Carrs Group Regulatory News (CARR)

6 Jan 2009 07:00



Tuesday 6 January 2009

CARR'S MILLING INDUSTRIES PLC 

Interim Management Statement/Annual General Meeting Statement

Carr's (CRM.L), the fully-listed agriculture, food and engineering group, is publishing this first Interim Management Statement of the 52 weeks to 29 August 2009, as required by the UK Listing Authority's Disclosure and Transparency Rules. The Statement relates to trading and events in the 18 weeks since the 30 August 2008 year end. 

The Statement is being issued to coincide with Carr's Annual General Meeting, which is being held in Carlisle at 11.30 this morning. 

Overview

The Preliminary Announcement of 10 November 2008 concluded "Overall, the Group remains well-placed for the current year, albeit without the benefit of exceptional trading conditions in its largest Division, Agriculture". That remains the case. Profit in the first quarter of the 52 weeks to 29 August 2009 was ahead of budget and last year's actual and Carr's remains on target for the full year, despite trading conditions becoming more difficult. 

Agriculture

In compound and blended feed, Carr's has maintained its market share. However, volumes are down, reflecting a reduction in bought-in feed following the higher yields of last year's cereal harvest.  With feed raw materials bought forward at higher than spot prices, margins have started to be squeezed. 

Market share gains were made in the feed block businesses and revenues were ahead in each of the UK, Germany and the USA.

Since November, fertiliser sales have been much reduced in expectation by farmers of selling price reductions which may turn out to be overestimated.

First quarter revenue from retail and machinery sales is ahead of both budget and last year. 

Further growth was achieved in the fuel oil business, with increases in both volume and revenue.

Food

As predicted, this year has started much better than last for flour, following the price rises put through in September and November 2007. The first quarter profit is ahead of last year and in line with budget. The market remains competitive and market share is being maintained. Forward wheat contracts are in place to safeguard margins.

Engineering 

The Engineering businesses were busy and profit in the first quarter was ahead of last year. The order book remains strong and the enquiry level is encouraging.

Indebtedness

Net debt increases in the winter months due to seasonal activity and at 29 November 2008 was £30.5m, which compares with £24.6m at 1 December 2007 and £17.4m at 30 August 2008. The increased figure reflects increased working capital, particularly inventory, as massive raw material price rises were experienced from December 2007 onwards. 

In September 2008, £2.5m (net) was raised in a placing of 410,000 new Ordinary Shares (4.9% of the issued share capital) at 660p per share. The placing had the further benefit of introducing two new institutional shareholders.

Dividend 

The increased final dividend per share of 17.0p (2007: 13.5p), if approved by shareholders at the Annual General Meeting, will be paid on 16 January 2009. 

Enquiries:

This Interim Management Statement has been drawn up and presented for the purposes of complying with English law. Any liability arising out of or in connection with this Interim Management Statement will also be determined in accordance with English law.

This Interim Management Statement may contain 'forward-looking statements'. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Many of these risks and uncertainties relate to factors beyond the Group's control or which cannot be estimated precisely, such as future market conditions and the behaviour of the market participants. Actual outcomes and results may therefore differ materially from any outcomes or results expressed or implied by any such forward-looking statements.