TIDMCARR
RNS Number : 9477U
Carr's Group PLC
18 July 2018
18 July 2018
CARR'S GROUP PLC ("Carr's" or the "Group")
Trading Update
Trading slightly ahead of expectations across both Agriculture
and Engineering
Carr's (CARR.L), the Agriculture and Engineering Group, issues
the following trading update for the year ending 1 September 2018.
This update relates to the 17-week period ended 30 June 2018.
Overall, Carr's is trading slightly ahead of the Board's
previous expectations detailed at the time of the Group's interim
results, and significantly ahead of the prior year, across both
Agriculture and Engineering.
Agriculture
UK Agriculture continues to perform well across all areas
reflecting improved farm incomes and ongoing confidence over the
near term. Feed volumes, retail sales, machinery sales and fuel
sales are all ahead of the prior year. Pearson Farm Supplies, which
we acquired in October 2017, has been successfully integrated into
the wider Carrs Billington Agriculture business delivering sales
growth and excellent levels of customer service.
Feed block volumes in the UK remain on track. In the USA, feed
block volumes are significantly ahead of the prior year as the
cattle market continues to recover. In Europe, feed block sales
through our joint venture business based in Germany, Crystalyx
Products GmbH, continue to grow. Sales of feed blocks in New
Zealand also continue to build.
Engineering
The strong recovery in our UK Manufacturing business continues
and order books remain strong. Work continues on the significant
contract announced in July 2017.
Our remote handling businesses are performing well. The full
integration of STABER GmbH and the extension of the Group's
premises at Markdorf, Germany are nearing completion. This will
bring additional capacity to support the ongoing growth of the
business.
Our USA Engineering business also continues to perform well.
NuVision has secured a good level of further work during the
period, including a significant Mechanical Stress Improvement
Process (MSIP(R)) contract, which adds further strength to the
order book between FY19 and FY21. Progress continues to be made in
establishing a market for Wälischmiller remote handling equipment
in the USA following the acquisition of NuVision in August
2017.
Dividend
The Board announces that a second interim dividend of 1.075
pence per share (2017: 0.95 pence per share) will be paid on 5
October 2018 to shareholders on the register on 24 August 2018. The
ex-dividend date will be 23 August 2018.
Outlook
Overall, the Board remains confident in the prospects of UK
Agriculture in the near term, although caution remains given the
uncertainty over the nature of the UK's future trade agreements
after Brexit. We anticipate that the gradual recovery in the USA
cattle market seen last year and into the current financial year
will continue. This, alongside our greater geographic reach,
provides confidence in the medium term.
Order books across our Engineering businesses remain strong and
the Board is pleased with the performance of the recently acquired
NuVision business, which has greatly enhanced the division. The
Board remains encouraged by the opportunities available across the
Engineering division, particularly in the USA and China, which
continue to be explored.
We remain focused on delivering our strategic objectives of
investing in our people and our asset base, while continuing to
drive product innovation and identifying suitable growth
opportunities across both divisions, with a focus on broadening our
international footprint.
We continue to perform well and the Board now anticipates that
trading for the full year will be slightly ahead of its previous
expectations detailed in the Group's interim results in April
2018.
Tim Davies, Chief Executive, commented:
"We are pleased to announce a strong performance during the
period, across both our Agriculture and Engineering divisions. We
have seen continued improvement in UK Agriculture, reflecting
improved farm incomes and farmer confidence, and strong feed block
sales, both in the UK and internationally. The performance of our
Engineering division continues to improve, with recent acquisitions
integrating well and further orders continuing to add strength to
the order book.
Trading during the year has continued to improve and we now
anticipate that trading for the full year will be slightly ahead of
our previous expectations. We remain confident that our investments
in acquisitions and research, alongside our international
footprint, leave us well positioned for sustained growth."
The Company expects to issue its preliminary results for the
year ending 1 September 2018 on 12 November 2018.
Enquiries:
Carr's Group 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 / Lisa Kavanagh
/ 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.
Its Agriculture division manufactures and supplies feed blocks
for livestock, 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 bespoke equipment and
provides technical engineering services into the nuclear,
petrochemical, oil and gas, pharmaceutical, process and renewable
energy industries, including robotic and remote handling
equipment.
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END
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