REG - Cropper(James) PLC - Interim Results
20/11/2024 07:00
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RNS Number : 8721M Cropper(James) PLC 20 November 2024
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20 November 2024
James Cropper plc
("James Cropper", the "Company" or the "Group")
Interim Results
James Cropper plc (AIM: CRPR), the Advanced Materials and Paper &
Packaging group, announces its unaudited results for the six months ended 30
September 2024 ('H1 FY25').
Financial headlines
· Group revenue of £49.9m, +7% against the challenging H2 FY24 but
11.7% below the same period last year (H1 FY24: £56.5m) when fuel cell
revenue in Advanced Materials was at an elevated level and prior to supply
chain disruption across Paper & Packaging.
· Adjusted operating profit of £0.4m, up £1.4m against H2 FY24 but
£2.6m below the same period last year (H1 FY24: £3.0m), due to lower revenue
and rising input prices in the Paper & Packaging businesses, partly offset
by margin growth in the Advanced Materials business and strong overhead cost
control across the Group.
· Adjusted(1) loss before tax of £0.2m (H1 FY24: adjusted(1) profit
before tax £2.4m)
· Statutory loss before tax of £0.6m (H1 FY24: profit before tax of
£2.4m).
· Loss per share of 5.1p (FY24 H1: earnings per share 19.4p).
· No interim dividend proposed (H1 FY24: 3.0 pence per share).
· Improved net debt of £13.1m (H1 FY24: £13.3m), down from £15.5m at
the year-end with continued careful control of working capital and capital
expenditure of £0.6m (H1 FY24: £1.4m).
Operational headlines
Advanced Materials
· The Advanced Materials business experienced good momentum. The
business benefitted from a strong recovery in aerospace and defence demand and
maintained a robust gross margin performance, due to resilient pricing and
productivity initiatives.
· Within the Energy Solutions segment, the hydrogen fuel cell market
remained subdued, but the PEM electrolyser business showed encouraging signs
of recovery.
· The reshaped leadership team in Advanced Materials is reinforcing the
focus on growth markets and leveraging our excellent customer proposition to
maintain strong margins.
Paper & Packaging
· The core paper business recovered well in H1 FY25 against H2 FY24
with key markets returning to normalised patterns and pricing being supported
by strong customer relationships.
· The luxury packaging market remained challenging due to the slowdown
in China and reduced demand being experienced by some luxury brand customers.
· Sales of Colourform moulded fibre products were impacted by the
ongoing weakness in the luxury packaging market, particularly the wines &
spirits sector.
· Paper & Packaging input prices remained high through H1 FY25,
partly mitigated by rigorous cost control disciplines and sourcing
efficiencies.
· Volume-based business development is being accelerated to counter the
market softness but will have an impact on overall Group margins.
Current trading and outlook
· Advanced Materials H1 FY25 revenue growth momentum is expected to
continue through H2 based on forecast customer projects, with the outlook in
aerospace, defence, construction and hydrogen PEM electrolyser remaining
strong.
· Challenging conditions remain in the Paper & Packaging business
due to the ongoing fragility in the luxury packaging sector and customers in
the photographic board sector recently forecasting reduced revenues for the
remainder of FY25.
· As a result of the prolonged weakness in Paper & Packaging market
conditions, the Board now expects that the Group's results for FY25 will be
below its prior expectations, with full year revenue and adjusted(1) profit
before tax expected to be broadly at the same level as the Group's FY24
reported results.
· Robust cost controls embedded across the Group are providing a level
of mitigation for the lower demand in the Paper & Packaging division and
maximising working capital efficiency.
· Strong cash management disciplines have resulted in an improved net
debt position reported for H1 FY25.
· Both businesses continue to focus on accelerating growth
opportunities in new markets and the Board's performance expectations for the
Group in the medium term remain unchanged.
· David Stirling will join the Group in January 2025 and succeed Steve
Adams as Chief Executive Officer following a short handover period.
Commenting on the half year results, James Cropper CEO Steve Adams said:
"Although trading was challenging in the first half of the financial year, the
Group was able to achieve sequential growth in revenue and profit with clear
signs of recovery across most segments of the business.
"The Advanced Materials business continues to benefit from its focus on
end-markets with strong secular growth trends, and it is demonstrating
traction in its growth strategy with an expanding portfolio of opportunities
in new technologies and markets. The Paper & Packaging business has seen
slower recovery due to ongoing global market softness in some of its key
sectors. Tight cost control and mitigation efforts are in place to defend
margins especially whilst input costs continue to fluctuate.
