Carrs Group Regulatory News (CARR)

26 Apr 2006 07:01

Carr's Milling Industries PLC26 April 2006 CARR'S MILLING INDUSTRIES PLC - INTERIM ANNOUNCEMENT Carr's, the Cumbria-based agriculture, food and engineering group, announces afurther substantial advance in adjusted earnings per share in the 26 weeks to 4March 2006, following seven successive annual increases. Financial Highlights - Revenue increased by 40.8% to £110.39m ( 2005: £78.42m) - Adjusted pre-tax profit* was 18.2% higher at £4.57m ( 2005: £3.87m) - Adjusted basic earnings per share* were up 21.7% at 38.7p (2005: 31.8p) - Reflecting the Group's progressive dividend policy, the interim dividend per share is increased by 10.0% to 5.5p (2005: 5.0p) *Adjusted excludes exceptional items, the write-back of goodwill and theamortisation of intangible assets but includes share of profit in associate andjoint venture. Commercial Highlights - The contribution from Agriculture decreased, but Agriculture still remained by some way the largest divisional contributor, albeit with the lowest margin. Management has taken action to address this situation. The lower contribution reflected a further deterioration in the UK market as a result of delays in farmers' receiving the initial Single Farm Payment subsidy, the low price of milk and animals feeding outside in the mild winter weather. - Food, notably the enlarged flour business, traded strongly, making an important contribution to the Group total and ahead of budget. - Engineering, much the smallest of the three Divisions, further improved its profit, making a useful contribution to the Group total. Richard Inglewood, Chairman, stated: "Carrs continues to experience adverseconditions in its principal market, UK agriculture. This is nothing new for acompany which has had to contend with BSE in 1996, foot and mouth disease in2001 and a prolonged period of decline in UK agriculture. In the last decade,Carrs' management has successfully adapted the Group to changed circumstancesand has taken advantage of opportunities to increase profits both in and outsideUK agriculture. As a result, further good progress in the business is expectedin the current year". Presentation: Today, there will be a presentation to brokers' analysts and private clientinvestment advisers between 13.00 and 14.00, over a sandwich lunch, at theoffices of Bankside Consultants, 1 Frederick's Place, London EC2R 8AE. 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 CHAIRMAN'S INTERIM STATEMENT In the 53 weeks to 3 September 2005, the Group more than doubled the size of itsflour business, nearly doubled its compound and blended animal feed volumes, andachieved a seventh successive annual increase in adjusted earnings per share. In the 26 weeks to 4 March 2006, a further substantial advance was made inadjusted earnings per share, benefiting from the effect of a full period oftrading for the Pye acquisition by Agriculture in July 2005 and the Menebaacquisition by Food in November 2004. Despite continuing challenging conditionsin the Group's principal market, UK agriculture, prospects remain good. FINANCIAL REVIEW The figures have, for the first time, been prepared under InternationalFinancial Reporting Standards ("IFRS") and those for 2005 have been restated ona comparable basis. Revenue increased by 40.8% to £110.39m (2005: £78.42m), with all three Divisions- Agriculture, Food and Engineering - reporting substantial growth. This growthreflected the acquisition of Pye by our associate agricultural company in July2005 and the Meneba acquisition by Food in November 2004. Adjusted operating profit was up 22.3% at £5.27m (2005: £4.31m), an operatingmargin of 4.8% (2005: 5.5%). Adjusted figures exclude exceptional items, thewrite-back of goodwill and the amortisation of intangible assets (the value ofcustomer relationships and brands) in connection with the Meneba acquisition (asset out in Note 3) but include share of operating profit in associate and jointventure. Adjusted pre-tax profit advanced by 18.2% to £4.57m (2005: £3.87m) andadjusted earnings per share improved by 21.7% to 38.7p (2005: 31.8p), benefitingfrom a lower effective tax rate. Adjusted pre-tax profit totalled £3.97m (2005:£8.67m) and earnings per share were 34.7p (2005: 85.8p). Taking into account net retirement benefit obligations, as required under IFRS,of £9.03m (2005: £8.07m), period end shareholders' equity increased by 6.4% to£22.08m (2005: £20.76m), representing net assets per share of 268.1p (2005:255.9p). With net debt marginally down at £21.68m (2005: £21.80m), gearingdecreased to 98.2% (2005: 105.0%), at a seasonal high point. Net interestpayable of £0.70m (2005: £0.44m) was covered 6.9 times (2005: 11.7 times) byoperating profit. INTERIM DIVIDEND Reflecting the Group's progressive dividend policy, the Board has declared anincreased interim dividend per share of 5.5p, up 10.0% from 2005's 5.0p, to bepaid on 31 May 2006 to shareholders on the register at close of business on 5May 2006, with an ex-dividend date of 3 May 2006. BUSINESS REVIEW Overall, Carr's businesses achieved a further increase in profit, supported bythe enlarged flour business, despite a difficult agricultural market where stepshave been taken to remedy the situation. Agriculture Agriculture's profit decreased, but it still remained by some way the largestdivisional contributor, albeit with the lowest margin. This reflected a furtherdeterioration in the UK market for agriculture, including in the Group'sprincipal trading area of North West England and South West Scotland, as aresult of delays in farmers' receiving subsidies (in the form of the initialSingle Farm Payment), the low price of milk and animals feeding outside in themild winter weather. In addition, margins were squeezed due to higher energycosts. Feed The Group's animal feed business comprises: Operation Product Location Caltech and Low moisture feed block Silloth (Cumbria) Animal Feed Supplement Belle Fourche (South Dakota, USA) Poteau (Oklahoma, USA) Crystalyx Products Low moisture feed block Oldenburg (Germany) (in association with Agravis Raiffeisen) Carrs Billington Agriculture Compound feed Carlisle (Cumbria) (in association with Edward Lancaster (Lancashire)Billington & Sons Ltd) Langwathby (Cumbria) Stone (Staffordshire) Blended feed Askrigg (North Yorkshire) Kirkbride (Cumbria) Lancaster (Lancashire) Feed block revenue increased in both the USA and the UK, ahead of budget. In2005, new products were launched to the equine markets, Horslyx in the USA andMinilick in the UK , and both are proving successful. The new low moisture feedblock plant to manufacture Crystalyx in Oldenburg, Germany, in joint venturewith one of Germany's largest agricultural companies, was commissioned inJanuary on time and within the capital cost budget. The initial productionprogramme generated a product of excellent quality. The compound and blended feed businesses had to contend with a market place thatis experiencing a noticeable reduction in demand, impacting volumes and margins.To address these conditions and serious industry over-production, during theperiod compound feed mills at Blackburn (Lancashire), Penrith (Cumbria) andShrewsbury (Shropshire) were closed. The integration of the remaining Pyebusinesses, whilst not without its problems, has gone well. The sale of thePenrith and Shrewsbury properties, for an aggregate cash consideration of £2.3m,was completed in March 2006, subsequent to the period end. Bibby Agriculture, the joint venture company formed in September 2005 in whichCarrs Billington Agriculture is a 50% shareholder, has made a good startmarketing animal feed, fertiliser and other farm requirements in Wales and it isexpected that this will make a positive contribution to the Group's results inthe current year. Fertiliser Carr's Fertilisers has three manufacturing and blending sites, at Invergordon(Easter Ross), Montrose (Angus) and Silloth (Cumbria), producing a wide range offertilisers. Fertiliser revenue was down and margins were squeezed, reflecting primarilyeconomic but also climatic factors, notably the uncertainty of the timing of theinitial Single Farm Payment, farmers' reluctance to pay energy-related higherprices and a strong comparative period in 2005. Retail and Machinery Carr's Retail comprises 14 branches (of which 9 owned by the Group and 5 byCarrs Billington Agriculture) from Perth in the North to Leek (Staffordshire) inthe South, selling farm supplies. Carr's Machinery distributes new and usedagricultural and ground care machinery from six of these branches, in the Northof England and South West of Scotland. Retail and Machinery revenue was ahead of budget. Food Carr's principal food companies are Carr's Flour Mills, with a flour mill atSilloth (Cumbria), Hutchisons at Kirkcaldy (Fife) and Greens at Maldon (Essex). The Division substantially increased its profit, making an importantcontribution to the Group total, ahead of budget, and benefited from the fullimpact of the cost reductions following the integration of the two newlyacquired mills. All three mills operated at close to capacity as volumes to selected industrialcustomers continue to grow, as do sales of the Carrs Breadmaker retail products.The Silloth mill benefited from normal volumes to the United Biscuits factory inCarlisle, badly affected