Carclo

LN: CAR

£16.2m market cap

22.1p 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

As discussed in our January update, during H119 LED divisional profitability was hit by starting all of the new lighting production programmes for the year during the period. This situation worsened during Q3 as production ramped up. Although action has been taken to bring additional machine capacity on stream and adopt more effective scheduling techniques, the costs of scrap, freight and production labour remained at higher than expected levels through Q419. We reduce both our FY19 PBT and EPS estimates by 9% to reflect this.

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 1.8 1.7
2018A 146.2 15.5 9.1 9.8 2.3 2.6
2019E 140.5 13.9 6.3 6.5 3.4 3.4
2020E 150.1 15.6 7.6 7.9 2.8 0.8
Last updated on 18/04/2019
Industry outlook

The other two divisions performed as an anticipated during FY19. Importantly, the trading statement notes that ongoing initiatives to improve margins in the Technical Plastics division have supported the anticipated second half recovery and year-on-year improvement in divisional operating profit.

Last updated on 18/04/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 38.9
Forecast gearing ratio (%) 72
Price performance
%
1m
3m
12m
Actual (47.3) (54.0) (77.4)
Relative* (48.8) (57.7) (78.0)
52-week high/low 121.0p/22.1p
*% relative to local index
Key management
Mark Rollins Chairman
Sarah Matthews-DeMers FD

Content on Carclo