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Carclo PLC (GB:CAR)
LSE:CAR
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Carclo plc (CAR) AI Stock Analysis

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GB

Carclo plc

(LSE:CAR)

Rating:58Neutral
Price Target:
Carclo plc's overall stock score reflects significant financial challenges, such as high leverage and declining revenues. Despite these issues, recent corporate events and technical indicators provide some positive momentum. However, the poor valuation and financial instability limit the stock's attractiveness. Strategic improvements and corporate advancements are necessary for long-term success.

Carclo plc (CAR) vs. iShares MSCI United Kingdom ETF (EWC)

Carclo plc Business Overview & Revenue Model

Company DescriptionCarclo plc is a leading technology-led plastics company headquartered in the United Kingdom. It operates primarily in the medical, optics, and aerospace sectors, providing high-precision injection molded plastic components and products. The company is known for its advanced engineering and manufacturing capabilities, offering services that range from design and development to full-scale production for a diverse range of industries.
How the Company Makes MoneyCarclo plc generates revenue through its three main divisions: Technical Plastics, LED Technologies, and Aerospace. The Technical Plastics division is the primary source of income, focusing on the production of high-precision plastic components for medical and industrial applications. This division serves clients who require complex and high-tolerance parts, which are essential in the manufacture of diagnostic devices, medical equipment, and other industrial applications. The LED Technologies division offers products and solutions related to LED lighting and optics, catering to both automotive and consumer electronics markets. The Aerospace division provides manufacturing solutions for the aerospace industry, including the production of control cables and other components. Carclo plc's revenue model is heavily reliant on long-term contracts and partnerships with leading companies in these sectors, ensuring a stable and recurring income stream. The company's focus on high-quality, specialized manufacturing allows it to maintain a competitive edge and secure significant business relationships.

Carclo plc Financial Statement Overview

Summary
Carclo plc faces several financial challenges, including declining revenues, profitability pressures, and high leverage, which pose risks to financial stability. Despite some improvements in cash flow, the overall financial position remains weak and requires strategic adjustments to ensure long-term sustainability.
Income Statement
45
Neutral
Carclo plc's income statement shows declining revenue growth with a negative net income trend over recent years, impacting profitability. Gross profit margin is relatively stable, but the EBIT and EBITDA margins have declined, indicating efficiency challenges.
Balance Sheet
30
Negative
The balance sheet reflects high leverage with a debt-to-equity ratio suggesting significant risk. The company's equity has declined substantially, reducing the equity ratio, indicating financial vulnerability.
Cash Flow
55
Neutral
Carclo plc's cash flow performance is mixed, with recent improvements in free cash flow. However, the operating cash flow to net income ratio is volatile, highlighting inconsistencies in cash flow relative to earnings.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue126.71M132.67M143.44M128.58M107.56M110.51M
Gross Profit62.53M72.10M25.86M27.87M25.09M33.75M
EBITDA10.93M10.15M12.15M15.28M14.51M8.06M
Net Income-1.74M-3.30M-3.96M5.80M7.41M-8.45M
Balance Sheet
Total Assets97.28M100.94M122.67M128.20M116.02M118.50M
Cash, Cash Equivalents and Short-Term Investments7.34M5.97M10.35M12.35M15.48M19.31M
Total Debt32.59M35.43M44.71M44.75M43.08M46.67M
Total Liabilities96.44M97.28M111.07M103.78M108.11M109.77M
Stockholders Equity863.00K3.69M11.63M24.44M7.94M8.76M
Cash Flow
Free Cash Flow4.17M7.33M1.57M-1.89M1.12M10.88M
Operating Cash Flow5.23M10.37M3.99M3.05M8.44M19.41M
Investing Cash Flow-660.00K-2.40M-1.03M-4.23M-6.05M-825.00K
Financing Cash Flow-3.76M-12.14M-4.67M-2.49M5.05M-3.13M

Carclo plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price45.00
Price Trends
50DMA
42.86
Positive
100DMA
34.48
Positive
200DMA
31.39
Positive
Market Momentum
MACD
1.10
Positive
RSI
53.88
Neutral
STOCH
64.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CAR, the sentiment is Positive. The current price of 45 is below the 20-day moving average (MA) of 46.89, above the 50-day MA of 42.86, and above the 200-day MA of 31.39, indicating a neutral trend. The MACD of 1.10 indicates Positive momentum. The RSI at 53.88 is Neutral, neither overbought nor oversold. The STOCH value of 64.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CAR.

Carclo plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
£2.18B16.5621.67%209.84%10.41%11.04%
79
Outperform
£7.75B26.4713.99%190.20%6.10%33.05%
72
Outperform
£1.36B13.978.44%373.71%5.97%-9.81%
GBSFR
68
Neutral
£96.06M30.561.55%10.54%6.00%-84.54%
64
Neutral
£1.73B10.396.12%301.19%0.55%-32.84%
GBCAR
58
Neutral
£35.24M-44.37%-8.33%74.38%
GBTTG
54
Neutral
£186.69M-22.95%498.19%-15.12%-690.29%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CAR
Carclo plc
46.60
19.80
73.88%
GB:SMIN
Smiths Group plc
2,336.00
646.14
38.24%
GB:TTG
TT Electronics
103.00
-46.09
-30.91%
GB:BREE
Breedon
388.00
-8.60
-2.17%
GB:SFR
Severfield
35.10
-41.79
-54.35%
GB:MGNS
Morgan Sindall
4,660.00
2,046.54
78.31%

Carclo plc Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Carclo plc Announces Change in Voting Rights Structure
Neutral
May 2, 2025

Carclo plc has announced a change in its voting rights structure following a notification from First Equity Limited regarding an acquisition or disposal of voting rights. The notification indicates that First Equity Limited, acting as an investment manager for Armstrong Investments Limited, has adjusted its holdings, resulting in a decrease in voting rights from 3.650272% to 2.635551%. This change reflects a shift in the company’s shareholder structure, potentially impacting its governance and strategic decision-making processes.

