Member Info for Lindon

wassap... my take on it is that not all that 30% is attributable to the FLT side of CIT but there could possibly be around another £5 million that might need to be written off. Difficult to judge IMO due to the shared technology and resources between FLT and printed electronics and also if they can find another outlet/market for FLT. Hopefully that and other aspects will be become more clear with the impending pre-close statement. It's also going to be interesting to find out what they decide to do with the FLT Cambridge site. News from Atmel's Colorado fab... Atmel have apparently informed the workforce that XSense production will stop on 1st Oct. Carclo have indicated they will support Atmel in these final stages but should incur no further cost for themselves.

Further clarification about the capital reduction plan: Following the implementation of the Cancellations, there will be no change In the number of ordinary shares of the comany in issue, nor will any new share certificate be issued as a result of the cancellations. This capital reduction is primarily brought about by the cancellation of the share premium account which is valued at just over £21million at the present time. The cancellation will also incorporate a small capital reserve account valued at just over £1million. In much the same way the write down is an accounting exercise (and it still remains to be seen if any more is needed to be written down for CIT!!).... so is this capital reduction.. but this one simply moves money to distributable reserves where it can be used if required! VERY Interesting I thought... that the values of the write down and what they can now have in their mitts if they need too... are pretty much the same!!!

lignemaginot... doubt anyone has to worry about having their shares canceled. It's more of a cash flow accounting exercise that frees up money to enable more certainty on a companies ability (amongst other identified expenditure) to pay dividends. There was never much doubt that the court would agree to the move but it could of... and is entitled... to put some very restrictive clauses on capital reduction plans... particularly when there is a large pension deficit as in CAR's case. Sometimes those restrictions are too restrictive for the company to proceed and they call it off. The fact that there appears to have been nothing untoward placed on CAR's capital reduction plans is IMO a massive positive... and an important potential obstacle now removed.

The Company announces that at a hearing held yesterday, the High Court of Justice in England and Wales confirmed the reduction of the Company's share premium account and capital redemption reserve ("Capital Reduction") under section 648 of the Companies Act 2006. Subject to office copies of the Court Order being delivered to and registered by the Registrar of Companies it is expected that the Capital Reduction will become effective today.

This is the last data list 30/09/14- 02/0215 (Financial Times) I know Ruffer increased their holding from around 12% to 13% in 2011 but dunno when they first bought in. Obviously they were way in front of the rest who only seem to have very small holdings... any dispersals from the those others would probably have gone or may yet go through relatively unnoticed until announced. Institutional shareholders Ruffer LLP as of 11 Dec 2014 9.22m 13.99% Henderson Global Investors Ltd. as of 22 May 2014. 5.89m 8.94% Standard Life Investments Ltd. as of 22 May 2014 4.30m 6.52% Schroder Investment Management Ltd. as of 22 May 2014 3.87m 5.87% Legal & General Investment Management Ltd. as of 10 Jun 2014 3.29m 4.99% BlackRock Investment Management (UK) Ltd. as of 18 Dec 2014 3.16m 4.80% Barclays Bank Plc (Private Banking) as of 01 Dec 2014 2.49m 3.77% Redmayne-Bentley LLP as of 22 May 2014 2.10m 3.18% M&G Investment Management Ltd. as of 22 May 2014 2.00m. 3.04% Cavendish Asset Management Ltd. as of 31 Dec 2014 2.00m 3.03% 58.13% held by top holders Data from 30 Sep 2014 - 02 Feb 2015Source: FactSet Research Systems Inc.

Hawker... "With any luck this will mark the end of the heavy selling pressure that has dogged this stock for the past two years" YES! I agree that HAS been very much the case for a very long time! Hopefully and fingers crossed there will be no new similar pressures generated. Ruffer were the largest holder and now are almost completely out and their reduction probably accounts for virtually all the large sells we have had. So on that score it may not be too detrimental to the sp. Fingers crossed no other large holder wants out of it!

So Ruffer have reduced... down from 13% to 7%. That is quite a considerable reduction. IMO that is a direct repercussion of how the large holders perceive the risks that have now became more apparent regardless of trading above expectations. Given the large trades over the last few days there is a good possibility we will get more of these institutional reduction announcements.

