REG - Cropper(James) PLC - Half-year Report
15/11/2022 07:01
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RNS Number : 3584G Cropper(James) PLC 15 November 2022
James Cropper plc ('CRPR', the 'Company' or the 'Group'), the leading advanced
materials and paper products group is pleased to announce its
Half Year Results to 24 September 2022
"Decisive actions taken combined with the ongoing investments…has
strengthened our long term growth prospects"
Half-year to 24 September 2022 Half-year to 25 September 2021 Full-year to 26 March 2022
£m £m £m
Revenue 61.6 50.0 104.9
Adjusted operating profit * 0.5 2.5 4.6
Operating (loss) / profit (0.2) 2.3 3.7
Adjusted profit before tax * (0.0) 2.3 4.0
Impact of IAS 19 (0.3) (0.4) (0.9)
Impact of exceptional items (0.5) 0.0 (0.3)
(Loss) / profit before tax (0.8) 1.9 2.8
(Loss) / earnings per share - basic and diluted (9.2)p 16.2p 14.2p
Dividend per share declared 2.0p 2.5p 10.0p
Net borrowings (12.2) (9.6) (12.6)
Equity shareholders' funds 34.3 32.3 34.8
Gearing % - before IAS 19 deficit 28% 21% 28%
Gearing % - after IAS 19 deficit 35% 30% 36%
Capital expenditure 2.4 2.9 6.8
* excludes the impact of IAS 19 and exceptional items (per note
8)
Headlines
· Group revenues for the half year were up on the prior year (H1
2021) by 23%, driven by new customer wins and existing client growth
· Demand remains strong, with revenue growth across each of the
three divisions
· Adjusted PBT (excluding IAS 19 impact and exceptional items) at
£nil due to energy inflation and raw material price increases
· Exceptional cost provision of £0.5m for contingent consideration
as TFP Hydrogen projections increase
· Cost of living payments totalling £0.7m paid to support employee
health and wellbeing
· Interim Dividend declared at 2.0p per share (H1 2021: 2.5p)
· Expectations for FY23 have been reduced with an adjusted PBT of
£2.0m against previous market expectations of £5.4m, as announced on 31
October 2022
· Capital investments in energy saving improvements to paper
machines delivering 5-7% annualised reduction in site energy consumption
· Decarbonisation project investment moving to planning application
phase
· Steve Adams appointed as Chief Executive Officer on 10 August
2022
Half-year to 24 September 2022 Half-year to 25 September 2021 Full-year to 26 March 2022
Summary of results £'000 £'000 £'000
Revenue 61,583 50,039 104,922
Adjusted operating profit* 453 2,474 4,585
Operating (loss) / profit (213) 2,310 3,684
Adjusted (loss) / profit before tax * (13) 2,263 4,045
Impact of IAS19 (304) (350) (914)
Exceptional items (note 8) (540) - (354)
(Loss) / profit before tax (857) 1,913 2,777
* excludes the impact of IAS 19 and exceptional items (per note 8)
Half-year to 24 September 2022 Half-year to 25 September 2021 Full-year to 26 March 2022
£'000 £'000 £'000
Revenue
Paper division 42,046 34,143 70,350
Colourform division 2,105 1,942 3,363
Technical Fibre Products division 17,432 13,954 31,209
61,583 50,039 104,922
Adjusted operating profit * 453 2,474 4,585
Adjusted net interest (466) (211) (540)
Adjusted (loss) / profit before tax * (13) 2,263 4,045
IAS19 pension adjustments
Net current service charge against operating profits (126) (164) (547)
Finance costs charged against interest (178) (186) (367)
(304) (350) (914)
Exceptional items (note 8) (540) - (354)
(Loss) / profit before tax (857) 1,913 2,777
* excludes the impact of IAS 19 and exceptional items (per note 8)
Balance sheet summary Half-year to 24 September 2022 Half-year to 25 September 2021 Full-year to 26 March 2022
£'000 £'000 £'000
Non-pension assets - excluding cash 85,113 74,213 81,846
Non-pension liabilities - excluding borrowings (28,986) (19,482) (24,613)
56,127 54,731 57,233
Net IAS19 pension deficit (after deferred tax) (9,677) (12,835) (9,847)
46,450 41,896 47,386
Net borrowings (12,156) (9,637) (12,572)
34,294 32,259 34,814
Equity shareholders' funds
Gearing % - before IAS19 deficit 28% 21% 28%
Gearing % - after IAS19 deficit 35% 30% 36%
Capital expenditure 2,360 2,877 6,761
Mark Cropper, Chairman, commented: "While short term profitability has been
impacted, the decisive actions taken combined with the ongoing investments
across the Group has strengthened our long term growth prospects and we fully
expect to return to profitability in the next six months."
