Carr's expects annual performance to exceed expectations

(Alliance News) - Carlisle, England-based agriculture & engineering company Carr's Group PLC on Monday said it expects its performance for the full financial year to be moderately ahead of expectations.

Speciality agriculture continues to perform strongly across the UK, US, and Europe. Livestock prices remain buoyant which, together with a continued recovery in its animal health business, has led to a significant improvement in performance compared with the prior year, the company said.

Carrs's agricultural supplies division is also trading slightly ahead of expectations, with strong machinery revenue and an improved retail performance more than offsetting the negative impact of raw material price increases seen earlier in the year.

Carr's also said "engineering performance has 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."

The company reported strong cash flows with net cash from operating activities higher compared with the prior year due to "robust working capital management."

Carr's said it will pay out a second interim dividend of 1.175 pence per share on October 1 to shareholders on the register at close of business on August 27.

The company expects to announce its results for the year ending August 28 on November 22.

"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," said Chief Executive Hugh Pelham.

Shares in Carr's were down 1.4% at 147.39p each in London on Monday afternoon.

By Amrit Sahota; newsroom@alliancenews.com

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