Carr’s Milling Industries PLC
Old Croft, Stanwix
Carlisle CA3 9BA
www.carrs-milling.com
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
growing
Carr’s Milling Industries PLC Annual Report & Accounts 2005 growing
CARR’S MILLING INDUSTRIES
ACTIVITIES ARE FOCUSSED ON
AGRICULTURE, FOOD AND
ENGINEERING WITH INCREASED
ANNUAL SALES OF
£1 92. 1m
01 Financial Highlights
02 Chairman’s Statement
04 Chief Executive’s Review
08 Board of Directors
08 Registered Office and Advisers
09 Directors’ Report
12 Corporate Governance
15 Independent Auditors’ Report
16 Directors’ Remuneration Report
20 Consolidated Profit and Loss Account
21 Statement of Group Total Recognised
Gains and Losses
21 Note of Group Historical Cost Profits
and Losses
22 Consolidated Balance Sheet
23 Company Balance Sheet
24 Consolidated Cash Flow Statement
25 Statement of Accounting Policies
27 Notes to the Financial Statements
54 Five Year Statement
55 Notice of Annual General Meeting
IBC Directory of Operations
2005 2004
£’000 £’000
Group turnover 192,124 155,749
Group operating profit 6,816 5,036
Profit before tax and exceptional items 6,141 5,127
Profit before tax 9,016 5,127
Net cash inflow from operating activities 6,644 6,256
Net debt 14,915 5,758
Group capital employed 31,271 25,310
Earnings per share 
Basic 87.5p 39.9p
Adjusted 47.7p 39.9p
Dividends
Interim paid 5.0p 4.5p
Final proposed 11.0p 9.0p
Total 16.0p 13.5p
2005:
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Directory of Operations
Carr’s Milling Industries PLC
Old Croft, Stanwix, Carlisle,
Cumbria CA3 9BA
Tel: 01228 554600
Fax: 01228 554601
Website: www.carrs-milling.com
Animal Feed Supplements Inc
East Highway 212, 
PO Box 188, Belle Fourche, 
South Dakota 57717 USA
Tel: 00 1 605 892 3421
Fax: 00 1 605 892 3473
Animal Feed Supplements Inc
PO Box 105, 
101 Roanoke Avenue, Poteau,
Oklahoma 74953 USA
Tel: 00 1 918 647 8133
Fax: 00 1 918 647 7318
Caltech
Solway Mills, Silloth, Wigton,
Cumbria CA7 4AJ
Tel: 016973 32592
Fax: 016973 32339
Carrs Billington Agriculture
(Operations)*
Parkhill Road, 
Kingstown Industrial Estate,
Carlisle CA3 0EX
Tel: 01228 529 021
Fax: 01228 554 397
Carrs Billington Agriculture
(Operations)*
Lansil Way, Lancaster LA1 3QY
Tel: 01524 597 200
Fax: 01524 597 219
Carrs Billington Agriculture
(Operations)*
High Mill, Langwathby, Penrith, 
Cumbria CA10 1NB
Tel: 01768 889 800
Fax: 01768 889 807
Carrs Billington Agriculture
(Operations)*
Cold Meece, Stone, 
Staffordshire ST15 0QW
Tel: 01785 760 535
Fax: 01785 760 888
Carrs Billington Agriculture
(Operations)*
Powhill, Kirkbride, 
Cumbria CA5 5AJ
Tel: 01697 352 229
Fax: 01697 352 248
Carrs Billington Agriculture
(Operations)* 
Uredale Mill, Askrigg, Leyburn, 
North Yorkshire DL8 7HZ
Tel: 01969 650 229
Fax: 01969 650 770
Carrs Fertilisers, Invergordon
Inverbreakie Industrial Estate,
Invergordon, Ross-shire IV18 0QN
Tel: 01349 853 745
Fax: 01349 854 066
Carrs Fertilisers, Montrose
River Street, Montrose, 
Angus DD10 9RT
Tel: 01674 678 400
Fax: 01674 671 318
Carrs Fertilisers, Silloth
The Wath, Silloth, Wigton,
Cumbria CA7 4PH
Tel: 016973 32333
Fax: 016973 32279
Carrs Billington Agriculture
(Sales), Annan
25 High Street, Annan,
Dumfriesshire DG12 6AE
Tel: 01461 202 772
Fax: 01461 202 712
Carrs Billington Agriculture
(Sales), Barnard Castle
Montalbo Road, Barnard Castle,
Co Durham DL12 8ED
Tel: 01833 637 537
Fax: 01833 638 010
Carrs Billington Agriculture
(Sales), Buchlyvie
Main Street, Buchlyvie, 
Stirling FK8 3NQ
Tel & Fax: 01360 850 372
Carrs Billington Agriculture
(Sales), Carlisle
Montgomery Way, Rosehill
Estate, Carlisle CA1 2UY
Tel: 01228 520 212
Fax: 01228 512 572
Carrs Billington Agriculture
(Sales), Cockermouth
Unit 5, Lakeland Agricultural
Centre, Cockermouth CA13 0QQ
Tel: 01900 824 105
Fax: 01900 826 860
Carrs Billington Agriculture
(Sales), Hexham
Tyne Mills Industrial Estate,
Hexham, 
Northumberland NE46 1XL
Tel: 01434 605 371
Fax: 01434 608 938
Carrs Billington Agriculture
(Sales), Milnathort
Stirling Road, Milnathort, 
Kinross KY13 9UZ
Tel: 01577 862 381
Fax: 01577 863 057
Carrs Billington Agriculture
(Sales), Morpeth
20c Coopies Lane Industrial
Estate, Morpeth, 
Northumberland NE61 6JN
Tel: 01670 503 930
Fax: 01670 504 404
Carrs Billington Agriculture
(Sales), Penrith
Haweswater Road, 
Penrith Industrial Estate, Penrith,
Cumbria CA11 9EH
Tel: 01768 862 160
Fax: 01768 899 345
Carrs Billington Agriculture
(Sales), Perth
Highland House, 
St Catherine’s Road, 
Perth PH1 5YA
Tel & Fax: 01738 643 022
Carrs Billington Agriculture
(Sales), Brock
Brockholes Way, 
Claughton Trading Estate,
Lancaster Old Road,
Claughton on Brock, 
Preston PR3 0PZ
Tel: 01995 643 200
Fax: 01995 643 220
Carrs Billington Agriculture
(Sales), Gisburn
Pendle Mill, Mill Lane, Gisburn,
Clitheroe, Lancashire BB7 4ES
Tel & Fax: 01200 445 491
Carrs Billington Agriculture
(Sales), Hawes
Burtersett Road, Hawes, 
North Yorkshire DL8 3NP
Tel: 01969 667 334
Fax: 01969 667 335 
Carrs Billington Agriculture
(Sales), Leek
Macclesfield Road, Leek,
Staffordshire ST13 8NR
Tel & Fax: 01538 383 277
Wallace Oils, Carlisle
Stephenson Industrial Estate,
Willowholme, Carlisle,
Cumbria CA2 5RN
Tel: 01228 534 342
Fax: 01228 590 820
Wallace Oils, Dumfries
Heath Hall, Dumfries,
Dumfriesshire DG1 3NX
Tel: 01387 250 525
Fax: 01387 250 656
Wallace Oils, Stranraer
Droughduil, Dunragit,
Stranraer DG9 8QA
Tel & fax: 01581 400 356
Bendalls
Brunthill Road,
Kingstown Industrial Estate,
Carlisle CA3 0EH
Tel: 01228 526 246
Fax: 01228 525 634
R Hind
Kingstown Broadway, 
Kingstown Industrial Estate,
Carlisle CA3 0HA
Tel: 01228 523 647
Fax: 01228 512 712
Carrs MSM
Unit 1 Spitfire Way,
Hunts Rise,
South Marston Park,
Swindon, Wiltshire SN3 4TX
Tel: 01793 824 891
Fax: 01793 824 894
Carrs Flour
Solway Mills, Silloth, Wigton,
Cumbria CA7 4AJ
Tel: 016973 31661
Fax: 016973 32543
Greens Flour
Station Road, Maldon, 
Essex CM9 4LQ
Tel: 01621 852 696
Fax: 01621 854 525
Hutchisons Flour
East Bridge, Kirkcaldy, 
Fife KY1 2SR
Tel: 01592 267 191
Fax: 01592 641 805
John Stronach
Solway Mills, Silloth, Wigton,
Cumbria CA7 4AJ
Tel: 016973 31456
Fax: 016973 32808
B&A Travel
18 Main Street, Beith, 
Ayrshire KA15 2AA
Tel: 01505 504 547
Fax: 01505 504 812
* associate company 01
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
our business
TO:
£6. 1m
BY: 
19.8%
UNDERLYING PROFIT INCREASED
Financial Highlights
Turnover £m
01 02 03 04 05
113
143
149
156
192
Profit before tax (and
exceptional items) £m
01 02 03 04 05
2.3
3.3
4.6
5.1
6.1
Earnings per share
(adjusted) (p)
01 02 03 04 05
23.9
33.3
34.7
39.9
47.7
Dividends (p)
01 02 03 04 05
8.0
9.5
11.5
13.5
16.0
Statutory numbers 
are given in the
Chairman’s Statement
and reconciliations are
given in the Notes to the
Financial Statements 02
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Chairman’s Statement 
by Richard Inglewood
IN MY FIRST CHAIRMAN’S
STATEMENT, IT IS A PARTICULAR
PLEASURE TO CONVEY FURTHER
GOOD NEWS. The period ended 
3 September 2005 was one of
major expansion for the Group. 
In November 2004, the acquisition of Meneba (UK) more than doubled
the size of Carr’s flour business, and in July 2005 the acquisition by our
associate company, Carrs Billington Agriculture (Operations), of certain
assets of W & J Pye (in administration) nearly doubled volumes of
compound and blended animal feed. In addition, Crystalyx Products, a
feed block joint venture, was established in Germany and a Carlisle-based
fuel oil distributor, Wallace Oils, was acquired.
The year also witnessed a seventh successive annual increase in adjusted
earnings per share.
Prospects for further progress remain good.
the future is
positive 03
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
FINANCIAL REVIEW
The figures in this paragraph take no account of exceptional items. In
the 53 weeks (2004: 52 weeks), on turnover up 23.4% at £192.1m
(2004: £155.7m), total operating profit increased by 26.9% to £7.33m
(2004: £5.78m), whilst pre-tax profit was 19.8% ahead at £6.14m
(2004: £5.13m). Adjusted earnings per share advanced by 19.5% to
47.7p (2004: 39.9p). 
Exceptional items comprise an exceptional gain of £4.11m on the
disposal of the Bendall’s site and charges of £0.35m and £0.89m for
the post acquisition rationalisation of the acquired flour business and the
Pye business, respectively, a net gain of £2.88m. 
After exceptional items, the reported figures were a total operating profit
of £6.1m (2004: £5.8m), pre-tax profit of £9.02m (2004: £5.13m) and
earnings per share of 87.5p (2004: 39.9p).
Period end equity shareholders’ funds increased by 23.2% to £29.61m
(2004: £24.04m), representing net assets per share of 360.5p (2004:
297.7p). Net debt of £14.92m compared with £5.76m at 28 August
2004, giving gearing of 50.4% and 24.0%, respectively. This reflects the
£8.75m of cash required to fund the Meneba acquisition and the £1.32m
initial cash consideration for the Wallace acquisition. Net interest payable of
£1.19m (2004: £0.65m) was covered 6.2 times (2004: 8.9 times) by
total operating profit before exceptional items.
DIVIDENDS
A final dividend per share of 11.0p (2004: 9.0p), up 22.2%, is
proposed, payable on 19 January 2006 to shareholders on the register
at close of business on 16 December 2005, with an ex-dividend date of 
14 December 2005.
Together with the interim dividend per share of 5.0p (2004: 4.5p), total
dividends per share are 18.5% higher at 16.0p (2004:13.5p), covered
3.0 times (2004: 3.0 times) by adjusted earnings per share.
The AGM will be held at 11.30 a.m. on Monday 9 January 2006 at the
Crown Hotel, Wetheral, Carlisle.
BUSINESS OVERVIEW
This has been a significant period for Carr’s, which included major
acquisitions strengthening our position in both the food and agriculture
markets. It is a testament to the underlying strength of our business
that it continued to perform well during this busy period. We are
especially pleased with the performance of our food business which,
despite flooding at a major customer’s premises in Carlisle in January
2005 and a serious fire at another customer one month later,
successfully integrated the Meneba business, with its two mills at
Kirkcaldy (Fife) and Maldon (Essex).
In July 2005 the Pye acquisition comprising four compound feed mills
and one blended feed mill enabled a certain amount of rationalisation 
in animal feed production which was commercially necessary. The
integration of this business with Carrs Billington Agriculture Operations
has proved challenging as we rationalise and we anticipate benefits to
be forthcoming in 2006.
Another major event late in the period was the disposal of the site from
which Bendalls Engineering operated and its relocation to a newly built
factory elsewhere in Carlisle, together with the purchase of new
equipment. The move took place during June and July 2005 and was
completed with minimal disruption to our production timetable and our
customers.
In September, post period end, we formed a joint venture company with
Wynnstay Group PLC and Welsh Feed Producers Limited to market
and sell animal feed, fertilisers and other farm requirements in Wales.
Carr’s interest in the joint venture is 50%.
BOARD
Sadly, David Newton resigned from the Board, because of illness, 
at the time of the Interim Announcement in April 2005, having been 
non-executive Chairman since April 1996. David Newton made a major
contribution to the Group’s growth during his time on the Board for which
we are all grateful. We wish him every good fortune in his retirement.
In September 2005, I was appointed his successor, having been a 
non-executive director since September 2004.
At the same time, Alistair Wannop was appointed a non-executive
director, bringing the number of non-executive directors to three. Alistair is
a major figure in Cumbrian agriculture and brings to the Board expertise in
both agriculture and food.
OUTLOOK
Agriculture
Prospects for Agriculture very much depend upon the successful
integration of the compound and blended feed operations of Carrs
Billington Agriculture with those of the Pye acquisition. Nonetheless 
we are confident that the strategy we have followed will provide real
benefits. More generally, the UK Agriculture business will have to
contend with challenging market conditions made more difficult by the
uncertainty and damage to farmers’ cash flow directly caused by
changes in the support regime.
Food
Flour is trading strongly in a market which continues to be satisfactory.
Flour has and will benefit from the successful integration of the Carr’s
Flour Milling and Meneba operations and from the effect of a full-year’s
ownership of the latter.
Engineering
Engineering, much the Group’s smallest activity, is on an upward trend, but
its continuing success is likely to be influenced significantly by the extent of
Bendalls success in winning nuclear decommissioning work from BNFL.
OVERALL
The Board believes that, in the period ending 2 September 2006, the
expanded business will register another creditable performance for Carrs.
Richard Inglewood
Chairman
21 November 2005 04
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Chief Executive’s Review 
by Chris Holmes
the business
is growing
IN THE PERIOD ENDED 3 SEPTEMBER
2005, THE GROUP AGAIN ACHIEVED
RECORD UNDERL YING RESULTS.
Those were achieved from improved
trading in the Food division, in part as a
result of the Meneba UK flour acquisition,
Engineering division’s return to profit and
from the Agriculture division performing
well with results similar to last year. 05
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
FEED
The Group’s animal feed business comprises (in association with
Edward Billington & Sons Limited) the UK manufacture of animal feeds
by Carrs Billington Agriculture at Carlisle (Cumbria), Langwathby
(Cumbria), Lancaster (Lancashire) and Stone (Staffordshire) and the
blending of animal feeds at Askrigg (North Yorkshire), Kirkbride
(Cumbria) and Lancaster.
The market for ruminant animal feeds was difficult last year with severe
manufacturing over-capacity in the north of England resulting in margins
being under constant pressure. This resulted in reduced profits of own
feed and that of our associate company, Carrs Billington Agriculture
(Operations). In testing trading conditions it is important that we adhere
to our strategy and seize opportunities that secure our trading position.
Accordingly on 15 July 2005 our associate company acquired certain
trade and assets of W & J Pye Limited (in Administration) and
immediately initiated a consultation process with the management to
restructure the business. Following consultation it was agreed to cease
production at the acquired Blackburn and Shrewsbury feed mills in
addition to our feed mill at Penrith. The retained business was
transferred to our newly acquired feed mills in Lancaster and
Langwathby and also to our existing feed mills at Carlisle and Stone. 
On 1 October 2005, subsequent to the period end, we formed a new
joint venture company, Bibby Agriculture Limited, with Carrs Billington
Agriculture (Sales) being a 50% shareholder and Wynnstay Group PLC
and Welsh Feed Producers Limited each having a 25% shareholding.
Bibby Agriculture Limited will market animal feed, fertiliser and other
farm requirements in Wales with the feed supplied from the three
shareholders’ mills.
In the USA our two low-moisture animal feed block plants, at Belle
Fourche, South Dakota and Poteau, Oklahoma, manufacture Smartlic
and Feed in a Drum. During the period, they traded with large cost
increases in the base raw material, molasses. During the period we also
commenced marketing our range of equine products, Horslyx, which is
successfully sold in the UK, to the USA market, resulting in high initial
promotional costs. Consequently, the results are lower than last year.
However, the raw material cost increases are now recovered and, with
lower marketing costs associated with Horslyx, we expect profit growth
in the current year.
In the UK the growth of our speciality equine and calf products
continued. In February 2005, Horslyx Mini Licks, a treat for horses, 
was launched. Sales of Crystalyx continue to benefit from the adjacent
molasses terminal facility to the plant at Silloth in Cumbria.
