Performance during the first 18 weeks of FY18 indicates that the recovery in both divisions that was predicted by Carr’s Group (LON:CARRC) management is well underway. As the group is trading in line with management’s expectations for the full year, we leave our estimates and valuation unchanged except for an upward revision to revenues to reflect higher commodity prices.
Continued improvement in US feed block volumes
Importantly, US feed block volumes continued to recover as cattle prices for producers improved. Going forward, this favourable trend will be augmented by the availability of low moisture feed blocks from the newly commissioned plant in Tennessee, which opens up the market in the eastern states of the US. UK farming sentiment remains positive, helping drive strong machinery sales, increased feed volumes and a good start to the year in the Country Stores, although fuel volumes were lower because of the mild and wet weather.
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