Once again, Carr’s Group PLC (LON:CARRC) results demonstrate how diversification gives resilience to cyclicity in any one market. This time outperformance in UK Agriculture, supported by improving farmer confidence, offset weak demand in the US for feed blocks caused by a surplus of cattle following a period of restocking. This drove a 5% increase in pre-exceptional PBT to £8.9m. Our estimates already include downward revisions for prolonged weakness in US feed block demand and contract delays in UK manufacturing activity, so we leave both our estimates and indicative valuation of 158p/share unchanged.
PBT up for H117 as UK farmers gain in confidence
Group H117 revenues rose by 15% year-on-year to £176.8m, reflecting higher commodity prices and higher volumes in the UK Agricultural businesses combined with higher than expected activity levels in the Engineering Remote Handling businesses. Pre-exceptional PBT grew by 5% to £8.9m. Growth in the UK Agriculture and Remote Handling activities offset weak demand for feed blocks in the US resulting from a surplus of beef cattle following extensive restocking and a significant contract delay in the UK Manufacturing part of the Engineering division.
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