Carclo Share Discussion Threads

[dozey3] 30/5/2023 10:42

Here’s the nub of it:
“
The Group has now signed a mutually satisfactory settlement agreement with the customer concerning working capital and recompense for business disruption. While the specifics of this agreement remain confidential, it is expected to largely offset the Group's financial exposure arising from the early termination of the contract.

Carclo has also rapidly implemented a plan to repurpose the production capacity assigned to this project. The majority of the capital investments, inclusive of infrastructure such as buildings, clean rooms, and state-of-the-art equipment, have been reallocated to enhance projects with existing strategic partners.”

Doze

[charo] 24/5/2023 22:07

As always pension deficit is killer.
No equity value under stupid
Exuxting rules.
All present employees should walk and certainly no ambitious manager would join.

[wigwammer] 24/5/2023 14:11

I agree. Hard to know. One thing that may work in Carclo's favour is that the company may wish to work with Carclo again. They obviously regard them as a valuable partner or they would not have selected them for the (cancelled) project in the first place. Not good business to royally shaft a valuable partner, so perhaps a compromise that works for both sides will be found.

[bombast1] 24/5/2023 09:57

Wishful thinking, in my view
It was a 10 year framework agreement, not a guaranteed contract.
Those kind of agreements typically do not have volume commitments.
I'm not holding my breath

[mesquida] 22/5/2023 14:52

Exactly, as I said, food for thought.

[garth] 22/5/2023 09:46

That roughly equates to current mkt cap...

G.

[mesquida] 21/5/2023 11:47

A poster over on the LSE board is speculating that the compensation for the cancelled contract could be in excess of £10m. Food for thought !

[mesquida] 17/5/2023 19:58

A Philip Parker is Chairman of Holborn Assets, has experience in restructuring companies , could well be our new 3% shareholder

[frankseluk2] 17/5/2023 19:50

Notthat far only 2 hrs to there in 10 years time.;-)
Doubt he would be buying personally.
Could be wrong!

[tradertrev] 17/5/2023 18:55

A long way from home if it is

[vanadiumx] 17/5/2023 15:51

Is it this Philip Parker?https://www.linkedin.com/in/philip-parker-6ba96726

[ali47fish] 17/5/2023 12:35

so who is philip parker- dir? please clarify someone

[mesquida] 17/5/2023 10:51

Had not spotted the RNS before, now it is obvious why there has been a move up today, but does anybody know anything about our new shareholder ?

[mesquida] 17/5/2023 09:59

Good move here today, and there have been a number of trades, am beginning to wonder if we are about to hear that they have now received compensation in respect of the cancelled order.

[mesquida] 17/5/2023 09:56

Good move here today, and there have been a number of trades , am wondering if we are about to hear that they have now received compensation in respect of the cancelled order.

[frankseluk2] 12/5/2023 21:47

Armstrong investments aka William Black added circa 1/2 million on the 10th.The same day as someone was offloading 700k or so.

[mesquida] 12/5/2023 13:56

Yes, he has definitely increased, but his previous rns showed a decrease. Can only think that he needed to crystallise a loss before the end of the old tax year and now he has taken advantage of the lower price so as to rebuild his holding to the previous level.

[beeezzz] 12/5/2023 13:08

Looks like Black is increasing his holding.

Just another missed managed company IMO...Been this way since Fine line tech was abandon, after investing 10m you would have thought there could have utilised technology in some form or another.

[mesquida] 10/5/2023 16:10

Someone seems desperate to get out today, hope that it is not Mr.Black.

[wigwammer] 17/4/2023 16:45

Well I'm still hanging in there, but have been for a while now! I was surprised by the reaction the other day, given that the update provided little new information, but hinted that things may be sequentially improving.

[ali47fish] 17/4/2023 14:32

hard to know what to do here so unprtedictible with thi volatility -any guidance here from the knowledgeable investors

[tradertrev] 14/4/2023 10:16

Don't blame you 1gw. If this was even vaguely significant in the portfolio I would be doing the same. Let's just hope some bigger plastics engineering business can see some attraction and bid for it, though it's difficult to think the attractions outweigh the pension fund overhang.
If it hadn't been for the idiots at the pension fund falling for the siren voices of LDI salesmen, we'd be home free!

[1gw] 14/4/2023 09:31

Surprised it didn't tank more on that TU. Perhaps a view that they've now kitchen-sinked expectations and things can only get better; maybe there will even be a good settlement to the contract termination. I'm not convinced and have sold some more, continuing my exit from this serial disappointer.

[queeny2] 14/4/2023 08:25

"new focus on cash generation" oh dear but you have to laugh a little. How many times have they said this I wonder.

It really isn't a great statement. Yes, rising input costs will always hammer a minnow selling to much bigger customers as the power balance re prices is very skewed. Yes you can always lose a customer.

But to announce they are abandoning sales growth and running the business for cash is quite something, and that is clearly forced by their indebtedness and bank and the fact that seeking sales growth is expensive with very uncertain payback periods.

Some may remember a management team a few years ago who questioned how profitable CTP really was, whether they were always chasing their tail and in fact never generated free cash flow after taking into account necessary spending to keep sales from declining. (The same team also stated that the business was too small for the sector.)

So I think any hope that CTP is a valuable business whether by dint of margins or free cash flow or growth is good and over now.

(Yes, what cash flow there has been has disappeared into the gaping maw of the pension fund, I know)