Carr’s profits surge 31%
CARR’S Milling Industries, the Carlisle-based agriculture, food and engineering group, posted strong first half results and expects its good performance to continue.
The sale of its fertilisers business last summer for mopre than £20m has strengthened its balance sheet, meaning that the company is debt free.
In the 23 weeks to March 3, profits were 31% higher at £7.4m, while revenues rose 12% to £196m.
Chief executive Chris Holmes said the strong performance was likely to continue in the full year, and result in profits ahead of expectations.
“The trading environment, particularly in agriculture, is mixed due to the milder weather conditions experienced and this trend has continued into the second half. However, demand for our products, particularly animal feed blocks, remains strong.
“Following the profit growth achieved in the first half the board believes the results for the year will be ahead of the expectations that the company had at the beginning of the year, and is well positioned for sustained profitable growth.”
Carr’s lifted its interim dividend to 7.25p (2011: 6.5p) and reported net cash of £1.6m, compared with net debt: £28.2m this time last year.
Defying weak demand in the UK feed market caused by the mild winter, agriculture revenue rose 12% to £147.2m and profit before taxation 19% to £5.2m.
Food revenue rose 8% to £41.4m but profit before taxation down 39% to £400,000, reflecting the continuing pressure on margins caused by volatile wheat prices and over-capacity in the flour industry.
Engineering revenue surged 33% to £7.4m with profit before taxation up 175% to £1.6m, reflecting strong demand, the completion of significant contracts and an expanding order pipeline.