"This Company is built on a strong heritage of innovation and a relentless
focus on quality, which places us in a very strong position as we evolve and
create a sustainable future."
James Cropper Group ‐ Purpose: Pioneering Materials to Safeguard our Future
and Values: Forward Thinking, Responsible and Caring.
Enquiries:
Steve Adams, Chief Executive Officer Robert Finlay, Henry Willcocks, John More
Isabelle Maddock, Chief Financial Officer Shore Capital
James Cropper PLC (AIM
:CRPR.L)
Telephone: +44 (0) 1539 722002 Telephone: +44 (0) 20 7601 6100
www.jamescropper.com (http://www.jamescropper.com)
Media Enquires:
Anna Geffert, MD
HERA Communication Strategies
anna.geffert@heracomms.com (mailto:anna.geffert@heracomms.com) / +44 (0) 7773
046 337
Dear Shareholders
The last six months have presented challenges, but I am pleased to report that
we have responded well and Group revenues for the half year to 24 September
2022 have increased 23% on the prior year (H1 2021), with all three divisions
seeing a rise in demand. The growing cost of energy (increasing 148% on the
comparative period) and raw material inflationary headwinds (rising 20% on the
comparative period) have resulted in sudden £multi‐million cost increases
across the Company, which have negatively impacted profits. As a result, the
adjusted profit before tax (excluding exceptional costs and the impact of IAS
19) is £nil for the first half of the current financial year, compared to
£2.3m in the prior comparative period.
The Group responded to the impact of these sudden rises with a combination of
energy surcharges and price increases but energy prices again spiked, from
late July and again in August, with the surcharges unable to keep pace. In the
second half of the year, the Group has implemented aggressive pricing actions
and, eased by the recently announced Government support on energy prices, the
surcharges will remain in place until no longer necessary. Each operating
division is projecting volume growth, order books are full and the Company is
focused on a range of enabling actions to build a solid foundation for
continued future growth and a return to profitability.
Taking into consideration the current unprecedented macro‐economic
environment and the cost mitigation actions put in place, management
expectations for the FY23 have been reduced with a year‐end adjusted PBT of
£2.0m against previous market expectations of adjusted PBT of £5.4m.
James Cropper Paper ("Paper")
The Paper division saw a 23% increase in revenue growth on the previous half
year, with new contract wins in luxury packaging and strong customer advocacy
with existing brands. As the Group's most energy intensive division, it has
been hit the hardest by the current economic climate and in response the
division is accelerating realignment of its customer and product portfolio,
driving revenue to the more profitable core luxury packaging business. The
embossing and varnishing capacity in the Paper division, which provides much
needed additional capacity and capability to meet demand in the luxury
packaging market, is now installed and commissioned. The swift implementation
of customer price rises and increased energy and freight surcharges will
mitigate the rising costs seen in the first half of the financial year.
Colourform™ ("Colourform")
Colourform continues to grow, with an 8% half year revenue increase on the
comparative period. The business is 100% powered by green electricity and is
continuing to disrupt the luxury Packaging sector with award winning
innovative and sustainable outer packaging. The design credentials earn the
highest recognition - Winners of The Dieline Awards and two D & AD awards
- and as part of the strategy to deliver aesthetic beauty alongside
functionality, the business is currently exploring significant improvements in
design and product quality, as well as exploiting the existing synergies with
the luxury packaging focus in the Paper division.
