Carr’s Milling Industries, the international agriculture, food and engineering conglomerate, has highlighted the contribution of its Kirkcaldy flour mill to the group’s record profit.
The firm, which has its headquarters in Carlisle and operates a £17 million flour mill at East Bridge, ground out a 7.8% rise pre-tax profit of £16.6m.
Revenue was down 8.4% at £429m but earnings per share were up 3.1% at 127.8p and dividend per share was up 6.3% at 34p last year.
Chairman Chris Holmes said: “The now fully operational flour mill at Kirkcaldy has delivered the anticipated benefits to the food division.
“This coupled with the continuing excellent customer service from all our flour mills has resulted in the expected increase to the profit before tax up 309.7% to £2.3m for the division.”
The first wheat was milled at the new Kirkcaldy mill in the summer of 2013 and it is meeting all expectations in performance and reliability to deliver improved operational efficiency.
The group expects the increased customer confidence derived from Carr’s ability to produce high quality flour at Kirkcaldy to “deliver further increased financial benefits from the new mill during the next financial year.”
The conglomerate’s UK operations also include Carr’s Billington Agriculture Sales sites at Stirling Agricultural Centre, Milnathort and Arran Road in Perth.
Mr Holmes said the record pre-tax profit was attributable to a strong operational performance across the three divisions of agriculture, food and engineering.
This was driven by the benefits from research and development, innovation, global geographic diversity and strategic investments.
The milder weather in the UK in 2013/14 resulted in lower revenues but was offset by severe weather in the USA resulting in record sales of feedblocks and increased brand recognition.
The chairman said weak farmgate milk prices will adversely affect the farming community but the diversity of the agriculture division and Carr’s high quality customer service levels would help mitigate some of the impact.
Despite the mild weather, the current year has started in line with expectations.
With a strong balance sheet, well invested assets and continuing investment, the group is well placed to capitalise on opportunities.
Carr’s operations span 31 nations in the UK, Europe and North America, supplying 31 countries around the world, and the group employs more than 1,000 people.
Jonathan Dodgson Carr founded the business in Carlisle in 1831 as a baker and dealer in meal and flour, and opened the first flour mill to supply the baking business in 1834.
He manufactured the world’s first mass-produced biscuit and in 1841, JD Carr was appointed biscuit maker to Queen Victoria.
Shares in Carr’s rose 1.90 points on Wednesday to 151.90.