat
ions
6
,096
4,8
40
7
,31
3
6,390
6,
1
58
Add b
ack: Am
or
t
isati
on of int
an
gib
le a
sse
ts fro
m conti
nuing o
pe
ratio
ns
203
206
1
72
1
7
6
1
70
Und
erl
ying ea
rni
ngs b
efore in
teres
t, ta
x an
d am
or
tis
atio
n
(“EBIT
A
”) from co
ntinui
ng op
erat
ion
s
6,29
9
5,046
7
,485
6,566
6,328
Add b
ack: D
epre
ciation o
f prop
er
t
y
, p
lant a
nd e
quip
ment f
rom
continuing
op
erations
6,825
5,
77
4
5,
951
4,3
4
4
3,
937
Underlying
earnings before
interest, tax, depreciation and
amortis
ation (
“EBITD
A
”) from continu
ing opera
tions
1
3
,12
4
10
,82
0
13,
43
6
10
,
910
10,
265
FIVE YEAR SUMMAR
Y
152
Carclo plc
Annu
al re
por
t an
d accou
nts 2022
FIVE YEAR SUMMAR
Y
continued
202
2
2021 20
20
201
9
1
2018
1
£000
£
000 £
000
£000
£
000
Underlying operat
ing pro
ﬁt margin
4.7%
4.5% 3.0% 0.
9
%
7
.4
%
Und
erl
ying o
per
atin
g proﬁt m
argi
n from con
tinui
ng op
erat
ions
4.7%
4.5%
6.6
%
6.
1%
5.
9
%
Retur
n on sa
le
s (
und
erly
ing EBI
T
A mar
gin)
4.
9%
4
.
7
%
3
.1%
1
.1%
7
.
6%
Retur
n on sa
le
s (
und
erly
ing EBI
T
A mar
gin) from conti
nuing o
per
atio
ns
4.
9%
4.7% 6.8% 6.2% 6.0%
Ef
fec
tive
t
a
x
rate
12
.
2
%
5.8% -
14.6
%
-
27
.2%
-
4.
1
%
Und
erl
ying ef
fec
tive t
a
x rate
26
.0%
21
.0
%
27
.8%
1
9
.2% 20
.6
%
Ear
nin
gs/
(lo
ss) per sha
re
2
7.9
p
1
0.
1
p
-
1
5.5p -
25.4p
1
1
.6p
Underlying earnings/
(loss
) per sh
are
3
3
.1
p
2.4p
0.4p -
2.
7
p
9
.8p
Net
debt
(32,
4
05
)
(27
,596
)
(27
,357) (38,481
)
(31
,4
76
)
Ca
pit
al em
ployed (equi
ty + n
et deb
t)
56,821
35,507
36,088
50,
7
48
83,495
Average c
api
ta
l emp
loyed (equit
y + net d
ebt)
4
6
,1
6
4
35,79
8
43,4
1
8
6
7
,
1
2
2
6
3,
730
Retur
n on ca
pit
al e
mpl
oyed (
exclu
ding p
ens
ion lia
bil
itie
s
)
7.
8
%
6.6%
5.0%
1.2%
10
.
1
%
Ca
pit
al e
xp
endi
ture a
s a mul
tip
le of de
preciat
ion
1.
4
x
1.8
x
1.
5
x
1.
5
x
2
.0
x
Average n
umbe
r of emp
loyees i
n year
1,0
62
1,0
4
8
1,47
5
1,
5
01
1,
4
4
2
1.
The co
mpa
rat
ive in
form
atio
n for 2018 and 2019 has b
een r
e-p
res
ente
d du
e to a dis
cont
inu
ed o
per
ati
on, na
me
ly th
e LED T
e
chn
olo
gie
s se
gm
ent
com
pri
sin
g t
wo Wip
ac b
usi
nes
se
s whi
ch wa
s di
spo
se
d of dur
in
g the yea
r en
din
g 202
0.
2.
Ea
rn
ing
s/(loss) pe
r sha
re is c
al
culate
d ba
se
d on p
roﬁt a
f
ter t
a
x
, at
tri
but
a
ble t
o equ
it
y ho
lde
r
s of the p
are
nt com
pa
ny
, i
nclu
din
g dis
cont
inu
ed
op
era
tio
ns an
d is af
t
er ex
cepti
ona
l an
d se
pa
rate
ly di
sclo
se
d ite
ms.
3.
