Carclo profile image 02012019

Carclo

LN: CAR

£13.8m market cap

18.8p 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 H120 results show that the remaining businesses following the exit from Wipac in December provide a basis for a sustainable group going forward. The continuing businesses generated £56.1m revenues and £3.3m underlying EBIT. However, there remain significant challenges in reaching agreement on long-term funding with the lending bank and pension trustee. Our estimates will remain under review until these are resolved.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2018A 146.2 15.8 9.1 6.80 2.8 2.2
2019A 144.9 14.0 6.4 7.01 2.7 3.3
2020E N/A N/A N/A N/A N/A N/A
2021E N/A N/A N/A N/A N/A N/A
Industry outlook

Carclo has agreed the sale of Wipac Czech for a total consideration of €1.1m. €0.8m is cash which will help reduce group debt. Discussions regarding a potential sale of the principal Wipac UK business remain ongoing, with negotiations now in an advanced stage with a single party, so our estimates remain under review. If no disposal occurs, the board will assess other options for exiting this business.

Last updated on 02/01/2020
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 38.2 75.7 (76.5)
Relative* 30.1 70.1 (79.4)
52-week high/low 81.5p/10.3p
*% relative to local index
Key management
Antony Collins CEO
Mark Rollins Non-executive Chairman

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