Carclo Share Discussion Threads

[rivaldo] 21/8/2020 09:42

Talking of the opportunity for CAR in COVID-19 - here's news of CAR producing face shields, which I don't think has been posted before?



"Carclo Safetywear Announces Launch of Face Shield for Retail

27 July 2020

London - Rob Stutzman, Carclo Technical Plastics Divisional Chief Executive, is pleased to announce the launch of Carclo’s innovative Face Shield - supporting a range of local and international commercial ventures getting back to work during the COVID-19 crisis. "Our unique Face Shield system has a replacement visor to improve the overall cost efficiency of the solution. It also has a number of unique features including, foam comfort band, a fully adjustable over-head support cradle, and anti-fog visors with the ability to pivot the visor up and down without removing the headwear."

The project has been developed through Carclo’s Czech business, based in Brno, with support from its India subsidiary in Bangalore. Our team utilised rapid 3D printing technology to test and develop the design, followed by the development of fully hardened injection mould tools to help deliver the project in accelerated timescales. Sales and Marketing has been led by Carclo’s direct distribution business based out of Aylesbury in the UK, with its US and China plants taking an active role in promoting the project to customers in those regions.

Carclo Safetywear Announces Launch of Face Shield for Retail

Stutzman further commented that "the project has been an ideal platform to support local economies following the unprecedented global issues surrounding COVID-19. It has also highlighted the company’s global capabilities to complete the project from concept to stock in an accelerated timeline. This is an excellent example of how Carclo’s businesses came together to offer an important safety product in record time."

To learn more about the applications the Face Shield can serve or to purchase please visit www.carclo-safetywear.com. For more information or volume inquiries, please contact Andrew Green, [e-mail]."

[wigwammer] 20/8/2020 11:26

Hi 2mags. I sort of hope they see the potential already. Diagnostic disposables is their bread and butter. At very least, you might anticipate that large medical device companies committing capacity to Covid may need additional third party capacity to produce their other products. All countries are still ramping up testing capacity - here in the U.K. from 100k per day to a target of 500k a day over the next few months. This tidal rise may not be in the historic numbers but...

[2magpies] 20/8/2020 10:44

wigwammer

have you emailed that to CAR?

[wigwammer] 20/8/2020 09:59

There is evidently a huge manufacturing capacity required to bring Covid testing up to demand. Example .. BBI are the only manufacturer named to produce the Avacta POC test so far. But BBI only have capacity to produce 10-15m units a year - a tiny fraction of what is required. Carclo have stated they have new orders with diagnostic device companies and have worked with BBI before. They have relationships with 13 of the top 20 medical device companies globally. A rising tide...

[laurence llewelyn binliner] 18/8/2020 12:00

There are many threats to the business but the biggest and most immediate ones are now addressed, (1) leadership, (2) bank support, (3) pension fund support, the upside is now market and opportunity driven by decision making, it was only 2 years ago the share price was 100p and 6 years ago it was 200p and paying a dividend..

Onward and upward to rebuilding the company after the Wipac debacle almost took the group down with it..

Good luck to the Chinese consortium that bought the operating Wipac assets and good will, they are going to need it, all of it... :o)

[wigwammer] 18/8/2020 10:45

Garth,You also expressed concern in April, since when the shares have doubled. Anyway, sounds like we both own the shares and anticipate an attractive return for risk taken. Fingers crossed and ATB.

[garth] 18/8/2020 10:07

Wig,

As I say - been in and out along the way. I took a substantial break from holding on the exit from CIT, which I had great hopes for. So I have been saved from a long decline in value here. Way back then I expressed concern about the debt - which was a lot about being stung on DYS which held many similar characteristics.

This point with CAR feels a lot like 2003 all over again.

And you are right - I increased yesterday and my intention at this time is to watch that holding multiply. That will only happen as management demonstrate they are executing. External events are out of their hands. Covid provides both threats and opportunities. They need to execute well.

FWIW, my take is that if they do that they should be capable of returning sufficient profit in a normal year to cover pension remediation, service and pay down debt and leave sufficient to place them on a low PE going forwards.

If evidence of that is consistently provided over the next few years then there is a decent gap in that long term chart that the market should steadily fill. Patience needed - and merited, IMO, on the basis of the last two days' announcements.

Kind regards,

G.

[wigwammer] 18/8/2020 09:20

I'll risk an observation too, garth. That you bought the shares yesterday, and I'll wager you aren't selling today. ATB.

[garth] 18/8/2020 09:04

I will risk another observation.

It looks like a strong appointment this morning and continues the work in extending a base for further strengthening of confidence.

Along with the statement posted by Rivaldo above, which is key in our future hopes, I also note this:

"He brings a wealth of experience and has a strong track record of success in creating value for all stakeholders in industrial manufacturing businesses."

I find myself once again attending to the nuances of language used in this statement and note the timing of the announcement - which surely cannot be coincidence.

This from the interim statement in January:

-- Negotiations with the bank and pension trustee over the long-term funding position of the Group remain on-going, with no certainty that a satisfactory outcome will be reached
.....

"Commenting on the results, Mark Rollins (Chairman) said:

"The strong results of the continuing businesses, along with the exit from the Wipac businesses after the period end, demonstrate the clear progress being made to stabilize the business. Whilst significant challenges remain in reaching agreement on the long-term funding of Carclo with the lending bank and pension trustee, the encouraging operational performances of the Technical Plastics and Aerospace Divisions provide a foundation on which a sustainable future for the Group might be developed."

