It is clearly disappointing that CDS is not to progress to commercialisation and that £4.9m of investment will be written off. However, management has taken the difficult decision to exit CDS in order to avoid prolonged further cost for an uncertain benefit. This does not markedly change the investment case in our view; we await results on 7th June but expect the core divisions to be performing strongly and remain at Buy.
16 May 2016
Exit from CDS; Focus on core divisions
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Exit from CDS; Focus on core divisions
Carclo plc (CAR:LON) | 13.0 0.1 4.0% | Mkt Cap: 9.54m
- Published:
16 May 2016 -
Author:
Jon Lienard -
Pages:
3
It is clearly disappointing that CDS is not to progress to commercialisation and that £4.9m of investment will be written off. However, management has taken the difficult decision to exit CDS in order to avoid prolonged further cost for an uncertain benefit. This does not markedly change the investment case in our view; we await results on 7th June but expect the core divisions to be performing strongly and remain at Buy.