Investors seeking to harvest growth and income should take note of stock purchases by John Worby, non-executive director at Carr’s (CARR). The £38,925 investment demonstrates confidence in the agriculture, food and engineering combine’s resilient business model and international growth prospects.

Via a purchase (15 Apr) of 25,000 shares by wife Shelagh Anne Worby at 155.7p a share, the recently appointed (9 Mar) non-executive has initiated a position in Carr’s, previously known as Carr’s Milling Industries. The investment follows record half-year results (13 Apr) showing a 5.4% pre-tax profit gain to £10.6 million, delivered despite pressure on UK dairy farmer incomes, and an 8.8% dividend hike to 0.925p.

The former Genus (GNS) numbers man clearly appreciates the domestic and international growth opportunities ahead for Carr’s. The small cap’s services include the manufacture and supply of everything from flour and livestock feed blocks to robotic and remote handling equipment for the nuclear and oil industries. Geographic and operational diversity is enabling Carr’s to contend with volatile commodity swings, weather patterns and geopolitical turbulence.

Profit growth in the half was driven by agriculture and food, though there’s scope for second-half earnings recovery in engineering. Investec Securities has a ‘buy’ rating and 196p price target that implies 18.8% upside. For the year to August 2015, the broker forecasts pre-tax profits of £17.5 million (2014: £16.6 million), earnings of 13.6p (2014: 12.6p) and a 9% shareholder reward rise to 3.7p.

At 165p, Carr’s looks good value, with its diversity and investment in technology and innovation standing the business in good stead.

THE TRADE

Buyer: Shelagh Anne Worby, wife of non-executive director John Worby

Consideration: £38,925

No. of shares bought: 25,000

Subsequent holding: 25,000 (0.01%)