A new chairman announced the day after the trading statement which also included an extended runway from the banks and guidance on pension remediation. I find it hard to believe that he wasn't part of the package and muse on which party had most influence in securing his involvement. Whatever the answer to that - and I guess we will never know the answer - lets hope he can now bring stability, turnaround and the continuing confidence and co-operation of all stakeholders.

G.

[wigwammer] 18/8/2020 08:50

1gw. They are not moving into high volume plastics, they ARE a high volume plastics manufacturer and have proven highly successful at doing it over a long period of time. Indications of success is not simply the £100m+ top line, but the quality of the client base which includes 13 of the top 20 healthcare companies globally. What they do is not easy - high volume, precision, low error - and they are a trusted supplier.

[1gw] 18/8/2020 08:28

It would be nice to think they're due a bit of good management and good luck! I hope their move into medical plastics "volume" manufacturing doesn't end the same way as their move into automotive volume manufacturing. They should have been able to learn from that traumatic experience.

[rivaldo] 18/8/2020 07:13

Yep - a very impressive appointment. Currently an NED at Doncasters too:



In particular, "since 2002 he has been leading turnaround situations in aerospace and manufacturing businesses"....

[imjustdandy] 18/8/2020 07:03

That's more like it- ex Rolls Royce Director as our new chairman

[imjustdandy] 17/8/2020 22:36

Just the start of the re rate

[garth] 17/8/2020 12:48

Wig,

I wouldn't have recommended CAR to anyone at 5/6p - it was far too risky IMO. Don't mind doing that with my capital but would never want to influence anyone else in that kind of context.

I still believe there is substantial risk. And there is substantial potential reward. The potential capital reward exceeds the risk, IMO - but only if you accept that you could lose it all. The additional runway announced this morning pushes that possibility down the line by some way and, I hope, gives them a final chance to get this right.

On that basis I added more to my holding this morning AND posted my comments - which I believe to be balanced.

G.

Ps. 6th of April, you will find a post. It was as positive as I wished to be. ;0)

[wigwammer] 17/8/2020 11:45

Thanks Garth. I do not recall any positive posts from you at 5/6p identifying the potential, and your initial posts today again focused on the negatives. Thank you for going some way to redressing the imbalance. I think Carclo shareholders deserve one rare day of celebration - particularly when (as you concede) the news is unequivocally positive. ATB

[garth] 17/8/2020 11:18

Wig,

I have been invested in CAR on and off - more on than off - since early 2003. I understand the potential. I have also carried an ongoing awareness of the risks posed by the debt and the pension deficit. I understand that the the support of banks was a key aspect this morning - its key because of the debt!

They have to service the debt and they have to service the pension deficit. And they have to turn what should be a cracking British business into a profitable one again.

I do not disagree with anyone that robust is positive. But I hold to my contention that the CURRENT state of that demand is less than would be implied by use of the word strong. And it DOES matter - because those words get pinned to varying levels of £/%

Magpie - as a long term holder I disagree that "robust" in this context can mean "(i.e able to withstand future shocks, from multiple directions)"
I do not believe that recent trading in combinations with the level of debt and pension deficit leave CAR well placed to deal with future shocks from multiple directions. Give it a couple of years of cost reduction and realignment and sustained evidence of a corner turned, then maybe.

This morning was positive and makes CAR investible, IMO. But it remains very risky. But with that risk comes the opportunity to enjoy many multiples of increase in investment value - providing they can execute.

I am a long term holder and have what is for me a decent sum invested. And I was buying at 5/6p.

Best wishes one and all. And thank you for the continued high quality of thought, research and exchange - even when in shades of disagreement.

G.

[wigwammer] 17/8/2020 10:56

There are not that many companies with the expertise and scale to do what Carclo does... From Edison - CTP count 13 of the top 20 healthcare companies globally as customers. They are a leader of a small group of mid-tier players. There are a couple of global majors, notably Gerresheimer and Nypro, which is part of the Jabil group, but they do not address the volume/precision mix that Carclo targets. Within the EU there are more local players, notably Sovrin Plastics in the UK, which, in the view of Carclo's management, lack the scale and resources to offer a global service in the way that Carclo can.

[wigwammer] 17/8/2020 10:35

Bang on, 2magpies. The key point this morning is the bank and trustees have backed the business as a going concern. If they can grow the business over the next 3 years - as management suggest - then the current £7.5m market value is likely to multiply many fold. I don't think it requires a great deal of nous to work out why a company specialising in the manufacture of diagnostic tests and disposables - across multiple continents - may be party to lucrative contracts in the not too distant future.

[2magpies] 17/8/2020 10:30

garth

you may be reading too much into it.

The bottom line is: the Bank accepted whatever the situation is, AND the forseeable prospects, as being satisfactory (and 'robust'). (i.e able to withstand future shocks, from multiple directions)

A weight lifter is 'strong', but can he withstand a big lateral blow??

Follow the money.

[garth] 17/8/2020 10:19

Zen,

I believe you are mistaken. Imagine a conversation with the nomad around the guidance being provide. "Strong" and "robust" have different meanings. Its subtle. But clear.

G.

[2magpies] 17/8/2020 09:15

Well, the bank did!

[escapetohome] 17/8/2020 09:10

Jeepers , you actually believe their wording?

[2magpies] 17/8/2020 09:02

@garth
@kazoom


Robust= reslient, surely? (or even sustained)

'strong', could have a 'short-term' connotation: i.e. could be temporarily strong.

Whereas 'robust', has more of an 'on-going' ring to it.

So I prefer 'robust'.

[zen12] 17/8/2020 08:55

What nonsense on definition of robust...it's a positive and defiant word...back to school lol