In December 2005 we will commission a new low-moisture animal feed
plant to manufacture Crystalyx in Oldenburg, Germany with our 50%
joint venture partner, Agravis, one of Germany’s largest agricultural
companies. We look forward to growing new markets in continental
Europe.
FERTILISER
The fertiliser business performed well, with sales volumes of speciality
fertiliser encouraging and of traditional fertiliser similar to last year. The
investment programme to upgrade the production facilities at our three
blending sites – Invergordon (Easter Ross), Montrose (Angus) and
Silloth (Cumbria) – following the restructuring in 2003 was completed
during the period, giving higher capacity to meet seasonal demand.
The commitment to developing fertiliser products and services
appropriate to farming needs, post-CAP reform, is reflected in
increasing sales of our unique range of environmentally protective
fertiliser, New Choice. Through such developments Carr’s is well placed
to provide farmers with a whole-farm, integrated approach to nutrient
management covering all aspects of the soil/plant/animal cycle.
RETAIL
Again, we enjoyed a strong performance from our existing 14 retail
agricultural branches, operating from Milnathort in Kinross to Leek in
Staffordshire, with sales growth of 7%. We gained five branches from
the Pye acquisition which will help achieve our aim of continued growth
in retail. Our branches sell a wide product range to farmers with our
ultimate aim of providing a one stop shop supplying everything from
combine harvesters, tractors, feed, fertiliser, grass seed and wellington
boots, through to animal health products and minerals.
OIL
Pursuing our aim of growing the business and expanding our portfolio,
Wallace Oils was acquired in April 2005. Wallace Oils operates from three
depots in Cumbria and south west Scotland and supplies oils and lubricants
to a broad customer base. Cross-selling opportunities are presented
with both Carrs Billington Agriculture (Sales) and Carrs retail branches.
The full impact of this acquisition will be seen in the current year.
MACHINERY
Carrs Machinery distributes new and used agricultural and ground care
machinery from branches in Annan (Dumfriesshire), Carlisle and Penrith
(Cumbria), Hexham and Morpeth (Northumberland) and Barnard Castle
(County Durham). These branches have modern workshops and provide
a comprehensive store of spare parts.
Our sales expectations were again beaten, albeit at a lower level of
sales and profitability than the previous year.
Agriculture 06
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Chief Executive’s Review 
continued
Food
Carr’s principal food businesses are Carr’s Flour Mills, with a flour mill at
Silloth and since November 2004, the two flour mills acquired, Hutchisons
at Kirkcaldy (Fife) and Greens at Maldon (Essex). The Silloth mill
experienced a three month loss of flour sales as a result of the flooding at
McVitie’s biscuit factory in Carlisle on 8 January 2005. The impact of the
loss of trade was partly compensated by our insurance programme. In
addition, a serious fire at a customer’s plant bakery, also in Carlisle, in
February resulted in a total loss of flour sales. The bakery is not expected
to re-open. Notwithstanding these events, the Silloth mill performed well,
as did the acquired mills. The integration of the enlarged flour business has
gone well and the business has a strong market presence in the northern
area of the UK and has increased its market in the supply of speciality
mixes. The results of the acquisition in the nine months have been earnings
enhancing, not withstanding reorganisation costs of £0.35 million and are
ahead of expectations. 
The benefits next year of a full year’s trading of Greens and Hutchisons,
combined with the implemented cost savings, should outweigh the severe
increases in energy costs. 
Carrs Breadmaker flour brand range continues to sell well, with listings in
three major multiple retailers. 07
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Staff
David Newton, who became the
first non Carr family Chairman in
1996, suffered ill health last year,
retiring from the Board in April
2005. I would like to endorse the
Chairman’s comments by thanking
David for his contribution to the
Group, together with the support
to myself, and wish him a speedy
and full recovery.
2005 has been another year of
record results and I would like to
thank all my colleagues in the UK
and the USA for their individual
contributions in achieving a very
successful year in terms of the
results and positioning the Group
for the future.
Chris Holmes
Chief Executive Officer
21 November 2005 
Engineering comprises Bendalls and R Hind, both 
of which operate from independent sites on the
Kingstown Industrial Estate, Carlisle, and Carrs MSM
which is based in Swindon in Wiltshire. Bendalls,
designs and manufactures specialist steel fabrications
for the global petrochemical, nuclear, renewable
energy and process industries. R Hind provides
vehicle body building and accident repairs for cars
and commercial vehicles. Carrs MSM designs and
manufactures master slave manipulators, which are
key components for many industries but notably the
nuclear industry.
In the period, the Engineering division returned to
profit.
Bendalls performed well and enjoyed a steady flow
of work throughout the period. The high quality of
fabrication work for the nuclear and the oil industries
won many new contracts, not least a contract to
supply pressure vessels to BP for the Caspian Sea
offshore oil development. The sale of the London
Road site in Carlisle and relocation of the division to
the new purpose built 5,000 square metres factory
on the Kingstown Industrial Estate, Carlisle should
give Bendalls the opportunity of winning contracts
which its previous premises would have excluded it
from tendering for. The gain on the disposal of the
site in October was £4.11m and the net cash
retained by Bendalls was £1.3m after incurring the
cost of equipping the new factory and relocating.
Bendalls’ involvement in renewable energy is
ongoing, with the tidal energy project, “SeaGen”,
expected to be commissioned and connected to
the national grid in the second half of 2006. The
project has suffered from delays in release of
government funding resulting in late completion of
front end design activities.
Carrs MSM had a good year and entered the
current year with a good order book.
R Hind improved over the previous year and should
make steady progress this year.
Engineering 08
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Board of Directors
Registered Office
Carr’s Milling Industries PLC
Old Croft, Stanwix
Carlisle CA3 9BA
Registered No. 98221
Independent Auditors
PricewaterhouseCoopers LLP 
89 Sandyford Road
Newcastle upon Tyne NE1 8HW
Bankers
Clydesdale Bank PLC
82 English Street
Carlisle CA3 8HP
The Royal Bank of Scotland PLC
37 Lowther Street
Carlisle CA3 8EL
Financial Adviser and Broker
Investec Bank (UK) Limited 
2 Gresham Street
London EC2V 7QP
Solicitors
Atkinson Ritson
15 Fisher Street
Carlisle CA3 8RW
DLA
India Buildings
Water Street
Liverpool L2 ONH
Registrars
Capita Registrars 
Northern House
Woodsome Park
Fenay Bridge
Huddersfield HD8 0LA
Registered Office 
and Advisers
Top, left to right:
Lord Inglewood
Non-Executive Chairman
Chris Holmes
Chief Executive Officer
Ron Wood
Finance Director
Bottom, left to right:
Robert Heygate
Non-Executive Director
Alistair Wannop
Non-Executive Director 09
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Directors’ Report
The directors present their Annual Report together with the audited
financial statements for the period ended 3 September 2005.
PRINCIPAL ACTIVITIES
The principal activities are Agriculture, Food and Engineering and are
described in the Chairman’s Statement and the Chief Executive’s
Review on pages 2 to 7. Future developments and a review of
business are also described on pages 2 to 7. The financial statements
for the period ended 3 September 2005, including other information
about the Group’s financial position, are set out on pages 20 to 53.
DIVIDENDS
An interim dividend of 5.0p per ordinary share was paid on 27 May
2005. The directors now recommend the payment of a final dividend
of 11.0p per ordinary share, bringing the total for the period to
£1,313,000 (2004: 13.5p per ordinary share, totalling £1,090,000
for the year). Subject to approval at the Annual General Meeting, the
final dividend will be paid on 19 January 2006 to members on the
register at the close of business on 16 December 2005. Shares will
go ex-dividend on 14 December 2005.
SHARE CAPITAL
A total of 100,600 and 39,380 additional ordinary shares of 25p
each were issued during the period as a result of the exercise of
options under the Executive Share Option Plan and the Executive
Share Option Scheme respectively. Further details of the shares
issued under the Executive Share Option Scheme are given in the
Directors’ Remuneration Report.
ACQUISITIONS
On 18 November 2004 the Company acquired the entire share
capital of Meneba UK Holdings Limited for a consideration of 
£5.1 million including acquisition costs of £0.4 million. Meneba UK
owns and operates two flour mills, one in Kirkcaldy, Fife and the
other in Maldon, Essex. In addition the Company repaid £5.4 million
of inter-company debt owed by Meneba UK to its parent company
immediately following completion of the purchase.
On 28 April 2005 Carrs Billington Agriculture (Sales) Limited, the
Group’s 51% owned subsidiary company, acquired the entire share
capital of Wallace Oils Holdings Limited, an oil and lubricants
distribution business based in Carlisle and south west Scotland, for
£1.74 million including acquisition costs of £0.1 million, of which
£1.42 million was paid in cash with £0.32 million deferred
consideration payable over two years on achievement of profit targets.
On 15 July 2005 Carrs Billington Agriculture (Operations) Limited, the
Company’s 49% associate company, acquired certain fixed assets,
useable stock and trade debtors of W & J Pye (in administration), an
animal feed producer and distributor based in north west England, for
£15.0 million paid in cash.
POST BALANCE SHEET EVENTS
Details of post balance sheet events are given in note 36 to the
accounts.
PERSONNEL
The Group consists of a diverse range of companies which have
developed voluntary practices and procedures for employee involvement
appropriate to their own circumstances and needs. The Group
encourages this approach to provide information and consultation and
believes that this promotes a better understanding of the issues facing
the individual business in which the employee works.
The Group seeks to achieve and maintain a high standard in respect
of health and safety of employees by all practical means and the
active involvement of employees in matters of health and safety is
encouraged.
Employment policies are designed to provide equal opportunities
irrespective of colour, ethnic or natural origin, nationality, sex,
religion, marital or disabled status.
DIRECTORS AND THEIR INTERESTS
The directors of the Company at 3 September 2005 have been
directors for the whole of the period ended on that date except for 
Mr A G M Wannop who was appointed on 1 September 2005.
Mr D A Newton resigned from the Board in April 2005 because 
of illness.
Mr A G M Wannop was appointed a director since the last annual
general meeting, on 1 September 2005, and in accordance with the
Company’s Articles of Association is required to retire at the first
annual general meeting after his appointment. Mr A G M Wannop
offers himself for re-election.
In accordance with the Company’s Articles of Association, Mr C N C
Holmes retires by rotation at the forthcoming annual general meeting
and being eligible, offers himself for re-election. 
Biographical details of the directors are shown below:
Non-executive directors
Lord Inglewood (54) was a Conservative member of the European
Parliament for ten years until his retirement in 2004, was a
Government Minister from 1995 to 1997 and has been a member 
of the House of Lords since 1989. He brings to the Board wide
experience, in particular of EU and Westminster politics, allied with 
a knowledge of farming and of Carr’s north-west England heartland.
Mr A R Heygate (60) is an executive director of Heygate & Sons
Limited, the UK’s largest independent flour miller, and is also engaged
in animal feed compounding and other agricultural activities.
Mr A G M Wannop (43) is a director of English Food and Farming
Partnership and of Cumbria Vision. He has actively farmed in Cumbria
for many years.
Lord Inglewood, Mr A R Heygate and Mr A G M Wannop have two
year fixed term contracts which expire on 31 August 2007. 
Executive directors
Mr C N C Holmes (54) was appointed to the Board in January
1992, and as CEO in September 1994. Previously he held senior
management positions in the agricultural division of J Bibby & Sons.
Mr R C Wood (57) was appointed to the Board as Finance Director 
in January 1988 and is a member of the Chartered Institute of
Management Accountants. Mr R C Wood is also Company Secretary.
The two executive directors have service contracts which provide for
a rolling two year notice period. 10
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
CHARITABLE AND POLITICAL CONTRIBUTIONS
Charitable donations made by the Group during the period
amounted to £12,443 (2004: £7,535). No political contributions
were made (2004: Nil).
CREDITOR PAYMENT POLICY
It is the Company’s policy to agree terms of payment with its
suppliers when agreeing the terms of a business transaction or
transactions. All suppliers are aware of this procedure and the
Company abides by the agreed payment terms subject to the terms
and conditions being met by the supplier. Wherever possible UK
subsidiaries follow the same policy and the overseas subsidiary is
encouraged to adopt similar policies, by applying local best practice.
The amount of trade creditors shown in the Group balance sheet at
the end of the financial period represents 42 days (2004: 36 days)
of average daily purchases from suppliers.
The Company has no outstanding trade creditors at the end of the
financial period.
INTERNATIONAL FINANCIAL REPORTING STANDARDS
In common with all UK listed companies the Company is required to
comply and adopt International Financial Reporting Standards for the
first financial statements commencing on or after 1 January 2005.
Therefore the first accounting period affected will be for the year
ending 2 September 2006. The adoption of International Financial
Reporting Standards will have both accounting and business
implications and the Company is preparing itself for this transition.
PENSIONS
The directors have considered the financial impact on the Group of
the deficit which exists in the Carr’s Milling Industries Pension
Scheme 1993 and confirmed its continuing support of the defined
benefit section of the scheme. The directors will continue to monitor
the performance of the scheme investments regularly and take
action should the scheme’s deficit increase.
The interests of the directors, as defined in the Companies Act 1985, in the ordinary shares of the Company, other than 
in respect of options to acquire ordinary shares (which are detailed in the analysis of options included in the directors’
remuneration report on pages 16 to 19) are as follows.
on 3 September 2005 on 28 August 2004
C N C Holmes 47,990 32,000
A R Heygate 37,225 37,225
R C Wood 25,090 9,500
A G M Wannop 2,261 —
W R Inglewood 1,250 —
All the above interests are beneficial.
During the period no director had any interest in any contract which was significant in relation to the business of the Group.
The Group maintains insurance for Carr’s Milling Industries PLC’s directors in respect of their duties as directors.
SIGNIFICANT SHAREHOLDERS
As at 8 November 2005, the Company had received notification of the following shareholders having 3% or more of the issued
share capital:
Percentage of 
Total Holding Issued Capital 
Heygate & Sons Limited 1,332,762 16.23%
T W G Charlton 1,172,500 14.28%
HSBC Global Custody Nominee (UK) Limited 350,000 4.26%
Directors’ Report
continued 11
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
ANNUAL GENERAL MEETING
The Notice of this year’s Annual General Meeting appears on page
55 and will be held at 11.30 am on Monday 9 January 2006 at the
Crown Hotel, Wetheral, Carlisle.
The notice of Annual General Meeting includes the following items
of Special Business:
(i) Resolution 7: Disapplication of pre-emption rights
The resolution renews the existing authority to the Directors
under Section 95 of the Companies Act 1985 to allot shares
by way of rights to shareholders and to allot shares for cash
up to a nominal value of £102,670 (representing 5 percent of
the issued share capital) without first offering such shares pro
rata to existing shareholders, as would otherwise by required
under Section 89 of that Act. This will allow the Directors
some flexibility when considering how best to finance new
business opportunities. In accordance with the requirements
of the London Stock Exchange this resolution will come up 
for renewal at the next Annual General Meeting.
(ii) Resolution 8: Purchase its own shares
This resolution renews the existing authority to the directors to
buy, by way of market purchases, up to 821,358 of its own
shares (representing 10 per cent of the issued share capital).
The proposal should not be taken as an indication that the
Company will purchase its own shares. This authority will only
be exercised by the Directors if they are satisfied that it would
result in an increase in earnings per share and would be in
the best interest of shareholders generally.
(iii) Resolutions 9, 10, 11 and 12: Share incentive schemes
These four resolutions cover: approval of the new approved
Executive Share Option Scheme, approval of the new
Unapproved Executive Share Option Scheme, approval of the
new Sharesave Scheme and the approval of the new Deferred
Bonus Scheme. Details of these resolutions will be set out in
the Chairman’s letter to shareholders dated 8 December 2005.
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The directors are required by UK company law to prepare financial
statements for each financial year that give a true and fair view of
the state of affairs of the Company and the Group as at the end of
the financial year and of the profit or loss of the Group for that
period.
The directors confirm that suitable accounting policies have been
used and applied consistently and that reasonable and prudent
judgements and estimates have been made in the preparation of the
financial statements for the period ended 3 September 2005. The
directors also confirm that applicable accounting standards have
been followed and that the financial statements have been prepared
on the going concern basis.
The directors are responsible for keeping proper accounting records
that disclose with reasonable accuracy at any time the financial
position of the Company and the Group and enable them to ensure
that the financial statements comply with the Companies Act 1985.
They are also responsible for safeguarding the assets of the
Company and of the Group, and hence for taking reasonable steps
for the prevention and detection of fraud and other irregularities.
AUDITORS
The auditors, PricewaterhouseCoopers LLP, have expressed their
willingness to continue in office as auditors to the Company and
Group. A resolution to appoint them as auditors will be proposed at
the next annual general meeting.