"Our teams have worked diligently to maintain value through new business
development activities, preserving and strengthening our existing customer
relationships through enhanced collaboration and partnership, and remaining
steadfast in our focus to leverage our capabilities through new product and
technology development, underpinned by our strong brand presence.
"The fact that our direct customer base remains stable and intact, and that we
are seeing positive trends in various end markets, gives us confidence that
the Group is positioned for growth once end market conditions stabilise and
improve.
"As announced in October, I retire from the Board in early 2025 after seven
years on the Group Board. I very much look forward to supporting my
successor David Stirling in achieving a smooth transition and am confident
that the Group will thrive under his leadership."
Notes
(1) Excludes the impact of IAS 19 in respect of the Group's defined benefit
pension scheme and exceptional items (per note 8).
ENDS
Enquiries:
James Cropper plc
Steve Adams, CEO
Andrew Goody, CFO
Tel: +44 (0)1539 722 002
Shore Capital - Nominated Adviser and Broker
Daniel Bush, David Coaten, Henry Willcocks, Lucy Bowden
Tel: +44 (0)207 408 4090
Burson Buchanan - Financial PR
Chris Lane, Charles Ryland, Jamie Hooper, Verity Parker
jamescropper@buchanancomms.co.uk
Tel: +44 (0) 207 466 5000
Notes for editors:
James Cropper is a market leader in Advanced Materials and Paper &
Packaging, centred around four market audiences: Energy Solutions, Composite
Solutions, 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.
Group overview
In H1 FY25, both of the Group's businesses saw a revenue recovery against the
challenging H2 FY24, with Advanced Materials and Paper & Packaging
revenues each up 7% in H1 FY25 against H2 FY24, albeit the revenue run rate
was below the same period last year (Group revenue -11.7% against H1 FY24).
Group adjusted operating profit in the period was £0.4m (H1 FY24: £3.0m).
This was up £1.4m against H2 FY24, but £2.6m below the same period last year
due to lower revenue and rising input prices in the Paper & Packaging
businesses, partly offset by margin growth in the Advanced Materials business
and strong overhead cost control across the Group.
The Group continues to maintain strong relationships with its direct customer
base, with a growing emphasis on collaboration. Our customer proposition
across both divisions remains compelling and is driving new opportunities,
supported by our new brand positioning.
Strong cash management disciplines have been applied to control capital
expenditure, working capital and overheads and the Group remains comfortably
in compliance with its bank covenants, with an improved net debt position
compared to both the end of FY24 and the end of H1 FY24.
Capital expenditure for the full year is likely to be lower than previous
guidance, as a result of the deferral of our decarbonisation activities whilst
we explore different business models, and deferral of all non-essential
capital expenditure. Investment in new capabilities and capacity in our
electrolyser operations has continued, in preparation for the expected upturn
in production of electrolyser stacks.
Advanced Materials
Advanced Materials has seen solid 'half-on-half' revenue growth in H1 FY25
(against H2 FY24), which is expected to continue in H2 FY25. The core
industrial materials markets remain robust, and our strong product capability
has enabled some margin growth.
The hydrogen fuel cell sector remains subdued due to uncertainty over future
green technology pathways, but indications are for an improving outlook with
strong partnerships and collaboration on next generation Gas Diffusion Layers
(GDL) and Micro Porous Layers (MPL) for a broader base of application areas
beyond automotive.
Our PEM electrolyser customers have strengthened their order book over the
last few months, which is expected to benefit performance through the second
half of the current financial year. As with fuel cell, strong partnerships are
in place and business development and trials are currently ongoing with most
major PEM electrolyser OEMs. The business recently launched its advanced
coating technology under the brand name Resillion™ which has generated
significant interest and enquiries from major OEMs. We remain well
positioned to take advantage of expected growth in this sector over the medium
term.
We continue to focus on the development of advanced non-wovens for new battery
technologies as well as products for new composite solutions and application
replication into advanced air mobility platforms in aerospace.
We have recently also repositioned and rebranded the Advanced Materials
product portfolio which segments and positions products by market and value
proposition, ensuring there is better understanding of the scope of products
and their applications in various industries.
Paper & Packaging
Our Paper & Packaging business saw a revenue recovery during H1 FY25 with
an easing of supply chain destocking and growth in our core paper merchant
business. However, luxury packaging markets have remained subdued and demand
from the photographic board sector has weakened since the start of H2 FY25.
