Carr's Group flags revenue growth, announces board changes

21st Feb 2023 07:15

(Sharecast News) - Carr's Group reported a 3.3% increase in revenue from continuing operations in a trading update on Tuesday, to £124.2m, and announced a number of changes to its board.

The London-listed agriculture and engineering specialist said its adjusted profit before tax from continuing operations increased 8% for the 12 months ended 3 September, to £11.2m, while reported operating profit from continuing operations was broadly in line with the prior year at £8.2m.

It noted the sale of its agricultural supplies business at a "market comparable" 6.4x 2021 EBITDA, with the post year-end disposal leading to net cash on its balance sheet.

Adjusted earnings per share were down 1% at 10p, while basic earnings per share managed gains of 3.2% to 6.4p, as the company's net debt widened 40.8% to £14m.

The board said the group was now focussed on "higher-margin, differentiated, international" businesses.

Looking at its board of directors, Carr's announced a number of immediate changes, with Tim Jones joining as non-executive chair.

Peter Page was becoming the chief executive officer, relinquishing the role of executive chair, while David White was joining the board as chief financial officer.

That meant Neil Austin was standing down as the Carr's Group CFO, and from the board.

"Trading in the early part of the current financial year was strong, but became more challenging in November and December, with lower volumes of feed blocks sold in both the US and UK markets and very competitive pricing for tenders in the engineering division," the board said in its statement on Tuesday.

"At this stage of the year, the board remains of the view that trading for the full year will be in line with its expectations and will provide a further update at the half year."

Reporting by Josh White for Sharecast.com.