Interim Results

Carr's Milling Industries PLC
2 May 2001

             CARR'S MILLING INDUSTRIES PLC - INTERIM ANNOUNCEMENT

  * Carr's, the Cumbria-based agriculture, flour and engineering business,
    announces good progress in the half year to 3 March 2001, with underlying
    pre-tax profit up 23.4% at £1.442 million, but uncertain prospects as a
    result of foot and mouth disease (FMD), as indicated in its 19 March 2001
    announcement:

Half year to 3 March                        2001         2000 Increase

Turnover (£m)                               49.6         42.7             16.0%
Underlying PBT (£m)                        1.442        1.169             23.4%
Underlying EPS (p)                          11.1          9.5             16.8%
Dividend per share (p)                       3.0          3.0                 -
NAV per share (p)                          230.2        216.7              6.2%


  * In the UK, there was a strong sales performance from compound animal
    feed, fertiliser and Carr's manufactured feed blocks, Crystalyx and
    Horslyx, while in the USA Carr's low moisture feed blocks, Smartlic and
    Feed in a Drum, continued to gain market share.

  * Flour had a similar volume performance to the first half of last year,
    but the industry is again subject to predatory pricing and general
    weakness due to excess capacity.



  * Whilst engineering showed no improvement in the first half of this year,
    there are some encouraging signs of increased order book activity in the
    second half.



  * David Newton, Chairman, stated, 'Given the mobile backdrop of FMD, it is
    clearly impossible to attach any sort of accuracy to a year end forecast.
    Neither, given the many imponderables of when and at what levels customers
    will re-stock, can we have a definitive view at this time of what lies
    ahead for 2002.  However, we will feel the full effect of FMD in the
    second half year.



We can say, however,  that the Group will continue to be efficient and
proactive in order to play its full part in that future, as we have
successfully done in the past. It is also incumbent on us to continue to
explore other avenues of opportunity for the wider business of the Group, as
we have done with our feed block business in the USA'



Enquiries:



Carr's Milling Industries PLC             01228-528291
Chris Holmes (Chief Executive)
Ron Wood (Finance Director)

Bankside Consultants Limited              020-7220 7477
Charles Ponsonby


                      INTERIM STATEMENT OF THE CHAIRMAN



FINANCIAL OVERVIEW



By dint of the national disaster caused by foot and mouth disease (FMD), which
commenced on 20 February 2001 and continues, these interim results cannot be
used in the usual way as a pointer to the full year results.



However, the Group is properly required to report and comment at this time on
its results for the half year to 3 March 2001 on which FMD had no material
effect. These show good progress against the first half of last year, with
operating profit up 16.8% at £1.832 million on turnover 16.0% higher at £49.6
million.  After deducting a one-off gain on the disposal of fixed assets in
the period under review, profit before tax was up 23.4% at £1.442 million and
earnings per share were 16.8% higher at 11.1p.  On a reported basis, the
increases were 47.5% to £1.724 million and 42.1% to 13.5p, respectively.



Equity shareholders' funds of £18.408 million (2000 interim: £17.330 million)
represent net assets per share of 230.2p.



The increase in working capital resulting from the increase in turnover caused
gearing to rise to 61.3% (2000 interim: 51.3%) with net debt up £2.2 million
from last year to £11.3 million.  Gearing at 1 September 2001 is expected to
reduce to a similar level as last year, 41%.  Net interest payable, marginally
reduced at £0.390 million, was covered 4.7 times by underlying profit before
interest and tax.



DIVIDENDS



Despite the current uncertainties, the directors consider that it would be
appropriate to maintain the interim dividend at the same level as last year.
Therefore, an interim dividend of 3.0p per share will be paid on 1 June 2001
to shareholders on the register at close of business on 18 May 2001.



However, it should be added that this in no way should be regarded as a prime
indicator of the level of the full year final dividend.  This will depend as
always on results in the second half and, most importantly this year, the
directors' assessment at the time of the preliminary announcement of the
on-going consequences of FMD on our business prospects.



OPERATIONS



There was a strong sales performance from compound animal feed, fertiliser and
our manufactured feed blocks, 'Crystalyx' and 'Horslyx', in the UK.



Further progress was made in the USA, with our US branded low moisture feed
blocks, 'Smartlic' and 'Feed in a Drum', continuing to gain market share.