Sales of Colourform moulded fibre products, have been significantly impacted
by weakness in the global wines & spirits sector, where an expected
recovery in that market has yet to materialise.
Innovation into technical papers forms an important part of the transition
away from reliance on some declining segments of more traditional markets into
higher added value growth sectors, where our unique capabilities and fibre
expertise can create differentiated solutions.
Operational improvements are continuing with concentration on building agility
through operator cross-training, waste reduction activities and improved
production scheduling.
Our formed fibre offer continues to attract considerable attention, this year
winning prestigious Pentawards and other accolades for sustainable innovation
and design. Our project pipeline is continuing to expand, but investment
decisions are taking longer to come to fruition due to the softness in
end-market demand.
Outlook
Revenue momentum is expected to continue through H2 in Advanced Materials
based on forecast customer projects. The outlook in aerospace, defence,
industrial, automotive, battery and hydrogen PEM electrolyser remains strong
through enhanced collaboration and partnerships and continued technology
development.
Challenges remain in Paper & Packaging, with ongoing weakness in luxury
goods end markets, primarily due to the slowdown in demand from China,
together with reduced revenue expectations in the photographic display boards
sector. This has meant that the Group's Paper & Packaging division entered
H2 FY25 with less momentum than previously forecast and the Group experienced
similar trading conditions in October. Volume-based business development is
being accelerated to counter the market softness, but this lower margin
business will have an impact on overall Group margins.
Whilst margin gains in Advanced Materials and cost savings will mitigate some
of the impact of the Paper & Packaging weakness, the Group's results for
FY25 are now expected to be below the Board's prior expectations. Full year
Group revenue and adjusted profit before tax are expected to be broadly at the
same level as the Group's FY24 reported results. The Board's performance
expectations for the Group in the medium term remain unchanged.
Strong cost control and cash management disciplines are increasingly embedded
in the business and will continue to provide some mitigation moving forward.
The Board has confidence in the resilience of the Group's balance sheet, with
H1 FY25 net debt showing an improvement against the closing positions for both
FY24 and H1 FY24, and that the Group will continue to operate within its
amended banking facility covenants.
As announced on 29 October 2024, David Stirling will be appointed to succeed
Steve Adams as Chief Executive Officer in early 2025. David brings extensive
leadership, commercial, operational and technical experience and is well
placed to ensure the Group truly meets its potential in the coming years.
Financial Statements
Summary
Income statement summary Half-year to 28 September 2024 Half-year to 30 September 2023 Full-year
to 30 March
2024
£'000 £'000 £'000
Revenue
Paper & Packaging division 33,185 37,504 68,465
Advanced Materials division 16,727 18,995 34,503
49,912 56,499 102,968
Adjusted operating profit * 439 3,048 1,977
Adjusted net interest (654) (645) (1,219)
Adjusted (loss) /profit before tax * (215) 2,403 758
IAS19 pension adjustments
Net current service charge against operating profits 36 202 6
Finance costs charged against interest (427) (386) (753)
(606) 2,219 11
Exceptional items (note 8) - 340 (5,010)
Exceptional finance costs (note 8) - (131) (262)
(Loss) / Profit before tax (606) 2,428 (5,261)
* excludes the impact of IAS 19 and exceptional items (per note 8)
Balance sheet summary Half-year Half-year to 30 September 2023 Full-year to 30
March 2024
to 28
September 2024
£'000 £'000 £'000
Non-pension assets - excluding cash 70,627 80,952 72,416
Non-pension liabilities - excluding borrowings (19,993) (21,636) (18,342)
50,634 59,316 54,074
Net IAS19 pension deficit (after deferred tax) (12,251) (12,153) (12,970)
38,383 47,163 41,104
Net borrowings (13,120) (13,312) (15,537)
25,263 33,851 25,567
Equity shareholders' funds
Gearing % - before IAS19 deficit 35% 29% 38%
Gearing % - after IAS19 deficit 52% 39% 61%
Capital expenditure £'000 604 1,399 3,770
UN-AUDITED CONSOLIDATED INCOME STATEMENT
26 week 26 week 52 week
period
period
period
to 30
to 28 to 30
March
September
September
2024
2024
2023
£'000 £'000 £'000
Revenue 49,912 56,499 102,968
Provision for impairment reversal / (loss) 94 (116) 130
Other income 55 1,471 1,970
Changes in inventories 1,194 (134) (2,604)
