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CRPR Cropper (james) Plc

305.00
0.00 (0.00%)
Last Updated: 08:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Cropper (james) Plc LSE:CRPR London Ordinary Share GB0002346053 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 305.00 290.00 320.00 305.00 305.00 305.00 0.00 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Paper Mills 130.45M 516k 0.0540 56.48 29.14M

Cropper(James) PLC Final Results (2585D)

25/06/2019 7:00am

UK Regulatory


Cropper (james) (LSE:CRPR)
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TIDMCRPR

RNS Number : 2585D

Cropper(James) PLC

25 June 2019

James Cropper PLC

The advanced materials and paper products Group, is pleased to announce its

Preliminary results for the 52 weeks ended 30 March 2019

 
                                                         52 weeks 
                                             52 weeks       ended 
                                             ended 30    31 March 
                                           March 2019        2018 
                                                 GBPm        GBPm 
 Revenue                                        101.1        96.3 
 Adjusted operating profit (excluding 
  IAS19 impact)                                   4.3         6.1 
 Operating profit                                 3.4         5.4 
 Adjusted profit before tax (excluding 
  IAS19 impact)                                   4.0         5.8 
 Impact of IAS19                                (1.4)       (1.3) 
 Profit before tax                                2.6         4.5 
 Earnings per share - basic                     24.3p       43.3p 
 Dividend per share declared                    13.5p       13.5p 
 
 Net borrowings                                 (8.6)       (4.8) 
 Equity shareholders' funds                      21.3        23.3 
 Gearing % - before IAS 19 deficit                21%         12% 
 Gearing % - after IAS 19 deficit                 40%         21% 
 Capital expenditure                              5.2         1.9 
 

Highlights

   --      Group revenue exceeds GBP100m for the first time with growth in all divisions. 
   --      Adjusted PBT (excluding IAS 19 impact) at GBP4.0m 
   --      Continued higher pulp prices over 2019 impacting profitability for the year. 
   --      Paper to become more resilient to pulp market, delivering profitable growth. 
   --      TFP on schedule to add 50 % capacity. 
   --      Colourform: major contracts have gone live since the period end. 
   --      Dividend maintained at 13.5p. 

Mark Cropper, Chairman, commented:

"The strength of the Group remains strong with record revenues, product mix improvements, investment on the increase and sound EBITDA levels providing clear headroom against our covenants."

"For the second year in succession pulp prices have outstripped market expectations, increasing cost pressures on our paper business by over GBP6.5m over two years."

"I remain confident that we are deploying and evolving the right strategies in this regard and this will ensure sustained - and sustainable - growth for the long term."

Enquiries:

 
 Isabelle Maddock, Group          Robert Finlay, Richard Johnson, 
  Finance Director                 Henry Willcocks 
 James Cropper PLC (AIM:CRPR.L)   Shore Capital 
 Telephone: +44 (0) 1539          Telephone: +44 (0) 20 7601 6100 
  722002 
 www.cropper.com 
 

The Annual General Meeting of the Company will be held at 11.00am on Wednesday 31 July 2019 at the Bryce Institute, Burneside, Kendal, Cumbria.

 
                                          52 weeks ended   52 weeks ended 
                                           30 March 2019    31 March 2018 
 Summary of results                              GBP'000          GBP'000 
 Revenue                                         101,095           96,312 
 
 Adjusted operating profit (excluding 
  IAS19 impact)                                    4,262            6,133 
 
 Adjusted profit before tax (excluding 
  IAS19 impact)                                    3,962            5,825 
 
 Impact of IAS19                                 (1,386)          (1,284) 
 
 Profit before tax                                 2,576            4,541 
---------------------------------------  ---------------  --------------- 
 
 
                                           52 weeks ended   52 weeks ended 
                                            30 March 2019    31 March 2018 
                                                  GBP'000          GBP'000 
 Revenue 
 James Cropper Paper                               74,318           71,237 
 James Cropper 3D Products                            290              166 
 Technical Fibre Products                          26,487           24,909 
----------------------------------------  ---------------  --------------- 
                                                  101,095           96,312 
 
 Adjusted operating profit (excluding 
  IAS19 impact)                                     4,262            6,133 
 Net interest (excluding IAS19 impact)              (300)            (308) 
----------------------------------------  ---------------  --------------- 
 Adjusted profit before tax (excluding 
  IAS19 impact)                                     3,962            5,825 
 
 IAS19 pension adjustments 
 Net current service charge against 
  operating profits                                 (854)            (695) 
 Finance costs charged against interest             (532)            (589) 
----------------------------------------  ---------------  --------------- 
                                                  (1,386)          (1,284) 
----------------------------------------  ---------------  --------------- 
 Profit before tax                                  2,576            4,541 
----------------------------------------  ---------------  --------------- 
 

The IAS 19 pension adjustments are explained in detail in the Financial Review section of the Annual Report. The total amount excluded from the IAS pension Charge is GBP1,386,000 (2018: GBP1,284,000). The adjustment, which we refer to in these accounts as the "IAS 19 impact" represents the diff

erence 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 EBITDA and EPS targets used in management incentive schemes

The IAS 19 pension adjustment GBP1,386,000 (2018: GBP1,284,000) comprises:

 
                              Period ended 30 March   Period ended 31 March 
                                               2019                    2018 
                                            GBP'000                 GBP'000 
 Current service 
  charge                                      1,423                   1,285 
 Normal contributions                         (569)                   (590) 
 Interest charge                                532                     589 
---------------------------  ----------------------  ---------------------- 
 IAS 19 pension adjustment                    1,386                   1,284 
---------------------------  ----------------------  ---------------------- 
 
 
 Balance sheet summary                  As at 30 March   As at 31 March 
                                                  2019             2018 
                                               GBP'000          GBP'000 
 Non-pension assets - excluding 
  cash                                          64,871           59,899 
 Non-pension liabilities - excluding 
  borrowings                                  (16,236)         (15,585) 
-------------------------------------  ---------------  --------------- 
                                                48,635           44,314 
 
 Net IAS19 pension deficit (after 
  deferred tax)                               (18,798)         (16,162) 
-------------------------------------  ---------------  --------------- 
                                                29,837           28,152 
 Net borrowings                                (8,561)          (4,806) 
-------------------------------------  ---------------  --------------- 
 
   Equity shareholders' funds                   21,276           23,346 
 Gearing % - before IAS19 deficit                  21%              12% 
 Gearing % - after IAS19 deficit                   40%              21% 
 Capital expenditure                             5,229            1,935 
 

Chairman's Letter

Dear Shareholders,

This has been another challenging year for the Group, with profit before tax falling by 43% to GBP2.6m. As detailed in the Finance Director's review section of the Annual Report, the dominant headwind has continued to be pulp cost increases. For the second year in succession these have outstripped market expectations, increasing cost pressures on our Paper business by over GBP6.5m over two years. It has been impossible to pass all of this on within the timeframes, resulting in a loss for Paper of GBP2m in the current period. In addition, Group profits have also been weakened by operating losses within James Cropper 3D Products Ltd ("3DP"), incurred as we scale up our investment to meet anticipated demand for this new subsidiary.

Nevertheless, the strength of the Group remains strong with record revenues, product mix improvements delivering good underlying performance, investment on the increase and sound EBITDA levels providing clear headroom against our covenants. I am particularly pleased to report increased profits within Technical Fibre Products Ltd ("TFP"), with operating profit growing by almost 20% to GBP8.8m, another record for this subsidiary. This was underpinned by revenue growth of 6.3% which itself was spread across all products and markets.

Coupled with positive revenue growth of 4.3% for Paper, Group turnover exceeded GBP100m for the first time. Positively, the growing demand for our products continues to become more global. Exports edged upwards to 56.3% in the current year, although this only tells part of the story: the growth of many of our UK customers has also been export driven, further shielding us from any potential Brexit related weakness in our domestic market.

A positive sense of the progress of the Group can also be gained from a walk around our Burneside site, home to the majority of operations. In the last year we have increased 3DP capacity by 50% and commenced construction of a new TFP machine house, the most significant addition to our operations in 25 years. Both have required reorganisation of other areas, furthering the overall level of activity. There are also more mundane indicators, such as growth in parking provision and a fleet of new trucks in our distinctive green livery. Burneside truly feels like a place on the move.

Rather harder to gauge are all the internal changes in hand, both commercial and operational. Based on the numerous plans in place, I am confident Paper will be restored to profitability in the current financial year and advance thereafter. As well as working carefully with our long term customers to recover margin, Paper is also winning new contracts at improved margins, not least to meet the retail packaging needs of global brands.

Our sustainability credentials are helping in this regard, not least our CupCyclingä papers. Coffee cup waste continues to grow as a source of fibre, and greater use is forecast, supported by internal investment as well as initiatives led by retailers and waste management companies. This is just a start: our Technology & Innovation department is leading a forensic investigation of other sources of waste and related technologies that will hopefully, in time, reduce our reliance on pulp as well as our overall environmental impact. Our footprint will also shortly be lessened by the second rooftop solar installation to be delivered by our partners Burneside Community Energy Ltd. This will double on-site renewable electricity generation.

3DP did not grow as quickly as hoped in the year, owing to the timing of its first significant contracts, but the business is now moving rapidly beyond proof of concept. While the business is bringing exceptional quality and colour to market, transitioning customers from existing packaging options (not least plastic) is taking longer than anticipated. Nevertheless we continue to see great potential, not least in the beauty and cosmetics market. The target is for the business to be cash flow neutral in the current financial year and it will grow to become a significant division for the Group.

TFP continues to advance in aerospace and automotive fuel cell markets with new major contracts agreed and research into lightweight solutions and emerging technologies high on the agenda. We continue to invest in our US and UK research facilities, enhancing TFP's global reputation for quality and technical expertise, and its unique ability to understand, interpret and deliver on customer needs. TFP is well positioned to continue to grow robustly.

Dividend per share

The Board is recommending a final dividend of 11.0 pence per share, bringing the total dividend for the financial period of 13.5 pence per share.

Basic earnings per share in the period fell by 44% to 24.3 pence per share with diluted earnings per share falling by 43% to 24.3 pence per share.

The recommendation to maintain the dividend directly reflects the confidence the Board continues to have in the Company's prospects in the coming years.

Outlook

For all the headwinds of the last two years, not to mention the uncertainty surrounding Brexit, I am pleased to say our long-term aspirations are undiminished. With an eye to the long term, we believe we can be the best in the world at what we do and have kept investment and related recruitment plans on track in support of this, the latter closely tied to apprenticeship and graduate programmes.

