Carclo Share Discussion Threads

[hvs1] 22/6/2016 13:38

go on rivolting-do, pump that stock

pump pump pump, lol

[rivaldo] 21/6/2016 12:19

From the presentation, it's worth noting the global expansion in CTP:

"Our own global footprint in the US (both East and West Coast), UK, Czech Republic, India and China is exceptionally well positioned to meet this increasing demand
• New major state of the art facility at Taicang, China is now complete and fully operational. Over the medium term we aim to significantly grow our revenues from within China by developing relationships with local branches from within our global customer base
• In Czech Republic and India we have increased our footprint during the year. In India further capacity will be created when we build a new unit on our site, possibly later in the current year"

[rivaldo] 20/6/2016 12:37

Here's CAR's new results presentation, with a very bullish outlook page:



The strong momentum in our two main manufacturing divisions is expected to
continue in the coming years

• Within Technical Plastics, we have continued to expand our manufacturing capacity and will continue to do so. All our expanded capabilities are underpinned by existing customer awards. We will add further capabilities, organically and through acquisition, that meet our customers requirements

• LED Technologies saw another excellent year of growth, with a new customer group secured and a first win in the mid-volume sports and premium cars segment. Wipac is well positioned to expand and grow significantly over the coming years

• Our Aerospace business remains both profitable and highly cash generative

• In summary, the group has delivered a strong operational and financial performance through the year and is well placed and focussed to drive further growth opportunities in the current year and beyond"

[rivaldo] 17/6/2016 12:34

Posted on the old thread today FYI by a Research Tree autobot - good to see positive coverage from Hybridan:

"Carclo is a precision engineering business that has been re- focussed towards its three core businesses. Two of these, Technical Plastics and LED Technologies are growing fast. The third Aerospace is a solid earner and gradually transitioning away from the control cable business as that system is being phased out by aircraft manufacturers. What we like: High recurring revenues, Tier 1 Clients / High barriers to Entry, High Growth within segments, Margins improving, Capacity increasing."

Hybridan note out this morning:

[wageslave] 16/6/2016 14:03

Shame about all this Brexit nonsense as the price was stable to higher until the leave camp seem to have shot ahead in the polls. Guess any firm trading with European companies could be subject to volatility. The plus side if we do remain we should see an almighty bounce.

[rivaldo] 15/6/2016 08:49

Bullish mentions for CAR in both Money Week and the IC:



"The lights are on full beam over at Carclo (CAR) after the group, which manufactures lights for supercars among other things, swung to a profit from relatively heavy losses last year. The company, which also serves the healthcare and aerospace industries, saw revenues in its technical plastics and LED technologies divisions rise strongly which helped it hit a nearly £5.2m operating profit against a near £23.9m loss last year. Management decided earlier this year to discontinue investment in its diagnostic solutions division meaning more investment will be ploughed into its remaining business. Buy."



"Carclo in the fast lane
By: Alex Williams
10/06/2016

Carclo just keeps motoring. The specialist plastics maker, which makes LED headlamps for Rolls-Royce and Aston Martin, has announced a second consecutive year of double-digit growth. Full-year sales rose 11% to £119m, ahead of analyst forecasts, while operating profit jumped 29% to £10m. The shares rose 6%, broker finnCap increased its price target and director Peter Slabbert bought 10,000 shares at £1.58.

Carclo’s “lights are on full beam”, says the Investors Chronicle. As an early mover in....."

[rivaldo] 14/6/2016 11:50

RNS out - Old Mutual are happily buying and are now above 9%, with almost 6m shares.

The last holdings RNS I can see from them is from last year with almost 4m shares, so they've bought another 2m shares since then:

[andrewbaker] 10/6/2016 15:03

I've been long Carclo for some time, and needed conviction to stay so, but now I'm hoping my trust and patience will be seen to have paid off. The company is trading well, and attracting attention from fund managers, so ... here's to the future. :)

[rivaldo] 08/6/2016 09:48

Dan Nickols, manager of the Old Mutual UK Smaller Companies fund, has been buying CAR recently - this fund has returned 220 per cent over the past decade, compared to 118 per cent for the sector average:



"The next stock he mentioned is Carclo, which manufactures plastics. Nickols commented that the products manufactured are often used to make moulds used for medical devices and lighting for cars. He said, ‘the products they make have a high value added, so there is a lot of recurring business and decent margins.’

[rivaldo] 08/6/2016 09:05

With the results now out I've created a new thread here. The thread header post is a work in progress, so more to come:

[rivaldo] 08/6/2016 09:04

CAR consists of a core medical, optics and electronics technology manufacturing business and an aerospace division which is non-core, but nevertheless extremely profitable and cash-generating.

