Shares of Carr's Milling Industries Plc (CRM.L) climbed around 11 percent in the morning trade on London Stock Exchange after the UK-based agriculture trading, manufacturing, food and engineering company reported a 36.2 percent jump in first-half profit as revenues were benefited by positive trading conditions across all of its businesses. The company also hiked its dividend, and said its fiscal 2013 result will be ahead of previous expectations.
Chairman Chris Holmes said, "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."
In its first half, pre-tax profit climbed to 10.14 million pounds from last year's 7.44 million pounds. Earnings per share grew 53.1 percent year-on-year to 79.9 pence.
Revenue for the 26 weeks went up 18.1 percent to 231.63 million pounds, from 196.05 million pounds a year earlier. During the period, agriculture revenue climbed 17.8 percent, with animal feed benefiting from adverse weather conditions, feed blocks experiencing strong demand in the UK and USA, and retail and fuel distribution continuing to expand in Scotland and Northern England.
Food revenue was up 8 percent with cost-effective access to imported wheat offsetting volatility on flour milling. The company noted that the new mill in Kirkcaldy is on target to start production in September with over-capacity in Scotland reduced through closure of a competitor in Glasgow.
Engineering revenue surged 81.9 percent in the first half, reflecting demand for remote handling equipment and specialist fabrications from nuclear, petrochemical and other industries.
In addition, the company announced an interim dividend of 7.75 pence per share, 6.9 percent higher than last year, payable on May 17 to shareholders on the register on April 26.
Going ahead, the company said its Board views the remainder of the year favourably, with the expectation that the result for the financial year ending 31 August 2013 will be ahead of our previous expectations.
The farming communities will, in both the UK and USA, continue to suffer as a result of the volatile weather conditions seen in 2012 and so far in 2013. An improvement in profitability from the Food division should begin to come through in the next financial year.
Further, Carr's Milling said its Board will maintain its strategy to consider suitable acquisition opportunities across all operations as well as build organic growth.
In London, Carr's shares are currently trading at 1,170.75 pence, up 111.75 pence or 10.55 percent.
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