True, but the dividend payout being at risk is also 'material' IMO... certainly the large institutional holders would think so ... and CAR didn't mention that in the IMS. It could also be the case therefore that the pension deficit recovery plans may be at risk or could also become at risk if capital reorganisation doesn't get passed... and that is ignoring the very real possibility there is still a further write down for cit yet to come! The reorganisation plans are almost certain to passed by the shareholders... but the possibilities of the court putting in pension protection clauses due to the deficit cannot be discounted... they may very well do that.

gocarclo... definatly not good news IMO. They said if capital reorganisation doesn't get approval then even their ability to pay the next scheduled dividend is in doubt. THAT confirms they have got cash problems! The pension deficit problem was also missed out of the IMS... they obviously envisage THAT will need more funding! All that and we still don't know what the financial implications of XSense failure is going to cost them. On top of that if the court put any obstacles in the way do what the bod hope to achieve... and that should in no way be discounted... then Carclo will have real problems. In any event a new rights issue/placement will be an almost certainty once the dust as settled IMO. As I said previously... the capital reorganisation isn't just an accounting exercise. It's a serious event and far more than just about paying dividends. It's more than possible the next dividend will be cancelled whatever happens. I've seen it said that this was away of increasing the divi payout.... far from it IMO! I'm not surprised the sp has fallen back... and I expect it to subsisde further... but I never understood why it went up after the reorganisation warnig... So I know nuffin' :)

Nothing all that unusual for the sp IMO... Largish trades happen, but the announcement is now available. Probably not so good as some were expecting! http://www.carclo-plc.com/~/media/Files/C/Carclo/pdfs/carclo-gm-notice-cl-final.pdf.

volcano.... "but essentially this is an accounting change that will enable Carclo to pay out a greater share of future profits as dividends". Mmm... maybe... Although I don't completely understand it I believe this capital reorganisation is about far more than just an accounting change in order to pay out more dividend if there are distributable reserves. It's very strange that they included this at THIS time in a IMS. I'm very suspicious that this is not all it seems and I guess we will have to wait to see the figures at the yr end but I'm not convinced if there are not lots more in write downs yet to appear and that is the main reason behind the capital reorganisation.

Hi gocarclo, the IP belongs to Carclo, not Atmel. The agreement gave preferential access to the FLT and Carclo's photolitho production facilities till autumn 2020. As part of of that contract there will have been none disclosure clause placed on Atmel in order to protect CAR's IP. What Atmel now decide to do with their sensor fab in Colorado is of course up to them. As far as Carclo selling their IP and photolitho production equipment is concerned I would draw your attention to what Carclo themselves have said: • Printed Electronics strategy has strong linkage to Touch outcome due to shared technology (FLT), capabilities and resources. Well the 'touch outcome' is now known! We have known for a long time that XSense was finished but it was vital to Carclo that Atmel officially accepted that sooner rather than later. However based on what that sentence about shared technology (FLT) capability and resources stated... and with an appreciation of how important it is to retain both the IP and the technology for the CTP and CDS divisions... I can't see anyway why they would want to dispense with them. Also they may be able to identify other new areas of industry where there maybe other options for photolitho coated film. But there maybe scope for selling the new site. All those options will be explored under the SR. The only remming concern I have about there being little further costs to Carclo on exiting the agreement is the wording of the last paragraph in the RNS. I'm not sure what that piece of 'management speak' is intended to imply. It could mean further costs ARE involved. There ARE also bound to be further associated costs with closure... but again all that should become clear at the yr end. The MOST important thing was getting the cancellation of that agreement. It was an enormous obstacle to Carclo's future... which should now take a turn for very much better.

"This is an important milestone in the completion of our own strategic review, which remains on track to be completed by 31 March 2015" For Atmel to simply write it off with little further cost to Carclo... and considering CAR could have been kept locked into the exclusivity agreement for another 6 yrs... is indeed a massively important milestone. Carclo are now free to pursue whatever options and direction for the photolithographic operations they deem to be most lucrative. The pre-close statement isn't far away, the rest of the divisions are exceeding already high expectations and the sp should now start to reflect that and head north.

Yep. Hopefully they have also come to an amicable agreement to terminate the contract. Carclo IMS will tell us in the morning.