There is also much more we can do. Our most valuable asset is our people. Everyone matters in this business and we will only truly succeed if we support each other, and the communities that sustain us, every day. Our work over the last year on the importance of mental health is but one example of this. We have much more to do but our people show us the way. As I witnessed at our annual Pride Awards earlier this year, every thought and idea, however small, can make a difference.

Likewise, albeit on a different note, we will only secure our future as a business if we balance our outputs with the impacts that we, together with the rest of mankind, are having on our planet. We are justly proud of the contribution made by initiatives such as Colourformä and CupCyclingä, but if we are to truly respond to the emergency represented by climate change and declining biodiversity we must do much, much more.

Overall, as we enter our 175(th) year, I feel the business is not getting older so much as younger. That our brightest prospects are ahead of us is also suggested by the sustained growth of R&D investment in recent years. The Board and I are ambitious for our culture of innovation to become even more embedded within each business and function across the Group as it is this that will ultimately ensure our long term success, whether in relation to our products, people or planet. I remain confident that we are deploying and evolving the right strategies in this regard and this will ensure sustained - and sustainable - growth for the long term.

Mark Cropper

Chairman

24 June 2019

Chief Executive's Review

I was pleased to see continued sales growth across each division with the Group now exceeding GBP100 million sales for the first time.

In the period pulp price has continued to increase from the highs of the previous period, raising the overall impact from pulp price to over GBP6.5 million over the past two years. This has impacted the paper division however the underlying performance remains healthy with the progression of an improved value portfolio.

The performance of the Technical Fibre Products division ("TFP") has continued to strengthen with growth across each sector and the results demonstrating another record achievement.

We have continued to invest in James Cropper 3DP ("3DP") adding further capability and capacity. Whilst this has added to the operating costs, it positions the business well as larger commercial contracts are now becoming a reality.

Group profit before tax was GBP2.6m, compared to GBP4.5m in the prior period.

Revenue and Operating Profit

Group revenue for the financial period was GBP101.1m, up 5% on the prior period.

Revenue for James Cropper Paper grew by 4.3% in the period to GBP74.3m with the division generating an operating loss of GBP1.9m, compared to an operating profit of GBP1.5m in the prior period.

Revenue for TFP grew by 6.3% in the period to GBP26.5m and operating profit up 19% at GBP8.9m. The performance of TFP has continued to strengthen with growth across each sector and the results demonstrating another record achievement.

Research and development

Research and development is a fundamental part of our growth strategy, adding to our capability, maintaining our competitiveness and bringing new product lines into our target markets. Some examples of the research and development work undertaken are explained in the Innovation section below. The Group continues to invest in research and development with expenditure in R & D of GBP4.0m this period, compared to GBP2.6m in the prior period.

Growth build from solid foundations

Whilst each business has a unique growth plan, common strategic themes sit at the heart of each plan.

A combination of product and process innovation, technological and capital investment, process and application lead sustainability and the skills and knowledge of our employees build the growth plans of each business.

A Long-term view on Growth

Over many decades James Cropper have provided a focus on the long-term growth of the Company. Today this remains unchanged with all key strategic decisions aligned to the medium to long term growth of the Company.

James Cropper are specialists with each business providing niche solutions in our chosen markets, such as materials essential for a hydrogen fuel cell, a bespoke colour and texture for a luxury brand's packaging, or 3D modelling a sustainable alternative to single use plastics. Our relentless focus on being the best in our field and driving innovation is at the heart of our Company.

Over the past year we have seen growth across each business. TFP continues to experience organic growth across each sector and geography, leading to our next stage of capacity expansion due in mid-2020. Paper's focus on value has delivered growth within chosen markets such as packaging and has been awarded new key contracts from luxury brands.

Colourform has been commercialising the pipeline and whilst supporting existing contracts they have been awarded more significant contracts supporting the global cosmetics market.

Innovation

Over 15% of James Cropper's employees are involved with research and development activities and the company has invested over GBP8 million in the last 3 years.

Some examples of recent developments include: -

-- TFP have developed advanced particulate and fibre metallised coatings to enhance shielding and conductivity properties without compromising weight.

-- Colourform have invested in the latest 3D modelling design capability allowing seamless product design, computer aided design and computer aided manufacture for tool production in order to create high quality and complex moulded fibre products.

-- Paper have developed an environmentally friendly whitening process to lighten consumer waste providing it with a new lease of life as high-quality fine paper.

Investment

The Company has a strong history of targeted strategic investments to implement technology, supporting both product and process developments aligned to each business's growth plans. Recent investments include production capacity expansion for Colourform, specialist cutting technology for Paper and increased TFP capacity for particle plating.

Moving forward further strategic investments are planned and include increased independence from commodity pulp prices with the expansion of Paper's coffee cup recycling capability and additional finishing capacity to support a higher value portfolio, an additional non-woven production line in TFP increasing capacity by 50% and in Colourform the capability to rapid prototype.

Sustainability

Sustainability sits at the heart of each business. Paper and Colourform provide recyclable, reusable and compostable solutions in a 'single-use' market, whilst TFP plays a vital role in providing lightweight solutions for transportation and materials used in green energy such as wind and hydrogen fuel cells.

We are constantly improving our manufacturing processes in order to use less energy and water. Our demand is partially met using hydro and solar energy, but our ambition is to incorporate new and emerging technologies to drive towards carbon neutrality.

James Cropper continues to receive widespread industrial recognition for its work on sustainability, from luxury packaging awards to public recognition from HRH The Prince of Wales.

