Half Yearly Report

CRAWSHAWGROUP PLC

Interim Results

6 months to 31 July 2014

As I reported at the end of June trading remains strong and this performance continues to be widely spread across our store portfolio. LFL sales are up 12% in the half year to 31st July, 2014 as compared to the same period the previous year (2013: 5%). In addition, total sales for the first half have increased to £11.8m (2013: £9.8m), with £0.5m generated from new stores and more than £0.2m from our premium sector shop acquired in May.

Gross profit has increased by 21% to £5.2m (2013: £4.3m) and I am encouraged that there have been further improvements in the gross margin percentage to 44.1% (2013: 43.9%) in the 6 months to 31st July.

Whilst actual overhead expenditure has increased year over year to £4.5m (2013: £4.0m), this is directly related to the growth in LFL and non LFL sales via new stores. As a percentage of total sales overhead expenditure has fallen to 38.3% (2013: 40.9%). 

EBITDA increased to £0.9m (2013: £0.5m) and profit before tax more than doubled to £0.7m (2013: £0.3m). Earnings per share rose to 0.874p (2013: 0.473p).

In the 6 months to 31st July 2014 the cash generated from operating activities after movements in working capital was £1.0m (2013: £0.5m). The funds generated have been spent on the purchase of East Yorkshire Beef Ltd £0.25m, operational capital expenditure of £0.4m (including the fit out of out of our new store in Sheffield and charges associated with the fit out of our new head office/factory location) added to the payment of our dividend £0.25m and a partial mortgage repayment of £0.1m.

Towards the end of the period we completed a share placing, generating net cash of £8.6m. Our cash balance at the end of July 2014 was £10.1m. Just after the balance sheet date, in order to maximise cash returns, our outstanding mortgage balance of £0.36m was repaid. The business is now trading debt free.

Looking towards the second half of the year our core business is performing in line with expectations with like for like sales for the first 8 weeks of the second half are up 5% and gross margin higher than our first half performance. In July 2014 we closed our small market site in Sheffield now that our high street store, almost opposite, is trading well and we expect to open our new factory shop in Hellaby at the beginning of November, being slightly behind our original timetable. The Board are very excited about our accelerated store opening programme and we are starting to build our resource and capability so that we are in a position to deliver opportunities through 2015. 

We are delighted to announce an interim dividend, of 0.10p per share, (2013: 0.09p). The Board believes the strength of performance of the core business, in isolation, warrants an increase in the dividend without utilising the monies raised for expansion. The dividend will be paid on 31st October, 2014 to shareholders on the register on 10th October, 2014. The ex-dividend date will be 9th October, 2014.

Richard Rose

Chairman

30 September, 2014

Enquiries:

Crawshaw Group plc 01709 369 602

Lynda Sherratt

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 2014 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 2014 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.

Thecondensed 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 2014 is set out on pages 12 & 13.

Thesecondensed consolidated interim financial statements were approved by the Board of Directors on 30th September, 2014.

Significant Accounting Policies

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 January 2014, 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 2014.

Going Concern

The Group meets its day to day working capital requirements through cash generated from operations. Current cash headroom is £9.75m.

The Directors have reviewed 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 2014 (together referred to as the 'Group').

EBITDA

This is defined as pre tax profit before interest, taxation, depreciation and amortization.

 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.

 7. RELATED PARTY TRANSACTIONS

 Crawshaw Butchers Limited, a subsidiary of Crawshaw Group Plc, 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 2014 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 PracticesBoard 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 issubstantially 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 2014 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 LLP

Chartered Accountants

1 The Embankment

Neville Street

Leeds

LS1 4DW

30th September, 2014

Directors and Advisors

Directors

R S Rose

K P Boyd

L J Sherratt

C B Crawshaw

M Naughton-Rumbo

Company Secretary

L J Sherratt

Company Number

04755803

Registered Office

Unit 16

Bradmarsh Business Park

Bow Bridge Close

Rotherham

South Yorkshire

S60 1BY

Auditors

KPMG LLP

1 The Embankment

Neville Street

Leeds

LS1 4DW

Bankers

Royal Bank of Scotland plc

Yorkshire Corporate Banking

3rd Floor

2 Whitehall Quay

Leeds

LS1 4HR

Nominated Adviser and Broker

W H Ireland Limited

11 St James Square

Manchester

M2 6WH

Registrars and Receiving Agents

Capita RegistrarsThe Registry34 Beckenham RoadBeckenhamKentBR3 4TU

Solicitors

Atticus Legal

Castlefield House

Liverpool Road

Castlefield

Manchester

M3 4SB