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06/09/2014 16:32

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RNS Number : 2677M
Carr's Milling Industries PLC
15 July 2014 
 
15 July 2014 
 
CARR'S MILLING INDUSTRIES PLC ("Carr's" or the "Group") 
 
Interim Management Statement 
 
Carr's (CRM.L), the agriculture, food and engineering group, is issuing its
interim management statement for the nineteen week period ending 12 July
2014. 
 
The Group's financial position and trading across all of Carr's divisions in
the period remains consistent with the Board's expectations for the full
year. 
 
Agriculture 
 
We are pleased with the continued progress in the strategic development of
this division. 
 
The Group's UK position has been strengthened through the acquisition of Merit
(Feeds & Storage) Limited, a compound feed and retail business based in
Lancashire, which was completed on 30 April 2014 and has now been consolidated
into the Lancaster Mill and the enlarged Brock branch. 
 
The Country store refurbishment programme of the last 12 months has resulted
in significant improvements and increased efficiencies.  Carr's customers
continue to benefit from the vast range of core country store products
available. 
 
The growth in sales of the AminoMax UK product is as a result of a significant
uplift in demand from the Group's dairy customers, who realise the benefits of
the patent-protected rumen-bypass protein product.  This increase in sales
supports the Group's ambition of becoming the UK leader in dairy nutrition. 
 
Global demand for Carr's feed blocks continues, with increased recognition of
the brands ensuring positive underlying growth and further global
opportunities remain under constant evaluation.  Following successful trials,
our feed block offering has been expanded to include two innovative new
products, manufactured in Germany by Crystalyx GmbH, for the pig and poultry
industries throughout Europe. 
 
Food 
 
Food safety and hygiene standards remain a primary concern for our customers
and investment continues in this division in order to maintain our position at
the cutting edge of flour milling efficiency. The new mill at Kirkcaldy has
been operational for 10 months and delivering all the planned technological
benefits as expected. 
 
This year's UK harvest is expected to be large but the quality remains unknown
at this stage. As our three mills are strategically located, with two at
port-side locations, we remain well placed to procure the best quality wheat,
which enables us to distribute flour to our customers in the most cost
effective manner. 
 
Engineering 
 
The new Wälischmiller factory was officially opened on 27 June 2014 and
feedback from customers, partners and suppliers has been extremely positive. 
 
Research projects have commenced into the effects of radiation on battery
life, as well as advances in motor technology, both of which could be
applicable to a range of products manufactured by Wälischmiller. The Demo 2000
development project into the adaptation of the Telbot for the oil and gas
industry, being conducted in conjunction with Shell and Statoil is progressing
well in line with our expectations.  The long term benefits to Carr's of our
investment are clear and will be leveraged by a new state-of-the-art customer
facility at Walischmiller. 
 
The contract with BP Shah Deniz for 27 pressure vessels has been expanded
further to a value of £8 million, and the forward order book at Bendalls is
now full through 2014 and into 2015. Signs of activity in the nuclear sector
are encouraging and the division is in a strong position to start capitalising
on these in the next financial year. 
 
Chirton Engineering, acquired in April this year, has been successfully
integrated into the Engineering division. The full benefits of this
acquisition are expected to be realised in the next financial year. The
business will be moved to larger premises next year in order to meet the
increasing customer demand. 
 
Carrs MSM, the UK-based manipulator business, continues to perform well and
ahead of expectations with demand emanating from the Sellafield "life of
plant" contract signed in 2012.  Under the terms of the contract, MSM supplies
parts that are critical for the major operating plants at Sellafield. MSM is
also experiencing continued demand for upgrading manipulators at the Heysham
II, Hinckley, and Hartlepool power plants. 
 
Financial Position 
 
The Group's financial position remains strong. Net debt at 31 May 2014 was
£27.1 million up from £25.3 million at 1 March 2014, the increase being
primarily due to the acquisition of Chirton Engineering and ongoing capital
expenditure.  The renewal of the Group's UK banking facilities has been
completed ahead of schedule on improved terms. Committed undrawn facilities at
31 May 2014 totalled £16.4 million. 
 
Tim Davies, Chief Executive, commented: "Our geographic diversity and
continued investment has ensured that we are at the forefront of innovation,
technology and design.  This has resulted in a strong performance across every
division during the period. As such, we expect the full year performance to be
in line with our existing expectations." 
 
The Group expects to issue its Preliminary Results for the year ending 30
August 2014 on 10 November 2014. 
 
~ END ~ 
 
Enquiries: 
 
 Carr's Milling Industries PLC         Tel: +44 (0) 1228 554 600  
 Tim Davies (Chief Executive)                                     
 Neil Austin (Group Finance Director)                             
                                                                  
 Powerscourt                           Tel: +44 (0) 20 7250 1446  
 Nick Dibden                                                      
 Sophie Moate                                                     
 
 
About Carr's Milling: 
 
Carr's Milling Industries (CRM.L) is an international leader in the provision
of essential industrial services focused on the Agriculture, Food and
Engineering sectors. With a facility footprint spanning the UK, Europe and
North America, supplying customers in over 30 countries around the world, the
Group offers a range of services including the manufacturing and supply of
flour, robotic and remote handling equipment, a UK network of country stores,
farm machinery, and feed blocks for livestock. 
 
This information is provided by RNS
The company news service from the London Stock Exchange