Carr’s profits hit by engineering and US farming slump
Plummeting profits in engineering and a weak first-half performance in the USA farming sector have dented the results of Carlisle-based Carr’s Group.
Total underlying profit before taxation was down 20.2% to £11.4m (2016: £14.3m) for the year to September 2, as it attempted to mitigate a “challenging year” with key acquisitions.
Despite its difficulties the listed agriculture and engineering company reported a near-10% increase in revenue to £346.2m (2016: £314.9m).
However, engineering profit fell more than 74% to £0.7m (2016: 2.6m) as a result of a major contract delay and certain short term, low margin contracts in UK manufacturing.
Chairman Chris Holmes said: “While 2017 was a challenging year, impacted by external market conditions, we made significant investment and progress towards achieving our strategic objectives.
“During the year we invested in the acquisition of two engineering businesses, STABER GmbH in Germany and NuVision Engineering, Inc. in the USA.
“In our agriculture division, we invested in our new low moisture feed block plant in Tennessee, USA and, since the financial year end, in the acquisition of Pearson Farm Supplies Limited.
“Trading in the new financial year has started well and remains in line with the board’s expectations. We believe that the investments we have made in acquisitions and research across both our divisions have laid a solid foundation for sustained growth and remain confident in the outlook for the group.”
