Interim Results

Cranswick PLC
16 November 2004


Embargoed 7am Tuesday November 16 2004


                       CRANSWICK plc: INTERIM RESULTS IN
                             LINE WITH EXPECTATIONS


Cranswick plc, the food producer, announces its unaudited interim results for
the six months ended September 30 2004.

Highlights:

   •Turnover up 8 per cent at £144.3m (2003: £133.8m)
   •Profit before tax and goodwill amortisation £10.5m (2003: £11.5m)
   •Earnings per share at 17.8p (2003: 19.5p)
   •Positive outlook to second half
   •Interim dividend increased 7 per cent to 4.7p per share (2003: 4.4p)

Chairman Martin Davey said: 'In the May 2004 statement to shareholders it was
stated that first half profits would be adversely affected by two factors that
had also impacted on 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 with regard to these issues is
more positive.

'Sales of food products rose 11 per cent with particularly strong growth in
fresh pork and continued growth in charcuterie sales. During the period the
Company established a joint venture for the production of dry cured bacon which
has attracted a very encouraging initial response from retail customers.

'The Company is well positioned to continue its growth. The strong cash
generation of the business has enabled significant investment to be made in
production facilities which will provide additional capacity and generate
operational efficiencies to combat the challenges of the trading environment.'



                                     -Ends-



Note to Editors

Cranswick is a Yorkshire based company with interests in the production and sale
of fresh pork, gourmet sausages, delicatessen cooked meats, charcuterie,
traditional dry cured bacon and sandwiches. In the year to March 2004 sales
totalled £270 million, having grown 70 per cent since 2000.

The food division, which includes the agribusiness activity, accounts for 90 per
cent of Cranswick's turnover. In addition, the Company has a pet division
involved in the production of bird and small animal food and the supply of
aquatic products.


For further information:

Martin Davey, Chairman                                              07775 576426
John Lindop, Finance Director                                       07768 362592
Bernard Hoggarth, Chief Executive (Food)                            07836 703434
Cranswick plc

Paul Quade                                                         020 7334 0243
CityRoad Communications                                             07947 186694





                           STATEMENT TO SHAREHOLDERS


Results and review of activities

Turnover in the period rose 8 per cent to £144.3m compared to the same period
last year, profit before tax and goodwill amortisation was 8 per cent lower at
£10.5m and earnings per share 9 per cent lower at 17.8p. This was in line with
management's expectations. In the May 2004 statement to shareholders it was
stated that the first half profits 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 with regard to these
issues is more positive.

The Sandwich Factory, winner in a number of categories at the 2004 British
Sandwich Association Awards, has regained the business lost a year ago. On the
animal feed side, raw material prices post harvest have fallen significantly, as
anticipated, reducing pressure on margins. In addition, 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 some
transfer of tonnage to Cranswick leaving this mill operating at close to
capacity and the surplus site and equipment sold.

The Company's food division, which includes the agribusiness activity, increased
sales by 7 per cent to £129m, representing 90 per cent of total Company sales.
Within this, agribusiness sales were 12 per cent lower at £17m reflecting
maintained pig feed sales and reduced external pig marketing sales, although
internal supply increased. Sales of food products rose 11 per cent to £112m with
particularly strong growth in fresh pork and continued growth in charcuterie
sales. The Company was successful at the 2004 SuperMeat Awards in winning the
'Best Pork Product' category as well as being named 'Overall Winner' for its
Pork Rib Roast. Disruption from the fire at the Cottingham sausage factory
during the summer has been kept to a minimum and it is not envisaged that there
will be any material profit impact as a consequence of adequate insurance cover.
During the period the Company established a joint venture for the production of
traditional dry cured bacon with 'Jack Scaife', a long established family
business originally based in Yorkshire but now relocated to the Company's
Waterfoot site. Initial response from retail customers has been very
encouraging.

Sales were up by 12 per cent in the pet food and aquatics business to in excess
of £15m, driven by a 14 per cent increase from the food business and a 9 per
cent increase in aquatics. The range of feeders to complement sales of food for
garden birds was extended and is a key component of our presence in this market.
Following on the success of the Manchester aquatic facility, opened in 2001, a
second regional facility was opened in the period located in Bristol.

