Full Year Trading Update (unaudited) For the year ended 3 September 2022
21 February 2023
“A strong performance in a transformational year for the Group”
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Carr's (CARR.L), the Speciality Agriculture and Engineering Group, provides a trading update (unaudited) for the year ended 3 September 2022. This is not a preliminary statement of annual results. This update focuses on continuing operations in Speciality Agriculture and Engineering, following the disposal of the Agricultural Supplies division after the year end. The Agricultural Supplies division has been classified as a discontinued operation.
Financials (continuing operations)
| Adjusted1 | FY22 | FY21 | +/- |
| (restated)3 | |||
| Revenue (£m) | 124.2 | 120.3 | +3.3% |
| Adjusted1 operating profit (£m) | 11.9 | 11.1 | +7.5% |
| Adjusted1 profit before tax (£m) | 11.2 | 10.4 | +8.0% |
| Adjusted1 EPS (p) | 10.0 | 10.1 | -1.0% |
| Net debt2 (£m) | 14.0 | 10.0 | -40.8% |
| Statutory | FY22 | FY21 | +/- |
| (restated)3 | |||
| Revenue (£m) | 124.2 | 120.3 | +3.3% |
| Operating profit (£m) | 8.2 | 8.2 | +0.4% |
| Profit before tax (£m) | 7.6 | 7.5 | +0.4% |
| Basic EPS (p) | 6.4 | 6.2 | +3.2% |
Highlights
- Revenue from continuing operations increased 3.3%
- Adjusted profit before tax from continuing operations increased 8.0%
- Reported operating profit from continuing operations in line with prior year at £8.2m
- Agricultural Supplies business sold at market comparable 6.4 x FY21 EBITDA
- Post year-end disposal leads to net cash on balance sheet
- Refreshed Board for 2023
- Group now focused on higher margin, differentiated, international businesses
Current Year Outlook
Trading in the early part of the current financial year was strong, but became more challenging in November and December 2022, with lower volumes of feed blocks sold in both the USA and UK markets and very competitive pricing for tenders in the Engineering division. At this stage of the year, the Board remains of the view that trading for the full year will be in line with its expectations and will provide a further update at the half year.
1 Adjusted results are consistent with how business performance is measured internally and are presented to aid comparability of performance. Adjusting items include goodwill impairment, amortisation of acquired intangible assets, gain on acquisition of joint ventures and adjustments to contingent consideration
2 Excluding leases
3 Prior year restatement recognised in relation to the timing of recognition of revenue from customer contracts within the Engineering division, which increased FY21 revenue by £565,000 and reduced FY21 adjusted profit before tax by £41,000
Enquiries:
| Carr's Group plc Peter Page David White | Tel: +44 (0) 1228 554 600 |
| FTI Consulting Richard Mountain/Ariadna Peretz | Tel: +44 (0) 20 3727 1000 |
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 around the world. Carr's operates a business model that empowers operating subsidiaries, enabling them to be competitive, agile, and effective in their individual markets whilst setting overall standards and goals.
The Speciality Agriculture division manufactures and supplies feed blocks, minerals and boluses containing trace elements and minerals for livestock.
The Engineering division manufactures vessels, precision components and remote handling systems, and provides specialist engineering services, for the nuclear, defence and oil & gas industries.