Carclo

LN: CAR

£28.2m market cap

38.45p 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

In January Carclo announced that the issues associated with initiating multiple low-volume lighting programmes in parallel that adversely affected H119 had continued throughout Q319, though progress on the mid-volume programmes was unaffected. Additionally, initiatives to improve margins in Technical Plastics had started to deliver results but at a slower rate than management expected at the interims.

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 3.2 3.0
2018A 146.2 15.5 9.1 9.8 3.9 4.5
2019E 140.5 14.5 6.9 7.1 5.4 4.6
2020E 150.1 15.6 7.6 7.9 4.9 1.4
Last updated on 22/03/2019
Industry outlook

As part of the programme to address these issues, Carclo has appointed an interim group COO, Stephen Nixon, with responsibility for all of the operations of the Technical Plastics and LED Technologies divisions. Stephen has a strong engineering background, with 15 years at the Ford Motor Company and a stint at Renold as group operations director in charge of 3,000 employees across 20 countries. Since 2007, Stephen has taken on interim CEO and COO roles for a range of underperforming engineering businesses, including automotive and lighting businesses.

Last updated on 22/03/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 37.8
Forecast gearing ratio (%) 68
Price performance
%
1m
3m
12m
Actual (17.8) (51.9) (55.8)
Relative* (17.9) (55.3) (56.9)
52-week high/low 121.0p/38.5p
*% relative to local index
Key management
Mark Rollins Chairman
Sarah Matthews-DeMers FD