Carr's Share Discussion Threads

[redalert] 29/3/2023 07:41

trading restored RNS'd

[kinwah] 28/3/2023 10:46

This is such an unusual situation that I suspect the FCA might have other concerns. CARR had been an anomaly as a listed company in that it derived over 70% of its revenue from non-wholly owned businesses. The issue with the audit of Carrs Billington Operations highlighted that a substantial part of the business was not under CARR's control. I am no expert on the listing rules but generally, listed companies need a substantial majority of the company's operations under their control. Carr's escaped the Stock Exchange/FCA taking much notice of the company's unusual corporate structure for over 20 years. Now the FCA will be looking at the application for a restoration of the listing and maybe considering that CARR needs to issue a new listing document. If so that would entail considerable expense and delay. It may even be the case that the company could switch to AIM which would not have been possible previously under the AIM rules due to the structure of Carrs Billington. I really hope CARR's advisers and the FCA can sort the situation out swiftly for the sake of shareholders.

[1tx] 27/3/2023 10:48

The only reason I can see for the delay in relisting is that we are awaiting Companies House listing the new accounts on their site so we are in compliance with UK Company Law.As we are presently listed as accounts overdue until new accounts are posted.It normally takes about 5 working days from receipt of new accounts by Companies House to their listing.I see nothing in the new accounts & in particular audit opinion that would cause the FCA to refuse listing.

I see Edisons SOTP valuation of Carr's as very generous in todays market.Happy to be wrong but I feel a 10 times net profit valuation of engineering & 12 times valuation for speciality agricultural products more likely less head office costs,plus net cash.

[somethingsup] 27/3/2023 09:59

I hope they are correct on their SOTP valuation or somewhere close.
I think we deserve some good fortune.

Hope the FCA gives the OK for trading even though I’m rather nervous?!

[cwa1] 27/3/2023 08:15

Edison(paid for) research on results:-

[1tx] 23/3/2023 16:03

Did we get £24.7m net for Carrs Billington;or is this being further reduced post agreement?I have some concerns we are retaining liability for the defined benefit pension plan of the sold group,although in surplus until we can arrange a buy out of the plan this could be a financial millstone.

I do not see the retained group being capable of maintaining a divi at the present 5p+ level and supporting investment in high tech engineering businesses.I can see it in future being cut or rebased as they like to put it to at least a two times cover.

Although perhaps not as bad as I feared I struggle to see a valuation over 100p & then only if the interim figures show progress.Fortunately my average purchase price is quite a bit below the "heady" 140/150p level it has traded in recent years but I still expect a haircut!I think the market and myself has been valuing the Carrs Billington part at rather more than it has realised.

[triskelion] 23/3/2023 13:53

"intra-company transactions" I find three times in the accounts without obvious further explanation but given the above, apparently not material. Just wondered from idle curiosity if they meant "intra-group transactions" or "inter-company transactions". Otherwise how does the left hand "transact" with the right hand; or is this idea recognised in the virtual reality of accounting?

[samson23] 23/3/2023 13:23

Previous post should state:- Could this be the reason for delay? A small but very technical alterations to report.

[samson23] 23/3/2023 13:04

The Board has made two prior year restatements to continuing operations, both related to revenue recognised under IFRS15 (Revenue from Contracts with Customers). The first restatement relates to the timing of revenue recognition for a small number of contracts with a single customer in China, where an adjustment to correct the approach taken in previous years has been made, to adhere to IFRS15 requirements on enforceable rights to payment in the event of termination of contract by the customer.

The second case relates to contracts directly related to Mechanical Stress Improvement Process technology and specifically whether these contracts contained two performance obligations (the conclusion reached in prior years) or one. This is an area which requires significant judgement and after careful consideration, the Board decided to account for the contracts as having one rather than two performance obligations. The impact of this change has been reflected on previous years' results as a prior year restatement.

The Board has also made two prior year restatements to discontinued operations, both related to revenue recognition. Firstly, in prior years the Group had incorrectly identified itself as acting as a principal when recognising revenue related to fertiliser sales, made through one specific supplier. A review of this transaction highlighted that the Group was acting as an agent, rather than principal, under IFRS 15 guidance, which means the net proceeds from the transaction, rather than gross sales, should be recognised as revenue. A correction to reduce both revenue and cost of sales in the prior year has been made. A further correction to reduce both revenue and cost of sales has also been made in respect of intra-company transactions which had not been netted off in prior years. In both cases there is no impact on profit.