in the previous year by the January 2005 floods. Aflour price increase was implemented in September 2005, offsetting sharpincreases in the cost of electricity and distribution. Engineering Engineering comprises Bendalls and R Hind, both of which are based in Carlisle,and Carrs MSM, which is based in Swindon. Bendalls, whose specialism isprecision welding, designs and manufactures process plant and equipment; R Hindprovides vehicle bodybuilding and accident repairs for cars and commercialvehicles; and Carrs MSM designs and manufactures master slave manipulators,which are key components for many industries but notably the nuclear industry. In the period under review, Engineering further improved its result, making auseful contribution to profit. This reflected July's smooth move by Bendalls toa new purpose-built 55,000 sq ft factory in Carlisle which has aided operationalefficiencies and enabled a steady flow of work. BOARD As was reported in the preliminary announcement of 21 November 2005, inSeptember 2005 I was appointed Chairman and Alistair Wannop a non-executiveDirector, bringing non-executive Directors to three and independentnon-executive Directors to two. OUTLOOK Agriculture Since the period end, the market for compound and blended feed continues to bechallenging. The recent announcement that farmers are to receive interimpayments from the government because their full subsidies have been delayed istoo late to have an impact on current trading. Sales and margins of fertiliserin its peak months of March and April have remained disappointing. Whilst feedblocks continue to trade successfully in both the USA and the UK, a reducedcontribution from Agriculture in the current year is expected. Food Flour continues to trade strongly in a satisfactory market. In the current year,flour will benefit from last year's successful integration of the Menebaoperations into the existing flour milling business and from the effect of afull year's ownership of the latter. Accordingly, a further substantial increasein Food's contribution to Group profit is confidently expected. Engineering Engineering will continue to benefit from Bendalls' more efficient premises. Thelevel of enquiries to Bendalls and Carrs MSM from BNFL at Sellafield in WestCumbria, in respect of nuclear decommissioning work, augurs well for the future.The next generation tidal energy device, SeaGen, for which Bendalls willmanufacture parts of the structure, is to be installed later this year inStrangford Lough, outside Belfast. Overall Carrs continues to experience adverse conditions in its principal market, UKagriculture. This is nothing new for a company which has had to contend with BSEin 1996, food and mouth disease in 2001 and a prolonged period of decline in UKagriculture. In the last decade, Carrs' management has successfully adapted theGroup to changed circumstances and has taken advantage of opportunities toincrease profits both in and outside UK agriculture. As a result, further goodprogress in the business is expected in the current year. Richard InglewoodChairman 26 April 2006 CONSOLIDATED INCOME STATEMENT for the 26 weeks ended 4 March 2006 26 weeks 26 weeks 53 weeks ended ended ended 4 March 26 February 3 September 2006 2005 2005 £'000 £'000 £'000 ------------------------------- --------- --------- --------- Continuing operations Revenue 110,388 78,420 192,124 Net operating expenses (106,143) (69,542) (179,860) ------------------------------- --------- --------- ---------Operating profit 4,245 8,878 12,264 ------------------------------- --------- --------- --------- Analysed as: Operating profit before exceptional items 4,245 4,838 8,154 Profit on disposal of property, plant and equipment - 4,040 4,110 ------------------------------- --------- --------- ---------Operating profit 4,245 8,878 12,264 ------------------------------- --------- --------- --------- Net finance costs (579) (414) (1,198) Share of post-tax profit/(loss) in associate and joint venture 299 203 (462) ------------------------------- --------- --------- ---------Profit before taxation 3,965 8,667 10,604 Income tax expense (1,130) (1,640) (2,557) ------------------------------- --------- --------- ---------Profit for the period from continuing operations 2,835 7,027 8,047 ------------------------------- --------- --------- --------- (Loss)/profit attributable to minority interest (14) 80 329 Profit attributable to equity shareholders 2,849 6,947 7,718 ------------------------------- --------- --------- --------- 2,835 7,027 8,047 ------------------------------- --------- --------- --------- ------------------------------- --------- --------- --------- Earnings