Carr's Share Discussion Threads

[broadwood] 13/4/2016 06:55

Hi Red - Think I'll stay with it.

bw.

[redartbmud] 12/4/2016 22:59

bw

Wynnstay made similar comments about prices in their Accounts and at the AGM. Farmers who attended the meeting were singing the same song.
For now it is a case of battening down the hatches until better times return.

Looks like the value of 'mike' has fallen as well.

red

[redartbmud] 12/4/2016 22:59

bw

Wynnstay made similar comments about prices in their Accounts and at the AGM. Farmers who attended the meeting were singing the same song.
For now it is a case of battening down the hatches until better times return.

Looks like the value of 'mike' has fallen as well.

red

[broadwood] 12/4/2016 22:11

Carlisle-based Carr's Group believes the agricultural sector faces two more years of pain, as the dairy crisis worsens and the price of beef tumbles.

The food and engineering group's boss Tim Davies said there was no 'short-term fix' to the situation, adding that the outlook was worsening.

His remarks came after a 6.0% drop in farm gate prices for mike in February in comparison to a year before and as incomes for cattle farmers hit five-year lows.

Its business in the States on the other hand has held up better, boosted by "outstanding" sales of animal feed blocks as cattle herds were rebuilt in the wake of the severe drought seen from 2010 to 2012.

AIM-listed Carr's agricultural unit also managed to improve its first-half operating profits to £7.4m from £6.7m.

In parallel, the Chirton engineering arm endured a tough start to the year as oil prices plunged.

All told, turnover at the group was 9.4% lower over the six months to the end of February, reaching £189.1m.

Despite the hard times, the stock is trading on a conservative price-to-earnings multiple of just 11 times profits and the annual dividend is forecast to grow by 4.0% to 3.8p

[redartbmud] 11/4/2016 12:43

Linhus

Thank you for the precis. Very insightful.
I continue to hold.

red

[linhur] 11/4/2016 10:53

"Resilience" is the name of the game. In markets which are unlikely to improve in the near future (3 years) Carrs are robustly holding their own position.

It is interesting that the main quoted companies in agriculture (Carrs, Wynnstay and NWF) are holding their market positions and will benefit from any industry improvement when it eventually occurs.

I am pleased that the pension schemes are all in a positive position so that no further special contributions will have to be made until after the next valuation.

[redartbmud] 11/4/2016 08:10

It sure is tough out there.

[broadwood] 11/4/2016 07:58

The Group is operating in challenging markets, however our international presence and diversity has provided a robust H1 performance. Trading in the second half is as anticipated and we remain on track to meet the full year expectations of the Board.

The UK agricultural market has suffered from the depressed farm gate milk and livestock prices and we expect this to continue through 2016 and 2017, which will directly adversely impact our UK farm customers."

[broadwood] 06/4/2016 11:15

Nice little bump up - if it holds.

[broadwood] 05/4/2016 15:30

Results next week. No floods to worry about this quarter.

[broadwood] 06/1/2016 10:39

Hi red.

A beacon in the gloom this morning.

[redartbmud] 05/1/2016 07:52

bw

Thanks. Hlding.

red

[broadwood] 05/1/2016 07:08

Tim Davies, Chief Executive, commented:



"Cumbria in particular has faced enormous challenges as a result of the flooding following Storm Desmond. Despite the direct impact of the floods on some of our employees, customers and suppliers, the direct financial impact on the Group is covered by insurance. The speed of our recovery owes much to the resilience and tenacity of our employees.



As highlighted at our results in November last year, we face a number of headwinds in the markets in which we operate. However, our geographic diversity, investment across our asset base, together with the acquisitions we have made, will continue to set us apart and ensure the Group remains in a robust position over the medium to long term. Additionally our strong balance sheet ensures we remain in a good position to take advantage of any potential acquisition opportunities."



The Company expects to issue its interim results for the 26 week period ending 27 February 2016 on 11 April 2016.

