Crawshaw Group Regulatory News (CRAW)

The following amendment has been made to the 'Half Yearly Report' announcement released on 02/10/2012 at 07.00 under RNS No 6230N.

In the second bullet point of the highlights section, 2010 changes to 2011 so:

"(2010 : 43.5%)" changes to "(2011 : 43.5%)"

All other details remain unchanged.

The full amended text is shown below.

CRAWSHAW GROUP PLC

Interim Results

Crawshaw Group PLC (the "Company"), the meat focused retailer, today reports its interim results for the 6 months ended 31 July 2012.

As indicated in June of this year, LFL sales have significantly improved since the autumn of 2011 and I am pleased to say that this trend has continued with LFL sales up 4% in the half year to 31st July, 2012 as compared to the same period the previous year. Total sales for the first half are down slightly at £9.3m (2011 : £9.4m) as a result of the sale of our Doncaster market site, the closure of our mobile unit and the planned reduction in our lower margin wholesale business.

Gross Profit has remained level at £4.1m (2011 : £4.1m), although gross margin has increased slightly to 43.6% (2011 : 43.5%) in the 6 months to 31st July.

Given the reduction in overall sales, as indicated above, overall costs have fallen. However, the sales related reduction in overheads has been partially offset by our investment in marketing related activities and certain restructuring costs. The benefits of this investment are becoming apparent in the second half. 

In the 6 months to 31st July 2012 EBITDA increased by 6% to £296k (2011 : £278k) and earnings per share rose to 0.155p (2011 : 0.124p) up 25%.

Cash generated from operating activities before movements in working capital in the period was £0.3m (2011 £0.3m). This is offset by seasonal working capital movements of £0.12m and net capital expenditure £0.12m, leaving our net debt position at the half year at just under £0.2m (31st January 2012 : £0.2m). This comprises £655k of cash in the bank, and a £840k mortgage on two properties.

The Governments proposal to add VAT to certain, currently exempt, cooked products will impact the way we sell our freshly cooked food offer from the 1st October this year. We intend to sell such products 'on the cool' and therefore VAT free. We have invested in equipment, additional staff and staff training to prepare for the changes.

The initiatives being taken by management to restore profitable growth continue to work, and as a result, since the half year end, like for like sales have further improved. In the 8 weeks since the half year LFL sales were up 7%. The gross margin has also responded well to these initiatives, rising by 1 percentage point during those same weeks versus the half year end position.

The retail climate remains particularly challenging, and is likely to remain so for the foreseeable future, however, we are encouraged by the very high customer loyalty on the back of excellent quality and value for money. The improvements in average spend of 9% over the last year are a testament to this.

Richard Rose

Chairman

1st October, 2012

For further information please contact:

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PREPARATION

REPORTING ENTITY

Crawshaw Group Plc (the "Company") is a company incorporated and domiciled in the UK.

The condensed consolidated interim financial statements of the Company as at and for the six months ended 31 July 2012 comprise the Company and its subsidiaries (together referred to as the "Group") and equity account the Group's interest in jointly controlled entities.

BASIS OF PREPARATION

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting', as adopted by the EU and do not include all of the information required for full annual financial statements.

The comparative figures for the financial year ended 31 January 2012 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

The condensed consolidated interim financial statements have not been audited but have been reviewed by the Company's auditors. Their review report for the 6 month period ended 31 July 2012 is set out on page 12.

These condensed consolidated interim financial statements were approved by the Board of Directors on 1st October 2012.

SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 January 2012, as described in those annual financial statements,which were prepared in accordance with IFRS as adopted by the EU.

SIGNIFICANT JUDGEMENTS, KEY ASSUMPTIONS AND ESTIMATION UNCERTAINTY

The preparation ofthe condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and other factors that are believed to be reasonable at the time the estimate is made. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended 31 January 2012.

GOING CONCERN

The Group has in place borrowing facilities up to a maximum of £1,090,000. They consist of a mortgage of £840,000 and a working capital overdraft facility of £250,000. These facilities are not subject to financial performance covenants, however, overdraft facilities can be withdrawn by the bank at any time.

The overdraft facility is open ended but renegotiated on an annual basis, the next review being due in April 2013. The mortgage is due for renewal in May 2013 and discussions on the terms of this renewal will be finalized in March 2013. The Directors have reviewed the banking facilities available to the Group plus the profit and cash forecasts of the Group with appropriate sensitivities around operational performance. The Directors have concluded that the Group will have sufficient cash to meet its obligations and to pursue its existing strategy. Accordingly the Directors consider that these statements should be prepared on a going concern basis.

BASIS OF CONSOLIDATION

The consolidated financial information includes the financial information of the Company and its subsidiary undertakings made up to 31 July 2012 (together referred to as the 'Group').

2. REVENUE

The Directors have undertaken a review of the Group's continuing operations and their associated business risks. The Directors consider that the continuing operations represent one product offering with similar risks and rewards and should be reported as a single business segment in line with the Group's internal reporting framework. All revenue received during the period was received from customers within the United Kingdom.

4. EARNINGS PER ORDINARY SHARE

Basic earnings per ordinary share is calculated by dividing the earnings attributable to the ordinary shareholders by the weighted average number of ordinary shares outstanding during the period of 57,818,801 (31/1/12: 57,818,801) (31/07/11: 57,818,801).

Diluted EPS is calculated by dividing the profit for the year attributable to the ordinary shareholders by the weighted average number of ordinary shares in issue adjusted to assume conversion of all potentially dilutive ordinary shares from the start of the year,giving a figure of 57,818,801 (31/1/12:57,818,801) (31/7/11: 57,818,801).

7. RELATED PARTY TRANSACTIONS

Crawshaw Butchers Limited, a subsidiary of Crawshaw Group Plc, holds a 50% share in a partnership which trades under the name of RGV Refrigeration. The operations of the partnership comprise of the maintenance and repair of refrigeration machinery for a variety of customers.

INDEPENDENT REVIEW REPORT TO CRAWSHAW GROUP PLC

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly report for the six months ended 31 July 2012 which comprisesthe Condensed ConsolidatedStatement ofComprehensive Income,CondensedConsolidatedBalanceSheet,CondensedConsolidatedStatement of Changes in Shareholders' Equity, Condensed Consolidated Cash Flow Statement and the related explanatory notes. We have read the other information contained in the half-yearlyreport and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than thecompany for our review work, for this report, or for the conclusions we have reached.

Directors' responsibilities

The half-yearly report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly report in accordance with the AIM Rules.

As disclosed in note1, theannual financial statements of the group are prepared in accordancewith IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing PracticesBoard for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review issubstantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly report for the six months ended 31 July 2012 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the AIM Rules.

A J Sills

for and on behalf of KPMG Audit Plc

Chartered Accountants

1 The Embankment

Neville Street

Leeds

LS1 4DW

1st October 2012

In an attempt to reduce costs the interim report will not be printed and distributed to shareholders however, it will be available later this week, from the Company's website www.crawshawgroupplc.com.