19 July 2021
"A strong Group performance with improved full-year expectations"
Carr's (CARR.L), the Agriculture and Engineering Group, announces a trading update for the 20-week period ended 17 July 2021.
The Group's trading performance for the full financial year is anticipated to be moderately ahead of the Board's expectations.
Speciality Agriculture continues to perform strongly across the UK, USA, and Europe. Livestock prices remain buoyant which, together with a continued recovery in our animal health business, has led to a significant improvement in performance compared with the prior year.
Our Agricultural Supplies division is slightly ahead of expectations, with strong machinery revenues and an improved retail performance more than offsetting the negative impact of raw material price increases seen earlier in the year. Resilient farmgate prices continue to drive farmer confidence in the UK.
Engineering performance significantly improved over the 20-week period, driven by contract wins, reduced overhead costs and a recovery in oil & gas prices. Order books, particularly across the nuclear and defence sectors, are encouraging, having grown significantly during the financial year.
Cash flow remains strong, with net cash from operating activities materially higher compared with the equivalent period in the prior year owing to robust working capital management.
A second interim dividend of 1.175 pence per share will be paid on 1 October 2021 to shareholders on the register at close of business on 27 August 2021. The ex-dividend date will be 26 August 2021.
The Group's performance remains encouraging owing to the strength of its businesses, range of products and services, and market positions globally. Activity levels across the Group remain high and ongoing standardisation programmes are expected to enhance future performance.
The Company expects to announce its results for the year ending 28 August 2021 on 22 November 2021.
Hugh Pelham, Chief Executive Officer, commented: "Trading conditions have remained positive in Agriculture and have improved in Engineering. Our business improvement initiatives remain on track. Carr's is well positioned to continue driving further growth."
Carr's Group plc Powerscourt
Hugh Pelham (Chief Executive Officer) Nick Dibden / Lisa Kavanagh / Sam Austrums
Neil Austin (Chief Financial Officer) Tel: +44 (0) 20 7250 1446
Tel: +44 (0) 1228 554 600
About Carr's Group plc:
Carr's is an international leader in manufacturing value added products and solutions, with market leading brands and robust market positions in Agriculture and Engineering, supplying customers in over 50 countries around the world. Carr's operates a decentralised business model that empowers operating subsidiaries enabling them to be competitive, agile, and effective in their individual markets whilst setting overall standards and goals.
Its Speciality Agriculture division manufactures and supplies feed blocks, minerals and boluses containing trace metals and minerals for livestock.
Its Agricultural Supplies division manufactures compound animal feed, distributes farm machinery and runs a UK network of rural stores, providing a one-stop shop for the farming community.
Its Engineering division designs and manufactures pressure vessels, manufactures precision components from specialist steel alloys, manufactures robotic manipulators, and provides engineering design, assembly, and installation services for the nuclear, defence and oil & gas industries.