Technical Fibre Products ("TFP")
TFP continues to perform well, with record sales and revenue growth up 25% on
the prior half year. TFP Hydrogen is performing ahead of expectations, with
applications continuing to drive the highest growth rates. The US electrolyser
coating capability is now operational, while the new non-woven coating line is
already supplying Global customers.
The sector has not been immune to raw material and energy inflation, which
continues to be a challenge, but this has been managed through passing price
increases directly to customers. The implementation of a dual sourcing
programme, which will increase supply chain resilience, is also progressing
well with the majority of critical raw materials identified and tested.
ESG
The rising cost of energy has placed renewed importance on our net zero and
decarbonisation programmes. I am pleased to report that energy saving
investments on paper machines are already delivering between 5-7% annualised
reduction in site energy consumption. The Company is also moving the
decarbonisation project investment to planning application and grant funding
is being sought to help accelerate implementation. We remain committed to
being operationally carbon neutral by 2030.
Pension
Overall, the combined funding position on an IAS19 measure for the combined
schemes has decreased over the six month period from a deficit of
£13.1million to a deficit of £12.9 million. The decrease has been driven by
significant increase in corporate bond yields offset by high inflation and an
increase in commutation factors on the works scheme.
Earnings per share and dividend
Basic and fully diluted (loss) / earnings per share decreased to (9.2) pence,
compared to 16.2 pence in the prior year comparative period.
The Board has declared an interim dividend of 2.0p per share (2021: 2.5p).
Directorship Change
The appointment of Steve Adams as CEO, as announced on 10 August 2022, creates
an opportunity for a division portfolio review, to ensure we deliver on our
short and long term goals as we enter a new phase of growth. As an existing
Executive Director of the Company and Managing Director of the James Cropper
Paper Division, Steve joined the Company in 2017 and is perfectly positioned
to oversee this work, which is already underway.
Change of Auditor
The Company is pleased to announce that, following a thorough competitive
tender process, it has appointed Grant Thornton UK LLP ("Grant Thornton") as
auditor to the Company with immediate effect.
Grant Thornton replaces BDO LLP which has formally resigned as the Company's
auditor and has confirmed to the Company that, in accordance with Section 519
of the Companies Act 2006, there are no circumstances in connection with its
resignation which it considers need to be brought to the attention of the
Company's members or creditors.
Grant Thornton will conduct the audit of the Company's financial statements
for the 53 week period ending 1 April 2023 and a proposal to re-appoint Grant
Thornton as auditors of the Company will be subject to the approval of
shareholders at the next Annual General Meeting of the Company to be held in
2023.
Outlook
With the new electrolyser coating line in the US operational and the new
non-woven coating line already servicing clients, TFP is poised for continued
growth, as the energy crisis continues to fuel the hydrogen market expansion.
Paper sales remain strong and the outlook is positive, with the customer price
increases and energy and freight surcharges mitigating the external cost
environment. The embossing and varnishing capacity has been commissioned,
supporting a portfolio realignment and driving revenues to the profitable core
business of luxury, sustainable packaging. This focus provides a clear and
natural synergy with Colourform and we are exploring how we can exploit and
capitalise on those synergies, to promote continued future growth and
resilience across the Group.
While short term profitability has been impacted, the decisive actions taken,
combined with the ongoing investments across the Group, has strengthened our
long term growth prospects and we fully expect to return to profitability in
the next six months. This Company is built on a strong heritage of innovation
and a relentless focus on quality, which places us in a very strong position
as we evolve and create a sustainable future.
Mark Cropper
Chairman
Chief Executive's Review
Our financial results for the period underline the strong customer demand and
loyalty across each of the Company divisions, as we continue to navigate a
challenging economic climate. The unprecedented inflation and energy costs
have impacted overall profits in the short term, and while our long term
growth and profitability remains very strong, this presents a natural
opportunity to review each of the divisions and their operations.
Within the Paper division, as well as the significant price increases
implemented to counter the impact of energy and raw materials costs increases,
the division is right-sizing its product portfolio around a smaller, more
profitable core, with luxury packaging at its centre. The division is also
looking at a more productive operating model and a re-alignment of its supply
chain organisation to drive end to end customer focus.
