Final Results

Carr's Milling Industries PLC
13 November 2000




                                                              13 November 2000

           CARR'S MILLING INDUSTRIES PLC - PRELIMINARY ANNOUNCEMENT

                      Further progress, Board confident


  * Carr's announces that, in the year ended 2 September 2000, it
    substantially increased Group operating profit and further developed its
    business, despite adverse market conditions in all three areas of
    operation - agriculture, food and engineering.

                                                 2000        1999      Increase
Group turnover                                £98.0 m     £97.3 m          0.7%
Group operating profit                         £3.47m      £2.38m         45.8%
Pre-tax profit: pre-exceptionals               £2.49m      £2.27m          9.5%
Earnings per share: pre-exceptionals            20.2p       19.8p          2.0%
Cashflow from operating activities             £6.98m      £2.51m        178.1%
Dividends per share                             9.0 p       8.0 p         12.5%


  * The Agriculture Division was by some way the largest contributor to both
    turnover, with a 6.7% increase to £73.0 m (1999: £68.4 m), and operating
    profit, to £3.1m from £1.1m, with the major area of progress being the
    USA, where the US manufactured branded low moisture feed blocks, SmartLic
    and Feed in a Drum, continued to gain market share, the second plant at
    Belle Fourche, South Dakota, was commissioned in September 1999 and there
    was no repeat of the 1999 litigation provision.

  * The UK manufactured feed blocks, Crystalyx and Horslyx, continued to
    make excellent progress in the UK and continental Europe, whilst the
    fertiliser business made a good contribution, having emerged strongly from
    a period of industry turmoil.

  * The Food Division increased its operating profit, to £0.61m from £0.50m,
    despite slightly reduced turnover of £18.3 m (1999: £18.5 m), and progress
    was made across all three businesses - Carr's Flour Mills, Carrs Foodtech,
    and George Shackleton, Dublin.

  * The Engineering Division reported only a small operating loss of £0.15m
    (1999: profit £0.85m) despite a turnover substantially reduced to £6.7 m
    (1999: £10.5 m).

  * David Newton, Chairman, stated 'We see little significant change on the
    horizon in our main trading sectors, which in essence means that we have
    to continue to concentrate on doing well at what we do best and maximize
    both our efficiencies and any opportunities as they arise. Management and
    staff have already demonstrated their capabilities operating in tough
    trading conditions and that gives the Board good reason for confidence in
    the future performance of the Group.'


Enquiries:

Carr's Milling Industries PLC                                      01228-528291
Chris Holmes (Chief Executive)
Ron Wood (Finance Director)

Bankside Consultants Limited                                      020-7220 7477
Charles Ponsonby



                             CHAIRMAN'S STATEMENT

In the year ended 2 September 2000, the Group substantially increased Group
operating profit and further developed its business, despite adverse market
conditions in all three areas of operation - agriculture, food and
engineering.

FINANCIAL OVERVIEW

I indicated in my Interim Report in May that, despite the well-known problems
in British agriculture and the effects of currency exchange rates on our
engineering businesses, the Board remained confident of further progress in
the full year, even allowing for the expected net loss of income this year on
our 50 per cent share of the profit from the Robertsons bakery joint venture,
which was sold in August 1999.

It is pleasing therefore to be able to report to you a substantial increase in
Group operating profit to £3.47 million (1999: £2.38 million). The pre-tax
profit of £2.17 million also compares very favourably with last year, a profit
of £3.32 million, after taking into account in 2000 £0.62 million of
reorganisation costs and early trading losses associated with our share of AF
plc, the animal feed and farm supplies company, recently acquired by our joint
venture company, Carrs Billington Agriculture. The result in 1999 also
reflects the share of profit and the one time gain on disposal of our share in
Robertsons and its related property, which together added £2.08 million
profit.

Basic earnings per share were 17.5 p (1999: 29.5p which included the gain on
the disposal of Robertsons), or 20.2p (1999: 19.8p ) on the alternative basis.

Group turnover increased slightly to £98.0 million (1999: £97.3 million), with
the increased sales of fertilisers being offset by the reduction in activity
in engineering.

The balance sheet remains strong, with equity shareholders' funds rising to £
17.57 million (1999: £16.79 million). Gearing reduced to 41% from 57% and 85%
at the two previous year-ends, and interest cover was 3.8 times (1999: 4.0
times).

