UK farming faces two more years of pain says Carr’s boss –

7 months ago Comments Off on UK farming faces two more years of pain says Carr’s boss –

Engineering profits slid 58pc during the first-half to £1.3m. Carr’s is confident things will improve in the second half of the financial year. Carr’s German-based remote-controlled robotics business, Walischmiller, is seeing evidence of a recovery in the UK nuclear industry, having won several contracts from Sellafield.

The flour milling operations, based in Kirkcaldy, Scotland, were impacted by the fallout from the flooding caused by Storm Desmond in December. A feed mill based in Lancaster, and one of its key customers, McVitie’s in Carlisle, suffered interruptions but Carr’s was fully covered by insurance. Revenue from the food business fell 14pc to £35.7m, but profits edged up to £1.6m.

Carr’s made pre-tax profits of £10.5m in the six months to February, down from £10.6m in the same period last year.

Turnover was 9.4pc lower, at £189.1m, but despite the fall in profits and revenues, Carr’s is increasing the interim dividend by 3pc to .95p.

All eyes in the second half

Management are confident they are on target to hit full-year market estimates, and broker Investec is forecasting revenue of £392m, and pre-tax profits flat at £17.5m, giving 13.5p in earnings per share for the year to the end of August.

Carr’s is clearly facing a tough UK farming market, and the engineering business is in limbo as it rebuilds the order book from the oil and gas downturn. That said, investors aren’t being asked to overpay for the shares. They are rated on a fairly conservative PE ratio of 11. The annual dividend is forecast to increase by 4pc, to 3.8p, giving an indicative yield of 2.5pc.

UK farming faces two more years of pain says Carr’s boss –