The share price of Carclo (CAR) tanked after the technical plastics manufacturer confirmed that a likely reduction in its available distributable reserves means that it will probably be unable to pay out its final dividend in October.
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Though Carclo's trading performance is in line with expectations, the post-Brexit fall-away in bond yields means that shareholders now stand to miss out on the final dividend announced in June. Bond yields are used to calculate the group's accounting pension liability, and lower yields mean higher liabilities and thus a bigger deficit, eating into reserves.