Carclo

LN: CAR

£14.4m market cap

19.6p 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 has announced that while the Technical Plastics and Aerospace divisions have started FY20 well, the costs associated with ramping up an unprecedented number of new low-volume lighting programmes at Wipac remain unacceptably high. Management is therefore reviewing its decision to move into the mid-volume vehicle market. We place our FY20 estimates and valuation under review until further information is provided when the FY19 results are announced in July.

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 1.6 1.5
2018A 146.2 15.5 9.1 9.8 2.0 2.3
2019E 140.5 13.9 6.3 6.5 3.0 3.0
2020E 150.1 15.6 7.6 7.9 2.5 0.7
Last updated on 25/06/2019
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 25/06/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 38.9
Forecast gearing ratio (%) 72
Price performance
%
1m
3m
12m
Actual (39.1) (48.1) (74.9)
Relative* (40.2) (49.7) (74.3)
52-week high/low 121.0p/19.6p
*% relative to local index
Key management
Mark Rollins Chairman
Sarah Matthews-DeMers FD

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