AGM Statement / Acquisition

Carr's Milling Industries PLC
09 January 2007


 

                         CARR'S MILLING INDUSTRIES PLC                          

                     Chairman's AGM Statement / Acquisition                     


AGM STATEMENT

At this morning's AGM in Carlisle of Carr's, the Cumbria-based agriculture, food
and engineering group, the Chairman, Lord (Richard) Inglewood, will make the
following Statement:

'In the 52 weeks to 2 September 2006, Carr's achieved an eighth successive
annual increase in both adjusted pre-tax profit and adjusted basic earnings per
share. Revenue increased by 26.3% to £242.6m, partially due to the inclusion for
the full year of the Pye animal feed business acquired by an associate in July
2005 and of the Meneba flour business acquired in November 2004. On an adjusted
basis (as defined in the Preliminary Announcement of 13 November 2006), pre-tax
profit was up 9.2% at £7.3m and basic earnings per share rose 17.3% to 59.7p.
Reflecting the Group's progressive dividend policy, its good performance and the
strength of its business, the Board is proposing an increase in the final
dividend per share of 13.6% to 12.5p, making a total for the year of 18.0p, up
12.5% and covered 3.3 times by adjusted basic earnings per share.

Four months of the year to 1 September 2007 have now elapsed and prospects
remain substantially as set out in the Preliminary Announcement.

In Agriculture, trading is favourable in feed blocks (in each of the UK, the USA
and Germany), retail/machinery and oil distribution. In the UK, the farm gate
milk price received by our customers remains low and continues to have a
negative impact on our margins for compound feed and on sales of fertiliser.
Farmers are holding off fertiliser purchases at this early stage of the season
to an even greater extent than last year. All three joint venture feed companies
established in 2006 - Afgritech in England, Bibby Agriculture in Wales and
Crystalyx Products in Germany - have started well. Indeed, the new plant at our
feed mill at Langwathby (Cumbria) to produce by-pass protein for ruminant
animals was commissioned, on target, in November and the early results are
encouraging.

As predicted in the Preliminary Announcement, the massive increase in wheat
prices, combined with high energy costs, will make it a tough year for food.
There remains an inevitable lag in successfully passing on cost increases to
customers. With little change likely in the foreseeable future, we are
continuing to look for both cost savings and volume increases to protect the
bottom line.

Engineering, much the smallest of the three Divisions, is trading slightly ahead
of budget, but, as predicted in the Preliminary Announcement, will do well to
match last year's improved result.

The Board continues to believe that to achieve a ninth successive increase in
Group profit before tax will be challenging, but is feasible. Across the Group,
everyone is striving to ensure that all opportunities are exploited fully to try
to maintain our record of profit increases.
 

ACQUISITION

Finally, I can announce a small acquisition which completed yesterday. Johnstone
Fuels & Lubricants Limited is an oil distribution business with three depots in
that part of south-west Scotland served by our Agriculture business - at
Dumfries, Castle Douglas and Newton Stewart. In the year ended 30 April 2006,
Johnstone reported an audited turnover of £13.5m and, at that date, it had gross
assets of £2,807,000 and shareholders' funds of £859,000. Johnstone's business
will complement the oil distribution business of Wallace Oils, which was
acquired in April 2005 and operates out of three depots in north-west England
and south-west Scotland.'
 

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  
                                                 [e-mail] 

 



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