Carrs Group Regulatory News (CARR)

9 Jan 2006 07:00

Carr's Milling Industries PLC09 January 2006 CARR'S MILLING INDUSTRIES PLC Chairman's AGM Statement At this morning's AGM in Carlisle of Carr's, the Cumbria-based agriculture, foodand engineering group, the Chairman, Lord (Richard) Inglewood, will make thefollowing statement: "This is my first AGM as Chairman of the Company and it is a pleasure to be ableto report on a successful year. In the 53 weeks to 3 September 2005, Carr's morethan doubled the size of its flour business, nearly doubled its compound andblended animal feed volumes, and achieved a seventh successive annual increasein adjusted earnings per share, with a 20% increase to 47.7p. Adjusted pre-taxprofit increased by a similar percentage to £6.14m, whilst the reported figurewas 76% higher at £9.02m. Total dividends per share of 16p, up 19% and threetimes covered by adjusted earnings per share, are proposed. Four months of the year to 2 September 2006 have now elapsed and Carr's remainson track for a further year of underlying profit growth, despite mixed trading. In Agriculture, feed-blocks in the UK and US are ahead of budget. In the UK,compound feed volumes and margins have moved below budget in a marketplace thatis experiencing a noticeable reduction in demand both in our trading area and inthe UK more generally. The integration of the W&J Pye business, which wasacquired in July by Carr's associate company, Carrs Billington Agriculture(Operations), and the rationalisation of the expanded business, is going well.The related sale of the former feedmills at Blackburn and Shrewsbury, whichbelonged to Pye, and Penrith, which belonged to CBAO, is progressing well. A newlow-moisture animal feed block plant to manufacture Crystalyx in Oldenburg,Germany, in joint venture with one of Germany's largest agricultural companies,will be commissioned later this month. Flour is trading ahead of budget and all three mills - Kirkcaldy and Maldon,which were acquired in November 2004, and Silloth - are trading well. In Engineering, much the smallest of the three Divisions, which returned toprofit last year, Bendalls is benefiting from August's smooth move into a newpurpose-built 5,000 sq m factory on the Kingstown Industrial Estate in Carlisle.Consent has recently been granted for the next generation tidal energy device,the 1 megawatt SeaGen turbine, for which Bendalls will manufacture parts of thestructure, to be installed in Strangford Lough, outside Belfast. Finally in thissector, Carr's MSM, which designs and manufactures master-slave manipulators inSwindon, is performing well. In conclusion, therefore, the Board is mindful of the reduced market forcompound animal feed and fertiliser and will take any necessary action shouldthe situation not improve. Despite the difficulties in UK agriculture, the Boardremains confident of continuing progress for the year given the strongperformances by the USA, Food and Engineering businesses." Enquiries: Carr's Milling Industries plc 01228-554 600Chris Holmes (Chief Executive Officer)Ron Wood (Finance Director) Bankside Consultants LimitedCharles Ponsonby 020-7367 8851 charles.ponsonby@bankside.com This information is provided by RNS The company news service from the London Stock Exchange