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

Group revenues decreased by 1% y-o-y while underlying EBIT adjusted for exceptionals, including a price concession on exit from the mid-volume automotive business (effectively a revenue impairment), fell by £2.4m to £8.4m (unaudited). This reflects the deleterious impact of the issues at Wipac, which overshadowed underlying EBIT growth at both the Technical Plastics and smaller Aerospace divisions. The encouraging performances in these two divisions continued during H120, supporting the board’s view that they would make a solid, cash-generative foundation to build on for the future.

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
Mark Rollins Chairman
Antony Collins CEO
Ed Watkinson FD

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