Un
der
ly
ing ea
rn
ing
s/(los
s
) pe
r sha
re is c
al
culate
d ba
se
d on p
roﬁt a
f
ter t
a
x
, at
tri
bu
ta
ble t
o equ
it
y ho
lde
r
s of the p
are
nt co
mpa
ny
, i
nclu
din
g
dis
cont
inu
ed o
per
ati
ons a
nd i
s befo
re cha
rgi
ng ex
cepti
ona
l an
d se
pa
rate
ly di
sclo
se
d ite
ms.
ADDITION
AL INF
ORMA
TION
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
STR
A
TEGI
C REP
ORT
ADDITION
AL INF
ORMA
TION
153
Ca
rclo plc
Ann
ual r
epo
r
t an
d accou
nts 2022
INFORMA
TION FOR SHAREHOLDERS
(a) R
econciliation of non-GAAP ﬁnancial measures
202
2
2021
Not
es
£000
£
000
Proﬁt
for
t
he
p
eri
od
5,79
9
7,
4
1
2
Add b
ack: Proﬁ
t on dis
conti
nued o
pe
ratio
ns, net o
f ta
x
4
(69
3)
(
1
,1
9
8
)
Statutory proﬁt after tax from
continuing
operations
5,
106
6,
214
Add b
ack: In
come t
a
x e
xp
ens
e from co
ntinu
ing op
er
ation
s
3, 1
2
809
45
7
Proﬁt
before tax from
continuing oper
ations
5
,9
15
6
,
67
1
Add b
ack: Ne
t ﬁnan
cing cha
rge fro
m conti
nuing o
pe
ratio
ns
3, 1
1
2
,9
8
9
2,659
Operating pro
ﬁt from
continuing
operations
8
,9
0
4
9,
3
3
0
Less: E
xcepti
ona
l items f
rom cont
inui
ng op
erat
ions
9
(
7
21)
(4
,4
9
0)
Operating pro
ﬁt before
exceptional
items from
continuing
operations
8,
183
4,840
Less: COVID
-relate
d US gover
nme
nt gra
nt inco
me
(2
,0
87
)
—
Underlying
operating
proﬁt from
continuing
operations
6,0
96
4,8
4
0
Add b
ack: Am
or
t
isati
on of int
an
gib
le a
sse
ts fro
m conti
nuing o
pe
ratio
ns
15
203
206
Underlying
earnings before
interest, tax and amortisation (“EBIT
A
”) from c
ontinuing oper
ations
6,
299
5,04
6
Add b
ack: D
epre
ciation o
f prop
er
t
y
, p
lant a
nd e
quip
ment f
rom conti
nuin
g ope
rati
ons
16
6,825
5,77
4
Underlying
earnings before
interest, tax, depreciation and amortisation (
“EBITDA
”) from
continuing operations
1
3
,1
2
4
10
,820
Proﬁt b
efore t
a
x fro
m conti
nuin
g ope
ratio
ns
5
,9
15
6
,
67
1
Less: E
xcepti
ona
l items f
rom cont
inui
ng op
erat
ions
9
(
7
21)
(4
,
49
0)
Less: COVID
-relate
d US gover
nme
nt gra
nt inco
me
(2
,0
87
)
—
Underlying
proﬁt before
tax from continui
ng opera
tions
3
,1
0
7
2
,1
8
1
Income tax expense from
continuing
operations
3,
1
2
809
457
Add b
ack: E
xcept
iona
l ta
x ex
pe
nse f
rom cont
inuin
g ope
rati
ons
—
—
Group underl
ying tax expense from
continuing
operations
809
457
Group statutory effective
tax rate f
rom continuin
g operations
13
.7
%
6
.9
%
Gr
oup u
nd
erl
yin
g ef
fe
ct
ive ta
x ra
te fr
om c
ont
in
uin
g ope
rat
io
ns
26
.0%
21.
