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CRPR Cropper (james) Plc

250.00
-10.00 (-3.85%)
28 Mar 2024 - Closed
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
  -10.00 -3.85% 250.00 240.00 260.00 260.00 238.00 260.00 26,694 13:48:16
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Paper Mills 130.45M 516k 0.0540 46.30 23.89M

Cropper(James) PLC Replacement - Half-year Report (4736W)

14/11/2017 12:41pm

UK Regulatory


Cropper (james) (LSE:CRPR)
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TIDMCRPR

RNS Number : 4736W

Cropper(James) PLC

14 November 2017

The following amendment has been made to the announcement of Interim Results released at 7.00 am on 14 November 2017 under RNS No 3786W. The Record Date for the interim dividend is 1 December 2017, and not 30 November 2017 as previously stated. All other details remain unchanged. The full corrected text of the announcement is set out below.

James Cropper plc

(the "Company")

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

Half year results to 30 September 2017

 
                                                 Half year       Half year     Full year 
                                           to 30 September    to 1 October    to 1 April 
                                                      2017            2016          2017 
                                                      GBPm            GBPm          GBPm 
 Revenue                                              47.4            45.4          92.4 
 Adjusted operating profit (excluding 
  IAS19 impact)                                        3.0             2.6           6.9 
 Operating profit                                      2.7             2.3           6.2 
 Adjusted profit before tax (excluding 
  IAS19 impact)                                        2.8             2.4           6.6 
 Impact of IAS19                                     (0.5)           (0.4)         (0.9) 
 Profit before tax                                     2.3             2.0           5.6 
 Earnings per share - basic                          23.1p           17.4p         50.5p 
 Earnings per share - diluted                        22.9p           17.2p         50.0p 
 Dividend per share declared                          2.5p            2.5p         11.8p 
 
 Net borrowings                                      (4.7)           (6.6)         (7.3) 
 Equity shareholders' funds                           23.4            16.0          21.9 
 Gearing % - before IAS 19 deficit                     12%             19%           20% 
 Gearing % - after IAS 19 deficit                      20%             41%           34% 
 Capital expenditure                                   1.3             2.1           5.3 
 

Highlights

   --      Adjusted PBT (prior to IAS 19 impact) at GBP2.8m, up 17% on prior year comparative 
   --      PBT at GBP2.3m, up 14% on prior year comparative 
   --      EPS (diluted) up 33% to 22.9p from 17.2p on prior year comparative 
   --      Revenue in TFP up 20% on prior year comparative. Total revenue up by 4.5% 
   --      TFP is benefitting from increased activity in the sales of products for fuel cells 
   --      Paper launches CupCycling(TM) and focused on strategy to develop mix 
   --      Paper endures high pulp prices and has remained resilient in the first half 
   --      3DP launches Colourform(TM) and has commenced commercial orders 

Mark Cropper, Chairman, commented:

"TFP has delivered its best ever sales performance for a half year and is set to continue growth in the second half. Although Paper is facing severe headwinds from the price of pulp this year, it has so far remained resilient and I am confident that future growth prospects continue to strengthen. 3DP is still at an early stage but its potential is being proven with commercial contracts and increasing interest in the sustainable and aesthetically superior alternative it offers over plastic packaging.

Within the Group we continue to invest significantly in people, markets, innovation and equipment. This will ensure that over the long term the Group has the potential to sustain growth across all its businesses. In the nearer term, the full year is expected to deliver in line with the Board's expectations."

Enquiries:

 
 Isabelle Maddock, Group          Robert Finlay, Richard Johnson, 
  Finance Director                 Henry Willcocks 
 James Cropper PLC (AIM:CRPR.L)   Stockdale Securities Limited 
 Telephone: +44 (0) 1539          Telephone: +44 (0) 20 7601 6100 
  722002 
 www.cropper.com                  www.stockdalesecurities.com 
 
 
                                                 Half year       Half year     Full year 
                                           to 30 September    to 1 October    to 1 April 
                                                      2017            2016          2017 
 Summary of results                                GBP'000         GBP'000       GBP'000 
 Revenue                                            47,446          45,397        92,363 
 