Raw materials and consumables used (19,318) (19,882) (34,785)
Energy costs (3,011) (3,866) (7,130)
Employee benefit costs (16,376) (17,845) (34,547)
Depreciation and amortisation (2,297) (2,289) (4,619)
Impairment of property, plant and equipment - - (4,427)
Write-off of assets on restructuring - - (469)
Other expenses (9,778) (10,248) (19,514)
Operating profit / (loss) 475 3,590 (3,027)
Interest payable and similar charges (1,082) (1,162) (2,234)
Interest receivable and similar income 1 - -
(Loss) / profit before taxation (606) 2,428 (5,261)
Taxation 118 (570) 1,264
(Loss) / profit for the period (488) 1,858 (3,997)
(5.1)p 19.4p (41.8)p
(Loss) / earnings - basic and diluted
UN-AUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Loss) / profit for the period (488) 1,858 (3,997)
Items that are or may be reclassified to profit or loss
Exchange differences on translation of foreign operations (160) (80) (196)
Cash flow hedges - effective portion of changes in fair value (255) 256 (258)
Cash flow hedges - cost of hedging 68 60 109
Items that will never be reclassified to profit or loss
Retirement benefit liabilities - actuarial gains / (losses) 708 (411) (1,787)
Deferred tax (charge) / credit on actuarial gains / losses on retirement (177) 103 447
benefit liabilities
Other comprehensive income / (expense) for the period 185 (72) (1,685)
Total comprehensive (expense) / income for the period attributable to equity (304) 1,786
holders of the Company
(5,682)
UN-AUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
28 30 30
March
September September
2024
2024 2023
£'000 £'000 £'000
Assets
Intangible assets 1,098 1,441 1,210
Goodwill 1,264 1,264 1,264
Property, plant and equipment 26,376 32,191 27,667
Right of use assets 5,563 6,302 6,028
Other financial asset 218 657 341
Deferred tax assets 5,160 4,215 5,400
Total non-current assets 39,679 46,070 41,910
Inventories 17,028 18,166 15,796
Trade and other receivables 16,611 20,520 17,723
Provision for impairment (419) (759) (513)
Other financial assets 344 644 478
Cash and cash equivalents 10,529 12,348 9,211
Current tax assets 1,467 362 1,345
Total current assets 45,560 51,281 44,040
85,239 97,351 85,950
Total assets
Liabilities
Trade and other payables 17,221 16,678 15,570
Loans and borrowings 3,144 1,306 1,610
Total current liabilities 20,365 17,984 17,180
Long-term borrowings 20,505 24,354 23,138
Retirement benefit liabilities 16,334 16,204 17,293
Contingent consideration on business acquisition - 1,554 -
Deferred tax liabilities 2,772 3,404 2,772
Total non-current liabilities 39,611 45,516 43,203
59,976 63,500 60,383
Total liabilities
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 419 695 579
Cash flow hedging reserve 527 1,296 782
Cost of hedging reserve (178) (295) (246)
Retained earnings 21,925 29,585 21,882
Total shareholders' equity 25,263 33,851 25,567
85,239 97,351 85,950
Total equity and liabilities
UN-AUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
26 week 26 week 52 week
period
period
period
to 28
to 30
September
September to 30
2024
2023
March
2024
£'000 £'000 £'000
Cash flows from operating activities
(Loss) / profit for the period (488) 1,858 (3,997)
Adjustments for:
Tax (credit) / expense (118) 570 (1,264)
Depreciation and amortisation 2,297 2,289 4,619
Impairment of property, plant and equipment - - 4,427
Write-off of assets on restructuring - - 469
Earn out adjustment on contingent consideration on business acquisition - - (422)
Net IAS 19 pension adjustments within Statement of comprehensive income (36) (202) (6)
Past service pension deficit payments (642) (531) (1,381)
Foreign exchange differences 318 (205) (40)
Loss / (profit) on disposal of property, plant and equipment - 174 (40)
Net interest expense 1,082 1,162 2,234
Share based payments - - (152)
Changes in working capital:
(Increase) / decrease in inventories (1,260) 171 2,352
Decrease in trade and other receivables 824 4,318 6,110
Increase / (decrease) in trade and other payables 1,798 (4,495) (5,576)
Tax received / (paid) 59 (28) (163)
Net cash generated from operating activities 3,834 5,081 7,170
Cash flows from investing activities
Purchase of intangible assets - (5) (965)
Purchases of property, plant and equipment (604) (1,394) (3,220)
Proceeds on disposal of intangible assets - - 120
Contingent consideration on business acquisition paid - - (250)
Net cash used in investing activities (604) (1,399) (4,315)
Cash flows from financing activities
Proceeds from issue of loans - 2,000 2,000
Repayment of borrowings (232) (201) (429)
Repayment of lease liabilities (656) (668) (1,449)
Interest received - - -
Interest paid (619) (481) (941)
Dividends paid to shareholders - - (664)
Net cash (used in) / generated from financing activities (1,507) 650 (1,483)
