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Carr’s Group (LON:CARR) saw its revenues increase by 16.5% to £403.2 million and a 45.2% rise in pre-tax profit to £16.6 million, as the British agricultural supplies business and industry at large prepares to face an uncertain future in the build up to Brexit.
The strong set of results reflects the company’s improved farm incomes, with US-based feed blocks performing significantly ahead of its expectations, up 17.7%, spurred by a decent recovery in American cattle prices, the company said.
‘We are very pleased to announce a significant improvement in the Group's financial performance for the year, exceeding the Board's expectations, across both the Agriculture and Engineering divisions,’ Chairman of Carr’s Group Chris Holmes said. ‘This performance was largely as a result of investments we made across the business in recent years, in addition to a recovery in our underlying markets.’
‘UK Agriculture continued to perform well reflecting the sustained recovery in farm incomes,’ he said.
‘Our USA feed blocks business continued to benefit from the recovery in USA cattle prices and we made further progress on growing our international feed blocks business,’ he added.
Carr’s international expansion
The success of its feed block business, which supplies food for livestock, has seen the company expand its unit’s geographical footprint, with Carr’s Group signing agreements with leading distributors in New Zealand this year.
The company’s earnings were also bolstered by its acquisition of Suffolk, UK0-based Animax, a producer of market-leading livestock trace element supplementation products, in a deal worth around £8.5 million.
‘Trading for the new financial year has started in line with the Board's expectations,’ Holmes said.
‘We made further progress during the year on our strategic objectives and continue to believe the breadth of our product offering, investments in acquisitions and research, and our international footprint leaves us well positioned for further growth across both our divisions in the medium term.’