By Order of the Board
Ronald C Wood
Secretary
Stanwix
Carlisle CA3 9BA
21 November 2005 12
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Corporate Governance
The Company remains committed to high standards of corporate
governance. All listed companies are obliged to report on how they
apply the Principles of Good Governance set out in the revised
Combined Code and whether they complied with the Code’s
Provisions throughout the accounting period. The Board complied
throughout the period with the provisions set out in the Combined
Code issued in July 2003 apart from those relating to the following:
• one of the two existing non-executive directors is not independent;
however a third non-executive director, who is independent, 
was appointed on 1 September 2005
• bonuses and benefits in kind paid to executive directors are
pensionable
• the directors’ contract periods are two years
• there are no specific provisions for compensation on early
termination
• the Board did not have in place during the period a formal and
rigorous process of evaluation of its own performance and that
of its committees. Rigorous but informal evaluation has
historically been carried out by the Chairman and Chief
Executive, and evaluation of the performance of the individual
directors has also been carried out by the Remuneration
Committee
• the Remuneration Committee comprised both existing 
non-executive directors, albeit one director is not independent;
however a third non-executive director, who is independent, was
appointed on 1 September 2005
• there is no separate Nominations Committee to assess and
recommend new directors. Instead the Board as a whole
considers these areas following initial scrutiny and
recommendations by the Chief Executive and Chairman
• the audit committee comprised the two existing non-executive
directors, both of whom should be independent but one of
whom is not; however a third non-executive director was
appointed on 1 September 2005
• there has been no formal review by the audit committee of the
arrangements by which staff of the Group may, in confidence,
raise concerns about possible improprieties in matters of
financial reporting or other matters
These matters are discussed further in the relevant paragraphs
below and in the Remuneration Report.
BOARD STRUCTURE AND COMMITTEES
The Board at 3 September 2005 comprised two executive directors
(including the Group Chief Executive), who do not hold directorships
outside the Group, and three non-executive directors (including the
Chairman), who bring a range of skills and experience to the Board.
The Combined Code requires the Board to determine whether its
non-executive members are independent. The Board considers that
Lord Inglewood and Alistair Wannop are independent and Robert
Heygate is not independent for the purposes of the code.
Biographical details of all current directors are set out on page 9.
The Audit Committee and Remuneration Committee both have
written terms of reference.
DIRECTORS
The directors supervise the management of the business and the
affairs of the Company and see their prime responsibility as being to
determine the broad strategy of the Company and to ensure its
implementation with a view to enhancing the prosperity of the
Company and its shareholders over time. 
Responsibility for the Group’s day-to-day operations is delegated to
the Chief Executive who, supported by the finance director and
executive management, implement the Board’s strategy and manage
the Group’s business.
The roles of the Chairman and the Group Chief Executive are
separated and clearly defined. The Chairman’s overall responsibility
is to ensure that the Board carries out its responsibilities. The Group
Chief Executive’s responsibilities are to direct and promote the
operation and development of the Group. 
One of the non-executive directors is not considered independent 
as he is deemed to represent a significant shareholder. The Board
considered the appointment of a third non-executive director and on
1 September 2004, Lord Inglewood was appointed a director of the
Company. In April 2005 the Chairman, David Newton, resigned due
to illness. On 1 September 2005, prior to the period end, Alistair
Wannop was appointed a non-executive director and senior
independent non-executive director taking over this role on the
appointment, on the same date, of Lord Inglewood as Chairman.
The Board considered that Lord Inglewood’s other commitments
were not deemed significant. The Board has not set an objective on
the reduction of directors’ service contract periods to one year or
less. The Board does not wish to reduce the service contract period
below the current level of two years as it feels that this is the
minimum appropriate to retain the services of key executives with
significant knowledge of the business in which the Group trades.
Each director is provided with sufficient information to enable him to
discharge his duties and responsibilities as a director.
All directors have access to the advice and services of the Company
Secretary. The Board has also established a formal procedure
whereby directors, wishing to do so in the furtherance of their duties,
may take independent professional advice, if necessary, at the
Company’s expense.
The Articles of Association require one-third of the Board to retire 
by rotation at every Annual General Meeting. The revised Combined
Code requires that directors are required to present themselves for
re-election at intervals of no more than three years. It is the Board’s
intention to amend the Articles of Association at an appropriate time
to ensure compliance with this provision, but in the interim, the
Board intends to operate re-elections of directors in a manner to
ensure compliance with the revised Combined Code.
The Board meets regularly and has reserved certain items for its
review and approval, including the annual and interim results, the
annual profit and cash flow budget, significant acquisitions and
divestments, and senior management appointments. 13
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Audit Remuneration
Board Committee Committee
No. of meetings 9 2 1
W R Inglewood 7 1 1
C N C Holmes 9 — —
R C Wood 9 — —
A R Heygate 9 2 1
A G M Wannop
1
———
D A Newton
2
———
1
appointed 1 September 2005
2
resigned on 18 April 2005
ATTENDANCE AT MEETINGS
Details of the number of meetings of, and member’s attendance at, the Board, Audit and Remuneration Committees during the period are
set out in the table below.
DIRECTORS’ REMUNERATION
The Board has established a Remuneration Committee, the role of
which is to review the performance of the executive directors and to
set the scale and structure of their remuneration, including bonus
arrangements. The Committee comprised Lord Inglewood as
Chairman and A R Heygate. From 1 September 2005 Alistair
Wannop was appointed to this Committee. The report on directors’
remuneration is set out on pages 16 to 19.
ACCOUNTABILITY AND AUDIT
In submitting this Annual Report and the Financial Statements to the
shareholders the Board has sought to ensure that a balanced and
understandable assessment of the Company’s position and
prospects has been presented to shareholders.
The Board has established an Audit Committee comprising the 
non-executive directors, with Robert Heygate as Chairman. From 
1 September 2005 Alistair Wannop was appointed to this
Committee. The Committee is responsible inter alia for safeguarding
the Company’s assets. The Committee meets at least twice a year
and reviews the annual and interim financial statements and the
other documents to be sent to shareholders before they are
submitted for Board approval. The Committee also has meetings
with the auditors at least twice a year. The Committee reviews the
non-audit services provided by the audit firm comprising taxation
services and considers that these are not a threat to objectivity and
independence in the conduct of the audit. The auditors have direct
access to the Chairman of the Audit Committee and an “open door”
policy has also been adopted in relation to any concerns staff may
have concerning the propriety of Group operations and activities. 
No issues or incidents have come to light as a result of this policy.
The Group does not have an internal auditor as the Board consider
that the Group has not yet reached a size where a separate internal
audit function would be an appropriate or cost effective method of
ensuring compliance with Group policies, and therefore does not
currently propose to introduce a Group internal audit function. This
area will be kept under review as part of the Board’s assessment of
the Group’s systems of internal control.
INTERNAL CONTROL
The directors are responsible for the Group’s system of internal
control and for reviewing its effectiveness. The system is designed
to manage, rather than eliminate, the risk of failure to achieve
business objectives and can only provide reasonable, and not
absolute, assurance against material misstatement or loss, and in
relation to the maintenance of proper accounting records and the
reliability of financial information.
The revised Combined Code requires directors to introduce
procedures and review the effectiveness of the Group’s system 
of internal control, including financial, operational and compliance
controls and risk management. These procedures establish the
process by which the Board will, on an ongoing basis, identify,
evaluate and manage the significant risks faced by the Group and
carry out its annual review of the effectiveness of the internal
controls. These procedures have been in place for the period under
review and up to the date of approval of the annual report and
financial statements. The Board reviewed the internal controls this
period and it is intended that these procedures will be kept under
review each year and adjusted as appropriate.
The Board’s risk management strategy is to follow a prudent risk
policy. Business risks are evaluated at Group level as part of the
annual budgeting process. The executive directors and the senior
management of subsidiary companies have responsibility for
identifying the risks facing each business and then establishing
procedures or putting policies in place to mitigate or monitor them.
Treasury risks are evaluated by the Group Finance Director who is
responsible to the Board for evaluating all significant borrowings,
foreign currency and interest rate management facilities.
The Group has comprehensive budgets and detailed monthly
reporting, together with daily cash reporting. The annual budget is
reviewed with the senior management and submitted to the Board
for approval. Revised forecasts for the year are prepared if results
are deviating significantly from the budget.  14
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Corporate Governance
continued
RELATIONS WITH SHAREHOLDERS
The Board recognises the importance of good communications with
all shareholders. The Company maintains dialogue with institutional
shareholders and analysts, and general presentations are made
when financial results are announced. Shareholders have access to
the Company’s website at www.carrs-milling.com.
The Annual General Meeting is the principal forum for all the
directors to engage in dialogue with private investors. All
shareholders are given the opportunity to raise questions at the
meeting. The Company aims to send notices of Annual General
Meetings to shareholders at least 20 working days before the
meeting, as required by the revised Combined Code, and it is the
Company’s practice to indicate the proxy voting results on all
resolutions at the meetings.
GOING CONCERN
Based on normal business planning and control procedures the
directors are confident that the Company has adequate resources to
continue in operational existence for the foreseeable future. For this
reason, the directors adopt the going concern basis in the
preparation of the Group’s financial statements.
By Order of the Board
Ronald C Wood
Secretary
Stanwix
Carlisle CA3 9BA
21 November 2005 15
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
We have audited the financial statements which comprise the
consolidated profit and loss account, the statement of group total
recognised gains and losses, the note of group historical cost profits
and losses, the consolidated balance sheet, the company balance
sheet, the consolidated cash flow statement, statement of accounting
policies and the related notes. We have also audited the disclosures
required by Part 3 of Schedule 7A to the Companies Act 1985
contained in the directors’ remuneration report (“the auditable part”).
RESPECTIVE RESPONSIBILITIES OF DIRECTORS 
AND AUDITORS
The directors’ responsibilities for preparing the annual report and the
financial statements in accordance with applicable United Kingdom
law and accounting standards are set out in the statement of
directors’ responsibilities. The directors are also responsible for
preparing the directors’ remuneration report.
Our responsibility is to audit the financial statements and the
auditable part of the directors’ remuneration report in accordance
with relevant legal and regulatory requirements and United Kingdom
Auditing Standards issued by the Auditing Practices Board. This
report, including the opinion, has been prepared for and only for the
company’s members as a body in accordance with Section 235 of
the Companies Act 1985 and for no other purpose. We do not, in
giving this opinion, accept or assume responsibility for any other
purpose or to any other person to whom this report is shown or into
whose hands it may come save where expressly agreed by our prior
consent in writing. 
We report to you our opinion as to whether the financial statements
give a true and fair view and whether the financial statements and
the auditable part of the directors’ remuneration report have been
properly prepared in accordance with the Companies Act 1985. 
We also report to you if, in our opinion, the directors’ report is not
consistent with the financial statements, if the company has not kept
proper accounting records, if we have not received all the
information and explanations we require for our audit, or if
information specified by law regarding directors’ remuneration and
transactions is not disclosed.
We read the other information contained in the annual report and
consider the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the financial
statements. The other information comprises only the financial
highlights, the chairman’s statement, the chief executive’s review, 
the directors’ report, the corporate governance statement and the
unaudited part of the directors’ remuneration report. 
We review whether the corporate governance statement reflects the
company’s compliance with the nine provisions of the 2003 FRC
Combined Code specified for our review by the Listing Rules of the
Financial Services Authority, and we report if it does not. We are not
required to consider whether the board’s statements on internal
control cover all risks and controls, or to form an opinion on the
effectiveness of the company’s or group’s corporate governance
procedures or its risk and control procedures. 
BASIS OF AUDIT OPINION
We conducted our audit in accordance with auditing standards
issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts
and disclosures in the financial statements and the auditable part of
the directors’ remuneration report. It also includes an assessment of
the significant estimates and judgements made by the directors in
the preparation of the financial statements, and of whether the
accounting policies are appropriate to the company’s circumstances,
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary in
order to provide us with sufficient evidence to give reasonable
assurance that the financial statements and the auditable part of the
directors’ remuneration report are free from material misstatement,
whether caused by fraud or other irregularity or error. In forming our
opinion we also evaluated the overall adequacy of the presentation
of information in the financial statements.
OPINION
In our opinion:
• the financial statements give a true and fair view of the state of
affairs of the company and the group at 3 September 2005 and
of the profit and cash flows of the group for the 53 week period
then ended;
• the financial statements have been properly prepared in
accordance with the Companies Act 1985; and
• those parts of the directors’ remuneration report required by 
Part 3 of Schedule 7A to the Companies Act 1985 have been
properly prepared in accordance with the Companies Act 1985.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
Newcastle upon Tyne
2 December 2005
Notes
(a) The maintenance and integrity of the Carr’s Milling Industries
PLC website is the responsibility of the directors: the work
carried out by the auditors does not involve consideration of
these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the
financial statements since they were initially presented on the
website.
(b) Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
Independent Auditors’ Report 
to the Members of Carr’s Milling Industries PLC 16
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Directors’ Remuneration Report
REMUNERATION COMMITTEE
All matters relating to executive remuneration are determined by the
Remuneration Committee, a sub-committee of the Board of Directors.
The Remuneration Committee comprises the Chairman and A R
Heygate, the other non-executive director of the Company who
served on the Board of Directors during the period to 3 September
2005. A G M Wannop was appointed to the Board of Directors on 
1 September 2005 and will serve on the Remuneration Committee.
As appropriate, the Committee may invite the Chief Executive
Officer to participate in some of its discussions. The Committee is
responsible for determining the terms and conditions of employment
of executive directors. It is also responsible for considering
management recommendations for remuneration and employment
terms of the Company’s senior staff, including incentive
arrangements for bonus payments and grant of share options.
The Remuneration Committee’s decisions are made on the basis of
rewarding individuals for the nature of jobs they undertake and their
performance therein. Proper regard is given to the need to attract
and retain high quality, well-motivated staff at all levels and to the
remuneration being paid by similar companies. 
DETAILS OF REMUNERATION
The remuneration of directors is set out in detail on page 18. The
Company’s Remuneration Committee decides the remuneration
policy that applies to executive directors and the Group’s other
senior management.
Each of the executive directors has a two-year rolling contract. The
most recent executed contracts for the executive directors were
dated 10 June 2002. In the event of termination the executive
directors would be entitled to loss of salary, benefits and pensionable
service for the notice periods. The contracts of non-executive
directors of the Company are fixed for two years and the most recent
executed contracts for W R Inglewood, A R Heygate and A G M
Wannop were 1 September 2005.
The Company’s policy is that a proportion of the remuneration of the
executive directors should be performance related. As described
below, executive directors may earn annual incentive payments
together with the benefits of participation in Share Option Schemes.
CONSTITUENT ELEMENTS OF REMUNERATION PACKAGE
In applying the above principles to the determination of executive
director remuneration, the Remuneration Committee gives
consideration to several components which together comprise the
total remuneration package. These consist of the following:
• Basic Salary is determined by the Committee at the beginning
of each year. In deciding appropriate levels, the Committee
considers the position in the Group, personal and Company
performance and relies on information on a comparable group 
of companies. Basic salaries were last reviewed in August
2005, with increases taking effect from 1 September 2005. The
next review will take place in August 2006. Executive directors’
contracts of service, which include details of remuneration, will
be available for inspection at the Annual General Meeting.
• Annual Bonus is paid up to a maximum of 50% of Basic Salary
on achievement of profit targets and is pensionable.
• Benefits in Kind comprise private healthcare which is
pensionable and critical illness/death in service cover. 
• Pension Contribution. The Company’s defined benefit pension
scheme aims at producing a pension of two-thirds final
pensionable salary at normal retirement age of 60. Due to the
Inland Revenue cap this provision cannot be met in full from the
scheme and supplementary arrangements are in place and are
commented on later. The two executive directors are members
of the pension scheme and can opt, after age 50, to retire early
without actuarial reduction to their pension. Non-executive
directors do not participate in the scheme. Pension entitlement
is calculated on the salary element of remuneration plus the
average of the last three years’ bonuses and taxable benefits in
kind. The executive directors’ pension information is given in the
section subject to audit. 17
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
The pension entitlement is that which would be paid annually on
retirement based on service to the end of the year. Members of the
scheme have the option to pay additional voluntary contributions,
neither the contributions nor the resulting benefits are included in the
table on page 18.
The normal retirement age is 60 with a two-thirds surviving spouse’s
pension. On death in service a lump sum equal to four times
pensionable salary is payable together with a surviving spouse’s
pension of two-thirds of the director’s prospective pension. For
death after retirement a spouse’s pension of two-thirds of the
member’s pension is payable plus the balance of a five year
guarantee if applicable.
Pensions in payment are guaranteed to be increased annually by
5% or the increase in the Index of Retail Prices (RPI) if less.
For the element of gross salary in excess of the Inland Revenue
limits the Group has established for C N C Holmes a funded
unapproved retirement benefit scheme (FURBS). This arrangement
attempts to provide for a pension of two-thirds of his final
pensionable salary at age 60, inclusive of benefits from his previous
employment, and a surviving spouse’s pension of two-thirds of his
pension. Pensions in payment are to be increased annually by the
increase in RPI. As a result of the previously announced changes to
the funding of pensions, to be effective from April 2006, the
Company ceased contributing to the FURBS from January 2004. No
contributions to the FURBS were made in the period (2004: £49,000).
Any transfer value calculations do not make allowance for discretionary
benefits including pension increases and early retirement.
• Share Options. The Group believes there is benefit to be 
gained from aligning executive directors’ interests (and other
employee interests) with those of shareholders by means of
share options. The award of options is wholly at the discretion 
of the Remuneration Committee. There were no options granted
in the period.
PERFORMANCE GRAPH
The following graph illustrates the
Company’s total shareholder return
performance since 31 August 2000
relative to the FTSE All-share index.
The Company considers that the
FTSE All-share index to be the most
appropriate comparator group as it is
a broad index and reflects the
Company’s broad range of activities.
