Carr's Group

LN: CARR

£137m market cap

149p last close

Carr’s Group’s Agriculture division serves farmers in the North of England, South Wales, the Welsh Borders and Scotland, the US, Germany and New Zealand. The Engineering division offers remote handling equipment and fabrications to the global nuclear and oil and gas industries.

Investment summary

Carr’s Group delivered a 7.0% increase in adjusted profit before tax during FY19 despite adverse weather conditions in both the US and the UK, which affected demand for feed blocks, animal feed and fuel. The profit growth was attributable to a strong performance from the Engineering division. We leave our FY20 and FY21 estimates broadly unchanged, nudge our indicative valuation up 6p to 190p/share and present FY22 estimates for the first time.

Y/E Aug
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 403.2 19.9 17.7 15.2 9.8 9.1
2019A 403.9 22.1 18.9 15.6 9.6 8.5
2020E 434.6 22.8 19.4 16.2 9.2 10.9
2021E 439.6 23.2 20.0 16.8 8.9 6.1
Industry outlook

Peter Page will join as a non-executive director on 1 November, becoming non-executive chairman in January 2020. Peter has extensive international business experience and knowledge of the agricultural sector, having been CEO of Devro where he transformed the company’s manufacturing capabilities on an international scale.

Last updated on 14/11/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) 29
Forecast gearing ratio (%) 21
Price performance
%
1m
3m
12m
Actual 7.2 2.8 (5.7)
Relative* 6.0 (0.2) (9.4)
52-week high/low 173.0p/130.0p
*% relative to local index
Key management
Chris Holmes Chairman
Tim Davies CEO
Neil Austin FD

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