Interim Results

Cropper(James) PLC
09 November 2023
 

 

 

9 November 2023

 

James Cropper plc

("James Cropper", the "Company" or the "Group")

Interim Results

 

Accelerated growth strategy on track

 

Financial and operational performance drives gross margin expansion and increased profitability in the Group

 

James Cropper plc (AIM: CRPR), a global market leader in advanced materials, luxury packaging and paper products, announces its results for the six months ended 30 September 2023 ('H1 FY24').

 

Financial Headlines:

·    Group revenue broadly in line with the Board's FY24 expectations despite ongoing market headwinds in Paper Products

·    Adjusted operating profit increased to £3.0m (H1 FY23: £0.5m) with gross margin performance and cost management improvement

·    Profit before tax up to £2.4m (H1 FY23: loss £(0.9)m) supported by improved margins, a reduction in IAS 19 pension adjustments and exceptional items

·    Earnings per share up to 19.4p (H1 FY23: loss per share (9.2)p)

·    Interim dividend declared at 3.0p per share (H1 FY23: 2.0p), reflecting the Board's confidence in the ongoing implementation of the accelerated growth strategy

·    Net debt of £13.3m, down £3.3m from £16.6m at FY23 (H1 FY23: £12.2m).

 

Operational Headlines:

·    Accelerated growth strategy on track with progress achieved during the period under review

·    Continued progress made as the Group unifies its business identity under the James Cropper name, with launch ready for Q4 FY24

·    Solid performance in Advanced Materials division;

§ Future Energy's hydrogen offer continues to exceed management's expectations

§ Technical Fibres remains healthy with growth in core customer base

·    Restructuring and consolidation of Paper and Colourform is progressing well

·    New leadership team in place across market-facing segments as well as at a Group level

·    Decarbonisation project advancing to phase one construction, supported by grant funding

·    Luxury Packaging wins internationally acclaimed Formes de Luxe award

 

Future Outlook:

·    Continued growth in Advanced Materials division:

§ Ongoing investment for expansion in the electrolyser manufacturing operations

§ Opportunity pipeline and exploration into new growth markets such as Carbon Capture and Electrolyser OEM

·    Ongoing progress in Paper Products division:

§ Restructuring due to complete in Q4 FY24, delivering further margin improvement

§ Share in target markets maintained and well positioned for anticipated recovery in global demand during FY25.

 

·    The actions taken to date give the Board confidence that the Group is well positioned to deliver increased profitability in FY24 consistent with its expectations and that, in line with the accelerated growth strategy, revenue growth will be delivered from FY25 onwards.

Commenting on the half year results, James Cropper CEO Steve Adams said:

"We have achieved a healthy first half performance with benefits from our accelerated growth strategy now becoming evident, following considerable hard work and commitment by the James Cropper team. 

In spite of ongoing wider macro-economic pressures and softer demand across Paper, the actions taken to streamline the business and focus on higher margin opportunities have helped deliver an improvement in profitability.  Advanced Materials continues to perform well with Future Energy again exceeding expectations.

The continued focus on our unique recovered fibre upcycling capability, moulded fibre luxury packaging offer and pioneering activities in decarbonisation keep us differentiated and relevant with our current and future customers.

Our access to the high growth Future Energy markets with an equally differentiated product and technology offer in Advanced Materials, brings significant opportunity for further growth. We are committed to ongoing investment in our capabilities and capacity with a new phase of expansion in our electrolyser manufacturing operations.

We have also built significant strength in our talent and leadership over the last year and will complement this with more agile systems and processes. With the new leadership team, and our talented global workforce, we are well positioned for greater success; from redefining our Paper Products offer to satisfying global demand for a low carbon economy through cutting edge materials and components in renewable energy.  

While still in the midst of our transformation, we are confident in the future prospects of the business which is reflected in the increase in interim dividend and I look forward to achieving further value for our shareholders as we start the journey to reposition ourselves as one company, unified under the Group name, James Cropper."