2001 2002 2003 2004 2005
Carr’s Milling Industries
FTSE All-Share Price Index
Source: Datastream
600
500
400
300
200
100
0 18
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Directors’ Remuneration Report
continued 
DIRECTORS’ REMUNERATION
2005 2004
Gain on Gain on
Fees & Total Total 2005 2004 Exercise Exercise
Basic Annual Emoluments Emoluments Pension Pension of Share of Share
Salary Bonus Benefits 2005 2004 Contributions Contributions Options Options
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Executive directors
C N C Holmes 167 83 1 251 211 75 118 52 —
R C Wood 143 71 1 215 178 49 44 52 —
Non-executive directors
D A Newton 3 — — 3 33 — — — —
W R Inglewood 17 — — 17 — — — — —
A R Heygate 17 — — 17 17 — — — —
A G M Wannop — — — — — — — — —
347 154 2 503 439 124 160 104 —
NON-EXECUTIVE REMUNERATION
The remuneration of the non-executive directors is agreed by the Group Board taking into account a number of factors pertinent to their
position and role as non-executive directors.
Information subject to audit
EXECUTIVE DIRECTORS’ PENSION INFORMATION
C N C Holmes R C Wood
Age at 3 September 2005 53 57
£’000 £’000
Directors’ contributions during the period — 13
Increase in accrued pension entitlement for the period
excluding inflation 115
including inflation 218
Total accrued pension entitlement 
At 3 September 2005 65 111
At 28 August 2004 63 93
Transfer value of pension
At 3 September 2005 1,033 2,013
At 28 August 2004 858 1,504
Increase in transfer value less contributions made by directors 175 496
Transfer value of the increase in accrued benefits 
less contributions made by directors 35 310 19
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Options to acquire shares in the Company, granted to directors under the Scheme but not exercised, as at 3 September 2005 are:
At 28 Exercised At 3 Earliest date
August during September Exercise Date of from which Expiry
2004 period 2005 price Grant exercisable date
C N C Holmes 19,690 19690 — 212.0p 25 Nov 1994 Nov 1997 Nov 2004
40,000 — 40,000 161.0p 1 May 2002 May 2005 April 2009
18,500 — 18,500 161.0p 1 May 2002 May 2005 April 2009
78,190 — 58,500
R C Wood 19,690 19690 — 212.0p 25 Nov 1994 Nov 1997 Nov 2004
50,000 — 50,000 161.0p 1 May 2002 May 2005 April 2009
18,500 — 18,500 161.0p 1 May 2002 May 2005 April 2009
88,190 — 68,500
No options were granted or lapsed during the period.
The middle market closing price of the shares at 3 September 2005 was 558.5p (28 August 2004: 332.5p) and the range throughout the
period was 332.5p to 607.5p.
The market price when C N C Holmes and R C Wood exercised their share options was 475.0p.
On behalf of the Board
W R Inglewood
Chairman of the Remuneration Committee
21 November 2005
SHARE OPTIONS GRANTED TO DIRECTORS
The Company operates an Inland Revenue approved and an
unapproved share option scheme to reward employees’ performance
and to incentivise at senior levels. Exercise is subject to performance
conditions. For all options granted the exercise criterion has been
that earnings should achieve growth which exceeds the percentage
growth in the Retail Price Index by 2% or more. The rules of the
schemes conform to institutional investor guidelines.
The performance criterion, which applies to the executive directors
to whom options have been granted under the Schemes, was
chosen as it requires significant improvement in financial
performance. No options have been granted at a discount to the
market price at the date of their grant. 20
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Consolidated Profit and Loss Account
for the 53 week period ended 3 September 2005
2005 2004
Notes £’000 £’000
2 Turnover
Continuing operations 158,876 155,749
Acquisitions - Meneba UK Holdings Limited 26,299 —
- Wallace Oils Holdings Limited 6,949 —
Total turnover 192,124 155,749
3 Cost of sales (161,532) (132,464)
3 Gross profit 30,592 23,285
3 Net operating expenses (23,776) (18,249)
3,4 Group operating profit
Continuing operations 5,884 5,036
Acquisitions - Meneba UK Holdings Limited 1,043 —
- Wallace Oils Holdings Limited (111) —
Total Group operating profit 6,816 5,036
Share of operating (loss)/profit in associate (720) 739
Total operating profit 6,096 5,775
5 Profit on disposal of fixed assets 4,110 —
7 Interest receivable and other income 93 116
8 Interest payable and similar charges (1,283) (764)
2 Profit on ordinary activities before taxation 9,016 5,127
9 Taxation (1,625) (1,633)
Profit on ordinary activities after taxation 7,391 3,494
Minority interests - equity (276) (275)
Profit for the financial period 7,115 3,219
10 Dividends (1,313) (1,090)
23,24 Retained profit for the financial period 5,802 2,129
Earnings per ordinary share
11 Basic 87.5p 39.9p
11 Diluted 85.9p 39.8p
11 Adjusted 47.7p 39.9p
All of the above are derived from continuing operations. 21
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
2005 2004
Notes £’000 £’000
Profit for the financial period 7,115 3,219
24 Currency translation differences on foreign currency net investments (80) (330)
Total recognised gains and losses relating to the period 7,035 2,889
2005 2004
£’000 £’000
Reported profit on ordinary activities before taxation 9,016 5,127
Realisation of property revaluation gains of previous years — 48
Difference between historical cost depreciation charge
and the actual depreciation charge of the period calculated
on the revalued amount 31 31
Historical cost profit on ordinary activities before taxation 9,047 5,206
Historical cost profit for the period retained after taxation,
minority interests and dividends 5,833 2,208
Statement of Group Total Recognised Gains and Losses 
for the 53 week period ended 3 September 2005
Note of Group Historical Cost Profits and Losses 
for the 53 week period ended 3 September 2005 22
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Consolidated Balance Sheet
at 3 September 2005
2005 2004
Notes £’000 £’000 £’000 £’000
Fixed assets
12 Intangible assets
Goodwill and others 534 184
Negative goodwill (539) —
(5) 184
13 Tangible assets 30,232 20,474
Investments
14 Share of net assets in associate 1,461 1,992
14 Share of net assets in joint venture 172 —
14 Loan to associate 1,225 1,225
14 Other investments 255 253
3,113 3,470
33,340 24,128
Current assets
15 Stocks 12,947 10,387
16 Debtors 34,977 19,943
Cash at bank and in hand 3,149 1,091
51,073 31,421
17 Creditors
Amounts falling due within one year (43,230) (25,265)
Net current assets 7,843 6,156
Total assets less current liabilities 41,183 30,284
18 Creditors
Amounts falling due after more than one year (8,501) (3,779)
20 Provisions for liabilities and charges (1,226) (951)
21 Deferred income (185) (244)
(9,912) (4,974)
Net assets 31,271 25,310
Capital and reserves
22 Called-up share capital 2,053 2,018
23 Share premium account 4,977 4,752
23 Revaluation reserve 1,632 1,663
23 Profit and loss account 20,952 15,605
24 Equity shareholders’ funds 29,614 24,038
23 Minority interests - equity 1,657 1,272
31,271 25,310 23
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
2005 2004
Notes £’000 £’000 £’000 £’000
Fixed assets
14 Investments 14,916 9,042
Current assets
16 Debtors 20,646 11,780
17 Creditors
Amounts falling due within one year (9,563) (4,199)
Net current assets 11,083 7,581
Total assets less current liabilities 25,999 16,623
18 Creditors
Amounts falling due after more than one year (6,503) (1,400)
Net assets 19,496 15,223
Capital and reserves
22 Called-up share capital 2,053 2,018
23 Share premium account 4,977 4,752
23 Profit and loss account 12,466 8,453
Equity shareholders’ funds 19,496 15,223
The financial statements set out on pages 20 to 53 were approved by the Board on 21 November 2005 and signed on its
behalf by:
Christopher N C Holmes
Ronald C Wood
Company Balance Sheet
at 3 September 2005 24
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Consolidated Cash Flow Statement
for the 53 week period ended 3 September 2005
2005 2004
Notes £’000 £’000
26 Net cash inflow from operating activities 6,644 6,256
Returns on investments and servicing of finance
Interest received 95 120
Interest paid (1,061) (563)
Interest paid on finance leases (134) (88)
Net cash outflow from returns on investments and servicing of finance (1,100) (531)
Taxation paid (1,855) (1,330)
Capital expenditure and financial investment
Purchase of tangible fixed assets (3,396) (2,997)
Purchase of intangible fixed assets — (160)
Sale of tangible fixed assets 3,114 295
Purchase of investments (2) (100)
Net cash outflow from capital expenditure and financial investment (284) (2,962)
Acquisitions and disposals
25 Purchase of subsidiary undertakings (6,957) —
25 Net cash acquired in subsidiaries 2,071 —
25 Loan repaid (5,370) —
14 Investment in joint venture (172) —
Net cash outflow from acquisitions and disposals (10,428) —
Equity dividends paid (1,137) (969)
Cash (outflow)/inflow before financing (8,160) 464
29 Financing 11,749 (1,311)
30 Increase/(decrease) in net cash 3,589 (847) 25
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Statement of Accounting Policies
for the 53 week period ended 3 September 2005
The financial statements have been prepared in accordance with 
the Companies Act 1985 and applicable Accounting Standards in
the United Kingdom. A summary of the more important Group
accounting policies, which have been applied consistently
throughout the period and the preceding period, is set out below.
ACCOUNTING CONVENTION
The financial statements have been prepared under the historical
cost convention modified for the revaluation of certain land and
buildings. 
BASIS OF CONSOLIDATION
The consolidated profit and loss account and balance sheet include
the accounts of the Company and all its subsidiary companies
prepared to the Saturday nearest to 31 August. The results of
subsidiary companies acquired and sold are included from and up 
to the respective dates of acquisition or sale. 
Subsidiary undertakings are accounted for using acquisition
accounting.
On acquisition of a subsidiary, all of the subsidiary’s assets and
liabilities that exist at the date of acquisition are recorded at their fair
values reflecting their condition at that date. All changes to those
assets and liabilities, and the resulting gains and losses, that arise
after the Group has gained control of the subsidiary are included in
the post-acquisition profit and loss account.
ASSOCIATED UNDERTAKINGS
Associated undertakings are those in which the Group has a
participating interest and over which it exerts significant influence.
The Group’s share of the results of associated undertakings is
included in the consolidated profit and loss account and its interest
in their net assets is included in investments in the consolidated
balance sheet under the equity method of accounting.
JOINT VENTURE
A joint venture arrangement has been entered into during the period.  
A joint venture is an entity in which the Group has a long-term interest
and shares control with one or more other venturers. The Group’s
interest in the joint venture’s net assets is included in investments in
the consolidated balance sheet under the equity method of accounting.
As the joint venture has not yet commenced trading there is no
impact on the consolidated profit and loss account for the period.
TURNOVER
Turnover represents the value of goods despatched or services
rendered to customers, excluding value added tax and inter-group
transactions. In respect of long-term contracts turnover is calculated
on the basis of the stage of completion and the total sales value of
each contract.
REVALUATION OF PROPERTIES
Prior to 1999, some freehold and leasehold properties were
revalued. On adoption of FRS 15 in 1999, the Group followed the
transitional rules to retain the book value of land and buildings.
Transfers are made to retained profits each year in order to amortise
surpluses over the remaining useful lives of the properties. On
disposal the profit or loss is calculated by reference to the net book
value and any unamortised revaluation surplus is transferred from
revaluation reserves to retained profits.
STOCKS
Stocks are stated at the lower of cost and net realisable value. 
Cost includes production overheads where appropriate.
LONG-TERM CONTRACTS
Turnover on long-term contracts is recognised according to the
stage reached in the contract by reference to the value of work
done. A reliable estimate of the profit attributable to work completed
is recognised once the outcome of a contract can be assessed with
reasonable certainty. The amount by which the turnover exceeds
payments on account is shown under debtors as amounts
recoverable on contracts. The costs incurred on long-term contracts
not yet taken to the profit and loss account less related foreseeable
losses and payments on account are shown as work in progress.
INVESTMENTS
Investments are stated at cost less any amounts written off in
respect of impairment.
FINANCIAL INSTRUMENTS AND DERIVATIVES
The Group’s accounting policy for derivatives is to defer the
recognition in the Group profit and loss account of gains and losses
on hedges of revenues, operating payments and capital expenditure
until such time as the underlying transactions are recognised.
Forward foreign exchange contracts entered into as hedges of
future purchases and sales denominated in foreign currencies are
recorded at cost. Gains and losses are deferred and matched to the
underlying transaction when it matures.
Interest rate collar agreements taken out are recorded at cost in the
balance sheet and amortised over the period of the agreements.
Amounts payable or receivable in respect of interest rate collar
agreements are recognised in the net interest payable charge on an
accruals basis.
Interest rate swap agreements are used to manage interest rate
exposures. Amounts payable or receivable in respect of these
derivatives are recognised as adjustments to the interest expense
over the period of the agreements.
Finance costs associated with debt instruments are charged to the
profit and loss account at a constant rate of return. 26
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Statement of Accounting Policies
continued 
DEFERRED TAXATION
Deferred tax is provided in full on timing differences that result in an
obligation at the balance sheet date to pay more tax, or a right to
pay less tax, at a future date, at rates expected to apply when they
crystallise based on current tax rates and law. Deferred tax is not
provided on timing differences arising from revaluation of fixed
assets where there is no commitment to sell the asset. Deferred tax
assets are recognised to the extent that it is regarded as more likely
than not that they will be recovered. Deferred tax assets and
liabilities are not discounted.
GOODWILL
Goodwill in respect of acquisitions since 31 August 1998 has been
capitalised on the balance sheet and is being amortised over periods
not exceeding 20 years in line with the directors’ view of their useful
economic lives.
Goodwill in respect of acquisitions prior to 31 August 1998 remains
eliminated against reserves. This goodwill had been eliminated as a
matter of accounting policy and will be charged or credited in the
profit and loss account on any subsequent disposal.
Negative goodwill arose in the period on the acquisition of Carrs
Animal Feed Supplements Limited (formerly Meneba UK Holdings
Limited). This is being released to the profit and loss account on a
basis consistent with the useful economic life of the non-monetary
assets acquired.
OTHER INTANGIBLE ASSETS
Other intangible assets are capitalised on the balance sheet and
amortised over periods not exceeding 20 years in line with the
directors’ view of their useful economic lives.
DEPRECIATION
Depreciation is calculated to write off the cost or valuation of
tangible fixed assets, other than freehold land and assets in the
course of construction which are not depreciated, in equal annual
instalments over their estimated useful lives at the following rates:
Freehold and 
long leasehold properties 2%
Short leasehold property 10%
Plant and equipment 5% – 25%
GRANTS
Grants received on capital expenditure are recorded as deferred
income and taken to the profit and loss account in equal annual
instalments over the expected useful lives of the assets concerned.
Revenue grants and contributions are credited to the profit and loss
account in the year to which they apply.
LEASED ASSETS
Where assets are financed by leasing agreements that give rights
approximating to ownership (“finance leases”), the assets are
treated as if they had been purchased outright. The amounts
capitalised are the present values of the minimum lease payments.
The corresponding commitments are shown as obligations under
finance leases.
Depreciation on the relevant assets is charged to the profit and loss
account in equal annual instalments over the shorter of the lease
terms and the estimated useful lives of the assets.
Lease payments are treated as consisting of capital and interest
elements and the interest is charged using the actuarial method.
All other leases are “operating leases” and the annual rentals are
charged to the profit and loss account on a straight line basis.
PENSION COSTS
The cost of providing retirement pensions and related benefits is
charged to the profit and loss account over the periods benefiting
from the employees’ services. The difference between the charge to
the profit and loss account and the contributions paid to the scheme
is included as an asset or liability in the balance sheet.
FOREIGN CURRENCIES
Assets and liabilities of subsidiaries recorded in foreign currencies
are translated into sterling at rates of exchange ruling at the end of
the financial year and the results of foreign subsidiaries are
translated at the average rate of exchange for the year. Differences
on exchange arising from the retranslation of the opening net
investment in subsidiary companies, and from the translation of the
results of those companies at average rate, are taken to reserves
and are reported in the statement of total recognised gains and
losses. All other foreign exchange differences are taken to the profit
and loss account in the year in which they arise. 27
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
1 The Company has taken advantage of the exemption, under section 230 of the Companies Act 1985, from presenting its own profit and
loss account. The profit after tax for the period dealt with in the accounts of the Company was £5,326,000 (2004: £1,533,000).
2 SEGMENTAL ANALYSIS
The analysis by class of business of the turnover, profit before taxation and net assets is set out below:
Turnover Profit before tax Net assets
2005 2004 2005 2004 2005 2004
£’000 £’000 £’000 £’000 £’000 £’000
Business analysis
Agriculture - Group 132,662 124,443 5,002 4,991 6,766 5,619
- Associate — — (720) 739 1,461 1,992
132,662 124,443 4,282 5,730 8,227 7,611
Food 48,004 21,990 1,866 268 9,876 4,879
Engineering - Normal 11,458 9,316 282 (14) 5,422 4,225
- Exceptional — — 4,110 — — —
Central — — (334) (209) 7,746 8,595
Net interest payable — — (1,190) (648) — — 
Total 192,124 155,749 9,016 5,127 31,271 25,310
- Group 192,124 155,749 9,834 4,461 29,810 23,318
- Associate — — (818) 666 1,461 1,992
Geographical analysis
United Kingdom - Group 184,721 147,369 10,812 4,548 19,081 11,961
- Associate — — (720) 739 1,461 1,992
184,721 147,369 10,092 5,287 20,542 13,953
Continental Europe 476 1,228 (83) (46) (119) (59)
North America 6,927 7,152 531 743 3,102 2,821
Central — — (334) (209) 7,746 8,595
192,124 155,749 10,206 5,775 31,271 25,310
Net interest payable — — (1,190) (648) — —
Total 192,124 155,749 9,016 5,127 31,271 25,310
- Group 192,124 155,749 9,834 4,461 29,810 23,318
- Associate — — (818) 666 1,461 1,992
The geographical analysis of turnover is presented by turnover origin. There is no material difference between turnover by origin and
turnover by destination.
