Last close As at 05/08/2026
GBP1.32
▲ 1.00 (0.76%)
Market capitalisation
GBP69m
Research: Industrials
FY23 trading has continued according to the early August update, demonstrating the benefit of two unrelated activities at Carr’s Group: the Engineering division’s strength countering the weakness seen in the Speciality Agriculture business. Both have underlying longer-term growth attractions to drive earnings, along with the recovery potential in the agriculture end-markets.
Carr’s Group |
Progressing to plan |
Trading update |
General industrials |
11 October 2023 |
Share price performance
Business description
Analyst
Carr’s Group is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||||||||||||
FY23 trading has continued according to the early August update, demonstrating the benefit of two unrelated activities at Carr’s Group: the Engineering division’s strength countering the weakness seen in the Speciality Agriculture business. Both have underlying longer-term growth attractions to drive earnings, along with the recovery potential in the agriculture end-markets.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
08/21** |
120.3 |
10.4 |
10.1 |
5.0 |
13.1 |
3.8 |
08/22 |
124.2 |
11.2 |
10.0 |
5.2 |
13.2 |
3.9 |
08/23e |
145.2 |
8.0 |
6.7 |
5.2 |
19.8 |
3.9 |
08/24e |
151.0 |
9.7 |
7.8 |
5.3 |
17.0 |
4.0 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **Restated to treat Agricultural Supply as a discontinued business.
FY23 has finished in line with the board’s expectations, which were set out in the 4 August update. The trends reported have continued, with a strong performance in Engineering but continued softness in the Speciality Agriculture businesses due to lower feed block volumes in the UK and US. Central costs will also be marginally lower. Net cash (pre-leases) stood at £4.2m with the financial position assisted further subsequently by significant customer receipts, with a further £4.0m related to the disposal of the Agricultural Supplies division expected in later this month. FY23 results are due in mid-December.
FY24 looks set to reflect similar trends to FY23. The Engineering division order book finished the year at a record £63m suggesting 60-70% cover for the FY24 financial year (August 2022: £41m, FY22 sales £46.2m), providing confidence for growth in FY24 and a positive outlook into FY25. Speciality Agriculture is seeing continued weak market conditions due to the drought in the US and elevated pricing in the UK market. Management remains confident that this will reverse and the business return to growth in the medium term. FY24 will also benefit from a full year of reduced central costs.
We make no changes to the valuation as per the August update note.
|
|
Research: Healthcare
Pixium Vision announced that safeguard proceedings have been opened by the Commercial Court of Paris. Despite the company’s best efforts in seeking financing options to extend its funding runway, it has determined that it may not be able to satisfy its financial obligations after the end of November 2023 without the protection of such proceedings. Given its liquidity risk and the absence of new financing to date, Pixium requested that the Commercial Court of Paris open safeguard proceedings. As the Court has now appointed other parties (SCP Abitbol & Rousselet and Selarl FHB) as co-administrators with supervisory responsibility for Pixium, we estimate the likelihood of any material residual value remaining attributable to the common equity holders of Pixium Vision following the court proceedings as highly speculative. As such, we are withdrawing our estimates and forecasts.