Cashflow and borrowings

The net cash inflow from operating activities for the first half remained strong
at £10.9m compared with £9.3m previously. Interest was covered 25 times. Tax and
dividend payments were, as expected, ahead of the same period last year and
capital expenditure amounted to £12.7m, of this £4.0m related to the new sausage
factory in Hull, £2.8m to the second unit at the charcuterie business in
Manchester and £5.2m to the pet food facility at Driffield. Loan notes in
respect of the earn-out for North Wales Foods amounting to £0.8m were repaid in
September 2004 leaving a decrease in cash for the six months of £9.5m. Net
borrowings at 30 September 2004 amounted to £22.7m, 31 per cent of shareholders
funds, with interest cover remaining at a very comfortable level.

Dividend

The interim dividend is being increased by 7 per cent to 4.7p per share. The
dividend will be paid on 21 January 2005 to shareholders on the register at the
close of business on 26 November 2004. Shareholders will again have the option
to receive the dividend by way of scrip issue.

Outlook

The Company is well positioned to continue its growth. The strong cash
generation of the business has enabled significant investment to be made in
production facilities which will provide additional capacity and generate
operational efficiencies to combat the challenges of the trading environment.
The business has seen significant growth in sales in recent years and has
experienced management teams in place at each of the operations seeking further
opportunities to continue the successful and controlled development of the
Company.



Martin Davey
Chairman
16 November 2004







                       UNAUDITED PROFIT AND LOSS ACCOUNT
                   for the six months ended 30 September 2004

                                                  Half                 Year to
                                                  Year                 31
                                                                       March
                                           2004                 2003      2004
                                          £'000                £'000     £'000
Turnover                                144,314              133,784   270,116
                                           ------               ------ ---------

Operating profit                          9,800               10,618    19,602
                                           ------               ------ ---------

Operating profit before goodwill         10,988               11,691    21,842
amortisation
Interest charge                             441                  168       683
                                           ------               ------ ---------

Profit before taxation & goodwill
amortisation                             10,547               11,523    21,159
Goodwill amortisation                     1,188                1,073     2,240
                                           ------               ------ ---------

Profit before taxation                    9,359               10,450    18,919
Taxation                                  3,163                3,457     6,356
                                           ------               ------ ---------

Profit after taxation                     6,196                6,993    12,563
Equity dividends                          1,949                1,819     5,462
                                           ------               ------ ---------

Retained profit                           4,247                5,174     7,101
                                           ------               ------ ---------

Earnings per share : adjusted              17.8p                19.5p     35.8p
                                           ------               ------ ---------
: basic                                    14.9p                16.9p     30.4p
                                           ------               ------ ---------
: diluted                                  14.9p                16.8p     30.2p
                                           ------               ------ ---------

Dividends per share                         4.7p                 4.4p     13.2p
                                           ------               ------ ---------


Notes:
     
1.   Basic earnings per share is based on the profit after taxation of
     £6,196,000 (2003 - £6,993,000) and the average number of ordinary shares in
     issue of 41,458,375 (2003 - 41,278,041). The calculation of diluted 
     earnings per share is based on 41,655,816 (2003 - 41,665,098) ordinary 
     shares. Adjusted earnings per share is stated before goodwill amortisation 
     of £1,188,000 (2003 - £1,073,000) based on 41,458375 (2003 - 41,278,041) 
     ordinary shares

2.   The taxation charge for the 6 months to 30 September 2004 reflects the
     estimated rate for the full year.

3.   The accounting policies used in the preparation of the financial
     statements for the six months to 30 September 2004 are the same as those 
     used for the statutory accounts for the year ended 31 March 2004.

4.   The interim report has been approved by the Board of Directors and is
     unaudited. The information does not constitute statutory accounts within 
     the meaning of Section 240 of The Companies Act 1985.

5.   The statutory accounts for the year ended 31 March 2004 received an
     unqualified audit report and have been filed with the Registrar of 
     Companies. Comparative figures for the year to 31 March 2004 have been 
     extracted from these accounts.

6.   The Company intends to post the Interim Report to shareholders on 17
     November 2004. Further copies will be available upon request from the 
     Company Secretary, Cranswick plc, Cranswick, Driffield, East Yorkshire, 
     YO25 9PF.