Turnover between segments is not material.
The activities of B&A Travel are not material and are included in the engineering segment.
The share of the loss in the associate is after the deduction of exceptional reorganisation costs of £885,000.
Included within the operating profit of the food division are exceptional reorganisation costs of £350,000.
Included in the Group’s food activities are the following amounts relating to acquisitions: turnover £26,299,000 (2004: £nil), profit
before interest and tax £1,043,000 (2004: £nil) and net assets £5,367,000 (2004: £nil).
Included in the Group’s agriculture activities are the following amounts relating to acquisitions: turnover £6,949,000 (2004: £nil), 
loss before interest and tax £111,000 (2004: £nil) and net assets £1,656,000 (2004: £nil).
Notes to the Financial Statements 28
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notes to the Financial Statements
continued 
3 TURNOVER, COST OF SALES AND OTHER OPERATING INCOME AND NET OPERATING EXPENSES
2005 2004
£’000 £’000 £’000 £’000
Turnover 192,124 155,749
Cost of sales (161,532) (132,464)
Gross profit 30,592 23,285
Net operating expenses
Distribution costs (13,196) (9,446)
Administrative expenses - normal (10,230) (8,803)
- exceptional (see note 5) (350) —
(10,580) (8,803)
(23,776) (18,249)
Group operating profit 6,816 5,036
Share of profit in associate - normal 165 739
- exceptional (see note 5) (885) —
(720) 739
Total operating profit: Group and share of associate 6,096 5,775
The total figures for continuing operations in 2005 include the following amounts relating to acquisitions: turnover £33,248,000, cost of
sales £27,298,000, gross profit £5,950,000 and net operating expenses £5,018,000 (being distribution costs £3,427,000 and
administrative expenses £1,591,000).
4 GROUP OPERATING PROFIT 2005 2004
£’000 £’000
Group operating profit is stated after crediting:
Amortisation of grants 50 59
Profit on disposal of tangible fixed assets 125 108
And after charging:
Depreciation of tangible fixed assets held under finance leases 683 491
Depreciation of owned tangible fixed assets 2,578 1,876
Hire of plant and equipment 233 241
Hire of other assets 12 16
Amortisation of intangible fixed assets (9) 38
Auditors’ remuneration for audit (Company £10,000; 2004: £10,000) 149 110
Auditors’ remuneration for other services 71 55 29
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
5 EXCEPTIONAL ITEMS 
2005 2004
Tax Tax
Amount credit Amount credit
£’000 £’000 £’000 £’000
Cost of reorganising Food Division (350) 105 ——
Cost of reorganising associate (885) 258 ——
Total exceptional operating expenses (1,235) 363 ——
Profit on disposal of fixed assets 4,110 — ——
Total exceptional items 2,875 363 ——
Profit before tax 9,016 5,127
Exceptional items 2,875 —
Profit before tax and exceptional items 6,141 5,127
Operating profit 6,096 5,775
Exceptional operating expenses (1,235) —
Operating profit before exceptional operating expenses 7,331 5,775
During the period Carrs Engineering Limited (a wholly owned subsidiary of Carr’s Milling Industries Plc) sold its property known as the
Bendalls site realising a profit of £4,110,000. The property was sold for a cash consideration of £2,846,000 net of expenses. In addition the
purchaser built a new 5,000 square metres factory on behalf of Carrs Engineering Limited, which has been capitalised within fixed assets. 
The total cost included within land and buildings at the period end in respect of this new factory is £2,958,000.
6 STAFF COSTS 2005 2004
£’000 £’000
Wages and salaries 15,434 12,025
Social security costs 1,653 1,180
Other pension costs 2,276 1,897
19,363 15,102
2005 2004
The average monthly number of employees during the period was made up as follows: Number Number
Sales, office and management 365 331
Manufacture and distribution 294 227
659 558
Details of directors’ emoluments are given in the Directors’ Remuneration Report.
7 INTEREST RECEIVABLE AND OTHER INCOME 2005 2004
£’000 £’000
Bank interest 75 105
Other 18 11
93 116 30
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notes to the Financial Statements
continued 
8 INTEREST PAYABLE AND SIMILAR CHARGES 2005 2004
£’000 £’000
On bank overdrafts 515 413
On bank loans and other loans 437 134
On finance leases and hire purchase contracts 111 88
Other 122 56
Group interest payable 1,185 691
Share of associate interest payable 98 73
Total interest payable 1,283 764
9 TAXATION 2005 2004
£’000 £’000
(a) Analysis of charge in the period
Current tax:
UK corporation tax 
current period 1,797 1,428
prior period 24 (47)
Foreign tax 
current period 270 287
prior period — (2)
Group current tax 2,091 1,666
Associate 
current period (119) 143
Total current tax 1,972 1,809
Deferred tax:
Origination and reversal of timing differences 
Group (179) (168)
Associate (168) (8)
Total deferred tax (347) (176)
Tax on profit on ordinary activities 1,625 1,633
(b) Factors affecting tax charge for the period
The tax assessed for the period is lower (2004: higher) than the rate of corporation tax in the UK (30%). The differences are explained
below:
2005 2004
£’000 £’000
Profit on ordinary activities before tax 9,016 5,127
Profit on ordinary activities before tax @ 30% 2,705 1,538
Effects of
Non taxable profit on disposal of fixed assets (1,191) —
Expenses not deductible for tax purposes 107 76
Capital allowances in excess of depreciation (175) (1)
Movements on short-term timing differences 37 118
Overseas profits taxed at higher rates 30 12
Tax at marginal rates — (1)
Tax losses not Group relieved 435 116
Adjustments relating to prior years’ tax charge 24 (49)
Current period corporation tax charge 1,972 1,809
(c) Factors that may affect future tax charges
There are no factors that are expected to significantly affect the taxation charge in future years. 31
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
10 DIVIDENDS 2005 2004
Equity £’000 £’000
Ordinary – Interim paid of 5.0p per 25.0p share (2004: 4.5p) 410 363
– Final proposed of 11.0p per 25.0p share (2004: 9.0p) 903 727
1,313 1,090
11 EARNINGS PER ORDINARY SHARE
Earnings per share are calculated by reference to a weighted average of 8,127,328 shares (2004: 8,073,599) in issue during the period.
Exceptional costs charged against the operating profit and non-operating exceptional gains do not relate to the profitability 
of the Group on an ongoing basis. Therefore an adjusted earnings per share is presented as follows:
2005 2004
Earnings Earnings
Earnings per share Earnings per share
£’000 pence £’000 pence
Earnings per share - basic 7,115 87.5 3,219 39.9
Exceptional items
Cost of reorganising Food Division 350 4.3 ——
Cost of reorganising associate 885 10.9 ——
Profit on disposal of fixed assets (4,110) (50.5) ——
Taxation arising on exceptional items (363) (4.5) ——
Earnings per share - adjusted 3,877 47.7 3,219 39.9
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all
dilutive potential ordinary shares. The Group has two categories of dilutive potential ordinary shares: share options granted to directors
and share options granted to senior management, where the exercise price is less than the average market price of the Company’s
ordinary shares during the period.
2005 2004
Weighted Earnings Weighted Earnings
Earnings average number per share Earnings average number per share
£’000 of shares pence £’000 of shares pence
Earnings per share 7,115 8,127,328 87.5 3,219 8,073,599 39.9
Effect of dilutive securities:
Options — 158,591 (1.6) — 12,551 (0.1)
Diluted earnings per share 7,115 8,285,919 85.9 3,219 8,086,150 39.8 32
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notes to the Financial Statements
continued 
12 INTANGIBLE FIXED ASSETS
Negative
Goodwill Goodwill Others Total
Group £’000 £’000 £’000 £’000
Cost
At 29/08/04 — 173 160 333
Additions (639) (441) — (198)
Disposals — (73) — (73)
At 03/09/05 (639) 541 160 62
Amortisation
At 29/08/04 — 133 16 149
Charge for period (100) 59 32 (9)
Disposals — (73) — (73)
At 03/09/05 (100) 119 48 67
Net book value
At 03/09/05 (539) 422 112 (5)
At 28/08/04 — 40 144 184
The trade and certain assets of George Shackleton & Sons Limited were disposed of on 30 March 2005. There was no profit or loss
arising on disposal. 
Goodwill of £100,000 arose on the acquisition of the trade and certain assets of Angus Fertilizers Limited and is being amortised on a
straight line basis over five years. This is the period over which the directors estimate that the value of the underlying business
acquired is expected to exceed the value of these underlying assets.
Negative goodwill of £639,000 arose on the acquisition of the entire ordinary share capital of Carrs Animal Feed Supplements Limited
(formerly Meneba UK Holdings Limited) (see note 25).
This negative goodwill has been allocated to the non-monetary assets of the Company at acquisition and is being released to the profit
and loss account on a basis consistent with the useful economic life of those assets.
Goodwill of £326,000 arose on the acquisition of the entire ordinary share capital of Wallace Oils Holdings Limited by Carrs Billington
Agriculture (Sales) Limited. This is being amortised on a straight line basis over five years (see note 25).
Goodwill of £115,000 arose on the purchase of further shares in Northern Feeds Solutions Limited. This is being amortised on a
straight line basis over five years.
Other intangible assets represent purchased know-how and are being amortised on a straight line basis over five years, being the
directors’ estimate of the useful economic life. 33
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
13 TANGIBLE FIXED ASSETS
Assets in 
Land and Plant and course of
buildings equipment construction Total
Group £’000 £’000 £’000 £’000
Cost or valuation
At 29/08/04 12,645 24,973 567 38,185
Exchange differences (24) (86) (4) (114)
Subsidiaries acquired 4,899 9,411 — 14,310
Additions 2,740 2,245 1,154 6,139
Disposals (1,276) (1,390) — (2,666)
Reclassifications 31 1,216 (1,247) —
At 03/09/05 19,015 36,369 470 55,854
Depreciation
At 29/08/04 2,199 15,512 — 17,711
Exchange differences (6) (43) — (49)
Subsidiaries acquired 397 5,942 — 6,339
Charge for the period 579 2,682 — 3,261
Disposals (374) (1,266) — (1,640)
At 03/09/05 2,795 22,827 — 25,622
Net book value
At 03/09/05 16,220 13,542 470 30,232
At 28/08/04 10,446 9,461 567 20,474
Cost or valuation at 
03/09/05 is represented by
Valuation in 1995 3,060 — — 3,060
Valuation in 1998 498 — — 498
Cost 15,457 36,369 470 52,296
19,015 36,369 470 55,854
The flour mill at Silloth-on-Solway was revalued on the basis of depreciated replacement cost at open market value for existing use at 
31 August 1995 by G. F. Singleton and Company, Chartered Surveyors. Following the decomissioning of the animal feed mill in August
1998 the portion of the building that remains in use was revalued on the basis of depreciated replacement cost by G. F. Singleton and
Company, Chartered Surveyors, at 29 August 1998. Other land and buildings, with the exception of properties constructed or land
acquired in 1995 and subsequent years, were valued at open market value for existing use at 31 August 1995 by Carigiet Cowen,
Chartered Surveyors. If land and buildings had not been revalued they would have been included at the following amounts:
2005 2004
£’000 £’000
Cost 17,937 11,567
Aggregate depreciation based on cost (3,349) (2,784)
Net book amount based on historical cost 14,588 8,783
The net book value of land and buildings comprises:
Freehold 12,157 8,876
Long leasehold 4,063 1,570
16,220 10,446
The net book value of plant and equipment includes £2,410,782 (2004: £1,765,827) in respect of assets held under finance leases. 
The Company has no tangible fixed assets. 34
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notes to the Financial Statements
continued 
14 INVESTMENTS
Joint Loans to Other
venture Associate associate investments Total
Group £’000 £’000 £’000 £’000 £’000
Cost
At 29/08/04 — 1,992 1,225 271 3,488
Subsidiaries acquired — — — 1 1
Additions 172 — — 1 173
Share of loss — (531) — — (531)
At 03/09/05 172 1,461 1,225 273 3,131
Amounts written off at 29/08/04 and 03/09/05 — — — 18 18
Net book value
At 03/09/05 172 1,461 1,225 255 3,113
At 28/08/04 — 1,992 1,225 253 3,470
Joint Loans to Shares in Other
venture Associate associate subsidiaries investments Total
Company £’000 £’000 £’000 £’000 £’000 £’000
Cost
At 29/08/04 — 245 1,225 12,631 211 14,312
Additions 172 — — 5,527 — 5,699
At 03/09/05 172 245 1,225 18,158 211 20,011
Amounts written off
At 29/08/04 — — — 5,261 9 5,270
Provision in the period — — — (175) — (175)
At 03/09/05 — — — 5,086 9 5,095
Net book value
At 03/09/05 172 245 1,225 13,072 202 14,916
At 28/08/04 — 245 1,225 7,370 202 9,042
Other investments comprise of shares in several private limited companies.
During the period the Company acquired 50% of the Share Capital of Crystalyx Products GmbH, a company incorporated in Germany,
under a joint venture arrangement. The cash consideration paid was €250,000. 35
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
14 INVESTMENTS (CONTINUED)
Proportion of Shares Held
Ordinary Preference Country of
Name % % Incorporation Activity
Subsidiaries:
Carrs Agriculture Ltd. 100 100 England Manufacture of animal feed blocks
and fertiliser
Carrs Billington Agriculture (Sales) Ltd. 51 — England Agricultural retailers
Animal Feed Supplement Inc. 100 — USA Manufacture of animal feed blocks
Northern Feeds Solutions Limited 43 — England Agricultural retailers
Wallace Oils Holdings Ltd. 100 — Scotland Holding company
Wallace Oils Ltd. 100 — Scotland Suppliers of fuel oils and lubricants
Carr’s Flour Mills Ltd. 100 100 England Flour milling
George Shackleton & Sons Ltd. 100 — Eire Suppliers of flour and food ingredients
Carrs Animal Feed Supplements Ltd.
(formerly Meneba UK Holdings Ltd.) 100 — England Holding company
Robert Hutchison and Sons Ltd. 100 — England Flour milling
Greens Flour Mills Ltd. 100 — England Flour milling
Carrs Engineering Ltd. 100 100 England Engineering
Bowie and Aram Ltd. 100 — Scotland Travel agents
B.R.B. Trust Ltd. 100 100 England Financial services
Carrs Properties Ltd. 100 — England Property holding
Associate:
Carrs Billington Agriculture (Operations) Ltd. 49 — England Manufacture of animal feed
Joint venture:
Crystalyx Products GmbH 50 — Germany Manufacture of animal feed blocks
Investments in the subsidiaries listed above are held directly by the holding company with the following exceptions: George Shackleton
& Sons Limited is held by Carr’s Flour Mills Limited and Northern Feeds Solutions Limited, Wallace Oils Holdings Limited and Wallace
Oils Limited are subsidiaries of Carrs Billington Agriculture (Sales) Limited.
George Shackleton & Sons Limited ceased to trade in the period. The directors do not consider this sufficiently material to classify as
discontinued operations.
During the period Carrs Billington Agricultural (Sales) Limited increased its shareholding in Northern Feeds Solutions Limited to 84%.
Dormant subsidiaries are not shown above because disclosure would be excessively lengthy. A full list of subsidiary undertakings will 
be annexed to the Company’s next annual return.
15 STOCKS 2005 2004
Group £’000 £’000
Raw material and consumables 4,574 4,163
Work in progress 1,784 1,013
Finished goods and goods for resale 6,589 5,211
12,947 10,387
The Company has no stocks. 36
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notes to the Financial Statements
continued 
16 DEBTORS Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Amounts receivable within one year:
Trade debtors 32,060 17,792 — —
Amounts recoverable on contracts 189 383 — —
Amounts owed by Group undertakings — — 13,913 8,905
Corporation tax recoverable 87 82 410 391
Group taxation relief — — 192 72
Amounts owed by associate (see note 35) 391 104 — —
Other debtors 1,372 1,025 47 64
Prepayments and accrued income 651 382 88 48
Dividends due from Group undertakings — — 5,754 2,152
34,750 19,768 20,404 11,632
Amounts receivable after more than one year:
Other debtors 23 5 — —
Deferred tax asset 204 170 242 148 
34,977 19,943 20,646 11,780
17 CREDITORS Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Amounts falling due within one year:
Bank and other borrowings (see note 19) 8,641 2,969 3,023 1,077 
Other non-interest bearing loans (see note 19) 1,225 490 — —
Payments on account 1,481 1,003 — —
Trade creditors 17,242 9,369 — —
Amounts owed to Group undertakings — — 4,313 1,436
Amounts owed to associate (see note 35) 5,787 5,135 — —
Corporation tax 1,581 944 — —
Other taxes and social security payable 1,214 1,297 136 79
Other creditors 1,310 766 67 —
Finance leases (see note 19) 800 554 — —
Accruals 3,046 2,011 1,121 880
Dividends payable 903 727 903 727 
43,230 25,265 9,563 4,199 
18 CREDITORS Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Amounts falling due after more than one year:
Bank loans (see note 19) 6,503 1,400 6,503 1,400 
Other non-interest bearing loans (see note 19) 31 765 — —
Other creditors (see note 19) 1,102 943 — —
Finance leases (see note 19) 865 671 — —
8,501 3,779 6,503 1,400
Finance lease obligations are secured on the assets to which they relate. Bank and other borrowings includes an amount of £6,703,000
which is secured on trade debtors. The Company, together with its subsidiaries, act as guarantors on the bank loans.