Integration of the Penrith, Cumbria animal feed mill, following the
acquisition of AF plc in June 2000, into our joint venture (Carrs Billington
Agriculture) has shown real benefits through flexible working arrangements
with CBA's two other mills at Carlisle, Cumbria and Stone, Staffordshire.



In September 2000 we acquired Central Farmers (2000) Limited, an agricultural
merchanting operation in Perthshire and Fife with an annual turnover of some £
6 million.  This business extends further north our agricultural branch
network and increases our number of branches by three to twelve.



Flour had a similar volume performance to the first half of last year, but the
industry is again subject to predatory pricing and general weakness owing to
excess capacity.



Whilst engineering showed no improvement in the first half of this year, there
are some encouraging signs of increased order book activity in the second
half, particularly at Bendalls, the largest of the three engineering
businesses, but timescales for completion of orders may not significantly
benefit the full year's results.



OUTLOOK



Being aware from its outbreak that FMD would have major consequences for our
core agri businesses, we issued a cautionary statement about our current
trading and full year expectations on 19 March 2001.  This stated that the
Spring months comprise the most important trading period for both animal feed
and fertiliser; with the North West of England and South West of Scotland, our
principal trading areas, being the major area of confirmed cases of FMD, our
trade had been and would continue to be severely disrupted.



Since that date, it has become even more clear that the early mismanagement,
unfounded optimism, and a serious lack of coordination leading to confusion
within government departments have not only compounded a major national
problem, but most certainly led to its wider and lengthier progression, to a
point where there are even now major questions arising on the economic future
for large areas of rural Britain.



Our support continues to be directed to our many devastated customers and it
is a fact of life that whatever the future holds for them will be reflected in
our own prospects, which are so closely bound to theirs.



Given this mobile backdrop, it is clearly impossible to attach any sort of
accuracy to a year end forecast.  Neither, given the many imponderables of
when and at what levels customers will re-stock, can we have a definitive view
at this time of what lies ahead for 2002.  However, we will feel the full
effect of FMD in the second half year.



We can say, however, that the Group will continue to be efficient and
proactive in order to play its full part in that future, as we have
successfully done in the past.  It is also incumbent on us to continue to
explore other avenues of opportunity for the wider business of the Group, as
we have done with our feed block business in the USA.





David A Newton                                      2 May 2001
Chairman




               INTERIM RESULTS - SIX MONTHS ENDED 3 MARCH 2001
                   CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                                     Six Months ended      Year
                                                                          ended
                                                   3 March    4 March         2
                                                                      September
                                                      2001       2000
                                                                           2000
                                                      £000       £000      £000
                                               (unaudited) (unaudited) (audited)
Turnover:  group and share of joint venture
Continuing operations                               53,291     43,491   104,186
Acquisitions                                         2,622          -         -
                                                    ______     ______    ______
                                                    55,913     43,491   104,186
Less: share of turnover of joint venture -         (6,344)      (749)   (6,192)
continuing operations
                                                    ______     ______    ______

Group turnover                                      49,569     42,742    97,994

                                                    ______     ______    ______

Group operating profit
Continuing operations                                1,892      1,576     3,470
Acquisitions                                          (65)          -         -

                                                    ______     ______    ______

Group operating profit                               1,827      1,576     3,470
Share of operating profit/(loss) in joint                5        (8)     (629)
venture

                                                    ______     ______   _______

Total operating profit:  group and share of          1,832      1,568     2,841
joint venture
Continuing operations
Investment income                                        -          -         1
Profit on disposal of investment                         -          -       111
Group share of profit on disposal of fixed
assets in joint venture                                282          -         -
                                                       
                                                    ______     ______    ______

Profit on ordinary activities before interest:       2,114      1,568     2,953
Interest receivable
Group                                                   60          9        21
Joint venture                                            -          8        12
Interest payable
Group                                                (445)      (416)     (820)
Joint venture                                          (5)          -         -

                                                    ______     ______    ______

Profit on ordinary activities before taxation:       1,724      1,169     2,166
Taxation                                             (630)      (396)     (700)

                                                    ______     ______    ______

Profit on ordinary activities after taxation:        1,094        773     1,466
Minority interests - equity                           (12)       (13)      (68)