In Colourform there is now a concentrated effort on project pipeline
acceleration in target segments and continued research and development into
added-value capabilities such as novel embellishment techniques being scaled
up.
TFP is building the organisational capability for future growth, with a
continued strong focus on commercial and operational excellence. The hydrogen
market continues to be a major area of growth and therefore focus, with new
customer specifications gained in both GDL customers (non-woven) and
electrolyser customers (coating). As a result of the future projections for
TFP Hydrogen exceeding earlier expectations, additional provisions for
contingent consideration have been included.
We aim to build on our foundation of pioneering new solutions, market-leading
experience and expertise, long-term sustainable focus and a history of
know-how and stewardship.
Our priorities for the mid-term are to increase our focus on new customer
acquisition and drive disciplined, profitable growth. Delivering a step change
in execution through investment in more capable systems and processes is key
to improving response times to our customers.
The rejuvenation of our Technology & Innovation focus through our
Innovation Forum is seeking to identify new growth opportunities that sit
between our divisions and our pioneering efforts to decarbonise our operations
are at the heart of our sustainability goals.
We are investing in our talent and leadership community to help us build
modern business practices and ways of working that are efficient, flexible and
responsive.
Most importantly, we will build on the strong heritage of James Cropper to
position ourselves in a more meaningful way to our customers and the markets
we serve.
I am pleased to have been appointed as the Chief Executive Officer at this
exciting, but challenging time and remain committed to the work started by my
predecessor, Phil Wild, to drive continued sustainable growth and build
resilience within the Group.
Steve Adams
Chief Executive Officer
UN-AUDITED CONSOLIDATED INCOME STATEMENT
26 week period 26 week period 52 week period to 26 March 2022
to 24 September 2022 to 25 September 2021
£'000 £'000 £'000
Revenue 61,583 50,039 104,922
Provision for impairment (loss) / reversal (69) - 184
Other income 770 379 744
Changes in inventories 1,975 1,772 385
Raw materials and consumables used (23,359) (19,438) (39,577)
Energy costs (8,031) (3,231) (7,428)
Employee benefit costs (18,031) (15,088) (30,535)
Depreciation and amortisation (2,090) (1,975) (4,051)
Other expenses (12,961) (10,148) (20,960)
Operating (loss) / profit (213) 2,310 3,684
Interest payable and similar charges (644) (415) (924)
Interest receivable and similar income - 18 17
(Loss) / profit before taxation (857) 1,913 2,777
Taxation (26) (363) (1,419)
(Loss) / profit for the period (883) 1,550 1,358
(Loss) / earnings per share - basic and diluted (9.2)p 16.2p 14.2p
UN-AUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME COMPREHENSIVE INCOME
(Loss) / profit for the period (883) 1,550 1,358
Items that are or may be reclassified to profit or loss
Foreign currency translation 440 1 49
hedges - effective portion of changes in fair value 680 33 10
Pulp hedge fair value adjustment - 154 (501)
Foreign tax adjustment - - (13)
Items that will never be reclassified to profit or loss
Retirement benefit liabilities - actuarial (loss) / gain (66) 955 4,777
Deferred tax on actuarial loss / (gain) on retirement benefit liabilities 17 (239) (179)
Other comprehensive income for the period 1,071 904 4,143
Total comprehensive income for the period attributable to equity holders of
the Company
188 2,454 5,501
UN-AUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
24September 2022 25 September 2021 26 March 2022
£'000 £'000 £'000
Assets
Intangible assets 2,219 1,935 1,584
Goodwill 1,264 1,264 1,264
Property, plant and equipment 31,636 31,584 30,551
Right of use assets 7,528 4,219 7,358
Deferred tax assets 3,171 4,279 3,534
Total non-current assets 45,818 43,281 44,291
Inventories 19,638 17,807 17,593
Trade and other receivables 21,242 17,536 22,184
Provision for impairment (846) (901) (777)
Other financial assets 1,653 672 -
Cash and cash equivalents 14,147 7,357 7,750
Current tax assets 833 97 1,838
