Carclo (LON:CAR) (CAR, 152.5p, £93.81m), the global supplier of technical plastic components, reports the group is trading in line with FY market consensus. The Technical Plastics division continues to perform well whilst the in Precision Products division which suffered from subdued demand in the aerospace businesses remains stabilised. In printed electronics, InkJetFlex sales are now growing. The Fine Line Technology touch sensor project with Atmel continues to build momentum. The market forecasts 2010 PBT of £7.0m EPS of 8.7p and DPS of 2.1p, which rates the stock on 17.5x with yield of 1.4%. We continue to believe the group is fully valued based on the 2011 PER of 14.5x. We reiterate our HOLD recommendation.
Park Group (LON:PKG) (PKG, 23.0p, £37.96m), has received £1.89m from HMRC in settlement of a 'Fleming' claim in respect of an over declaration of output tax arising from the VAT accounting treatment of commissions paid to agents. The claim covered the period 1978 to 1996. Furthermore, the group expect to receive an additional c. £2.5m in respect of statutory interest due in respect of this claim. With professional costs of c.£0.35m, we expect exceptional items of c.£4.0m, which will boost the cash flow. The stock trades on a 2011 rating of 9.2x with a generous and sustainable yield of 10.8%. We remind investors this stock is a yield play. We reiterate our BUY recommendation.
Pinnacle Telecom Group (LON:PINN) (PINN, 0.33p, £5.74m) has secured two contracts to supply temporary voice and data networks to cover: 1) the four-day visit to the UK of Pope Benedict XVI and 2) the Big Chill Festival. The value of the contracts have not been disclosed, which suggests the contracts are small. However, the contacts highlight the strong service offering. We believe further contracts wins and acquisitions will provide upside and therefore reiterate our SPECULATIVE BUY recommendation.
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