REG - Cropper(James) PLC - Interim Results
09/11/2023 07:00
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RNS Number : 8604S Cropper(James) PLC 09 November 2023
9 November 2023
James Cropper plc
("James Cropper", the "Company" or the "Group")
Interim Results
Accelerated growth strategy on track
Financial and operational performance drives gross margin expansion and
increased profitability in the Group
James Cropper plc (AIM: CRPR), a global market leader in advanced materials,
luxury packaging and paper products, announces its results for the six months
ended 30 September 2023 ('H1 FY24').
Financial Headlines:
· Group revenue broadly in line with the Board's FY24 expectations
despite ongoing market headwinds in Paper Products
· Adjusted operating profit increased to £3.0m (H1 FY23: £0.5m) with
gross margin performance and cost management improvement
· Profit before tax up to £2.4m (H1 FY23: loss £(0.9)m) supported by
improved margins, a reduction in IAS 19 pension adjustments and exceptional
items
· Earnings per share up to 19.4p (H1 FY23: loss per share (9.2)p)
· Interim dividend declared at 3.0p per share (H1 FY23: 2.0p),
reflecting the Board's confidence in the ongoing implementation of the
accelerated growth strategy
· Net debt of £13.3m, down £3.3m from £16.6m at FY23 (H1 FY23:
£12.2m).
Operational Headlines:
· Accelerated growth strategy on track with progress achieved during
the period under review
· Continued progress made as the Group unifies its business identity
under the James Cropper name, with launch ready for Q4 FY24
· Solid performance in Advanced Materials division;
§ Future Energy's hydrogen offer continues to exceed management's
expectations
§ Technical Fibres remains healthy with growth in core customer base
· Restructuring and consolidation of Paper and Colourform is
progressing well
· New leadership team in place across market-facing segments as well as
at a Group level
· Decarbonisation project advancing to phase one construction,
supported by grant funding
· Luxury Packaging wins internationally acclaimed Formes de Luxe award
Future Outlook:
· Continued growth in Advanced Materials division:
§ Ongoing investment for expansion in the electrolyser manufacturing
operations
§ Opportunity pipeline and exploration into new growth markets such as Carbon
Capture and Electrolyser OEM
· Ongoing progress in Paper Products division:
§ Restructuring due to complete in Q4 FY24, delivering further margin
improvement
§ Share in target markets maintained and well positioned for anticipated
recovery in global demand during FY25.
· The actions taken to date give the Board confidence that the Group is
well positioned to deliver increased profitability in FY24 consistent with its
expectations and that, in line with the accelerated growth strategy, revenue
growth will be delivered from FY25 onwards.
Commenting on the half year results, James Cropper CEO Steve Adams said:
"We have achieved a healthy first half performance with benefits from our
accelerated growth strategy now becoming evident, following considerable hard
work and commitment by the James Cropper team.
In spite of ongoing wider macro-economic pressures and softer demand across
Paper, the actions taken to streamline the business and focus on higher margin
opportunities have helped deliver an improvement in profitability. Advanced
Materials continues to perform well with Future Energy again exceeding
expectations.
The continued focus on our unique recovered fibre upcycling capability,
moulded fibre luxury packaging offer and pioneering activities in
decarbonisation keep us differentiated and relevant with our current and
future customers.
Our access to the high growth Future Energy markets with an equally
differentiated product and technology offer in Advanced Materials, brings
significant opportunity for further growth. We are committed to ongoing
investment in our capabilities and capacity with a new phase of expansion in
our electrolyser manufacturing operations.
We have also built significant strength in our talent and leadership over the
last year and will complement this with more agile systems and processes. With
the new leadership team, and our talented global workforce, we are well
positioned for greater success; from redefining our Paper Products offer to
satisfying global demand for a low carbon economy through cutting edge
materials and components in renewable energy.
While still in the midst of our transformation, we are confident in the future
prospects of the business which is reflected in the increase in interim
dividend and I look forward to achieving further value for our shareholders as
we start the journey to reposition ourselves as one company, unified under the
Group name, James Cropper."
