Final Results

Cranswick PLC
18 May 2004



Embargoed 07.00 Tuesday May 18 2004


                        CRANSWICK plc: YEAR END RESULTS



Cranswick plc, the Yorkshire-based food producer, announces its audited results
for the 12 months ended March 31 2004.

Highlights:

  • Turnover increases by 14 per cent to £270m (2003: £238m)
  • Profit before tax up 7 per cent at £21.2m (2003: £19.7m; £22.2m before
    exceptional charge)*
  • Earnings per share rise by 5 per cent to 35.8p (2003: 34.2p; 38.5p before
    exceptional charge)*
  • Proposed increase in final dividend of 10 per cent to 8.8p per share,
    total for the year 13.2p (2003: total 12p)

* Prior to goodwill amortisation

Chairman Jim Bloom said: 'In a year that presented a number of challenges to our
business, it is pleasing to announce results in line with expectations.

'Sales of food, which accounted for almost three quarters of the Company's
turnover in the year, increased by 21 per cent to £201 million reflecting
particularly strong growth in sales of gourmet sausages and continental foods
plus ten months sales from

The Sandwich Factory acquired in May 2003.


'In pet, turnover in the Bucktons pet food business was up 63 per cent to almost
£21 million. Turnover in the Tropical Marine Centre ('TMC') aquatic business
increased by 10 per cent to over £9 million.

'Cranswick operates in a competitive trading environment with a strong
management team that has a successful track record. Investment is being made,
financed by the company's strong underlying cash flow, to continue this record.
Capacity is being expanded in key areas and operating efficiencies enhanced.

'The Board is confident in its strategy for the development of Cranswick and
looks to the future with cautious optimism.'

The Company also announces that Mr Bloom will retire as Chairman at the AGM in
July. At that time, Chief Executive Martin Davey will be appointed Executive
Chairman with Bernard Hoggarth made Chief Executive of the food activities and
Derek Black Chief Executive of the pet activities.

                                     -ends-


For further information:

Martin Davey, Chief Executive                         07775 576426

John Lindop, Finance Director                         07768 362592

Paul Quade                                            020 7334 0243

CityRoad Communications                               07947 186694







                           STATEMENT TO SHAREHOLDERS



Results

In a year that presented a number of challenges to our business it is pleasing
to announce results in line with expectations.


Turnover in the year increased by 14 per cent to £270 million and is considered
in more detail in the review of activities. Profit before taxation and goodwill
amortisation was up by 7 per cent to £21.2 million compared to that reported for
2003 which was after making an exceptional charge of £2.5 million. Earnings per
share before goodwill amortisation rose by 5 per cent to 35.8p from 34.2p
previously reported after the exceptional charge. Profit before taxation and
goodwill amortisation in 2003, prior to the exceptional charge, was £22.2
million and the earnings per share were 38.5p. Cash generation from operating
activities continued to be strong and after payments totalling £9.6 million on a
number of capital projects and £15.1 million on the acquisition of The Sandwich
Factory net borrowings at the year end were £13.3 million, representing 19 per
cent of shareholders funds. Interest cover was a comfortable 32 times.




Dividend

The Board is proposing an increase in the final dividend of 10 per cent to 8.8p
per ordinary share. This, along with the interim dividend of 4.4p per ordinary
share paid in January 2004, makes a total dividend for the year of 13.2p per
ordinary share, an increase of 10 per cent on last year's 12.0p. The final
dividend, if approved by shareholders, will be paid on 10 September 2004 to
shareholders on the register at the close of business on 30 July 2004.
Shareholders will again have the option to receive the dividend by way of scrip
issue.




Cash Flow

The underlying cashflow of the business remained very strong enabling us to
spend £9.6 million on fixed assets (compared with a depreciation charge of £4.6
million) and purchase the Sandwich Factory for £15.1 million, whilst only
increasing net debt by £14.9 million. There were three major capital projects
(retail packing and sausage production on the food side and the production of
pet food) which together will cost in excess of £15 million and will increase
capacity and provide for greater operating efficiencies. Approximately £6.5
million of the £15 million remains to be spent in the new financial year.




Consistent Growth

The strong track record of the Company is evidenced by the compound rates of
growth over both the past five and ten years. Over five years profit before tax
and goodwill amortisation has risen from £9.3 million for the year ended March
2000 to £21.2 million this year, a compound rate of increase of 23 per cent per
annum; adjusted earnings per share have risen from 19.5p to 35.8p and dividends
per share from 7.5p to 13.2p, compound rates of increase of 16 per cent and 15
per cent per annum respectively. Over ten years the compound rates of increase
are 24 per cent per annum in profits, 19 per cent per annum in earnings per
share and 13 per cent per annum in dividends per share.




