Carr's Group PLC Trading Update (3158L)
January 12 2021 - 1:00AM
UK Regulatory
TIDMCARR
RNS Number : 3158L
Carr's Group PLC
12 January 2021
12 January 2021
CARR'S GROUP PLC ("Carr's" or the "Group")
Trading Update
Carr's (CARR.L), the Agriculture and Engineering Group, provides
a trading update to coincide with its Annual General Meeting being
held as a closed meeting in Carlisle today at 11:30am. This update
relates to the 19-week period ended 9 January 2021.
Update on trading
The Group has made a positive start to the year with trading
overall in line with the Board's expectations.
During the period, the Group remained almost fully operational
despite the COVID-19 pandemic, adhering to government guidelines
and prioritising the health, safety and wellbeing of colleagues and
customers at all times.
The Agriculture division is trading ahead of the Board's
expectations. The Supplements business has seen strong global
demand in the period, driven by resilient cattle prices in the USA
and increased exports into the Republic of Ireland. Trading in the
UK Agriculture business is as expected.
Whilst good progress continues to be made on projects in the
nuclear and defence sectors, there has been an impact from the
reduction in oil and gas investment due to the weakened oil price,
leaving performance in the Engineering division behind the Board's
expectations.
The Group's financial position remains strong. Net debt at 28
November 2020, excluding leases, was GBP20.4m (30 November 2019:
GBP26.7m). This reduction in debt was ahead of the Board's
expectations due to a continuing focus on cash management and lower
working capital requirements.
Board changes
At the conclusion of today's AGM, Hugh Pelham will be appointed
as Chief Executive Officer, subject to election at that meeting and
upon Tim Davies standing down from the Board. The Board would like
to place on record its gratitude to Tim for the contribution made
during his tenure as CEO. Tim will remain available to the Board
and the Group to share his advice and knowledge during a handover
period.
Dividend
Subject to shareholder approval at today's AGM, the proposed
final dividend of 2.5 pence per share for the year ended 29 August
2020 will be paid on 15 January 2021 to shareholders on the
register at close of business on 4 December 2020. The ex-dividend
date was 3 December 2020.
Outlook
The UK Government's announcement on 24 December 2020 of an
agreed future trading relationship with the EU provides clarity for
the Group. The deal ensures that our customers remain competitive
across the EU as the UK begins its long-term transition towards a
new system of agricultural support.
COVID-19 continues to present a challenge for all businesses.
Whilst some reduced activity in Engineering remains due to the
weakened oil price, the Group is well placed overall as a supplier
of essential goods and services with well-established procedures in
place to protect staff and customers.
The Board remains confident in the long-term prospects of the
Group's Agriculture and Engineering divisions.
Peter Page, Chairman, commented:
"The Board is encouraged by the robust performance of the
business in the first four months of the year. The essential nature
of our products and services enables us to maintain trading
relationships in challenging circumstances. The commitment and
dedication of all staff and colleagues is greatly appreciated by
the Board.
"I take this opportunity to pay tribute to Tim Davies for his
contribution during the past almost eight years. Carr's has made
substantial progress under his leadership. Tim's personal
commitment to supporting colleagues over the last 12 months has
been particularly impressive.
"The Board welcomes Hugh Pelham and we look forward to working
with him in the years ahead."
The Company expects to announce its interim results for the
26-week period ending 27 February 2021 on 21 April 2021.
Enquiries:
Carr's Group plc Tel: +44 (0) 1228 554 600
Tim Davies (Chief Executive Officer)
Hugh Pelham (Chief Executive Officer Designate)
Neil Austin (Chief Financial Officer)
Powerscourt Tel: +44 (0) 20 7250 1446
Nick Dibden / Lisa Kavanagh / Sam Austrums
About Carr's Group plc:
Carr's is an international leader in manufacturing value added
products and solutions, with market leading brands and robust
market positions in Agriculture and Engineering, supplying
customers in over 50 countries around the world.
Its Agriculture division manufactures and supplies feed blocks
and supplementation products for livestock, distributes farm
machinery and runs a UK network of rural stores, providing a
one-stop shop for the farming community. Its Engineering division
designs and manufactures bespoke equipment and provides technical
engineering services into the nuclear, petrochemical, oil and gas,
pharmaceutical, process and renewable energy industries, including
robotic and remote handling equipment.
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