15th Apr 2019 09:03
LONDON (Alliance News) - Carr's Group PLC on Monday reported a dip in its interim profit due to difficult conditions in its agriculture division and pension scheme charges.
For the six months to March 2, the agriculture and engineering group posted pretax profit of GBP10.3 million, down 2.6% from GBP10.6 million a year ago.
Revenue meanwhile increased 3.0% year-on-year to GBP206.2 million from GBP200.1 million.
The reduction in profitability was mainly due to GBP1.1 million amortisation charges relating mainly to the company's pension scheme, increased from GBP321,000 a year ago.
Operationally, the company's agriculture division saw volumes impacted by the warm weather in the UK and US, in marked contrast to the same period in 2018.
"During the period, our agriculture division was impacted by challenging external market conditions, including unseasonably mild weather in marked contrast to the same period in 2018, and continued uncertainty in the UK around Brexit. However, we were able to mitigate the effect of these challenges through improved efficiencies, operating cost controls and better procurement," Chief Executive Tim Davies said.
Carr's Engineering unit however, reported a "strong performance" particularly in the UK Manufacturing and USA Engineering businesses leading to trading "significantly ahead of prior year".
Carr's upped its interim dividend 4.7% to 1.125 pence per share from 1.075p a year ago.
Looking ahead, the company said its expectations for the full financial year remain unchanged.
Davies added: "Trading in the second half of the year has started in line with expectations, and the board's outlook for the full year remains unchanged. We also remain confident in the medium term prospects of the group as we continue to invest across our divisions, expand our product offering and grow our international footprint."
Carr's shares were trading down 3.3% at 150.82 pence each early Monday morning.
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