Carr's Group Plc (LSE:CARR) saw its shares fall around 8.5% in Friday morning’s deals after the agricultural engineering firm issued a profits warning, with US drought conditions and soaring UK inflation blamed for lower demand.
August is historically a strong month for the company, Carr’s said, but internal expectations "have now been moderated" due to a delayed recovery in its markets.
Adjusted pre-tax profit for the current financial year are now expected "to be in the region of" £8 million, it added, whilst also noting higher costs connected to a transitional services agreement following the October disposal of the company’s agricultural supplies business, though it now expects to close this off by the end of the calendar year.
Thereafter, the company said it expects to free up key resources to focus on priorities in the remaining business.
The company will still pay a second interim dividend of 1.175p per share on 29 September and it highlighted to investors that it “continues to maintain a net cash positive position”.
In London, Carr’s Group shares were down 12.25p or 8.5%, changing hands at 132p each, valuing the company at just under £125 million.