Board Structure


Mike Field, one of the 23 local farmers who founded Cranswick in the early
1970's and who had been a non-executive director since the Company was
incorporated in 1974, sadly passed away in January. The directors join with all
at Cranswick in offering condolences to Mike's family.


Jim Bloom, chairman, intends to retire at the AGM in July. Jim, along with Mike,
was one of the original founders of the business and a non-executive director
since 1974.


Both Mike and Jim have contributed enormously to the success of Cranswick and
the directors thank them for this.


Martin Davey, chief executive of the business since 1988, will be appointed
executive chairman at the AGM in July and, at that time, Bernard Hoggarth will
be appointed chief executive of the food activities and Derek Black will be
appointed chief executive of the pet activities. The Board will be appointing
two additional independent non-executive directors to the Board. Major
shareholders have been consulted in relation to these changes.




Review of activities


Food


Sales of food, which accounted for almost three quarters of the Company's
turnover in the year, increased by 21 per cent to £201 million reflecting
particularly strong growth in sales of gourmet sausages and continental foods
plus ten months' sales from The Sandwich Factory, acquired in May 2003. Higher
raw material prices and a competitive retail environment impacted on margins.


In fresh pork, major investment in a new retail packing facility at the primary
processing plant contributed to increased sales. The facility has increased
capacity and enhanced operating efficiency, with processing and packing now
undertaken on one site rather than two previously. This has enabled a wider
retail customer base to be supplied very cost effectively. The production of the
summer eating range, including kebabs and barbecue food, has also been
centralised at this location. Sales of these products rose significantly as the
customer base increased and with a good summer for outdoor eating. More
recently, a premium range of pork has been launched into the retail market,
developed from specialist pig production undertaken by Cranswick. This is
currently being supplied to a small number of stores over the UK but will become
more widely available as production expands.


Sales of the range of high quality sausages continues to grow strongly. A new
factory is under construction which will provide for the consolidation of the
two existing sausage production sites on to one bringing operating efficiencies
and enhanced capacity. The new facility is situated adjacent to the cooked meat
plant in Hull and will have the benefit of sharing many of the specialist
services required in a modern food plant. Sausages produced by the Company are
available both private label and branded, under 'Duchy Originals' and 'Lazenby'.
A number of new customers have been gained in this strongly growing sector.


There was a good increase in sales of continental food products and a broadening
of the customer base, although margins have been impacted following the weakness
of sterling against the euro. Since acquiring Continental Fine Foods in 2001
there has been an increase in sales of 60 per cent. An integral part of the
strategy for the continued development of Continental is the acquisition of
additional facilities in the near future. New product development to support
sales, under both private label and the 'Global Deli' brand, is particularly
important and currently work is being undertaken on a range of new premium pates
under the supervision of renowned chef, Albert Roux.


Investment in additional capacity at the cooked meat facility at Sutton Fields
in Hull has enabled the transfer of a significant proportion of production from
the original cooked meat site in Waterfoot, Lancashire. This has provided space
at Waterfoot for the production of bacon. Cranswick Gourmet Bacon Company was
established in March 2004 and is a joint venture between Cranswick and the long
established 'Jack Scaife' business which has relocated to Waterfoot. Listings
for the bacon with two major retailers have been achieved which will be in
addition to the existing 'Jack Scaife' mail order business. The Jack Scaife
brand will continue to be utilised in conjunction with the Lazenby 'Best of
British' brand, which will encompass the new retail packed bacon range.


The sandwich and sandwich fillings activity comprises North Wales Foods acquired
in October 2002 and The Sandwich Factory (TSF) acquired in May 2003. Both
businesses have been successfully integrated and delivered strong results during
the first half although the second half performance was impacted by reduced
sales at TSF. A close working relationship is being developed between the two
businesses and signs are quite positive that there will be favourable progress
in sales levels within the next year.


The food and agribusiness activities have a close working relationship. The
recently launched range of premium pork has been developed from this close
collaboration involving the setting up of specialist Cranswick pig production
units with pig feed supplied from Cranswick's feed mills. In addition the main
outlet for pigs traded by the pig marketing activity is the Company's own pork
processing business. As well as this internal commercial activity, sales of pig
and poultry feed and traded pigs are made to third party customers in the UK and
the rest of Europe under the Cranswick Mill trading name.


