Final Results - 'Much Improved Performance'

Carr's Milling Industries PLC
8 November 1999

 CARR'S MILLING INDUSTRIES PLC - 1999 PRELIMINARY ANNOUNCEMENT
                               
     Much improved performance, encouraging trading in new
                        financial year
                               
*    Carr's,   the   Carlisle-based  agriculture,   food   and
     engineering  group, announces a much improved performance
     for the year ended August 1999, as predicted a year ago:

                                              1999        1998
     
     Turnover (£m)                            97.3        97.1
     Pre-tax profit:
       pre-exceptionals (£000)               2,271         644
       post-exceptionals (£000)              3,317      (1,843)
     Earnings per share:
       pre-exceptionals (p)                   19.8         5.3
       post-exceptionals (p)                  29.5       (17.8)
     Net dividends per share (p)               8.0         5.0
     
*    The  much  improved performance is as a direct result  of
     the  positive management actions taken in 1998 to  reduce
     costs  and  reorganise problem areas of the business  and
     has  been  achieved  despite the continuing  problems  in
     British agriculture.

*    Agriculture  made  an operating profit of  £1.10m  (1998:
     loss  of £0.29m) despite a decline in turnover to  £68.4m
     (1998:   £74.1m).    Both   the  feed   operation   (with
     manufacturing,  since September 1998, through  the  Carrs
     Billington  Agriculture JV) and the  fertiliser  business
     returned to profit.

*    Food, which principally comprises Carrs Flour Mills, made
     an  operating  profit  of  £0.50m  (1998:  £0.28m)  on  a
     turnover   of   £18.5m  (1998:  £13.6m).   In   addition,
     Robertsons,  the joint venture bakery company,  prior  to
     its disposal on 2 August 1999 at an exceptional profit of
     £1.51m, contributed £0.56m (1998: £0.49m).

*    Engineering  had a good year, with increased turnover  of
     £10.5m  (1998: £9.4m) whilst operating profit was similar
     to last year at £0.85m (1998: £0.86m).

*    Year  end  net gearing improved to 57% from 85% in  1998,
     mainly  as  a  result  of the sale  of  the  interest  in
     Robertsons bakery, and interest cover was 4.0 times.

*    David Newton, Chairman, stated 'The indications are of  a
     continuation of a difficult business climate in our  main
     operating  sectors, which in itself will no  doubt  bring
     opportunities as well as problems.  However, I am pleased
     to report that early trading in the new financial year is
     encouraging and the intended capital expenditure  in  the
     flour  mill is expected to generate longer term benefits.
     Recognising  what has to be done, and having the  resolve
     and  quality of management to make changes and  see  them
     through, has stood us in good stead this last year and we
     will  continue to be realistic and proactive in the  year
     ahead.'

Enquiries:

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

Bankside Consultants Limited                     0171-220 7477
  Charles Ponsonby



                     CHAIRMAN'S STATEMENT
                               

FINANCIAL OVERVIEW

I  am  pleased to report a much improved performance  for  the
year ended August 1999, as predicted a year ago.  This is as a
direct result of the positive management actions taken in 1998
to  reduce costs and reorganise problem areas of the  business
and  has  been  achieved  despite the continuing  problems  in
British agriculture.

On  turnover of £97.3 million, marginally up on that  of  last
year (£97.1 million), the profit before exceptional items  and
tax increased to £2.27 million (1998: £0.64 million), whilst a
pre-tax  profit of £3.32 million compares with a loss in  1998
of  £1.84  million.   Earnings per share  before  exceptionals
increased  to  19.8p  (1998:  5.3p)  whilst  post-exceptionals
earnings per share of 29.5p compared with a loss per share  of
17.8p.

The  main  differences between the two years are, first,  1999
reflects the first full year of operation of our joint venture
animal   feed   manufacturing   business,   Carrs   Billington
Agriculture,  with the consequent closure of  our  inefficient
Silloth  feed mill, and, secondly, over the last year we  have
seen   better  organisation  and  control  of  our  fertiliser
business,  which  in  the previous year generated  significant
losses but is now beginning to benefit the Group.

