£142.3m market cap
154p 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 trading update for the first 18 weeks of FY20 notes that while trading in Agriculture was lower than expected, primarily because of the mild UK weather, the strong Engineering pipeline should enable the group to meet management expectations for the year. Management also notes that a greater weighting than normal to the second half is likely. We leave our estimates unchanged and reiterate our indicative valuation of 190p/share.
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 | 10.1 | 9.4 |
| 2019A | 403.9 | 22.1 | 18.9 | 15.6 | 9.9 | 8.8 |
| 2020E | 434.6 | 22.8 | 19.4 | 16.2 | 9.5 | 11.2 |
| 2021E | 439.6 | 23.2 | 20.0 | 16.8 | 9.2 | 6.3 |
Industry outlook
Our estimates, which were broadly unchanged following the results, show profit improvements in each of the divisions collectively driving a 3% increase in adjusted PBT during both FY20 and FY21. This is based on the probable expansion of the grazing area in the US following the prolonged rain, increased penetration of the Canadian market and enhanced distribution of Animax’s products through the Agriculture division’s existing sales channels including into export markets and the strength of the Engineering order book.
Last updated on 16/01/2020
Sector |
|---|
| Industrials |
Share price graph
Balance sheet |
|
|---|---|
| Forecast net debt (£m) | 29 |
| Forecast gearing ratio (%) | 21 |
Price performance
% |
1m |
3m |
12m |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Key management |
|
|---|---|
| Chris Holmes | Chairman |
| Tim Davies | CEO |
| Neil Austin | FD |
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