17th Jul 2019 10:34
(Alliance News) - Carr's Group PLC said Wednesday it expects trading for its full year to be in line with expectations after solid performances from its agriculture and engineering units in the year to date.
During the 19 week period ended July 13, the firm was impacted by mild weather in April which reduced demand for feed and fuel, though cost-cutting measures and high levels of farm activity in its UK agriculture unit offset the sales reduction.
Elsewhere in its agriculture sector, Carr's said feed volumes in its plant in Shelbyville, Tennessee continued to grow and the animal health products unit Animax made "good progress" during the period, Carr's said. Animax was acquired in September for GBP8.5 million.
In the company's engineering business, its UK manufacturing unit had stronger order books during the period.
Despite order books in its remote handling sector lowering, the company remains confident in the medium term due opportunities in Europe and Japan.
Like the UK, order books in its USA engineering business were strong and the company said work in its passive cooling technology has begun after it secured funding from the US Department of Energy.
Although the company could be affected by European Union withdrawal uncertainty, it said its agriculture business and international presence provide it with "some protection from the impact of an adverse outcome to Brexit negotiations".
The company expects results for the financial year ending August 31 to be in line with its forecasts. It had a pretax profit of GBP15.5 million on a revenue of GBP403.2 million a year prior.
Chief Executive Tim Davies said: "We are pleased to report 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 have made notable progress with the integration of Animax, as we expand international sales and invest in new product development.
"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 will pay a second interim dividend. Like the first payment, it will be 1.125 pence per share, up from 1.075 from the year prior.
Shares in Carr's were up 1.7% at 152.00 pence each in London on Wednesday morning. The company expects to publish its results for the full year on November 11.
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