 Adjusted operating profit (excluding 
  IAS19 impact)                                      2,973           2,567         6,869 
 
 Operating profit                                    2,688           2,304         6,188 
 
 Adjusted profit before tax (excluding 
  IAS19 impact)                                      2,837           2,432         6,566 
 
 Impact of IAS19                                     (536)           (407)         (926) 
 
 Profit before tax                                   2,301           2,025         5,640 
---------------------------------------  -----------------  --------------  ------------ 
 
 
                                                  Half year       Half year     Full year 
                                            to 30 September    to 1 October    to 1 April 
                                                       2017            2016          2017 
                                                    GBP'000         GBP'000       GBP'000 
 Revenue 
 James Cropper Paper                                 35,283          35,279        71,024 
 James Cropper 3D Products                               43               -             7 
 
 Technical Fibre Products                            12,120          10,118        21,332 
----------------------------------------  -----------------  --------------  ------------ 
                                                     47,446          45,397        92,363 
 
 Adjusted operating profit (excluding 
  IAS19 impact)                                       2,973           2,567         6,869 
 Net interest (excluding IAS19 impact)                (136)           (142)         (283) 
----------------------------------------  -----------------  --------------  ------------ 
 Adjusted profit before tax (excluding 
  IAS19 impact)                                       2,837           2,425         6,586 
 Exceptional costs                                        -               7          (20) 
----------------------------------------  -----------------  --------------  ------------ 
 Adjusted profit before tax (excluding 
  IAS19 impact)                                       2,837           2,432         6,566 
 
 IAS19 pension adjustments 
 Net current service charge against 
  operating profits                                   (285)           (270)         (661) 
 Finance costs charged against interest               (251)           (137)         (265) 
----------------------------------------  -----------------  --------------  ------------ 
                                                      (536)           (407)         (926) 
----------------------------------------  -----------------  --------------  ------------ 
 Profit before tax                                    2,301           2,025         5,640 
----------------------------------------  -----------------  --------------  ------------ 
 
 
 Balance sheet summary                         Half year       Half year     Full year 
                                         to 30 September    to 1 October    to 1 April 
                                                    2017            2016          2017 
                                                 GBP'000         GBP'000       GBP'000 
 Non-pension assets - excluding 
  cash                                            63,331          56,021        63,374 
 Non-pension liabilities - excluding 
  borrowings                                    (20,519)        (15,286)      (18,503) 
-------------------------------------  -----------------  --------------  ------------ 
                                                  42,812          40,735        44,871 
 
 Net IAS19 pension deficit (after 
  deferred tax)                                 (14,728)        (18,072)      (15,620) 
-------------------------------------  -----------------  --------------  ------------ 
                                                  28,084          22,663        29,251 
 Net borrowings                                  (4,685)         (6,621)       (7,364) 
-------------------------------------  -----------------  --------------  ------------ 
 
   Equity shareholders' funds                     23,399          16,042        21,887 
 Gearing % - before IAS19 deficit                    12%             19%           20% 
 Gearing % - after IAS19 deficit                     20%             41%           34% 
 Capital expenditure                               1,252           2,123         5,315 
 

Dear Shareholders

I am pleased to report that James Cropper PLC recorded a 17% increase in adjusted profit before tax (excluding the impact of IAS 19) of GBP2.8m for the first half of the current financial year. This compares to GBP2.4m in the prior year. After the impact of IAS19, profit before tax is GBP2.3m, up from GBP2m in the prior comparative period. Meanwhile, Group revenues have increased by 4.5%.

The Group continues to experience increased pulp prices as first noted at the AGM in July. Since then prices have continued to rise, with corresponding impacts on margins in the Paper division. Nevertheless, Paper has so far been able to sustain profit levels compared to the prior year. Meanwhile, TFP profits have grown in the period. Finally, 3DP has commenced full-scale production on receipt of its first commercial contracts.

James Cropper Paper ("Paper")

Paper revenues have been maintained compared to the comparable period last year, with the UK experiencing a small planned downturn in sales and the US picking up contracts in digital and packaging, which are delivering growth.

The paper division has recently launched CupCycling(TM), a closed loop system which recycles post-consumer coffee cups into luxury bags. Our launch partner for this new capability was Selfridges and the offer is generating significant interest from industry and customers.

As noted above, during the first half and into the second half, pulp prices have placed downward pressure on our margins. Accordingly, profit growth for this business for the full year will be challenging.

Technical Fibre Products ("TFP")

TFP grew revenue by 20% over the comparable period last year. Double digit growth was achieved in aerospace, defence and fuel cell markets.

With regards to the latter, TFP supplies carbon fibre based substrates, which are used as the basis for manufacturing GDL (Gas Diffusion Layer) parts for fuel cells. TFP supplies substrate for various fuel cell technologies predominantly in Europe and the USA. After many years of development, this market is beginning to deliver commercial products.

TFP has over 30 years of experience in designing and manufacturing bespoke advanced non-woven materials for a variety of end uses and market sectors and continues to see significant growth potential through partnerships with corporations and institutions. The group has outstanding technical and marketing expertise and expects continued growth in the second half and beyond.

James Cropper 3D Products ("3DP")

3DP has launched Colourform(TM), a product range offering renewable, recyclable moulded fibre packaging in almost limitless colours, shapes and surface finishes. Colourform(TM) provides a sustainable alternative to plastic packaging and is beginning to catch the imagination of global and domestic brands.

The production lines are fulfilling a number of commercial contracts which will aid this year's start up performance. The Division has a larger number of projects in the development pipeline. Capacity with existing production equipment is satisfactory to meet initial demand however the Group fully expects to invest further in due course as the attention and demand for the differentiated product offer grows. The Board remains confident that 3DP provides another significant growth platform for the Group.

Pension

The Group operates three pension schemes with close to 60% of employees holding a defined contribution personal payment plan. The Group operates two funded pension schemes providing defined benefits, for a decreasing number of its employees. The IAS19 valuations, for the defined benefit schemes as at 30 September 2017, revealed a combined deficit of GBP18.0m, compared with GBP18.8m as at 1 April 2017. After deferred taxation the net deficit stands at GBP14.7m.

Earnings per share and Dividend

Diluted earnings per share increased to 22.9 pence, compared to 17.2 pence in the prior year comparative period.

The Board have declared an interim dividend of 2.5p per share (2016: 2.5p). The final dividend for the year to 31 March 2018 will be subject to shareholder approval at the AGM on 25 July 2018.

Outlook

TFP has delivered its best ever sales performance for a half year and is set to continue growth in the second half. Although Paper is facing severe headwinds from the price of pulp this year, it has so far remained resilient and I am confident that future growth prospects continue to strengthen. 3DP is still at an early stage but its potential is being proven with commercial contracts and increasing interest in the sustainable and aesthetically superior alternative it offers over plastic packaging.

Within the Group we continue to invest significantly in people, markets, innovation and equipment. This will ensure that over the long term the Group has the potential to sustain growth across all its businesses. In the nearer term, the full year is expected to deliver in line with the Board's expectations.

Mark Cropper

Chairman

JAMES CROPPER PLC

UN-AUDITED STATEMENT OF COMPREHENSIVE INCOME

 
                                            26 week period  26 week period  52 week period 
                                           to 30 September    to 1 October    to 1 April 
                                                      2017            2016       2017 
----------------------------------------  ----------------  --------------  -------------- 
                                                   GBP'000         GBP'000         GBP'000 
Continuing operations 
Revenue                                             47,446          45,397          92,363 
----------------------------------------  ----------------  --------------  -------------- 
Operating profit                                     2,688           2,304           6,188 
 
Finance costs 
Interest payable and similar charges                 (391)           (279)           (548) 
Interest receivable and similar 
 income                                                  4               -               - 
Profit before taxation                               2,301           2,025           5,640 
 
