Carr's Group


£137.4m market cap

149.5p last close

Carr’s Agriculture division serves farmers in the North of England, South Wales, the Welsh Borders and Scotland, the US, Germany and New Zealand. The Engineering division offers remote handling equipment and fabrications to the global nuclear and oil and gas industries.

Investment summary

Diversification both inside and outside the agriculture sector means that Carr’s Group continues to trade in line with management expectations for FY19 despite the unusually mild UK winter and spring. We leave our estimates and indicative valuation of 184p per share unchanged.

Y/E Aug
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 346.2 13.9 11.9 9.4 15.9 9.0
2018A 403.2 19.9 17.7 15.2 9.8 9.1
2019E 418.8 20.9 18.1 15.2 9.8 9.2
2020E 434.6 22.2 19.4 16.4 9.1 8.9
Industry outlook

Origin Enterprises’ recent Q3 trading update notes that its Feed Ingredients division recorded lower volumes compared with the same period in 2018, following the exceptional demand levels experienced last year because of poor grass growing conditions. Our estimates already assume that Carr’s UK based Agriculture activities will follow a similar pattern, with divisional growth driven by the Aminax acquisition and rising sales of feedblocks in the eastern states of the US.

Last updated on 25/07/2019
Share price graph
Balance sheet
Forecast net debt (£m) 27.5
Forecast gearing ratio (%) 22
Price performance
Actual 2.4 0.3 (3.1)
Relative* 1.2 (0.2) (0.4)
52-week high/low 173.0p/130.0p
*% relative to local index
Key management
Chris Holmes Chairman
Tim Davies CEO
Neil Austin FD

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