Carr's Group Plc - Final Results

 

CARR'S GROUP PLC ("Carr's" or the "Group")

FULL YEAR RESULTS For the year ended 31 August 2019

A strong performance in the year with growth on track

Carr's (CARR.L), the Agriculture and Engineering Group, announces its results for the year ended 31 August 2019.

 

Financial Highlights

 

Adjusted[1]

 

FY19          

FY18          

+/-

Revenue (£m)

403.9

403.2

+0.2%

Adjusted1 operating profit (£m)          

18.9

17.5

+8.4%

Adjusted1 profit before tax (£m)

18.0

16.6

+9.0%

Adjusted1 EPS (p)

14.6

13.9

+5.0%

 

 

 Statutory

 

FY19

FY18

 +/-

Revenue (£m)

403.9

403.2  

+0.2%

Operating profit (£m)

17.2

16.4

+4.8%

Profit before tax (£m)

16.3

15.5

+5.2%

 

                                                

                                                     

 

Basic EPS (p)

13.1

13.0

 +0.8%

Dividend per share (p)

4.75

4.5

 +5.6%

 

 

 

 

Net debt (£m)

23.8

15.4

+54.5%

Capex (£m)

6.4

5.5

+15.8%

 

Commercial Highlights

  • Overall strong performance: robust result in Agriculture, and strong performance in Engineering.
  • In Agriculture, impact of unseasonable weather in UK and USA mitigated by cost control, manufacturing efficiencies and effective raw material procurement.
  • Volumes of USA feed blocks lower as a result of consistently wet weather, but emergence from drought across large areas in the USA expected to be beneficial in the medium term.
  • Plans to establish newly acquired Animax as a centre of excellence for innovation and product development well underway.
  • New divisional structure in Engineering established to enable closer collaboration and improved business development.
  • Engineering division order books remain strong.
  • Acquisition of NW Total in June enhances Engineering division and provides opportunities in nuclear defence market.

[1] Adjusted results are after adding back amortisation of acquired intangible assets and non-recurring items including acquisition costs (note 3)

 

Chris Holmes, Chairman of Carr's Group, commented: 

"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.   

"We also made good strategic progress during the year, including acquisitions across both divisions where integration is progressing well.  In Agriculture, we are excited by plans to develop Animax, acquired in September 2018, into a centre of excellence for innovation and product development for the wider Agriculture division.

"Our Engineering division delivered a strong performance, building on momentum in the prior year. We believe the newly established structure of our Engineering division will position us better for sustainable growth, enabling closer collaboration between businesses and better business development.

"I am confident, as I step down from the role of Chairman at the AGM in January, that I leave the Company in an excellent position to build upon on its strong market positions and capabilities, expand its international footprint and deliver sustained growth."