                            UNAUDITED BALANCE SHEET
                            as at 30 September 2004


                                                    Half               Year to
                                                    Year               31
                                                                       March
                                             2004               2003      2004
                                            £'000              £'000     £'000

Fixed Assets
Intangible fixed assets                    40,263             41,773    41,451
Tangible fixed assets                      47,988             34,729    38,047
                                           --------             ------  --------
                                           88,251             76,502    79,498
                                           --------             ------  --------


Current assets
Stocks                                     12,507              9,948    11,884
Debtors                                    36,951             32,631    33,212
Cash at bank and in hand                    2,231              2,069     2,801
                                           --------             ------  --------
                                           51,689             44,648    47,897
                                           --------             ------  --------

Creditors - amounts falling due within
one year
Loan notes payable                          1,208              1,316     1,173
Bank overdraft                             23,706             15,487    14,843
Hire purchase                                   -                 99        49
Creditors                                  34,023             29,892    33,066
Corporation tax                             3,194              3,582     3,301
Proposed equity dividends                   1,949              1,819     3,667
                                           --------             ------  --------
                                           64,080             52,195    56,099
                                           --------             ------  --------

Net current liabilities                   (12,391)            (7,547)   (8,202)

Deferred taxation                          (2,302)            (1,994)   (2,302)
Government grants                            (131)              (166)     (148)
                                           --------             ------  --------

Total assets less liabilities              73,427             66,795    68,846
                                           --------             ------  --------

Capital and reserves
Share capital                               4,165              4,151     4,157
Reserves                                   69,262             62,644    64,689
                                           --------             ------  --------
                                           73,427             66,795    68,846
                                           --------             ------  --------









                         UNAUDITED CASH FLOW STATEMENT
                   for the six months ended 30 September 2004


                                                   Half                Year to
                                                   Year                31
                                                                       March

                                            2004                2003      2004
                                           £'000               £'000     £'000
Operating activities
Net cash inflow from operating            10,903               9,297    21,308
activities                                --------             -------   -------

Returns on investment and servicing of
finance
Net bank interest                           (390)               (203)     (618)
Loan note interest paid                      (23)               (140)     (139)
Hire purchase interest paid                    -                   -        (1)
                                          --------             -------   -------
                                            (413)               (343)     (758)
                                          --------             -------   -------

Taxation paid                             (3,270)             (2,971)   (5,842)
                                          --------             -------   -------

Capital expenditure and financial
investment
Purchase of tangible fixed assets        (12,729)             (3,978)   (9,565)
Proceeds of sale of tangible fixed           240                  94       180
assets                                    --------             -------   -------
                                         (12,489)             (3,884)   (9,385)
                                          --------             -------   -------

Acquisitions and disposals
Purchase of subsidiary undertaking             -             (15,122)  (15,122)
Net cash acquired with subsidiary              -                (493)     (493)
undertaking                               --------             -------   -------
                                               -             (15,615)  (15,615)
                                          --------             -------   -------

Equity dividends paid                     (3,336)             (2,975)   (4,608)
                                          --------             -------   -------

Cash outflow before financing             (8,605)            (16,491)  (14,900)
                                          --------             -------   -------

Financing
Loan note repayments                        (800)             (3,500)   (3,643)
Capital element of hire purchase             (49)                (50)     (100)
payments                                  --------             -------   -------
Net cash outflow from financing             (849)             (3,550)   (3,743)
                                          --------             -------   -------

Decrease in cash in the period            (9,454)            (20,041)  (18,643)
                                          --------             -------   -------

Reconciliation of operating profit to net cash
inflow
from operating activities

Operating profit                           9,800              10,618    19,602
Goodwill amortisation                      1,188               1,073     2,240
Depreciation (net of government grants)    2,515               2,183     4,575
Loss/(profit) on sale of tangible fixed
assets                                         2                 (20)       12
Increase in stocks                          (623)               (493)   (2,429)
Increase in debtors                       (3,731)             (3,346)   (3,944)
Increase/(decrease) in creditors           1,752                (718)    1,252
                                          --------             -------   -------
Net cash inflow from operating            10,903               9,297    21,308
activities                                --------             -------   -------




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