CARR'S GROUP PLC (“Carr's” or the “Group”)
INTERIM RESULTS
For the 26 weeks ended 27 February 2021
“An improved H1 performance in a challenging environment”
Carr's (CARR.L), the Agriculture and Engineering Group, announces its Interim Results for the 26 weeks ended 27 February 2021
Financial highlights
|
|
Adjusted1 H1 2021 |
Adjusted1 H1 2020 |
+/- |
|
|
|
|
|
|
Revenue (£m) |
201.4 |
200.0 |
+0.7% |
|
Adjusted1 operating profit (£m) |
10.9 |
10.3 |
+5.3% |
|
Adjusted1 profit before tax (£m) |
10.4 |
9.6 |
+8.1% |
|
Adjusted1 EPS (p) |
8.2 |
8.0 |
+2.5% |
|
Net debt2 (£m)
|
10.6 |
25.4 |
-58.5% |
|
|
Statutory H1 2021 |
Statutory H1 2020 |
+/- |
|
|
|
|
|
|
Revenue (£m) |
201.4 |
200.0 |
+0.7% |
|
Operating profit (£m) |
10.7 |
11.2 |
-5.1% |
|
Profit before tax (£m) |
10.2 |
10.5 |
-3.2% |
|
Basic EPS (p) |
8.2 |
9.3 |
-11.8% |
|
Interim dividend (p) |
1.175 |
– |
N/A
|
Highlights
- Initial business review complete following appointment of new CEO.
- Group now structured in three divisions: Speciality Agriculture (feed blocks, minerals, and trace element boluses, formerly Supplements), Agricultural Supplies (formerly UK Agriculture) and Engineering.
- Resilient business model despite COVID-19 and Brexit uncertainty – all agricultural stores and manufacturing facilities operational throughout.
- Strong performance from Speciality Agriculture and Agricultural Supplies.
- Engineering adversely impacted by low oil prices and travel restrictions in H1 but expected to be significantly better in H2. Order book now stands at £44m, increased by 19% since year end and order intake now improving.
- Business improvement programme initiated to simplify, standardise, and generate synergies between business units in each division.
- Reportable accident frequency rate reduced compared to last year and COVID-19 controls remain effective.
1 Adjusted results are consistent with how business performance is measured internally and are presented to aid comparability Page 1 of performance. Adjusting items are disclosed in note 8.
2 Excluding leases. Further details of net debt can be found in note 12.
Outlook
A continued positive performance is forecast across the Agricultural divisions together with an improved second half in the Engineering division as the impact of COVID-19 begins to recede and its order intake continues to increase. A programme of simplification and standardisation is forecast to improve performance over time. Trading since 27 February 2021 has been positive and the Board's expectations for the current financial year remain unchanged.
Hugh Pelham, Chief Executive Officer, commented:
“Despite a challenging operational environment with significant headwinds experienced in Engineering we have delivered an improved performance compared to the same period last year. Our Speciality Agriculture and Agricultural Supplies divisions have performed particularly strongly. The outlook for Engineering is for an improved performance in the second half of the financial year.
“I have been fortunate to inherit some sound foundations from my predecessor, Tim Davies. Carr's Group owns a portfolio of good businesses with strong market positions.
“Our people have responded brilliantly to the challenge of working in a COVID-19 environment. I would like to thank them for their commitment and dedication in keeping all our stores, fuel depots and manufacturing operations running in such difficult times.
“An initial operating review has been conducted and the Group is now structured in three divisions: Speciality Agriculture, Agricultural Supplies and Engineering to create greater operational efficiencies, market focus and provide greater transparency for investors. The results of our Speciality Agriculture division demonstrate the quality of our products in the feed block, minerals and animal health markets.
“Actions have been taken to strengthen reporting and governance systems within the business as part of a process to identify opportunities for improvement.
“Considerable opportunity exists to optimise the current portfolio through a process of standardisation, simplification and seeking synergies between similar businesses. Growth can be achieved through a mixture of geographic expansion, selling all our service lines to our customer base, and acquisition and potential industry consolidation.
“I am confident that the Group will continue to deliver a resilient and improving set of results over time.”