0
%
Ca
sh at ba
nk a
nd in ha
nd
20
1
2,34
7
1
5,485
Loan
s
an
d
bo
rrow
ings
–
cur
rent
2
2
(
2
,9
4
8
)
(5
,0
8
4)
Loan
s and b
or
rowing
s – non
-cur
rent
22
(41,
8
0
4)
(
3
7,
9
9
7
)
Net debt
(32,
4
0
5)
(
2
7,
5
9
6
)
Add
back
:
Leas
e
li
abil
itie
s
10,
870
7,
0
5
5
Net debt ex
cluding lease liabilities
(21,
5
3
5)
(
2
0
,
5
41)
In
for
mat
io
n on co
ns
oli
da
ted s
ta
te
men
t of c
as
h ﬂows
Net cash from oper
ating activities
2
,9
6
9
8,397
Less: Net c
a
sh us
ed in o
per
ating a
cti
viti
es fro
m dis
contin
ued o
per
atio
ns
—
52
Net cash from
operating
activities from
continuing
operations
2
,9
6
9
8,4
4
9
Net c
as
h use
d in inves
tin
g act
ivit
ies
(
4
,1
4
9
)
(6
,0
0
6)
Less: Net c
a
sh fro
m invest
ing ac
tiv
itie
s from d
isco
ntinu
ed op
erat
ion
s
4
(6
93)
(
1,
2
5
0)
Ne
t ca
sh u
se
d in inve
st
ing a
ct
ivi
ti
es fr
om c
ont
in
uin
g ope
rat
io
ns
(4
,
8
42)
(
7,
2
5
6
)
Net c
as
h (
use
d in)
/from ﬁna
ncin
g ac
tivi
ties
(2
,
493
)
5,050
Less: Net c
a
sh us
ed in ﬁn
ancin
g ac
tivi
ties f
rom di
scont
inue
d ope
rati
ons
—
—
Ne
t ca
sh (use
d in)/
fro
m ﬁn
an
ci
ng ac
tiv
it
ie
s fro
m con
ti
nui
ng op
era
ti
on
s
(2
,
493)
5,050
15
4
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
INFORMA
TION FOR SHAREHOLDERS
continued
(b
) Share price history
Share price per 5 pence ordinary share at close of business 31 March 1982: 11.6 pence
Ca
le
nda
r
ye
ar
Low
H
igh
2008
47
.5p
96.
0p
2009
4
8.5p
150.5p
20
10
1
33.5p
24
1.5p
2
0
11
2
3
9.
0
p
3
4
9.
0
p
20
1
2
287
.5
p
503.0p
20
1
3
257
.0p
501
.0p
2014
85
.2
5p
292.5
p
20
15
87
.0
p
169.75
p
20
16
10
6
.7
5
p
169.0
p
2017
120.0p
180.0
p
2
0
1
8
7
7.
2
5
p
1
2
7.
5
p
20
1
9
10
.3
p
81
.5p
2020
3
.75p
2
3.0
p
202
1
15
.15p
71.0
p
2022
18.6p
41
.0p
(
c) Share price information
Sha
re pr
ice infor
matio
n can b
e foun
d on th
e intern
et at
w
w
w.ca
rc
lo.c
o.uk
.
(
d) Further information on Carclo plc
Fur
ther i
nform
ation o
n Ca
rclo plc c
an b
e found o
n the i
ntern
et at
w
w
w.car
cl
o.co
.uk
.
ADDITION
AL INF
ORMA
TION
CORP
OR
A
TE GOVERN
AN
CE
FIN
ANCI
AL S
T
A
TEMEN
TS
STR
A
TEGI
C REP
ORT
ADDITION
AL INF
ORMA
TION
155
Carclo plc
Annua
l rep
or
t a
nd acco
unt
s 20
22
SHAREHOLDER ENQUIRIES
For all e
nqu
irie
s ple
as
e cont
act Equi
niti, o
ur Sha
re Regi
str
ar
s,
who a
re avail
abl
e to ans
wer any qu
er
ies you have in rel
ation to
your
shareholding.
Online:
A ra
nge of h
elp is ava
ila
ble o
nlin
e at
help.shareview
.co.uk
–from h
ere you wi
ll be a
ble to s
ecure
ly ema
il Equin
iti.
By phone:
From the U
K, ca
ll 0371 384 224
9
.
From overs
eas
, cal
l +44 (0)
12
1 4
15 7
04
7
. Line
s are op
en
bet
we
en 8.3
0am to 5.
30p
m, Mon
day to Friday (
exclu
ding p
ubli
c
hol
idays in Eng
lan
d and Wal
es)
.
By post:
Equini
ti, Asp
ec
t Ho
use, Sp
ence
r Road, La
ncin
g, W
es
t Sus
se
x
BN
9
9 6DA
.
Equini
ti als
o provi
de an o
nlin
e ser
v
ice for sh
areh
old
er
s.
