Profits increase at agricultural firm despite unseasonal weather
Profits at agriculture firm Carr’s rose by nine per cent to £18m over the last 12 months.
The Carlisle firm saw its operating profit increase by 8.4% to £18.9m while revenues remained flat at just over £400m.
The company released its final results this morning and said it enjoyed a strong performance overall with robust results in agriculture and a strong performance in engineering.
In agriculture the impact of unseasonable weather in the UK and USA was mitigated by cost control, manufacturing efficiencies and effective raw material procurement.
Volumes of USA feed blocks were lower as a result of consistently wet weather, but emergence from drought across large areas in the USA is expected to be beneficial in the medium term.
Meanwhile, plans to establish newly acquired Animax as a centre of excellence for innovation and product development are well underway.
A new divisional structure in engineering has been established to enable closer collaboration and improved business development.
The acquisition of NW Total in June will enhance the firm’s rngineering division and provide opportunities in nuclear defence market.
Chris Holmes, departing chairman of Carr’s Group, said: “We are pleased to have delivered a strong financial performance in the year, moderately ahead of the Board’s expectations, despite unseasonable weather significantly impacting trading across our agriculture division.
“We also made good strategic progress during the year, including acquisitions across both divisions where integration is progressing well.
“In agriculture, we are excited by plans to develop Animax, acquired in September 2018, into a centre of excellence for innovation and product development for the wider agriculture division.
“Our engineering division delivered a strong performance, building on momentum in the prior year.
“We believe the newly established structure of our engineering division will position us better for sustainable growth, enabling closer collaboration between businesses and better business development.”
“I am confident, as I step down from the role of chairman at the AGM in January, that I leave the company in an excellent position to build upon on its strong market positions and capabilities, expand its international footprint and deliver sustained growth.”