Total current assets 56,667 42,568 48,588
Total assets 102,485 85,849 92,879
Liabilities
Trade and other payables 24,864 17,061 20,936
Other financial liabilities 415 - 6
Loans and borrowings 1,697 8,548 1,595
Total current liabilities 26,976 25,609 22,537
Long-term borrowings 24,606 8,446 18,727
Retirement benefit liabilities 12,902 17,114 13,130
Contingent consideration on business acquisition 922 401 578
Deferred tax liabilities 2,785 2,020 3,093
Total non-current liabilities 41,215 27,981 35,528
Total liabilities 68,191 53,590 58,065
Equity
Share capital 2,389 2,389 2,389
Share premium 1,588 1,588 1,588
Translation reserve 993 505 553
Hedging reserve 1,202 655 -
Reserve for own shares (1,407) (1,151) (1,407)
Retained earnings 29,529 28,273 31,691
Total shareholders' equity 34,294 32,259 34,814
Total equity and liabilities 102,485 85,849 92,879
UN-AUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
26 week period to 24 September 2022 26 week period 52 week period
to 25 September 2021 to 26 March 2022
£'000 £'000 £'000
Cash flows from operating activities
Net (loss) / profit (883) 1,550 1,358
Adjustments for:
Tax 26 363 1,419
Depreciation and amortisation 2,090 1,975 4,051
Net IAS 19 pension adjustments within Statement of comprehensive income 304 350 914
Past service pension deficit payments (598) (717) (1,443)
Foreign exchange differences (125) (1) -
Loss on disposal of property, plant and equipment 22 - -
Net interest expense 464 220 909
Share based payments - (96) (107)
Changes in working capital:
(Increase) in inventories (1,953) (2,326) (2,103)
Decrease / (increase) in trade and other receivables 1,517 (1,571) (6,220)
Increase in trade and other payables 3,386 1,274 5,545
Tax received/ (paid) 1,057 - (972)
Net cash generated from operating activities 5,307 1,021 3,351
Cash flows from investing activities
Purchase of intangible assets (86) (21) (56)
Purchases of property, plant and equipment (2,274) (2,856) (6,705)
Net cash used in investing activities (2,360) (2,877) (6,761)
Cash flows from financing activities
Proceeds from issue of new loans 5,189 3,321 9,754
Repayment of borrowings (123) (324) (3,123)
Repayment of lease liabilities (674) (419) (1,170)
Interest received 1 18 17
Interest paid (291) (156) (709)
Distribution of own shares - - (256)
Dividends paid to shareholders (708) - (236)
Net cash generated in financing activities financingactactivitiesactivities 3,394 2,440 4,277
Net increase in cash and cash equivalents 6,341 584 867
Effect of exchange rate fluctuations on cash held 56 8 118
Net increase in cash and cash equivalents 6,397 592 985
Cash and cash equivalents at the start of the period 7,750 6,765 6,765
Cash and cash equivalents at the end of the period 14,147 7,357 7,750
Cash and cash equivalents consists of:
Cash at bank and in hand 14,147 7,357 7,750
UN-AUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share premium Translation Own shares Hedging Reserve Retained earnings
reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 26 March 2022 2,389 1,588 553 (1,407) - 31,691 34,814
Comprehensive (expense) for the period - - - - - (883) (883)
Total other comprehensive income - - 440 - 1,202 (571) 1,071
Dividends paid - - - - - (708) (708)
Total contributions by and distributions to owners of the Group - -
- - - (708) (708)
At 24 September 2022 2,389 1,588 993 (1,407) 1,202 29,529 34,294
At 27 March 2021 2,389 1,588 504 (1,151) 501 26,070 29,901
97
Comprehensive income for the period - - - - - 1,550 1,550
Total other comprehensive expense - - 1 - 154 749 904
Share based payment charge - - - - - (96) (96)
Total contributions by and distributions to owners of the Group -
- - - - (96) (96)
655
At 25 September 2021 2,389 1,588 505 (1,151) 28,273 32,259
NOTES TO THE CONDENSED CONSOLIDATED HALF YEAR STATEMENTS
1 BASIS OF PREPARATION
James Cropper Plc (the Company) is a public limited company incorporated and
domiciled in the United Kingdom and listed on the Alternative Investment
Market (AIM) market of the London Stock Exchange. The condensed consolidated
half year financial statements of the Company for the twenty six weeks ended
24 September 2022, which have not been audited or reviewed, comprise the
Company and its subsidiaries (together referred to as the Group).