DIVIDENDS

The Board is proposing an increased final dividend per share of 6.0p (1999:
5.0p). If approved at the AGM, to be held at 11.30 a.m. on 9 January 2001 at
the Crown Hotel, Wetheral, Carlisle, this will be paid on 24 January 2001 to
shareholders on the register at close of business on 3 January 2001. Total
dividends per share for the year of 9.0p (1999: 8.0p), up 12.5 per cent, are
covered 2.2 times by earnings per share (alternative basis).

OPERATIONAL REVIEW

Agriculture

Operating profit for the Agriculture Division increased to £3.1 million, from
a very low base in 1999 of £1.1 million, on a turnover of £73.0 million (1999:
£68.4 million). The major areas of progress were in the USA, with our US
manufactured branded low moisture feed blocks, 'SmartLic' and 'Feed in a
Drum', continuing to gain market share. Also, the results benefited from the
first full year's contribution from our second plant in the USA, at Belle
Fourche, South Dakota, commissioned in September 1999.

The ongoing lawsuit against our USA subsidiary, Animal Feed Supplement, Inc.,
has reached a point where the matter should be resolved by means of a
settlement agreement in our favour. We anticipate the agreement comprising the
dismissal of the lawsuit and a partial recovery of our defence costs, which
will not be material, no monetary or other liability in connection with the
lawsuit and no restrictions on the use of the steel half- barrel trademark.

Sales of our UK manufactured feed blocks, 'Crystalyx' and 'Horslyx', continue
to grow in the UK and continental Europe, with excellent progress being made
despite the strength of sterling. Sales of the equine brands, 'Horslyx' and
the recently launched 'Stablelick', are exceeding budget.

The expected progress was made by Carrs Billington Agriculture (our 50 per
cent joint venture with Edward Billington & Son, established in July 1998, to
manufacture ruminant feeds exclusively for the two shareholders) through
increased volumes and production efficiencies plus the benefit of not having
the initial set-up costs. The mills performed well in the year.

Carrs Billington Agriculture completed the recommended take-over, for £0.85
million in cash, of AF plc in June 2000. The Group's share of the early
trading losses and reorganisation costs from the date of acquisition until 2
September 2000 was £0.62 million. In the year ended 30 November 1999 AF, which
had animal feed mills and six retail stores, made a pre-tax loss of £3.75
million on a turnover of £49.14 million. Following a strategic review of AF
operations the Preston animal feed mill was closed in July and production
consolidated in the three mills at Carlisle, Penrith and Stone. The Preston
head office was also closed and the administration moved to Carlisle. Our
share of the reorganisation costs was £0.43 million. With the reorganisation
and mill closure complete, we expect the benefits from manufacturing and
distribution efficiencies, combined with an increase in sales of feed and
fertilisers, to begin to be seen.

The four fertiliser blending plants in Scotland and the two plants in North
West England made a good contribution to this year's results, having emerged
strongly from a period of industry turmoil.

The eight retail branches that service the agricultural market in the North of
England and South of Scotland performed well with increased sales.
Agricultural machinery is still affected by the very low level of farm incomes
inhibiting planned capital expenditure on a proper scale. There are
encouraging signs of a badly needed increase in the price farmers are paid for
milk. This, and the need eventually to replace working equipment with new
tractors and other machinery, puts us in a strong position for the future.
After the year-end, in September 2000, an agricultural merchants business
operating from three retail stores in Fife, Scotland was acquired.

Food

The Food Division, comprising Carrs Flour Mills and Carrs Foodtech in Cumbria
and George Shackleton in Dublin, made an increased operating profit of £0.61
million (1999: £0.50 million) on a turnover of £18.3 million (1999: £18.5
million). Progress was made across all three activities.

Carrs Flour Mills, much the largest of the businesses, increased sales of
quality flour in a market suffering from over-capacity. The benefit of recent
capital expenditure in the mill at Silloth is being shown in increased
efficiencies.

The speciality ingredients business, Carrs Foodtech, continues to develop into
new markets, most recently the ready meals sector.

George Shackleton, Dublin, achieved an improved performance despite margins
being squeezed on ingredients sourced from the UK, which were adversely
affected by exchange rates.

Engineering

Our Cumbria-based Engineering Division reported only a small operating loss of
£0.15 million (1999: profit £0.85 million) despite a turnover reduced to £6.7
million (1999: £10.5 million).

