Business
Pre-close trading update
Pre-close trading update.
About this update from Fevara Plc
[{"type":"text","content":"\n Carr's Milling Industries PLC\n17 February 2006\n\n\n\n\n CARR'S MILLING INDUSTRIES PLC\n\n\n Pre-Half Year Close Trading Update\n\n\nCarr's, the Cumbria-based Agriculture, Food and Engineering group, proposes to\nannounce its results for the 26 weeks to 4 March 2006 in late April 2006. The\nBoard expects these results to report a further substantial increase in pre-tax\nprofit after adjusting for the exceptional gain on the disposal of the Bendalls\nEngineering site in October 2004. Trading, however, remains mixed, as was stated\nat the AGM on 9 January 2006. Compound feed and fertiliser are experiencing\nmarket-related difficult times, but the rest of Agriculture, together with Food\nand Engineering, are trading well.\n\n\nSince the AGM, the compound animal feed market has continued to deteriorate,\nwith sales for the first half year down year-on-year on a like-for-like basis.\nThis reflects delays for farmers in receipt of the Single Farm Payment, the low\nmilk price, and animals feeding outside in the mild winter weather; in addition,\nmargins are lower as a result of the increased cost of energy. While the peak\nselling season of February - April is in an early stage, fertiliser volumes are\nexpected to be down approximately 12% for the first half year, reflecting\nfarmers' reluctance to pay energy- related higher prices. However, sales of\nfeedblocks in both the UK and USA are ahead of last year and the retail and\nmachinery branches are trading satisfactorily. Further, the rationalisation of\nUK compound feed capacity following the Pye Bibby acquisition has proved timely\nand the disposal of surplus sites is progressing well.\n\n\nFood continues to trade ahead of both last year and budget. The half year will\nbenefit from the inclusion for the whole period of the acquisition of Meneba UK,\nwith its two flour mills, which was effected on 18 November 2004. Accordingly,\nFood's interim profit will be substantially increased.\n\n\nEngineering is also up on both last year and budget, with its return to profit\nconsolidated.\n\n\nCarr's results for the 26 weeks to 4 March 2006 will be its first to be prepared\nunder International Financial Reporting Standards. The effect of its adoption on\nannual profits is expected to be positive, perhaps to the extent of\napproximately £0.5m, principally as a result of changes in account...