 

ENDS

Enquiries:

James Cropper plc

Rosina Merrett

Mob: +44 (0) 7500 083559

www.jamescropper.com

 

Shore Capital - NOMAD and Broker

Robert Finlay, Henry Willcocks, Lucy Bowden

Tel: +44 (0) 20 7601 6100

 

Buchanan Communications - Financial PR

Chris Lane, Charles Ryland, Jamie Hooper, Verity Parker

jamescropper@buchanancomms.co.uk

Tel: +44 (0) 207 466 5000

 

Notes for editors:

 

James Cropper is a market leader in Advanced Materials and Paper Products, centred around four market audiences: Future Energy, Technical Fibres, Luxury Packaging and Creative Papers.

 

A purpose-led business, built upon six generations of the Cropper family, James Cropper has a 600+ international workforce and an operational reach in over 50 countries.

 

Established in 1845, the Group manufactures creative papers, luxury packaging and advanced materials incorporating pioneering non-wovens and electrochemical coatings.

 

James Cropper is a specialist provider of niche solutions tailored to a unique customer specification, ranging from substrates and components in hydrogen electrolysis and fuel cells to bespoke colours and textures in paper and moulded fibre packaging designed to replace single use plastics.

 

The Group operates across multiple markets from luxury retail to renewable energy. It is renowned globally for service, capability, pioneering and multi award-winning commitment to the highest standards of sustainability.

James Cropper's goal is to be operationally net zero by 2030 and to reduce carbon through its entire supply chain to net zero by 2050.

 



 

 

Business review

 

Building on the previous year's strong second half, the first six months of this year show an improved performance.  

 

The economic climate continues to be challenging but overall, profits for the Group were up, with profit before tax of £2.4m (H1 FY23: loss £(0.9)m) and adjusted profit before tax at £2.4m, compared with £nil in the prior comparative period.  This was due to an improved gross margin performance and cost management as well as relief on energy procurement. 

 

The Group continues to make significant progress in repositioning James Cropper as an Advanced Materials and Paper Products business, centred around four target audiences: Future Energy, Technical Fibres, Luxury Packaging and Creative Papers, with the accelerated growth strategy on track to capitalise on the opportunities within its core and emerging end-markets.   

 

A strategy for accelerated growth: 

1.    Profitable growth through new customer acquisition: opportunities to expand in new and existing markets 

2.   World class execution: investment in global systems and functions 

3.   Technology and Innovation: Centre for Innovation will include decarbonisation and waste fibres as well as exploring new ideas  

4.   Leaders in sustainability: recognising our responsibility to reduce and ultimately eliminate our emissions 

5.   Inspiring our people: building a culture of trust, cooperation and involvement 

6.   Build the brand: presenting a more meaningful and relevant face to our increasingly global customer base. 

  

Over this period, the Group strengthened its leadership team with Matthew Ratcliffe joining as General Counsel and Richard Bracewell, internally appointed, as Managing Director of the Paper Products division. As previously announced, Andrew Goody will join the Company and the Board of Directors later this month as Chief Financial and Operations Officer.  

 

The Centre of Innovation function has further progressed the decarbonisation programme with grant funding awarded. The project has advanced to phase one construction to support the build of the Low Carbon Energy Centre which will enable the electrification of the paper manufacturing facility.  

 

Revenue is broadly in line with the Board's expectations with all divisions experiencing positive customer demand, albeit at a lower rate than expected within Paper Products.  

 

Advanced Materials (Future Energy and Technical Fibres)  

 

Revenue for the division is ahead at £19.0m in comparison to last year (H1 FY23: £17.4m). 

 

Future Energy's hydrogen offer continues to exceed management's expectations with profit and demand growing. In North America, electrolyser manufacturers are now beginning to benefit from the new coating line with its ability to shorten supply chain and optimise logistics.

 

Demand within Technical Fibres remains steady, with growth seen in its core customer base.  The activation of the strategic growth programmes is driving a healthy opportunity pipeline with strengthened customer relationships, exploration of new business partnerships and a focus on new growth markets such as Carbon Capture and Electrolyser OEM.

