REG - Carr's Group PLC - Trading Update

Carr'sAnnouncement

18/01/2022 07:05

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220118:nRSR7353Ya&default-theme=true

RNS Number : 7353Y  Carr's Group PLC  18 January 2022

 

 

 

CARR'S GROUP PLC ("Carr's" or the "Group")

 Trading Update

Carr's (CARR.L), the Agriculture and Engineering Group, provides a trading
update to coincide with its Annual General Meeting being held in Carlisle
today at 11:30am.  This update relates to the 20-week period ended 15 January
2022.

Update on trading and outlook

The Group made a positive start to the year with overall performance during
the period broadly in line with the Board's expectations.

Speciality Agriculture traded in line with expectations during the period with
sales volumes ahead of the prior year, although margins were impacted by raw
material price increases.  Strong livestock prices are expected to underpin
demand for the remainder of the financial year.

Overall trading in our Agricultural Supplies division is on track, where a
strong performance from our machinery business helped to offset the impact of
raw material price volatility and a reduction in fuel volumes owing to milder
weather.

Engineering traded behind the Board's expectations in the period, but
significantly ahead of the prior year driven by a strong performance in
Fabrication and Precision Engineering and an improved performance in Remote
Handling and Robotics.  Order books across the division remain strong.

Net debt at 25 December 2021 was £27.9m (£19.0m at 26 December 2020).  The
change results from an increase in working capital across all divisions
including timing delays in the collection of cash following the implementation
of a new ERP system in our Agricultural Supplies business.

The Board is confident in the long-term prospects of the Group, and its
performance expectations for the full year remain unchanged.

Review of strategic options

The Group's portfolio is managed in three divisions, with financial
performance reported accordingly. Each division has a strong market position
and considerable potential for growth although, operating in different
markets, the Board recognises that there are limited opportunities to benefit
from synergies.

The Board has therefore decided to conduct a review of its strategic options
across all three divisions, which will include input from external advisers.
 The Board will update investors at the time of the Group's interim results
in April 2022.

Board succession

As previously announced, upon conclusion of today's AGM, Alistair Wannop and
Kristen Eshak Weldon will stand down from the Board.  The Board is grateful
for the contributions made by Alistair and Kristen and is actively recruiting
for an independent Non-Executive Director.  A process is also underway in
relation to the appointment of a new Chief Executive Officer, which will be
concluded as soon as possible.

Dividend

Subject to shareholder approval at today's AGM, the proposed final dividend of
2.65 pence per share for the year ended 28 August 2021 will be paid on 26
January 2022 to shareholders on the register at close of business on 17
December 2021.  The ex-dividend date was 16 December 2021.

The Company expects to announce its interim results for the 26-week period
ending 26 February 2022 on 20 April 2022.

 

Enquiries:

 

 Carr's Group plc                          Tel: +44 (0) 1228 554 600

Peter Page (Executive Chairman)

 Neil Austin (Chief Financial Officer)
 Powerscourt                               Tel: +44 (0) 20 7250 1446

Nick Dibden / Nick Hayns / Sam Austrums

 

About Carr's Group plc:

 

Carr's is an international leader in manufacturing value added products and
solutions, with market leading brands and robust market positions in
Agriculture and Engineering, supplying customers in over 50 countries around
the world. Carr's operates a decentralised business model that empowers
operating subsidiaries enabling them to be competitive, agile, and effective
in their individual markets whilst setting overall standards and goals.

Its Speciality Agriculture division manufactures and supplies feed blocks,
minerals and boluses containing trace elements and minerals for livestock.

Its Agricultural Supplies division manufactures compound animal feed,
distributes farm machinery and fuels, and runs a UK network of rural stores,
providing a one-stop shop for the farming community.

Its Engineering division designs and manufactures bespoke equipment, including
robotic and remote handling equipment, and provides technical services
primarily into nuclear, oil and gas, and defence industries.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTUBSWRUUUAAAR