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Agriculture and engineering group Carr’s (CARR) has reported a ‘resilient performance’ in the first half of its financial year and reassured the market the current coronavirus crisis has not had a material impact on its trading.

During the 26 weeks ended 29 February 2020 total group revenues fell slightly to £200m from £200.6m in the previous financial year.

Its agriculture division showed slower trading than the prior year as challenging market conditions and continued unseasonal weather affected both the UK and the USA.

In the UK, lower feed and fuel volumes partly offset by strong performance in machinery and retail sales

During the period, the division’s revenue was down 5.5% to £175m.

Overall adjusted group operating profit fell 13.4% to £10.3m from £11.9m, though reported operating profit was 3.8% ahead of the prior year at £11.2m.

On the coronavirus outbreak, Carr’s said it has had “no material overall impact to date, but significant uncertainty remains”.

It has implemented a range of measures and planned contingencies across both divisions which are designed to minimise the impact of the pandemic.

In Agriculture, measures have been taken to ensure that all of its UK and overseas manufacturing facilities can remain operational, and that its network of UK retail outlets can be used to supply its core ranges of feeds, supplements, animal health products, fuels, machinery, retail products and services to our farming customers, who are critical to the UK’s food supply chain.

It also said it is carefully monitoring our stock levels, together with its supply and distribution channels, to ensure that it remains operational.

In light on the uncertainty, the payment of an interim dividend deferred until full effects of COVID-19 become clear.

CEO Tim Davies commented: “In challenging market conditions, with significant headwinds experienced in both divisions, we have delivered a resilient performance in the period.

“While there remains significant uncertainty over the impact of COVID-19, we are moving decisively on all fronts to address these challenges, ensuring we conserve cash and maintain a robust financial position. We will continue to monitor developments closely and respond accordingly. At this time the health, safety and well-being of our employees, customers and the wider communities in which we operate remain our absolute first priority, and we have implemented measures to protect and support them through these unprecedented times.

“We are confident that our approach and robust business model will ensure the Group is well placed to endure this period of uncertainty and continue to deliver growth in the medium term.”

The group’s shares are unchanged this morning at 102.4p, but have lost more than a third of their value since the start of the coronavirus crisis.

Morning update

The British Chamber of Commerce’s Coronavirus Business Impact Tracker has suggested that two thirds of UK businesses have furloughed employees, while just 2% have been table to take out government backed loans.

The BCC said the majority of businesses responding to the survey have now furloughed a proportion of their workforce, and are awaiting funds from the government’s Job Retention Scheme to enable them to pay staff.

A total of 66% of firms had now furloughed a proportion of their staff in anticipation of the Coronavirus Job Retention Scheme going live and making payments, with 31% saying they have furloughed between 75% and 100%.

It also found business’ cash flow, an important indicator of overall economic health, remains an urgent concern with more than half of firms reporting cash in reserve of three months or less.

The percentage of firms reporting less than a month’s worth of cash in reserve (17%) and 1 to 3 months’ cash in reserve (36%) has remained broadly unchanged week-to-week, but remains “concerningly high”.

Additionally, the slow start in firms successfully accessing government support schemes has continued. Just 2% of respondents reported they had successfully accessed the CBILS this week (double last week’s 1% figure),with 9% of respondents unsuccessful.

Of those who were unsuccessful, slow or no response from lenders was cited as the main reason.

“This suggests firms could still be having difficulty accessing the support through banks, despite the announcements on 2nd April designed to simplify and speed up the CBILS process,” the BCC stated.

Some 15% of respondents said they had successfully accessed grants for small businesses, a rise of 7% on the previous week, while 12% of respondents said they were unsuccessful in accessing these grants.

Commenting on the results, BCC Director General Dr Adam Marshall said: “Businesses on the frontline need cash to start flowing from support schemes fast.With April’s payday coming up, we are fast approaching a crunch point, and both the furlough scheme and CBILS facilities need to be accelerated.

“While we’ve seen a high number of firms furloughing staff in anticipation of the Job Retention Scheme coming online, it is still unclear whether they will start receiving funds before their payroll date, which could exacerbate the cash crisis many businesses are facing.

“It is essential that the Job Retention Scheme makes payments to businesses as soon as possible. Any delay could mean more livelihoods under threat, more business failures, and more hardship in our communities.”

On the markets this morning, the FTSE 100 has fallen a further 0.8% to 5,759.7pts

Risers so far this morning include Ocado (OCDO), up 5% to 1,558.5p, Glanbia (GLB), up 1.9% to €8.96, British American Tobacco (BATS), up 1.8% to 2,970.5p and Morrisons (MRW), up 1.5% to 185.8p.

Fallers include WH Smith (SMWH), down 4.6% to 1,130p, Marston’s (MARS), down 3% to 42.7p and Greggs (GRG), down 3% to 1,720p.

Yesterday in the City

The FTSE 100 started the short week down 0.9% at 5,791.3pts.

Despite the wider market fall there were plenty of consumer risers, including Applegreen (APGN), up 15.6% to 260p, Ocado (OCDO), up 8.5% to 1,484.5p, Premier Foods (PFD), back up 7.7% to 27.9p, Hotel Chocolat (HOTC), up 6.9% to 286p and Marston’s (MARS), up 6.6% to 44p.

Other risers yesterday included B&M European Value Retail (BME), up 5.8% to 317.6p, CAKE Box (CAKE), up 5.8% to 119.5p, Reckitt Benckiser (RB), up 4.5% to 6,448p, McColl’s (MCLS), up 4.4% to 41.3p and Naked Wines (WINE), up 4.1% to 304p.

Yesterday’s fallers included Mitchells & Butlers (MAB), down 9.4% to 201.5p, Compass Group (CPG), down 7.8% to 1,253p, WH Smith (SMWH), down 7.5% to 1,184p, Pets at Home (PETS), down 4.8% to 260.2p, FeverTree (FEVR), down 4.3% to 1,236.5p, Greencore (GNC), down 3.6% to 167.8p, SSP Group (SSPG), down 3.5% to 296.4p, Marks & Spencer (MKS), down 3.4% to 106.8p and British American Tobacco (BATS), down 3.4% to 2,918.5p.

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