26th Apr, 2006: Cumbria, UK - PROFITS at Cumbria-based Carr’s Milling Industries have soared again as the agriculture, food and engineering group announced another strong half-year.
Despite difficulties in its principal market – UK agriculture – Carr’s saw profits rise by 18.2 per cent to £4.57m in the 26 weeks to March 4.
And the outlook from the group, which owns Silloth flour mill and Bendalls engineering, remains good with executives confident that the business can continue to grow.
Richard Inglewood, chair of Carr’s Milling Industries, said: “Carrs continues to experience adverse conditions in the UK agriculture market.
“This is nothing new for the company and in the last decade, the Carr’s management has successfully adapted the Group to changed circumstances and has taken advantage of opportunities to increase profits both in and outside UK agriculture.
“As a result, further good progress in the business is expected in the current year.”
The board blamed the problems in the agriculture division on delays in farmers’ receiving their Single Farm Payment subsidy, the low price of milk and animals feeding outside in the mild winter.
Earlier this week, the company announced that a review of its Langwathby animal feed mill could lead to job losses among the 65 staff.
Despite the difficulties in the agricultural market, Carr’s food division traded strongly following the acquisition Meneba (UK) – which doubled the size of its flour division.
Overall, group sales rose by 40.8 per cent to £110.39m.
Shareholders will receive an interim dividend of 5.5p per share, up from 5p last year. Despite the profits and sales rise, Carr’s share price fell 2p to 477p in early trading this morning.