People

Employees over the generations have built a strong culture of loyalty and care for the products we produce and the community we support. The Company's approach to building skills and talent can be seen at all levels. There are now over 30 employees who are in the process of, or have completed, apprenticeships across multiple disciplines including finance, marketing, HR and engineering.

The graduate intake programme now benefits each business supported by regular recruitment programmes working with high performing universities.

The annual Pride Awards celebrate employees going "above and beyond" demonstrating significant improvements, creativity and selflessly giving time to good causes.

Over the past year the Company has invested in dedicated trainers to support Mental Health. This has resulted in nearly 50 mental health first aiders and over 20 health advocates.

These programmes together with a strong emphasis on training and development underpin all of our initiatives to grow the Company.

Phil Wild

Chief Executive Officer

24 June 2019

CONSOLIDATED INCOME STATEMENT

 
                                           52 week period  52 week period 
                                              to 30 March     to 31 March 
                                                     2019            2018 
-----------------------------------------  --------------  -------------- 
                                                  GBP'000         GBP'000 
 
Revenue                                           101,095          96,312 
Other income                                          614             346 
 
Changes in inventories of finished goods 
 and work in progress                                 798             767 
Raw materials and consumables used               (43,074)        (40,661) 
Energy costs                                      (5,615)         (4,021) 
Employee benefit costs                           (28,183)        (27,314) 
Depreciation and amortisation                     (2,952)         (2,678) 
Other expenses                                   (19,275)        (17,313) 
-----------------------------------------  --------------  -------------- 
Operating Profit                                    3,408           5,438 
Interest payable and similar charges                (965)           (908) 
Interest receivable and similar income                133              11 
Profit before taxation                              2,576           4,541 
Taxation                                            (262)           (451) 
-----------------------------------------  --------------  -------------- 
Profit for the period                               2,314           4,090 
Earnings per share - basic                          24.3p           43.3p 
Earnings per share - diluted                        24.3p           43.0p 
 

OTHER COMPREHENSIVE INCOME

 
 Profit for the period                           2,314   4,090 
--------------------------------------------  --------  ------ 
 Items that are or may be reclassified 
  to profit or loss 
 Exchange differences on translation of 
  foreign operations                             (117)    (82) 
 Cash flow hedges - effective portion 
  of changes in fair value                        (29)      57 
 Items that will never be reclassified 
  to profit or loss 
 Retirement benefit liabilities - actuarial 
  (losses) / gains                             (3,258)   2,593 
 Deferred tax on actuarial losses / (gains) 
  on retirement benefit liabilities                554   (441) 
 Income tax on other comprehensive income            -      91 
--------------------------------------------  --------  ------ 
 Other comprehensive (expense) / income 
  for the period                               (2,850)   2,218 
--------------------------------------------  --------  ------ 
 Total comprehensive (expense) / income 
  for the period 
  Attributable to equity holders of the 
  Company                                        (536)   6,308 
--------------------------------------------  --------  ------ 
 

STATEMENT OF FINANCIAL POSITION

 
                                              Group                            Company 
                                          As at            As at            As at             As at 
                                  30 March 2019    31 March 2018    30 March 2019     31 March 2018 
                                        GBP'000          GBP'000                            GBP'000 
-------------------------------  --------------  ---------------  ---------------  ---------------- 
Assets 
Intangible assets                           365              496              106               112 
Property, plant and equipment            27,639           25,113            1,906             1,732 
Investments in subsidiary 
 undertakings                                 -                -            7,350             7,350 
Deferred tax assets                       2,234            2,053            3,840             3,649 
-------------------------------  --------------  ---------------  ---------------  ---------------- 
Total non-current assets                 30,238           27,662           13,202            12,843 
-------------------------------  --------------  ---------------  ---------------  ---------------- 
Inventories                              16,410           14,854                -                 - 
Trade and other receivables              19,012           18,522           49,323            45,651 
Other financial assets                       24               47               24                47 
Cash and cash equivalents                 2,352            5,557                -             3,004 
Current tax assets                        1,421              867              446               530 
Total current assets                     39,219           39,847           49,793            49,232 
-------------------------------  --------------  ---------------  ---------------  ---------------- 
 
  Total assets                           69,457           67,509           62,995            62,075 
-------------------------------  --------------  ---------------  ---------------  ---------------- 
Liabilities 
Trade and other payables                 14,620           14,328           18,555            21,823 
Loans and borrowings                      1,545            1,600              361                43 
Total current liabilities                16,165           15,928           18,916            21,866 
-------------------------------  --------------  ---------------  ---------------  ---------------- 
 
  Long-term borrowings                    9,368            8,763            4,004             4,070 
Retirement benefit liabilities           22,648           19,472           22,648            19,472 
Total non-current liabilities            32,016           28,235           26,652            23,542 
-------------------------------  --------------  ---------------  ---------------  ---------------- 
 
  Total liabilities                      48,181           44,163           45,568            45,408 
-------------------------------  --------------  ---------------  ---------------  ---------------- 
Equity 
-------------------------------  --------------  ---------------  ---------------  ---------------- 
Share capital                             2,389            2,370            2,389             2,370 
Share premium                             1,588            1,472            1,588             1,472 
Translation reserve                         403              520                -                 - 
Reserve for own shares                  (1,251)          (1,445)          (1,251)           (1,445) 
Retained earnings                        18,147           20,429           14,701            14,270 
-------------------------------  --------------  ---------------  ---------------  ---------------- 
Total shareholders' equity               21,276           23,346           17,427            16,667 
-------------------------------  --------------  ---------------  ---------------  ---------------- 
Total equity and liabilities             69,457           67,509           62,995            62,075 
-------------------------------  --------------  ---------------  ---------------  ---------------- 
 

The Parent Company reported a profit for the period ended 30 March 2019 of GBP4,903,000 (2018: GBP5,422,000).

