Trading well but bond yields affecting dividend
The two divisions driving growth – Technical Plastics and LED Technologies – are both performing well and in line with management expectations, so we leave our earnings estimates unchanged. However, low corporate bond rates have resulted in a significant increase in the pension deficit, meaning that management may not be able to use the profit growth to fund Carclo’s progressive dividend policy. As the dividend suspension does not reflect any issues with profits growth, we reiterate our earnings estimates, which look for 15% adjusted PBT growth in FY17.Carclo is a global manufacturer of fine tolerance parts for the medical, industrial, aerospace and premium automotive lighting markets. Co. has four business segments: Technical Plastics, which supplies fine tolerance, injection molded plastic components used in medical, optical and electronics products; LED Technologies, which develops solutions in LED lighting and engages in the development of high power LED lighting for the premium automotive industry; Aerospace, which supplies systems to the manufacturing and aerospace industries; and CIT Technology, which manages its portfolio of IP over the digital printing of conductive metals onto plastic substrates.
Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.