Carr’s Group (LSE: CARR)

Last close As at 24/02/2024

GBP1.17

0.25 (0.21%)

Market capitalisation

GBP111m

Carr’s Group’s Speciality Agriculture division serves farmers in the UK, Ireland, the United States, Germany, Canada and New Zealand with feed blocks and feed supplements. The Engineering division offers remote handling equipment and fabrications to the global nuclear and oil and gas industries.

The Engineering division order book was up 47% to £60m, assisted by positive medium-term fundamentals from nuclear and defence, while 85% coverage for FY24 suggests the focus is on execution. Speciality Agriculture had an improved Q124 with UK volumes up 20% although cost pressure remains. The group has a new executive management team in place with a strategy to deliver in Engineering and improve in Speciality Agriculture, along with a strong balance sheet to support investment where required.

Latest Insights

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Industrials | Update

Carr’s Group — Cautious optimism

Industrials | Flash note

Carr’s Group — A new team to take the group forward

Industrials | Flash note

Carr’s Group — Progressing to plan

Sector

Industrials

Equity Analyst

David Larkam

David Larkam

Analyst, Industrials

Key Management

  • David White

    CEO

  • Gavin Manson

    CFO

  • Tim Jones

    Chairman

Balance Sheet

Forecast net debt (£m)

N/A

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (0.64) 9.86 (3.7)
Relative (2.93) 6.57 (0.78)
52 week high/low 149.8p/93.8p

Financials

Speciality Agriculture division sales were up 19% in FY23 due to positive pricing, with average feed block prices up 21%, but volumes were weak (down 16%), due to continued drought in the US and extended outdoor grazing in the UK. As a results margins fell from 11.8% to 6.8%. Engineering sales were up 10% with a strong H2 leaving profits flat. The balance sheet improved to net cash of £4.2m, primarily due to the disposal of the Agricultural Supplies division. A further £4m of deferred consideration has been received since the year end.

Y/E Aug Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 124.2 13.0 11.2 9.9 11.8 N/A
2023A 143.2 7.1 7.5 6.1 19.2 N/A
2024E 148.9 12.4 8.8 7.4 15.8 N/A
2025E 154.8 14.2 10.6 8.9 13.1 N/A

Research

Update

Industrials

Carr’s Group — Weather affects H123 performance

Update

Industrials

Carr’s Group — Details of FY22 performance

Update

Industrials

Carr’s Group — Initial look at FY22 performance

Flash note

Industrials

Carr’s Group — Publication of FY22 results delayed

Update

Industrials

Carr’s Group — Coping well with commodity price rises

Update

Industrials

Carr’s Group — Engineering recovery sustained

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