per share (pence) Basic 34.7 85.8 95.0 Diluted 34.3 85.6 93.1 ------------------------------- --------- --------- --------- CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE for the 26 weeks ended 4 March 2006 26 weeks 26 weeks 53 weeks ended ended 4 March 26 February ended 2006 2005 £'000 £'000 3 September 2005 £'000 ------------------------- --------- ---------- ----------- Currency translation differences 153 (201) (80) Actuarial losses on retirement benefit obligation: - Group (972) (772) (1,543) - Share of associate - (471) (944) Taxation on items taken directly to equity: - Group 292 232 463 - Share of associate - 141 283 ------------------------- --------- ---------- -----------Net expense recognised directly in equity (527) (1,071) (1,821) Profit for the period 2,835 7,027 8,047 ------------------------- --------- ---------- -----------Total recognised income for the period 2,308 5,956 6,226 ------------------------- --------- ---------- ----------- Attributable to minority interest (14) 80 329 Attributable to equity shareholders 2,322 5,876 5,897 ------------------------- --------- ---------- ----------- 2,308 5,956 6,226 ------------------------- --------- ---------- ----------- CONSOLIDATED BALANCE SHEET as at 4 March 2006 As at 4 As at 26 As at 3 February September 2005 2005 March 2006 £'000 £'000 £'000 ----------------------- ---------- ---------- ----------Assets Non-current assets Goodwill 155 40 400 Intangible assets 1,249 2,248 1,738 Property, plant and equipment 30,106 25,911 29,660 Investment in associate 1,092 1,796 800 Interest in joint venture 863 - 172 Other investments 255 255 255 Financial assets - Derivative financial instruments 7 37 - Deferred tax assets 4,286 3,754 3,962 ----------------------- ---------- ---------- ---------- 38,013 34,041 36,987 ----------------------- ---------- ---------- ---------- Current assets Inventories 19,365 18,826 12,947 Trade and other receivables 40,004 37,485 35,506 Cash and cash equivalents 94 728 3,149 ----------------------- ---------- ---------- ---------- 59,463 57,039 51,602 ----------------------- ---------- ---------- ---------- ----------------------- ---------- ---------- ----------Total assets 97,476 91,080 88,589 ----------------------- ---------- ---------- ---------- Liabilities Current liabilities Financial liabilities - Borrowings (15,131) (12,940) (10,666) Trade and other payables (31,959) (28,481) (29,318) Current tax liabilities (1,773) (1,301) (1,581) ----------------------- ---------- ---------- ---------- (48,863) (42,722) (41,565) ----------------------- ---------- ---------- ---------- Non-current liabilities Financial liabilities - Borrowings (6,641) (9,585) (7,399) - Derivative financial instruments (33) - (106) Retirement benefit obligations (12,905) (11,522) (12,119) Deferred tax liabilities (3,712) (3,834) (3,854) Other non-current liabilities (1,550) (1,306) (1,287) ----------------------- ---------- ---------- ---------- (24,841) (26,247) (24,765) ----------------------- ---------- ---------- ---------- ----------------------- ---------- ---------- ----------Total liabilities (73,704) (68,969) (66,330) ----------------------- ---------- ---------- ---------- ----------------------- ---------- ---------- ----------Net assets 23,772 22,111 22,259 ----------------------- ---------- ---------- ---------- Shareholders' equity Ordinary shares 2,058 2,028 2,053 Share premium 5,004 4,826 4,977 Foreign exchange reserve 73 (201) (80) Other reserve 1,616 1,648 1,632 Retained earnings 13,325 12,458 11,967 ----------------------- ---------- ---------- ----------Total shareholders' equity 22,076 20,759 20,549 Minority interests in equity 1,696 1,352 1,710 ----------------------- ---------- ---------- ---------- Total equity 23,772 22,111 22,259 ----------------------- ---------- ---------- ---------- CONSOLIDATED CASH FLOW STATEMENT for the 26 weeks ended 4 March 2006 26 weeks 26 weeks 53 weeks ended ended ended 4 March 26 February 3 September 2005 2005 2006 £'000 £'000 £'000 ----------------------------- --------- --------- --------- Cash flows from operating activities Cash generated from operations (1,579) (4,376) 6,644 Interest received 233 36 95 Interest paid (888) (346) (1,195) Tax paid (1,011) (865) (1,855) ----------------------------- --------- --------- ---------Net cash (outflow)/inflow from operating activities (3,245) (5,551) 3,689 ----------------------------- --------- --------- --------- Cash flows from investing activities Acquisition of subsidiaries (net of cash acquired) - (9,151) (10,256) Investment in joint venture (685) - (172) Proceeds from sale of property, plant and equipment 111 1,297 