 

Paper Products (Luxury Packaging and Creative Papers)

 

Over the last twelve months, measures have been implemented to build strength and resilience in the division by restructuring and consolidating operations to drive better asset utilisation with increased efficiency and productivity. 

 

The right-sizing of the division and consolidating Colourform into Luxury Packaging and Creative Papers is showing gross margin improvement and productivity gains despite tough market conditions across the industry.  

 

Operating margin has continued to improve, despite the Group no longer applying an energy surcharge and some near term softening in its paper markets. Revenue at £35.6m is broadly in line with the previous year (H1 FY23: £42.0m) (H1 FY23: £38.1m excluding energy surcharge).

 

The Board expects global demand, particularly within Luxury Packaging, to normalise moving into FY25. In line with market expectations, the division will be well positioned for further gross margin improvements with the restructure completed and leaner working practices implemented.

 

The capabilities within Paper have also widened with the new Embossing Centre of Excellence in operation as well as expanding the reclaimed and recycled fibre offer.

 

The long-standing partnership with the Royal British Legion saw James Cropper support the launch of the first-ever 100% plastic-free remembrance poppy, a partnership proudly held since 1978 and most recently, the division won the internationally acclaimed Formes de Luxe award in the Moulded Pulp Packaging category in collaboration with Maison Perrier-Jouët for Belle Epoque 'Cocoon'.  

 

Outlook 

 

Within Advanced Materials, a scale up of additional capacity for the Future Energy hydrogen offer is underway with accelerated capital investment for the next phase of expansion in the UK electrolyser manufacturing operations.  New market opportunities for Technical Fibres are expected to provide another year of growth.

 

The Group also continues to make significant progress in repositioning the business, unified under its business name, James Cropper. To build greater brand equity in the market, the Group will be launching a refreshed identity in Q4 FY24. 

 

In the Paper division wider macro-economic pressures will endure into the second half of the year. However, the completed restructure and improved operational efficiencies will drive further recovery in margin improvement and productivity.

 

The actions taken to date give the Board confidence that the Group is well positioned to deliver increased profitability in FY24 consistent with its expectations and that, in line with the accelerated growth strategy, revenue growth will be delivered from FY25 onwards.



 

 

Financial Summary

 

 

 

Half-year to 30 September 2023

Half-year
to 24 September
2022

Full-year
to 1
April
2023


£m

£m

£m

Revenue

56.5

61.6

129.7

Adjusted operating profit *

3.0

0.5

4.8

Operating profit /(loss)

3.6

(0.2)

3.3

Adjusted profit / (loss) before tax *

2.4

(0.0)

3.2

Impact of IAS 19

(0.2)

(0.3)

(0.8)

Impact of exceptional items

0.2

(0.5)

(1.1)

Profit / (loss) before tax

2.4

(0.9)

1.3

Earnings / (loss) per share - basic and diluted

19.4p

        (9.2)p

5.4p

Dividend per share declared

3.0p

2.0p

6.0p


 

 


Net debt

(13.3)

(12.2)

(16.6)

Equity shareholders' funds

33.9

34.3

32.1

Gearing % - before IAS 19 deficit

29%

28%

38%

Gearing % - after IAS 19 deficit

39%

35%

52%

Capital expenditure

1.4

2.4

5.8

* excludes the impact of IAS 19 and exceptional items (per note 8)    



 

 

Financial Statement                                                                                                            


Half-year to 30 September 2023

Half-year to 24 September 2022

Full-year
to 1 April
2023

 

£'000

£'000

£'000

Revenue




Paper Products division - excluding energy surcharge

35,628

38,170

79,717

Paper Products division - energy surcharge 

-

3,876

8,434

Colourform division

1,876

2,105

4,326

Technical Fibre Products division

18,995

17,432

37,187

 

56,499

61,583

129,664

 


 


Adjusted operating profit *

3,048

453

4,767

Fair value movement on derivatives

-

-

(330)

Adjusted net interest

(645)

(466)

(1,242)