Trading in our high integrity welding business, Bendalls, suffered in one of
its key market sectors from the low price of oil for much of the period with
investment in the oil, gas and petrochemical industries being at very low
levels. Coupled with the strength of sterling making the domestic market more
competitive through imports and overcapacity as a result of lost exports,
management's emphasis was placed on reducing costs and exploring new markets.
With the progress that has been made in developing these new markets together
with the dramatic increase in the price of oil, there has been a significant
upturn in enquiry levels at Bendalls which should lead to a return to profit
in the coming year. During the year, Bendalls gained the CE mark in accordance
with the Pressure Equipment Directive governing the supply of pressure vessels
to the EU. Subsequent to the year-end, in September 2000, Bendalls was
nominated as a major supplier of fabricated and machine spares to BNFL
Sellafield.

Capital expenditure in animal feed mills is running at a very low level with
feed mills being closed rather than built or expanded. This has impacted
severely on the results of Keytor, our mechanical and electrical engineer.
Keytor also operates in the UK human food sector and manufacturing indirectly
for export; both of these sectors adversely impacted on its performance as a
result of uncertainty as to the corporate future of a large customer delaying
decisions on large capital/maintenance projects and the result of sterling's
strength, respectively.

R Hind, the commercial and motor vehicle body repair business and the smallest
of the three engineering businesses, did not escape the problems faced by our
two larger engineering companies and profits were lower than the previous
year.

In 2001, the Engineering Division is expected to return to a modest level of
profitability based on current market conditions.

OUTLOOK

We see little significant change on the horizon in our main trading sectors,
which in essence means that we have to continue to concentrate on doing well
at what we do best and maximise both our efficiencies and any opportunities as
they arise.

Each part of the business has specific issues to address in the next 12 months
but management and staff have already demonstrated their capabilities
operating in tough trading conditions and that gives the Board good reason for
confidence in the future performance of the Group.



David Newton     13 November 2000

Chairman

CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                            For the year ended 2 September 2000
                                                2 September 2000 28 August 1999
                                                £000                    £000
Turnover: group and share of joint venture
Continuing operations                           104,186                 100,208
Less: share of turnover of joint venture -      (6,192)                 (2,872)

continuing operations
Group turnover                                  97,994                  97,336
                                                =====                   =====
Group operating profit - continuing operations  3,470                   2,377
Share of operating (loss)/profit in joint       (629)                   (10)
venture -

continuing operations
Associate - discontinued operations             -                       558

                                                ______                  ______
Total operating profit: group and share of      2,841                   2,925

Joint venture and associate

Continuing operations
Investment income                               1                       6
Profit on disposal of investment                111                     -
Discontinued operations
Profit on sale of associate                     -                       1,434
Profit on disposal of fixed assets              -                       75
                                                ______                  ______
Profit on ordinary activities before interest:  2,953                   4,440
Interest receivable
Group                                           21                      23
Joint venture                                   12                      10
Associate                                       -                       12

Interest payable - group                        (820)                   (1,168)
                                                ______                  ______
Profit on ordinary activities before taxation   2,166                   3,317
Taxation                                        (700)                   (940)
                                                ______                  ______
Profit on ordinary activities after taxation    1,466                   2,377
Minority interest                               (68)                    (14)
                                                ______                  ______
Profit attributable to shareholders             1,398                   2,363
Dividends                                       (720)                   (640)
                                                ______                  ______
Retained profit                                 678                     1,723
                                                =====                   =====
Earnings per share
Basic                                           17.5p                   29.5p
Diluted                                         17.5p                   29.5p
Alternative basis                               19.8p                   20.2p
Dividends per share                             8.0p                    9.0p

CONSOLIDATED BALANCE SHEET

at 2 September 2000
                                              2 September 2000  28 August 1999
                                              £000      £000    £000    £000
FIXED ASSETS
Intangible assets                                       43              60
Tangible assets                                         18,620          18,141

INVESTMENT
Investment in joint venture
Share of gross assets                         4,379             925
Share of gross liabilities                   (4,596)           (825)
                                              ______            ______
                                              (217)             100

Loan to joint venture                         550               -
Other investments                             22                23
                                              ______            ______
                                                        355             123
                                                        ______          ______
                                                        19,018          18,324
CURRENT ASSETS
Assets held for resale                        50                307
Stocks                                        7,895             7,723
Debtors                                       14,549            16,098
Cash at bank and in hand                      140               102
                                              ______            _____
                                              22,634            24,230
CREDITORS
Amounts falling due within one year           19,771            21,043
                                              _____             _____
NET CURRENT ASSETS                                      2,863           3,187
                                                        ______          _____
TOTAL ASSETS CURRENT LIABILITIES                        21,881          21,511

