Full Year Results For the year ended 31 August 2024 and FUTURE STRATEGY

Carr’s Group plc (CARR.L), (‘’Carr’s, the ‘’Company’’, or the ‘’Group’’) the Agriculture and Engineering Group, announces its audited results for the year ended 31 August 2024.

Financial Highlights

Results for the year are presented on two bases: Table 1 below shows Like for Like (‘LFL’) results reflecting the Group as it traded throughout FY24 and is presented on a basis consistent with that disclosed as Continuing Operations in the Group’s FY23 reporting. Table 2 below shows FY24 Continuing Operations reflecting Continuing Operations as disclosed in the Group’s FY24 statutory reporting (which categorises the Engineering Division and the Afgritech agriculture business as Discontinued).

LFL Highlights

• Engineering Division sale process is ongoing and progressing positively
• LFL Revenue growth of £3.9m (+2.7%): Agriculture £88.0m, (-6.0%), Engineering £60.1m, (+18.8%)
• Adjusted Operating Profit of £8.9m, (+12%); Agriculture £4.7m, (-17.1%), Engineering £7.2m, (+36.5%)
• Significant Adjusting Items of £14.6m, (of which £7.4m non-cash) reflecting transformation of the Group
• Net Cash of £4.5m (FY23: £4.2m) reflects continued cash generation of both divisions
• Final dividend of 2.85 pence per share bringing full year dividends to 5.2p per share (FY23: 5.2p per share)

1.   Focused Strategy for specialist Agriculture

The Group will manufacture and sell research proven supplements for extensive grazing markets globally and deliver future value through

• Improving operating margins through existing operations
• Deliver profitable growth in core existing business
• Expand into new and growing extensive grazing markets
  

2.   Market Recovery

Gradual recovery from economic and climatic factors evident in existing core markets:

• UK: volume increased progressively to 12% growth from FY23 as input prices fell from recent highs
• US: gradually improving conditions particularly in northern states
• Positive momentum has continued into FY25

3.   FY24 Trading: Agriculture

4.   Business Improvements

Decisive action to address underperforming businesses:

• NGS: loss-making plant in Nevada, US (FY24: £0.3m operating loss) closed in December 2023
• Afgritech: Non-core and loss-making New York, US business (FY24: £0.5m operating loss) closed in October 2024 and assets sold
• New Zealand: sub scale loss making New Zealand business (FY24: £0.3m operating loss) closed post year end and trade switched to distributor on profitable basis
• Animax: Implementation of turnaround plan for loss making (FY24: £0.8m operating loss) business underway

5.   Central Costs

• Central costs of £3.0m (FY23: £3.0m), increase in H1 offset by YOY reduction of 19% in H2
• Simplification of non-core activities, including investment property disposals and pension scheme de-risking, underway
• Significant reduction in central costs expected in FY25 with Engineering Division disposals and completion of the actions noted above

6.   Adjusting Items

• £6.0m of (current and future) cash costs driven by restructuring costs and historical pension liabilities
• Non-cash charge of £3.0m driven by asset impairments at Animax

7.   Net Cash

• Net cash (total Group) of £4.5m held at year end (FY23: £4.2m). Net cash (continuing operations) of £8.0m at year end with cash generated from operating activities in continuing operations of £4.2m (FY23: £(2.9)m) generated in the year

8.   Dividends

• Dividends of £6.0m paid in the year (FY23: £4.9m)
• Final dividend proposed of 2.85p per share bringing total for year to 5.20p per share (FY23: 5.20p per share)

Outlook

The immediate prospects for the Agriculture Division have been enhanced by the arrival of a new leadership team and remedial actions taken on under-performing businesses during FY24. The long-term outlook for the division remains attractive with our focus now on our range of existing products, further development of that portfolio and entrance into new geographies. Any benefit from reduced drought areas and the US beef cycle turning will further complement these opportunities.

Management is confident that the sale of the Engineering Division will drive optimal shareholder value and expect strong trading in recent years to continue up to sale completion.

Quote: David White (Chief Executive Officer)

“I am confident that the transformative changes initiated during the year, including the process to realise value for the Engineering Division and the refreshed Agriculture strategy, will deliver value for shareholders in both the immediate and long-term. Our focus is now on our core Agriculture businesses, where our product portfolio provides a foundation from which to grow our share in existing and new markets.”

Quote: Tim Jones (Non-Executive Chairman)

“With the process to realise value for the Engineering Division proceeding well, the Group remains committed to optimising value for our shareholders in the short and longer term. We are now fully focussed on leveraging our market-leading products, increasing efficiencies across our operations, advancing our positive impact on the environment and delivering exceptional value to our customers across the Agriculture Division.”

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 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.

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