Carr’s pushes ahead in challenging market

AGRICULTURE, food and engineering company Carr’s Group said it remains confident of achieving its expectations for the full year despite mixed market conditions.

Issuing its second trading update for the year ending August 29 2015, relating to the 19 week period to July 11, the Cumbrian-based company said global sales of feedblocks are up year on year, with its US operations delivering a strong performance, making market share gains.

Carr’s said that feed volumes in the UK increased in the period despite a tough backdrop of market pressure.

The oil division has performed well with volumes up year on year, while it said retail sales have continued to perform ahead of both last year and the board’s expectations.

Expansion of its country store network continued, with the opening of Selkirk and a new store at Rothbury. This was enhanced by the strategic acquisition of Reid & Robertson in Scotland in June, which extends the reach in West Scotland with new locations at Balloch, Oban and Ayr.

This takes the total number of country stores to 30, with four satellite locations at auction marts and livestock centres.

The group’s food division, operating from three strategically-located sites around the UK, continues to perform well with volumes ahead of last year, Carr’s said, although the retail market in which the division operates “remains challenging”, with the multiples rationalising their sliced bread offering and consumer shopping habits continuing to change.

Carr’s said the UK nuclear market continues to show signs of recovery and increased activity, particularly from Sellafield with new contracts secured for its engineering division. However, it said the Japanese and Russian markets remain “subdued”.

Tim Davies, chief executive, said: “Despite Carr’s continuing to operate in mixed market conditions, we remain confident that the group will meet the board’s expectations for the full year. This confidence is due to the breadth of the group’s geographical footprint and its ongoing commitment to, and investment in, assets and innovation.”

The group expects to issue its preliminary results for the year ending August 29 on November 9.