CREDITORS
Amounts falling due after more than one year  2,157             2,506

PROVISION FOR LIABILITIES AND CHARGES         1,534             1,578

DEFERRED INCOME                               290               345
                                              _____             _____
                                                        3,981           4,429
                                                        _____           _____
                                                        17,900          17,082
                                                        =====           =====
CAPITAL AND RESERVES
Called-up share capital                                 1,999           1,999
Reserves                                                15,573          14,794
                                                        _____           _____
Equity shareholders' funds                              17,572          16,793
Minority interests - equity                             328             289
                                                        _____           _____
                                                        17,900          17,082
                                                        =====           =====



CONSOLIDATED CASH FLOW STATEMENT

for the year ended 2 September 2000
                                                     2 September    28 August
                                                     2000           1999
                                                     £'000          £'000

Net cash inflow from operating activities            6,984          2,511
                                                     _______        _______
Dividend received from associate                     -              390
                                                     _______        _______
  Returns on investments and servicing of finance
                 Interest received                   4              23
Interest paid                                        (796)          (1,110)
Interest paid on finance leases                      (70)           (89)
Investment income received                           1              6
                                                     _______        _______
    Net cash outflow from returns on investments
and servicing of finance                             (861)          (1,170)
                                                     _______        _______
Taxation                                             (478)          90
                                                     _______        _______
    Capital expenditure and financial investment
Purchase of tangible fixed assets                    (1,121)        (1,547)
Sale of tangible fixed assets                        200            1,775
Sale of assets held for resale                       257            197
Sale of investment                                   112            -
Loan to joint venture                                (550)          -
                                                     _______        _______
                                                     (1,102)        425
                                                     _______        _______
             Acquisitions and disposals
Purchase of trade                                    -              (185)
Investment in joint venture                          (150)          (100)
Disposal of investment in associate                  -              2,243
                                                     _______        _______
                                                     (150)          1,958
                                                     _______        _______
Equity dividends paid                                (640)          (400)
                                                     _______        _______
Cash inflow before management of liquid
resources and financing                              3,753          3,804

Financing                                            (1,489)        (1,606)

                                                     _______        _______
Increase in cash in the year                         2,264          2,198

NOTES
1     Segmental analysis
                                  Group turnover      Group operating profit

                                  2000         1999   2000    1999
                                  £000         £000   £000    £000

Business analysis                                             
Agriculture                       73,000       68,390 3,132   1,103
Food                              18,334       18,484 607     504
Engineering                       6,660        10,462 (150)   854
Central                           -            -      (119)   (84)
                                  _____        _____  _____   _____
                                  97,994       97,336 3,470   2,377
                                  ====         ====   ====    ====

2     Cost of sales and other operating income and expenses
                                                      2000  2000  1999  1999
                                                      £000  £000  £000  £000

Cost of sales                                               81,184       82,765
                                                            _____       _____
Gross profit                                                16,810       14,571
Net operating expenses
Distribution costs                                          (6,267)     (5,511)
Administrative expenses - normal                      (7,073)       (6,220)
           - exceptional                              -               (463)
                                                      _____          _____
                                                            (7,073)     (6,683)
                                                            _____       _____
Operating profit                                            3,470       2,377
Share of operating loss in joint venture                    (197)       (10)

           - normal
           - exceptional                                    (432)       -
Share of operating profit in associate                      -           558
      - discontinued
                                                            _____       _____
Total operating profit: group and share                     2,841       2,925

of joint venture and associate
                                                            ====        ====



All results relate to continuing operations except as otherwise noted above.

In 2000 the exceptional element of loss in the joint venture relates to the
company's share of the reorganisation costs associated with the closure of the
Preston Mill and the head office acquired by our joint venture company, Carrs
Billington Agriculture Limited. The tax credit for the year in respect of this
loss is £138,000.



In 1999 the exceptional administrative costs related to the costs incurred and
a provision for the likely costs of defending proceedings against, Animal Feed
Supplement, Inc. ('AFS'), a subsidiary undertaking. This litigation related to
a dispute with a competitor in the US, which alleged that the subsidiary
undertaking had infringed a trademark in the US. In May 2000 the Courts ruled
in our favour and granted AFS summary judgment in all trademark related
matters. AFS is currently pursuing a competitor in the US for compensation for
costs incurred in defending the lawsuit. Legal costs incurred in 2000 were
charged against the provision created in 1999.



