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17 Jul 2019
Investec - Carr's Group (Buy): Q3 in line with expectations
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Investec - Carr's Group (Buy): Q3 in line with expectations
Carr's Group PLC (CARR:LON) | 133 1.7 0.9% | Mkt Cap: 125.3m
- Published:
17 Jul 2019 -
Author:
Nicola Mallard -
Pages:
6
Carr’s Group has issued its Q3 update, stating it is trading in line with the Board’s expectations. We make no changes to forecasts today.
In UK Agriculture, the milder weather relative to last year has impacted on demand for feed and fuel, but this has been partly mitigated by good procurement/positions on raw materials and cost management, as was the case through 1H. The integration of Animax has also gone well, as the group invests in product development and expanding international sales. Carr’s continues to add to its range with the recent purchase of Paul Chuter (all-terrain vehicles). Brexit uncertainty remains and the group is closely monitoring developments.
In the USA, the new Shelbyville site has helped extend the group’s geographic reach and trading through the main FY19 winter season was good. We recently flagged that flooding in the Mid-West could have some impact in FY20 and reflected this in some minor forecast adjustments.
Engineering continues to build its order book (especially UK Manufacturing), giving greater confidence over the medium term, Remote Handling activity has been lower this year, as previously flagged, but the level of global opportunities remains high. The entry into the US via NuVision brings further opportunities. The group’s nuclear expertise has been further strengthened by the purchase of NW Total.