Taxation                                             (112)           (405)           (910) 
----------------------------------------  ----------------  --------------  -------------- 
Profit for the period                                2,189           1,620           4,730 
Earnings per share - basic                           23.1p           17.4p           50.5p 
Earnings per share - diluted                         22.9p           17.2p           50.0p 
Dividend declared in the period 
 - pence per share                                    2.5p            2.5p           11.8p 
 
 
  OTHER COMPREHENSIVE INCOME 
Profit for the period                                2,189           1,620           4,730 
----------------------------------------  ----------------  --------------  -------------- 
 
  Items that are or may be reclassified 
  to profit or loss 
Foreign currency translation                            55             189             224 
Loss on interest rate hedge                              -               -             (9) 
 
  Items that will never be reclassified 
  to profit or loss 
Retirement benefit liabilities - 
 actuarial gain/(loss)                                 689        (14,715)        (11,386) 
Deferred tax on actuarial (gain)/loss 
 on retirement benefit liabilities                   (124)           2,796           1,847 
Income tax on other comprehensive 
 income                                                  -               -               - 
----------------------------------------  ----------------  --------------  -------------- 
Other comprehensive income/(expense) 
 for the year                                          620        (11,730)         (9,324) 
----------------------------------------  ----------------  --------------  -------------- 
Total comprehensive income for the 
 period attributable to equity holders 
 of the Company                                      2,809        (10,110)         (4,594) 
----------------------------------------  ----------------  --------------  -------------- 
 

JAMES CROPPER PLC

UN-AUDITED STATEMENT OF FINANCIAL POSITION

 
                                  30 September   1 October 2016      1 April 2017 
                                          2017 
                                       GBP'000          GBP'000           GBP'000 
-------------------------------  -------------  ---------------  ---------------- 
Assets 
Intangible assets                          509              126               569 
Property, plant and equipment           26,369           24,932            26,572 
Deferred tax assets                      2,303            2,901             2,270 
-------------------------------  -------------  ---------------  ---------------- 
Total non- current assets               29,181           27,959            29,411 
-------------------------------  -------------  ---------------  ---------------- 
Inventories                             14,471           14,354            14,097 
Trade and other receivables             21,982           16,609            23,066 
Cash and cash equivalents                5,911            3,426             1,921 
Total current assets                    42,364           34,389            39,084 
-------------------------------  -------------  ---------------  ---------------- 
 
  Total assets                          71,545           62,348            68,495 
-------------------------------  -------------  ---------------  ---------------- 
Liabilities 
Trade and other payables                19,660           13,563            18,493 
Other financial liabilities                 10                -                 9 
Loans and borrowings                     1,001              792             1,570 
Current tax liabilities                   (81)              385                 1 
-------------------------------  -------------  ---------------  ---------------- 
Total current liabilities               20,590           14,740            20,073 
-------------------------------  -------------  ---------------  ---------------- 
 
  Long-term borrowings                   9,595            9,255             7,715 
Retirement benefit liabilities          17,961           22,311            18,820 
Total non-current liabilities           27,556           31,566            26,535 
-------------------------------  -------------  ---------------  ---------------- 
 
  Total liabilities                     48,146           46,306            46,608 
-------------------------------  -------------  ---------------  ---------------- 
Equity 
-------------------------------  -------------  ---------------  ---------------- 
Share capital                            2,370            2,364             2,367 
Share premium                            1,472            1,465             1,472 
Translation reserve                        657              567               602 
Reserve for own shares                   (970)            (651)             (853) 
Retained earnings                       19,870           12,297            18,299 
-------------------------------  -------------  ---------------  ---------------- 
Total shareholders' equity              23,399           16,042            21,887 
-------------------------------  -------------  ---------------  ---------------- 
 
  Total equity and liabilities          71,545           62,348            68,495 
-------------------------------  -------------  ---------------  ---------------- 
 