The other non-interest bearing loan has no fixed date for repayment, the bank loans are repayable by installments and the overdraft is
repayable on demand.
Bank loans falling due after more than one year includes a revolving credit facility of £4.5m which is not repayable until October 2009. 37
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
19 DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS
Set out below are the narrative and numerical disclosures required by Financial Reporting Standard (FRS) 13 “Derivatives and other
financial instruments”.
The Group’s financial instruments, other than derivatives, comprise borrowings, some cash and liquid resources, and various items
such as trade debtors, trade creditors etc., that arise directly from its operations. The main purpose of these financial instruments is to
manage the finance for the Group’s operations.
The Group also enters into derivatives transactions (principally foreign currency contracts and interest rate caps). The purpose of such
transactions is to manage the interest rate and currency risks arising from the Group’s operations and its sources of finance.
It is, and has been throughout the period under review, the Group’s policy that no trading in financial instruments shall be undertaken.
The main risk from the Group’s financial instruments are interest rate risk, liquidity risk and foreign currency risk. The Board reviews
and agrees policies for managing each of these risks and they are summarised below. These policies have remained unchanged
throughout the period.
Short-term debtors and creditors
Short-term debtors and creditors have been excluded from all the following disclosures, other than the currency risk disclosures.
Interest rate risk
The Group finances its operations through a mixture of retained profits and bank borrowings. The Group borrows in the desired
currencies at fixed and floating rates of interest and then uses interest rate collars and swaps to manage the Group’s exposure to
interest rate fluctuations. At the year end £6.569 million (2004: £1.225 million) of the Group’s borrowings were at a fixed rate of
interest. 
Liquidity rate risk
As regards liquidity, the Group’s policy throughout the period has been to maintain a mix of short and medium term borrowings. 
Short-term flexibility is achieved by overdraft facilities. In addition it is the Group’s policy to maintain committed undrawn facilities in
order to provide flexibility in the management of the Group’s liquidity.
Foreign currency risk
The Group’s subsidiary, Animal Feed Supplement Inc., operates in the USA and its revenues and expenses are denominated
exclusively in US dollars. The Group’s sterling balance sheet is not protected from movements in US dollar/sterling exchange rate. 
The foreign currency risk in relation to the Group’s other overseas subsidiary, George Shackleton & Sons Limited which operates in
Eire, is insignificant. 38
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notes to the Financial Statements
continued 
19 DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS (CONTINUED)
Interest rate risk profile of financial liabilities
The interest rate risk profile of the Group’s financial liabilities at 3 September 2005 was:
2005 2004
Financial Financial
Floating Fixed rate liabilities on Floating Fixed rate liabilities on 
rate financial financial which no rate financial financial which no
Currency Total liabilities liabilities interest is paid Total liabilities liabilities interest is paid
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Sterling 18,020 10,195 6,569 1,256 6,689 4,209 1,225 1,255
US Dollar 1,147 45 — 1,102 1,103 160 — 943
19,167 10,240 6,569 2,358 7,792 4,369 1,225 2,198
All the Group’s creditors falling due within one year (other than bank, other borrowings and finance leases) are excluded from the
above table either due to the exclusion of short-term items or because they do not meet the definition of a financial liability, such as tax
balances. 
The effect of the Group’s interest rate swap is to classify £4.9 million of sterling floating rate borrowings in the above table as fixed rate.
Fixed rate financial liabilities Financial liabilities on
which no interest is paid
Weighted average Weighted average Weighted average
interest rate period for which rate period until maturity
is fixed
2005 2004 2005 2004 2005 2004
Currency
Sterling 6.2% 6.0% 2.88 years 1.51 years 1.92 years 2.14 years
The floating rate financial liability in sterling bears interest at 1% over the Bank of England base rate, 1.25% or 1.125% over LIBOR and
in US dollar bears interest at 1% over the US prime rate.
Interest rate risk profile of financial assets
2005 2004
Cash at bank and in hand Cash at bank and in hand
Currency £’000 £’000
Sterling 3,066 910
Euro 20 25
US Dollar 63 156
3,149 1,091
Floating rate 3,129 1,066
Non-interest bearing 20 25
3,149 1,091
Other investments of £255,000 (2004: £253,000) and other debtors of £23,000 (2004: £5,000) are all non-interest bearing and
denominated in sterling. They have no period to maturity.
The above analysis excludes deferred taxation recoverable after more than one year as required by FRS 13. 39
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
19 DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS (CONTINUED)
Currency exposures
The table below shows the extent to which Group companies have monetary assets and liabilities in currencies other than their local
currency. Foreign exchange differences on retranslation of these assets and liabilities are taken to the profit and loss account of the 
relevant group company.
Net foreign currency monetary assets/(liabilities)
2005 2004
US US
Sterling Dollar Euro Total Sterling Dollar Euro Total
Functional currency of 
Group operations: £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Sterling — (845) 939 94 — (1,347) 648 (699)
Euro (74) — — (74) (36) — — (36)
(74) (845) 939 20 (36) (1,347) 648 (735)
Maturity of financial liabilities
The maturity profile of the carrying amount of the Group’s financial liabilities, other than the short-term creditors such as trade creditors
and accruals, at 3 September 2005 was as follows:
Other Other
Finance financial 2005 Finance financial 2004
Debt leases liabilities Total Debt leases liabilities Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Within one year
or on demand 9,866 800 — 10,666 3,459 554 — 4,013
Between one and
two years 924 569 — 1,493 1,565 388 — 1,953
Between two and
five years 5,610 296 1,102 7,008 600 283 943 1,826
16,400 1,665 1,102 19,167 5,624 1,225 943 7,792
Borrowing facilities
The Group had various undrawn committed facilities. The facilities available at 3 September 2005, in respect of which all conditions
precedent had been met, were as follows:
2005 2004
Floating rate Floating rate
£’000 £’000
Expiring in one year or less 9,695 8,888
The undrawn facilities expiring within one year are annual facilities subject to review at various dates during December 2005/January 2006. 40
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notes to the Financial Statements
continued 
19 DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS (CONTINUED)
Fair values of financial assets and financial liabilities
The following table provides a comparison by category of the carrying amounts and the fair values of the Group’s financial assets and
financial liabilities at 3 September 2005. Fair value is the amount at which a financial instrument could be exchanged in an arm’s length
transaction between informed and willing parties, other than a forced or liquidation sale, and excludes accrued interest. Where
available, market values have been used to determine fair values. Where market values are not available, fair values have been
calculated by discounting expected cash flows at prevailing interest and exchange rates.
2005 2004
Book value Fair value Book value Fair value
£’000 £’000 £’000 £’000
Primary financial instruments held or issued
to finance the Group’s operations:
Short-term financial liabilities and current portion of
long-term borrowings (10,666) (10,666) (4,013) (4,013)
Long-term borrowings excluding current portion (7,399) (6,006) (2,836) (2,688)
Other creditors due after more than one year (1,102) (1,102) (943) (943)
Cash at bank and in hand 3,149 3,149 1,091 1,091
Other investments 255 255 253 253
Other debtors due after more than one year 23 23 55
Derivative financial instruments held to manage
the interest rate and currency profile:
Forward foreign currency contracts —— —5
Interest rate swaps — (106) ——
The fair value of the forward foreign currency contracts are based on the market price of comparable instruments at the balance sheet
date. The fair value of the short-term borrowings and cash at bank approximates to the carrying amount because of the short maturity 
of these instruments.
Gains and losses on hedges
The Group enters into forward foreign currency contracts to eliminate the currency exposures that arise on purchases denominated 
in foreign currencies immediately those purchases are transacted. Changes in the fair value of instruments used as hedges are not 
recognised in the financial statements until the hedged position matures. An analysis of these unrecognised gains and losses has not 
been provided as the balances were under £50,000. This was also the case for the year ended 28 August 2004.
20 PROVISIONS FOR LIABILITIES AND CHARGES
Deferred tax
Group £’000
At 28/08/04 951
Exchange adjustments 5
Arising on acquisitions 415
Movement in deferred tax asset shown in debtors (see note 16) 34
Credit to the profit and loss account (179)
At 03/09/05 1,226 41
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
20 PROVISIONS FOR LIABILITIES AND CHARGES (CONTINUED)
Deferred taxation
Deferred taxation provided in the accounts is as follows:
Amount provided Amount unprovided
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Tax effect of timing differences (517) (396) — —
Excess of tax allowances over depreciation 1,545 1,177 (1) —
Losses (6) — (481) (485)
Capital gains/revaluation surpluses — — 1,026 307
Deferred tax at 03/09/05 1,022 781 544 (178)
Deferred tax asset shown in debtors (see note 16) 204 170 — —
Deferred tax liability at 03/09/05 1,226 951 544 (178)
The potential deferred tax liability has not been provided as it is not considered probable that it will be payable in the foreseeable future.
21 DEFERRED INCOME Grants
2005
Group £’000
At 28/08/04 244
Arising on acquisitions 25
Amortisation in the period (50)
Provision for repayment (34)
At 03/09/05 185
22 CALLED-UP SHARE CAPITAL Group and Company
2005 2004
£’000 £’000
Authorised:
10,500,000 ordinary shares of 25p each (2004: 10,500,000) 2,625 2,625
Allotted and fully paid:
8,213,579 ordinary shares of 25p each (2004: 8,073,599) 2,053 2,018
Option schemes
Outstanding share options
2005 2004 Price Range Dates of Grant
Executive scheme — 39,380 81.5p - 212p 1992 - 1994
Executive scheme 1996 90,000 90,000 161p 2002
Company plan 1996 — 9,600 310.5p 1996 - 1997
Company plan 1996 57,000 148,000 161p 2002
During the period 139,980 (2004: nil) shares were issued under share option schemes.
Options granted on the Company plan 1996 are normally exercisable 3-10 years from the date of grant. Options granted in the
Executive scheme 1996 are normally exercisable 3-7 years from the date of grant. 42
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notes to the Financial Statements
continued 
23 RESERVES AND MINORITY INTEREST
Share
Premium Revaluation Profit and Minority
Account Reserve Loss Account Interests
Group £’000 £’000 £’000 £’000
At 28/08/04 4,752 1,663 15,605 1,272
Exchange adjustments — — (80) —
Elimination of goodwill arising on prior years’ 
acquisitions — — (406) —
Minority interest on increase in shareholding
in subsidiary — — — 109
Share options exercised 225 — — —
Transfer from revaluation reserve
to profit and loss account — (31) 31 —
Retained profit for the period — — 5,802 —
Minority share of profit — — — 276
At 03/09/05 4,977 1,632 20,952 1,657
Company
At 28/08/04 4,752 — 8,453 —
Share options exercised 225 — — —
Retained profit for the period — — 4,013 —
At 03/09/05 4,977 — 12,466 —
The elimination of goodwill arising on prior years’ acquisitions of £406,000 is in respect of deferred consideration on the acquisition of
James A Bendall (Property) Limited. This acquisition was made prior to 31 August 1998 and therefore the adjustment to the original
goodwill has been accounted for in accordance with the standards in force at that time.
Cumulative goodwill relating to acquisitions made prior to 31 August 1998, which has been eliminated against Group reserves, amounts 
to £5,448,000 (2004: £5,042,000).
Additional minority interest arose during the period on the increase in the shareholding of Northern Feeds Solutions Limited by Carrs
Billington Agriculture (Sales) Limited. This represents the reduction of the minority interest in the negative net assets of Northern Feeds
Solutions Limited on the date that the additional shares were acquired.
24 RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS’ FUNDS
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Profit for the financial period 7,115 3,219 5,326 1,533
Dividends (1,313) (1,090) (1,313) (1,090)
5,802 2,129 4,013 443
Exchange differences (80) (330) — —
Elimination of goodwill arising on prior years’ 
acquisitions (406) — — —
New shares issued 260 — 260 —
Net increase in equity shareholders’ funds 5,576 1,799 4,273 443
Opening equity shareholders’ funds 24,038 22,239 15,223 14,780
Closing equity shareholders’ funds 29,614 24,038 19,496 15,223 43
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
25 ACQUISITIONS
Carrs Animal Feed Supplements Limited
On 18 November 2004 the Company acquired the whole of the issued share capital of Carrs Animal Feed Supplements Limited
(formerly Meneba UK Holdings Limited) for a total cash consideration including costs of £5,121,000.
The total adjustments required to the book values of the assets and liabilities of the acquired company in order to present the net
assets at fair values and in accordance with Group accounting principles were £569,000 details of which are set out below, together
with the resultant amount of negative goodwill arising.
This purchase has been accounted for as an acquisition.
The summarised consolidated profit and loss account for Carrs Animal Feed Supplements Limited and its wholly owned subsidiaries
for the period from 1 July 2004, the beginning of their financial year, to the date of the acquisition is as follows:
Period ended
17 November 2004
£’000
Profit and Loss account
Turnover 13,402
Operating profit 752
Profit on ordinary activities before taxation 637
Taxation on ordinary activities (250)
Profit on ordinary activities after taxation 387
The profit on ordinary activities after taxation for the year ended 30 June 2004 was £287,000.
The Company has no recognised gains and losses other than the profit for the financial period shown above.
The assets and liabilities of Carrs Animal Feed Supplements Limited acquired are set out below:
Book Goodwill Fair
value Revaluations elimination Other value
£’000 £’000 £’000 £’000 £’000
Intangible fixed assets 1,061 (1,061) —
Tangible fixed assets 5,323 1,674 6,997
Stock 1,262 1,262
Debtors 5,760 5,760
Creditors (4,048) (4,048)
Taxation
- Current (321) (321)
- Deferred (263) (44) (307)
Cash 1,787 1,787
Loans (5,370) (5,370)
Net assets acquired 5,191 1,674 (1,061) (44) 5,760
Negative goodwill (639)
5,121
Satisfied by:
Cash 4,749
Acquisition expenses 372
5,121
The fair value adjustments relate to the revaluation of the land and buildings acquired and the elimination of the book value of the
purchased goodwill. Other fair value adjustments relate to deferred taxation being brought in line with Group policy. 44
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notes to the Financial Statements
continued 
25 ACQUISITIONS (CONTINUED)
The acquired flour mills were valued on the basis of depreciated replacement cost at open market value for existing use and the freehold
dwellings at market value at March 2005 by Strutt & Parker, Property Consultants.
The loan of £5,370,000 was repaid as a condition of the acquisition agreement.
Impact on cash flows
The acquisition contributed £1,793,000 to the Group’s net operating cash flows, utilised £15,000 in respect of net returns on investment,
utilised £235,000 in respect of capital expenditure, utilised £131,000 in respect of taxation and utilised £23,000 in respect of financing.
Wallace Oils Holdings Limited 
On 28 April 2005 Carrs Billington Agriculture (Sales) Limited acquired the whole of the issued share capital of Wallace Oils Holdings
Limited for a total consideration including costs of £1,746,000.
The total adjustments required to the book values of the assets and liabilities of the acquired company in order to present the net assets
at fair values and in accordance with Group accounting principles were £24,000, details of which are set out below, together with the
resultant amount of goodwill arising.
This purchase has been accounted for as an acquisition.
The summarised consolidated profit and loss account for Wallace Oils Holdings Limited and its wholly owned subsidiary for the period
from 1 November 2004, the beginning of their financial year, to the date of the acquisition is as follows:
Period ended
27 April 2005
£’000
Profit and Loss account
Turnover 11,026
Operating profit 204
Profit on ordinary activities before taxation 191
Taxation on ordinary activities (100)
Profit on ordinary activities after taxation 91
The profit on ordinary activities after taxation for the year ended 31 October 2004 was £77,867.
The Company has no recognised gains and losses other than the profit for the financial period shown above. 45
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
25 ACQUISITIONS (CONTINUED)
The assets and liabilities of Wallace Oils Holdings Limited acquired are set out below:
Book Goodwill Fair
value Revaluations elimination Other value
£’000 £’000 £’000 £’000 £’000
Intangible fixed assets 3 (3) —
Tangible fixed assets 956 18 974
Stock 289 289
Debtors 2,632 2,632
Creditors (2,577) (2,577)
Taxation
- Current (74) (74)
- Deferred (69) (39) (108)
Cash 284 284
Net assets acquired 1,444 18 (3) (39) 1,420
Goodwill 326
1,746
Satisfied by:
Cash 1,324
Acquisition expenses 100
Deferred consideration 322
1,746
The fair value adjustments relate to the revaluation of the land and buildings acquired and the elimination of the book value of the
purchased goodwill. Other fair value adjustments relate to deferred taxation being brought in line with Group policy.
The acquired oil distribution depots were valued on the basis of market value for existing use at August 2005 by Carigiet Cowan,
Chartered Surveyors. 
The deferred consideration is payable over two years on achievement of profit targets.
Impact on cash flows
The acquisition utilised £918,000 of the Group’s net operating cash flows, utilised £8,000 in respect of net returns on investment, utilised
£36,000 in respect of capital expenditure, utilised £14,000 in respect of taxation and utilised £56,000 in respect of financing.
Other acquisitions
A payment of £406,000 was made in the period in respect of deferred consideration on the acquisition of James A Bendall (Property) Limited.
During the period Carrs Billington Agriculture (Sales) Limited increased its shareholding in Northern Feeds Solutions Limited to 84%
for a cash consideration of £6,000 generating goodwill of £115,000. This transaction has increased the Group’s shareholding in
Northern Feeds Solutions Limited to 43%.