                                                    ______     ______    ______

Profit attributable to the shareholders:             1,082        760     1,398
Dividends                                            (240)      (240)     (720)

                                                    ______     ______    ______

Retained profit:                                       842        520       678

                                                    ______     ______    ______

Earnings per ordinary share:
Basic                                                13.5p       9.5p     17.5p
Diluted                                              13.5p       9.5p     17.5p
Alternative basis                                    11.1p       9.5p     20.2p



               INTERIM RESULTS - SIX MONTHS ENDED 3 MARCH 2001
                         CONSOLIDATED BALANCE SHEET


                                               3 March     4 March 2 September
                                                  2001        2000        2000
                                                  £000        £000        £000
                                           (unaudited) (unaudited)   (audited)


Fixed assets:
Intangible assets                                   37          49          43
Tangible assets                                 18,502      18,160      18,620
Investment in joint venture:
  Share of gross assets                          5,023       1,275       4,379
  Share of gross liabilities                   (5,043)     (1,175)     (4,596)

                                                  (20)         100       (217)

Loan to joint venture                              250           -         550
Other investments                                   13          23          22

                                                ______      ______      ______

                                                18,782      18,332      19,018

Current assets:
Assets held for resale                              50          50          50
Stocks                                          12,790      10,172       7,895
Debtors                                         21,221      18,456      14,549
Cash at bank and in hand                           243         151         140

                                                ______      ______      ______

                                                34,304      28,829      22,634

Creditors:
Amounts falling due within one year           (30,624)    (25,828)    (19,771)

                                                ______     _______      ______

Net current assets:                              3,680       3,001       2,863



Total assets less current liabilities:          22,462      21,333      21,881



Creditors:
Amounts falling due after more than one        (1,924)     (1,926)     (2,157)
year
Provision for liabilities and charges          (1,528)     (1,458)     (1,534)
Deferred income                                  (262)       (317)       (290)

                                                 _____       _____       _____

                                                18,748      17,632      17,900

                                                ______      ______      ______



Capital and reserves:
Called-up share capital                          1,999       1,999       1,999
Share premium account                            4,698       4,698       4,698
Revaluation reserve                              2,077       2,511       2,093
Profit and loss account                          9,634       8,122       8,782

                                                ______      ______     _______

Equity shareholders' funds                      18,408      17,330      17,572
Minority interests - equity                        340         302         328

                                                ______      ______      ______

                                                18,748      17,632      17,900

                                                ______      ______      ______





               INTERIM RESULTS - SIX MONTHS ENDED 3 MARCH 2001

                       CONSOLIDATED CASH FLOW STATEMENT


                                                   3 March    4 March         2
                                                                      September
                                                      2001       2000
                                                                           2000
                                                      £000       £000      £000
                                               (unaudited) (unaudited) (audited)


Net cash (outflow)/inflow from continuing
operating activities                               (2,098)      2,423     6,984
                                                   
                                                    ______     ______    ______



Returns on investments and servicing of finance
Interest received                                       64          9         4
Interest paid                                        (366)      (391)     (796)
Interest paid on finance leases                       (57)       (32)      (70)
Investment income received                               -          -         1

                                                    ______     ______    ______

Net cash outflow from returns on investments
and servicing of finance                             (359)      (414)     (861)
                                                     
                                                    ______     ______    ______

Taxation                                             (360)       (65)     (478)

                                                    ______     ______    ______

Capital expenditure and financial investment
Purchase of tangible fixed assets                    (785)      (720)   (1,121)
Sale of tangible fixed assets                           46         84       200
Sale of assets held for resale                           -        278       257
Sale of investment                                       -          -       112
Repayment of loan to joint venture                     300          -         -
Loan to joint venture                                    -          -     (550)

                                                    ______     ______    ______

                                                     (439)      (358)   (1,102)

                                                    ______     ______    ______

Acquisitions and disposals
Purchase of subsidiary undertaking                    (11)          -         -
Bank overdraft acquired in subsidiary                (562)          -         -
undertaking
Investment in joint venture                              -          -     (150)

                                                    ______     ______    ______

                                                     (573)          -     (150)

                                                    ______     ______    ______



Equity dividends paid                                (480)      (400)     (640)

                                                    ______     ______   _______

Cash (outflow)/inflow before management of
liquid resources and financing                     (4,309)      1,186     3,753
                                                   
                                                    ______     ______   _______

Financing                                             (66)      (678)   (1,489)

                                                    ______     ______    ______

(Decrease)/increase in cash                        (4,375)        508     2,264

                                                    ______     ______    ______



NOTES





1.      The acquisition in the period relates to Central Farmers (2000)
Limited, which was acquired in September 2000.



2.      The tax charges for the six months ended 3 March 2001 and 4 March 2000
are based on the estimated tax charge for the applicable year.



