Carclo

LN: CAR

£7.9m market cap

10.7p last close

Carclo is a specialist in high-precision plastic moulding principally in healthcare, optical and automotive applications. Its two main end markets are high volume medical consumables and low volume, very high value automotive lighting.

Investment summary

Carclo’s management has reached a formal agreement with the trustee regarding the level of pension contributions to be paid until January 2021. This has enabled the group to extend its existing borrowing facilities for the same period, with revised covenants and pricing more appropriate for Carclo’s current circumstances. Continuing discussions regarding a potential sale of the Wipac business mean that additional preparation is required before the FY19 results can be released, so the shares have been suspended. A specialist assembly line has already been acquired by the associated customer. Our FY20 estimates remain under review.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 138.3 17.0 11.0 12.1 0.9 0.8
2018A 146.2 15.5 9.1 9.8 1.1 1.3
2019E 140.5 13.9 6.3 6.5 1.6 1.6
2020E N/A N/A N/A N/A N/A N/A
Last updated on 01/08/2019
Industry outlook

During Q120 the performance of both the Technical Plastics and Aerospace Divisions was better than the prior year with the Technical Plastics Division also well ahead of management’s expectations. A general meeting is scheduled for 5 September because the group’s net asset value is less than half of the called-up share capital.

Last updated on 01/08/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 38.9
Forecast gearing ratio (%) 72
Price performance
%
1m
3m
12m
Actual (45.6) (54.9) (90.6)
Relative* (46.6) (55.6) (90.3)
52-week high/low 117.5p/10.7p
*% relative to local index
Key management
Mark Rollins Chairman
Sarah Matthews-DeMers FD

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