Cumbrian food, agriculture and engineering group Carr’s yesterday hailed the “cutting-edge” efficiency being delivered by its £17m investment in a Kirkcaldy milling plant.
The firm used a trading statement to reveal that the new quayside facility, which has now been operational for around 10 months, was “delivering all the planned technological benefits as expected”.
Carr’s said investment in its food division would continue.
The Carlisle-headquartered group had targeted a significant improvement in margins from the development of its new mill, which opened in September following support from Scottish Enterprise.
Carr’s also said it expects a “large” UK harvest this year, but warned that it was too early to speculate on the quality of wheat.
“As our three mills are strategically located, with two at port-side locations, we remain well placed to procure the best quality wheat, which enables us to distribute flour to our customers in the most cost-effective manner,” the firm added.
The group said its financial position remained “strong”, with trading consistent with board expectations over the 19 weeks to July 12.
Net debt rose £1.8 million, to £27.1m, in the period, reflecting both the acquisition of North Shields based oil and gas and specialist component manufacturer Chirton Engineering for an initial £2.75m in April, and ongoing capital expenditure.
Banking facilities have been renewed ahead of term, with committed undrawn facilities of £16.4m available.
“Our geographic diversity and continued investment has ensured that we are at the forefront of innovation, technology and design,” said chief executive Tim Davies.
“This has resulted in a strong performance across every division during the period. As such, we expect the full-year performance to be in line with our existing expectations.”
The Kirkcaldy mill was the first such facility to be built in Scotland for 30 years, and replaced the established Hutchisons Mill securing more than 70 long-term jobs in the town, and supporting 100 roles during construction.
The development was made possible by the reopening of the Port of Kirkcaldy and dredging works carried out by owner Forth Ports in late 2011.
Carr’s also said it was “pleased” by the development of its agriculture arm including new acquisitions, retail store refurbishments and feed block sales and celebrated the opening of a new Wlischmiller factory in Germany.
Chirton has been successfully integrated into the wider division, a contract with BP has been extended and UK-based manipulator business Carrs MSM continues to win work from Sellafield and other power stations.
Shares closed the day up 15p at 1,765p.