The Carr’s Group has issued a full year profit warning ahead of the release of its half year figures for the 26 weeks to the end of February 2020, due for release in mid-April.
The Carlisle-based business has two divisions. Agriculture makes animal feeds and has a chain of rural retail outlets in the UK, plus a feedblock manufacturing operation domestically, in the US and Germany. Engineering specialises in nuclear power projects.
Carr’s says conditions in both its UK and US agricultural markets “have remained challenging” since its AGM update in early January. This, “combined with the continued mild weather, has meant that volumes and margins for feed and supplements are significantly behind management’s expectations”. The Group adds that cost control measures implemented in the first half have “only partially mitigated this adverse impact”.
The Group had expected the Engineering division’s new order pipeline to more than offset Agriculture’s shortfall over the rest of the financial year, but now warns that this is threatened by delays since January 2020 in receiving expected orders destined primarily for Japan and China.
Therefore, Group performance for the full year is likely to be significantly below board expectations. The company says it is implementing further cost reduction measures “which should better position both divisions beyond the current financial year”.