Profits tumble at Carr’s

FALLING milk and commodity prices have resulted in profits almost halving at food and engineering group, Carr’s Milling Industries.

The Carlisle-based group said it had been a particularly tough year for its fertiliser business which was the “star performer” in 2008, however swung into loss over the last 12 months.

In the 52 weeks to August 29, pre-tax profit at Carr’s was down 45% from £12.9m to £7m. Revenue was down 6% to £350m.

Operating profits in its agriculture division fell 48% from £11.7m to £6m, with revenue down 8%. Sales of fertiliser was down 30%.

The group’s food business increased operating profit by 19% to £2.3m, however revenue fell 8%. Carr’s said the business will continue to suffer from market turbulence in the face of overcapacity and the impact of the recession on consumers of bread and biscuits.

Engineering increased its operating profit by 31% to £1.4m on revenue up 48% to £15.9m. Carr’s said the division has benefited from the acquisition of Walischmiller in March which the group’s paid for with £4.3m of cash.

Chairman Richard Inglewood said it has been “a satisfactory year, in the circumstances”.

He said: “In the 52 weeks the massive increase in commodity prices and the 40% uplift in the farm-gate milk price, which had helped make the prior year a tremendously successful one for Carr’s, were absent.”

He added that the board expects the current year to be flat in the “extremely” difficult markets, however its long term prospects remain good.

Lord Inglewood said:  “Further out Carr’s is well placed, having regard in particular to the long-term demand for agricultural products, the diversity of the group’s activities and the group’s well-invested facilities.”

Dividend per share was unchanged at 23p.