C* Rebel buys more CAR shares29 Sep 2025 10:02
Rebel's been buying a few more CAR. Here's his latest missive from his weekend round-up:
"On Friday, Carclo, CAR had their AGM, accompanied by a trading update.
A good update and as much as you would expect. There’s been a bit of currency headwind but that has been offset by stronger performance and they are inline with expectations.
“The Group’s trading performance year to date is in line with management’s expectations, with strong margin performance and positive underlying growth, excluding the effect of exchange rate movements, in both CTP Manufacturing Solutions and our Speciality business.”
The higher margin Speciality Division is growing at good pace, this will be one of the exiting areas going forward as Carclo develop their own proprietary products with much higher margins.
Debt was higher as they have just made the £5.1m pension payment. That won’t be in H2 and in future and next year it will only be £3.5m, so H1 was the brow of a hill in cash respects imo.
I think we know now Frank Doorenbosch, CEO, tells it as it is, doesn’t over promise and likes to over deliver. I wouldn’t have expected more than today’s statement as it’s only a few weeks since the delayed results that smashed forecasts. Results are likely the end on November.
Initial reaction was a dip in the price as traders, as ever, just like previous times, sold out because they hadn’t got a short term scalp opportunity, but within minutes, longer term investors were picking up the shares.
Any smart trader would have known there wouldn’t be anything super sexy in the statement because the CFO bought 10k shares just last Friday. If there had been anything significantly positive to say, the CFO would have had insider trading allegations to answer, buying a week ahead of it.....
Anyway, CAR CFO’s buying shares is always a nice signal to me.
Stockopedia now give CAR a Stock Ranking of 97 and Momentum rating of 98 and significantly rising earnings consensus:
The AGM was on investormeetcompany and was worth watching, Two takeaways from that was they are confident of getting US margins up to where they are elsewhere and as far as forward visibility goes they are in a better position to previous where they relied a lot on one big customer where now they have a lot more smaller contracts which makes visibility more reliable and less volatile.
As we go into the interims, investors will be focussing on earnings forecasts for 2027 which now stand at 9.19p, a fwd PE of 6.8 @ 63p a share, where CAR stood Friday.
I added a small few – dips in stocks you like and have researched are buying opportunities usually.
Looking fwd to the interims now – and the traders return no doubt 😊"
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