Interim Announcement

06 April 2009

Carr’s (CRM.L), the fully-listed agriculture, food and engineering group, announces an increased profit for the 26 weeks to 28 February 2009 relative to the 26 weeks to 1 March 2008, which was a strong period.

Financial Highlights

• Revenue up 8% to £174.5m (2008: £161.9m)
• Pre-tax profit up 2% to £5.3m (2008: £5.2m)
• Fully-diluted earnings per share down 15% at 37.2p (2008: 44.0p), reflecting an increased minority interest and the increase in the issued share capital 
• Interim dividend per share unchanged at 6.0p

Commercial Highlights

• Agriculture increased its operating profit* by 9% to £4.4m on revenue up 10% at £130.2m and also reported a post-tax profit in associate and JVs down 23% at £0.8m. Animal feed, agricultural retailing and fuel distribution all did well
• Food increased its operating profit* by 45% to £1.6m on revenue up 2% at £40.5m. Volumes and profit increased in all three mills and the result was in line with budget
• Engineering achieved an operating profit of £0.5m, up 3%, on revenue up 14% at £3.8m

* before retirement benefit charge

Richard Inglewood, Chairman, stated “Carr’s performed well in the 26 weeks to 28 February 2009.  Pre-tax profit increased by 2% to £5.3m (2008: £5.2m), reflecting strong underlying trading in all major areas, with the exception of fertilisers, more than offsetting a £0.4m increase in the pension charge.

Since the period end, the fertiliser market has become more difficult in terms of both volumes and prices and the Group now anticipates, for fertilisers, a substantial adverse variance to budget for the full year. The remainder of the business is trading satisfactorily.

Accordingly, for the 52 weeks to 29 August 2009, the Board expects the pre-tax profit to be appreciably lower than last year’s underlying figure, reflecting mainly the weakness in fertiliser but also the impact of the increased retirement benefit charge.  Further out, the potential for improvement in the three Divisions, particularly fertiliser in Agriculture and the growth prospects for Engineering, give the Board confidence in the future.”

Presentation:

Today, there will be a presentation to brokers’ analysts and private client brokers between 13.00 and 14.00 at the offices of Investec, 2 Gresham Street, London EC2V 7QP. Those wishing to attend are asked to contact Charles Ponsonby of Bankside Consultants at charles.ponsonby@bankside.com.

Enquiries:

Carr's Milling Industries plc	01228 554 600
Chris Holmes (Chief Executive Officer)
Ron Wood (Finance Director)
Bankside Consultants Limited
Charles Ponsonby	020 7367 8851
	07789 202 312

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