Year  end gearing has improved to 57 per cent from 85 per cent
in  1998,  mainly as a result of the sale of our  interest  in
Robertsons bakery, and interest cover was 4.0 times.  However,
the  parlous state of farming continues to make debtor control
a key issue for the management to keep under constant review.

DIVIDENDS

The Board proposes an increased final dividend of 5.0p net per
share  (1998: 2.0p).  If approved at the AGM, to  be  held  at
11.30  am  on  13  January 2000 at the Crown Hotel,  Wetheral,
Carlisle,  this  will  be  paid on  25  January  2000  to  all
shareholders  on  the  register on 24  December  1999.   Total
dividends per share for the year of 8.0p (1998: 5.0p),  up  60
per  cent,  are  covered  2.5  times  by  earnings  per  share
(alternative basis).

OPERATIONAL REVIEW

Agriculture

It   is  pleasing  to  report  an  operating  profit  for  the
Agriculture  Division of £1.10 million  (1998  loss  of  £0.29
million) despite a decline in turnover to £68.4 million (1998:
£74.1  million).  Lower input and selling prices, particularly
for  feed  and  fertiliser, combined  with  reduced  sales  of
agricultural  machinery, disguised the overall  volume  growth
achieved by Agriculture.

The  combination of increased volumes and the formation of the
joint  venture company, Carrs Billington Agriculture  Limited,
on   9  September  1998,  to  manufacture  ruminant  feeds  at
Carlisle,  Cumbria  and Stone, Staffordshire  exclusively  for
Carrs Agriculture and Billington Agriculture, resulted in  the
feed   operation   returning  to  profitability.    Continuing
progress  is  expected without the one-off costs  involved  in
establishing the combined feed production operation.   Ongoing
efficiency gains and increased volumes are expected to  reduce
further the manufacturing unit cost.

The  changes made to our fertiliser business and new strategic
partnerships,  combined with the absence of relocation  costs,
resulted   in  our  fertiliser  business  also  returning   to
profitability.   The  new  blending  facilities   at   Glasgow
performed  well  in  the first full year of  production,  with
reduced  manufacturing  and  distribution  costs.   Sales   of
horticultural  and  speciality fertiliser  products  increased
during the year, contributing to the improved performance.

Benefits  of the capital expenditure made during the  year  at
the  Poteau,  Oklahoma feed block plant resulted in  excellent
products  and  reduced  costs.  The  new  patented  production
process plant at Belle Fourche, South Dakota, commissioned  in
September  1998  to  manufacture Smartlic  low  moisture  feed
blocks,  performed  exceptionally well.  Despite  the  adverse
weather  conditions  for feed sales in the  US,  the  expected
progress was achieved.  Having taken professional advice,  the
Board  feels  it  is prudent in light of the  ongoing  lawsuit
against  our  US  subsidiary company, Animal  Feed  Supplement
Inc.,  to  provide  for future legal costs.   A  provision  of
£250,000 has been included in the results for this purpose.

In  Europe, Caltech increased sales of animal health  products
and  Crystalyx, our low moisture feed block brand.   Sales  of
Horslyx,  our  equine brand, continued to  grow  in  both  the
domestic market and continental Europe.

Sales  of  retail  products, machinery parts  and  ground-care
equipment  increased in the year from the seven branches  that
service  the  agricultural market in the north of England  and
south   of   Scotland.   Machinery  sales   were   lower   but
satisfactory, given the current agricultural climate.  We  are
well  placed  with  the  excellent range  of  Massey  Ferguson
tractors  and  other farm machinery to satisfy market  demands
when  farmers  achieve more realistic price levels  for  their
produce.