STATEMENT OF CASH FLOWS

 
                                                   Group                      Company 
                                            52 weeks      52 weeks      52 weeks      52 weeks 
                                            ended 30      ended 31      ended 30      ended 31 
                                          March 2019    March 2018    March 2019    March 2018 
                                             GBP'000       GBP'000       GBP'000       GBP'000 
--------------------------------------  ------------  ------------  ------------  ------------ 
 Cash flows from operating activities 
 Net profit                                    2,314         4,090         4,903         5,422 
 Adjustments for: 
 Tax                                             262           451           321           200 
 Depreciation and amortisation                 2,952         2,678           153           161 
 Net IAS 19 pension adjustments 
  within SCI                                   1,386         1,284         1,386         1,284 
 Past service pension deficit 
  payments                                   (1,468)       (1,413)       (1,468)       (1,413) 
 Foreign exchange differences                  (312)         (626)          (59)           142 
 Profit on disposal of property, 
  plant and equipment                           (12)          (11)             -             - 
 Net bank interest income and 
  expense                                        300           308         (774)         (554) 
 Share based payments                           (49)           341          (49)           341 
 Dividends received from subsidiary 
  companies                                        -             -       (6,000)       (7,500) 
 Increase in inventories                     (1,529)         (807)             -             - 
 (Increase) / decrease in trade 
  and other receivables                      (2,072)         4,400       (5,767)       (1,954) 
 Increase / (decrease) in trade 
  and other payables                           1,659       (4,029)       (1,416)         2,314 
 Tax paid                                       (65)         (839)          (65)         (839) 
--------------------------------------  ------------  ------------  ------------  ------------ 
 Net cash generated from / (used 
  by) operating activities                     3,366         5,827       (8,835)       (2,396) 
 Cash flows from investing activities 
 Purchase on intangible assets                  (67)          (41)          (61)          (22) 
 Purchase of property, plant 
  and equipment                              (5,162)       (1,894)         (608)          (73) 
 Proceeds from sale of property, 
  plant and equipment                             12            12           303             - 
 Dividends received                                -             -         6,000         7,500 
--------------------------------------  ------------  ------------  ------------  ------------ 
 Net cash (used in) / generated 
  from investing activities                  (5,217)       (1,923)         5,634         7,405 
 Cash flows from financing activities 
 Proceeds from issue of ordinary 
  shares                                         135             3           135             3 
 Proceeds from issue of new 
  loans                                        1,568         4,220           768           131 
 Repayment of borrowings                     (1,311)       (2,570)         (848)         (118) 
 Repayment / (issue) of intercompany 
  loans                                            -             -           568       (1,451) 
 Purchase of LTIP investments                  (315)         (441)         (315)         (441) 
 Interest received                               133            11           946           631 
 Interest paid                                 (391)         (320)         (137)          (79) 
 Sale of own shares                              130             -           130             - 
 Dividends paid to shareholders              (1,263)       (1,097)       (1,263)       (1,097) 
--------------------------------------  ------------  ------------  ------------  ------------ 
 Net cash (used in) / generated 
  from financing activities                  (1,314)         (194)          (16)       (2,421) 
 Net (decrease) increase in 
  cash and cash equivalents                  (3,165)         3,710       (3,217)         2,588 
 Effect of exchange rate fluctuations 
  on cash held                                  (40)          (74)         (103)         (110) 
--------------------------------------  ------------  ------------  ------------  ------------ 
 Net (decrease) / increase in 
  cash and cash equivalents                  (3,205)         3,636       (3,320)         2,478 
 Cash and cash equivalents at 
  the start of the period                      5,557         1,921         3,004           526 
 Cash and cash equivalents at 
  the end of the period                        2,352         5,557         (316)         3,004 
 Cash and cash equivalents consists 
  of: 
 Cash at bank and in hand                      2,670         5,557             2         3,004 
 Bank overdraft                                (318)             -         (318)             - 
--------------------------------------  ------------  ------------  ------------  ------------ 
                                               2,352         5,557         (316)         3,004 
--------------------------------------  ------------  ------------  ------------  ------------ 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 
                                             Share        Share    Translation                   Retained 
                                           capital      premium        reserve    Own shares     earnings        Total 
--------------------------------  ----------------  -----------  -------------  ------------  -----------  ----------- 
Group                                      GBP'000      GBP'000        GBP'000       GBP'000      GBP'000      GBP'000 
--------------------------------  ----------------  -----------  -------------  ------------  -----------  ----------- 
At 1 April 2017                              2,367        1,472            602         (853)       15,498       19,086 
Prior year adjustment (i)                        -            -              -             -        (219)        (219) 
At 1 April 2017 restated                     2,367        1,472            602         (853)       15,279       18,867 
--------------------------------  ----------------  -----------  -------------  ------------  -----------  ----------- 
Profit for the period                            -            -              -             -        4,090        4,090 
Exchange differences                             -            -           (82)             -            -         (82) 
Gain on cash flow hedges                         -            -              -             -           57           57 
Actuarial gains on retirement 
 benefit liabilities (net of 
 deferred tax)                                   -            -              -             -        2,152        2,152 
Total other comprehensive income                 -            -           (82)             -        2,209        2,127 
Dividends paid                                   -            -              -             -      (1,097)      (1,097) 
Share based payments                             -            -              -             -          341          341 
Tax on share options                             -            -              -             -        (201)        (201) 
Tax on other comprehensive 
 income                                          -            -              -             -           91           91 
Proceeds from issue of ordinary 
 shares                                      3 97-            -              -             -            -            3 
Sale of own shares                               -            -              -           324        (324)            - 
Consideration paid for own 
 shares                                          -            -              -         (916)        (178)      (1,094) 
--------------------------------  ----------------  -----------  -------------  ------------  -----------  ----------- 
Total contributions by and 
 distributions 
 to owners of the Group                          3            -              -         (592)      (1,368)      (1,957) 
--------------------------------  ----------------  -----------  -------------  ------------  -----------  ----------- 
At 31 March 2018                             2,370        1,472            520       (1,445)       20,210       23,127 
--------------------------------  ----------------  -----------  -------------  ------------  -----------  ----------- 
Prior year adjustment (i)                        -            -              -             -           95           95 
--------------------------------  ----------------  -----------  -------------  ------------  -----------  ----------- 
At 31 March 2018 restated                    2,370        1,472            520       (1,445)       20,305       23,222 
Profit for the period                            -            -              -             -        2,314        2,314 
Exchange differences                             -            -          (117)             -            -        (117) 
Loss on cash flow hedges                         -            -              -             -         (29)         (29) 
Actuarial losses on retirement 
 benefit liabilities (net of 
 deferred tax)                                   -            -              -             -      (2,704)      (2,704) 
Total other comprehensive income                 -            -          (117)             -      (2,733)      (2,850) 
Dividends paid                                   -            -              -             -      (1,263)      (1,263) 
Share based payment charge                       -            -              -             -         (49)         (49) 
Tax on share options                             -            -              -             -         (48)         (48) 
Proceeds from issue of ordinary 
 shares                                         19          116              -             -            -          135 
Sale of own shares                               -            -              -           509        (379)          130 
Consideration paid for own 
 shares                                          -            -              -         (315)            -        (315) 
--------------------------------  ----------------  -----------  -------------  ------------  -----------  ----------- 
Total contributions by and 
 distributions 
 to owners of the Group                         19          116              -           194      (1,739)      (1,410) 
--------------------------------  ----------------  -----------  -------------  ------------  -----------  ----------- 
 
