Carclo – “pleased to announce” contract cancellation conclusion, but still what about those banking covenants?
By Steve Moore | Tuesday 30 May 2023
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Components company Carclo (CAR) states that it “is pleased to announce a positive conclusion to commercial discussions with a leading global OEM related to the cancellation of a future supply contract referred to in the group's announcement on 7 December”. With the shares currently responding approaching 17% higher to 14p, how ‘pleasing’ is the contract cancellation agreement?
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