JAMES CROPPER PLC

UN-AUDITED STATEMENT OF CASH FLOWS

 
                                                 26 week period              26 week period         52 week period 
                                                to 30 September                to 1 October             to 1 April 
                                                           2017                        2016                   2017 
---------------------------------------------  ----------------  --------------------------  --------------------- 
                                                        GBP'000                     GBP'000                GBP'000 
Cash flows from operating activities 
Net profit                                                2,189                       1,620                  4,730 
Adjustments for: 
Tax                                                         112                         405                    910 
Depreciation and amortisation                             1,363                       1,099                  2,297 
Net IAS 19 pension adjustments within 
 Statement of comprehensive income                          536                         407                    926 
Past service pension deficit payments                     (706)                       (681)                (1,362) 
Foreign exchange differences                                 38                         112                     84 
Loss on disposal of property, plant 
 and equipment                                                -                          15                     14 
Profit on disposal of investments                             -                       (178)                      - 
Net bank interest expense                                   136                         142                    282 
Share based payments                                        186                         142                    283 
Changes in working capital: 
 (Increase) / decrease in inventories                     (408)                       (150)                    105 
Decrease / (increase) in trade and other 
 receivables                                                408                       2,971                (4,113) 
Increase / (decrease) in trade and other 
 payables                                                 1,363                     (1,526)                  3,932 
Interest received                                             5                           1                      2 
Interest paid                                             (140)                       (148)                  (293) 
Tax paid                                                  (356)                       (657)                (1,081) 
---------------------------------------------  ----------------  --------------------------  --------------------- 
Net cash generated from operating activities              4,726                       3,574                  6,716 
Cash flows from investing activities 
Purchase of intangible assets                              (19)                           -                  (486) 
Purchases of property, plant and equipment              (1,253)                     (2,123)                (4,828) 
Profit on disposal of investments                             -                         178                      - 
Proceeds from sale of property, plant 
 and equipment                                                -                           2                      4 
Net cash used in investing activities                   (1,272)                     (1,943)                (5,310) 
Cash flows from financing activities 
Proceeds from issue of ordinary shares                        3                         444                    454 
Proceeds from issue of new loans                          2,456                       2,451                  2,450 
Repayment of borrowings                                   (903)                     (3,179)                (4,115) 
Purchase of LTIP investments                              (117)                       (479)                  (510) 
Dividends paid to shareholders                            (864)                       (648)                  (881) 
---------------------------------------------  ----------------  --------------------------  --------------------- 
Net cash generated / (used) in financing 
 activities financingactactivitiesactivities                575                     (1,411)                (2,602) 
Net increase / (decrease) in cash and 
 cash equivalents                                         4,029                         220                (1,196) 
Effect of exchange rate fluctuations 
 on cash held                                              (39)                          20                   (69) 
---------------------------------------------  ----------------  --------------------------  --------------------- 
Net increase / (decrease) in cash and 
 cash equivalents                                         3,990                         240                (1,265) 
Cash and cash equivalents at the start 
 of the period                                            1,921                       3,186                  3,186 
Cash and cash equivalents at the end 
 of the period                                            5,911                       3,426                  1,921 
Cash and cash equivalents consists of: 
Cash at bank and in hand                                  5,911                       3,426                  1,921 
---------------------------------------------  ----------------  --------------------------  --------------------- 
 

JAMES CROPPER PLC

STATEMENT OF CHANGES IN EQUITY

 
                         Share              Share       Translation 
                       capital            premium           reserve     Own shares   Retained earnings           Total 
------------------  ----------  -----------------  ----------------  -------------  ------------------  -------------- 
                       GBP'000            GBP'000           GBP'000        GBP'000             GBP'000         GBP'000 
------------------  ----------  -----------------  ----------------  -------------  ------------------  -------------- 
2 April 2016             2,306              1,079               378          (343)              23,273          26,693 
Profit for the 
 period                      -                  -                 -              -               4,730           4,730 
Exchange 
 differences                 -                  -               224              -                   -             224 
Actuarial losses 
 on retirement 
 benefit 
 liabilities (net 
 of 
 deferred tax)               -                  -                 -              -             (9,539)         (9,539) 
Loss on interest 
 rate hedge                  -                  -                 -              -                 (9)             (9) 
------------------  ----------  -----------------  ----------------  -------------  ------------------  -------------- 
Total other 
 comprehensive 
 income                      -                  -               224              -             (9,548)         (9,548) 
Dividends paid               -                  -                 -              -               (881)           (881) 
Share based 
 payment charge              -                  -                 -              -                 283             283 
Tax on share 
 options                     -                  -                 -              -                 634             634 
Proceeds from 
 issue of ordinary 
 shares                     61                393                 -              -                   -             454 
Distribution of 
 own shares                  -                  -                 -            192               (192)               - 
Consideration paid 
 for own 
 shares                      -                  -                 -          (702)                   -           (702) 
------------------  ----------  -----------------  ----------------  -------------  ------------------  -------------- 
Total 
 contributions by 
 and 
 distributions to 
 owners of 
 the Group                  61                393                 -          (510)               (156)           (212) 
------------------  ----------  -----------------  ----------------  -------------  ------------------  -------------- 
 