  At 30 March 2019                           2,389        1,588            403       (1,251)       18,147       21,276 
--------------------------------  ----------------  -----------  -------------  ------------  -----------  ----------- 
 

(i) The balance on retained earnings as at 1 April 2017 and 31 March 2018 have been adjusted to reflect the change in the Group's practice following adoption of IFRS 15 Revenue from contracts with customers with regards to recognizing revenue when control of the products is passed to the customer.

 
                                       Share      Share                 Retained 
                                     capital    premium   Own shares    earnings     Total 
 Company                             GBP'000    GBP'000      GBP'000     GBP'000   GBP'000 
---------------------------------  ---------  ---------  -----------  ----------  -------- 
 At 1 April 2017                       2,367      1,472        (853)       7,829    10,815 
 Profit for the period                     -          -            -       5,422     5,422 
 Gain on cash flow hedges                  -          -            -          57        57 
 Actuarial gains on retirement 
  benefit liabilities (net 
  of deferred tax)                         -          -            -       2,152     2,152 
---------------------------------  ---------  ---------  -----------  ----------  -------- 
 Total other comprehensive 
  income                                   -          -            -       2,209     2,209 
 Dividends paid                            -          -            -     (1,097)   (1,097) 
 Share based payment charge                -          -            -         341       341 
 Tax on share options                      -          -            -       (201)     (201) 
 Tax on other comprehensive 
  income                                   -          -            -          91        91 
 Proceeds from issue of ordinary 
  shares                                   3          -            -           -         3 
 Sale of own shares                        -          -          324       (324)         - 
 Consideration paid for own 
  shares                                   -          -        (916)           -     (916) 
---------------------------------  ---------  ---------  -----------  ----------  -------- 
 Total contributions by and 
  distributions to owners of 
  the Group                                3          -        (592)     (1,190)   (1,779) 
---------------------------------  ---------  ---------  -----------  ----------  -------- 
 At 31 March 2018                      2,370      1,472      (1,445)      14,270    16,667 
 Profit for the period                     -          -            -       4,903     4,903 
 Loss on cash flow hedges                  -          -            -        (29)      (29) 
 Actuarial losses on retirement 
  benefit liabilities (net 
  of deferred tax)                         -          -            -     (2,704)   (2,704) 
---------------------------------  ---------  ---------  -----------  ----------  -------- 
 Total other comprehensive 
  income                                   -          -            -     (2,733)   (2,733) 
 Dividends paid                            -          -            -     (1,263)   (1,263) 
 Share based payment charge                -          -            -        (49)      (49) 
 Tax on share options                      -          -            -        (48)      (48) 
 Proceeds from issue of ordinary 
  shares                                  19        116            -           -       135 
 Sale of own shares                        -          -          509       (379)       130 
 Consideration paid for own 
  shares                                   -          -        (315)           -     (315) 
---------------------------------  ---------  ---------  -----------  ----------  -------- 
 Total contributions by and 
  distributions to owners of 
  the Group                               19        116          194     (1,739)   (1,410) 
---------------------------------  ---------  ---------  -----------  ----------  -------- 
 At 30 March 2019                      2,389      1,588      (1,251)      14,701    17,427 
---------------------------------  ---------  ---------  -----------  ----------  -------- 
 

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL 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). The condensed consolidated financial statements of the Company for the 52 weeks ended 30 March 2019, comprise the Company and its subsidiaries (together referred to as the Group).

