Carclo Share Discussion Threads

[beeezzz] 17/4/2015 15:51

I'm sure they are relieved and sad that CIT has finally been settled, Shame it did not turn out as hoped from its initial conception...maybe it was extremely difficult to transfer from lab into high production cost effectively.

Somebody confident 70K @145p

[boadicea] 17/4/2015 12:14

illiswilgig - ".... (excluding any one off gains due to unexpected cash payments just received)...."
Yes, of course. First, those unexpected payments are in the current year, not the year to be reported, and secondly they clearly have to be set off against the write-down of the CIT assets and will merely reduce the adjustment required in arriving at the adjusted eps.

It will appear in the annual accounts as a post year-end event. Can this affect the amount of the write-down of CIT assets which is an arbitrary figure based on expectation of value?.. i.e. does that 'expectation' (not being a determinable fact) have to be viewed as at year end or as at the date of issuing the accounts?

On a 'date of accounts' view, it may make the bottom line loss look a little less horrific while drawing a firmer line under the past to give a clearer view of the road forward.

[meijiman] 17/4/2015 10:21

Excellent high quality posts. Basis of a gentle upward re-rating here now that there is some certainty as regards future prospects and the growth model. And we all know that the market hates nothing more than uncertainty....

[illiswilgig] 17/4/2015 10:06

Yes Dontay I entirely agree with you wrt Unipixel.

Interesting with the remaining costs on CIT defined, an unexpected additional £3m in the bank and a possible sale of the Harthill land for another £1m together with increase cash production from CTP and LED I think the possibility of raising more cash from investors has receded a lot.

At the moment I'd be tempted to buy more at a deep enough discount!

I just hope that the pension fund doesn't end up swallowing whatever extra cash CAR can produce rather than paying down the debt,

cheers

[illiswilgig] 17/4/2015 09:59

A quick search for Unipixel news reveals that they are actually leasing ATMEL's colorado facility and taking on the staff to fulfill ATMEL's current orders.

Unipixel claim that they will generate revenue of $10m in 2015 and will be profitable in 2016 by marketing to ATMEL's established OEM customer base (good luck!) and by combining their own process technology with ATMEL's technology.

Well maybe but if you think CIT was guilty of overpromising then it pales into insignificance in comparison with Unipixel in my opinion.

Carclo appear to have pulled a blinder by limiting their CIT downside, achieving a cash payment (already in the bank apparently) whilst retaining some modest exposure to upside in the event that Xsense is not a dead duck.

Looks to me as if Unipixel is jumping ship from Kodak to Atmel given their lease of the Colorado facility and taking on the ATMEL staff including the current VP for Xsense,

Curiouser and curiouser......

[dontay] 17/4/2015 09:46

illiswilgig... I too have kept an interest in the UNXL story/scam and entirely agree with your reading of events at that end. I feel no- one should at this end should have any expectations of UNXL ever having any success in the TS field either short or long term. It's been one long story of keeping UNXL's BOD in clover at the expense of their investors. Under a long and on- going investigation by SEC and having to agree to settle some litigation cases brought against them from their own investors. They have gone from around $350m in hand... down to their last $20m... by their own admittance just sufficient to see this year out prior to this deal. Their share price has collapsed from around $40 to $6.Still... a great deal and way out of the mire for CAR... take the money and leave the rest to whatever will be will be... and that's all we should be concerned with.Now we have to see what CAR intend to do with printed electronics in general.

[illiswilgig] 17/4/2015 09:45

Thinking about it, CAR don't make a CIT announcement without ATMEL approval so I took a quick look at ATMEL press releases.

Sure enough ATMEL has just announced it's sold it's Xsense assets and licence to Unipixel and will support the handover.

Interestingly the payment by Unipixel to ATMEL is a royalty payment with an upfront element and with a guaranteed minimum royalty over 5 years.

Whether the guarantee has any actual worth is of course debatable, but it does perhaps build the credibility of some royalties to be expected in excess of the initial cash payment (which has already been received).

Whether Kodak (Unipixels manufacturing partner for their own proprietary metal mesh process) has a role in the future of Xsense is not acknowledged,

cheers

[queeny2] 17/4/2015 08:57

That certainly exceeded my expectations. :)

[illiswilgig] 17/4/2015 08:48

Morning All!

Well Blimey I didn't see that coming.

Was just looking at a terrible note on Unipixel progress on the Seeking Alpha site yesterday (sorry lost the link). The note comments that Unipixel is using the wrong manufacturing line and needs to adopt the equipment developed by ATMEL and CIT. Unipixel have a manufacturing agreement with Kodak - and reading between the lines I can only assume that Kodak told them to get a system that actually works or it's all over.

Reading between the lines I might speculate that Kodak and Unipixel are buyng Atmels production line and Unipxel need the licence from Carclo to operate it? Would explain why Atmel turned around so quickly if Kodak offered them cash and they took it while it was on the table! Still an amazing turnaround following the litigation between CIT and Unipixel over the last couple of years.

