TIDMCARR
RNS Number : 7455F
Carr's Group PLC
17 July 2019
17 July 2019
CARR'S GROUP PLC ("Carr's" or the "Group")
Trading Update
Trading in line with expectations
Carr's (CARR.L), the Agriculture and Engineering Group, is
issuing a trading update relating to the 19 week period ended 13
July 2019. The Group is trading in line with the Board's
expectations for the current financial year.
Agriculture
In UK Agriculture, the unseasonably mild and dry weather
persisted through to the end of April, which reduced demand for
feed and fuel. However, the impact of this on the business has been
partially offset by high levels of farm activity due to good
growing conditions, together with ongoing cost management
activities, good procurement, and strong positions on raw
materials. Volumes in our new low moisture feed block plant in
Shelbyville, Tennessee, continued to grow as we expand our
geographic reach across eastern and south eastern states of the
USA.
The integration of Animax, our manufacturer of market-leading
trace element supplements for livestock, which was acquired by the
Group in September 2018, continues to make good progress.
Additionally, in July 2019 we acquired Cumbria based Paul Chuter
Agricultural Services Ltd, a regional supplier of all-terrain
vehicles, which has increased the range of specialist machinery
available to our core farming customers. The business has been
integrated into our country store at Cockermouth, Cumbria, to
maximise footfall and levels of customer service.
Engineering
The Engineering business has continued to develop in the period,
particularly in UK Manufacturing where order books have
strengthened. Order books in Remote Handling are lower, as
previously reported, but the level of global opportunities,
particularly in Europe and Japan, is increasing which provides
confidence in the medium term.
Our USA Engineering business has a very strong order book
position and opportunity pipeline following a number of contract
wins previously announced. Work has now started on the development
of our passive cooling technology following the award of funding
from the US Department of Energy. This technology can be
retrofitted to existing nuclear power plants in order to improve
safety.
On 1 July we were pleased to announce the acquisition of NW
Total Engineered Solutions Ltd.
Dividend
The Board announces that a second interim dividend of 1.125
pence per share (2018: 1.075 pence per share) will be paid on 4
October 2019 to shareholders on the register at close of business
on 30 August 2019. The ex-dividend date will be 29 August 2019.
Outlook
As we have previously stated, significant uncertainty remains
associated with Brexit and the UK's future relationship with the
EU, and we continue to closely monitor the position. Our
diversified Agriculture business and international footprint
provide some protection from the impact of an adverse outcome to
Brexit negotiations.
In Engineering, order books continue to strengthen across the
business, which provides increased confidence in the medium term.
The progress made by our Remote Handling business in the USA
represents a significant development for the Group and brings
further opportunities to the division. The Board is also greatly
encouraged by the acquisition of NW Total and the enhanced range of
specialist services it will bring to the Group, in particular
across nuclear markets.
The Board continues to expect trading for the current full year
to be in line with its expectations.
Tim Davies, Chief Executive, commented:
"We are pleased to report that the Group continues to trade in
line with the Board's expectations for the full year, despite being
impacted in the short-term by challenging weather conditions. We've
made notable progress with the integration of Animax, as we expand
international sales and invest in new product development. Brexit
uncertainty remains a concern and we continue to closely monitor
developments.
Our Engineering business continues to perform well, with a
strong order book and further international growth. Earlier this
month we announced the acquisition of NW Total, which enhances the
range of specialist products and technical services we offer,
particularly in nuclear markets.
As we continue to invest in our businesses, both organically and
through strategic acquisitions, and expand our international
footprint, we remain confident the Group is well positioned for
sustained growth."
The Company expects to issue its preliminary results for the
year ending 31 August 2019 on Monday 11 November 2019.
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 and supplying
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
and supplementation products for livestock, 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 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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