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Agriculture, food and engineering group Carr’s said it expects a pick up in activity in its UK farming business over the coming year as it reported a dip in profits growth after warning over US cattle prices.
In interim results for the six months to the end of March, the group reported a 4.8 per cent rise in profits to £8.9m, while revenues climbed 15 per cent to £176.8m on the back of strength in its British agriculture business. Carr’s said its UK farm division had “outperformed” the market and its growing market share would continue into the second half of the year.
Still, it said “significant pressure” from falling US cattle prices would hit its US business. Carr’s interim dividend remained unchanged at 0.95p.
The company’s engineering business would also be hit by a delay to a UK manufacturing contract.
Tim Davies, chief executive said:
While still at an early stage, we are seeing initial signs of improving confidence among our core UK farming customers resulting in a strong first half performance in our UK Agriculture business, which we expect to continue in the second half.
We remain committed to delivering organic revenue growth, supported by value enhancing acquisitions and, further to the trading update released on 30 March, the Board’s expectations for the full year remain unchanged.