Statement of compliance

The condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS) as adopted by the European Union (EU). As required by the Disclosure and Transparency Rules of the Financial Services Authority, the condensed consolidated set of financial statements have been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's published consolidated financial statements for the 52 week period ended 30 March 2019. They do not include all the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the 52 week period ended 30 March 2019.

The consolidated financial statements of the Group for the 52 week period ended 30 March 2019 are available upon request from the Company's registered office Burneside Mills, Kendal, Cumbria, LA9 6PZ or at www.cropper.com.

The financial information is presented in Sterling and all values are rounded to the nearest thousand pounds (GBP'000) except where otherwise indicated.

Going concern

The Directors have performed a robust assessment, including review of the forecast for the 52 week period ending 30 March 2019 and longer term strategic forecasts and plans, including consideration of the principal risks faced by the Group and the Company, as detailed in the Group's Annual Report 2018. 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 30 March 2019.

The Group has adopted IFRS 15 'Revenue from contracts with customers' which it sets out in note 10. The Group has adopted IFRS 9 'Financial Instruments' which it sets out in note 11. Neither of these are considered to have a material impact.

   2      Accounting estimates and judgements 

The preparation of the 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 2019.

   3    Risks and uncertainties 

The principal risks and uncertainties which may have the largest impact on performance are the same as disclosed in the 2019 Annual Report on pages 21-25. The principal risks set out in the 2019 Annual Report were:

Employee health and safety; energy price volatility; pulp price volatility and sustainability; exchange rate volatility; pension; Brexit and information security and cyber risk.

The Board considers that the principal risks and uncertainties set out in the 2019 Annual Report remain relevant for the current 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 'Adjusted profit before tax' (profit before tax excluding the impact of IAS 19). The alternative performance measures are reconciled in note 8.

   5    Earnings per share 

The calculation of basic earnings per share is based on earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. The calculation of diluted earnings per share is based on the basic earnings per share adjusted to assume conversion of all dilutive options.

   6    Segmental information 

IFRS 8 Operating Segments - requires that entities adopt the 'management approach' to reporting the financial performance of its operating segments. Management has determined the segments that are reported in a manner consistent with the internal reporting provided to the chief operating decision maker, identified as the Executive Committee that makes strategic decisions. The committee considers the business principally via the four main operating segments, principally based in the UK:

-- James Cropper Paper Products (Paper): comprising:

-- JC Speciality Papers - relates to James Cropper Speciality Papers a manufacturer of specialist paper and boards.

-- JC Converting - relates to James Cropper Converting - a converter of paper.

-- James Cropper 3D Products (Colourform) - a manufacturer of moulded fibre products.

-- Technical Fibre Products (TFP) - a manufacturer of advanced materials.

-- Group Services - comprises central functions providing services to the subsidiary companies.

 
                                                           Operating profit / 
                               Revenue                            (loss) 
                   52 week period   52 week period   52 week period 
                            ended            ended            ended   52 week period 
                         30 March         31 March         30 March         ended 31 
                             2019             2018             2019       March 2018 
                          GBP'000          GBP'000          GBP'000          GBP'000 
 Paper                     74,314           71,237          (1,992)            1,468 
 Colourform                   290              166          (2,462)          (1,639) 
 TFP                       26,487           24,909            8,883            7,449 
 Group services                 -                -          (1,021)          (1,840) 
----------------  ---------------  ---------------  ---------------  --------------- 
                          101,095           96,312            3,408            5,438 
----------------  ---------------  ---------------  ---------------  --------------- 
 
   7    Dividend 

The proposed final dividend of 11.0p (2018: 11.0p) per 25p ordinary share is payable on 9 August 2019, subject to approval by the shareholders at the Annual General Meeting, to those shareholders on the register of the Company at the close of business on 5 July 2019. The dividends recognised in the condensed consolidated statement of changes in equity is the final dividend for the 52 week period ended 31 March 2018 of 11.0p which was paid on 10 August 2018 and the interim dividend for the 52 week period ended 30 March 2019 of 2.5p, which was paid on 11 January 2019.

   8    Retirement benefit obligations 

Movements during the period in the Group's defined benefit pension schemes are set out below:

 
                                       52 week period      52 week period 
                                                ended               ended 
                                        30 March 2019       31 March 2018 
---------------------------------  ------------------  ------------------ 
                                              GBP'000             GBP'000 
    Obligation brought forward               (19,472)            (22,194) 
    Expense recognised in the 
     income statement                         (1,955)             (1,874) 
    Contributions paid to the 
     schemes                                    2,037               2,003 
    Actuarial (losses) and gains              (3,258)               2,593 
---------------------------------  ------------------  ------------------ 
    Obligation carried forward               (22,648)            (19,472) 
---------------------------------  ------------------  ------------------ 
 

During the period an estimate of GBP133,000 for the financial cost to correct the gender inequalities inherent in Guaranteed Minimum Pensions (GMPs) was taken to the Income statement.

