Carclo – Up over 128% in six months, shares still looking cheap at 65.10p, new SQC TP now set at 80p

Mark Watson-Mitchell – 07.11.2025

We have seen this group’s shares up over 128% since the SQC April feature – and there is more to come yet!

In the next week or so,

I am expecting that Carclo (LON:CAR), which is a trusted global partner delivering high-performance components for life sciences, aerospace, and advanced industries, will be announcing the date of its Interim Results to end-September.

The £48m-capitalised group’s AGM Trading Update, issued in late September, stated that its trading performance in the year to that date had been in line with management's expectations, with strong margin performance and positive underlying growth, excluding the effect of exchange rate movements, in both its CTP Manufacturing Solutions and its Speciality business.

It also declared that the Board's expectations for the full year performance had remained unchanged with Design & Engineering revenues expected to partially recover in the second half and with the strong margin performance anticipated to be maintained through the year.

The Business

Carclo is a provider of high-precision components, offering comprehensive services from mold design, automation, and production to assembly and printing, serving the life sciences, aerospace, optics, and tech sectors.

Its two main segments are CTP and Speciality.

The CTP segment supplies value-adding engineered solutions from mold design, automation, and production to assembly and printing for the life science, optical and precision component industries.

This business operates internationally in a market underpinned by rapid technological development.

The Speciality segment supplies systems to the manufacturing and aerospace industries.

With a widespread Design & Engineering network and a robust manufacturing platform spanning continents, it brings its precision-driven solutions to clients across the globe.

The Equity

There are some 73.42m shares in issue.

Larger holders include Schroder Investment Management (19.88%), Janus Henderson Investors (6.43%), IG Markets (4.57%), Threadneedle Asset Management (4.35%), Financiere de l’Echiquier (2.97%), KW Investment Management (2.41%), Hargreaves Lansdown Asset Management (2.37%), HSBC Bank Market Maker (1.47%), First Equity (1.42%), and HSBC Global Asset Management (1.23%).

Broker’s View

Analyst Andy Smith, at Panmure Liberum, rates the group’s shares as a Buy, having recently upgraded his Target Price from 63p to 75p.

For the current year to end-March 2026, he is looking for group sales to have increased to £130.0m (£121.0m), but with a notable improvement in pre-tax profits to £6.5m (£4.9m), lifting earnings from 4.3p to 6.6p per share.

For the end-March 2027 year, he sees £137.0m revenues, with a very healthy £9.1m profit helping to take earnings up to 9.2p per share.

The 2028 year looks even better, with his estimates of £143.0m in turnover, some £11.9m in profits and an impressive 12.1p per share in earnings.

My View

The group should be announcing the expected date for its Interims, to be issued probably early next month.

Considering that the average market price-to-earnings ratio for the UK equity market is currently around 18.9 times – then taking Carclo on 9.8 times shows its current year attractions, while 7.1 for next year and a mere 5.4 times for two years out are even more appealing.

These shares at 65.10p are cheap, based upon Andy Smith’s estimates, I now set a new Target Price at 80p.

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

(Profile 28.04.25 @ 28.50p set a Target Price of 38p*)

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

(Profile 07.11.25 @ 65.10p set a Target Price of 80p)

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