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

HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022
How to be better at selling stocks
Investment strategy

How to be better at selling stocks

There is plenty of advice around about buying stocks, but not so much about when you should sell. John Stepek explains the two key things to know abou…
14 Jan 2022
Share tips of the week – 14 January
Share tips

Share tips of the week – 14 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
14 Jan 2022
Fintech: how to profit as technology transforms banking around the world
Share tips

Fintech: how to profit as technology transforms banking around the world

Financial technology – from apps to APIs to the cloud – is rapidly transforming financial services. This will spell doom for some incumbent firms, whi…
14 Jan 2022

Most Popular

Five unexpected events that could shock the markets in 2022
Stockmarkets

Five unexpected events that could shock the markets in 2022

Forget Covid-19 – it’s the unexpected twists that will rattle markets in 2022, says Matthew Lynn. Here are five possibilities
31 Dec 2021
US inflation is at its highest since 1982. Why aren’t markets panicking?
Inflation

US inflation is at its highest since 1982. Why aren’t markets panicking?

US inflation is at 7% – the last time it was this high interest rates were at 14%. But instead of panicking, markets just shrugged. John Stepek explai…
13 Jan 2022
Tech stocks teeter as US Treasury bond yields rise
Tech stocks

Tech stocks teeter as US Treasury bond yields rise

The realisation that central banks are about to tighten their monetary policies caused a sell-off in the tech-heavy Nasdaq stock index and the biggest…
14 Jan 2022