26 CASH INFLOW FROM OPERATING ACTIVITIES
2005 2004
Continuing operations £’000 £’000
Group operating profit 6,816 5,036
Depreciation charge 3,261 2,367
Profit on disposal of fixed assets (125) (108)
Amortisation of intangible assets (9) 38
Grants amortisation (50) (59)
Release of finance costs in accordance with FRS 4 6 —
Increase in stocks (1,009) (1,264)
Increase in debtors (6,603) (1,447)
Increase in creditors 4,357 1,860
Decrease in provisions — (167)
Net cash inflow from operating activities 6,644 6,256 46
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notes to the Financial Statements
continued 
27 ANALYSIS OF NET DEBT
At 29 Acquisitions Other At 3
August (excluding cash non-cash Exchange September
2004 Cash flow and overdrafts) changes movements 2005
£’000 £’000 £’000 £’000 £’000 £’000
Cash at bank and in hand 1,091 2,058——— 3,149
Bank overdrafts (2,169) 1,531 — — (8) (646)
(1,078) 3,589 — — (8) 2,503
Loans and other borrowings: 
amounts falling due within one year (1,290) (12,293) — 4,363 — (9,220)
Loans: amounts falling due 
after more than one year (2,165) — — (4,369) — (6,534)
Finance leases: amounts falling due 
within one year (554) 804 (647) (403) — (800)
Finance leases: amounts falling due 
after more than one year (671) — — (194) — (865)
(5,758) (7,900) (647) (603) (8) (14,916)
Other non-cash changes relate to finance leases and transfers between categories of borrowings. It also includes the release of
borrowing costs to the profit and loss account under FRS 4. 
28 CASH FLOWS RELATING TO EXCEPTIONAL ITEMS
In 2005 operating cash flow includes under continuing operations an outflow of £350,000 (2004: £nil) which relates to the exceptional
cost of reorganising the Food Division and, £nil (2004: £199,000) which relates to exceptional cost of reorganising the Agricultural
Division. The cash consideration received on the disposal of the Bendall’s site on London Road, Carlisle was £2,846,000 net of
expenses. The disposal of the London Road site triggered a payment of £406,000 for the shares acquired in 1996 of James A Bendall
(Property) Limited.
29 NET CASH INFLOW/(OUTFLOW) FROM FINANCING
2005 2004
£’000 £’000
Share options exercised (see note 22) 260 —
Issue of minority interest share capital in subsidiary — 1
New loans and other borrowings in period 13,668 —
Repayment of loans and other borrowings (1,375) (648)
Capital element of finance lease payments (804) (664)
11,749 (1,311)
30 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
2005 2004
£’000 £’000
Increase/(decrease) in cash in the period 3,589 (847)
Cash (inflow)/outflow from debt and lease financing (11,489) 1,312
(7,900) 465
Loans and finance leases acquired with subsidiaries (647) —
New finance leases (597) (609)
Release of finance costs under FRS 4 (6) —
Exchange adjustments (8) 1
(9,158) (143)
Net debt at 28 August 2004 (5,758) (5,615)
Net debt at 3 September 2005 (14,916) (5,758) 47
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
31 CAPITAL COMMITMENTS 2005 2004
£’000 £’000
Capital expenditure that has been contracted for but has not been
provided for in the accounts 225 81
32 OTHER FINANCIAL COMMITMENTS
At 3 September 2005 the Group had annual commitments under non-cancellable operating leases as follows:
Land and Buildings Other
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Expiring within one year — — 7 9
Expiring between two and five
years inclusive — — 126 84
Expiring after five years 16 9 1 — 
16 9 134 93
33 CONTINGENT LIABILITIES
The Company, together with certain subsidiary undertakings, has entered into a guarantee with Clydesdale Bank PLC in respect of the
Group loans and overdraft with that bank, which at 3 September 2005 amounted to £nil (2004: £nil).
The Company, together with certain subsidiary undertakings, has been granted a €1m letter of credit by Clydesdale Bank PLC in
favour of Crystalyx Products GmbH, a new joint venture arrangement.
The Company, together with certain of its subsidiary undertakings, has entered into a guarantee with Royal Bank of Scotland PLC in
respect of the overdraft with that bank, which at 3 September 2005 amounted to £601,000 (2004: £2,008,000).
The Company, together with its associate undertaking, has entered into a guarantee with Royal Bank of Scotland PLC in respect of its 
share of the overdraft with that bank, which at 3 September 2005 amounted to £1,047,000 (2004: £582,000).
One of the Group’s bankers in the normal course of business, enters into certain specific guarantees with some of a subsidiary’s
customers. All these guarantees allow the bank to have recourse to the Company if a guarantee is enforced. The total outstanding of
such guarantees entered into by the bank as at 3 September 2005 was £429,000 (2004: £204,000).
A subsidiary undertaking of the Company, together with an associated undertaking of the Company, has entered into a guarantee with
Royal Bank of Scotland PLC in respect of a loan with that bank. The Group’s exposure to this liability as at 3 September 2005
amounts to £1,225,000 (2004: £nil).
34 PENSION COMMITMENTS 
The Group participates in two defined benefit pension schemes, Carr’s Milling Industries Pension Scheme 1993 and Carrs Billington
Agriculture Pension Scheme. The Company has accounted for the schemes under SSAP 24 and adopted the transitional rules of FRS 17.
Carr’s Milling Industries
The Company sponsors the Carr’s Milling Industries Pension Scheme 1993 and offers a defined contribution and a defined benefit section.
The assets of this scheme are held separately from those of the Group and are invested with an independent investment manager.
The pension expense for the defined contribution section of the scheme for the period was £177,000 (2004: £143,000). Contributions
totalling £8,000 (2004: £nil) were payable to the fund at the year end and are included in creditors.
A Group Personal Pension plan was established on the acquisition of Carrs Animal Feed Supplements Limited (formerly Meneba UK
Holdings Limited). Since the acquisition date, the pension expense for the period in respect of this scheme was £173,000.
The defined benefit section of the scheme is funded to cover future pension liabilities (including expected future earnings and pension
increases). It is subject to an independent valuation on a triennial basis by a qualified actuary who determines the rate of the employer’s
contribution. Pension scheme contributions are charged to the profit and loss account so as to spread the cost of pensions over the
employees’ working lives within the Group. The most recent valuation of the scheme was at 1 January 2003 and adopted the Projected
Unit Method. It was assumed that the investment returns would be 7% per annum and that the salary increases would average 3.25%
per annum. It was also assumed that present and future pensions, in excess of the Guaranteed Minimum Pension (GMPs), would
increase once in payment at the lesser of 5% per annum and price inflation and that GMPs would increase at the rate of 3% per annum.  48
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notes to the Financial Statements
continued 
34 PENSION COMMITMENTS (CONTINUED) 
The actuarial valuation as at 1 January 2003 shows that the market value of assets relating to the defined benefit section of the scheme
was £18,997,000 and the actuarial value of those assets represented 66% of the actuarial value of benefits that had accrued to
members, after allowing for expected future increases in earnings. At 1 January 2003, the scheme showed a deficit of £9,577,000.
An accrual of £781,000 (2004: £488,000) is included in the Group net assets representing the deficit of the amount funded over the
accumulated pension expense.
The pension contribution made by the Group over the period to the defined benefit section was £1,296,000 (2004: £1,303,000). The
deficit is being amortised, for SSAP 24 purposes, over 12 years being the average remaining service lives of the employees. The
contribution rates payable by employer and employee were increased in 2003 following the triennial valuation of the scheme and will
continue until reviewed at the next valuation due as at 1 January 2006.
The following disclosures, required by FRS 17, relate to the defined benefit section and exclude insured pension arrangements. The
last full actuarial valuation of this scheme was carried out by a qualified independent actuary as at 1 January 2003 and updated on an
approximate basis to 3 September 2005.
Assumptions
The assets of the scheme have been taken at market value and the liabilities have been calculated using the following principal actuarial
assumptions:
Carr’s Milling Industries
Pension Scheme 1993
2005 2004 2003
Inflation 2.75% 3.0% 2.5%
Salary increases 3.75% 4.0% 3.5%
Rate of discount 5.4% 6.0% 5.75%
Pension in payment increases:
Pre 1 September 2001 3.0% 3.0% 3.0%
Post 1 September 2001 2.75% 3.0% 2.5%
Revaluation rate for deferred pensioners for pensions 
revaluing at 5.0% per annum or RPI if less 2.75% 3.0% 2.5%
Assets and liabilities of the scheme:
2005 2004 2003
£’000 £’000 £’000
Assets 27,437 23,051 21,315
Liabilities (39,556) (33,991) (32,068)
Deficit in the scheme (12,119) (10,940) (10,753)
Related deferred tax asset 3,636 3,282 3,226
Net pension liability (8,483) (7,658) (7,527)
The split of assets is as follows:
2005 2004 2003
Equities 53% 53% 55%
Property 6% ——
Bonds 39% 40% 38%
Other 2% 7% 7%
Expected long-term rate of return
2005 2004 2003
£’000 £’000 £’000
Equities 7.5% 7.75% 7.5%
Property 6.5% ——
Bonds 5.0% 6.0% 5.75%
Other 4.5% 6.0% 5.75% 49
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Analysis of charge that would be made to the 
profit and loss account over the financial period
2005 2004
£’000 £’000
Current service cost 513 476
Interest on pension scheme liabilities 2,037 1,841
Expected return on pension scheme assets (1,618) (1,451)
Total 932 866
Analysis of amounts which would be included within the statement of total recognised gains and losses
Carr’s Milling Industries
Pension Scheme 1993
Amount Amount
2005 2004
£’000 £’000
Difference between expected and actual return on assets 2,018 (397)
Experience gains and losses arising on the scheme liabilities (524) (308)
Effects of changes in the demographic and financial assumptions 
underlying the present value of the scheme liabilities (3,037) 81
Total (1,543) (624)
Movement of balance sheet deficit figures during the period
2005 2004
£’000 £’000
Deficit in scheme at beginning of period (10,940) (10,753)
Movement in period:
Current service cost (513) (476)
Contributions 1,296 1,303
Net interest/return on assets (419) (390)
Actuarial loss (1,543) (624)
Deficit in scheme at end of period (12,119) (10,940)
2005 2004 2003 2002
£’000 £’000 £’000 £’000
History of experience gains and losses
Difference between expected and actual returns of scheme assets:
Amount £’000 2,018 (397) (280) (3,784)
Percentage of scheme assets 7.4% 1.7% 1.3% 19.1%
Experience gains and losses on scheme liabilities:
Amount £’000 (524) (308) (306) (377)
Percentage of scheme liabilities 1.3% 0.9% 1.0% 1.4%
Total amount recognised in statement of total recognised gains and losses: 
Amount £’000 (1,543) (624) (3,583) (5,016)
Percentage of scheme liabilities 3.9% 1.8% 11.2% 18.3% 50
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notes to the Financial Statements
continued 
34 PENSION COMMITMENTS (CONTINUED) 
Carrs Billington Agriculture
Carrs Billington Agriculture (Sales) Limited, one of the Group’s subsidiary undertakings, is a participating employer of the Carrs Billington
Agriculture Pension Scheme, another funded defined benefit scheme.
The pension contribution made by Carrs Billington Agriculture (Sales) Limited over the period to the Carrs Billington Agriculture Pension
Scheme was £295,000 (2004: £169,000). This corresponds to a rate of employer contribution of 35% or 30% from 1 January 2004 and
51% or 46% from 1 September 2004 following the triennial valuation of the scheme as at 31 December 2003.
The actuarial valuation as at 31 December 2003 shows that the market value of assets relating to the scheme was £14,600,000 and the
actuarial value of those assets represented 81% of the actuarial value of benefits that had accrued to members, after allowing for
expected future increase in earnings. The assumptions used in arriving at the valuations were a real rate of return over salary increases
on funds invested of 2% and rate of increase in present and future pensions of 2.65%. At 31 December 2003, the scheme showed a
deficit of £3,500,000.
Carrs Billington Agriculture (Sales) Limited also offer a Group Personal Pension Plan to its employees and the pension expense for this
plan in the period was £39,000 (2004: £36,000).
A defined contribution pension scheme was brought into the Group on the acquisition of Wallace Oils Holdings Limited by Carrs
Billington Agriculture (Sales) Limited. Contributions of £3,000 have been made to this scheme since acquisition.
The following disclosures relate to the defined benefit section and exclude insured pension arrangements. The last full actuarial valuation
of this scheme was carried out by a qualified independent actuary as at 31 December 2003 and updated on an approximate basis to 
3 September 2005.
It is not possible to identify the underlying share of the pension scheme assets and liabilities that relate to Carr’s Milling Industries PLC.
Approximately 50% of the assets and liabilities of the pension scheme relate to Carr’s Milling Industries PLC and on adoption of FRS 17,
approximately 50% of the assets and liabilities will be included in the Group’s financial statements. 51
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
34 PENSION COMMITMENTS (CONTINUED)
Assumptions
The assets of the scheme have been taken at market value and the liabilities have been calculated using the following principal actuarial
assumptions:
Carrs Billington Agriculture
Pension Scheme 
2005 2004 2003
Inflation 2.73% 2.84% 2.5%
Salary increases 3.5% 3.84% 3.5%
Rate of discount 4.88% 5.58% 5.42%
Pension in payment increases 2.73% 2.84% 2.5%
Revaluation rate for deferred pensioners for pensions 
revaluing at 5.0% per annum or RPI if less 2.73% 2.84% 2.5%
Assets and liabilities of the scheme:
2005 2004 2003
£’000 £’000 £’000
Assets 17,466 14,820 14,116
Liabilities (23,943) (19,677) (17,576)
Deficit in the scheme (6,477) (4,857) (3,460)
Related deferred tax asset 1,943 1,457 1,038
Net pension liability (4,534) (3,400) (2,422)
The split of assets is as follows:
2005 2004 2003
Equities 70% 73% 74%
Bonds 24% 26% 25%
Cash 6% 1% 1%
Expected long-term rate of return
2005 2004 2003
£’000 £’000 £’000
Equities 6.7% 7.2% 7.1%
Bonds 4.2% 4.7% 4.4%
Cash 4.2% 4.7% 4.4%
Analysis of charge that would be made to the 
profit and loss account over the financial period
2005 2004
£’000 £’000
Current service cost 130 125
Interest on pension scheme liabilities 1,086 940
Expected return on pension scheme assets (965) (893)
Total 251 172 52
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notes to the Financial Statements
continued 
34 PENSION COMMITMENTS (CONTINUED) 
Analysis of amounts which would be included within the statement of total recognised gains and losses
Carrs Billington Agriculture
Pension Scheme
Amount Amount
2005 2004
£’000 £’000
Difference between expected and actual return on assets 1,688 100
Experience gains and losses arising on the scheme liabilities — (814)
Effects of changes in the demographic and financial assumptions 
underlying the present value of the scheme liabilities (3,613) (814)
Total (1,925) (1,528)
Movement of balance sheet deficit figures during the period
2005 2004
£’000 £’000
Deficit in scheme at beginning of period (4,857) (3,460)
Movement in period:
Current service cost (130) (125)
Contributions 556 303
Net interest/return on assets (121) (47)
Actuarial loss (1,925) (1,528)
Deficit in scheme at end of period (6,477) (4,857)
2005 2004 2003 2002
£’000 £’000 £’000 £’000
History of experience gains and losses
Difference between expected and actual returns of scheme assets: 
Amount £’000 1,688 100 136 (2,866)
Percentage of scheme assets 9.7% 0.7% 1.0% 21.0%
Experience gains and losses on scheme liabilities:
Amount £’000 — (814) — —
Percentage of scheme liabilities — 4.1% — —
Total amount recognised in statement of total recognised gains and losses:
Amount £’000 (1,925) (1,528) (1,190) (3,497)
Percentage of scheme liabilities 8.0% 7.8% 6.8% 22.1%  53
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
34 PENSION COMMITMENTS (CONTINUED) 
2005 2004
£’000 £’000
Group net assets
Net assets excluding net pension liability 31,271 25,310
SSAP 24 adjustment 781 488
Net pension liability - Carr’s Milling Industries Pension Scheme (8,483) (7,658)
Net pension liability - 50% Carrs Billington Agriculture Pension Scheme (2,267) (1,700)
Net assets including net pension liability 21,302 16,440
2005 2004
£’000 £’000
Group profit and loss reserve
Net profit and loss reserve excluding net pension liability 20,952 15,605
SSAP 24 adjustment 781 488
Net pension liability - Carr’s Milling Industries Pension Scheme (8,483) (7,658)
Net pension liability - 50% Carrs Billington Agriculture Pension Scheme (2,267) (1,700)
Net profit and loss reserve including net pension liability 10,983 6,735 
35 RELATED PARTY TRANSACTIONS
The Company has an associate undertaking, Carrs Billington Agriculture (Operations) Limited. The principal activity of Carrs Billington
Agriculture (Operations) Limited is the manufacture of animal feed. 
The Group made sales to Carrs Billington Agriculture (Operations) Limited of £393,000 (2004: £292,000).
The Group made purchases from Carrs Billington Agriculture (Operations) Limited of £39,826,000 (2004: £41,777,000).
At 3 September 2005, debtors included £391,000 (2004: £104,000) due from Carrs Billington Agriculture (Operations) Limited and
creditors included £5,787,000 (2004: £5,135,000) due to Carrs Billington Agriculture (Operations) Limited.
Included in investments at 3 September 2005 is a loan of £1,225,000 (2004: £1,225,000) due from Carrs Billington Agriculture
(Operations) Limited.
During the period the Company issued a management charge of £20,000 to Edward Billington & Son Limited, the ultimate parent of
Carrs Billington Agriculture (Operations) Limited. This was in respect of services provided on the acquisition of the assets of W & J
Pye Limited by Carrs Billington Agriculture (Operations) Limited.
