Agricultural, food and engineering group Carr’s Group yesterday reported a record start to the year despite challenging market conditions.
Shares at the Carlisle-based group, which recently changed its name from Carr’s Milling Industries, rose more than 8% yesterday, after the firm announced a 5.4% increase in pre-tax profits to £10.6million as at February 28, compared to £10.1million in the first half of 2014.
This was against a 2.8% drop in turnover to £208.6million, from £214.7million in the same period last year.
In an interim management statement, the group said it had delivered a record first half performance with an “excellent set of results” and was on track to meet expectations for the full year.
Carr’s said its agriculture division had benefited from an extensive product offering and international activity, posting a positive performance against a backdrop of falling UK farm incomes.
Sales of feed blocks in the UK had seen significant growth and retail sales at the group’s 27 country stores across Scotland, England and Wales had increased.
The group’s flour mills delivered an “excellent performance” with flour sales volumes higher than last year, but revenues lower as a result of weaker commodity prices.
Carr’s said its new mill at Kirkcaldy in Fife had exceeded initial expectations through improved operational efficiencies and an uplift in volumes.
“The strength of the group, with its international operations and diversity of business, has been demonstrated in the delivery of a record performance in the first six months. This result has been achieved despite some challenging conditions in some of the markets within which we operate,” said chief executive Tim Davies.
“Trading in the second half has started well and we remain on track to meet the Board’s expectations for the full year.”
Analyst Nicola Mallard at Investec said: “A solid increase in first half profits and a reiteration of confidence in meeting full year expectations should be well-received by the market, which has been nervous around agri company prospects. The group’s diversity and past investment has stood it in good stead to weather the current market conditions.”