T
oma
nage you
r share
hol
ding o
nlin
e ple
as
e see Equ
initi
’s
Sha
review s
er
vice at
w
w
w.
s
h
a
r
e
v
i
e
w.c
o
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u
k
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If you ar
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ady reg
iste
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ur
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ldin
gyouwill n
ee
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lde
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. Set
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g up a po
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t
foli
o will a
llow you to
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e at your own conven
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whe
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ou wil
l have access to a
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an
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GLO
SSAR
Y
Compound annual growth r
ate (“
CAGR”)
The g
eom
etri
c pro
gres
sion r
atio th
at provid
es a con
st
ant r
ate
of retur
n over a tim
e per
iod
Constant currency
Retra
nsl
ated at th
e prio
r year
’
s averag
e excha
nge r
ate. Includ
ed
to ex
pla
in the e
f
fec
t of chan
ging e
xchan
ge rate
s dur
ing vol
atile
times to assist the reader’s
under
stan
ding
Group capital expenditur
e
Non-current ass
et additions
Net bank interest
Intere
st re
ceiva
ble o
n ca
sh at b
ank l
ess in
teres
t payab
le on
ba
nk loa
ns a
nd overdra
f
ts. Re
por
ted in t
his ma
nner d
ue to th
e
glo
bal nat
ure of th
e Grou
p and i
ts ba
nk
ing ag
reem
ent
s
Net debt
Ca
sh a
nd ca
sh d
epo
sit
s le
ss lo
ans a
nd b
orrow
ings
. Use
d to
rep
or
t th
e overal
l ﬁnan
cial d
ebt of the G
roup i
n a man
ner th
at is
easy to u
nderst
and
Net debt e
xcluding lease liabilities
Net d
ebt, a
s deﬁn
ed a
bove, exclud
ing lea
s
e liab
ilit
ies. U
sed to
rep
or
t th
e overal
l non
-lea
sin
g debt of t
he Gro
up in a ma
nne
r
that is ea
sy to u
nde
rs
ta
nd
Operational gearing
Ratio of ﬁ
xed over
head
s to sa
les
Underlying
Adju
ste
d to exclud
e all e
xcepti
ona
l and s
epa
rate
ly dis
clos
ed
items
Underlying EBITD
A
Proﬁt b
efore inte
res
t, ta
x, d
epre
ciatio
n and a
mor
tis
atio
n
adju
ste
d to exclud
e all e
xcepti
ona
l and s
epa
rate
ly dis
clos
ed
items
Underlying earnings per share
Ear
nin
gs pe
r shar
e adjus
ted to e
xclud
e all e
xceptio
nal a
nd
separately disc
losed items
Underlying operating pr
oﬁt
Op
erat
ing pro
ﬁt adju
ste
d to exclu
de al
l except
iona
l and
separately disc
losed items
Underlying proﬁt before tax
Proﬁt b
efore t
a
x ad
jus
ted to excl
ude a
ll exce
ption
al an
d
separately disc
losed items
Operating pr
oﬁt before ex
ceptional items
Op
erat
ing pro
ﬁt adju
ste
d to exclu
de al
l except
iona
l item
s
156
Carclo plc
Ann
ual re
po
r
t an
d accoun
ts 2022
COMP
ANY AND SHAREHOLDER INFORMA
TION
Compan
y Secretary
Ang
ie Wakes FCG
R
egistered number
Regi
stere
d in Engl
and 19
62
49
R
egistered ofﬁce
Unit 5
Silkwood Court
Oss
ett
WF5
9T
P
T
elephone
: 0
1
92
4 268040
Email
: inv
estor
.rel
ations@carc
lo-plc.
com
Compan
y website
w
w
w.car
cl
o.co
.uk
R
egistrars
Equiniti
Aspect House
Spencer R
oad
La
ncin
g
W
est Sussex
BN
9
9 6DA
Auditor
Mazars LLP
30 O
ld Ba
iley
London
EC4M 7
AU
Solicitors
Addlesha
w Goddard LLP
3 Sover
eign Square
Sovereign
Street
Leeds
LS1
4ER
Bank
ers
HSBC UK Bank plc
1 Centen
ar
y S
quare
Birmingham
B1
1H
Q
Corporat
e brok
ers
Peel Hunt LLP
7th
Flo
o
r
100 Liverp
oo
l Street
London
EC2M 2A
T
Financial public relations
FTI Consulting Limited
200 Al
der
s
gate
Al
der
sg
ate Street
London
EC
1A
4H
D
Carclo plc
Annual repor
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0
22
REG
I
STE
RE
D O
FFIC
E:
UN
IT 5, SILK
WO
OD COURT
,
OSSET
T
, WF5 9TP
T +44 (0) 1
924 2
6804
0
w
w
w.car
cl
o.co
.uk
inv
estor
.relations@
carclo-
plc.com
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AR
Annual
General
Meet
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1 Sep
tem
ber 2
022
Inter
im res
ult
s for ha
lf year en
ding 3
0 Se
ptemb
er 20
22
Novemb
er 2022
Preli
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r
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lts fo
r year en
ding 31 Ma
rch 20
23
Jun
e 20
23
Ann
ual re
por
t fo
r year en
ding 31 Ma
rch 20
23
mai
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