"A robust half year performance, medium term outlook remains positive"

Carr's (CARR.L), the Agriculture and Engineering Group, announces its results for the six months ended 4 March 2017.

Financial highlights

• Revenue up 15.3% to £176.8m (H1 2016: £153.4m*)
• Operating profit (before exceptional items) up 0.9% to £7.5m (H1 2016: £7.5m*)
• Operating profit (after exceptional items) down 7.6% to £6.9m (H1 2016: £7.5m*)
• Profit before tax (before exceptional items) up 4.8% to £8.9m (H1 2016: £8.5m*)
• Profit before tax (after exceptional items) down 2.6% to £8.3m (H1 2016: £8.5m*)
• Basic EPS down 3.0% to 6.4p (H1 2016: 6.6p*)
• Adjusted EPS¹ up 6.0% to 7.1p (H1 2016: 6.7p*)
• Interim dividend held at 0.95p (H1 2016: 0.95p)
• Net debt of £11.5m (£8.1m net cash at 3 September 2016)

*continuing operations

• Strong performance in UK Agriculture, outperforming the market and continuing to grow market share. Greater confidence in UK agriculture expected to continue into H2
• Rebound in UK machinery sales, up 43.4% on H1 2016, and retail business performed well, benefiting from store improvement programme
• Significant pressure from falling cattle prices impacting USA feed block sales
• Full year performance in Engineering to be impacted by previously announced contract delay in UK Manufacturing
• Remote handling business performing ahead of expectations and bolstered by a strong order book, demonstrating the potential in this market
• Integration of STABER acquisition progressing well, with plans to extend premises in Markdorf, Germany

Tim Davies, Chief Executive Officer, commented:

"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. However, our USA feed block business continues to be impacted by the fall in cattle prices.

Our Engineering business has been affected by a delay to a significant UK Manufacturing contract, which will impact our full year performance, but we have a strong pipeline in UK manufacturing and our remote handling business is performing ahead of expectations.

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."

1 Adjusted EPS is after adding back amortisation of intangibles and non-recurring items e.g. acquisition related costs

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 35 countries around the world.

Its Agriculture division manufactures and supplies feed blocks for livestock, 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 for use in the nuclear, petrochemical, oil and gas, pharmaceutical, process and renewable energy industries, including robotic and remote handling equipment.