15th Apr 2020 12:52
(Alliance News) - Carr's Group PLC on Wednesday reported a rise in profit in the first half of its financial year, but it deferred payment of an interim dividend due to coronavirus-related uncertainty.
The stock was trading 3.4% higher at 106.00 pence each on Wednesday afternoon in London.
For the six-month period to the end of February, the agriculture and engineering group posted pretax profit of GBP10.5 million, rising by 1.7% from GBP10.3 million reported in the same period a year prior. Revenue however slipped by 3.0% to GBP200.0 million from GBP206.2 million.
Net operating expenses were down to GBP17.7 million from GBP20.9 million a year before.
Adjusted group operating profit was GBP10.3 million, down 13% from GBP11.9 million, with the decline attributed by Carr's to challenging market conditions and unfavourable weather in the Agriculture division, and to the phasing of contracts in Global Robotics and Global Technical Services in the Engineering division.
Revenue for Agriculture was down by 5.5% to GBP175.0 million and adjusted operating profit was down by 16% to GBP9.0 million from GBP10.7 million year-on-year. Adjusted operating profit for the Engineering division fell by 40% to GBP1.2 million from GBP2.0 million.
Looking ahead, Carr's said it will continue to expand its Agriculture business in North America, adding that the Engineering division has robust medium-term prospects, supported by a strong and diverse global pipeline.
It added that the Covid-19 outbreak has not significantly hurt its business but it has implemented measures to mitigate any negative impact, including "closely monitoring" cash flow and deferring the payment of its interim dividend.
The payout decision to be reviewed in July.
"While there remains significant uncertainty over the impact of Covid-19, we are moving decisively on all fronts to address these challenges, ensuring we conserve cash and maintain a robust financial position. We are confident that our approach and robust business model will ensure the group is well placed to endure this period of uncertainty and continue to deliver growth in the medium term," said Chief Executive Tim Davies
As at February 29, Carr's had cash of GBP29.3 million, undrawn facilities of GBP22.4 million and net debt of GBP25.4 million
By Ife Taiwo; [email protected]
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