Carclo Share Discussion Threads

[1gw] 22/1/2020 12:34

...and the initial verdict on the results statement appears to be fairly negative, albeit not much volume with the sudden lunchtime start.

[1gw] 22/1/2020 12:15

And they're back from suspension...

[valuschmalu] 21/1/2020 20:46

Hopefully they come up with something sensible like 4mn annual pension payments. Next time rates go up I would imagine trustees will force the scheme to hedge rates so we can never have a liability like 50mn again

[queeny2] 21/1/2020 12:51

The statement rules out a standstill and confirms a larger annual payment, amount yet to be negotiated.

[wigwammer] 21/1/2020 12:45

It really makes little sense for the trustees or debt holders to do anything other than keep Carclo a going concern, and hope that eventually enough cash flow will be generated to ameliorate the pension and debt issue. This is great news for shareholders because it means management will be focused on generating cash, not building empires. As the debt/deficit is paid off, the entire enterprise value becomes the property of shareholders - given the current market cap, this will be a nice ride :)

[wigwammer] 21/1/2020 12:39

In November, the trading suspension was lifted 2 days after the results were published.

[steve pmax] 21/1/2020 10:49

re-listing, any guesses?

[baner] 21/1/2020 10:16

a good guess is that the company will agree a stand still with the trustees and the protection fund. this will give the company some years to sort issues out. if UK interests increase a % or two, the pension problem will be gone and the company will be worth well north of 50p/share - approaching 100p. if they cannot agree a standstill, times will be very tough no doubt. the best would be for the trust to settle a once and for all deal and accept payment with new carclo shares in exchange for surrendering any future claims on the company. this way carclo will be allowed to blossom in full and very significant values will be crystallized for shareholders - the trust being the largest beneficiary of this.

[queeny2] 21/1/2020 10:08

Weird cv for this job the new CFO. Hardly the hand to hand combat experience and negotiation with pension and bank just to stay alive stuff. Oh well.

[steve pmax] 21/1/2020 09:28

results should have already ben priced in by the market,

[1gw] 21/1/2020 07:18

Not pretty. But at least they've published them so the market can give its verdict.

[edit]
...or perhaps not just yet. I thought publication would have been enough to lift the suspension. Did they forget to do something?

[beeezzz] 15/1/2020 21:20

You'd think we didn't live in the computer age....

[steve pmax] 13/1/2020 14:51

FFS ! what a bunch of amateurs these are !
Get on with it.

[1gw] 08/1/2020 19:41

Come on Carclo. Get those interims sorted.

[1gw] 02/1/2020 07:45

And now suspended (again) pending publication of those results. Quite a share, this one.

[1gw] 31/12/2019 13:33

Nice reaction to the Wipac news, then, and held up well at 18-ish. Managed to make a bit of a dent (on paper at least) in my losses to date on this share. See if it can continue once the institutions return and volumes pick up.

Still waiting for the half-year results.

[1gw] 24/12/2019 15:38

DavveK - unfortunately, I think that benefit may be offset by a decrease in the discount rate used to calculate the liability side of the equation. 15-20 year UK AA corporate bond rates look to have fallen significantly between end March 2019 and end-September 2019. They've perhaps bounced back a bit since end-September. See end-Sept Barnett-Waddingham briefing linked below:

[davvek] 24/12/2019 15:18

Can one assume the pension liability has decreased a bit since last measurement due to the equity market rally?

E.g. equity markets have rallied about 30% this year, say 20% since March 31st. Diversified growth funds, 75% of plan assets, have probably returned 10% or so on assets of 150 million or whatever it is -> reducing deficit by 10 million+ all else equal?

[robow] 24/12/2019 12:14

That's a great Christmas present to see this share rallying

[1gw] 24/12/2019 10:10

And actually, I've added some just now. Feeling good that the [31st] July purchase worked out so well [so far], and decided to average down a bit more hoping that finally they may have turned a corner.

[1gw] 24/12/2019 09:40

Nice to see a good bounce at last. We must be due interim results soon I presume, now that the Wipac disposal is out of the way.

[rivaldo] 24/12/2019 08:41

Great to see the Wipac sale complete.

The Optics business purchase looks a bargain, presumably arranged as part of the overall transaction - CAR are paying the administrators £0.25m for a business making £1.07m PBT!

After CAR conclude the pension contribution negotiations, perhaps the company can finally reap some rewards from the remaining two divisions, which have consistently performed well and enabled it to come through the various crises in recent years, as per this quote from the RNS:

"the exit from this business will enable Carclo to focus on Technical Plastics and Aerospace which continue to perform well and offer encouraging long term opportunities."

[1gw] 23/12/2019 17:31

Good call on the closing price, valuschmalu.