The advantages of having a broad geographical footprint and flexible business structure really shone through in full-year results from Carr's Milling Industries (CRM). Revenue might have fallen 8 per cent, but pre-tax profit grew by the same amount as the cost of sales and distribution fell even faster.
In agriculture, the UK’s mild winter dampened demand for fuel and resulted in lower sales of feed, as farmers were able to use home-grown forage. However, this was partly offset by record sales of feed blocks in the US as a result of the severe weather conditions across the Atlantic. Sales of Carr's higher-margin dairy cow supplement, AminoMax, grew 32 per cent, and other similar value-added feeds also did well, helping boost profitability.
In the food division, lower wheat prices hit sales, but profit nearly quadrupled to £2.3m. That's because of a newly-commissioned mill at Kirkcaldy, which is delivering a step-change in operational efficiency. Finally, the engineering business had a tough year, due to a contract delay, but continued to invest. This year will be tough too, but Carr's expects to win significant business in July from the decommissioning of nuclear plants in Sellafield.
Investec expects pre-tax profits to rise to £17.5m this year, giving EPS of 136p.
| CARR'S MILLING INDUSTRIES (CRM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,653p | MARKET VALUE: | £147m | |
| TOUCH: | 1,635-1,670p | 12-MONTH HIGH: | 1,926p | LOW: 1,395p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 895p | NET DEBT: | 27% | |
| Year to 30 Aug | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 298 | 7.4 | 51.9 | 24 |
| 2011 | 373 | 10.0 | 77.0 | 26 |
| 2012 | 404 | 13.1 | 98.2 | 29 |
| 2013 | 468 | 15.4 | 123.9 | 32 |
| 2014 | 429 | 16.6 | 127.8 | 34 |
| % change | -8 | +8 | +3 | +6 |
Ex-div: 18 Dec Payment: 16 Jan | ||||
