Carr's feeds off business spread

British farming incomes are still under pressure as wheat and dairy prices fall, but Carr's grew agricultural feed volumes year-on-year. Although group revenues dipped by 3 per cent on fluctuating commodity prices, that didn't come at the expense of profitability. The group's agriculture division did well in the US, where a recovering beef industry generated better feed block sales.

In its food business, Carr's three UK flour mills performed strongly. Flour sales volumes were higher year-on-year, but revenues fell in line with depressed wheat prices. The engineering division struggled in the first half, but the company attributed this to its project and contract mix. Nuclear work makes up the bulk of these operations, rather than traditional oil and gas services, so exposure to oil price volatility has been minimal.

The group also underwent a 10-for-1 share split in January which chief executive Tim Davies says improved liquidity and pricing for the company’s retail shareholders.

Analysts at Investec expect pre-tax profits of £17.5m for the current financial year, giving EPS of 13.6p. That’s up from £16.6m and 12.6p respectively.