Trading Statement

Cranswick PLC
28 September 2004


EMBARGOED FOR RELEASE UNTIL 7AM ON Tuesday 28TH September 2004


Cranswick plc - first half trading statement



Trading in the first half of the year has been in line with management's
expectations. At the time of the preliminary results announcement in May it was
anticipated that the first half would be adversely impacted by two factors that
had also impacted the second half of the previous year, namely lost sandwich
business and higher raw material prices in animal feed. Whilst this has proved
to be the case, the outlook for the second half is more positive.


The Sandwich Factory, winner in a number of categories at the 2004 British
Sandwich Association Awards, has now regained the business lost a year ago which
will benefit the whole of the second half.


On the animal feed side raw material prices post harvest have fallen
significantly, as anticipated, reducing pressure on margins. As indicated in
May, following a review of the Company's feed milling capacity, the Board
intended to consolidate activities on the Cranswick site and cease production at
the Lincolnshire mill. This rationalisation has now taken place. There has been
transfer of some tonnage to Cranswick leaving this mill operating at close to
capacity and the surplus site and equipment sold.


Overall group sales increased by 7 per cent compared with the first half of last
year. Food sales showed an increase of 10 per cent with fresh pork, sausage and
continental products showing particularly strong growth. Disruption from the
fire at the Cottingham sausage factory has been kept to a minimum and it is not
envisaged that there will be any material profit impact as a result of adequate
insurance cover. Cranswick Country Foods were successful at the 2004 SuperMeat
Awards in winning the 'Best Pork Product' category as well as being 'Overall
Winner' for its Pork Rib Roast. The pet business recorded a sales increase of 13
per cent.


We have continued to make good progress on the construction of the new sausage
factory in Hull and the new pet food facility in Driffield, with both due for
completion in the third quarter. Most of the expenditure has now been incurred
and is within original estimates. Both these investments will add much needed
extra capacity as well as bring greater production efficiencies. The second unit
that we have purchased in Manchester for the continental foods business
following continued growth in sales will shortly be commissioned and the total
cost including fitting out is within budget. Deferred consideration of £800,000
in respect of North Wales Foods has also been paid out within the first half.
Consequently borrowings at the half-year were, as anticipated, greater than the
previous year-end figure and, with continued strong cash generation from
operating activities, are expected to fall by 31st March 2005.


The group expects to announce its interim results on 16 November 2004.


Enquiries:

Martin Davey - chairman             01377 270649 (to 11.30am)
John Lindop - finance director)





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