REG - Carr's Group PLC - Trading Update

Carr'sAnnouncement

05/08/2022 07:00

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RNS Number : 0070V  Carr's Group PLC  05 August 2022

 

5 August 2022

 CARR'S GROUP PLC

("Carr's" or the "Group")

 

Trading Update

 

Carr's (CARR.L), the Agriculture and Engineering Group, announces a trading
update for the 22-week period ended 30 July 2022.

 

The Group's overall trading performance is in line with the Board's
expectations for the full financial year.

 

In Speciality Agriculture, whilst raw material costs continued to rise
significantly, sales margins were notably improved in all markets as price
rises have been passed onto customers.  Volumes in the UK and Ireland
remained solid, supported by strong farmgate prices. However, USA volumes
continued to be impacted adversely by a reduction in beef cattle herd size due
to drought causing a shortage of grazing.

 

UK Agricultural Supplies traded well during the period, with continued high
activity levels in retail and machinery and with the market absorbing the
impact of cost inflation in fuels and feeds. Since the spring, dairy feed
volumes have held up but there has been a reduction in volumes of beef and
sheep feeds as customers limit expenditure on inputs.

 

Engineering continued to benefit from high levels of work supported by a
strong order book. Financial performance however remained below management
expectations due in part to supply chain delays for some components of orders
for robotics, and the ongoing costs incurred to achieve completion of a key
project in the engineering solutions business.

 

Working capital requirements have continued at higher levels as reported in
April due to the inflationary impact from increased raw material costs and
selling prices with the effect that debt levels continue to be higher than the
prior year.  Undrawn facilities at 25 June 2022 were £28.4m.

 

A second interim dividend of 1.175 pence per share will be paid on 30
September 2022 to shareholders on the register at close of business on 26
August 2022. The ex-dividend date will be 25 August 2022.

 

In January, the Board announced a review of the strategic options for each of
the Group's three divisions with the intention to grow shareholder value.
That review is nearing completion and the Board expects to make a separate
announcement shortly.

 

 

 

 

Enquiries:

 

Carr's Group plc
 
           Powerscourt

Peter Page (Executive
Chairman)
Nick Hayns / Sam Austrums

Tel: +44 (0) 1228 554 600
 
 Tel: +44 (0) 20 7250 1446

 
 

 

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 metals and minerals for livestock.

 

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

 

Its Engineering division designs and manufactures pressure vessels,
manufactures precision components from specialist steel alloys, manufactures
robotic manipulators, and provides engineering design, assembly, and
installation services for the nuclear, defence and oil & gas industries.

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