AGM Statement and Trading Update

CRAWSHAW GROUP PLC - AGM STATEMENT AND TRADING UPDATE

At this afternoon's AGM of Crawshaw Group PLC, the meat focussed retailer, the Chairman, Richard Rose, will make the following statement with regard to current trading.

"As reported previously, following managements' actions to stimulate growth, LFL sales have significantly improved since last autumn and I am pleased to announce that this trend has continued. Year to date LFL sales are now running at 4% higher than last year.

Sales in May were particularly encouraging with LFLs at our legacy stores being 6% higher than the same period last year and LFLs at our newer stores being 12% higher than the same period last year. Overall LFLs in June are running in line with trend at 4% higher than last year, despite the recent lack of BBQ sales opportunities, as compared to the previous year.

In addition to the above, year to date margins are now slightly above last year, with the recent margin performance being particularly encouraging. Therefore, as a result of the above, we are delighted to report that, for the first 20 weeks of the current year, we are trading ahead of management's expectations.

We previously reported our concerns regarding the Governments proposals to add VAT to certain currently exempt cooked products. The recently announced concessions have helped in so far as we would be permitted to sell such items "on the cool" VAT free. This does however create in itself some anomalies, particularly affecting our small format stores. We have therefore made further representations to the Treasury, both in writing and in person, and are hopeful that workable solutions can be found."

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