11th Nov 2019 09:11
(Alliance News) - Carr's Group PLC on Monday said it performed "moderately ahead" of internal expectations in its recently ended financial year, despite unseasonable weather hurting sales volumes in its Agriculture division.
In the year ended August 31, revenue edged 0.2% higher year-on-year to GBP403.9 million from GBP403.2 million. The agriculture and engineering group reported a pretax profit rise of 5.2% to GBP16.3 million from GBP15.5 million last year.
The company boosted its full-year dividend by 5.6% to 4.75 pence per share from 4.5p last year.
Chair Chris Holmes said: "We are pleased to have delivered a strong financial performance in the year, moderately ahead of the board's expectations, despite unseasonable weather significantly impacting trading across our Agriculture division."
Revenue in the Agriculture unit fell by 0.6% year-on-year to GBP357.4 million from GBP359.6 million.
UK feed blocks sales volumes shrunk by 16% due to more mild winter weather during the period and an uncertain market environment.
In the US, Carr's expects wetter weather this year to boost trading, though it recently experienced a "period of sustained drought".
The Engineering unit, which recently restructured its management team, delivered a revenue rise of 6.7% year-on-year to GBP46.5 million from GBP43.6 million.
Carr's said: "Our reorganised divisional structure provides a better combined offering which is more closely aligned to our customers and the markets in which we operate, and the division is well placed for further growth."
Looking ahead, the company said trading in its current financial year is in line with expectations in its Agriculture unit, though the timing of contracts has led to a slower start in Engineering.
Carr's shares were 1.5% lower at 140.80 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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