Significant investment in plant capacity should sustain strong momentum at specialty chemicals outfit Carclo (CAR) which posts its half-year trading update on 12 October.

Speaking to Shares, chief executive Chris Malley maintains that expansion in its Chinese plant and plans to double the group’s Indian technical plastics manufacturing capacity in Bangalore by the end of the financial year should see earnings in that division rise from £64.3 million to £90 million within three years.

Malley is also keen to draw a line under the ill-starred CIT (conductive inkjet technology) business which, despite representing only negligible portion of group turnover, had a disproportionate effect on share price.

The CIT business was eye-catching with its innovative process allowing the digital printing of pure metals onto plastic films and moulded plastic parts. A plethora of target applications included touch screen technology, radio frequency ID tags, photovoltaic circuitry and de-misting elements. In June, the Ossett-based firm reported an exceptional charge of £31.7 million in the year to March 31, primarily due to £25.4 million of impairment costs in CIT which it has now exited.

Management maintains that the group’s LED business remains insulated from the greater part of the vicissitudes currently weighing on the majority of the automotive industry as the target markets of luxury and super cars are less vulnerable to significant fluctuations in production.