Third party agribusiness sales were 23 per cent lower than last year at £39
million, with the reduction almost entirely due to a higher proportion of pigs
being supplied internally following a further reduction in the UK pig herd.
Gross sales were just five per cent lower. Feed sales came under pressure due to
overcapacity within the UK compound feed sector and from a significant rise in
raw material costs, both factors having an adverse impact on operating margins.
Sales of piglet feeds into mainland Europe benefited from currency movements
contributing to a strong financial performance. Continued focus is being put on
sales into this region.


The continuing level of overcapacity in the UK compound feed sector and the
expectation that the size of the UK pig herd is unlikely to increase
significantly has led the Board to review the Company's milling capacity. The
intention is to consolidate feed milling at the Cranswick site and to cease
operations at the mill in Lincolnshire. It is anticipated that this will take
place during the first half of the current financial year and will provide a
more efficient operating structure for the business in the prevailing trading
environment.




Pet


A strong performance in the year was achieved in both the food and aquatic
activities with sales up 41 per cent to £30 million.


Turnover in the Bucktons pet food business was up 63 per cent to almost £21
million. During the year in excess of 50 new products were launched under the '
Nature's Feast' brand including an extensive range of wild bird garden feeders
and food products. The customer base continues to grow and ranges from national
pet retail outlets to household DIY stores, garden centres and 'budget' retail
chains on the high street.



Construction of the new automated bird food and small animal food production
facility on the six acre site at Driffield, East Yorkshire is scheduled to be
commissioned in autumn 2004. This facility will centralise and significantly
improve production and logistic efficiencies and, with Bucktons currently
operating at full capacity, will enable additional sales opportunities to be
developed.


Turnover in the Tropical Marine Centre ('TMC') aquatic business increased by 10
per cent to over £9 million. Sales of marine fish, including tank bred fish from
TMC's hatchery, rose to record levels. Tank bred sales of clown fish were
boosted by the release of the animated Disney film 'Finding Nemo' which featured
a clown fish as its main character. Sales of pond products, the commercial range
of filtration systems and other 'dry' goods recorded a strong increase.


TMC opened a wholesale facility in Manchester three years ago and the ongoing
success of this has provided the confidence to continue the pattern of
controlled growth. A third wholesale outlet located on the M5 outside Bristol
opened in April 2004. It is fitted with marine livestock tanks and a warehouse.
It will serve aquatic retail customers in the south and western areas of the
country and further strengthen the business, which is based on providing
convenient access to aquatic goods and marine livestock for in excess of 1000
customers.




Outlook

Cranswick operates in a competitive trading environment with a strong management
team that has a successful track record.

Investment is being made, financed by the Company's good cash flow, to continue
this record. Capacity is being expanded in key areas and operating efficiencies
enhanced. Success is being achieved with the introduction of new products and in
developing the customer base.

Whilst it is anticipated that the first half of the current financial year will
be adversely impacted by continuing higher raw material prices in animal feed
and lower sandwich sales the Board is confident in its strategy for the
development of Cranswick and looks to the future with cautious optimism.




Jim Bloom                    Martin Davey
Chairman                     Chief Executive

18 May 2004









                      CRANSWICK plc: AUDITED CONSOLIDATED

                            PROFIT AND LOSS ACCOUNT


                        year ended 31 March 2004




                                                          2004              2003
                                                         £'000             £'000

Turnover                                               270,116           237,686


Operating profit before goodwill amortisation           21,842            20,825

Interest charge                                            683             1,072


Profit on ordinary activities before taxation and 
goodwill amortisation                                   21,159            19,753


Goodwill amortisation                                    2,240             1,442

Profit on ordinary activities before taxation           18,919            18,311

Taxation                                                 6,356             5,828

Profit on ordinary activities after taxation
attributable to shareholders                            12,563            12,483

Equity dividends                                         5,462             4,930


Retained profit for the year                             7,101             7,553



Earnings per share (pence)

Basic                                                    30.4p             30.6p

Diluted                                                  30.2p             30.4p

Adjusted for goodwill amortisation                       35.8p             34.2p

Dividends per share (pence)                              13.2p             12.0p

Notes

 1. The profit and loss accounts for the years ended 31 March 2004 and 2003 are
    not statutory accounts within the meaning of Section 240 (5) of the
    Companies Act 1985. The auditors of Cranswick, Ernst & Young LLP, have made
    a report under Section 235 of the Act on the statutory accounts of Cranswick
    for the financial year ended 31 March 2003. Such report was unqualified and
    did not contain a statement under Section 237(2), (3) or (4) of the Act and
    such accounts have been delivered to the Registrar of Companies. The
    statutory accounts for the year ended 31 March 2004 incorporate an
    unqualified audit report (which does not contain a statement under Section
    237(2), (3) or (4) of the Act) and will be delivered to the Registrar of
    Companies following the Annual General Meeting of Cranswick.