3,114 Purchase of property, plant and equipment (1,488) (1,389) (3,396) Purchase of investments - (2) (2) ----------------------------- --------- --------- ---------Net cash outflow from investing activities (2,062) (9,245) (10,712) ----------------------------- --------- --------- --------- Cash flows from financing activities Net proceeds from issue of ordinary share capital 32 83 260 Net proceeds from issue of new bank loans and other borrowings 1,532 8,500 13,668 Finance lease principal repayments (529) (353) (804) Repayment of borrowings (650) (400) (1,375) Dividends paid to shareholders (904) (730) (1,137) ----------------------------- --------- --------- ---------Net cash (outflow)/inflow from financing activities (519) 7,100 10,612 ----------------------------- --------- --------- --------- Effects of exchange rate changes 35 (24) (8) ----------------------------- --------- --------- ---------Net (decrease)/increase in cash and cash equivalents (5,791) (7,720) 3,581 Cash and cash equivalents at beginning of the period 2,503 (1,078) (1,078) ----------------------------- --------- --------- ---------Cash and cash equivalents at end of the period (3,288) (8,798) 2,503 ----------------------------- --------- --------- --------- Cash and cash equivalents consists of: Cash at bank and in hand 94 728 3,149 Bank overdrafts included in borrowings (3,382) (9,526) (646) ----------------------------- --------- --------- --------- (3,288) (8,798) 2,503 ----------------------------- --------- --------- --------- NOTES TO THE INTERIM STATEMENT 1 General information and basis of preparation These interim consolidated financial statements of Carr's Milling Industries PLCare for the 26 weeks ended 4 March 2006. The basis of preparation of theconsolidated financial statements is subject to ongoing review and endorsementby the European Commission (EC), or possible amendment by the InternationalAccounting Standards Board (IASB). Accordingly, the information presented andthe format of presentation may be subject to change. Further standards orinterpretation may also be issued that could be applicable. These potentialchanges could result in the need to change the basis of accounting orpresentation of certain financial information presented in this document. Carr's Milling Industries PLC consolidated financial statements were prepared inaccordance with UK GAAP until 3 September 2005. UK GAAP differs in several areasfrom IFRS. In preparing Carr's Milling Industries PLC consolidated interimfinancial statements, management has amended certain accounting and valuationmethods applied in the UK GAAP financial statements to comply with IFRS. Thecomparative figures in respect of 2004/05 were restated to reflect theseadjustments. Reconciliations and descriptions of the effect of the transitionfrom UK GAAP to IFRS on the Group's equity and its net income together with thesignificant accounting policies were prepared and issued to members in April2006. The significant accounting policies have been applied consistentlythroughout the period and from 28 August 2004, the transition date to IFRS. The results for the 26 weeks to 4 March 2006 have not been audited and wereapproved by the Board of Directors on 26 April 2006. The summary of results forthe 53 weeks ended 3 September 2005 does not constitute the full financialstatements within the meaning of s240 of the Companies Act 1985. The fullfinancial statements for that period, prepared under UK GAAP, have been reportedon by the Group's auditors and delivered to the Registrar of Companies. Theaudit report was unqualified and did not contain a statement under s237(2) ors237(3) of the Companies Act 1985. The income statement, the cash flow statement and the statement of recognisedincome and expense for the comparative period to 26 February 2005 and the 53weeks ended 3 September 2005, as well as the balance sheets at 26 February 2005and 3 September 2005, and the related notes contained within this report haveneither been reviewed nor audited by the Group's auditors. 