Spark’s Take on GB:CAR Stock

According to Spark, TipRanks’ AI Analyst, GB:CAR is a Neutral.

Carclo plc’s overall stock score reflects significant financial challenges, such as high leverage and declining revenues. Despite these issues, recent corporate events and technical indicators provide some positive momentum. However, the poor valuation and financial instability limit the stock’s attractiveness. Strategic improvements and corporate advancements are necessary for long-term success.

To see Spark’s full report on GB:CAR stock, click here.

Business Operations and StrategyFinancial Disclosures
Carclo plc Reports Strong Financial Performance and Strategic Advancements
Positive
Apr 30, 2025

Carclo plc has reported a strong financial performance for the year ended 31 March 2025, surpassing management expectations with significant margin expansion and a notable reduction in net debt. The company has achieved strategic milestones, including a partnership with BZ Commercial Finance DAC, enhancing its financial platform for future growth and pension scheme recovery. Operationally, Carclo has restructured its US operations, integrated its Aerospace and Light & Motion operations into a Speciality Division, and advanced its manufacturing capabilities across various regions, positioning itself for continued growth and resilience amidst global uncertainties. The company aims to focus on expanding in the Life Sciences sector and maintaining momentum in its Speciality Division.

Spark’s Take on GB:CAR Stock

According to Spark, TipRanks’ AI Analyst, GB:CAR is a Neutral.

Carclo plc’s overall stock score is mainly affected by significant financial challenges such as high leverage and declining revenues, which weigh heavily on its prospects. Technical analysis suggests some short-term stability, but the valuation remains poor due to negative earnings. The recent refinancing and appointment of a new CFO offer a positive outlook for potential improvement in financial stability.

To see Spark’s full report on GB:CAR stock, click here.

M&A TransactionsRegulatory Filings and Compliance
Carclo plc Announces Change in Voting Rights
Neutral
Apr 28, 2025

Carclo plc, a UK-based company, has announced a change in voting rights due to an acquisition by IG Markets Limited, a subsidiary of IG Group Holdings. The acquisition has resulted in IG Markets Limited holding 4.019344% of the voting rights in Carclo plc, up from a previous position of 3.033851%. This change in voting rights may impact Carclo’s shareholder dynamics and influence future company decisions.

Spark’s Take on GB:CAR Stock

According to Spark, TipRanks’ AI Analyst, GB:CAR is a Neutral.

Carclo plc’s overall stock score is mainly affected by significant financial challenges such as high leverage and declining revenues, which weigh heavily on its prospects. Technical analysis suggests some short-term stability, but the valuation remains poor due to negative earnings. The recent refinancing and appointment of a new CFO offer a positive outlook for potential improvement in financial stability.

To see Spark’s full report on GB:CAR stock, click here.

Private Placements and FinancingBusiness Operations and Strategy
Carclo plc Secures New Refinancing and Pension Scheme Agreement
Positive
Apr 24, 2025

Carclo plc has secured new refinancing arrangements with BZ Commercial Finance DAC, including a £27m Term Loan and a £9m Revolving Credit Facility, replacing its existing facility with an increased margin. Additionally, Carclo has agreed on a revised funding schedule for its pension scheme, reducing its actuarial deficit from £82.8m in 2021 to £64.5m in 2024. This financial restructuring is expected to strengthen Carclo’s operational capabilities and support its strategic growth, enhancing value for stakeholders.

Spark’s Take on GB:CAR Stock

According to Spark, TipRanks’ AI Analyst, GB:CAR is a Neutral.

Carclo plc’s overall stock score reflects significant financial challenges, including high leverage and declining revenues, which weigh heavily on its prospects. While technical indicators suggest some short-term stability, the company’s valuation remains poor due to negative earnings. The appointment of a new CFO offers potential for improvement, but substantial strategic changes are necessary for long-term success.

To see Spark’s full report on GB:CAR stock, click here.

Business Operations and StrategyRegulatory Filings and Compliance
Carclo plc Announces Change in Voting Rights
Neutral
Apr 3, 2025

Carclo plc, a UK-based company, has announced a change in its voting rights structure following an acquisition or disposal by First Equity Limited. The notification indicates that First Equity Limited’s voting rights in Carclo plc have decreased from 4.161037% to 3.650272%, with a total of 2,680,000 voting rights now held. This adjustment in voting rights may impact Carclo plc’s governance and decision-making processes, influencing its strategic direction and potentially affecting shareholder interests.

Other
Carclo plc Sees Increased Stake by First Equity Limited
Neutral
Feb 18, 2025

Carclo plc, a UK-based company, announced a change in the major shareholding of First Equity Limited, which now holds 4.161037% of the voting rights, up from a previous 3.221229%. This change in voting rights, reported on February 18, 2025, highlights an increased stake in Carclo plc, potentially impacting company decisions and signaling confidence in its future prospects.

Executive/Board Changes
Carclo plc Appoints Ian Tichias as New CFO
Positive
Feb 13, 2025

Carclo plc has announced the appointment of Ian Tichias as its new Chief Financial Officer, succeeding Eric Hutchinson, who will retire on 31 March 2025. Ian, with a strong track record in financial leadership and turnaround expertise from his tenure at Xaar PLC, is expected to contribute significantly to Carclo’s ongoing growth and stability in the manufacturing sector.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 01, 2025