ENDS
Enquiries:
James Cropper plc
Rosina Merrett
Mob: +44 (0) 7500 083559
www.jamescropper.com (http://www.jamescropper.com)
Shore Capital - NOMAD and Broker
Robert Finlay, Henry Willcocks, Lucy Bowden
Tel: +44 (0) 20 7601 6100
Buchanan Communications - Financial PR
Chris Lane, Charles Ryland, Jamie Hooper, Verity Parker
jamescropper@buchanancomms.co.uk (mailto:jamescropper@buchanancomms.co.uk)
Tel: +44 (0) 207 466 5000
Notes for editors:
James Cropper is a market leader in Advanced Materials and Paper Products,
centred around four market audiences: Future Energy, Technical Fibres, Luxury
Packaging and Creative Papers.
A purpose-led business, built upon six generations of the Cropper family,
James Cropper has a 600+ international workforce and an operational reach in
over 50 countries.
Established in 1845, the Group manufactures creative papers, luxury packaging
and advanced materials incorporating pioneering non-wovens and electrochemical
coatings.
James Cropper is a specialist provider of niche solutions tailored to a unique
customer specification, ranging from substrates and components in hydrogen
electrolysis and fuel cells to bespoke colours and textures in paper and
moulded fibre packaging designed to replace single use plastics.
The Group operates across multiple markets from luxury retail to renewable
energy. It is renowned globally for service, capability, pioneering and multi
award-winning commitment to the highest standards of sustainability.
James Cropper's goal is to be operationally net zero by 2030 and to reduce
carbon through its entire supply chain to net zero by 2050.
Business review
Building on the previous year's strong second half, the first six months of
this year show an improved performance.
The economic climate continues to be challenging but overall, profits for the
Group were up, with profit before tax of £2.4m (H1 FY23: loss £(0.9)m) and
adjusted profit before tax at £2.4m, compared with £nil in the prior
comparative period. This was due to an improved gross margin performance and
cost management as well as relief on energy procurement.
The Group continues to make significant progress in repositioning James
Cropper as an Advanced Materials and Paper Products business, centred around
four target audiences: Future Energy, Technical Fibres, Luxury Packaging and
Creative Papers, with the accelerated growth strategy on track to capitalise
on the opportunities within its core and emerging end-markets.
A strategy for accelerated growth:
1. Profitable growth through new customer acquisition: opportunities to
expand in new and existing markets
2. World class execution: investment in global systems and functions
3. Technology and Innovation: Centre for Innovation will include
decarbonisation and waste fibres as well as exploring new ideas
4. Leaders in sustainability: recognising our responsibility to reduce and
ultimately eliminate our emissions
5. Inspiring our people: building a culture of trust, cooperation and
involvement
6. Build the brand: presenting a more meaningful and relevant face to our
increasingly global customer base.
Over this period, the Group strengthened its leadership team with Matthew
Ratcliffe joining as General Counsel and Richard Bracewell, internally
appointed, as Managing Director of the Paper Products division. As previously
announced, Andrew Goody will join the Company and the Board of Directors later
this month as Chief Financial and Operations Officer.
The Centre of Innovation function has further progressed the decarbonisation
programme with grant funding awarded. The project has advanced to phase one
construction to support the build of the Low Carbon Energy Centre which will
enable the electrification of the paper manufacturing facility.
Revenue is broadly in line with the Board's expectations with all divisions
experiencing positive customer demand, albeit at a lower rate than expected
within Paper Products.
Advanced Materials (Future Energy and Technical Fibres)
Revenue for the division is ahead at £19.0m in comparison to last year (H1
FY23: £17.4m).
Future Energy's hydrogen offer continues to exceed management's expectations
with profit and demand growing. In North America, electrolyser manufacturers
are now beginning to benefit from the new coating line with its ability to
shorten supply chain and optimise logistics.
