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Carclo plc
(LSE:CAR)
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Rating:58Neutral
Price Target:
39.00 p
▲(7.14% Upside)
Action:Reiterated
Date:08/24/26
The score is held back primarily by balance-sheet risk (negative equity and sizable debt) and uneven cash-flow durability despite improved profitability. Offsetting this are constructive earnings-call signals around the turnaround and defined long-term targets, plus a reasonable P/E valuation and neutral-to-mildly positive near-term technical momentum.
Positive Factors
Specialty division growth
The Specialty division’s 14% four-year revenue CAGR shows durable traction in aerospace markets, including civil and defense applications. Sustained growth with margins held suggests stronger positioning and a more attractive mix that can support group performance over the next several quarters.
Negative Factors
Negative equity and elevated debt
Negative equity leaves Carclo with a thin financial buffer and increases sensitivity to earnings volatility, pension obligations and refinancing needs. Debt of roughly £30m remains significant relative to the balance sheet, limiting flexibility if the turnaround underperforms or cash generation weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialty division growth
The Specialty division’s 14% four-year revenue CAGR shows durable traction in aerospace markets, including civil and defense applications. Sustained growth with margins held suggests stronger positioning and a more attractive mix that can support group performance over the next several quarters.
Read all positive factors
Carclo plc (CAR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£27.90M
Dividend Yield0.02%
Average Volume (3M)267.96K
Price to Earnings (P/E)10.4
Beta (1Y)0.81
Revenue Growth-5.78%
EPS Growth208.40%
CountryUK
Employees907
SectorConsumer Cyclical
Sector Strength84
IndustryManufacturing - Miscellaneous
Share Statistics
EPS (TTM)0.03
Shares Outstanding73,419,190
10 Day Avg. Volume67,466
30 Day Avg. Volume267,959
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)-3.75
Price to Sales (P/S)0.28
P/FCF Ratio19.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.06
Revenue Forecast (FY)£121.00M
Carclo plc Business Overview & Revenue Model
Company Description
Carclo plc, along with its subsidiaries, operates as a global manufacturing entity primarily focused on producing and distributing high-precision, injection-molded plastic components. The company's business activities are structured into two key d...
How the Company Makes Money
Carclo makes money primarily by supplying engineered products and manufacturing services to other businesses (B2B), rather than selling directly to consumers. Its revenue is generated mainly through: (1) contract manufacturing income—customers pay...
Carclo plc Earnings Call Summary
Earnings Call Date:Jul 01, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 26, 2026
Earnings Call Sentiment Positive
The call emphasized a successful multi-year turnaround: stronger margins, improved returns, better safety and sustainability metrics, robust Specialty growth and a completed refinancing that provides stability. Management set clear Precision 2030 targets and is already ahead on return metrics. Near-term headwinds include deliberate revenue reduction from portfolio exits, ongoing pension deficit contributions, net debt still above target (1.3x EBITDA), no dividend and mixed demand in parts of Life Sciences driven by a weak respiratory virus season. On balance, operational and financial improvements are substantial and management has a concrete plan to address remaining issues.Positive Updates
Improved Profitability and Margins
Operating profit margin increased to 11% (management target >=10%), reflecting sustained margin improvement through self-help activities, improved materials management and better asset utilization.
Negative Updates
Reported Revenue Decline
Reported revenue fell year-on-year. Decline was largely deliberate due to portfolio exits and stopping lower-margin short-run business; FX translation reduced revenue by around GBP 2.6m and H1 FY25 included GBP 2.2m of exited products.
Read all updates
Q4-2026 Updates
Positive
Negative
Improved Profitability and Margins
Operating profit margin increased to 11% (management target >=10%), reflecting sustained margin improvement through self-help activities, improved materials management and better asset utilization.
