Carr's Group


£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)
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
Share price graph
Balance sheet
Forecast net debt (£m) 29
Forecast gearing ratio (%) 21
Price performance
Actual (1.6) 13.7 (2.7)
Relative* (2.5) 6.7 (13.1)
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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