Last checked at 4 Aug 2023 07:00
Carr's Group plc
("Carr's", the "Company", or the "Group")
Trading Update
Carr's (CARR.L), the Agriculture and Engineering Group, announces a trading update in respect of the financial year ending 2 September 2023.
As set out in the Company's interim results in May 2023, trading has been challenging for the Speciality Agriculture division. In the current financial year, demand is lower in the USA due to drought conditions and in the UK due to higher costs of all farm inputs. Expectations for August 2023, historically a strong trading month, have now been moderated by delayed recovery in our markets. From FY24 onwards management anticipates long-term recovery for this division as drought in the USA continues to recede and herds are rebuilt.
The Engineering division has high activity levels and is trading in line with the prior financial year, delivering a strong H2. The current orderbook provides confidence for the next 18 months.
Following the strategic disposal of the Agricultural Supplies division, completed in October 2022, the Group has incurred higher central costs in the course of concluding the transitional services agreement, now expected to complete before the end of calendar 2023, thereby freeing up key resources to focus on priorities in the remaining business.
The Board expects adjusted profit before tax for the current financial year to be in the region of £8 million, and remains confident in the Group's longer-term prospects.
The Group continues to maintain a net cash positive position following the receipt of proceeds related to the sale of the Agricultural Supplies division.
Interim dividend
A second interim dividend of 1.175 pence per share will be paid on 29 September 2023 to shareholders on the register at close of business on 25 August 2023. The ex-dividend date will be 24 August 2023.
Notice of trading update
The Company expects to issue a full year trading update in early October 2023.
The person responsible for arranging the release of this announcement on behalf of the Company is Paula Robertson, Assistant Company Secretary.
Enquiries:
Carr's Group plc | +44 (0) 1228 554 600 |
Peter Page, Chief Executive Officer | |
David White, Chief Financial Officer | |
FTI Consulting | +44 (0) 203 727 1340 |
Richard Mountain/Ariadna Peretz |
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 around the world. Carr's operates a business model that empowers operating subsidiaries enabling them to be competitive, agile, and effective in their individual markets whilst setting overall standards and goals.
The Speciality Agriculture division manufactures and supplies feed blocks, minerals and boluses containing trace elements and minerals for livestock.
The Engineering division manufactures vessels, precision components and remote handling systems, and provides specialist engineering services, for the nuclear, defence and oil & gas industries.