Draws a 'fine' line under the CIT thing - on the downside and leaves potential, albeit slight given Unipixels record of non-delivery over the years, for upside from CIT.


cheers

[boadicea] 17/4/2015 07:57

That is a very interesting, somewhat surprising and ironical agreement!
It may or may not blossom in the more distant future (which I somewhat doubt) but certainly provides a distinct help towards the costs of 'likely' closure in the near future. (Interesting insertion of the word 'likely'.)

One positive factor in my reading of the agreement is that it is exclusive only to uses for touch-screen technology and also that only for two years. CAR are free to license FLT for other uses and the basic CIT circuit printing technique immediately.

One of my principal fears about CAR has become that of a capital raise in adverse circumstances. The adverse circumstances are now largely removed and, if investment due to rapid expansion of the main existing operations or of the embryonic CDS need a capital boost, it would be from a position of comparative strength.

Altogether very positive.

[yump] 17/4/2015 07:48

Next thing you know, Unipixel will have an agreement with Atmel. Real life stuff where big money is at stake isn't much different to what's seen in films.

[rivaldo] 17/4/2015 07:22

Excellent news today.

Considering that CIT has been written off as worthless by the market, a possible $30m in royalties including a non-refundable $4.67m advance is a pretty good result.

And the film supply agreement will produce profits which offset the Cambridge closure costs too.

I'll have to keep a closer eye on Unipixel from now on! Didn't think they'd be the buyers...

I like the way the closing comment emphasises the "significant future growth prospects" of the two core divisions.

[9degrees] 17/4/2015 07:22

well well well! That sounds like a turn-up for the books !!

[rivaldo] 10/4/2015 08:36

Interesting comment above about the P/E ratio falling to just 10.7 - this implies around 12.8p EPS going forward.

[rivaldo] 09/4/2015 23:01

Nice summary here will hopefully attract some interest tomorrow:



"Carclo

Plastics producer Carclo (LSE: CAR) cheered the market in Thursday trading after also revealing positive financials, and the company was last dealing 7.9% higher on the day. The business said that its Technical Plastics division had witnessed a strong final quarter, with margins continue to improve as high-quality programmes come on stream.

The abacus bashers remain bullish on Carclo's earnings picture in the coming years, too, and expect the Ossett-headquartered firm to follow a 20% earnings advance in the year concluding March 2015 with an extra 42% rise in 2016. And the bottom line is expected to leap a further 17% the following year.

As a result the plastics manufacturer changes hands on a P/E ratio of just 12.3 times for this year, and which drops to an even-more appetising 10.7 times for 2016. With the company having recently ramped up capacity in the US and Czech Republic, and on course to expand its facilities in China and India, I fully expect sales of Carclo's high-tech products to surge in the coming years."

[illiswilgig] 09/4/2015 09:41

Hi Riv,

yes I agree a good trading statement in our new Ex-Xsense world. Even the precision engineering division seems to be firing on all cylinders.

Hard to accurately interpret the CIT statement.

I am surprised that they may sell CIT - but then the statement is hardly bullish:

'to date we have seen some interest and discussions with potential acquirers remain ongoing'

Lukewarm at best? With a price tag to match I imagine!

I am not suprised that the printed electronics business is going to be canned alongside the touchscreens. As I understand it, it's the old FLT pilot line refurbished with the addition of some component mounting machines. Likely to be low margin business and subject to the same supply chain difficulties as the touchscreen business?

I think I ought to be spending more time researching the CDS opportunities than looking at the remains of the train wreck that is CIT. It's history (give or take the £5M of IP still on the balance sheet)

cheers

[meijiman] 09/4/2015 08:41

A nice measured tone to the RNS. Positive trading and no major issues from exiting printed electronics in terms of cash costs, and maybe some residual value may be found. Agree the shares do look like they should be nearer 200p.

[rivaldo] 09/4/2015 07:26

Excellent year end trading statement just out - every division is doing well and trading is in line with the increased expectations:



The results will show a substantial increase in profits over last year, and the market will now look to this year, for which the latest forecasts are for around 10.6p EPS.

On which basis - and with CDS thrown in for free - the current share price is cheap imo.

Interesting that CAR are definitively exiting printed electronics now - perhaps the sale/licensing will bring in a reasonable sum, but anything received will be a bonus as there's nothing in it in the share price anyway.

[boadicea] 03/4/2015 21:01

After reading your link, Rivaldo, it seems likely there is even more to this appointment than I originally thought.All the right connections!The road to medical approvals is notoriously long and winding but at least with non-invasive diagnostics, questions of patient safety are less prominent and parallel operation of trials alongside conventional diagnostic testing enables direct rather than statistical either/or blind trials followed by waiting for possible delayed adverse reactions. In other words, progress may actually be less delayed than we experienced with FLT.

[rivaldo] 02/4/2015 09:56

Indeed Boadicea - and the Alere link too since Alere own Afinion. A very impressive appointment.

He should certainly have some helpful contacts regarding the commercialisation and licensing of CDS. I wonder if his CEO-ship of Syncrophi Systems will be useful in this regard:

[boadicea] 01/4/2015 14:46

Note the EKF link.

[rivaldo] 31/3/2015 07:23

Good news this morning with a successful refinancing on cheaper terms: