||EPS - Basic
||Market Cap (m)
|amoore70: Anybody know why the share price is going down every day lately? Is there any news that I am not aware of?|
|jeffcranbounre: Carr's is featured in today's ADVFN podcast.
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|pjhutchy: The papers say we could have a cold snap with ice and snow. If it is freezing this winter at least shareholders of carrs milling will have some consolation with share price rises as we know this sort of weather boosts profits due to increased demand for animal feeds as the animals can't dig for worms and bugs because of the solid ground. People will buy in on this weather if it happens its now common knowledge that it will increase animal feed sales.|
|sheyac: What is it with the share price diving? An increase in 30% EPS surely should reflect an increase of 30% in sp?|
|pjhutchy: Carrs millings share price doesn't seem to get affected by market noise and volitality which is nice and relaxing. If you look at the 3 year chart you will see that when market sell offs have occurred carrs milling holds up in the storm well.|
|citymohawk: nice to see posters here: my take, very briefly
Why I like this company: Carrs Milling have a very tidy website and a very tidy business model. They are made of three industries: Food, Engineering and Agirculture. The food business focusses on Flour/Weat generation and I expect acquisitive growth in this area. The engineering business are made of four companies split across accident repairs, metal fabrication and machinary. Finally the Agriculture business is made of 5 different companies split across farming supplies & machinery, animal feeds and agricultural fuel. The board are relatively young and dynamic.
Share Price: The share price seems low on an earnings multiple which seems to be due to its acquisitive nature. The price has been growing since Jan 2010. This is therefore a growth share candidate on the provision that all business are built accordingly. It is trading at half the industry PER and 1/3rd its sector PER!
Fundamentals: The business is currently trading at only 3.18x its earnings and 7.48x its pre tax profits. It's profits have grown 11.59% on last year and interim reports suggest this trend is going to continue. Dividends have grown at 8.33% which is modest compared to its year on year growth since 1998. I am not entirely happy with the debt @ 60% and I would consider selling out of any holding if this debt was to increase.
Put this against industry multiples and you have a share price of £16 a share. Very nice buy.|
|limit up: i am looking at purchasing a new holding in this co,has anybody got any thoughts on where the share price is going???|
|scotch broth: Difficult to know which way to take it isnt it.
My understanding is that Carrs have difficulty passing on high wheat prices to milling customers but farmers accept higher prices for fertilisers.
Looks like the next results should be good-and not reflected in the share price yet.|
April 11, 2008
The Rarity That Is Carr's Milling Industries
By Sally White
Now here's a rare find: a UK-quoted company in the agriculture sector. We're talking Carr's Milling Industries here, an engineer, an animal feeds, fertiliser and flour manufacturer. But it's nothing new. Parts of Carr's have been around for 175 years, looking after Cumbria's farmers.
In a regime of soaring agriculture prices this must be a 21st century market star. And going beyond agriculture, this little conglomerate even has a finger in alternative energy. It is a manufacturer of remote handling equipment for the nuclear industry as well as processing plant for oil, petro-chemicals and water. What a pity it is down among the minnows of the stock market this is just the kind of company into which so many of the new agriculture funds are seeking to put their growing cash piles.
Carr's share rice rose by 102p or 21 per cent on 7th April after it announced a 46 per cent rise in interim profits. Even after that leap in value though, the company was still only capitalised it at a mere £67 million. A look at the company's website would suggest that it is as unaccustomed to receiving investors' attention as the market is to noticing Carr's neither the interim results nor the share price feature. Yet it is right up at the new front-line, benefiting from higher prices for wheat and fertilisers. What's more it's has been able to pass on these price rises to its customers as well as adding engineering products in the energy area to its offering.
"Food inflation is here, and here to stay," was chief executive Chris Holmes's comment on the new state of affairs in agriculture. Carr's Milling has even been able to increase some market share.
The interim story for the period to end March was a pretty good one in all areas bar engineering. All four of the agriculture related activities - animal feed manufacture, fertiliser blending, agricultural retailing and oil distribution - performed well. Operating profit from these activities rose by 56.9 per cent to £4.02 million on revenue up by 45.1 per cent at £118.82 million. On the food subsidiary side operating profit rose by 21 per cent to £1.11 million on revenue up by 57.9 per cent to £39.68m. That was mainly because of flour price increases and a cost reduction programme.
Chairman Richard Inglewood was able to state that "improved farm incomes are benefiting our business. We are selling more products at better margins in the UK and seeing encouraging trends in our overseas agricultural markets. The agriculture division will continue to drive the performance of the Group. A more stable backdrop in food will further enhance profitability. The trends are positive for the second half of this year and beyond."
He added: "Our positioning in speciality products, particularly in the Agricultural market, is driving increases in both margins and sales, whilst food price inflation is enabling us to recapture much of the lost margin in our food business. These factors combine to give us a high degree of confidence in the full year".
The background against which Carr's has done so well includes the 50 per cent increase in milk prices towards the end of last year, which has enabled the farmers to pass on rising animal feed and energy costs.
In the US and in Europe farmers are also able to pass on price rises. Carr's low moisture feed block businesses in the US and Germany were faced with higher prices for molasses, a main ingredient, but were able to pass on most of this added cost. Carr's' market share in this area is growing as it has a joint venture in Germany that is now selling to Russia.
Meanwhile, revenue from fertiliser sales was up 114 per cent on volumes up 60 per cent, as compared to the interim period last year. Carr's has benefited from farmers buying early to secure supply and to offset further price increases. In addition, Carr's leading market position in Scotland and north west England and the success of its niche, slow release environmentally-friendly fertiliser further boosted profitability. Volumes of this high margin product increased by around 50 per cent year on year and it now represents one-sixth of total fertiliser volumes.
With farmers' incomes improving, sales at Carr's 14 retail branches gained by 10 per cent, accelerating in the second quarter.
Revenue from fuel sales increased by 70 percent, partially because of the acquisition of Johnstone Fuels & Lubricants in January 2007.
In its food business Carr's now faces strong and rising grain costs. But the company's cost-cutting programme makes it hopeful that the improving profit trend will continue, however, and it is protecting its position by buying forward where possible.
Even in engineering, which was disappointing this time round, with sales down 14.7 per cent at £3.3 million and profit 16 per cent lower at £0.5 million, Carr's is optimistic. It says that underlying trends remain healthy. The decline in sales and profitability "reflected the part completion of one particularly difficult contract for the supply of vessels". This contract will be completed in the next few months.
House broker Investec raised its profit forecast after the interims to £7.6 million for the year. That still leaves the prospective price earnings multiple at only 9.1 even after the share price rise. Not surprisingly chief executive Chris Holmes and finance director Ron Wood followed up their interim City briefings by promptly taking up their options to buy some more shares.|
|scotch broth: A small recovery since the above,but with the poor outlook a share price of 10 times earnings looks about right i.e.590.
Note that the market was taken by surprise yesterday.This company does not leak information.If the shares start rising dont assume they are doing well.|
Carrs Mill. share price data is direct from the London Stock Exchange