Interim Results For the 26 weeks ended 2 March 2019

"Continued growth in challenging markets"

Carr's (CARR.L), the Agriculture and Engineering Group, announces its results for the 26 weeks ended 2 March 2019.

Financial highlights

Net debt² of £23.3m (£15.4m net debt at 1 September 2018)

Commercial highlights

Agriculture

• Robust performance in Agriculture despite challenging market conditions
• Warm weather in the UK and USA, in marked contrast to the same period in 2018, impacted volumes in Agriculture
• Reduced volumes in Agriculture mitigated through improved efficiencies, operating cost controls and effective procurement
• USA feed block volumes, including joint ventures, up 5.6% driven by strong performance from new low moisture feed block plant at Shelbyville, Tennessee
• Integration of Animax progressing well, with good progress in new product development

Engineering

• Strong performance in Engineering, significantly ahead of prior year
• Significant improvement in UK Manufacturing, driven by a strengthened management team and improved manufacturing efficiencies
• Good performance in USA Engineering and strong order book following significant MSIP® contracts won in 2018
• Significant funding awarded by the US Department of Energy in December 2018 to develop passive cooling technology
• Major USA $8.5m contract win in Remote Handling business strengthens confidence in medium term performance of the business

Outlook

• The Board's expectations for the full year remain unchanged

1 Adjusted results are after adding back amortisation of acquired intangible assets and non-recurring items including acquisition costs

2 Further details of net debt can be found in note 12

Tim Davies, Chief Executive Officer, commented:

"The Group delivered a good performance during the first half of the financial year and trading remains in line with the Board's expectations for the full year. During the period, our Agriculture division was impacted by challenging external market conditions, including unseasonably mild weather in marked contrast to the same period in 2018, and continued uncertainty in the UK around Brexit. However, we were able to mitigate the effect of these challenges through improved efficiencies, operating cost controls and better procurement.

I am pleased to report that our Engineering division had a strong start to the year as a result of good performances in our UK Manufacturing and USA Engineering businesses.  We are now seeing strong order books across the division, driven by contract wins, and we have improved manufacturing processes and strengthened our management teams.

Trading in the second half of the year has started in line with expectations, and the Board's outlook for the full year remains unchanged.  We also remain confident in the medium term prospects of the Group as we continue to invest across our divisions, expand our product offering and grow our international footprint."

Enquiries:

About Carr's Group plc:

Carr's is an international leader in manufacturing value added products and solutions, with market leading brands and robust market positions in Agriculture and Engineering, supplying customers in over 50 countries around the world.

Its Agriculture division manufactures and supplies feed blocks and supplementation products for livestock, distributes farm machinery and runs a UK network of rural stores, providing a one-stop shop for the farming community. Its Engineering division designs and manufactures bespoke equipment and provides technical engineering services into the nuclear, petrochemical, oil and gas, pharmaceutical, process and renewable energy industries, including robotic and remote handling equipment.

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