   9    Alternative performance measures 
 
                                                                 52 week period ended      52 week period ended 
                                                                        30 March 2019             31 March 2018 
                                                                              GBP'000                   GBP'000 
    Adjusted operating profit                                                   4,262                     6,133 
    Net IAS 19 pension adjustments 
                            - current service costs                           (1,423)                   (1,285) 
                            - future service contributions 
                             paid                                                 569                       590 
-----------------------------------------------------------  ------------------------  ------------------------ 
    Operating profit                                                            3,408                     5,438 
-----------------------------------------------------------  ------------------------  ------------------------ 
 
 
                                                                 52 week period ended      52 week period ended 
                                                                        30 March 2019             31 March 2018 
                                                                              GBP'000                   GBP'000 
    Adjusted profit before tax                                                  3,962                     5,825 
    Net IAS 19 pension adjustments 
                            - current service costs                           (1,423)                   (1,285) 
                            - future service contributions 
                             paid                                                 569                       590 
                            - finance costs                                     (532)                     (589) 
-----------------------------------------------------------  ------------------------  ------------------------ 
    Profit before tax                                                           2,576                     4,541 
-----------------------------------------------------------  ------------------------  ------------------------ 
 

10 IFRS 15 'Revenue from contracts with customers'

With effect from 1 April 2018, the Group has applied IFRS 15, Revenue from contract with customers. IFRS 15 replaces all existing revenue requirements in IFRS and applies to all revenue arising from contracts with customers unless the contracts are within the scope of other standards. The cumulative effect method of adoption has been used, with 2018 comparatives not being restated. The adoption of IFRS 15 has had no material effect on transition and is not expected to materially alter revenue recognition patterns going forward.

Revenue represents income derived from contracts for the provision of goods or services by the Company and its subsidiary undertakings to customers in exchange for consideration in the ordinary course of the Group's business. Upon approval by the parties to a contract, the contract is assessed to identify each promise to transfer either a distinct good or service, or a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. Revenue from the sale of goods is recognised when control of the goods have been transferred to the buyer. Goods are identified as products made from either natural fibres, (e.g. paper or moulded paper products, or man-made fibres, (e.g. highly technical nonwoven products made by the TFP division). In addition, revenue for services are also received (e.g. revenue for design and set up of moulded fibre Colourform products). Any revenue received for such services are recognised over the term of the contract.

Revenue is recognised when:

   --      all significant performance obligations have been met; 

-- the Group retains neither continuing managerial involvement nor effective control over the goods;

-- It is probable that the economic benefits associated with the transaction will flow to the Group;

   --      The amount of revenue can be measured reliable. 

Transfer of control varies depending on the individual terms of the contract of sale. For sales in the UK, transfer of control occurs when the goods are despatched to the customer. However, for some international shipments, transfer of control occurs either upon loading the goods onto the relevant carrier or when the goods have arrived in the overseas port. The point of transfer of control for international shipments is dictated by the terms of each sale.

Although the majority of the group's contracts with customers are not complex, with revenue being fixed for a specific quantity of goods, the Group has identified a number of contracts in which customers are given volume rebates and/or other promotional rebates based on quantities purchased over a contractually agreed period of time. Under IFRS 15, revenue that varies due to rebates or brand support costs is only recognised to the extent that it is highly probable that a significant reversal of that revenue will not occur at the end of the rebate assessment period.

Based on the timing of the agreements entered into with customers, the level of estimation in year-end accruals is insignificant, and as such there is not considered to have been a significant impact on deductions to revenue under IFRS 15.

   11   IFRS 9 'Financial instruments' 

IFRS 9 Financial Instruments, has impacted the way in which the Group accounts for certain financial assets and liabilities. The standard has introduced an expected credit loss model when assessing impairment of financial assets. The Group has applied the simplified model to recognise expected lifetime losses on its trade receivables.

Previously, impairment of trade receivables was based on the ageing of the debt and whether or not credit insurance covered the debt, whilst assessing the likelihood of the debt not being settled.

Impairment provisions for receivables from and to Group undertakings are recognised based on a forward-looking expected credit loss model. The methodology used to determine the amount of the provision is based on whether there has been a significant increase in credit risk since initial recognition of the financial asset. For those where the credit risk has not increased significantly since initial recognition of the financial asset, twelve month expected credit losses along with gross interest income are recognised. For those for which credit risk has increased significantly, lifetime expected credit losses along with gross interest income are recognised. For those that are determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are recognised.

Notwithstanding the high value of trade receivables, the application of IFRS 9 and the expected credit loss impairment model has not had a material effect on the group, due to the fact the most of the Group's trade receivables are covered by Credit insurance and those that are not covered are tightly managed to mitigate the likelihood of any credit loss.

   12   Related parties 

There have been no significant changes in the nature of related party transactions in the period ended 30 March 2019 from that disclosed in the 2018 Annual report.

Statement of Directors' responsibilities

The Directors confirm that these condensed consolidated financial statements have been prepared in accordance with International Financial Reporting standards as adopted by the European Union and that the preliminary 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 period and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the financial period; and

(ii) Material related party transactions in the period 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.cropper.com

Forward-looking statements

Sections of this 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 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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