Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Carr's Group: Sellafield Contract Underpins Engineering Growth

Published 07/19/2016, 06:51 AM
Updated 07/09/2023, 06:31 AM
CARRC
-

Carr’s Group PLC (LON:CARRC) trading update confirms that management’s strategy of innovation, investment and internationalisation is able to counter challenges in the UK dairy market. A new £48m framework agreement from Sellafield underpins growth for the UK Engineering business despite continued weakness in the oil and gas sector. FY16 trading is in line with management expectations and we leave our estimates and indicative valuation of 197p unchanged.

Carr’s Group

Diversification is protection from market challenges

The Agriculture division is performing better than management expected as excellent volume growth in US feedblock sales, supported by previous investment, is combatting continued weakness in the UK agriculture, especially dairy, sector. Retail sales in the Country Store network are up vs FY15 as are the volumes of oil sold. This outperformance balances underperformance in the Engineering division where utilisation levels in the UK manufacturing business were low because of weakness in the oil and gas sector and customer-triggered delays in starting some of the new nuclear projects. The Food division performed well. Previous investment in a new mill in Kirkcaldy and improvements at Silloth are helping it win new customers while expanding the activity undertaken for established ones.

To read the entire report Please click on the pdf File Below

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.