Carclo Share Discussion Threads

[fillipe] 03/12/2020 08:59

CAR + 20% today, as I type.

f

[wigwammer] 02/12/2020 16:41

The pension deficit represents both a problem and an opportunity. If it wasn't for the deficit the equity would not be trading at sub £10m. What is left for shareholders? Potentially quite a lot. 10% normalised op margin in a structural growth sector probably deserves an enterprise vale of at least 1.3x sales, or around £130m. Deduct the £60m deficit and £30m net debt still leaves £40m on the table for equity holders, or around 50p a share. Those with the patience to stick it out for 1-3 years will likely be well rewarded. IMO :)

[charo] 02/12/2020 16:34

The problem is the pension deficit. What is left for shareholders after funding £60 million deficit.

[kevraff] 02/12/2020 15:32

On the bright side at this valuation it should little good news to see growth in share price On the down side good news has been hard to come by over past few years.

[topnotch] 02/12/2020 14:27

If Management don't care about keeping stakeholders updated then what's going to keep the share price up?

[beeezzz] 30/11/2020 21:14

Management have lost the plot...

[2magpies] 30/11/2020 16:40

will it hold??


free stock charts from uk.advfn.com

[topnotch] 30/11/2020 13:46

Could by LSE sellers who seem to be have negative views on this!

[ali47fish] 30/11/2020 13:34

a negative retrace! anyone knows why?

[ali47fish] 29/11/2020 11:36

i've just emailed meetcompany for request

[beeezzz] 27/11/2020 21:11

Well, that didn't turn out as I had hoped, such is life.

Its looks like a long haul, obviously depends on new management, maybe look for top engineer who could find new outlets for Carclo products....


At least I brought most of my holding at 8p

[tradertrev] 27/11/2020 16:26

Rivaldo, you mentioned that the co should be marketing to PIs as much as IIs. I've just requested InvestorMeetCompany to get them on the list. If more of us do that, it will give them the ammo to approach the company about doing a presentation with Q&A.

[topnotch] 27/11/2020 15:17

I think 14p is a support level and 18p is the resistance level

[laurence llewelyn binliner] 27/11/2020 14:30

Share price settling around 15p as investors digest the H1 trading update to 31.09.2020

What we know is the exceptional costs are are largely or wholly worked through, there are new orders for tooling which will translate into sales of parts, hopefully in H2 as production of those parts are delivered and paid for..

A YoY H1 reduction of just 11% on revenue in a CV19 pandemic where for most of Q1 everything was shut, nobody knew how to respond and when they were allowed to do it, business only partly normalised in Q2, with H2 looking much better and expected added sales/deliveries from new orders being realised..

Net debt is reduced and under new leadership Aero will be refocused onto other revenue adding project work..

Overall I would say well done in surviving the Wipac separation firstly, then well done on surviving an H1 pandemic business environment, recovery will be slow and steady to repair the balance sheet and it does not happen in a couple of months, but we have started and will be in a lot better shape in 2 or 3 years from now when we revisit banking needs..

Dividends looks a way off though... :o)

[rivaldo] 27/11/2020 14:13

Agreed ansc - Tradertrev is spot on.

CAR remains a decent bet to me too over time. I did expect a better overall H1 result, especially as aerospace wasn't as bad as I'd expected, but conversely CTP whilst doing OK wasn't as good as I'd hoped.

Given that CAR feel confident enough today to state that H2 should be "marginally stronger", I suspect the actual results may be better than that. Especially with the new COVID-19 tooling contracts and the stated higher CTP product sales kicking in.

The pension situation will of course fluctuate but should diminish as time goes on, whilst net debt is steadily reducing.

I completely agree that CAR's investor relations are non-existent - especially as at this mere £11m m/cap they should be engaging with PIs as much as if not more than institutions.

Anyway, it's encouraging that CAR can conclude today:

"Demand for CTP products in the medical diagnostics sector is increasing as a result of the pandemic and we hope to secure further new contract awards over the coming months."

[topnotch] 27/11/2020 14:02

Curious what 'substantive' means considering the current MCap is only £11M?

£500K, £5M, £50M

[ansc] 27/11/2020 13:46

In full agreement with tradertrev's post 1953. Anyone who's been in business knows that if a prospective customer demands secrecy regarding their contract, otherwise no deal, the company is obliged to stick with that request. Carclo have informed shareholders of the existence of these significant contracts and that is all they are able to do.

[topnotch] 27/11/2020 13:36

Nah, LOOP is getting hammered - down 45%

This is just disappointing, and hopefully just short term pain

[cl0ckw0rk0range] 27/11/2020 13:21

Getting hammered

[topnotch] 27/11/2020 13:08

Seems I'm not the only one - lifted form LSE board...

"As a shareholder of CAR.L I would like to comment on this company's PR performance. Apart from fundamental or technical aspects I always assess the ability of a company to effectively communicate with the broader investment community. Unfortunately Carclo is a disaster in this field. A site not frequently updated with product or other news, not a tweet since Nov.29, 2017, no use of other social media, no information or link about Carclo Safetywear ( I am not quite sure if this company is part of Carclo plc). There is no price information on Investors' section and the RNS information is provided upon registration. I hope things will get better now that the business stabilizes (I express no opinion because I believe it is hard to have an opinion on this company)."

It's almost as if the company doesn't care about the stakeholders

[tradertrev] 27/11/2020 12:33

It's far from clear that details of the contract(s) should be disclosed, on the grounds of confidentiality (NDA), contract certainty and materiality (usually 5-10% of turnover or total balance sheet size). They've already highlighted the existence of significant business, which is enough to inform and encourage stakeholders. Seems a little unrealistic to suggest they have not fulfilled a statutory obligation. Personally I'm in the underpromise and overdeliver camp. The opposite is promotion/ramping.

[topnotch] 27/11/2020 12:08

"Two significant tooling agreements were secured with a new medical customer for COVID-19 test components with supply of manufactured product due to commence in 2021"

"Significant" implies they were materially transformational to the company - and you don't secure a tooling agreement without a substantial payment upfront.

"Secured" means the deal has already been done, probabaly some time ago - They had a statutory obligation to inform the stakeholders of the change in the company's finances as and when that deal had been signed.

[husbod] 27/11/2020 11:26

Surely the implication of the lack of RNS for the contract wins is that they were not sufficiently large to merit an RNS.If Avacta is one of them then presumably it is a pretty conditional contract as Avacta doesn't have a product yet (a sore point as I'm also a shareholder there).

[diku] 27/11/2020 11:03

Not about logic that one fits all...statements are released if they are worthy of releasing...info sensitivity is given due consideration...or would you rather just for PR purposing...

[topnotch] 27/11/2020 10:53

Using your logic, no listed company would ever release any statements or contract wins!

There's always a minimum quantity and a deliver date that needs to be fulfilled and this is only every undertaken when a non-refundable upfront payment or deposit has been agreed and paid by the purchaser.

There will of course be KPI and penalties and clawbacks for failure to deliver in full but the first tranche is nearly always paid for!

The payments received should have been declared!