As regards Carclo Technical Plastics



"Carclo Technical Plastics, a division of Carclo plc, is an engineering based company led by engineers coupling industry standards with a Six Sigma culture specialising in injection moulding and contract manufacturing services in the medical, optic, and electronic industries.

More than half of the division's turnover is from medical applications with an additional quarter in optic products including our own proprietary line of LED optics.

We are a highly technical company comprising aeronautical, chemical, electrical, mechanical, materials, and plastic engineering disciplines operating out of eight locations across the United States, United Kingdom, Czech Republic, China, and India. The synergy of Carclo provides our customer base with an extensive list of technical capabilities and global facilities, meeting the increasing logistical and cost requirements of tomorrow."

[rivaldo] 07/6/2016 23:37

The potential for considerable growth is imo huge from both CTP and LEDs - you just have to look at CTP's global geographical expansion, triggered at the request of CTP's customers, and at Wipac's secure and high-margin revenue streams for the coming years.

This new article calls CAR an "unmissable growth bargain", and I agree:

Https ://www.fool.co.uk/investing/2016/06/07/3-unmissable-growth-bargains-arm-holdings-plc-carclo-plc-idox-plc/

"Shares of Carclo (LSE: CAR) are up around 2% after the company released its annual results this morning. Trading at 157p, this FTSE SmallCap firm is valued at £104m, and looks set for a bright future in my opinion.

Very buyable #1

Carclo reported a 10.7% increase in revenue to £119m, with underlying pre-tax profit rising 22.9% to £8.8m and earnings per share (EPS) up 27.8% to 10.1p.

This excellent performance was driven by the company’s two main divisions: Technical Plastics, which specialises in injection-moulded plastic components for medical products; and LED Technologies, which designs and supplies injection-moulded lighting systems for luxury cars and supercars. Meanwhile, there was a one-off non-cash charge of £4.9m as a result of the group’s previously announced decision to discontinue its smaller Diagnostics Solutions business.

Ahead of today’s results, analysts had been forecasting earnings growth of around 20% for each of the next two years. EPS of 12p, followed by 14p, looks perfectly doable to me, and gives attractive price-to-earnings (P/E) ratios of 13.1 and 11.2. A price-to-earnings growth (PEG) ratio of 0.7 for both years underlines Carclo’s credentials as a very buyable growth share at an appealing price."

[dozey3] 07/6/2016 21:17

I don't know. Over the past few years CAR has made too many mis-judgements for my liking, and I'm no Johnny come lately making my entry back in May 2005 at 63. Thankfully I managed a top slice in August 2012, but made a note recently to get out above 170 which is getting closer.
I see no reason to change my mind: CDS has gone, the only real hope for considerable growth; LED is edging to a more competitive area and like it or not margins will inevitably become wafer slim; tech plastics is IMO the best bit but it doesn't make the shares underpriced.
Despite my gloom, have to say I much appreciate comments of posters on this board, esp Rivaldo & Queeny, even where opinions differ. Much more civilised than some places!

[rivaldo] 07/6/2016 15:42

Encouraging to see a non-exec director buy his maiden stake post-results (via his wife!) with 10,000 shares:

[rivaldo] 07/6/2016 14:30

CAR's entry into the medium-volume sports and SUVs is certainly a gamechanger imo - 30,000 units from this initial contract alone is a big step up from current volumes. The higher volumes sales will presumably be at lower margins, but the profit potential must be even greater given the step up in volumes.

[andrewbaker] 07/6/2016 13:45

Nice results, both in trading and the share price. There is little resistance to the uptrend mow until around the 300p mark, so a little topping up on the way will go down well, IMHO. As I said a couple of months back, this is a good long-term hold, and one that Warren Buffett would likely have bought back when he was buying small growth businesses. I'm still long, and staying so.

[dontay] 07/6/2016 13:39

Although only for around 30,000 tail lights for a car not due for launch till 2019... it's good news they have opened the door into the more main stream high ticket market. However it's not going to be much of a game changer if they only expect/hope for one win a year in the future. I imagine one of the barriers to entry into that sector is that it's already pretty well served by the LED competition.

[rivaldo] 07/6/2016 10:55

Buying now coming in at 164p, and we have new recent highs....

[queeny2] 07/6/2016 10:27

I'll list out the negatives among the already observed positives later when I've had a read on paper not phone. There are some.

[hopeful holder] 07/6/2016 10:00

I would have hoped for a better market reaction given that this appears to evidence the VW saga is behind Carclo. I am excited about the venture into mid volume cars. This could and should be a game changer.