Adjusted profit / (loss) before tax *

2,403

(13)

3,195

 


 


IAS19 pension adjustments


 


Net current service charge against operating profits

202

(126)

(442)

Finance costs charged against interest

(386)

(178)

(345)

 

2,219

(317)

2,408

Exceptional items (note 8)

340

(540)

(986)

Exceptional finance costs (note 8)

(131)

-

(109)

Profit / (loss) before tax

2,428

(857)

1,313

* excludes the impact of IAS 19 and exceptional items (per note 8)

 

Balance sheet summary

Half-year to 30 September 2023

Half-year to   24 September 2022

Full-year to 1
April 2023


£'000

£'000

£'000

Non-pension assets - excluding cash

80,952

85,113

86,754

Non-pension liabilities - excluding borrowings

(21,636)

(28,986)

(25,990)


59,316

56,127

60,764





Net IAS19 pension deficit (after deferred tax)

(12,153)

(9,677)

(12,105)

Net borrowings

(13,312)

(12,156)

(16,594)

Gearing % - before IAS19 deficit

29%

28%

38%

Gearing % - after IAS19 deficit

39%

35%

52%

Capital expenditure £'000

1,399

2,360

5,779

 

 

 

 



 



 

 

 

UN-AUDITED CONSOLIDATED INCOME STATEMENT


26 week
period

to 30
September
2023

26 week
period

to 24
September
2022
 

53 week
period
 
to 1
April
2023
 


£'000

£'000

£'000





Revenue

56,499

61,583

129,664

Provision for impairment (loss) / reversal

(116)

(69)

134

Other income

1,471

770

650

Changes in inventories

(134)

1,975

817

Raw materials and consumables used

(19,882)

(23,359)

(48,556)

Energy costs

(3,866)

(8,031)

(15,162)

Employee benefit costs

(17,845)

(18,031)

(34,459)

Depreciation and amortisation

(2,289)

(2,090)

(4,278)

Other expenses

(10,248)

(12,961)

(25,471)

Operating profit / (loss)

3,590

(213)

3,339

Fair value movement on derivatives

-

-

(330)

Interest payable and similar charges

(1,162)

(644)

(1,697)

Interest receivable and similar income

-

-

1

Profit / (loss) before taxation

2,428

(857)

1,313

Taxation

(570)

(26)

(797)

Profit / (loss) for the period

1,858

(883)

516

 

Earnings / (loss) per share - basic and diluted

19.4p

(9.2)p

5.4p





UN-AUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

Profit / (loss) for the period

1,858

(883)

516

 

Items that are or may be reclassified to profit or loss




Exchange differences on translation of foreign operations

(80)

440

222

Cash flow hedges - effective portion of changes in fair value

256

680

1,040

Cash flow hedges - cost of hedging

60

-

(355)

 

Items that will never be reclassified to profit or loss




Retirement benefit liabilities - actuarial losses

(411)

(66)

(3,888)

Deferred tax on actuarial losses on retirement benefit liabilities

103

17

972

Other comprehensive income / (expense) for the period

(72)

1,071

(2,009)

Total comprehensive income / (expense) for the period attributable to equity holders of the Company

1,786

 

188

 

(1,493)

 

 UN-AUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

 

30

September

2023

24

September

2022

 1
April
2023

 

£'000

£'000

£'000

Assets

 

 

 

Intangible assets

1,441

2,219

1,524

Goodwill

1,264

1,264

1,264

Property, plant and equipment

32,191

31,636

32,717

Right of use assets

6,302

7,528

6,765

Other financial asset

657

-

654

Deferred tax assets

4,215

3,171

4,198

Total non-current assets

46,070

45,818

47,122

 


 

 

Inventories

18,166

19,638

18,304

Trade and other receivables

20,520

21,242

24,763

Provision for impairment

(759)

(846)

(643)

Other financial assets

644

1,653

428

Cash and cash equivalents

12,348

14,147

7,679

Current tax assets

362

833

815

Total current assets

51,281

56,667

51,346

 

Total assets

97,351

 

102,485

 