Read all positive updates
Company Guidance
Management guidance under Precision 2030 targets organic revenue compounding above 8%, net debt below 0.5x EBITDA by end‑FY'31, return on sales at/above 10% and return on capital at/above 25%; trading is expected to be H2‑weighted with positive organic revenue for the year and bolt‑on acquisitions treated as upside to the base plan. The board cites FY'22–FY'26 progress as validation: operating margin/return on sales up to 11% (from <5%), ROCE >29% (from 9.5%), net debt/EBITDA down to 1.3x (from 2.5x), cash from operations up to £12m (from <£7m), Specialty revenue CAGR 14% and strategic manufacturing CAGR 4%, while safety incidents fell ~75% (2.7→0.7 per 100,000 hours) and carbon intensity per £1m revenue more than halved. They reiterated the refinancing completed, the agreed pension recovery plan of £3.5m p.a. for the next four years (plus a one‑off £5.1m contribution made), pension cash costs now ~19% of underlying EBITDA (vs ~30% previously), and an expectation that structural tax and financing drags will unwind as profitability and financing costs improve.Carclo plc Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
28
Negative
Cash Flow
46
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 114.21M | 121.22M | 132.67M | 143.44M | 128.58M |
| Gross Profit | 30.91M | 73.54M | 72.10M | 25.86M | 27.87M |
| EBITDA | 18.60M | 14.69M | 10.15M | 8.81M | 15.28M |
| Net Income | 2.69M | 872.00K | -3.30M | -3.96M | 5.80M |
Balance Sheet | |||||
| Total Assets | 92.36M | 97.03M | 100.94M | 122.67M | 128.20M |
| Cash, Cash Equivalents and Short-Term Investments | 5.77M | 10.74M | 5.97M | 10.35M | 12.35M |
| Total Debt | 29.68M | 29.95M | 39.91M | 44.71M | 44.75M |
| Total Liabilities | 101.03M | 108.88M | 97.28M | 111.07M | 103.78M |
| Stockholders Equity | -8.64M | -11.81M | 3.69M | 11.63M | 24.44M |
Cash Flow | |||||
| Free Cash Flow | 1.67M | 10.38M | 7.43M | 1.57M | -1.89M |
| Operating Cash Flow | 4.19M | 11.48M | 10.37M | 3.99M | 3.05M |
| Investing Cash Flow | -2.82M | -447.00K | -2.40M | -1.03M | -4.23M |
| Financing Cash Flow | -5.58M | -7.00M | -12.14M | -4.67M | -2.49M |
Carclo plc Technical Analysis
Positive
36.40
Price Trends
35.32
Positive
36.58
Positive
44.71
Negative
Market Momentum
0.13
Positive
51.82
Neutral
65.63
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 36.4 is below the 20-day moving average (MA) of 37.50, above the 50-day MA of 35.32, and below the 200-day MA of 44.71, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 51.82 is Neutral, neither overbought nor oversold. The STOCH value of 65.63 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £6.93M | 8.43 | 12.05% | ― | 10.74% | -39.92% | |
68 Neutral | £25.76M | 4.06 | 28.74% | ― | -7.10% | -6.32% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | £27.90M | 10.35 | -29.78% | 0.02% | -5.78% | 208.40% | |
50 Neutral | £7.10M | 43.33 | 1.81% | 2.64% | -9.41% | ― | |
46 Neutral | £5.92M | -2.81 | -387.32% | ― | -4.82% | 55.49% |
* Consumer Cyclical Sector Average
GB:CAR
Carclo plc
37.00
-26.00
-41.27%
GB:AUTG
Autins Group plc
13.00
2.50
23.81%
GB:TRT
Transense Technologies PLC
45.50
-75.50
-62.40%
GB:CTA
CT Automotive Group Plc
36.50
-0.50
-1.35%
GB:STG
Strip Tinning Holdings plc
26.50
3.50
15.22%
Carclo plc Corporate Events
Business Operations and StrategyShareholder Meetings
Carclo shifts 2026 AGM to hybrid format with audio stream and proxy focus
Neutral
Aug 14, 2026
Carclo plc has confirmed arrangements for its 2026 Annual General Meeting, which will take place in person on 9 September at Carberry Tower Mansion House in Musselburgh. The company has published the AGM notice and related materials on its website...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Carclo Aligns Senior Executive Incentives With Long-Term Shareholder Returns
Positive
Aug 12, 2026
Carclo plc has granted conditional share awards to several senior executives under its 2017 Long Term Incentive Plan, reinforcing its use of equity-based compensation to align management with shareholder interests. The awards cover ordinary shares...
Business Operations and StrategyFinancial Disclosures
Carclo lifts margins and unveils Precision 2030 growth plan
Positive
Jul 1, 2026
Carclo reported full-year 2026 results showing lower revenue of £114.2m but sharply improved profitability as it exited low-margin work and focused on higher-value engineered solutions. Underlying operating profit rose 28.1% to £12.6m, r...
Business Operations and StrategyFinancial Disclosures
Carclo schedules 1 July release and shareholder briefing on full-year results
Neutral
Jun 25, 2026
Carclo plc will publish its audited full-year results for the 12 months to 31 March 2026 at 7:00 a.m. on 1 July 2026. The precision engineering group, which serves life sciences, aerospace, and optics customers, continues to emphasise its global, ...
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.