Carclo Share Discussion Threads

[ansc] 30/11/2023 11:08

Other than net debt decreasing by £4.7m, not unexpectedly a somewhat depressing announcement.

[beeezzz] 30/11/2023 10:18

First sign of activity for months, still in the doldrums....whether they will ever get out is a tough call.

Maybe when those receiving pensions pass on, will this become more manageable.

[charo] 30/11/2023 09:56

As before.

[1gw] 30/11/2023 08:11

That's the anticipatory shareprice gains given back, then.

[ali47fish] 30/11/2023 07:55

igw ldis difficult to understand and evaluate impact

[1gw] 30/11/2023 07:28

LDIs still casting a shadow over the IAS 19 calculation of pension scheme deficit.

"These were offset by £9.6m adverse asset return experience over the period due to the Scheme's liability-driven investments being designed to hedge the larger actuarial liabilities and therefore being over-hedged relative to the IAS 19 liabilities, and due to falls in the Scheme's growth assets, offset partially by an increase in corporate bond spreads."

[1gw] 30/11/2023 07:22

Impressive performance on cash.

[1gw] 28/11/2023 17:00

Whisper it quietly, but there seems to be a bit of a bounce underway.

May come to a juddering halt with the reality of Thursday's report of course, but hopefully not.

[queenbreguet] 16/11/2023 12:12

Time to buy IMO

[valueinvturn] 06/11/2023 17:34

In my opinion if carclo can hold steady its backlog to generate the same turnover accounted in FY 2022/2023 I think we will be out of the food because this year the cost of energy will be lower so carclo could improve its margin. Further I expect, as the ceo stated, an increase of production efficiency too so this factor could furtherly help the margin increase. Last but no least they declared about investment to spend cost just for maintenance. All in I think they will be able to have a positive free cash flow to pay pension contribution and furtherly reduce debts. If carclo will give this evidence in terms of results the market will revaluate the company too.

[wigwammer] 03/11/2023 10:50

Have you got any thoughts on Carclo, valueinvturn, beyond the next set of results? ... longer term winner or loser?

[wigwammer] 02/11/2023 23:08

See you just joined today valueinvturn, and made one post on Carclo. What's your background on this one?

[wigwammer] 02/11/2023 22:55

Results should be out this month soHopefully find out more then. I guess the issue isn't top line - they have plenty of that. Issue is getting margins and returns higher. Sounds like EMEA changes have worked well so far, now US is in focus. If Carclo survives, can get margins up, and further out grows at industry levels, then likely to be a worthwhile journey for holders off an £8m valuation base.

[valueinvturn] 02/11/2023 18:38

@wigwammer giving a look to the last presentations they expressed a positive outlook about design technical plastic and aerospace divisio but they didn't give an outlook about the most important division ( production technical plastic). I hope we will not have a new negative news in the next future. What about your thoughts?

[ansc] 02/11/2023 11:56

Just in case there are any long-suffering shareholders (like me!) still around:

25 October 2023 - Carclo plc Announces Strategic Decision to Close its US Derry NH Facility

Ossett, October 25, 2023 - Carclo plc, the leading global provider of high-precision components, offering comprehensive services from mould design, automation, and production to assembly and printing, serving the life sciences, aerospace, optics, and tech sectors, announces a strategic decision to cease operations at its US Derry NH facility.

The facility, acquired in 2016 with the aim of expanding toolmaking capabilities, was transitioned into an injection moulding shop catering for short run business for diverse markets. After careful evaluation and a comprehensive review of the Group's strategy, Carclo has determined that the short run business and its associated projects do not align with the company's long-term strategic vision and as such the decision to close the Derry facility was reached.

The Group acknowledges and values the contributions of every team member to both the Derry facility and the organisation. It's essential to note that this decision does not undermine the dedication, professionalism, and hard work exhibited by the Carclo Derry team.

The one-time expenses associated with the facility closure are estimated to total GBP0.8 million (including asset write offs, inventory and fixed assets), with a cash outflow of GBP0.2 million. These costs are integral to the execution of our transition plan. The strategic move is expected to result in annualized savings of approximately GBP0.4 million in unadjusted EBIT (uEBIT).

To support affected employees during this transition, Carclo is implementing a comprehensive employee support plan. This focusses on job placement assistance and access to counselling and career transition resources.

Customers and suppliers who have been partners with the Derry NH facility will receive specific communications regarding the closure. Carclo is committed to addressing their concerns and ensuring a smooth transition for all ongoing contracts and arrangements.

This decision aligns Carclo's operations with its core strategy of factory specialization, process standardization, operational excellence, financial stability, and sustainability.

[wigwammer] 28/9/2023 10:43

Yes. I don't know the client specifically, but it was for covid testing. Dropped because of reduced expected demand

[garth] 28/9/2023 07:45

Did anyone ever get a sense of who the client the aborted tooling was for, and why it was pulled?

G.

[wigwammer] 28/9/2023 06:42

I agree that wipac was poorly managed - now divested - and pension returns have been poor historically (priced in with a £10m market cap, when it used to be closer to £100m)... But surely a 30%+ rise in sales over 3 years is evidence that large medical customers are increasingly GIVING business to Carclo, not taking it away? The point that tooling costs are shared, and would be expensive and disruptive to move, adds to the stickiness of customers? Surely the experience built over many years, of making hundreds of millions of tiny components, reliably and at competitive cost adds to reasons to stay with Carclo? The manufacturing costs are a small part of the end price of these medical devices, so does it make economic sense to offshore to distant pastures to make a few bps of margin? This is a good business with a lot of experience and know how in a complex area - all to play for... ATB

[beeezzz] 27/9/2023 17:49

They got themselves into this mess through overpaid management making serious errors, which means shareholders get shafted....Those running the pension scheme should also some responsibility for poor performance..

A reason why final salary pensions have been phased out unfundable....

I don't think this company will ever recover, when you rely on others for your income via contracts, rather than producing your own products, those contracts can be sourced elsewhere, leaving Carclo with nothing. Don't forget the tooling belongs to the client.

[dozey3] 26/9/2023 17:25

As I posted on the Renold(RNO) thread, another there must be a read-across from the pension turnaround at Wincanton revealed yesterday. A change of sentiment such as the opinion of charo above (held by many) could be dramatic. We have a good company here struggling to escape.

[wigwammer] 26/9/2023 10:49

Again charo is part of the 99% club - they can't see past the pension.... Exactly why Carclo remains an opportunity with bags of potential.... AA corporate bond yield hit 5.4% yesterday - a multi year high. Those with a modicum of knowledge about the pension scheme will likely understand why this is good news. ATB

[charo] 26/9/2023 05:06

Again until pension sorted uninvestable.

[wigwammer] 25/9/2023 21:12

The market isn't looking at Carclo at the minute. So when you sold your shares, you were the market. I suspect investors will be looking again - H1 numbers in November will be set against a soft H1 last year, so should look pretty good. In the meantime, thanks for the shares.:. ATB

[beeezzz] 25/9/2023 17:38

Market does not agree with you, 30% increase in three years is meaningless unless you know what the starting point is i.e. 1 increase 2 is 100%....

Which why companies use percentages it looks better than it probably is, you stick to dreaming.....This company will not be around for much longer in its present form..