 2. Basic earnings per share are based on profit attributable to shareholders and
    on the weighted average number of shares in issue during the year of
    41,318,512 (2003 - 40,725,986 ). Adjusted earnings per share are based on
    profit attributable to shareholders adjusted for goodwill amortisation.

 3. Subject to shareholders' approval the final dividend will be paid on 10
    September 2004 to shareholders on the register on 30 July 2004.

 4. The Company intends to post the Report and Accounts to shareholders on 2 July
    2004. Further copies will be available upon request from the Company
    Secretary, Cranswick plc, Cranswick, Driffield, East Yorkshire, YO25 9PF



                             CRANSWICK plc: AUDITED

                           CONSOLIDATED BALANCE SHEET

                                 31 March 2004

                                                                   
                                                                2004      2003
                                                               £'000     £'000     
  Fixed Assets                                                                
  Intangible assets                                           41,451    28,807
  Tangible assets                                             38,047    30,491
                                                              79,498    59,298
  Current assets                                                              
  Stocks                                                      11,884     8,863
  Debtors                                                     33,212    27,045
  Cash at bank and in hand                                     2,801     8,083
                                                              47,897    43,991
  Creditors - amounts falling due within one year                             
  Loan notes payable                                           1,173     4,816
  Bank overdraft                                              14,843     1,482
  Hire purchase                                                   49       100
  Trade and other creditors                                   33,066    27,466
  Corporation tax                                              3,301     2,702
  Proposed equity dividend                                     3,667     3,325
                                                              56,099    39,891
  Net current (liabilities)/assets                           (8,202)     4,100
  Total assets less current liabilities                       71,296    63,398

  Creditors - amounts falling due after more than one year                    
  Hire purchase                                                    -        49

  Provision for liabilities and charges                                       
  Deferred taxation                                            2,302     1,926

  Accruals and deferred income                                                
  Government grants                                              148       184
                                                              68,846    61,239
  Capital and reserves                                                        
  Called-up share capital                                      4,157     4,143
  Share premium account                                       27,886    27,388
  Profit and loss account                                     36,803    29,708
  Equity shareholders' funds                                  68,846    61,239




                             CRANSWICK plc: AUDITED

                        CONSOLIDATED CASH FLOW STATEMENT

                        for the year ended 31 March 2004

                                                                        
                                                              2004        2003
                                                             £'000       £'000
  Operating activities                                                        
  Net cash inflow from operating activities                 21,308      25,564

  Returns on investment and servicing of finance                              
  Hire purchase interest                                       (1)         (1)
  Net bank interest                                          (618)         205
  Loan note interest                                         (139)       (214)
                                                             (758)        (10)
  Taxation paid                                            (5,842)     (6,608)

  Capital expenditure and financial investment                                
  Purchase of tangible fixed assets                        (9,565)     (7,086)
  Proceeds of sale of tangible fixed assets                    180         385
                                                           (9,385)     (6,701)

  Acquisition and disposals                                                   
  Purchase of subsidiary undertaking                      (15,122)     (3,272)
  Net (overdraft)/cash acquired with subsidiary              (493)         740
  undertaking                                                                 
                                                          (15,615)     (2,532)

  Equity dividends paid                                    (4,608)    (4,.004)

  Cash (outflow)/inflow before financing                  (14,900)       5,709

  Financing                                                                   
  Issue of ordinary share capital                                -         765
  Loan note repayments                                     (3,643)    (12,029)
  Capital element of hire purchase payments                  (100)       (107)
  Net cash outflow from financing                          (3,743)    (11,371)

  Decrease in cash in the year                            (18,643)     (5,662)



RECONCILIATION OF OPERATING PROFIT TO NET 
CASH INFLOW FROM OPERATING ACTIVITIES 

                                                                       
                                                                   Group       
                                                              2004       2003
                                                             £'000      £'000
  Operating profit                                          19,602     19,383
  Goodwill amortisation                                      2,240      1,442
  Depreciation, net of government grants                     4,575      3,959
  Loss on sale of tangible fixed assets                         12         18
  Increase in stocks                                       (2,429)    (1,130)
  (Increase)/decrease in debtors                           (3,944)        346
  Increase in creditors                                      1,252      1,546
  Net cash inflow from operating activities                 21,308     25,564



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