Carclo (CAR) has become the latest victim of the Volkswagen scandal. In an otherwise encouraging trading update, the plastics and lighting engineer warned that the troubled German car giant's decision to redesign its flagship luxury car as all-electric could trigger LED lighting revenue delays. That alone sent the shares tumbling 14 per cent and prompted broker Peel Hunt to slash its 2016 adjusted EPS forecast to 9.4p.
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Aside from this potential hiccup, growth trends within Technical Plastics and lighting remain compelling. Capacity expansion in China has pushed profit higher at the former, while the latter unit reported strong lighting product sales and an exciting flagship vehicle programme with a new "major" customer.
