Carr's full-year profit rises, dividend hiked

Agriculture and engineering group Carr’s posted a rise in pre-tax profit for the year ended 3 September, despite a drop in revenue, thanks in part to a strong showing in the agriculture division.

Pre-tax profit rose 2.8% from the previous year to £14.1m, while operating profit was up 5.6% to £12.8m and earnings before interest, taxes, depreciation and amortisation were 6.6% higher at £16.5m.

However, revenue fell to £314.9m from £331.3m.

Operating profit in the agriculture unit was 8.6% stronger at £10.3m, driven by a strong performance in the USA feedblock business. Segmental revenue was down 4.4% to £284.8m.

In engineering, operating profit fell 4.9% to £2.5m due to contract delays, with revenue down 10.2% to £30.1m.

Carr’s proposed a final dividend of 1.9p per share, up 2.7% and taking the total for the year to 3.8p from 3.7p the year before. This was excluding the special dividend of 17.54p.

Chairman Chris Holmes said: "In what has been a challenging year in the sectors in which we operate, I am pleased to report that the Group has delivered a solid result. At the end of the year we announced the disposal of our Food division to Whitworths, which following a £16m special dividend to shareholders enables us to focus on growing our two remaining, higher margin, divisions.

"Subsequent to the year end we announced the acquisition of German engineering business STABER GmbH, which will be strategically beneficial to our existing German engineering business and in line with our intention to invest in specialised IP and innovative businesses.”

The company said the current financial year has kicked off in line with its expectations and it will continue to review suitable acquisition opportunities.

At 0948 GMT, Carr’s shares were up 2.5% to 142p.