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

In June Carclo announced that it was working with customers to refocus the operation on low-volume high-end vehicle markets where it had previously been financially successful. This strategy is likely to result in a non-cash write down for FY19, value as yet undisclosed. Management is also preparing a detailed plan to return Wipac to profit over the next 18 months rather than incurring significant losses as at present. Carclo hopes to announce FY19 results by 31 July (previously set for 23 July). Our FY20 estimates and valuation 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

The group has recently received a number of approaches from parties, both trade and financial, who are interested in the potential acquisition of Wipac. We note that these discussions are still at an early stage.

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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