Basis of preparation
The condensed consolidated financial statements for the 26 week periods ending
24 September 2022 and 25 September 2021 are unaudited and were approved by the
Directors on 14 November 2022. They do not constitute statutory accounts as
defined in s434 of the Companies Act 2006. The financial statements for the
year ended 26 March 2022 were prepared in accordance with UK adopted
international accounting standards and have been delivered to the Registrar of
Companies. The report of the auditor on those financial statements was
unqualified and did not draw attention to any matters by way of emphasis of
matter. The Group's financial statements consolidate the financial statements
of James Cropper Plc and its subsidiaries.
Applicable standards
These unaudited consolidated interim financial statements have been prepared
in accordance with international accounting standards as adopted by the UK,
under the historical cost convention. They have not been prepared in
accordance with IAs 34, the application of which is not required to the
interim financial statements of companies trading on the Alternative
Investment Market (AIM companies). The interim financial statements have been
prepared in accordance with the accounting policies applied in the preparation
of the Group's published consolidated financial statements for the 52 week
period ended 26 March 2022.
The consolidated financial statements of the Group for the 52 week period
ended 26 March 2022 are available upon request from the Company's registered
office: Burneside Mills, Kendal, Cumbria, LA9 6PZ or at www.jamescropper.com
(http://www.jamescropper.com) .
The half year financial information is presented in Sterling and all values
are rounded to the nearest thousand pounds (£'000) except where otherwise
indicated.
Going concern
The Directors, at the time of approving these interim statements, have a
reasonable expectation that the Group has adequate resources to continue in
operational existence for at least 12 months from this reporting date.
For the interim going concern review the Group has a 3 year plan against which
a number of scenarios assess headroom against facilities and impacts on bank
covenants, which showed adequate headroom and no covenant breaches.
Following this review the Directors are satisfied that the Company and the
Group have adequate resources to continue in operational existence for the
foreseeable future. Accordingly, they continue to adopt the going concern
basis in preparing the condensed consolidated financial statements.
Significant accounting policies
The accounting policies applied by the Group in these condensed consolidated
financial statements are the same as those applied by the Group in its
consolidated financial statements as at and for the 52 week period ended 26
March 2022.
2 Accounting estimates and judgements
The preparation of half year financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expenses. Actual results may differ from these estimates.
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 52 week period ended 26 March 2022, including the estimated future
projections for TFP Hydrogen Ltd resulting in higher contingent consideration
provisions.
3 Risks and uncertainties
The principal risks and uncertainties which may have the largest impact on
performance in the second half of the year are the same as disclosed in the
2022 Annual Report on pages 24-27. The principal risks set out in the 2022
Annual Report were:
Pandemic risk; fire; flood; energy price volatility; pulp price volatility and
sustainability; water abstraction; net zero emissions; pension and information
security and cyber risk.
The Board considers that all principal risks and uncertainties set out in
the 2022 annual report have not changed and remain relevant for the second
half of the financial year.
4 Alternative performance measures
The Company uses alternative performance measures to allow users of the
financial statements to gain a clearer understanding of the underlying
performance of the business.
Profit before tax represents the Group's overall performance and financial
position, however it contains significant non-operational items relating to
IAS 19 that the directors believe obscure an understanding of the key
performance trend.
Measures used to evaluate business performance are 'Adjusted operating profit'
(operating profit excluding the impact of IAS 19 and exceptional items) and
'Adjusted profit before tax' (profit before tax excluding the impact of IAS 19
and exceptional items). The alternative performance measures are reconciled in
note 9.
