Trading Update and Confirmation of Dividend
15 July 2020
Carr's (CARR.L), the Agriculture and Engineering Group, announces a trading update for the 19-week period ended 11 July 2020.
Overall, trading remains in-line with the Board's expectations for the current financial year.
The Group continues to trade through the COVID-19 pandemic with no material financial impact seen to date. The health, safety and wellbeing of colleagues and customers remains of paramount importance and appropriate controls, following government and sector specific guidance, are being strictly adhered to.
The Agriculture division is currently trading ahead of the Board's expectations. In the UK, farmers are maintaining normal livestock operations and a marginally higher demand for feeds, supplements and fuels has enhanced revenues. In the USA, lower cattle prices attributable to COVID-19 have adversely impacted sales of supplements.
The Engineering division has been affected by some temporary interruption to nuclear and defence projects following the introduction of revised working practices at customer sites attributable to COVID-19. The division has also been impacted by the oil price decline which has led to a reduction in oil and gas investment.
The Board continues to monitor the Group closely to ensure revenues are protected and discretionary costs are closely controlled. The performance of the Group overall has proven resilient with cash levels ahead of the Board's expectations.
The Board considers it appropriate for the deferred interim dividend in respect of the 26 weeks ended 29 February 2020 to be paid in conjunction with what would ordinarily be the second interim dividend in October 2020. Therefore, a single interim dividend of 2.25 pence per share (2019: 2.25 pence per share1) will be paid on 2 October 2020 to shareholders on the register at close of business on 28 August 2020. The ex-dividend date will be 27 August 2020.
The Group remains well placed owing to its strong and diverse businesses, robust financial position and the ongoing demand across the majority of its markets for the provision of essential products and services.
The Company expects to announce its results for the year ending 29 August 2020 on 23 November 2020.
1 In aggregate comprising a first interim dividend of 1.125 pence per share paid on 31 May 2019 and a second interim dividend of 1.125 pence per share paid on 4 October 2019.
Carr's Group plc
Tel: +44 (0) 1228 554 600
Tel: +44 (0) 20 7250 1446
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.
Its Agriculture division manufactures and supplies feed blocks and supplementation products for livestock, 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 bespoke equipment and provides technical engineering services into the nuclear, petrochemical, oil and gas, pharmaceutical, process and renewable energy industries, including robotic and remote handling equipment.