Last updated 19:44, Thursday, 17 July 2008

STRONG sales of animal feed and fertilisers are set to boost profits at Carr’s Milling Industries, the Cumbrian agriculture, food and engineering group.

The firm has upgraded its profits forecast for the year from £8.6m to £9.2m.

This represents a 67 per cent rise on 2006-7 profits of £5.5m.

Turnover is also expected to increase from £253m to £330m.

A statement issued last week said: “Carr’s has continued to enjoy strong trading particularly in agriculture, much the largest of the group’s three activities.

“As a result, the board’s profit guidance is again being raised. It now expects profit before tax for the year to August 30 to be in excess of £9.2m.”

The news sent Carr’s share price 17p higher at £6.40.

Carr’s owns Silloth flour mill and Bendalls and Hinds engineering businesses in Carlisle.

It also owns, jointly with Billington’s of Liverpool, animal feed mills in Carlisle and Penrith and 15 outlets selling farm machinery and supplies.

Carr’s reported strong half-year profits in March, which rose 45 per cent to £5.17m.

Chief executive Chris Holmes expects the trend to continue.

He said: “This is driven by strong sales growth. We are growing very strongly in the US, Europe and the UK.

“That has helped us tremendously, although we’ve had to face huge increases in raw-material costs.”

Carr’s statement says sales of compound and blended animal feed have risen “substantially”.

Volumes of low-moisture feed blocks are up in the key UK, US and German markets.

And fertiliser sales were “strong” in the busy early-spring period.

The firm believes that some farmers have bought next year’s fertiliser supplies in advance to avoid anticipa-ted price increases.

Farm machinery sales were strong and oil distribution revenue “substantially increased”.

Carr’s last week acquiredground-care equipment business JM Raine, of County Durham.