Share price soars after manufacturer reaches agreement with funders
Listed Wakefield-based manufacturer Carclo Group has seen its share price spike by nearly 30% today.
Carclo’s share price jumped from 8.96p when trading opened today to 11p, effectively returning it to pre-lockdown levels.
The company’s share price had reached a low of 3.75p on 17 March 2020, down from 10.50p on 21 Feburary.
The latest sharp increase follows news this morning that the business has been able to agree revised funding arrangements with HSBC and the Pension Scheme.
These provide the company, which is a global supplier of technical plastics products, with access to ongoing bank facilities as well as visibility over repayment schedules through to July 2023.
A spokesman for Carclo said: “As previously announced, securing a suitable long-term funding position for the Group has been a key focus of the Board.
“With a more stable base now established, the Board can turn its focus to delivering its growth strategy aimed at capturing the significant long-term opportunities it sees for the Group.”
Carclo has announced the appointment of Nick Sanders as a non-executive director and chairman-elect of the Board with immediate effect.
Sanders is an engineer by training and has over 20 years’ of board experience in UK and international businesses.
His early career was spent in a variety of technical and operational roles at Rolls-Royce and Lucas Aerospace and since 2002 he has been leading turnaround situations in aerospace and manufacturing businesses.
In this capacity he served as executive chairman of Gardner Aerospace for nine years until 2019.
He is currently a non-executive director of Doncasters and non-executive chairman of Sertec Group, Cashewglen Limited and a Family Investment Fund.
Joe Oatley, chairman, said: “I am delighted to welcome Nick to the Board of Carclo.
“He brings a wealth of experience and has a strong track record of success in creating value for all stakeholders in industrial manufacturing businesses.
“It is our intention that Nick will take over from me as chairman after this year’s Annual General Meeting and I look forward to working with him in delivering the next phase of our strategy.”
