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.
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David White
CEO
Gavin Manson
CFO
Tim Jones
Chairman
Forecast net debt (£m)
N/A
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 4.6 | 27.6 | (0.6) |
Relative | 4.1 | 27.5 | (5.0) |
52 week high/low | 149.8p/93.8p |
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 | 11.4 | N/A |
2023A | 143.2 | 7.1 | 7.5 | 6.1 | 18.4 | N/A |
2024E | 148.9 | 12.4 | 8.8 | 7.4 | 15.2 | N/A |
2025E | 154.8 | 14.2 | 10.6 | 8.9 | 12.6 | N/A |