Demand within Technical Fibres remains steady, with growth seen in its core
customer base. The activation of the strategic growth programmes is driving
a healthy opportunity pipeline with strengthened customer relationships,
exploration of new business partnerships and a focus on new growth markets
such as Carbon Capture and Electrolyser OEM.
Paper Products (Luxury Packaging and Creative Papers)
Over the last twelve months, measures have been implemented to build strength
and resilience in the division by restructuring and consolidating operations
to drive better asset utilisation with increased efficiency and
productivity.
The right-sizing of the division and consolidating Colourform into Luxury
Packaging and Creative Papers is showing gross margin improvement and
productivity gains despite tough market conditions across the industry.
Operating margin has continued to improve, despite the Group no longer
applying an energy surcharge and some near term softening in its paper
markets. Revenue at £35.6m is broadly in line with the previous year (H1
FY23: £42.0m) (H1 FY23: £38.1m excluding energy surcharge).
The Board expects global demand, particularly within Luxury Packaging, to
normalise moving into FY25. In line with market expectations, the division
will be well positioned for further gross margin improvements with the
restructure completed and leaner working practices implemented.
The capabilities within Paper have also widened with the new Embossing Centre
of Excellence in operation as well as expanding the reclaimed and recycled
fibre offer.
The long-standing partnership with the Royal British Legion saw James Cropper
support the launch of the first-ever 100% plastic-free remembrance poppy, a
partnership proudly held since 1978 and most recently, the division won the
internationally acclaimed Formes de Luxe award in the Moulded Pulp Packaging
category in collaboration with Maison Perrier-Jouët for Belle Epoque
'Cocoon'.
Outlook
Within Advanced Materials, a scale up of additional capacity for the Future
Energy hydrogen offer is underway with accelerated capital investment for the
next phase of expansion in the UK electrolyser manufacturing operations. New
market opportunities for Technical Fibres are expected to provide another year
of growth.
The Group also continues to make significant progress in repositioning the
business, unified under its business name, James Cropper. To build greater
brand equity in the market, the Group will be launching a refreshed identity
in Q4 FY24.
In the Paper division wider macro-economic pressures will endure into the
second half of the year. However, the completed restructure and improved
operational efficiencies will drive further recovery in margin improvement and
productivity.
The actions taken to date give the Board confidence that the Group is well
positioned to deliver increased profitability in FY24 consistent with its
expectations and that, in line with the accelerated growth strategy, revenue
growth will be delivered from FY25 onwards.
Financial Summary
Half-year to 30 September 2023 Half-year Full-year
to 24 September
to 1
2022
April
2023
£m £m £m
Revenue 56.5 61.6 129.7
Adjusted operating profit * 3.0 0.5 4.8
Operating profit /(loss) 3.6 (0.2) 3.3
Adjusted profit / (loss) before tax * 2.4 (0.0) 3.2
Impact of IAS 19 (0.2) (0.3) (0.8)
Impact of exceptional items 0.2 (0.5) (1.1)
Profit / (loss) before tax 2.4 (0.9) 1.3
Earnings / (loss) per share - basic and diluted 19.4p (9.2)p 5.4p
Dividend per share declared 3.0p 2.0p 6.0p
Net debt (13.3) (12.2) (16.6)
Equity shareholders' funds 33.9 34.3 32.1
Gearing % - before IAS 19 deficit 29% 28% 38%
Gearing % - after IAS 19 deficit 39% 35% 52%
Capital expenditure 1.4 2.4 5.8
* excludes the impact of IAS 19 and exceptional items (per note 8)
Financial
Statement
Half-year to 30 September 2023 Half-year to 24 September 2022 Full-year
to 1 April
2023
£'000 £'000 £'000
Revenue
Paper Products division - excluding energy surcharge 35,628 38,170 79,717
Paper Products division - energy surcharge - 3,876 8,434
Colourform division 1,876 2,105 4,326
Technical Fibre Products division 18,995 17,432 37,187
56,499 61,583 129,664
Adjusted operating profit * 3,048 453 4,767