3.      The overseas estimated tax charge for the six months ended 3 March
2001 is £309,000 (2000 interim:  £287,000;  year ended 2000:  £158,000)



4.      The share of the joint venture's estimated tax charge for the six
months ended 3 March 2001 is £85,000 (2000 interim:  nil; year ended 2000: tax
credit £150,000).



5.      The equity dividend for the six months ended 3 March 2001 is 3.0p per
share (2000 interim;  3.0p per share;  year ended 2000:  9.0p per share).



6.      The calculation of basic earnings per share is based on profits
attributable to shareholders of £1,082,000 (2000 interim:  £760,000;  year
ended 2000:  £1,398,000) and on 7,996,639 (2000 interim: 7,996,639; year ended
2000: 7,996,639) shares , being the weighted average number of shares in issue
during the period.



The calculation of diluted earnings per share is based on profits of £
1,082,000 and the weighted average number of shares in issue is adjusted to
assume conversion of all dilutive potential ordinary shares.  The weighted
average number of shares is increased to 8,005,376 shares (2000 interim:
8,002,781; year ended 2000: 8002,993).



Exceptional costs charged against the operating profit and non-operating
exceptional gains and losses do not relate to the profitability of the Group
on an ongoing basis.  Therefore an alternative earnings per share is presented
as follows:


                           Six months ended  Six months ended        Year ended
                               3 March 2001      4 March 2000  2 September 2000
                                   Earnings          Earnings          Earnings
                          Earnings      per Earnings      per Earnings      per
                                      share             share             share
                              £000    pence     £000    pence     £000    pence



Earnings per share           1,082     13.5      760      9.5    1,398     17.5

Exceptional items:

Continuing operations        (282)    (3.5)        -        -    (111)    (1.4)

Share of reorganisation
costs in joint venture           -        -        -        -      432      5.4

Taxation arising on
exceptional items               85      1.1        -        -    (103)    (1.3)
                               
                            ______   ______   ______   ______   ______   ______

Earnings excluding
exceptional items and
alternative earnings per
share                         885     11.1      760      9.5    1,616     20.2

                            ______   ______   ______   ______   ______   ______



7.      Cash flow from continuing operating activities


                                                  Six months ended   Year ended
                                                3 March    4 March  2 September
                                                   2001       2000         2000
                                                   £000       £000         £000
                                           (unaudited) (unaudited)    (audited)

Group operating profit                            1,827      1,576        3,470
Depreciation charge                                 995        945        1,927
Loss/(profit) on disposal of fixed assets             4       (41)         (17)
Goodwill amortisation                                 6         11           17
Grants amortisation                                (28)       (28)         (55)
Increase in stocks                              (4,895)    (2,449)        (172)
(Increase)/decrease in debtors                  (6,684)    (2,358)        1,568
Increase in creditors                             6,657      4,949          434
Increase/(decrease) in provisions                    20      (182)        (188)

                                                 ______     ______       ______

Net cash (outflow)/inflow from continuing
operating activities                            (2,098)      2,423        6,984
                                                
                                                 ______     ______       ______


8.      The accounts for the year ended 2 September 2000 have been reported on
by the auditors and delivered to the Registrar of Companies.  The report of
the auditors was unqualified.  This interim statement for the six months ended
3 March 2001 was approved by a duly appointed and authorised committee of the
Board of Directors on 1 May 2001.  The interim statement has neither been
audited nor reviewed by the auditors.  This interim statement has been
prepared in accordance with the accounting policies set out in the Group's
Report and Accounts for the year ended 2 September 2000.



9.      This interim report is being sent by post to all registered
shareholders.   Copies are also available to the public from the Company's
registered office:  Old Croft, Stanwix, Carlisle, CA3 9BA.