Edison Investment Research - Carrs Group (CARR) Carrs Group - Sale puts focus on higher-margin activities

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Edison Investment Research

Toby Thorrington

Carr's Group - Sale puts focus on higher-margin activities

Carr’s Group has announced the disposal of its Agricultural Supplies division for up to £44.5m cash following the strategic review announced in January 2022. While we expect the disposal to lead to an earnings reduction in the short term, the proceeds will be reinvested in the Speciality Agriculture and Engineering divisions. Management believes this strategy will generate faster growth in the longer term than retaining the Agricultural Supplies activity.

31/08/2022 1 EN

Underlying

Carrs Group

Carr's Group operates across the agriculture and engineering sectors which supplies products and services to countries around the world. Co.'s agriculture division includes an international feed block supplement business, and in the U.K., this division also sells animal feed, fertilizer, animal health products, fuel, farm machinery and rural supplies. Co.'s engineering division designs, manufactures and supplies precision parts, equipment, robotics and remote handling products. These products and services are supplied primarily into the nuclear, defense and oil and gas markets.

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GB00BRK01058 London Stock Exchange United Kingdom

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Toby Thorrington

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Carr's Group - Sale puts focus on higher-margin activities

Carrs Group: 1 director

Carr's Group - An enhanced value creation strategy

Carr's Group - Cautious optimism

Tinexta - Typical seasonality in Q124

Dentsu Group - FY24 prospects weighted to H2

Record - AUME momentum and a sharper focus

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