Fair value movement on derivatives - - (330)
Adjusted net interest (645) (466) (1,242)
Adjusted profit / (loss) before tax * 2,403 (13) 3,195
IAS19 pension adjustments
Net current service charge against operating profits 202 (126) (442)
Finance costs charged against interest (386) (178) (345)
2,219 (317) 2,408
Exceptional items (note 8) 340 (540) (986)
Exceptional finance costs (note 8) (131) - (109)
Profit / (loss) before tax 2,428 (857) 1,313
* excludes the impact of IAS 19 and exceptional items (per note 8)
Balance sheet summary Half-year to 30 September 2023 Half-year to 24 September 2022 Full-year to 1
April 2023
£'000 £'000 £'000
Non-pension assets - excluding cash 80,952 85,113 86,754
Non-pension liabilities - excluding borrowings (21,636) (28,986) (25,990)
59,316 56,127 60,764
Net IAS19 pension deficit (after deferred tax) (12,153) (9,677) (12,105)
47,163 46,450 48,659
Net borrowings (13,312) (12,156) (16,594)
33,851 34,294 32,065
Equity shareholders' funds
Gearing % - before IAS19 deficit 29% 28% 38%
Gearing % - after IAS19 deficit 39% 35% 52%
Capital expenditure £'000 1,399 2,360 5,779
UN-AUDITED CONSOLIDATED INCOME STATEMENT
26 week 26 week 53 week
period
period
period
to 1
to 30 to 24
April
September
September
2023
2023
2022
£'000 £'000 £'000
Revenue 56,499 61,583 129,664
Provision for impairment (loss) / reversal (116) (69) 134
Other income 1,471 770 650
Changes in inventories (134) 1,975 817
Raw materials and consumables used (19,882) (23,359) (48,556)
Energy costs (3,866) (8,031) (15,162)
Employee benefit costs (17,845) (18,031) (34,459)
Depreciation and amortisation (2,289) (2,090) (4,278)
Other expenses (10,248) (12,961) (25,471)
Operating profit / (loss) 3,590 (213) 3,339
Fair value movement on derivatives - - (330)
Interest payable and similar charges (1,162) (644) (1,697)
Interest receivable and similar income - - 1
Profit / (loss) before taxation 2,428 (857) 1,313
Taxation (570) (26) (797)
Profit / (loss) for the period 1,858 (883) 516
19.4p (9.2)p 5.4p
Earnings / (loss) per share - basic and diluted
UN-AUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Profit / (loss) for the period 1,858 (883) 516
Items that are or may be reclassified to profit or loss
Exchange differences on translation of foreign operations (80) 440 222
Cash flow hedges - effective portion of changes in fair value 256 680 1,040
Cash flow hedges - cost of hedging 60 - (355)
Items that will never be reclassified to profit or loss
Retirement benefit liabilities - actuarial losses (411) (66) (3,888)
Deferred tax on actuarial losses on retirement benefit liabilities 103 17 972
Other comprehensive income / (expense) for the period (72) 1,071 (2,009)
Total comprehensive income / (expense) for the period attributable to equity 1,786
holders of the Company
188 (1,493)
UN-AUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 24 1
April
September September
2023
2023 2022
£'000 £'000 £'000
Assets
Intangible assets 1,441 2,219 1,524
Goodwill 1,264 1,264 1,264
Property, plant and equipment 32,191 31,636 32,717
Right of use assets 6,302 7,528 6,765
Other financial asset 657 - 654
Deferred tax assets 4,215 3,171 4,198
Total non-current assets 46,070 45,818 47,122
Inventories 18,166 19,638 18,304
Trade and other receivables 20,520 21,242 24,763
Provision for impairment (759) (846) (643)
Other financial assets 644 1,653 428
Cash and cash equivalents 12,348 14,147 7,679
Current tax assets 362 833 815
Total current assets 51,281 56,667 51,346
97,351
Total assets 102,485 98,468
Liabilities
Trade and other payables 16,678 24,864 21,106
Other financial liabilities - 415 58
Loans and borrowings 1,306 1,697 1,758
Total current liabilities 17,984 26,976 22,922
Long-term borrowings 24,354 24,606 22,515
Retirement benefit liabilities 16,204 12,902 16,140
Contingent consideration on business acquisition 1,554 922 1,423
Deferred tax liabilities 3,404 2,785 3,403
Total non-current liabilities 45,516 41,215 43,481
63,500 66,403
Total liabilities 68,191
Equity
Share capital 2,389 2,389 2,389
Share premium 1,588 1,588 1,588
Reserve for own shares (1,407) (1,407) (1,407)
Translation reserve 695 993 775
Cash flow hedging reserve 1,296 1,202 1,040
