Carrs Group Regulatory News (CARR)

8 Jan 2008 07:00

Carr's Milling Industries PLC08 January 2008 Tuesday 8 January 2008 CARR'S MILLING INDUSTRIES PLC - INTERIM MANAGEMENT STATEMENT "Carr's remains on track" Today, to coincide with its Annual General Meeting in Carlisle, Carr's (CRM.L),the agriculture, food and engineering group, is publishing its first InterimManagement Statement, as required by the UK Listing Authority's Disclosure andTransparency Rules. This Statement replaces the usual Chairman's AGM Statementwith regard to current trading and prospects in relation to the year to 30August 2008. "At the time of our Preliminary Announcement of 12 November 2007, we stated that"Trading in the new financial year has started well, overall, and is in linewith our expectations." Almost two months on, we have experienced a furtherslight improvement. Trading for the quarter to 1 December 2007 was ahead of bothbudget and last year's actual, and subsequent trading has accentuated thattrend. It is a promising start to the year. However, the outcome for the year to30 August 2008 will be influenced by the price of milling wheat for the month ofAugust, which is currently difficult to predict. In Agriculture, volumes of compound and blended feed are up on the comparableperiod last year, reflecting an improvement in demand from dairy farmers, thedivision's most important customer grouping. Revenues will be well up as aresult of price increases following the sharp increases in the cost of theprincipal raw material, feed wheat. Volumes of low moisture feedblocks are alsoahead of last year in each of the UK, the USA and Germany. In the UK, volumeincreases have accelerated after a slow start to the year; in the USA, theyarise from gains in market share. Revenue from the sale of fertilisers in theyear to date are more than double, reflecting substantial increases in bothvolume and price, as farmers have bought early to secure supplies against abackground of sharply rising worldwide demand. Trading in the retail suppliesbusiness is little changed, whilst sales of machinery are down following astrong performance in the past three years. Oil sales have doubled following theacquisition of Johnstone Fuels & Lubricants in January 2007. The Group's Flour business experienced substantially increased revenue onsimilar volumes following price increases to compensate for the large increasein the cost of wheat. The wheat market remains uncertain, with prices continuingto rise, albeit less sharply than in the closing months of the previousfinancial year. Profitability, whilst still unsatisfactory, is benefiting fromtwo general price increases put in train since August. Demand has been less eventhan usual as a consequence of the flour price increases, causing someoperational inefficiencies. Despite this, manufacturing costs are on budget andlower than last year,reflecting the management action taken last year. Trading in the Engineering business, much the Group's smallest, is expected tobe mildly positive relative to last year. A consequence of the substantial increase in the Group's sales activity, bothvolumes and prices, is an increase in the level of net debt. At 1 December 2007,it was £24.6m, which compares with £19.2m a year earlier. However, more thanadequate facilities are in place to meet the higher level of working capital inthe months ahead. Overall, Carr's remains on track and conditions remain favourable for aresumption in the upward trend in the Group's results." Enquiries: Carr's Milling Industries plc 01228-554 600Chris Holmes (Chief Executive Officer)Ron Wood (Finance Director) Bankside Consultants Limited 020-7367 8851Charles Ponsonby This Interim Management Statement has been drawn up and presented for thepurposes of complying with English law. Any liability arising out of or inconnection with this Interim Management Statement will also be determined inaccordance with English law. This Interim Management Statement may contain 'forward-looking statements'. Bytheir nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances. Many of these risks and uncertainties relate to factors beyond the Group's control or which cannot beestimated precisely, such as future market conditions and the behaviour of themarket participants. Actual outcomes and results may therefore differ materially from any outcomes or results expressed or implied by any suchforward-looking statements. Nothing in this Interim Management Statement is intended to be a profit forecast. This information is provided by RNS The company news service from the London Stock Exchange