Food

The  Food  Division, which principally comprises  Carrs  Flour
Mills, made an operating profit of £0.50 million (1998:  £0.28
million) on a turnover of £18.5 million (1998: £13.6 million).
In  addition,  Robertsons, the joint venture  bakery  company,
prior  to disposal on 2 August 1999, contributed £0.56 million
(1998:  £0.49  million).   The gain on  the  disposal  of  the
investment  in  Robertsons  and  the  sale  of  an  associated
property  was  £1.5 million before tax and is  treated  as  an
exceptional item in the accounts.

Carrs  Flour Mills improved sales and profitability  with  the
increases  coming from organic growth with existing  customers
plus  the  acquisition  last year of Irish-based  Shackletons.
Part  of  the increase in sales is due to wheatfeed,  the  co-
product  of flour milling, now being sold externally following
the  closure of Carrs Agriculture's feed mill at Silloth.  The
benefits of the ongoing capital expenditure in the flour  mill
are  beginning  to  show through, with concentration  on  high
quality flours processed with lower unit costs of production.

Sales  of  speciality cereal products and ingredients  through
Carrs  Foodtech continued to contribute to the growth  of  our
food business.

Engineering

Our Engineering Division, based in Cumbria, had a satisfactory
year,  with  increased turnover of £10.5 million  (1998:  £9.4
million).  Operating profit was similar to last year at  £0.85
million (1998: £0.86 million).

Our   high   integrity  welding  business,  Bendalls,   mainly
manufacturing  for the nuclear industry, was  busy  throughout
the  year.  The market for pressure vessels was lower, with  a
slowdown  in  construction projects and  oil  exploration  and
production  reducing turnover and profitability.   To  enhance
further  its reputation for quality, Bendalls, the largest  of
our three engineering businesses, gained the Chinese 'M' stamp
certificate,  enabling  it to supply pressure  vessels  to  an
expanded market.

Keytor, our electrical and mechanical engineering company, had
a  successful  year  and  completed a  number  of  significant
contracts  in the animal and human food sector.  The extension
in  1998  to  its  Carlisle-based workshop  enabled  the  more
efficient  handling of larger fabrications and the  relocation
of  our  small  Durham-based farm and  construction  machinery
business to these larger premises.

The  vehicle  and  body building business, trading  as  Hinds,
increased sales and profit and had an excellent year.

This  was  a  particularly good performance by the Engineering
Division  measured against the background of the  strength  of
sterling, low oil prices and continuing weak demand  in  Asia,
together with increased competitiveness in the UK.

BOARD

At  the  end  of November, we will regretfully say goodbye  to
long-serving director John Tudor, who is retiring.   John  has
been with Carrs for over 19 years and has served as a Director
for 17 of those.  He was honoured by the British flour millers
trade  organisation (nabim), serving as President during  this
last  year, and he will be much missed by them, too.  We  wish
John  and  his  wife,  Carolyn, a very happy  and  well-earned
retirement.

OUTLOOK

Essentially,   nothing   has  changed   in   the   environment
surrounding our operations since we reported a year ago.   The
indications  are  of  a continuation of a  difficult  business
climate in our main operating sectors, which in itself will no
doubt bring opportunities as well as problems.

We  indicated  with  the  sale of  Robertsons  that  it  would
initially  be slightly earnings negative and this remains  the
position.   However, we also anticipated that  other  positive
factors  were likely to come through this year to help  offset
that.   I  am pleased to report that early trading in the  new
financial year is indeed encouraging and the intended  capital
expenditure  in the flour mill is expected to generate  longer
term benefits.

Recognising  what has to be done, and having the  resolve  and
quality  of  management to make changes and see them  through,
has stood us in good stead this last year and we will continue
to be realistic and proactive in the year ahead.