[johnsoho] 23/3/2023 12:45

I personally think these results were pretty good and when the shares re-enter the market they will actually go up in value but, as always, time will tell; I’ve cut and pasted part of the full year report below::

For the year ended 3 September 2022

"A strong performance in a transformational year for the Group"

Carr's (CARR.L), the Speciality Agriculture and Engineering Group, announces its full year results for the year ended 3 September 2022.

Financials (continuing operations)


Adjusted (1) FY22 FY21 +/-
(restated)
(3)
------------------------- ------------ ------------ -----------
Revenue (GBPm) 124.2 120.3 +3.3%
Adjusted(1) operating
profit (GBPm) 11.9 11.1 +7.5%
Adjusted(1) profit
before tax (GBPm) 11.2 10.4 +8.0%
Adjusted(1) EPS (p) 10.0 10.1 -1.0%
Dividend (p per share) 5.20 5.00 +4.0%
Net debt (2) (GBPm) 14.0 10.0 -40.8%

Statutory FY22 FY21 +/-
(restated)
(3)
Revenue (GBPm) 124.2 120.3 +3.3%
Operating profit (GBPm) 8.2 8.2 +0.4%
Profit before tax
(GBPm) 7.6 7.5 +0.4%
Basic EPS (p) 6.4 6.2 +3.2%


Highlights

-- Revenue from continuing operations increased 3.3%
-- Adjusted profit before tax from continuing operations increased 8.0%
-- Reported operating profit from continuing operations in line with prior year at GBP8.2m
-- Agricultural Supplies business sold at market comparable 6.4 x FY21 EBITDA
-- Post year-end disposal leads to net cash on balance sheet
-- Refreshed Board for 2023
-- Group now focused on higher margin, differentiated, international businesses
Peter Page, Chief Executive Officer, commented:

"2022 was a year of significant change for Carr's Group. With a clear direction and strategy, the business is now focused on higher-margin, differentiated, international Speciality Agriculture and Engineering businesses with strong growth prospects."

[atlas1234] 23/3/2023 11:31

Likely some issues around the reporting of the impact of the changes in the group at the end of last year. The delay will not be helpful and only lend to suspicion of how big these were, and disclosure thereof. In turn it will not be helpful to the share price in my book.

[kinwah] 23/3/2023 09:56

I'm surprised that trading hasn't recommenced following publication of the results. Maybe the FCA is concerned about a possible disorderly market and has asked that the broker puts in place measures to ensure that there isn't volatile trading when share trading resumes. This could include publication of research and encouragement of institutional buying to ensure the shares can open at a sensible level reflecting the company's prospects.

[somethingsup] 21/3/2023 19:23

Trading most probably will not start on Thursday as the FCA need to give their blessing which can take time, hopefully next week.
Dividend will be paid post 5th April.

Finally moving which is good.

[boystown] 21/3/2023 18:33

Does that mean trading opens on Thursday from 8? FWIW, I expect a sharp fall but want to buy more

[samson23] 21/3/2023 18:22

Results to be published Thursday 23rd (about time)

Late RNS today at 17:39. Hope they include an explanation of why it took so long.

[1tx] 21/3/2023 15:42

Edison's valuation of 210.7p is looking a little stretched....Perhaps they meant for the Company not per share!

[p1nkfish] 21/3/2023 10:46

You couldn't make this up.

[samson23] 21/3/2023 10:31

I wonder how the institutional investors are taking this. Liquidity is everything as Neil Woodford found out !!!!!

[p1nkfish] 17/3/2023 15:32

A true shambles, you can't get more illiquid than having your money locked in by a bunch of incompetents.

Beyond belief in this day and age.

[kinwah] 17/3/2023 12:11

I'm wondering how harmoniously the new board is working. The change in financial pr to FTI from Powerscourt hasn't settled in yet. FTI clearly don't regard the intended dividend as important enough to be deemed a highlight for the trading update. Unless the audited results can be published by the end of next week the final dividend is going to end up being paid in the next tax year.

[p1nkfish] 14/3/2023 17:08

Not so long ago GT were understaffed.

[no dice] 14/3/2023 13:19

I like your optimism!

[no dice] 14/3/2023 13:09

I like your optimism!