Interim Results

"A positive first half with current trading in line with the Board's expectations for the full year"

Carr's (CRM.L), the Agriculture, Food and Engineering Group, announces results for the six months ended 1 March 2014.

Financial highlights

• Profit before tax up 2.0% to £10.1m (H1 2013: £9.9m¹)
• Adjusted EPS up 0.6% to 78.1p (H1 2013: 77.6p1)
• First interim dividend up 9.7% to 8.5p (H1 2013: 7.75p)
• Net debt of £25.3m (£22.1m as at 31 August 2013)

Commercial highlights

• The Group has performed well and in line with the Board's expectations due to its geographical and operational diversity
• Kirkcaldy flour mill commissioned on time and within budget providing the expected financial benefits to the Food division
• New production facilities completed and operational at Wälischmiller in Germany
• Continued growth of the Agriculture division, with retail branch expansion together with increased brand and product recognition

Tim Davies, Chief Executive Officer, said:

"The period has clearly demonstrated the strength of the Group with its geographic diversity and operational balance delivering performance in line with our expectations. Throughout, our focus has been to invest for growth across each of our three divisions to deliver our strategic objectives.

I am delighted that our flour mill at Kirkcaldy was commissioned on time and within budget. This strategic investment, in the world's most technologically advanced flour mill, is delivering a step change in the financial performance of the Food division. In Agriculture, our increased brand recognition coupled with the severe winter conditions in the USA have driven the sales of blocks to record levels; however, this has been offset by mild weather conditions in the UK which resulted in a reduction in sales of some products. In Engineering, we have positioned the business so that we can benefit from the uplift in delayed nuclear contracts from Sellafield, which we believe will materialise in the short to medium term. Wälischmiller in Germany is performing well and is benefitting from the significant investment in new operational facilities and equipment, with the factory move now completed.

I have been encouraged by the performance of the business during the first six months, with each division making a solid contribution. The second half of the year has started well and the Board expects to deliver a full year performance in line with its current expectations."

1 Restated figures due to the adoption of the revised IAS19 accounting principles

Enquiries:

Notes to Editors

Carr's Milling Industries (CRM.L) is an international leader in the provision of essential industrial services focused on the Agriculture, Food and Engineering sectors. The Group offers a range of services including the manufacturing and supply of flour, robotic and remote handling equipment, farm machinery, feed blocks for livestock, and a UK network of rural stores, with a facility footprint spanning the UK, Europe and North America, supplying customers in 31 countries around the world.

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