The adjustment, which we refer to in these accounts as the "IAS 19 impact"
represents the difference between the pension charge as calculated under IAS
19 and the cash contributions for the current service cost only as determined
by the latest triennial valuation. The Directors consider that the adjusted
pension charge better reflects the actual pension costs for ongoing service
compared to the IAS 19 charge. This adjustment is made internally when we
assess performance and is also used in the profit and earnings per share
targets used in management incentive schemes.
5 Earnings per share
Six months ended 24 September 2022 Six months ended 25 September 2021 Year ended 26 March 2022
(Loss) / earnings per share - basic and diluted (9.2)p 16.2p 14.2p
(Loss) / profit for the financial period (£'000) (883) 1,550 1,358
Weighted average number of shares - 9,554,803 9,554,803 9,554,803
basic and diluted
6 Dividends
The proposed interim dividend of 2.0p (2021: 2.5p) per 25p ordinary share is
payable on 13 January 2023 to those shareholders on the register of the
Company at the close of business on 9 December 2022, with the last day for
Dividend Reinvestment Plan (DRIP) elections being 20 December 2022.
7 Retirement benefit obligations
26 week period ended 24 September 2022 26 week period ended 25 September 2021 52 week period ended 26 March 2022
£'000 £'000 £'000
Obligation brought forward (13,130) (18,436) (18,436)
Expense recognised in the income statement (568) (718) (1,570)
Contributions paid to the schemes 862 1,085 2,099
Actuarial (losses) and gains recognised in Other Comprehensive Income (66) 955 4,777
Obligation carried forward (12,902) (17,114) (13,130)
8 Exceptional items
26 week period ended 24 September 2022 26 week period ended 25 September 2021 52 week period ended 26 March 2022
£'000 £'000 £'000
Increased earn-out provisions 540 - 354
Exceptional items 540 - 354
Due to increases in future projections exceeding earlier projections estimated
at 26 March 2022, additional provisions for contingent consideration are
required.
9 Alternative performance measures
26 week period ended 24 September 2022 26 week period ended 25 September 2021 52 week period ended 26 March 2022
£'000 £'000 £'000
Adjusted operating profit 453 2,474 4,585
Net IAS 19 pension adjustments - current service costs (126) (164) (547)
Increased earn-out provision (540) - (354)
Operating (loss) / profit (213) 2,310 3,684
26 week period ended 24 September 2022 26 week period ended 25 September 2021 52 week period ended 26 March 2022
£'000 £'000 £'000
Adjusted (loss) / profit before tax (13) 2,263 4,045
Net IAS 19 pension adjustments
- current service costs (390) (532) (1,203)
- future service 264 368 656
contributions paid
- finance costs (178) (186) (367)
Increased earn-out provision (540) - (354)
(Loss) / profit before tax (857) 1,913 2,777
10 Related parties
There have been no significant changes in the nature of related party
transactions in the period ended 24 September 2022 from that disclosed in the
2022 annual report.
Statement of Directors' responsibilities
The Directors confirm that these condensed consolidated interim financial
statements have not been prepared in accordance with IAS 34 as adopted by the
UK and that the interim management report includes a fair review of the
information required by DTR 4.2.7 and DTR 4.2.8, namely:
(i) An indication of important events that have occurred
during the first six months and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
(ii) Material related party transactions in the first six
months and any material changes in the related party transactions described in
the last Annual report.
The Directors of James Cropper Plc are detailed on our Group website
www.jamescropper.com (http://www.jamescropper.com)
Forward-looking statements
Sections of this half-yearly financial report may contain forward-looking
statements with respect to the Group's plans and expectations relating to its
future performance, results, strategic initiatives, objectives and financial
position, including liquidity and capital resources. These forward-looking
statements are not guarantees of future performance. By their very nature, all
forward-looking statements involve risks and uncertainties because they relate
to events that may or may not occur in the future and are or may be beyond the
Group's control. Accordingly, the Group's actual results and financial
condition may differ materially from those expressed or implied in any
forward-looking statements. Forward-looking statements in this half-yearly
financial report are current only as of the date on which such statements are
made. The Group undertakes no obligation to update any forward-looking
statements, save in respect of any requirement under applicable law or
regulation. Nothing in this announcement shall be construed as a profit
forecast.
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