Atmel Fourth Quarter 2014 Earnings Conference Call Feb 4, 2015 2:00 PM PT Listen to webcast http://ir.atmel.com/eventdetail.cfm?EventID=154215

... earnings call will be Feb 4th. Carlo IMS should be soon after.

iswhatitis... not particularly good news if Carclo have not yet suceeded in negotiating their way out that uncompetitive business model... although there is always a slim chance that it has been REnegotiated on more favorable terms without the margin sharing element.

Hi gocarclo, I'm afraid it won't wont work like that. This is the exact wording from the analysts presentation: "Business model results in margin sharing and is uncompetitive" Atmel are in the driving seat & Carclo's position is rather tenuous. As I see it the options are: 'A' BOTH companies want to cut their losses & they come to an amicable agreement to terminate the contract. 'B' Atmel want Carclo to cough up a sum of money in order to be released from the contract. 'C' Atmel insist that the contract stays in place until it runs out (Nov 2020) If Atmel insist on retaining their exclusivity even without the likelyhood of any further sales (which in ANYCASE Carclo have said is an uncompetitive operation for them) then they have got some serious problems. They are stuck with building & production facilities with the lights turned off, the doors locked & the staff dispensed with! Further & simply because of that 'exclusivity' they will not be able to explore any other applications that might be possible for the photolitho operations... & as they have said... printed electronics (which takes place in the old Cambridge premises is inextricably tied into what happens with the 'new' premises & the photolitho coated film production line. The last results also stated that they expect debt to rise to a peak around £28m this year. (I dont like that... this is supposed to be the time when they are raking in the cash!) They have not got the cash to legally fight to get released from the contract... even if that were possible. The only positive I can see is that Atmel have reportedly invested around $15-17m & WILL want try to cut their own losses & close their Colrado fab & agree to release their claim for exclusivity. But the Americans are ALL about money... & they may insist that Carclo pay for that even if they would like to close it down themselves... if they go down that route then the possibility of a rights issue comes into play again so Carclo can pay up! Simply shutting up both companies operations & letting them sit there idle for the next six years in the hope that something else MIGHT happen is not a viable business option for either of them. They have to get a return on the investment for their shareholders or write it off. As the presentation pointed out... They have mutual legal obligations & the partnership contract is rather complex! Also... even IF there was the possibility of using the coated film photolitho tech in some other application it will only be very small scale compared to the mass production that was expected for mobile devices & would prob be even more uncompetitive for Carclo! I notice that the Omni 10 seems to be no longer available in the HP store... the production lines will be falling completely idle once the other two devices come to the end of their shelf life... staff will have to be released & lights turne

gocarlo ... No. XSense as a mobile sensor solution is finished as far as Carclo are concerned. They are trying to extricate themselves from the 10 year exclusivity agreement. Apart from paying back whatever remains of the prepayment that agreement still has another 6 years to run & as per my previous post they may have substantial problems trying to get out of it. The following are the main 'bullet points' from the 18th Nov. analysts presentation: * Various strategy options under consideration in conjunction with external advisors. • Partnership obligations complex and influence strategy direction. • Printed Electronics strategy has strong linkage to Touch outcome due to shared technology (FLT), capabilities and resources. * They also said that the business model with Atmel is non- profitable for them. The two main points a I take from that presentation is that item two could have a very detrimental effect on item one & the future CIT printed electronics is very much dependant on a resolution being found on that exclusivity agreement. The exclusivity agreement gives Atmel preferential access to Carclo's production facilities (as per 2010 half yr RNS) If Atmel don't want to let XSense go & want to retain it in mothballs for any future use that MAY arise then Carclo could have some very real problems.

Atmel have announced they will have booth at the next CES show in Las Vegas starting January 6th. Depending on if or not... there is any XSense involvement it may give an early indication on how Carclo are progressing with the talks to extricate themselves from the 10 year exclusivity agreement. If Atmel ARE still pushing XSense at the show then its likely that no agreement has yet been reached & they are not willing to release Carclo from the agreement & are insisting that the exclusivity runs its full course (another six years). The only alternative in that scenario maybe for Carclo to seek Atmel's agreement to buy themselves out of it. If there is NO mention of XSense it could indicate that Carclo have been successful in terminating the agreement. In which case they should be free with their appointed advisors to seek other avenues for the coated film touch technology... if there are any!