Carr's Milling boosted by adverse weather conditions

Carr's Milling Industries increased half year profit by more than a third as adverse weather conditions in the UK and US increased demand for animal feed products.

Carr's Milling Industries increased half year profit by more than a third as adverse weather conditions in the UK and US increased demand for animal feed products.

The Cumbria-based firm reported pre-tax profit of £10.1m during the half year-ended March 2nd 2013, up from a £7.4m profit a year earlier. Revenue for the period increased to £231.6m from £196.0m.

Group operating profit climbed to £8.8m compared to £6.7m while basic earnings per share increased to 80.8p from 54.0p.

Agriculture revenue jumped 17.8% and pre-tax profit rose 21.4%, following strong demand for animal feed in the UK and US.

"In the UK, the wet summer and autumn had an adverse impact on the quality of forage available and the duration and intensity of the 2012/13 winter has stimulated demand for compound feeds, in particular," the group explained.

"In the US, the summer droughts of 2012 covered two thirds of the land area and 80% of the nation's farm land resulting in low quality forage. In a similar position to the UK, the subsequent harsh winter conditions have not been favourable for farmers."

Chairman Chris Holmes added: "The performance of the group in the first half has been strong, significantly helped by the trading conditions created by global weather patterns. We anticipate that the benefits to the group of the adverse weather will continue in quarter three."

Food revenue was up 8.0% and profit before tax up 10.9% as cheaper imported wheat offset volatility on flour milling.

Engineering revenue surged 81.9% and pre-tax profit rose 39.0%, reflecting demand for remote handling equipment and specialist fabrications from nuclear, petrochemical and other industries.

An interim dividend payment of 7.75p has been offered, up from 7.25p previously.

Net debt increased to £19.0m from £2.5m as at September 1st 2012.

CJ

Recommended

Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021