Carclo – ahead of this week’s AGM Trading Update, the shares now 66.50p offer strong upside as the precision component group’s recovery continues apace - 100p in due course?

22.09.2025

Although they have risen over 40% within the last four weeks, I believe that the shares of Carclo (LON:CAR) still offer excellent upside potential.

Later this week, on Friday 26^th September, this £49m-capitalised high-precision components group will be holding its AGM to approve its Reports & Accounts for the year to end-March.

On the same day, I expect the company to issue a bullish Trading Update covering its progress over the last six months.

Its shares, now 66.50p, could easily top the 100p level within the next year, if not sooner.

I was pleased to see that last Friday, the group’s Chief Financial Officer paid 66.83p for the shares – a useful indicator, methinks.

The Business

The Carclo Group is a global leader in high-precision components with comprehensive, end-to-end manufacturing capabilities.

With expertise spanning mould design, automation, production, assembly, and printing, Carclo supports critical growth sectors, particularly life sciences, aerospace, and optics, with tailored, precision solutions. 

At the end of last month, 29^th August, the group’s Management noted that the success of its strategic actions taken in recent years to turn the business around are bearing fruit, as seen in its improved operational and financial performance reported for FY25.

Management Comment

At that time CEO Frank Doorenbosch stated that:

"I'm pleased to report the meaningful progress the business has made in delivering strong results with improved performance.

We have prioritised health and safety, enhanced our financial position, and fortified our position for lasting and stable growth.

With a clear vision, a robust strategy, and our commitment to our customers and employees, we are confident in our ability to navigate the challenges ahead as a stronger, more resilient organisation.

The strength of our customer relationships and the confidence they have in our business is demonstrated in the recently announced contract renewal with one of our major customers.

We have a clear plan in place and remain focused on the delivery of our strategy and taking advantage of the significant opportunities we have that will drive profitable growth.

With a substantial market opportunity and the progress made, we remain well positioned to realise our exciting potential."

Going Forward

The Board expects the Group to continue the positive trajectory through FY26 with continued margin expansion and positive cash generation, notwithstanding an increasingly complex global backdrop.

Growth in the medium-term will focus on accelerating expansion in the Life Sciences sector, where demand for high-precision solutions continues to grow and continued momentum in the Speciality Division, particularly in the aerospace sector.

Strong cash flow performance, an improving net debt position and a new borrowing facility with BZ provide a solid financial platform for this growth.

The Equity

There are some 73.42m shares in issue.

Major holders include Schroder Investment Management (19.88%), Janus Henderson Investors (6.43%), IG Markets (4.57%), Threadneedle Asset Management (4.35%), HSBC Market Maker (3.72%), Financier de l’Echiquier (2.97%), Hargreaves Lansdown Asset Management (2.66%), HSBC Global Asset Management (1.55%), First Equity (1.42%) and Walker Crips Investment Management (1.24%).

Analyst’s View

Ahead of this week’s Trading Update, at Panmure Liberum its analyst Andy Smith has a Buy rating on the group’s shares, with a recently increased Target Price of 75p (63p).

He is looking for the current year to end-March 2026 to show sales revenues of £130.0m (£121.0m), with pre-tax profits of £6.5m (£4.9m) lifting earnings up to 6.6p (4.3p) per share.

For the coming year, he sees sales of £137.0m, with £9.1m profits and 9.2p of earnings.

Leaping forward to the end-March 2028

, Smith has pencilled in £143.0m of sales, £11.9m for profits and earnings of 12.1p per share.

My View

This group’s recovery is well underway now and offers its shareholders some exciting upside with its shares now at 66.50p.

Based upon the broker’s analysis for the coming two years, and pending this week’s Update, they are a bargain, with the prospect of breaking 100p in due course.

(Profile 18.09.24 @ 38p set a Target Price of 50p*)

(Profile 28.04.25 @ 28.5p set a Target Price of 38p*)

(Profile 29.08.25 @ 47.40p set a Target Price of 60p*)

Asterisks * denote that Target Prices have been achieved since Profile publication.