Tough conditions put Carr’s through the mill
CARR’S GROUP has delivered a “robust” performance after battling against the effects of depressed farmgate prices, low oil prices and Storm Desmond.
A good operating performance from its agriculture division helped increase pre-tax profits by 2.8% to £14.1m, despite group revenues falling 4.9% to £314.9m in the year to September 3.
The Cumbrian group has refocused during the year, selling off its food division to Whitworths for £36m, which resulted in £16m being returned to shareholders last month as a special dividend. After other adjustments, the group retained £8.9m from the sale which it will look to use to invest in growth opportunities.
The sale means the group now has two divisions – agriculture and engineering – although they are faring differently.
Chief executive Tim Davies hailed the agriculture division’s “record year”, which he said was driven by its operational and geographic diversity. However customer delays in the awarding of some nuclear contracts and the continued depressed oil and gas market were blamed for a tough year, although the group remains positive about its medium-term prospects.
Carr’s spent €7.85m on German engineering company STABER, a long term supplier to its German remote handling business, which it believes will enhance the intellectual property and growth potential of that part of its German operations.
“In what has been a challenging year in the sectors in which we operate, I am pleased to report that the Group has delivered a solid result,” said chairman Chris Holmes.
“The current financial year has started in line with our expectations and we will continue to review suitable acquisition opportunities whilst investing in our existing businesses both in the UK and overseas.”
