Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
The revenue growth, in line profits and margin pressure were all flagged in the half way report.
The considerable strengthening of the balance sheet despite the increase in net
debt Is brilliant and gives us a clue to the reduction in the pension deficit.
The Framework contract "extended prove out" (delay) was mentioned when I asked how it was progressing at the last “investor meet the company” presentation. To be honest I was a little disappointed when I read it but that should be all ok now considering the UK side of it is in production.
The new global contract with an existing customer is a huge positive in my opinion. As is the 17 new (additional) product lines the 5 new significant accounts in the Czech Republic, USA, India and China.
Order intake in the Aero division improved significantly during the second half and especially in the final quarter. And looks like continuing as the business is being developed further.
Finally demand remains strong despite the headwinds in China and India and the problems from the war which most if not all companies are feeling.
A good update imo. Pity the share price doesn't reflect it.
Wow indeed Warren,
Yes the company faces the same issues as others, Covid in Asia, War in Europe , supply and inflation issues the world over.
Net debt increased and likely to increase further with planned expansion. The company is winning orders and large ones at that.
And the pension deficit has plummeted with the companies balance sheet a lot stronger.
I would like to write further but have a train to catch.....the often talked about 're rating is now certainly on the cards. Jmo
On the other hand Warren.
No announcement of disruption in China due to the recent Covid outbreak is reassuring indeed.
We should get and hopefully keep momentum after this further upgrade.
It's certainly a lot cheaper to update an old picture than to make a new one. Streaming services will be looking very closely at their film catalogues im sure...
Jmo
The company mentioned in last year’s presentation to shareholders that they had enough funds for the moment and that selling the aero division was not something they were considering.
It would be great if the pension situation improved (bond yields, members transferring out, mortality figures etc. etc.) enough to warrant the trustees removing the restrictions on dividends early. Even a very token dividend would transform the share.
I don’t think a share buyback, for all purposes like a dividend, returning money to shareholders, is something the company would do. We need a bigger float rather than a smaller one. Some institutions won't invest in a company with so few shares on offer.
JMO
Which hopefully puts a spring back into the shares.
Seems very sloppy Zhozho.
Hopefully our board have made this point direct to Pewl Hunt.
POSTED ON ADVFN EARLIER
Trades.
I log onto my ADVFN moniter.
Then click on CARCLO (2nd column).
Follow this by clicking on TRADES (top "header" column)
You get the trades for the day.
Now log out.
Type "CARCLO share chat" into Google search. Scroll down (3rd choice) "ADVFN"
Now click on TRADES (top again) this time you get all the trades ie, lse and AQSE
Now you will see both the 250k trade and the 200k trade side by side. Not sure if the bid offer info is correct but when I looked yesterday I also felt they could well both be purchases. Jmo
With the new HUBS opening, one hopes they can maintain the revenue growth.
Great update ...
Hi larrs,
There are a few interesting post over on ADVFN.
I get the feeling that investors believe it's current market sentiment with folks who got involved very early in this recovery, when the share was 5p ish , locking in any profits.
Like some others, I believe we will bounce back as we get closer to, and when the results are posted but as we all know the share is not without its risks. Jmo
Great update this morning.
Being the primary vendor for forthcoming European launch of a global streaming service, should give us more momentum for 22/23.
Hi Steelwatch,
Would be nice to see t/o up to £130m+. My own assumptions are a bit lower but still good especially with all that's going on in this complicated world. I can see the £130m especially if the framework contract is going well. We should also see further progress on the pension and borrowing side of things.
My estimate FY22 (assuming no surprises) for UOP is £7.5m to £8m and Underlying EBITDA of £13.7 to £14m.
Finally, I doubt we will have a trading update until after year end. Probably early April. Though, didn't we already have one I in disguise when our CFO added to his shareholding.
My opinion only.
Well done Phil.
A good vote from someone in an industry that is inherently cautious.
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.
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....
Thank for that Time2Retire.
No mention of CARCLO of course, we are a subcontract manufacturer.
(In case any new investors were wondering)
Can't open the link unless your a subscriber Time2Retire.
2022 hopefully will be another year of progress for Carclo.
Sales should be quite a bit ahead of last year, baring any Covid disruption. We were informed, Nov investor presentation, that the framework agreement signed Dec 20 is up and running in the UK and will be very shortly in the US.
That alone could be adding (depending on timing) over 1million a month, certainly, before the end of this financial year.
Hi Mstar,
Re- your concern:
Carco technical plastics has been around since about 1997. Carclo the company since 1924.
If you log onto Carclo Plc and click ‘our markets’ you will get a better understanding of the business. Also look at the recent accounts, presentations and annual report. The company defined benefit scheme was closed to new members some years ago.
The company recently entered into a 10 year framework agreement worth circa 10million over that period. The contract involves Carclo in the 1st instance, designing the product and creating the tooling for mass production. Tooling, I believe accounted for less than 14% of CTP revenue in the previous year. The company also manufactures Electronics/Consumer, Optics and Aero cables. I think your concern re profit, scale and LFTs are misplaced.
You point regarding the Pension deficit and borrowings are more valid in my opinion, though I think the company are taking great steps to sort this out. Certainly, the pension deficit and borrowings are being reduced considerably with cash to the pension and also to the bank. (The company generated over £7m cash. £1.8m pension, £3.3 working cap, cash £2m). The market generally should help as far as the pension is concerned together with the new initiatives regarding existing members taking benefits, also a reduction in life expectancy has taken place over that past couple of years. All this will become more visible in the coming year. A scenario where I believe the pension and debt will not impact the company would be if we were acquired by another company. A simple calculation (guess) of EBITDA x 20 minus Pension deficit and debt gives a share price circa £1.00.
I think the directors are doing a great job and I look forward to the day they can start paying dividends again. At the same time my fall-back position is that we could be acquired by a larger company.
All in my opinion only.
Presedent Biden has ordered 500 million at home rapid covid tested. Let's assume these are lateral flow tests.
The population of the USA is circa 333 million.
How many tests have you taken this last month. How many will you take before meeting up with the family this Christmas weekend.
500 million to cover the USA will do the USA for a while...does any other country use them? Imo? One thing is for sure CARCLO ( alongside others )make them....