2 Taxation The tax charges for the 26 weeks ended 4 March 2006 and 26 February 2005 arebased on the estimated tax charge for the applicable year. 3 Adjusted operating profit 26 weeks ended 4 March 2006 26 February 2005 Reported operating profit 4,245 8,878 Amortisation of intangible asset 474 332 Cost of reorganisation of Food Division - 350 Profit on disposal of property - (4,040) Goodwill adjustment - (1,532) Share of operating profit in associate and 548 317 joint venture ----------- --------------------------------- Adjusted operating profit 5,267 4,305 --------------------- ----------- ------------ 4 Earnings per share The calculation of earnings per ordinary share is based on earnings attributableto shareholders and the weighted average number of ordinary shares in issueduring the period. The adjusted earnings per share figures have been calculated in addition to theearnings per share required by IAS33 - 'Earnings per Share' and is based onearnings excluding the effect of intangible asset amortisation and exceptionalitems. It has been calculated to allow the shareholders to gain an understandingof the underlying performance of the Group. Details of the adjusted earnings pershare are set out below: 26 weeks ended 53 weeks ended 4 March 26 February 3 September 2005 2005 2006 £'000 £'000 £'000 Earnings 2,849 6,947 7,718 Intangible asset amortisation and exceptional items: Cost of reorganising Food Division - 350 350 Cost of reorganising Associate - - 885 Profit on disposal of fixed assets - (4,040) (4,110) Release of negative goodwill - (1,532) (1,526) Amortisation of intangible asset 474 332 996 Taxation (142) 514 57 ---------- --------- ----------Adjusted earnings 3,181 2,571 4,370 ---------- --------- ---------- Weighted average number of ordinary 8,221,079 8,094,371 8,127,328 shares in issue Potentially dilutive share options 96,172 21,617 158,591 ---------- --------- ---------- 8,317,251 8,115,988 8,285,919 ---------- --------- ---------- Basic earnings per share 34.7p 85.8p 95.0p Diluted earnings per share 34.3p 85.6p 93.1p Adjusted earnings per share 38.7p 31.8p 53.8p 5 Dividends 26 weeks ended 53 weeks ended 4 March 26 February 3 September 2005 2005 2006 £'000 £'000 £'000 Ordinary: Final dividend of 11.0p per share 904 727 727 (2005: 9.0p) Ordinary: Interim dividend of 5.0p per share - - 410 --------- --------- ---------- 904 727 1137 --------- --------- ---------- The directors have approved an interim dividend of 5.5p per share (2005 5.0p pershare) which, in line with the requirements of IAS10 - 'Events after the BalanceSheet Date', has not been recognised within these results. This results in aninterim dividend of £453,000 (2005 £410,000) which will be paid on 31 May 2006to shareholders whose names are on the Register of Members at the close ofbusiness on 5 May 2006. The ordinary shares will be quoted ex-dividend on 3 May2006. 6 Changes in shareholders' equity (unaudited) Attributable to Equity Holders of the Company Minority Total Interest Equity £'000 £'000 Share Share Foreign Retained Other Capital Premium Exchange Earnings Reserves £'000 Account Reserve £'000 £'000 £'000 £'000 At 4 September 2005 2,053 4,977 (80) 11,967 1,632 1,710 22,259 Adjusted fair value of business 77 77 combination Total recognised income and 153 2,169 (14) 2,308 expense for the period Dividend (904) (904) Share issues 5 27 32 Transfer 16 (16) At 4 March 2006 2,058 5,004 73 13,325 1,616 1,696 23,772 7 Cash flow from operating activities (unaudited) 26 weeks ended 53 weeks ended 4 March 2006 26 February 2005 3 September 2005 £'000 £'000 £'000 Net profit 2,835 7,027 8,047 Adjustments for: Tax 1,130 1,640 2,557 Depreciation 1,661 1,301 3,054 Profit on disposal (14) (4,045) (4,198) of property, plant and equipment Immediate - (1,532) (1,526) recognition of negative goodwill Intangible asset 490 348 1,027 amortisation Net fair value (80) (31) 112 (gains)/ losses on derivative financial instruments Interest income (92) (33) (93) Interest expense and borrowing costs 675 447 1,191 Share of (profit)/ (299) (203) 462 loss from associate and joint venture Changes in working capital (excluding the effects of acquisitions) Increase in (6,418) (7,177) (1,009) inventories Increase in debtors (4,725) (7,529) (6,594) Increase in 3,258 5,411 3,614 creditors ------------- ------------- ------------- -------------Cash generated from (1,579) (4,376) 6,644 continuing operations ------------- ------------- -------------------------- 8 Analysis of net debt (unaudited) At At At 4 March 2006 26 February 2005 3 September 2005 £'000 £'000 £'000 Cash at bank and in 94 728 3,149 hand Bank overdrafts (3,382) (9,526) (646) Loans and other (10,753) (2,800) (9,220) borrowings: amounts falling due within one year Loans: amounts (5,887) (8,755) (6,534) falling due after more than one year Finance leases: (996) (614) (800) amounts falling due within one year ------------ ------------ -------------Finance leases: (754) (830) (865) amounts falling due after more than one year ------------ ------------ ------------- (21,678) (21,797) (14,916) ------------ ------------ ------------- 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, or at www.carrs-milling.com. This information is provided by RNS The company news service from the London Stock Exchange