Interim Management Statement

Carr's Milling Industries PLC
08 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 Interim
Management Statement, as required by the UK Listing Authority's Disclosure and
Transparency Rules. This Statement replaces the usual Chairman's AGM Statement
with regard to current trading and prospects in relation to the year to 30
August 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 line
with our expectations.' Almost two months on, we have experienced a further
slight improvement. Trading for the quarter to 1 December 2007 was ahead of both
budget and last year's actual, and subsequent trading has accentuated that
trend. It is a promising start to the year. However, the outcome for the year to
30 August 2008 will be influenced by the price of milling wheat for the month of
August, which is currently difficult to predict.

In Agriculture, volumes of compound and blended feed are up on the comparable
period last year, reflecting an improvement in demand from dairy farmers, the
division's most important customer grouping. Revenues will be well up as a
result of price increases following the sharp increases in the cost of the
principal raw material, feed wheat. Volumes of low moisture feedblocks are also
ahead of last year in each of the UK, the USA and Germany. In the UK, volume
increases have accelerated after a slow start to the year; in the USA, they
arise from gains in market share. Revenue from the sale of fertilisers in the
year to date are more than double, reflecting substantial increases in both
volume and price, as farmers have bought early to secure supplies against a
background of sharply rising worldwide demand. Trading in the retail supplies
business is little changed, whilst sales of machinery are down following a
strong performance in the past three years. Oil sales have doubled following the
acquisition of Johnstone Fuels & Lubricants in January 2007.

The Group's Flour business experienced substantially increased revenue on
similar volumes following price increases to compensate for the large increase
in the cost of wheat. The wheat market remains uncertain, with prices continuing
to rise, albeit less sharply than in the closing months of the previous
financial year. Profitability, whilst still unsatisfactory, is benefiting from
two general price increases put in train since August. Demand has been less even
than usual as a consequence of the flour price increases, causing some
operational inefficiencies. Despite this, manufacturing costs are on budget and
lower than last year,reflecting the management action taken last year.

Trading in the Engineering business, much the Group's smallest, is expected to
be mildly positive relative to last year.

A consequence of the substantial increase in the Group's sales activity, both
volumes 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 than
adequate facilities are in place to meet the higher level of working capital in
the months ahead.

Overall, Carr's remains on track and conditions remain favourable for a
resumption in the upward trend in the Group's results.'



Enquiries:

Carr's Milling Industries plc                                    01228-554 600
Chris Holmes (Chief Executive Officer)
Ron Wood (Finance Director)

Bankside Consultants Limited                                     020-7367 8851
Charles Ponsonby

This Interim Management Statement has been drawn up and presented for the
purposes of complying with English law. Any  liability arising out of or in
connection with this Interim Management Statement will also be determined in
accordance  with English law.

This Interim Management Statement may contain 'forward-looking statements'. By
their nature, forward-looking statements  involve risk and uncertainty because
they relate to future events and circumstances. Many of these risks and 
uncertainties relate to factors beyond the Group's control or which cannot be
estimated precisely, such as future  market conditions and the behaviour of the
market participants. Actual outcomes and results may therefore differ 
materially from any outcomes or results expressed or implied by any such
forward-looking statements.

Nothing in this Interim Management Statement is intended to be a profit forecast.




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