Engineering and farm feed firm hit by weather and Brexit uncertainty

Carr's Group

Engineering and farm feed firm Carr’s says it has been affected by a mixture of poor weather and the uncertainty surrounding Brexit.

The Carlisle based group issued a trading update relating to the 19 week period ended 13 July 2019.

The firm said the unseasonably mild and dry weather persisted through to the end of April, which reduced demand for feed and fuel.

However, the impact has been partially offset by high levels of farm activity due to good growing conditions, together with ongoing cost management activities, good procurement, and strong positions on raw materials.

The Engineering business has continued to develop in the period, particularly in UK manufacturing where order books have strengthened.

In July the firm announced the acquisition of NW Total Engineered Solutions Ltd.

As previously stated, significant uncertainty remains associated with Brexit and the UK’s future relationship with the EU, and Carr’s continue to closely monitor the position.

In engineering, order books continue to strengthen across the business, which provides increased confidence in the medium term.

The progress made by the Remote Handling business in the USA represents a significant development for the group and brings further opportunities to the division.

The board continues to expect trading for the current full year to be in line with its expectations.

Tim Davies, chief executive, said: “We are pleased to report that the Group continues to trade in line with the board’s expectations for the full year, despite being impacted in the short-term by challenging weather conditions.

“We’ve made notable progress with the integration of Animax, as we expand international sales and invest in new product development. Brexit uncertainty remains a concern and we continue to closely monitor developments.

“Our Engineering business continues to perform well, with a strong order book and further international growth. Earlier this month we announced the acquisition of NW Total, which enhances the range of specialist products and technical services we offer, particularly in nuclear markets.

“As we continue to invest in our businesses, both organically and through strategic acquisitions, and expand our international footprint, we remain confident the Group is well positioned for sustained growth.”

The Company expects to issue its preliminary results for the year ending 31 August 2019 on Monday 11 November 2019.

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