Last close As at 05/08/2026
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Market capitalisation
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Research: TMT
Carclo has exited from its loss-making Wipac business which has been acquired by Wuhu Anrui Optoelectronics, a manufacturer of LED-based automotive lighting. This ensures continuity for both customers and employees. Carclo’s pension scheme will receive £3.5m of the net proceeds of the sale while another £5.0m will be used to reduce debt. Our estimates will remain under review until the interims in mid-January.
Written by
Carclo |
Sale of Wipac completed |
Exit from Wipac business |
Tech hardware & equipment |
2 January 2020 |
Share price performance
Business description
Analysts
Carclo is a research client of Edison Investment Research Limited |
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Carclo has exited from its loss-making Wipac business which has been acquired by Wuhu Anrui Optoelectronics, a manufacturer of LED-based automotive lighting. This ensures continuity for both customers and employees. Carclo’s pension scheme will receive £3.5m of the net proceeds of the sale while another £5.0m will be used to reduce debt. Our estimates will remain under review until the interims in mid-January.
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
03/17 |
138.3 |
11.0 |
12.1 |
0.0 |
1.6 |
N/A |
03/18 |
146.2 |
9.1 |
9.8 |
0.0 |
1.9 |
N/A |
03/19 |
144.9 |
6.4 |
7.0 |
0.0 |
2.7 |
N/A |
03/20e |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items including the price concession on exit from the mid-volume automotive business and share-based payments. FY19 adjusted PBT is unaudited.
The Wipac business reported a £13.3m operating loss during FY19 and required substantial cash investment. The disposal enables Carclo to focus on its two remaining divisions, which the board believes provide a solid, cash-generative foundation to build on for the future. During FY19, underlying EBIT from the Technical Plastics division (CTP) increased by 3% to £6.8m as the operational improvement programme addressing labour shortages and programme delays began to deliver results. The second half was much stronger than the first, reaching 9.2% underlying EBIT margin. The Aerospace division delivered a 74% jump in underlying EBIT to £1.3m. These encouraging performances continued in H120.
The Optics business, which was previously a standalone entity within Wipac, remains part of Carclo. This business provides design and distribution capability for the injection moulded industrial lighting optics manufactured by CTP Czech. Optics generated £1.1m profit before tax during FY19.
The disposal also helps further reduce the group’s net debt, which has already reduced substantially from £38.5m reported at end FY19, and its IAS 19 pension deficit, which was £49.1m at end FY19. Carclo is now in a more stable financial position from which to continue the long-term funding and pension contribution negotiations which are key to its future.
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Research: Industrials
Renewi’s previously noted increasing confidence of improved ATM production volumes in 2020 have proved to be well founded as the ban on using thermally treated soil in the Netherlands has been lifted. This sets a positive backdrop for management’s forthcoming strategy update and an expected secondary listing on Euronext shortly. On unchanged estimates, it also brings into focus mid single-digit earnings multiples beyond the current year which, given the above, look low by conventional standards.