Cost of hedging reserve (295) - (355)
Retained earnings 29,585 29,529 28,035
Total shareholders' equity 33,851 34,294 32,065
97,351 98,468
Total equity and liabilities 102,485
UN-AUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
26 week 26 week 53 week
period
period
period
to 30
September to 24 to 1
2023
September
April
2022
2023
£'000 £'000 £'000
Cash flows from operating activities
Profit / (loss) for the period 1,858 (883) 516
Adjustments for:
Tax expense 570 26 797
Depreciation and amortisation 2,289 2,090 4,278
Earn out adjustment on contingent consideration on business acquisition - - 986
Net IAS 19 pension adjustments within Statement of comprehensive income (202) 304 442
Past service pension deficit payments (531) (598) (1,665)
Foreign exchange differences (205) (125) (136)
Loss / (profit) on disposal of property, plant and equipment 174 22 (589)
Net interest expense 1,162 464 1,696
Share based payments - - (59)
Fair value movement on derivatives - - 330
Changes in working capital:
Decrease /(increase) in inventories 171 (1,953) (696)
Decrease / (increase) in trade and other receivables 4,318 1,517 (3,614)
(Decrease) / increase in trade and other payables (4,495) 3,386 2,396
Tax (paid) /received (28) 1,057 868
Net cash generated from operating activities 5,081 5,307 5,550
Cash flows from investing activities
Purchase of intangible assets (5) (86) (1,126)
Purchases of property, plant and equipment (1,394) (2,274) (5,267)
Contingent consideration on business acquisition paid - - (250)
Net cash used in investing activities (1,399) (2,360) (6,643)
Cash flows from financing activities
Proceeds from issue of loans 2,000 5,189 5,050
Repayment of borrowings (201) (123) (288)
Repayment of lease liabilities (668) (674) (1,561)
Interest received - 1 1
Interest paid (481) (291) (858)
Non-deliverable forward contract payment - - (330)
Payments on interest rate cap - - (495)
Dividends paid to shareholders - (708) (897)
Net cash generated from financing activities 650 3,394 622
Net increase/(decrease) in cash and cash equivalents 4,332 6,341 (471)
Effect of exchange rate fluctuations on cash held 337 56 400
Net increase in cash and cash equivalents 4,669 6,397 (71)
Cash and cash equivalents at the start of the period 7,679 7,750 7,750
Cash and cash equivalents at the end of the period 12,348 14,147 7,679
Cash and cash equivalents consists of:
Cash at bank and in hand 12,348 14,147 7,679
UN-AUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share premium Translation Reserve for own shares Cash flow hedging Reserve Retained earnings
reserve Cost of hedging reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 April 2023 2,389 1,588 775 (1,407) 1,040 (355) 28,035 32,065
Comprehensive income for the period - - - - - - 1,858 1,858
Total other comprehensive income - - (80) 256 (308) (72)
60
Dividends paid - - - - - - - -
Total contributions by and distributions to owners of the Group - - - - - -
-
-
At 30 September 2023 2,389 1,588 695 (1,407) 1,296 29,585 33,851
(295)
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
-
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
30 September 2023, 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
30 September 2023 and 24 September 2022 are unaudited and were approved by the
Directors on 8 November 2023. They do not constitute statutory accounts as
defined in s434 of the Companies Act 2006. The financial statements for the
year ended 1 April 2023 were prepared in accordance with UK adopted
international accounting standards and with those parts of the Companies Act
2006 applicable to companies reporting under IFRS, 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 except for the revaluation of certain
financial instruments to fair value. 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 consolidated financial statements of the Group for the 53 week period
ended 1 April 2023 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 Board has reviewed the Group's
financial forecasts for the 2 year period ending 31 March 2025 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 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 53 week period ended 1
April 2023.
