Half Yearly Report

Overall sales for the first half reduced by less than 1% to £9.4m (2009 : £9.5m), whilst operating profit increased to £0.3m (2009: £0.0m) largely as a result of improving gross margins and careful cost control.

Towards the end of the period under review we began to see sales trends improving significantly. We started the period continuing the trend of the previous year, with like for like sales falling by 8%. However, a much improved sales performance towards the end of the first half has resulted in the cumulative trend improving, such that total sales over the full 6 months under review fell by just 1%.

We continue to drive customer loyalty which remains very high. Customers remain attracted by the combination of quality, choice, and value. Many of our newer stores have a higher proportion of hot cooked food and this focus is proving very successful.

Net debt at £1.0m has increased marginally from £0.9m at the year end. This is purely down to the timing of working capital movements in the first half of the year versus the second half due to the Christmas trading period. Cash generated from operating activities before movements in working capital in the period was £0.5m (2009 : £0.2m). This is more than offset by working capital movements £0.5m and capital expenditure £0.1m. We expect net debt will reduce further over the next 12 months, even as we continue to expand, as we remain very cash generative.

As previously reported, having opened seven new stores during the last two years we have gained a great deal of experience regarding the drivers of success. The larger format store type is proving particularly successful, not only measured by their initial performance, but also by their good continued growth. Accordingly it is this format that we are keen to roll out. A new site has recently been acquired that we plan to open as soon as possible.

Since the half year end, sales have continued to show positive like-for-like growth and I am therefore confident about the outlook for the full year and beyond.

Richard Rose

Chairman

5 October 2010

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PREPARATION

BASIS OF PREPARATION

This unaudited interim financial information is for the 6 month period ended 31 July 2010 and is prepared in accordance with IAS 34 'Interim Financial Reporting', as adopted by the EU and under the historical cost convention.

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 January 2010, as described in those annual financial statements, which were prepared in accordance with IFRS as adopted by the EU.

INTERIM FINANCIAL INFORMATION

The interim financial information for the 6 month period ended 31 July 2010 has not been audited but has been reviewed by the auditors.

The comparative figures for the financial year ended 31 January 2010 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

SIGNIFICANT JUDGEMENTS, KEY ASSUMPTIONS AND ESTIMATION UNCERTAINTY

The preparation of interim financial statements in conformity with adopted IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities. Actual results may differ from these estimates.

GOING CONCERN

The Group has in place borrowing facilities up to a maximum of £1,840,000. These facilities are subject to financial performance covenants. They consist of a mortgage of £840,000 and a revolving credit facility of £1,000,000.

The revolving credit facility is due for renewal on 30 June 2011. The Directors have reviewed the banking facilities available to the Group plus the profit and cash forecasts of the Group with appropriate sensitivities around operational performance. The Directors have concluded that the Group will (i) meet the financial performance covenants to June 2011 and (ii) thereafter, be in a position to either pay back the revolving credit facility in full and negotiate a significantly reduced working capital facility or renew the revolving credit facility for use as and when required. Crawshaw Group PLC will open negotiations with its bank in due course and has not at this stage sought any written commitment. However, the Directors are not aware of any indications that facilities will not be made available at that time. Accordingly the Directors consider that these statements should be prepared on a going concern basis.

BASIS OF CONSOLIDATION

The consolidated financial information includes the financial information of the company and its subsidiary undertakings made up to 31 July 2010 (together referred to as the 'Group').

2. REVENUE

The directors have undertaken a review of the Group's continuing operations and its associated business risks and consider that the continuing operations should be reported as a single business segment. The directors consider that the continuing operations represent one product offering with similar risks and rewards and should be reported as a single business segment in line with the Group's internal reporting framework. All revenue received during the period was received from customers within the United Kingdom.

3. EXCEPTIONAL ITEMS

4. INCOME TAX EXPENSE

5. EARNINGS PER ORDINARY SHARE

Basic earnings per ordinary share is calculated by dividing the earnings attributable to the ordinary shareholders by the weighted average number of ordinary shares outstanding during the period of 57,818,801 (31/1/10: 55,686,461) (31/07/09: 53,518,778).

Diluted EPS is calculated by dividing the profit for the year attributable to the ordinary shareholders by the weighted average number of ordinary shares in issue adjusted to assume conversion of all options from the start of the year, giving a figure of 58,922,623.

(31/1/10:56,790,283)

6. CAPITAL AND RESERVES

Share Issues

On 10 February 2009 the directors and key employees of the Company converted £1,000,000 loan notes into 5,882,353 ordinary shares increasing the issued share capital by £294,118.

On 19 June 2009 ISIS Equity Partners LLP subscribed for 5,256,254 ordinary shares at 17p per share raising £893,500 to support the Company's store rollout strategy.

7. SHARE CAPITAL

8. RELATED PARTY TRANSACTIONS

Crawshaw Butchers Limited, a subsidiary of Crawshaw Holdings Limited, holds a 50% share in a partnership which trades under the name of RGV Refrigeration. The operations of the partnership comprise of the maintenance and repair of refrigeration machinery for a variety of customers.

A copy of the full interim report will be sent to all shareholders in the week commencing 11 October 2010 and will also be available from the company's registered office : Unit 16 Bradmarsh Business Park, Bow Bridge Close, Rotherham, S60 1BY. In addition, a copy will also be published on the Company's website www.crawshawgroupplc.com.

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