Carr’s (CARR.L), the Speciality Agriculture and Engineering Group, announces its Interim Results for the 26 weeks ended 4 March 2023.
Financial highlights
| | Adjusted1 H1 2023 | Adjusted1 H1 2022 (restated)2,3 | +/- |
|---|---|---|---|
| Revenue (£m) | 79.8 | 64.5 | +23.6% |
| Adjusted1 operating profit (£m) | 5.8 | 7.5 | -23.4% |
| Adjusted1 profit before tax (£m) | 5.5 | 7.2 | -23.3% |
| Adjusted1 EPS (p) | 4.9 | 6.1 | -19.7% |
| Net (cash)/debt4 (£m) | (8.6) | 29.9 | |
Statutory H1 2023 | Statutory H1 2022 (restated)2,3 | +/- | |
| Revenue (£m) | 79.8 | 64.5 | +23.6% |
| Operating profit (£m) | 5.1 | 8.0 | -35.8% |
| Profit before tax (£m) | 4.9 | 7.7 | -36.2% |
| Basic EPS (p) | 4.4 | 6.8 | -35.3% |
| Interim dividend (p) | 1.175 | 1.175 |
1 Adjusted results are consistent with how business performance is measured internally and are presented to aid comparability of performance. Adjusting items are disclosed in note 8.
2 Prior period restated to provide comparable information for continuing and discontinued operations following the classification of the Carr’s Billington Agricultural business as a disposal group. Further details of results from discontinued operations and net assets relating to the disposal group can be found in note 9.
3 See note 19 for an explanation of the prior period restatements recognised in relation to the recognition of revenue from customer contracts within the Engineering division.
4 Excluding leases. Further details of net (cash)/debt can be found in note 13.
Highlights
- Revenue increased 24% on prior year, reflecting raw material cost recovery in Speciality Agriculture division
- H1 profits impacted by volumes in Speciality Agriculture and contract timing in Engineering
- Record Engineering order book of £57 million at 28 April, up by 30% from start of the period
- Phasing in engineering work will be favourable in H2, with strong profit generation in the division expected
- Net cash position following receipt of £24 million on completion of disposal of Agricultural Supplies division
Outlook
The outlook for Engineering in the second half of FY2023 is positive. The division has several key contracts coming through in fabrication and robotics, allied to an improved position for the precision engineering business buoyed by activity in oil and gas. These factors will offset the low summer season for Speciality Agriculture which also continues to manage historically high input costs. Acknowledging the challenges ahead, the Board anticipates full year adjusted profit before tax of c.£10m and remains confident in the prospects of both divisions in the medium term.
Peter Page, Chief Executive Officer, commented:
“A strong order book in robotics, fabrication and precision engineering, alongside completion of a long-running defence contract in H1, provides the prospect of a considerable step up in profits from the Engineering division for H2. This will offset the quieter summer months for the Speciality Agriculture division, which is managing a period of unprecedented input costs. The outlook for 2024 and 2025 is encouraging in both divisions.”