Carr's Group PLC Trading Update (7266T)
January 10 2017 - 1:00AM
UK Regulatory
TIDMCARR
RNS Number : 7266T
Carr's Group PLC
10 January 2017
10 January 2017
Carr's Group plc
"Carr's" or the "Group"
Trading Update
Carr's (CARR.L), the Agriculture and Engineering Group, is
issuing its first trading update for the year ending 2 September
2017 to coincide with its Annual General Meeting being held in
Carlisle today at 11.30 am.
This update relates to the 18-week period which ended on 7
January 2017.
Overall, Carr's continues to trade in line with the Board's
expectations for the current financial year.
Agriculture
UK Agriculture has begun the year strongly, with compound feed
volumes ahead of the prior year. Market pressures continue to have
an impact; however, the signs of stability that were highlighted in
the Group's results announcement in November 2016 still remain.
Fuel volumes were ahead of the prior year, and machinery sales have
also shown signs of recovery in the first quarter. Our Retail
business has continued to grow with performance ahead of
expectations.
Feedblock sales in the UK have started strongly, with volumes
ahead of last year. US feedblock sales volumes are in line with the
prior year as the impact of falling cattle prices for producers
begins to take hold. Both volumes and margins are expected to
remain under pressure during the rest of this financial year.
Detailed planning for the construction of the new low moisture
feedblock production facility at Shelbyville, Tennessee, is
progressing well, with completion of the facility expected by
autumn 2017 and this should provide a platform for growth in the
medium term.
Overall, the Agriculture division is performing ahead of the
Board's expectations.
Engineering
The Engineering division has had a slower than expected start to
the year, due to a significant contract delay in the UK
Manufacturing business, which will impact production activity
throughout this financial year. Work on this contract is now
expected to commence towards the end of the year, and action is
underway to limit the resulting financial impact on the Engineering
division's performance. In the medium term, however, there is a
substantial order book and pipeline in place so prospects remain
encouraging.
The remote handling businesses combined are performing in line
with expectations, with MSM delivering on its life of plant
contract at Sellafield. As anticipated, Wälischmiller's activity
this year is weighted towards the second half, with some
significant contracts scheduled including the first sale of the
V1000 ("Robbie"). Further new contracts have been secured,
including a contract for Magnox valued at EUR1.5m, which will also
benefit the UK Manufacturing business, and an A1000 power
manipulator contract for a key research centre valued at EUR2.3m.
Excellent progress is also being made on the product development
programme, and the integration of STABER, acquired in October 2016,
is continuing in line with expectations.
Overall, as a result of the contract delay, the Engineering
division is performing below the Board's expectations.
Financial Position
The Group's financial position remains strong. Net debt as at 3
December 2016 was GBP16.9m compared to net cash of GBP8.1m as at 3
September 2016 as a result of the STABER acquisition and the
special dividend paid in October 2016.
Undrawn banking facilities at 3 December 2016 amounted to
GBP32.5m allowing management to continue to review suitable
acquisition opportunities whilst investing in the Group's existing
businesses both in the UK and overseas.
Dividend
Subject to shareholder approval at today's AGM, the proposed
final dividend of 1.9 pence per share for the year ended 3
September 2016 will be paid on 13 January 2017 to shareholders on
the register at close of business on 16 December 2016.
Tim Davies, Chief Executive, commented:
"We have delivered a strong performance in our UK agricultural
operations during the period, supported by improved confidence in
the outlook for our core farming customers. However, this has been
partially offset by market pressures in the US, relating to falling
cattle prices, and the delay of a significant contract in our
engineering business, which is now expected to commence towards the
end of this financial year.
"The performance during the period once again demonstrates the
value of the diversity of our business when operating in
challenging market conditions. We are pleased to report that
overall we are trading in line with the Board's expectations."
The Company expects to issue its interim results for the 26-week
period ending 4 March 2017 on 12 April 2017.
Enquiries:
Carr's Group plc Tel: +44 (0) 1228 554
600
----------------------------- ----------------------
Tim Davies (Chief Executive)
----------------------------- ----------------------
Neil Austin (Group Finance
Director)
----------------------------- ----------------------
Powerscourt Tel: +44 (0) 20 7250
1446
----------------------------- ----------------------
Nick Dibden / Lisa Kavanagh
/ Harriet O'Reilly
----------------------------- ----------------------
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 35 countries around the world.
Its Agriculture division manufactures and supplies feed blocks
for livestock, 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 for
use in the nuclear, petrochemical, oil and gas, pharmaceutical,
process and renewable energy industries, including robotic and
remote handling equipment.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTBLMRTMBTMBLR
(END) Dow Jones Newswires
January 10, 2017 02:00 ET (07:00 GMT)