Net increase in cash and cash equivalents 1,723 4,332 1,372
Effect of exchange rate fluctuations on cash held (405) 337 160
Net increase in cash and cash equivalents 1,318 4,669 1,532
Cash and cash equivalents at the start of the period 9,211 7,679 7,679
Cash and cash equivalents at the end of the period 10,529 12,348 9,211
Cash and cash equivalents consists of:
Cash at bank and in hand 10,529 12,348 9,211
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 30 March 2024 2,389 1,588 579 (1,407) 782 (246) 21,882 25,567
Comprehensive expense for the period - - - - - - (488) (488)
Total other comprehensive income - - (160) - (255) 531 184
68
Total contributions by and distributions to owners of the Group - - - - - -
-
-
At 28 September 2024 2,389 1,588 419 (1,407) 527 21,925 25,263
(178)
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
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)
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
28 September 2024, 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
28 September 2024 and 30 September 2023 are unaudited and were approved by the
Directors on 19 November 2024. They do not constitute statutory accounts as
defined in s434 of the Companies Act 2006. The financial statements for the
year ended 30 March 2024 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 52-week period
ended 30 March 2024 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 18-month period ending 31 March 2026 against which
a number of downside scenarios were modelled to 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 has 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 30
March 2024.
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 30 March 2024.
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
2024 Annual Report on pages 39 - 43. The principal and emerging risks set out
in the 2024 Annual Report were:
· Principal risks: health and safety; people; fire; defined benefit
pension scheme; market growth; security of supply; IT systems and network
security; energy price volatility; legal and regulatory compliance;
· Emerging risks: extreme weather events; climate policy; net zero
emissions, raw material availability.
The Board considers that all principal risks and uncertainties set out in the
2024 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 28 September Six months ended 30 September Year ended
2024
2023
30 March
2024
(Loss) / earnings per share - basic and diluted (5.1)p 19.4p (41.8)p
(Loss) / profit for the period (£'000) (488) 1,858 (3,997)
Weighted average number of shares - 9,554,803 9,554,803 9,554,803
basic and diluted
6. Dividends
The Directors are not proposing an interim dividend (H1 FY24: 3.0p).
7. Retirement benefit obligations
26 week period ended 28 September 2024 26 week period ended 30 September 2023 52 week period ended 30 March 2024
£'000 £'000 £'000
Obligation brought forward (17,293) (16,140) (16,140)
Expense recognised in the income statement (561) (563) (1,181)
Contributions paid to the schemes 812 910 1,815
Actuarial gains / (losses) recognised in Other Comprehensive Income 708 (411) (1,787)
Obligation carried forward (16,334) (16,204) (17,293)
8. Exceptional items
26 week period ended 28 September 2024 26 week period ended 30 September 2023 52 week period ended 30 March 2024
£'000 £'000 £'000
Included in operating (loss)/profit:
Restructuring costs - 1,064 2,309
earn-out adjustment on contingent consideration - - (422)
on business acquisition
Impairment of property, plant and equipment - - 4,427
Flood settlement costs - - 100
Legal settlement - (1,404) (1,404)
Exceptional items excluding finance costs - (340) 5,010
- 131 262
Included in finance costs:
Unwind of discount on earn-out
provision
Exceptional items - (209) 5,272
9. Alternative performance measures
26 week period ended 28 September 2024 26 week period 52 week period ended 30 March 2024
ended 30
September 2023
£'000 £'000 £'000
Adjusted operating profit 439 3,048 1,977
Net IAS 19 pension adjustments - current service costs 36 202 6
Exceptional items - 340 (5,010)
Operating profit / (loss) 475 3,590 (3,027)
26 week period ended 28 September 2024 26 week period 52 week period ended 30 March 2024
ended 30
September 2023
£'000 £'000 £'000
Adjusted (loss) / profit before tax (215) 2,403 758
Net IAS 19 pension adjustments
- current service costs 36 202 6
- finance costs (427) (386) (753)
Exceptional items - 209 (5,272)
(Loss) / profit before tax (606) 2,428 (5,261)
10. Related parties
There have been no significant changes in the nature of related party
transactions in the period ended 28 September 2024 from that disclosed in the
2024 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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