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Not a big company but seems to be doing all the right things. Regular buys by directors this year and last is always a good sign. It is a while before next results or trading update.
Well done Phil.
A good vote from someone in an industry that is inherently cautious.
Always good to see a director buying shares.
Avacta total sales from all divisions for 6 months to 30th June 21 were £2.321m.
If we said after materials and mark up that leaves about £700k for the manufacturer.
Point being, if Carclo were the manufacturer, that's about 2 days work even if the total amount was attributed to lft's which its not.
some understandable selling
still imv trades on rich (>10) EV/EBIT multiple (rich given lack of quality/certainty of earnings)
tp <25p
Carclo supply the very largest Pharmaceutical companies in the world.
Avacta put out an RNS this am because their lateral flow test (LFTs) has come under scrutiny and it's use stopped whilst it sorts things out.
Avacta is a great company and I have heard once or perhaps twice that CARCLO manufacture their LFTs. I don't know if they do or not. What I do know is that CARCLO have been manufacturing LFTs for problably longer than Avacta has existed. It's also worth mentioning that Nick Sanders , in our last presentation played down the amount of Covid work we are doing. He went on to remind us that diabetes and (can't remember) the other bits.., he said ,demand for CTP products in the medical and diagnostics sectors has continued to increase from both existing and new customers and we expect this to continue in the POST -pandemic period.
In my opinion Carclo are going to have a cracking year. The Framework agreement should now be 100% up and running . The pension and debt hopefully will be reduced further. Aerospace order intake was ahead of sales so that will start showing through. And now all flight restrictions in the UK have been lifted. Also the company have reduced Central costs considerably fy21 4.9million plus. Fy22 likely to be around 2.8million or less. Yes the company said trading marjins for the second half are expected to be slightly lower reflecting the current higher cost environment but the board anticipates full year underlying trading will be slightly ahead of slightly AHEAD OF EXPECTATIONS .
Look at this time as an opportunity, buy on the dips. All in my opinion.
Happy days ahead....
There has been no news regarding any tie-ups with any other company over lfts and you won’t be able to find anything except by following a carclo lorry to see where it delivers plastics to!
Expected this dip before results - as pipedragger says, another chance to top up cheaply again before the market starts to take the company seriously.
I don’t think that it has ever been confirmed that they were manufacturing components for Avacta, more assumption. I remember from one of the recent investor presentations that the board would not comment on this area, citing client confidentiality.
All fine but I hadn't realised CAR was the primary supplier of these kits or their contents. Are we sure about this?
Anyway I agree it is top up time.
As reported on 15 December 2021, the AffiDX® SARS-CoV-2 antigen test has been shown to detect the Omicron variant of the SARS-CoV-2 virus in patient samples in a small clinical study. Whilst the AffiDX® antigen test is effective at identifying high viral loads of Omicron, further laboratory analysis carried out by Avacta indicates that the sensitivity of the test is reduced at lower viral loads when compared with the sensitivity of the AffiDX® test with previous SARS-CoV-2 variants.
It’s a temporary move while they resolve however they haven’t been selling them in the UK since October, before the last trading update - not sure if Carclo are even involved
For what reason are they avacta removing their flow tests from the market?
It appears as though the these stories have, rightly or wrongly prompted selling at Carclo this morning.
Possibly the news avacta removed their latflow testing from sale this morning and also the statements from Sir John over the weekend.
Possibly an overreaction — As not sure how much either has an impact on Carclo.
Also rose back to 40p on very little volume — now looks like a good opportunity to buy IMO
Any ideas, seems to be going okay as a recovering company?
Thanks Dartron I didn’t realise that it wasn’t a ‘done deal’. I think what this shows (and we all know it anyway) is that the government has no money. I was reading an article from a think tank, the gist of it being that the government will be desperate to keep fuel bill rises to the bare minimum because if the full rise is passed on to the general public it could push inflation to 6 or 7% and this could make it impossible for the government to pay its bills / interest on the debts. I guess they need to save money like never before…
The news is currently unconfirmed, and just speculation. But Nicola Sturgeon sums it up well:
If UK government is really considering this (@scotgov? certainly not signed up to it) it is utterly wrongheaded. Hard to imagine much that would be less helpful to trying to ‘live with’ Covid.
www.thetimes.co.uk/article/end-of-free-lateral-flow-tests-as-country-told-to-live-with-covid-3bpz8lnqf
What the views on todays news guys? Do we think that the headline regarding the government bringing free Lateral Flow tests to an end is bad news? Or, do we think that demand has been outstripping supply so it’s of limited consequence for companies like Carclo?
Thank for that Time2Retire.