David Newton                                   8 November 1999
Chairman


             CONSOLIDATED PROFIT AND LOSS ACCOUNT
               for the year ended 28 August 1999
                               
                                          28 August  29 August
                                               1999       1998
                                               £000       £000
Turnover: group and share
  of joint venture
Continuing operations                        99,129     97,132
Acquisitions                                  1,079          -
                                             ------     ------
                                            100,208     97,132

Less: share of turnover of joint
  venture - continuing operations            (2,872)         -
                                             ------     ------
Group turnover                               97,336     97,132
                                             ======     ======
Operating profit:
Continuing operations                         2,375        748
Acquisitions                                      2          -
                                             ------     ------
Group operating profit                        2,377        748

Share of operating profit/(loss) in
Joint venture                                   (10)         -
Associate - discontinued                        558        492
                                             ------     ------
Total operating profit: group
  and share of
  joint venture and associate                 2,925      1,240

Continuing operations
Investment income                                 6          1

Discontinued operations
Profit on sale of associate                   1,434          -
Profit/(loss) on disposal of fixed assets        75     (1,826)
                                             ------     ------
Profit/(loss) on ordinary
  activities before interest                  4,440       (585)

Interest receivable
Group                                            23         65
Joint venture                                    10          -
Associate                                        12         19
Interest payable - group                     (1,168)    (1,342)
                                             ------     ------
Profit/(loss) on ordinary activities
  before taxation                             3,317     (1,843)
Taxation                                       (940)       292
                                             ------     ------
Profit/(loss) on ordinary activities
  after taxation                              2,377     (1,551)
Minority interest                               (14)       130
                                             ------     ------
Profit/(loss) for the financial year          2,363     (1,421)
Dividends                                      (640)      (400)
                                             ------     ------
Retained profit/(deficit) for
  the financial year                          1,723     (1,821)
                                             ======     ======
Earnings per ordinary share:
Basic                                         29.5p     (17.8p)
Diluted                                       29.5p     (17.7p)
Alternative basis                             19.8p       5.3p

Dividends per share                            8.0p       5.0p

                  CONSOLIDATED BALANCE SHEET
                       at 28 August 1999
                               
                               
                                       1999           1998
                                    £000   £000    £000   £000

FIXED ASSETS
Intangible assets                     60              -
Tangible assets                   18,141         19,464
                                  ------         ------
                                  18,201         19,464
INVESTMENTS
Investment in joint venture          100              -
Investment in associate                -            808
Other investments                     23             23
                                  ------         ------
                                         18,324         20,295
CURRENT ASSETS
Assets held for resale               307            437
Stocks                             7,723          7,204
Debtors                           16,098         15,331
Cash at bank and in hand             102            602
                                  ------         ------
                                  24,230         23,574
CREDITORS
Amounts falling due
  within one year                 21,043         23,379
                                  ------         ------
NET CURRENT ASSETS                        3,187            195
                                         ------         ------
TOTAL ASSETS LESS
  CURRENT LIABILITIES                    21,511         20,490

CREDITORS
Amounts falling due after
  more than one year               2,506          3,263

PROVISIONS FOR LIABILITIES
  AND CHARGES                      1,578          1,483

DEFERRED INCOME                      345            415
                                  ------         ------
                                          4,429          5,161
                                         ------         ------
                                         17,082         15,329
                                         ======         ======
CAPITAL AND RESERVES
Called-up share capital                   1,999          1,999
Reserves                                 14,794         13,055
                                         ------         ------
Equity shareholders' funds               16,793         15,054
Minority interests - equity                 289            275
                                         ------         ------
                                         17,082         15,329
                                         ======         ======


               CONSOLIDATED CASH FLOW STATEMENT
               for the year ended 28 August 1999
                               
