Carclo (www.carclo.co.uk), the global manufacturer of plastic components, has revealed plans to ‘exit’ its Cambridge-based diagnostics solutions operation.

The future of Carclo Diagnostics Solutions (CDS) has been the subject of a review, with a range of potential strategic options considered, including commercial partnerships, co-investments or divestment.

However, a key finding of the review was that an increased level of investment would be required, and it was not able to identify a credible strategic option to take the division forward.

With Carclo focused on its two main divisions — Technical Plastics and LED Technologies — the business has decided to discontinue its investment in CDS (currently about £1.5 million per year). An eventual closure expense of about £1 million, being a combination of non-cash and cash costs during the year ending 31 March 2017, is forecast as a one-off expense.

Chief executive Chris Malley said: “The group’s core focus and growth opportunities sit within our two main divisions, both of which are performing well and have excellent and exciting prospects. While CDS’s technical progress has been consistent, the board considers that now is the appropriate time to withdraw funding from this business, given the uncertainty over its future commercial success and the financial commitment required to take it forward.”