3.     Non operating items



In 2000 the Company disposed of its investment in a listed company for a gross
consideration of £112,000, which was settled in cash. The tax charge for the
year is £35,000.




        In 1999 the Company disposed of its fifty per cent holding of the
        issued share capital of Robertsons Limited giving rise to a profit on
        disposal of £1,434,000. On the same date Robertsons (Bakers) Limited
        made the associated disposal of the leasehold property known as the
        Bakery giving rise to a profit on disposal of £75,000. The tax charge
        in respect of these disposals is £268,000.

4     Taxation                                                   2000   1999
                                                                 £000   £000
     UK corporation tax at 30% (1999: 30.6%) - current           713    730
     - deferred                                                  98     41

     (Under)/over provision in respect of prior years            (96)   9

           - current
           - deferred                                            (23)   (71)
     Joint venture                                               (150)  -
     Asociate                                                    -      179
     Overseas taxation                                           158    52
                                                                 _____  _____
                                                                 700    940
                                                                 ====   ====

5     Dividends                                                  2000   1999
                                                                 £000   £000
     Equity
     Ordinary - Interim paid of 3.0p per share (1999: 3.0p)      240    240
     - Final proposed of 6.0p per share (1999:      5.0p)        480    400
                                                                 _____  _____
                                                                 720    640
                                                                 =====  =====

6.     Earnings per share


        The calculation of basic earnings per share is based on profits
        attributable to shareholders of £1,398,000 (1999: £2,363,000) and on
        7,996,639 shares (1999: 7,996,639 shares), being the weighted average
        number of shares in issue during the period.



The calculation of diluted earnings per share is based on the profit for
the financial year of £1,398,000 (1999: £2,363,000) and on 8,002,993 shares
(1999 : 7,998,406 shares) being the     weighted average number of shares in
issue during the year and the weighted average number of ordinary shares that
would be issued on the conversion of all the dilutive potential ordinary
shares.

The calculation of earnings per share on the alternative basis (including
acquisitions) is based on the profit for the financial year of £1,398,000
adjusting for exceptional items of £321,000 net of related tax charge of £
103,000 to give a profit for the financial year of £1,616,000 (1999: £
1,585,000).

                                            2000              1999
                                                     Earnings          Earnings
                                            Earnings per      Earnings per
                                                     share             share
                                            £'000    pence    £'000    pence

Earnings per share                          1,398    17.5     2,363    29.5
Exceptional items:
Continuing operations                       (111)    (1.4)    463      5.8
Gains on disposal of associate and other    -        -        (1,509)  (18.9)
fixed assets
Share of reorganisation costs in joint      432      5.4      -        -
venture
Taxation arising on exceptional items       (103)    (1.3)    268      3.4
                                            ________ ________ ________ ________

Earnings excluding exceptional items and    1,616    20.2     1,585    19.8
alternative earnings per share


7.     Cash flow from operating activities

                                                      2000         1999
                                                      £'000        £'000
Continuing operations
Group operating profit                                3,470        2,377
Depreciation charge                                   1,927        1,881
Profit on disposal of fixed assets                    (17)         (173)
Goodwill amortisation                                 17           12
Grants amortisation                                   (55)         (70)
Increase in stocks                                    (172)        (437)
Decrease/(increase) in debtors                        1,568        (854)
Increase/(decrease) in creditors                      434          (136)
Decrease in provisions                                (188)        (89)
                                                      _______      _______

                                                      6,984        2,511



8.      Reconciliation of net cash flow to movement in net debt

                                                        2000       1999
                                                        £'000      £'000
Increase in cash in the year                            2264       2198
Cash outflow from debt and lease financing              1489       1606
                                                        _______    _______
                                                        3,753      3,804

New finance leases                                      (1,292)    (495)
Exchange adjustments                                    (76)       (61)
                                                        _______    _______
                                                        2,385      3,248
Net debt at 29 August 1999                              (9,782)    (13,030)
                                                        _______    _______
Net debt at 2 September 2000                            (7,397)    (9,782)



9.     The board of directors approved the preliminary announcement on

13 November 2000.



10.     The preliminary results for the year ended 2 September 2000 are
unaudited and do not constitute the Company's statutory accounts. Comparative
figures have been derived from the statutory accounts for the year ended 28
August 1999, which have been delivered to the Registrar of Companies. They
were the subject of an unqualified audit report by the Company's auditors. The
statutory accounts for the year ended 2 September 2000 will in due course be
delivered to the Registrar of Companies.