Half Yearly Report

CRAWSHAW GROUP PLC

Interim Results

Crawshaw Group PLC (the "Company"), the meat focused retailer, today reports its interim results for the 6 months ended 31 July 2011.

Overall sales for the first half remained level at £9.4m (2010 : £9.4m), however LFL sales were down 4% as compared to the same period the previous year. Incremental sales were generated from our mobile unit sited at various local markets and from opening a new store in Derby in February, 2011.

Underlying retail sales were very disappointing reflecting difficult trading conditions on the high street.

Gross margin remained stable at £4.1m (2010 : £4.1m) however retail margins fell slightly to 43.5% (2010 : 44.1%) in the 6 months due to lower margins in the early part of the year. Margins in the second quarter improved by 1 percentage point following a price increase in April.

Cash generated from operating activities before movements in working capital in the period was £0.3m (2010 £0.5m). This was offset by seasonal working capital movements of £0.5m, net capital expenditure of £0.1m and the repayment of loans of £0.4m,reducing net debt to £0.8m (2010 £1.0m). Our revolving credit facility has now been fully repaid and an overdraft facility is now available to the Group.

In February, we opened a new store in Derby. After a promising start, performance to date has been below expectations for the same reasons our sales overall have been disappointing. In April, we sold our market location in Doncaster to another trader. Markets are not a core element of our business and it made commercial sense to sell at this time.

Since the half year end like for like sales have continued to decline. In the 8 weeks since the half year end, LFL sales were down 10%. The retail margin has, however, responded well to the various initiatives we have implemented, rising by more than 2 percentage points in the same period.

The retail climate is particularly challenging, and is likely to remain so for the foreseeable future - rising meat prices coupled with reduced disposable income continue to have a negative effect on sales.

Our performance is clearly most unsatisfactory, and, further to my update in June, we have been taking a number of steps designed to improve sales in the current market.

Some months ago we undertook a detailed review of our product offer and customer habits, taking input from customer focus groups and the data available to us.

We were greatly encouraged by the very high customer loyalty on the back of our proposition of excellent quality and value for money. The data showed footfall to be consistently high across the estate, but that average spend is very low at around £4. We considered there to be an opportunity to sell add on lines to our existing customers, and so increase the average spend.

Currently our narrow product range results in an inefficient use of space in store, but does give us the opportunity to easily introduce new lines within the current store format.

Customers indicated that they would enthusiastically welcome the introduction of a broadened range of "home style" products, such as desserts and side dishes. We believe this represents an opportunity on both the hot and fresh side of our retail business.

We have therefore recruited resource to construct such a range. A small initial trial has proved successful and we will start a larger trial shortly.

The new range consists of delicious home style products, many produced in store, to complement our meat business. Specific product lines include oven ready, side dishes and desserts. These ranges will be branded "Crawshaw Kitchen Classics" giving the opportunity to build a sub brand in its own right.

We have also recently recruited a marketing / category manager who will provide experience in this important aspect of driving forward our offer.

We are determined to reverse the decline in sales and to return once again to profitable growth.

Richard Rose

Chairman

3rd October, 2011

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 1. BASIS OF PREPARATION

REPORTING ENTITY

Crawshaw Group Plc (the "Company") is a company incorporated and domiciled in the UK.

The condensed consolidated interim financial statements of the Company as at and for the six months ended 31 July 2011 comprise the Company and its subsidiaries (together referred to as the "Group") and equity account the Group's interest in jointly controlled entities.

BASIS OF PREPARATION

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting', as adopted by the EU and do not include all of the information required for full annual financial statements.

The comparative figures for the financial year ended 31 January 2011 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.

The condensed consolidated interim financial statements have not been audited but have been reviewed by the Company's auditors. Their review report for the 6 month period ended 31 July 2011 is set out at the end of this announcement.

These condensed consolidated interim financial statements were approved by the Board of Directors on 3rd October 2011.

SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 January 2011, as described in those annual financial statements, which were prepared in accordance with IFRS as adopted by the EU.

SIGNIFICANT JUDGEMENTS, KEY ASSUMPTIONS AND ESTIMATION UNCERTAINTY

The preparation of the condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and other factors that are believed to be reasonable at the time the estimate is made. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended 31 January 2011.

GOING CONCERN

The Group has in place borrowing facilities up to a maximum of £1,340,000. They consist of a mortgage of £840,000 and a working capital overdraft facility of £500,000. These facilities are not subject to financial performance covenants, however, overdraft facilities can be withdrawn by the bank at any time.

The overdraft facility is open ended but renegotiated on an annual basis, the next review being due in April 2012. 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 have sufficient cash to meet its obligations and to pursue its existing strategy. 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 2011 (together referred to as the 'Group').

 2. REVENUE

 The directors have undertaken a review of the Group's continuing operations and their associated business risks. 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.

4. 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 (31/1/11: 57,818,801) (31/07/10: 57,818,801).

 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 potentially dilutive ordinary shares from the start of the year,giving a figure of 57,818,801 (31/1/11:57,818,801) (31/7/10: 58,922,623).

 7. 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.

INDEPENDENT REVIEW REPORT TO CRAWSHAW GROUP PLC

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly report for the six months ended 31 July 2011 which comprises the Condensed Consolidated Statement of Comprehensive Income, Condensed Consolidated Balance Sheet, Condensed Consolidated Statement of Changes in Shareholders' Equity, Condensed Consolidated Cash Flow Statement and the related explanatory notes. We have read the other information contained in the half-yearly report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.

Directors' responsibilities

The half-yearly report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly report in accordance with the AIM Rules.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly report for the six months ended 31 July 2011 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the AIM Rules.

Jeremy Gledhill

for and on behalf of KPMG Audit Plc

Chartered Accountants

1 The Embankment

Neville Street

Leeds

LS1 4DW

3rd October 2011

A copy of the half-yearly report will be sent to shareholders on 10 October 2011 and will also be available from 11 October 2011 from the Company's registered office: Unit 16 Bradmarsh Business Park, Bow Bridge Close, Rotherham, S60 1BY and from the Company's website www.crawshawgroupplc.com.

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