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Carclo – profit warning and banking covenants ‘discussions’ (as warned here)

Previously writing on company describing itself as “a global provider of value-adding engineered solutions for the medical, optical and aerospace industries”, Carclo (CAR) last week with the shares down to 13p I noted it stating it “evaluating the financial impact and taking mitigating actions” following a contract cancellation, but how many mitigating actions can it take?!. Now a further “trading update”.

NEWSFLOW

Carclo (#CAR) – anticipates H2 “materially lower than previous expectations”, discussing covenant amendments with bank

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Carclo – already anticipating ‘limited headroom on its interest cover covenant’, now a contract cancellation!

A “Contract Cancellation” announcement from Carclo (CAR), which includes that the contract was “expected to deliver incremental sales of between £10m and £15m annually for the life of the contract with the board's most recent expectation being that production volumes would start building from the last quarter of the current financial year”. So what of a current share price response down approaching 9% at 13p, a £9.5 million market cap?

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Carclo – argues “strong” demand, so why are the shares slumping?...

Carclo (CAR) “is pleased to report that the business expects to report a strong performance for the year” and that “demand in the group's key markets remains strong coming into the new financial year”. So what of a current share price of 24.5p, down nearly 10%?!...

NEWSFLOW

Carclo (#CAR) – CEO Antony Collins “step down… with immediate effect” following board “re-evaluated the management structure”

NEWSFLOW

Carclo (#CAR) – Q1 LFL revenue -12%, bank & pension scheme financing agreements

NEWSFLOW

Carclo (#CAR) – shares suspended, interims “well advanced” but unable to be published by end-2019 deadline

NEWSFLOW

Carclo (#CAR) – €1.1m sale of Wipac Czech, Wipac UK sale “negotiations now in an advanced stage with a single party”

NEWSFLOW

Carclo (#CAR) – notes some trading & debt progress, though Finance Director designate “has decided not to continue in the role and will leave the group”

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Carclo – now net assets-based ignominy follows previously reported “continuing discussions” and “poor performance” & related disappointment

Carclo (CAR), the “fine tolerance injection moulded plastic parts” manufacturer, has announced that “a Notice of General Meeting and the associated Form of Proxy have been sent to shareholders” – but last year’s financial results are still to be published?!...