 
  At 1 April 2017        2,367              1,472               602          (853)              18,299          21,887 
Profit for the 
 period                      -                  -                 -              -               2,189           2,189 
Exchange 
 differences                 -                  -                55              -                   -              55 
Actuarial gains on 
 retirement 
 benefit 
 liabilities (net 
 of 
 deferred tax)               -                  -                 -              -                 565             565 
Total other 
 comprehensive 
 income                      -                  -                55              -                 565             620 
Dividends paid               -                  -                 -              -               (864)           (864) 
Share based 
 payment charge              -                  -                 -              -                 183             183 
Proceeds from 
 issue of ordinary 
 shares                      3                  -                 -              -                   -               3 
Distribution of 
 own shares                  -                  -                 -            324               (502)           (178) 
Consideration paid 
 for own 
 shares                      -                  -                 -          (441)                   -           (441) 
------------------  ----------  -----------------  ----------------  -------------  ------------------  -------------- 
Total 
 contributions by 
 and 
 distributions to 
 owners of 
 the Group                   3                  -                 -          (117)             (1,183)         (1,297) 
------------------  ----------  -----------------  ----------------  -------------  ------------------  -------------- 
 
  At 30 September 
  2017                   2,370              1,472               657          (970)              19,870          23,399 
------------------  ----------  -----------------  ----------------  -------------  ------------------  -------------- 
 

JAMES CROPPER PLC

NOTES TO THE UN-AUDITED INTERIM RESULTS

   1.     Basis of the preparation of IFRS financial information 

a. These interim results have been prepared in accordance with the historical cost convention, as modified by the revaluation of land and buildings, and derivative financial instruments, and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union (with the exception of IAS 34, Interim Financial Reporting) and International Financial Reporting Interpretation Committee ("IFRIC") interpretations and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

All references to:

Non GAAP measures "(excluding IAS19 impact)" have been used to understand and compare the performance of the Group excluding the volatility of the pension adjustments under IAS19.

b. The Group's policy is to maintain the ability to continue as a going concern, in order to provide returns to the shareholder and benefits to other stakeholders. Accordingly the going concern basis has been adopted in preparing these interim results.

   2.    Interim Statement 

a. The summarised results for the half-year to 30 September 2017, which have not been audited or reviewed, have been prepared in accordance with the accounting policies adopted in the accounts for the 52 week year ended 1 April 2017.

b. The financial information set out above does not constitute statutory accounts within the meaning of the Companies Act 2006. The figures for the 52 week year ended 1 April 2017 are an extract of the full accounts for that year, which have been filed with the Registrar of Companies and on which the auditors gave an unqualified opinion.

   c.    A copy of the interim statement is available on our website (www.cropper.com). 
   3.    Earnings per share 

Basic earnings per share for the half year to 30 September 2017 have been calculated by dividing the profits attributable to ordinary shareholders by 9,470,339 (2016: 9,284,126) ordinary shares, being the weighted average number of ordinary shares during the period.

