Final Results

09 November 2009

"a satisfactory year, in the circumstances"

Carr's (CRM.L), the fully-listed agriculture, food and engineering group, announces its results for the 52 weeks to 29 August 2009. It has been a satisfactory year, given the extremely difficult backdrop in fertiliser, with many of the Group's activities at or ahead of budget.

Financial Highlights

• Revenue down 6% to £350.0m (2008: £372.3m) 

• Pre-tax profit down 45% to £7.0m (2008: £12.9m), but up 27% on 2007's £5.5m

• Fully diluted earnings per share down 45% to 50.3p (2008: 91.2p)

• Net assets per share 340p (2008: 298p), assisted by a £2.6m net placing 

• Gearing 65% (2008: 70%), despite £4.3m cash consideration for the acquisition in March 2009 of the Walischmiller Engineering business

• Dividends per share unchanged at 23.0p, including an unchanged 17.0p final 

Commercial Highlights

• Revenue from Agriculture was 8% lower at £255.0m (2008: £275.8m) and operating profit* decreased by 48% to £6.0m (2008: £11.7m). Additionally, the Group's share of post-tax profit in associate and joint ventures was down 34% at £1.1m (2008: £1.6m) 

• Food increased its operating profit* by 19% to £2.3m (2008: £2.0m) on revenue 8% lower at £79.0m (2008: £85.6m)

• Engineering increased its operating profit* by 31% to £1.4m (2008: £1.1m) on revenue up 48% at £15.9m (2008: £10.7m), benefiting from the Walischmiller acquisition

*before retirement benefit charge but after non-recurring items and amortisation

Richard Inglewood, Chairman, stated "In the 52 weeks to 29 August 2009, the massive increase in commodity prices and the 40% uplift in the farm-gate milk price which had helped make the prior year a tremendously successful one for Carr's were absent; indeed, both trends reversed. This particularly impacted the Group's fertiliser business, the star performer in 2008, which swung into loss in 2009. Accordingly, Group pre-tax profit was substantially lower than in 2008, but it did remain comfortably ahead of that for 2007." 

With regard to prospects, Lord Inglewood said "In the current year, in the context of extremely difficult markets, the Board expects trading in the Group's principal activities to be broadly flat, other than for fertiliser, where a partial recovery is envisaged. Further out, the Board believes that Carr's is well placed, having regard in particular to the long-term demand for agricultural products, the diversity of the Group's activities and the Group's well-invested facilities." 

Presentation:

Today, there will be a presentation to brokers' analysts, private client brokers and others professionally interested in CRM.L 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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