Pre-close trading update

Carr's Milling Industries PLC
17 February 2006




                         CARR'S MILLING INDUSTRIES PLC


                       Pre-Half Year Close Trading Update


Carr's, the Cumbria-based Agriculture, Food and Engineering group, proposes to
announce its results for the 26 weeks to 4 March 2006 in late April 2006. The
Board expects these results to report a further substantial increase in pre-tax
profit after adjusting for the exceptional gain on the disposal of the Bendalls
Engineering site in October 2004. Trading, however, remains mixed, as was stated
at the AGM on 9 January 2006. Compound feed and fertiliser are experiencing
market-related difficult times, but the rest of Agriculture, together with Food
and Engineering, are trading well.


Since the AGM, the compound animal feed market has continued to deteriorate,
with sales for the first half year down year-on-year on a like-for-like basis.
This reflects delays for farmers in receipt of the Single Farm Payment, the low
milk price, and animals feeding outside in the mild winter weather; in addition,
margins are lower as a result of the increased cost of energy. While the peak
selling season of February - April is in an early stage, fertiliser volumes are
expected to be down approximately 12% for the first half year, reflecting
farmers' reluctance to pay energy- related higher prices. However, sales of
feedblocks in both the UK and USA are ahead of last year and the retail and
machinery branches are trading satisfactorily. Further, the rationalisation of
UK compound feed capacity following the Pye Bibby acquisition has proved timely
and the disposal of surplus sites is progressing well.


Food continues to trade ahead of both last year and budget. The half year will
benefit from the inclusion for the whole period of the acquisition of Meneba UK,
with its two flour mills, which was effected on 18 November 2004. Accordingly,
Food's interim profit will be substantially increased.


Engineering is also up on both last year and budget, with its return to profit
consolidated.


Carr's results for the 26 weeks to 4 March 2006 will be its first to be prepared
under International Financial Reporting Standards. The effect of its adoption on
annual profits is expected to be positive, perhaps to the extent of
approximately £0.5m, principally as a result of changes in accounting policy for
pensions under IFRS.


As at the time of the AGM, we remain confident of making further progress this
year; however, the challenging UK agricultural market conditions may temper the
strong performance we were previously expecting.


Enquiries:

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

Bankside Consultants Limited
Charles Ponsonby                                                   020-7367 8851
                                                   [e-mail]




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