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 53 week period ended 1 April 2023.
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
2023 Annual Report on pages 21-25. The principal risks set out in the 2023
Annual Report were:
Pension; network and systems security; security of supply; fire; net zero
emissions; employee health and safety; attraction and retention of key skills
and talent; energy price volatility and corporate and regulatory compliance
risk.
The Board considers that all principal risks and uncertainties set out in the
2023 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, however it
contains significant non-operational items relating to IAS 19 that the
directors believe make year-on-year comparison of performance challenging.
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 30 September Six months ended 24 September Year ended
2023
2022
1 April
2023
Earnings / (loss) per share - basic and diluted 19.4p (9.2)p 5.4p
Profit / (loss) for the period (£'000) 1,858 (883) 516
Weighted average number of shares - 9,554,803 9,554,803 9,554,803
basic and diluted
6 Dividends
The proposed interim dividend of 3.0p (H1 FY23: 2.0p) per 25p ordinary share
is payable on 8 January 2024 to those shareholders on the register of the
Company at the close of business on 8 December 2023, with an ex-dividend date
of 7 December 2023.
7 Retirement benefit obligations
26 week period ended 30 September 2023 26 week period ended 24 September 2022 53 week period ended 1 April 2023
£'000 £'000 £'000
Obligation brought forward (16,140) (13,130) (13,130)
Expense recognised in the income statement (563) (568) (1,319)
Contributions paid to the schemes 910 862 2,197
Actuarial (losses) recognised in Other Comprehensive Income (411) (66) (3,888)
Obligation carried forward (16,204) (12,902) (16,140)
8 Exceptional items
26 week period ended 30 September 2023 26 week period ended 24 September 2022 53 week period ended 1 April 2023
£'000 £'000 £'000
Included in employee benefit costs:
Restructuring costs 760
Included in other expenses:
Restructuring costs 304 - -
Increase in earn-out provisions - 540 986
Included in other income:
Legal settlement (1,404) - -
Exceptional items excluding finance costs (340) 540 986
131 - 109
Included in finance costs:
Unwind of discount on earn-out
provision
Exceptional items (209) 540 1,095
Restructuring costs incurred to date amount to £1,064k, the group restructure
is expected to be complete by year end.
A settlement of a historic pension legal dispute was agreed in the current
period resulting in the recognition of income of £1,404k.
9 Alternative performance measures
26 week period ended 30 September 2023 26 week period ended 24 September 2022 52 week period ended 1 April 2023
£'000 £'000 £'000
Adjusted operating profit 3,048 453 4,767
Net IAS 19 pension adjustments - current service costs 202 (126) (442)
Exceptional items 340 (540) (986)
Operating profit / (loss) 3,590 (213) 3,339
26 week period ended 30 September 2023 26 week period ended 24 September 2022 53 week period ended 1 April 2023
£'000 £'000 £'000
Adjusted profit / (loss) before tax 2,403 (13) 3,195
Net IAS 19 pension adjustments
- current service costs (177) (390) (974)
- future service contributions paid 379 264 532
- finance costs (386) (178) (345)
Exceptional items 209 (540) (1,095)
Profit / (loss) before tax 2,428 (857) 1,313
10 Related parties
There have been no significant changes in the nature of related party
transactions in the period ended 30 September 2023 from that disclosed in the
2023 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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