Last close As at 05/08/2026
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Market capitalisation
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Research: TMT
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.
Written by
Carclo |
Stabilising the business |
Interim results |
Tech hardware & equipment |
21 January 2020 |
Share price performance
Business description
Analysts
Carclo is a research client of Edison Investment Research Limited |
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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.
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: Including discontinued operations. *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 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. CTP India, whose largest customer makes ATMs, also experienced a significant increase in market share and benefited from its key customer’s newest product ramping up in volume. As anticipated, activity in CTP Czech was lower following the loss of a major industrial customer as a result of acquisition, and the facility footprint was reduced. Underlying divisional EBIT rose by 45% to £4.6m. The EBIT margin improved 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.
Underlying central costs increased by £0.4m to £2.0m, primarily reflecting the portion of IT costs that had previously been charged to Wipac. There were also £1.9m exceptional advisors fees associated with the ongoing financial restructuring. These fees continue to be incurred, albeit at a lower level following the Wipac exit. While the group has negotiated financing and pension contributions through to January 2021, management is keen to secure long-term solutions swiftly.
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Research: Healthcare
RhoVac’s Phase IIb BRaVac study with RV001 (a cancer immunotherapy against RhoC) is up and running with patients being recruited in six European centres since November 2019. In total, over 175 prostate cancer patients, who experienced biochemical failure after a curative therapy (surgery or radiation therapy), are expected to be enrolled by the end of Q320. The primary endpoint is time to PSA doubling or clinical progression and key interim results are expected in H221 (the treatment part of the study), with follow up data due in H222. Besides the BRaVac study progress updates, RhoVac released more supportive immunological data from the completed Phase I/II trial, and, unexpectedly, an unrelated group of researchers published a detailed review of RhoC as a target. Our valuation stays virtually unchanged at SEK888.6m or SEK46.7/share.