Wary Carr trims payout to investors
AGRICULTURAL group Carr's Milling Industries has shaved its dividend payout as it faces up to problems following the foot-and-mouth outbreak. The business expects sales of animal feed to tumble this winter because of slow restocking of herds by farmers affected by the crisis.
More than three-quarters of foot-and-mouth cases fell in areas of the country served by Carr's and the winter is normally the group's busiest period. 'There is clearly not the same amount of stock and we have decided to be cautious,' said chief executive Chris Holmes.
The company's pre-tax profits fell to £2.1m in the year to September, from £2.2m a year earlier. Sales climbed 22% to £126.7m, including the benefits of Carr's joint venture with fellow UK agricultural firm Billington's. Shareholders will receive a total dividend of 8p a share, from 9p last time.
Holmes said the performance was better than he had expected in the 'eye of the storm' earlier this year, adding strong feed sales to farmers unable to move their livestock had helped the business. Around 50 staff have been laid-off since the crisis broke in an effort to save up to £1m a year.
Holmes said other parts of the business were performing well, including its 'human' food arm, which sells flour and pasta. The expansion of Carr's US feed business left Holmes confident 'there's more good news coming rather than bad'.
