Carr's hails strong start to 2018

Carr’s said on Tuesday that trading is in line with the board’s expectations for the current financial year and “significantly ahead” of the previous year in both agriculture and engineering.

In an update for the 18-week period to 6 January 2018, Carr’s said UK Agriculture has begun the year positively, with improved farm incomes continuing to reinforce farmer confidence. Meanwhile, the company’s retail business has had a strong start to the financial year and manufactured feed volumes are ahead of the same period in the prior year.

Fuel volumes are lower due to milder weather and wet ground conditions and as expected, machinery sales remain strong and continue to reflect positive farmer sentiment on the prospects for UK agriculture. UK feed block sales also continue to be strong.

Carr’s said US feed block sales volumes continue to recover as cattle prices for producers improve. In addition, the new low moisture feed block plant at Shelbyville, Tennessee, is now fully commissioned and in production.

The company’s UK manufacturing business is trading “well ahead” of the prior year thanks to improved levels of activity, while work on the “significant” contract announced in July continues and the order book remains strong.

Chief executive Tim Davies said: "We are pleased with how FY18 has commenced. We are seeing the continued recovery across both divisions and the investments we have made in acquisitions and research will continue to act as a solid foundation for ongoing growth."

At 1510 GMT, the shares were up 11% to 137.50p.