Carr’s posts half year profits ahead of expectations

Pre-tax profit remained unchanged at £5.3 million while revenues were down 8% to £161.3 million compared to the same period last year. Agriculture trading made a pre-tax profit of £3.2 million compared to £3.5 million in 2009 while revenues were down 6% at £97.8 million; severe winter weather helped boost profit on feed blocks and fuel. As expected pre-tax profits were considerably stronger for agriculture manufacturing more than doubling to £1.1.1 million. Although revenue fell 14% to £22.7 million, the company credited the profit improvement to price stability for fertiliser. The acquisition of Walischmiller Engineering in March 2009 helped nudge up pre-tax profit to £0.4 million for Carr's engineering division while profit margins for the food sector moved down 37% year-on-year due to increasing overcapacity in flour milling and lower income from feed wheat. CEO Chris Holmes said: "Carr's has continued to demonstrate its resilient qualities and strong management by delivering these results in markets which remain competitive across the business and in a poor economic and financial environment. Unlike last year, second half trading in the agriculture manufacturing segment will not be significantly affected by the sale of fertiliser inventories at below historic cost as a result of a sharp fall in fertiliser prices following a period of rapid increases in prices. The board therefore expects second half group pre-tax profit to be appreciably higher than last year's second half result."