The Group made sales of £90,000 to Robert Hutchison Limited prior to its acquisition in the period.
The Group made purchases of £27,000 from Wallace Oils Limited prior to its acquisition in the period.
36 POST BALANCE SHEET EVENTS
In October 2005 a new joint venture company was formed, Bibby Agriculture Limited, with Carrs Billington Agriculture (Sales) Limited
being a 50% shareholder and Wynnstay Group PLC and Welsh Feed Producers Limited each having a 25% shareholding. The joint
venture will market and sell animal feed, fertilisers and other farm requirements in Wales. 54
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
2001 2002 2003 2004 2005
Sales and results £’000 £’000 £’000 £’000 £’000
Group Turnover 
Continuing operations 107,499 143,378 148,688 155,749 158,876
Acquisitions 5,656——— 33,248
Total Group turnover 113,155 143,378 148,688 155,749 192,124
Operating profit
Continuing operations 2,516 3,755 4,011 5,036 5,884
Acquisitions (69) — — — 932
Total Group operating profit 2,447 3,755 4,011 5,036 6,816
Share of profit/(loss) of associate — 434 718 739 (720)
Share of profit of joint venture 554——— —
Profit on part disposal of subsidiary undertaking — 307 — — —
Profit on disposal of fixed assets ———— 4,110
Profit on ordinary activities 
before interest 3,001 4,496 4,729 5,775 10,206
Interest payable and similar charges (939) (902) (663) (648) (1,190)
Profit before taxation 2,062 3,594 4,066 5,127 9,016
Taxation (376)(397)(1,277)(1,633) (1,625)
Profit after taxation 1,686 3,197 2,789 3,494 7,391
Minority interest (11) (277) (329) (275) (276)
Attributable profit 1,675 2,920 2,460 3,219 7,115
Dividends (640) (768) (930) (1,090) (1,313)
Retained profit 1,035 2,152 1,530 2,129 5,802
Net assets employed
Fixed assets 19,076 21,474 22,625 24,128 33,340
Net current assets 3,323 5,673 6,444 6,156 7,843
22,399 27,147 29,069 30,284 41,183
Non-current liabilities (1,343) (4,470) (4,265) (3,779) (8,501)
Provisions for liabilities and charges
including deferred tax and pensions (1,876) (1,129) (1,266) (951) (1,226)
Deferred income (234) (179) (303) (244) (185)
18,946 21,369 23,235 25,310 31,271
Ratios
Operating margin (continuing operations) 2.2% 2.6% 2.7% 3.2% 3.6%
Return on assets employed (excluding
profit/(loss) on disposal of fixed assets) 10.9% 15.3% 18.0% 21.2% 14.7%
Earnings per share – basic 20.9p 36.3p 30.5p 39.9p 87.5p
– adjusted 23.9p 33.3p 34.7p 39.9p 47.7p
Dividends per ordinary share 8.0p 9.5p 11.5p 13.5p 16.0p
Five Year Statement 55
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notice of Annual General Meeting
Notice is hereby given that the Ninety Seventh Annual General Meeting of Carr’s Milling Industries PLC will be held at the Crown Hotel, Wetheral,
Carlisle on Monday 9 January, 2006 at 11.30 a.m. for the transaction of the following business.
ORDINARY BUSINESS
1. To adopt the Report of the Directors and Financial Statements for the year ended 3 September 2005
2. To approve the Remuneration Committee’s Report for the year ended 3 September 2005
3. To declare a final dividend of 11.0p per share on the Ordinary Share Capital
4. To re-elect as a Director C N C Holmes who retires by rotation
5. To re-elect as a Director A G M Wannop who retires having been appointed to the Board since the last Annual General Meeting
6. To re-appoint PricewaterhouseCoopers LLP as Auditors and to authorise the Directors to fix their remuneration
SPECIAL BUSINESS
7. Disapplication of pre-emption rights
To resolve as a special resolution that the directors of the Company be and are hereby empowered pursuant to section 95 of the Companies
Act 1985 to allot equity securities (as defined in sub-section (2) of section 94 of the Companies Act 1985) pursuant to the authority conferred
on them for the purposes of section 80 of the Act by the special resolution of the Company passed on 6 January 2005 as if section 89(1) of
the said Act did not apply to such allotment provided that this power is limited to:
(i) the allotment of equity securities in connection with a rights issue in favour of the holders of ordinary shares in the capital of the Company
where the equity securities attributable to the interests of such holders are proportionate (as nearly as may be) to the respective number of
such ordinary shares held by them, subject only to such exclusions or other arrangements as the directors feel necessary or expedient to deal
with fractional entitlements or legal or practicable problems arising under the laws or the requirements of any recognised regulatory body; and
(ii) the allotment (otherwise than pursuant to sub-paragraph (i) above) of equity securities up to an aggregate nominal amount of £102,670, and
shall expire at the conclusion of the next Annual General Meeting of the Company or 15 months from the date hereof, whichever is the earlier,
save that the Company may, before such expiry, make an offer or agreement which would or might require equity securities to be allotted after
such expiry and the Board may allot equity securities in pursuance of such offer or agreement as if the power conferred hereby had not expired.
8. Company’s authority to purchase its own shares
To resolve as a special resolution that in accordance with Chapter VII of the Companies Act 1985, the Company be generally and
unconditionally authorised to make market purchases (as defined in section 163(3) of that Act) of its own ordinary shares of 25p each
(“ordinary shares”) on such terms and in such manner as the directors may, from time to time, determine provided that:
(i) the maximum number of ordinary shares hereby authorised to be purchased is 821,358;
(ii) the minimum price which may be paid for any ordinary share is 25 pence (excluding expenses);
(iii) the maximum price which may be paid for any ordinary share is an amount equal to 105 per cent of the average of the middle market
quotations for an ordinary share as derived from the London Stock Exchange Daily Official List for the five business days immediately
preceding the day on which the share is contracted to be purchased (excluding expenses); and
(iv) the authority hereby conferred shall expire at the conclusion of the Annual General Meeting of the Company to be held in 2007, if earlier, on 
8 April 2007, but a contract of purchase may be made before such expiry which will or may be executed wholly or partly thereafter and a
purchase of shares may be made in pursuance of any such contract.
9. Approved Executive Share Option Scheme 2006
THAT the board of directors (the “Directors”) be and are hereby authorised to:-
(i) establish the Carr’s Milling Industries Approved Executive Share Option Scheme 2006 (the “Approved Scheme”), a copy of the draft rules of
which has been produced to the meeting and initialled, for the purposes of identification only, by the Chairman and a summary of the main
provisions of which is set out in the appendix to the Chairman’s letter to shareholders dated 8 December 2005 (the “Appendix”); and
(ii) do all acts and things necessary or expedient to give effect to the Approved Scheme, including amending the Approved Scheme as may be
necessary to ensure that the Approved Scheme is approved by Her Majesty’s Revenue & Customs (“HMRC”).
10. Unapproved Executive Share Option Scheme 2006
THAT the Directors be and are hereby authorised to:-
(i) establish the Carr’s Milling Industries Unapproved Executive Share Option Scheme 2006 (the “Unapproved Scheme”), a copy of the draft rules
of which has been produced to the meeting and initialled, for the purposes of identification only, by the Chairman and a summary of the main
provisions of which is set out in the Appendix; and
(ii) do all acts and things necessary or expedient to give effect to the Unapproved Scheme. 56
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
Notice of Annual General Meeting
continued
11. Sharesave Scheme 2006
THAT the Directors be and are hereby authorised to:-
(i) establish the Carr’s Milling Industries Sharesave Scheme 2006 (the “Sharesave Scheme”), a copy of the draft rules of which has been
produced to the meeting and initialled, for the purposes of identification only, by the Chairman and a summary of the main provisions of which
is set out in the Appendix; and
(ii) do all acts and things necessary or expedient to give effect to the Sharesave Scheme, including amending the Sharesave Scheme as may be
necessary to ensure that the Sharesave Scheme is approved by HMRC.
12. Deferred Bonus Scheme 2006
THAT the Directors be and are hereby authorised to:-
(i) establish the Carr’s Milling Industries Deferred Bonus Scheme 2006 (the “Deferred Bonus Scheme”), a copy of the draft rules of which has
been produced to the meeting and initialled, for the purposes of identification only, by the Chairman and a summary of the main provisions of
which is set out in the Appendix; and
(ii) do all acts and things necessary or expedient to give effect to the Deferred Bonus Scheme.
Stanwix By Order of the Board
Carlisle CA3 9BA Ronald C. Wood
21 November 2005 Secretary
There will be available for inspection at the registered office of the Company during normal business hours from the date of this notice until the date 
of the Annual General Meeting:
(a) register of directors’ interests
(b) copies of all contracts of service relating to directors employed by the Company
(b) terms of reference for committees
These documents will also be available for inspection during the Annual General Meeting and for at least fifteen minutes before it begins. growing
CARR’S MILLING INDUSTRIES
ACTIVITIES ARE FOCUSSED ON
AGRICULTURE, FOOD AND
ENGINEERING WITH INCREASED
ANNUAL SALES OF
£1 92. 1m
01 Financial Highlights
02 Chairman’s Statement
04 Chief Executive’s Review
08 Board of Directors
08 Registered Office and Advisers
09 Directors’ Report
12 Corporate Governance
15 Independent Auditors’ Report
16 Directors’ Remuneration Report
20 Consolidated Profit and Loss Account
21 Statement of Group Total Recognised
Gains and Losses
21 Note of Group Historical Cost Profits
and Losses
22 Consolidated Balance Sheet
23 Company Balance Sheet
24 Consolidated Cash Flow Statement
25 Statement of Accounting Policies
27 Notes to the Financial Statements
54 Five Year Statement
55 Notice of Annual General Meeting
IBC Directory of Operations
2005 2004
£’000 £’000
Group turnover 192,124 155,749
Group operating profit 6,816 5,036
Profit before tax and exceptional items 6,141 5,127
Profit before tax 9,016 5,127
Net cash inflow from operating activities 6,644 6,256
Net debt 14,915 5,758
Group capital employed 31,271 25,310
Earnings per share 
Basic 87.5p 39.9p
Adjusted 47.7p 39.9p
Dividends
Interim paid 5.0p 4.5p
Final proposed 11.0p 9.0p
Total 16.0p 13.5p
2005:
Designed and produced by corporateprm, Edinburgh and London.  www.corporateprm.co.uk
Directory of Operations
Carr’s Milling Industries PLC
Old Croft, Stanwix, Carlisle,
Cumbria CA3 9BA
Tel: 01228 554600
Fax: 01228 554601
Website: www.carrs-milling.com
Animal Feed Supplements Inc
East Highway 212, 
PO Box 188, Belle Fourche, 
South Dakota 57717 USA
Tel: 00 1 605 892 3421
Fax: 00 1 605 892 3473
Animal Feed Supplements Inc
PO Box 105, 
101 Roanoke Avenue, Poteau,
Oklahoma 74953 USA
Tel: 00 1 918 647 8133
Fax: 00 1 918 647 7318
Caltech
Solway Mills, Silloth, Wigton,
Cumbria CA7 4AJ
Tel: 016973 32592
Fax: 016973 32339
Carrs Billington Agriculture
(Operations)*
Parkhill Road, 
Kingstown Industrial Estate,
Carlisle CA3 0EX
Tel: 01228 529 021
Fax: 01228 554 397
Carrs Billington Agriculture
(Operations)*
Lansil Way, Lancaster LA1 3QY
Tel: 01524 597 200
Fax: 01524 597 219
Carrs Billington Agriculture
(Operations)*
High Mill, Langwathby, Penrith, 
Cumbria CA10 1NB
Tel: 01768 889 800
Fax: 01768 889 807
Carrs Billington Agriculture
(Operations)*
Cold Meece, Stone, 
Staffordshire ST15 0QW
Tel: 01785 760 535
Fax: 01785 760 888
Carrs Billington Agriculture
(Operations)*
Powhill, Kirkbride, 
Cumbria CA5 5AJ
Tel: 01697 352 229
Fax: 01697 352 248
Carrs Billington Agriculture
(Operations)* 
Uredale Mill, Askrigg, Leyburn, 
North Yorkshire DL8 7HZ
Tel: 01969 650 229
Fax: 01969 650 770
Carrs Fertilisers, Invergordon
Inverbreakie Industrial Estate,
Invergordon, Ross-shire IV18 0QN
Tel: 01349 853 745
Fax: 01349 854 066
Carrs Fertilisers, Montrose
River Street, Montrose, 
Angus DD10 9RT
Tel: 01674 678 400
Fax: 01674 671 318
Carrs Fertilisers, Silloth
The Wath, Silloth, Wigton,
Cumbria CA7 4PH
Tel: 016973 32333
Fax: 016973 32279
Carrs Billington Agriculture
(Sales), Annan
25 High Street, Annan,
Dumfriesshire DG12 6AE
Tel: 01461 202 772
Fax: 01461 202 712
Carrs Billington Agriculture
(Sales), Barnard Castle
Montalbo Road, Barnard Castle,
Co Durham DL12 8ED
Tel: 01833 637 537
Fax: 01833 638 010
Carrs Billington Agriculture
(Sales), Buchlyvie
Main Street, Buchlyvie, 
Stirling FK8 3NQ
Tel & Fax: 01360 850 372
Carrs Billington Agriculture
(Sales), Carlisle
Montgomery Way, Rosehill
Estate, Carlisle CA1 2UY
Tel: 01228 520 212
Fax: 01228 512 572
Carrs Billington Agriculture
(Sales), Cockermouth
Unit 5, Lakeland Agricultural
Centre, Cockermouth CA13 0QQ
Tel: 01900 824 105
Fax: 01900 826 860
Carrs Billington Agriculture
(Sales), Hexham
Tyne Mills Industrial Estate,
Hexham, 
Northumberland NE46 1XL
Tel: 01434 605 371
Fax: 01434 608 938
Carrs Billington Agriculture
(Sales), Milnathort
Stirling Road, Milnathort, 
Kinross KY13 9UZ
Tel: 01577 862 381
Fax: 01577 863 057
Carrs Billington Agriculture
(Sales), Morpeth
20c Coopies Lane Industrial
Estate, Morpeth, 
Northumberland NE61 6JN
Tel: 01670 503 930
Fax: 01670 504 404
Carrs Billington Agriculture
(Sales), Penrith
Haweswater Road, 
Penrith Industrial Estate, Penrith,
Cumbria CA11 9EH
Tel: 01768 862 160
Fax: 01768 899 345
Carrs Billington Agriculture
(Sales), Perth
Highland House, 
St Catherine’s Road, 
Perth PH1 5YA
Tel & Fax: 01738 643 022
Carrs Billington Agriculture
(Sales), Brock
Brockholes Way, 
Claughton Trading Estate,
Lancaster Old Road,
Claughton on Brock, 
Preston PR3 0PZ
Tel: 01995 643 200
Fax: 01995 643 220
Carrs Billington Agriculture
(Sales), Gisburn
Pendle Mill, Mill Lane, Gisburn,
Clitheroe, Lancashire BB7 4ES
Tel & Fax: 01200 445 491
Carrs Billington Agriculture
(Sales), Hawes
Burtersett Road, Hawes, 
North Yorkshire DL8 3NP
Tel: 01969 667 334
Fax: 01969 667 335 
Carrs Billington Agriculture
(Sales), Leek
Macclesfield Road, Leek,
Staffordshire ST13 8NR
Tel & Fax: 01538 383 277
Wallace Oils, Carlisle
Stephenson Industrial Estate,
Willowholme, Carlisle,
Cumbria CA2 5RN
Tel: 01228 534 342
Fax: 01228 590 820
Wallace Oils, Dumfries
Heath Hall, Dumfries,
Dumfriesshire DG1 3NX
Tel: 01387 250 525
Fax: 01387 250 656
Wallace Oils, Stranraer
Droughduil, Dunragit,
Stranraer DG9 8QA
Tel & fax: 01581 400 356
Bendalls
Brunthill Road,
Kingstown Industrial Estate,
Carlisle CA3 0EH
Tel: 01228 526 246
Fax: 01228 525 634
R Hind
Kingstown Broadway, 
Kingstown Industrial Estate,
Carlisle CA3 0HA
Tel: 01228 523 647
Fax: 01228 512 712
Carrs MSM
Unit 1 Spitfire Way,
Hunts Rise,
South Marston Park,
Swindon, Wiltshire SN3 4TX
Tel: 01793 824 891
Fax: 01793 824 894
Carrs Flour
Solway Mills, Silloth, Wigton,
Cumbria CA7 4AJ
Tel: 016973 31661
Fax: 016973 32543
Greens Flour
Station Road, Maldon, 
Essex CM9 4LQ
Tel: 01621 852 696
Fax: 01621 854 525
Hutchisons Flour
East Bridge, Kirkcaldy, 
Fife KY1 2SR
Tel: 01592 267 191
Fax: 01592 641 805
John Stronach
Solway Mills, Silloth, Wigton,
Cumbria CA7 4AJ
Tel: 016973 31456
Fax: 016973 32808
B&A Travel
18 Main Street, Beith, 
Ayrshire KA15 2AA
Tel: 01505 504 547
Fax: 01505 504 812
* associate company Carr’s Milling Industries PLC
Old Croft, Stanwix
Carlisle CA3 9BA
www.carrs-milling.com
Carr’s Milling Industries PLC
Annual Report & Accounts 2005
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Carr’s Milling Industries PLC Annual Report & Accounts 2005