Bumper dividend at agriculture firm
SHAREHOLDERS at a Carlisle food and engineering company will today land a bumper dividend payment despite tough trading conditions.
At today’s annual general meeting of Carr’s Milling Industries, chief executive Chris Holmes will propose a 25% hike in the group’s final dividend from 13.5p to 17p per share.
In an update to the market, Carr’s also said that trading in the 18 weeks to August 30 is ahead of budget and the group remains on target despite trading conditions becoming more difficult.
In its agriculture division, Carr’s has maintained its market share in compound and blended feed. However it added that volumes are down, reflecting a reduction in bought-in feed following the higher yields of last year’s cereal harvest. With feed raw materials bought forward at higher than spot prices, margins have started to be squeezed.
Market share gains were made in the feed block businesses and revenues were ahead in the UK, Germany and the USA.
In its food business Carr’s said that, as predicted, this year has started much better than last for flour, following the price rises put through in September and November 2007.
It said: “The first quarter profit is ahead of last year and in line with budget. The market remains competitive and market share is being maintained. Forward wheat contracts are in place to safeguard margins.”
Carr’s added that its engineering businesses were busy and profit in the first quarter was ahead of last year. It said: “The order book remains strong and the enquiry level is encouraging.”
Net debt increased to £30.5m from £17.4m in August which the group said reflects increased working capital, particularly inventory, as massive raw material price rises were experienced from December 2007 onwards.