                               
                                                 1999     1998
                                                 £000     £000

Net cash inflow from
  operating activities                          2,511    4,197
                                               ------   ------
Dividend received from associate                  390      400
                                               ------   ------
Returns on investment and
  servicing of finance
Interest received                                  23       66
Interest paid                                  (1,110)  (1,253)
Interest paid on finance leases                   (89)     (91)
Investment income received                          6        1
                                               ------   ------
Net cash outflow from returns
  of investments
  and servicing of finance                     (1,170)  (1,277)
                                               ------   ------
Taxation                                           90     (899)
                                               ------   ------
Capital expenditure and
  financial investment
Purchase of tangible fixed assets              (1,547)  (4,503)
Proceeds of tangible fixed assets               1,775      326
Investments purchased                               -      (10)
Proceeds of assets held for resale                197        -
                                               ------   ------
                                                  425   (4,187)
                                               ------   ------
Acquisitions and disposals
Purchase of subsidiary undertakings                 -     (424)
Purchase of trade                                (185)  (1,192)
Net cash acquired in subsidiary                     -      121
Investment in joint venture                      (100)       -
Disposal of interest in
  associated undertaking                        2,243        -
                                               ------   ------
                                                1,958   (1,495)
                                               ------   ------

Equity dividends paid                            (400)    (919)
                                               ------   ------
Cash inflow/(outflow) before
  management of liquid
  resources and financing                       3,804   (4,180)
                                               ------   ------
Financing                                      (1,606)  (1,237)
                                               ------   ------
Increase/(decrease) in cash
  and cash equivalents                          2,198   (5,417)
                                               ======   ======



NOTES

1    Segmental Analysis                          1999     1998
                                                 £000     £000
     Turnover

     Agriculture                               68,390   74,134
     Food                                      18,484   13,559
     Engineering                               10,462    9,439
                                               ------   ------
                                               97,336   97,132
     Group operating profit

     Agriculture                                1,103     (288)
     Food                                         504      277
     Engineering                                  854      858
     Central costs                                (84)     (99)
                                               ------   ------
                                                2,377      748
                                               ======   ======

     Turnover  for Food increased by £1,079,000 and  operating
     profit by £2,000 as a result of an acquisition made  this
     year.

2.   The  calculation of basic earnings per share is based  on
     the  profit  for the financial year of £2,363,000  (1998:
     loss £1,421,000) and on 7,996,639 shares (1998: 7,995,010
     shares)  being the weighted average number of  shares  in
     issue during the year.

     The calculation of diluted earnings per share is based on
     the  profit  for the financial year of £2,363,000  (1998:
     loss £1,421,000) and on 7,998,406 shares (1998: 8,036,797
     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 £2,363,000 deducting  exceptional
     items  of  £1,046,000 net of related tax of  £268,000  to
     give a profit for the financial year of £1,585,000 (1998:
     profit £425,000).

3    Cost of sales and other operating income and expenses
                                                 1999     1998
                                                 £000     £000
     
     Cost of sales:
       normal                                  82,765   84,469
       exceptional                                  -       94
                                               ------   ------
                                               82,765   84,563
                                               ------   ------
     Gross profit                              14,571   12,569
     
     Net operating expenses
     
     Distribution costs                        (5,511)  (5,471)
     Administrative expenses:
       normal                                  (6,220)  (5,783)
       exceptional                               (463)    (567)
                                               ------   ------
     Operating profit                           2,377      748
                                               ------   ------


     In  1999  the exceptional administrative costs relate  to
     the  costs incurred in the year and a provision  for  the
     likely   costs   of  defending  proceedings   against   a
     subsidiary  undertaking.  This litigation  relates  to  a
     dispute  with  a competitor in the US which alleges  that
     the  subsidiary undertaking has infringed a trademark  in
     the  US.  The directors are of the opinion, having  taken
     legal advice, that the claim can be successfully resisted
     by the subsidiary undertaking and feel it is commercially
     desirable   to  defend  the  proceedings  and   therefore
     provision has been made for the likely legal costs.

     In  1998 the exceptional items relate to the cessation of
     production  of  animal  feed and the  relocation  of  the
     fertiliser production facilities.

4.   The preliminary results for the year ended 28 August 1999
     are   unaudited  and  do  not  constitute  the  Company's
     statutory   accounts.   Comparative  figures  have   been
     derived from the statutory accounts for the year ended 29
     August 1998 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 28 August 1999 will in due course  be
     delivered to the Registrar of Companies.