Trading Update

RNS Number : 6888S

Carr's Milling Industries PLC

15 September 2010

 



IMMEDIATE RELEASE

15 September 2010

Carr's Milling Industries

Trading Update

Carr's Milling Industries PLC ("Carr's" or "the Group" - CRM.L), the fully-listed agriculture, food and engineering group, announces a trading update for the year end on 28 August 2010.  This follows the Interim Management Statement of 19 July 2010 which covered the 19 weeks ended 10 July 2010.

The final quarter of the financial year saw a strong trading performance by the Group which expects results for the full year to be ahead of market expectations.

Agriculture Division

Agriculture delivered a particularly strong performance from all business sectors during the period.

Fertiliser sales were ahead of expectations due to an excellent growing season in the final quarter of the year.  Sales of added-value products, including Avail, continue to make excellent progress in the market.

AC Burn, acquired on 22 June 2010, has now been successfully integrated into Carrs Billington Agriculture (Sales) Limited and is proving to be an excellent strategic fit for the Group.

Scotmin Nutrition, also acquired on 22 June, is trading well and, during the current financial year, Scotmin manufactured products will be offered through Caltech, Carr's feedblock business that distributes throughout the whole of the UK. 

Agriculture acquisition

Carrs Billington Agriculture (Sales) Limited yesterday completed the acquisition of Forsyths of Wooler Limited ("Forsyths") based in Wooler, Northumberland. Forsyths is engaged in the sale of animal feed and proprietary animal health products and represents a bolt-on acquisition which will enhance the product range and customer base in the North of England.

For the financial year ended 31 July 2009, Forsyths reported revenues of £2.5m on which operating profit was £142,000. The total value of net assets acquired is £310,000.

The acquisitions of AC Burn, Scotmin Nutrition and Forsyths are expected to enhance earnings for the current financial year.

Food Division

The markets in which the Food Division operates continued to be challenging, with industry over-capacity and wheat price volatility.  Wheat prices have risen sharply across the world due to unusual weather patterns.  Carrs Flour business has mitigated some of the impact of the wheat price rises by covering forward wheat requirements where it has forward flour sale commitments.  The business continues to work with its customers to manage risks relating to wheat market volatility.

Engineering Division

As was expected, trading in the Engineering Division was stronger in the second half year than the first.

The nuclear market remained particularly strong during the period, with Bendalls and Wälischmiller successfully completing contracts for the nuclear decommissioning programme at Sellafield, Cumbria, and in Europe. Current indications for the nuclear market are encouraging, with strong current order books both in the UK and Germany, and encouraging enquiry levels for work in 2011 and beyond. 

Revenue and profit at Carrs MSM is down on last year, primarily as a result of a delay in the placing of orders by its principal customer, which the company expects to benefit the current year.

Dividend

The second interim dividend of 6 pence per share is payable on 7 October to shareholders already on the register at 10 September 2010.

Enquiries:

Carr's Milling Industries plc   Chris Holmes (Chief Executive) Ron Wood (Finance Director)	01228-554 600
Bankside Consultants Limited Simon Bloomfield Rose Oddy	020-7367 8861 020-7367 8863

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