[illiswilgig] 13/11/2015 21:13

Shawzie,

I missed out on buying CARR at the same time - and it's always seemed to be too expensive for me (I did buy Fisher at the time so I'm not moaning) since then. I've bought a few recently and will look to add more once the management have got the engine at full throttle again,

cheers

[illiswilgig] 13/11/2015 21:11

Robotics is a good sector to be in long term. Forecast is for massive increase in robots (to replace roberts) in the UK in the next few years. The euro exchange rate should also make this an attractive sell for CARR from its german robotic experts through it's UK engineering businesses. Also by far CARR's highest margin business so growth in this one should help to compensate for lower margin feed and milling businesses.

cheers

[broadwood] 11/11/2015 17:06

Delayed reaction still ongoing.

Personally think diversification is a strength.

[shawzie] 11/11/2015 14:48

Alfred - stick with it.
I first invested in Carrs Milling in 1998 at about 80p.
Holding gives a return of 20 times (excluding dividends) in less than 20 years.

[alfred] 11/11/2015 06:42

Low growth, low dividend. The high level of retained profits isn't producing much of a return is it. And it's too diversified for today's world. Shouldn't be a big loser (but the management aren't exactly inspired, so anything is always possible) but can't se it being much of a winner either.

[broadwood] 10/11/2015 20:20

red - a nice bump helped by Questor.

[redartbmud] 10/11/2015 20:16

Yes, I thought that the small down tick on results was wrong. I should have followed my conviction and added.

[broadwood] 10/11/2015 20:01

Carr’s engineering wing has endured a tougher year, as the collapse in oil prices hit demand at its Chirton business. Engineering profits slid 20pc during the year to £3.3m






However, the long-term outlook for engineering is good. The German-based remote-controlled robotics business, Walischmiller, is seeing evidence of a recovery in the UK nuclear industry, with new contracts from Sellafield.

The flour milling operations, based in Kirkcaldy, Scotland, enjoyed a 6pc increase in profits after the company invested £17m to build a more efficient manufacturing facility.

The shares were split 10 for 1 in January, falling from £15.84 to 158p. They are rated on a fairly conservative PE ratio of 11. The annual dividend was increased by 9pc, to 3.7p, with the 1.85p final going ex-dividend December 17, and payable January 15



We continue to like the odd mix of the business, which provides steady revenues, and would buy for the long term

[broadwood] 10/11/2015 19:58

Carr’s Group
146.25p -4.5p
Questor says BUY


CARR’S Group [LON:CARR] is a well-diversified smaller company that has a good record of growing revenue and profits, and which has delivered dividends growth and capital returns for investors.


The results for the year to the end of August were a good example of why Carr’s is a worthwhile long-term investment. Revenue fell 4pc to £412m, but pre-tax profits moved 5.5pc up to £17.5m.


The agriculture division provides animal nutrient blocks to farmers, and strong sales in the US helped profits increase by 10pc. The agriculture division is the largest in the group and contributes almost three quarters of the revenue and pre-tax profits.


Carr’s has developed an animal feed block that allows herds to produce more milk or put on more weight for the meat market. The company, which changed its name from Carr’s Milling Industries to Carr’s Group earlier this year, has invested in a new facility in Nevada, which is due to start production this month.

[9degrees] 09/11/2015 14:41

looking good in a hard environment so it can fly if the agricultural prices can get better

[broadwood] 09/11/2015 12:00

Carr's posts pre-tax profits of £17.5m for the year to 29 August - 5.5% up on last time.

Revenue was down 4.1% at £411.6m primarily due to low commodity prices but EBITDA rose by 6.0% to £21.6m.

Basic EPS was up 4.7% to 13.4p (2014 restated: 12.8p) and adjusted EPS rose by 3.8% to 13.6p.

The proposed final dividend of 1.85p is up 8.8% resulting in a total for the year of 3.7p (2014 restated: 3.4p).

Chairman Chris Holmes said: "I am pleased to report that the Group achieved another record year of profit before tax, despite a number of headwinds across all of our divisions. We have been able to achieve this due to the diversity of our business and the resilience of our business model, together with the hard work of our management team and all of our employees. While we expect these headwinds to continue in 2016, we are in a very strong position to handle those challenges and capitalise on any potential opportunities."

[redartbmud] 09/11/2015 10:37

Similar thoughts.