CARR’S GROUP PLC
(”Carr’s”, the ”Company”, or the ”Group”)
INTERIM RESULTS AND CEO SUCCESSION
Strong, profitable growth in continuing operations
Significant progress towards pure-play specialist agriculture transformation,
with clear growth strategy and focus on delivering value
Carr’s Group plc (CARR.L), announces its unaudited interim results for the six months ended 28 February 2025 (“H1 2025”, “H1 FY25”, or the “Period”).
| Adjusted (Continuing Operations) | H1 2025 | H1 2024 (restated) | +/- % |
| Revenue (£’m) | 50.6 | 47.3 | +7.0 |
| Operating profit (£’m) | 5.9 | 3.6 | +62.6 |
| Profit before tax (£’m) | 5.9 | 3.8 | +54.8 |
| Earnings per share (p) | 5.1 | 3.5 | +45.7 |
| Statutory (Continuing Operations) | H1 2025 | H1 2024 (restated) | +/- % |
| Revenue (£’m) | 50.6 | 47.3 | +7.0 |
| Operating profit (£’m) | 7.7 | 1.6 | +366.6 |
| Profit before tax (£’m) | 7.7 | 1.8 | +319.5 |
| Basic earnings per share (p) | 6.5 | 1.9 | +242.1 |
| Interim dividend per share (p) | 1.2 | 2.35 | -48.9 |
| Statutory | H1 2025 | H1 2024 (restated) | +/- % |
| Profit for the period (£’m) | 7.1 | 2.8 | +150.3 |
| Basic earnings per share (p) | 7.5 | 3.0 | +150.0 |
| Net cash/(debt) (£’m) | |||
| Continuing Group | 15.7 | 12.5 | |
| Engineering Division | (0.3) | (4.5) | |
| Total Group | 15.4 | 8.0 |
Financial Highlights:
Agricultural Continuing Operations
- H1 FY25 revenues increased by 7.0% on prior year to £50.6m (H1 2024 restated: £47.3m).
- H1 FY25 adjusted operating profit increased by 33.4% to £7.0m (H1 2024 restated: £5.3m).
- UK low moisture block tonnage increased by 13% year on year whilst US volumes grew by 3% despite continued difficult market conditions.
Central Costs
- Central costs, on an adjusted basis, of £1.1m (H1 2024: £1.6m).
- Ongoing cost reduction measures continue following Engineering disposals.
Adjusting Items
- Continuing Operations: net £1.8m income of adjusting items (pre-tax) comprising:
- £2.9m of gain on disposal of investment / non-core properties and related assets.
- £0.9m of restructuring costs.
- £0.2m costs relating to pension scheme buy-in.
- Discontinued Operations: net costs of £0.7m relating to closure and sale of discontinued activities.
Net Cash / Debt
- Half year-end net cash of £15.7m (H2 2024: Net cash £8.0m) – prior to payment of final dividend for FY24.
Dividends
- Interim dividend of 1.2p per share (H1 2024: 2.35p) to be paid on 20 June 2025 to all shareholders on the register at close of business on 16 May 2025, irrespective of any later decision to participate in the Tender Offer.
- Future dividend quantum distributed will increase at least in line with earnings through semi-annual payments reflecting the anticipated reduced shares in issue following the Tender Offer.
Strategic highlights:
Engineering Disposal:
- Completed the disposal of the larger part of the Engineering Division for £75m enterprise value on 22 April 2025.
- Ongoing process to realise value for the remaining Chirton Engineering business.
Group Simplification:
- Completed the sale of 8 investment / non-core properties for £7m to date in FY25.
- Completed the de-risking of its defined benefit pension scheme through a policy buy-in in January 2025.
- Ongoing focus on central cost reduction through the rightsizing of central functions:
- H1 adjusted central costs £1.1m vs H1 FY24: £1.6m.
- Engineering disposal allows further savings to be implemented.
Strategic transformation of Agriculture Division
- Focussed growth strategy as a global specialist in feed supplements for pasture-based livestock announced in December 2024.
- Good progress made across each strategic driver of value creation:
- Improve operating margin across current portfolio:
- Agriculture H1 adjusted operating margin of 13.9% vs 11.2% in prior period.
- Deliver profitable growth in core businesses:
- Volume of core low moisture block product sold in H1 up 6.7% on prior year.
- Expansion into new extensive grazing-based growth geographies:
- Opportunities in growing, counter seasonal, southern hemisphere geographies being actively assessed.
- Structural under-performance and non-core activities addressed:
- Non-core and loss making Afgritech business closed and sold in October 2024.
- Loss making New Zealand operations closed and third-party distributor appointed.
- Consultation over closure of loss-making Animax site in progress with outsourced production of boluses being developed.
Return of capital:
- A Tender Offer process to return up to £70m to shareholders will be initiated in the second half of May 2025 and is expected to conclude in early July (subject to shareholder approval).
Board Change:
- As a result of the transformation into a pure-play Agriculture business, Group CEO David White will step down with effect from 30 June 2025, at which point Josh Hoopes, currently CEO Global Agriculture, will be appointed CEO for the business.
Outlook
With dependence on agriculture markets across the northern hemisphere, in the short to medium term the performance of the Group will be more seasonal than prior to the disposal of the Engineering Division. Whilst we anticipate the positive trading momentum from the first half will continue, the second half of the year typically experiences lower seasonal trade across our markets which will moderate overall performance. In addition, completion of the main Engineering disposal will enable further reductions in central costs.
Trading conditions in the US, particularly in the southern states, remain challenging, largely due to climatic factors, with the anticipated recovery in US herd size likely to be later than the previously anticipated second half of 2025, impacting expected performance in FY26. Across all our markets, our strategic priority remains to deliver increased market share and margin enhancements through disciplined commercial execution.
David White, Chief Executive Officer of Carr’s Group said:
“Today’s interim results clearly demonstrate the benefits of our strategic transformation to a specialist agriculture manufacturer. During the period the Group has achieved significant milestones through the sale of the bulk of the Engineering Division, the development of a clear and refocused Agriculture strategy, with substantial progress made in corporate simplification through pension de-risking, sale of excess properties and ongoing central cost reduction.
I would like to thank current and former colleagues in the Engineering Division and Group functions for their hard work and dedication in delivering a successful realisation of value for the Engineering Division. With the planned return of capital to shareholders expected to complete in early July, the time is right to transition leadership to our CEO Global Agriculture, Josh Hoopes. As such I shall step down as Group CEO on 30 June 2025, at which point Josh will be appointed as CEO for the business. The Board has full confidence that under Josh’s leadership and through execution of our refocused strategy the business can achieve significant profitable growth and drive shareholder returns. I wish him and the team every success as they pursue exciting opportunities that lie ahead.“
Tim Jones, Chairman of Carr’s Group said:
“The Company’s transition into a pure-play specialist manufacturer of research proven, value-added livestock supplements is almost complete. I would like to thank David White for his role in expertly leading this transformation with clarity and pace. David’s help in assembling and enabling the team of agriculture specialists to take the Company forward and in strengthening and de-risking our balance sheet – as our Interim results illustrate – perfectly positions us for the next phase of our strategy. Under Josh Hoopes’ ongoing leadership we have every confidence in the delivery of that strategy and of the value that it can create.”