No mention of CARCLO of course, we are a subcontract manufacturer.
(In case any new investors were wondering)
Of those approved, 21 are from businesses based in China, while at least another three are manufactured there.
Only one British company has received approval from the Government’s Porton Down testing labs and is delivering lateral flow kits to the NHS from its UK manufacturing facility – SureScreen. The company this month said it was increasing its production in the UK. It makes 1m tests every day.
In December Neale Hanvey, an Alba Party MP, accused the Government of “pulling the plug on the UK diagnostics industry when additional capacity is so obviously required”.
Tim Peto, another Oxford medical academic who works with Porton Down and advises the Government on testing, said: “British companies are unhappy, and I don’t know what we can do about that. Are we really meant to spend more time on them than on others?”
Let’s try and get as good a test as we can out to people who need it,” he added.
“That takes skill and patience and many companies have achieved a great result, so companies who cannot deliver should stop complaining and try harder.”
Sir John said supplies were “now looking good”, attributing much of the disruption to the public ordering a surplus of tests in the run-up to Christmas, to ensure they could continue seeing friends and family.
Last week, 19m lateral flow tests were distributed to the public. Officials believe the supply chain woes which plagued the country over the festive period have begun to fade.
Sir John’s comments follow growing scrutiny over where the UK is sourcing its lateral flow kits from. The Health Secretary, Sajid Javid, has blamed the shortage on the fact that Britain is “competing in a global market”, according to the Conservative MP Sir Roger Gale.
The majority of the lateral flow tests distributed by the NHS are manufactured in China, including tests made by US company Innova which has signed contracts with the Government worth as much as £3.7bn.
Companies have to go through a rigorous assessment process to be allowed to deliver tests through the NHS. More than 140 tests have been submitted for that assessment, and only 46 have been approved, according to the latest figures on the Government website.
The senior Covid scientist Sir John Bell has warned British manufacturers to “stop complaining and try harder” to make working lateral flow tests, after they claimed widespread shortages were caused by undue reliance on China.
Sir John, Regius Professor of Medicine at Oxford University and one of the Government’s leading advisers on the pandemic, hit back at complaints that domestic suppliers have not been able to secure approval for their tests.
He said there had been “quite a lot of noise from British manufacturers of lateral flow antigen tests”.
“But British companies have been, with one exception, universally unsuccessful at making these tests,” Sir John added.
One British company, Mologic, last year claimed it had been “stonewalled” by ministers over its attempt to get its kit approved. Some firms have tried multiple times.
Sir John said the Porton Down validation lab “just fairly assesses all the products that come and with the exception of SureScreen, which did really well, the UK industry has actually done badly and everybody needs to think about that”.
Can't open the link unless your a subscriber Time2Retire.
Interesting article, even if it puts British industry in a bad light
https://www.telegraph.co.uk/business/2022/01/08/british-firms-must-try-harder-make-covid-tests-says-sir-john/
Latrobe facility seeking new employees for expansion again.
https://www.facebook.com/108547460596320/posts/635382187912842/?sfnsn=scwspmo
Carclo is seeking Team Members for Inspector Packers positions at the our Latrobe facility. The Day shift is 7 AM to 7 PM and the Night shift is 7 PM to 7 AM. (12-hour shifts on a 2-2-3 schedule). Previous experience is a plus, but we will train you!
Basic duties are:
Perform careful visual inspections to assure product quality.
Package product as directed; label and prepare product to customer standards.
Understand and operate all equipment in the work station.
Lift and move objects up to 50 pounds.
Stand and walk for an extended period of time
Follow procedures for proper startup and shutdown of equipment.
What are the benefits?
Competitive hourly wage
Outstanding benefits package that includes medical/dental/vision, paid vacation, paid holidays, and a 401(k) plan
Opportunity for advancement with accredited apprenticeship programs
Company sponsored events
Retention bonus
Carclo Technical Plastics is an EOE/ADA
Looking at the progress in repaying debt for both the loan and the pension, we are looking at another 5M by the next period.
If the EV remained at 80M, then the share price would be 46p.
Factor in increasing earnings per share, long term contracts + Covid work, you could even say this company has a moat when it comes to technical plastics. All this without any contribution from Aerospace - they could sell that arm, get debt down and focus on the plastics. Yeah, I don't think we will see 25p personally. However, I do want to buy some more, so a little reduction in share price would be appreciated. Ill bite at 36p next, if we see it. You EV calculation is a little misleading too, as it is too basic, and now out of date, the next trading update will provide a much better reference for a valuation.
Good luck with your Carclo investment though.
EV is over £80m dyor/calcs
why should it be traded so high?
tp <25p