Carclo profile image 02012019

Carclo

LN: CAR

£4.8m market cap

6.51p last close

Carclo is a global provider of value-added engineering solutions for the medical, optical and aerospace industries. It specialises in fine tolerance, injection moulded plastic parts for healthcare and optical applications.

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 1.0 0.8
2019A 144.9 14.0 6.4 7.01 0.9 1.1
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

The Technical Plastics division (CTP) increased revenues by 12% year-on-year to £52.4m through a combination of growth in the key medical diagnostic market, new programme wins and £1.3m favourable forex movements. Underlying divisional EBIT rose by 45% to £4.6m and divisional EBIT margin by 2.0pp to 8.9%. Aerospace revenues grew by 18% to £3.7m and underlying EBIT by 18% to £0.7m. This was driven by build rate increases at Airbus, market share gains by a key customer, improved levels of spares activity and a large customer increasing stocks ahead of Brexit.

Last updated on 04/06/2020
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 37.1 (31.5) (76.0)
Relative* 24.1 (25.9) (73.0)
52-week high/low 24.5p/3.8p
*% relative to local index
Key management
Antony Collins CEO
Matt Durkin-Jones CFO

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