   4.    Dividend 

A net interim dividend of 2.5p per Ordinary Share (2016: 2.5p per share) will be paid on 12 January 2018 to holders on the register at the close of business on 1 December 2017, with the last day for DRIP elections being 15 December 2017. The dividend relating to the 52 week year to 1 April 2017 was made up of an interim payment of GBP233,000 (2.5p per share) and a final dividend payment of GBP864,000 (9.3p per share). The dividend is payable in cash. Shareholders have the opportunity to elect to reinvest their cash dividend and purchase existing shares in the Company through a Dividend Reinvestment Plan.

   5.    Pensions 

IAS19 regards a sponsoring company and its pension schemes as a single accounting entity rather than two or more separate legal entities. The actuarial valuation is the starting point for the creation of the IAS19 accounting entity. The valuation determines the net position of a pension scheme, i.e. the difference between its assets and liabilities. The net position, surplus or deficit, is brought onto the sponsoring company's statement of financial position such that Reserves are immediately adjusted by the net position reduced by deferred tax. This obviously results in either an increase or decrease in the net asset value of the sponsoring company. At subsequent period-ends the movement in value from the previous valuation is expressed in the following component parts:

Statement of comprehensive income

Operating costs

Current service charge, being the cost of benefits earned in the current period shown net of employees' contributions.

-- Past service costs, being the costs of benefit improvements.

-- Curtailment and settlement costs.

Finance costs, being the net of

-- Expected return on pension scheme assets.

-- Interest cost on the accrued pension scheme liabilities.

Other comprehensive income

Actuarial gains and losses arising from variances against previous actuarial assumptions.

The above items are offset by actual contributions paid by the employer in the period.

IAS19 deficits are shown below at the corresponding financial position dates.

 
                                                           Half year                                 Full year 
         IAS19 Deficit                                            to           Half year to                 to 
                                                        30 September 
                                                                2017         1 October 2016       1 April 2017 
-------------------------------------------------  -----------------  ---------------------  ----------------- 
                                                            GBP'000            GBP'000                GBP'000 
                           Current service charge              (587)                  (534)            (1,190) 
 
                Future service contributions paid                302                    264                529 
 
         Net impact on operating profit                        (285)                  (270)              (661) 
 
                                    Finance costs              (251)                  (137)              (265) 
 
         Net impact on profit and loss account                 (536)                  (407)              (926) 
 
          Past service deficit contributions paid                706                    681              1,362 
 
                       Actuarial (losses) / gains                689               (14,715)           (11,386) 
 
         Opening deficit                                    (18,820)                (7,870)            (7,870) 
 
         Closing deficit                                    (17,961)               (22,311)           (18,820) 
 
                                Deferred taxation              3,233                  4,239              3,200 
 
         Net deficit                                        (14,728)               (18,072)           (15,620) 
-------------------------------------------------  -----------------  ---------------------  ----------------- 
 
 

It should be noted that the assumptions underlying the IAS19 valuation are based on financial conditions at the financial position date. As market values of the scheme assets and the discount factors applied to the scheme liabilities will fluctuate, this method of valuation will often lead to large variations in the "pension balance" from period to period. Pension liabilities are discounted at the current rate of return on an AA rated quality corporate bond of equivalent currency and term. The actual contributions paid by the Group to its two final salary schemes are determined by the actuaries' "on-going" valuation.

 
                                                      Half year                                Full year 
         Profit before tax                                   to           Half year to                to 
                                                   30 September 
                                                           2017         1 October 2016      1 April 2017 
---------------------------------------------  ----------------  ---------------------  ---------------- 
                                                        GBP'000           GBP'000                GBP'000 
         Adjusted profit before tax prior to 
          IAS 19                                          2,837                  2,432             6,566 
 
         Net pension adjustment 
 
                       Current service charge             (587)                  (534)           (1,190) 
 
            Future service contributions paid               302                    264               529 
 
         Net impact on operating profit                   (285)                  (270)             (661) 
 
                                Finance costs             (251)                  (137)             (265) 
 
         Net impact on profit before tax                  (536)                  (407)             (926) 
 
         Profit before tax                                2,301                  2,025             5,640 
---------------------------------------------  ----------------  ---------------------  ---------------- 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR GGGQWGUPMGPC

(END) Dow Jones Newswires

November 14, 2017 07:41 ET (12:41 GMT)

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