98,468

Liabilities

 


 

Trade and other payables

16,678

24,864

21,106

Other financial liabilities

-

415

58

Loans and borrowings

1,306

1,697

1,758

Total current liabilities

17,984

26,976

22,922





 Long-term borrowings

24,354

24,606

22,515

Retirement benefit liabilities

16,204

12,902

16,140

Contingent consideration on business acquisition

1,554

922

1,423

Deferred tax liabilities

3,404

2,785

3,403

Total non-current liabilities

45,516

41,215

43,481

 

Total liabilities

63,500

 

68,191

66,403

Equity


 


Share capital

2,389

2,389

2,389

Share premium

1,588

1,588

1,588

Reserve for own shares

(1,407)

(1,407)

(1,407)

Translation reserve

695

993

775

Cash flow hedging reserve

1,296

1,202

1,040

Cost of hedging reserve

(295)

-

(355)

Retained earnings

29,585

29,529

28,035

Total shareholders' equity

33,851

34,294

32,065

 

Total equity and liabilities

97,351

 

102,485

98,468

  

UN-AUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS


26 week
period
to 30
September
2023

26 week
period

to 24
September
2022
 

53 week
period

to 1
April
2023
 


£'000

£'000

£'000

Cash flows from operating activities

 

 

 

 

Profit / (loss) for the period

1,858

(883)

516

 


 

 

Adjustments for:


 


Tax expense

570

26

797

Depreciation and amortisation

2,289

2,090

4,278

Earn out adjustment on contingent consideration on business acquisition

-

-

986

Net IAS 19 pension adjustments within Statement of comprehensive income

(202)

304

442

Past service pension deficit payments

(531)

(598)

(1,665)

Foreign exchange differences

(205)

(125)

(136)

Loss / (profit) on disposal of property, plant and equipment

174

22

(589)

Net interest expense

1,162

464

 

1,696

Share based payments

-

-

(59)

Fair value movement on derivatives

-

-

330

Changes in working capital:




 Decrease /(increase) in inventories

171

(1,953)

(696)

Decrease / (increase) in trade and other receivables

4,318

1,517

(3,614)

 

(Decrease) / increase in trade and other payables

(4,495)

3,386

2,396

Tax (paid) /received

(28)

1,057

868

Net cash generated from operating activities

5,081

5,307

5,550

Cash flows from investing activities


 


Purchase of intangible assets

(5)

(86)

(1,126)

Purchases of property, plant and equipment

(1,394)

(2,274)

(5,267)

Contingent consideration on business acquisition paid

-

-

(250)

Net cash used in investing activities

(1,399)

(2,360)

(6,643)

Cash flows from financing activities


 


Proceeds from issue of loans

2,000

5,189

5,050

Repayment of borrowings

(201)

(123)

(288)

Repayment of lease liabilities

(668)

(674)

(1,561)

Interest received

-

1

1

Interest paid

(481)

(291)

(858)

Non-deliverable forward contract payment

-

-

(330)

Payments on interest rate cap

-

-

(495)

Dividends paid to shareholders

-

(708)

(897)

Net cash generated from financing activities 

650

3,394

622

Net increase/(decrease) in cash and cash equivalents

4,332

6,341

(471)

Effect of exchange rate fluctuations on cash held

337

56

400

Net increase in cash and cash equivalents

4,669

6,397

(71)

Cash and cash equivalents at the start of the period

7,679

7,750

7,750

Cash and cash equivalents at the end of the period

12,348

14,147

7,679

Cash and cash equivalents consists of:


 


Cash at bank and in hand

12,348

14,147

7,679

 

 

UN-AUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

 

Share capital

Share premium

Translation

reserve

Reserve for own shares

Cash flow hedging Reserve

 

Cost of hedging reserve

Retained earnings

 

Total


£'000

£'000

£'000

£'000

£'000


£'000

£'000

£'000

At 1 April 2023

2,389

1,588

775

(1,407)

1,040

(355)

28,035

32,065

 

 

 

 

 

 

 

 

 

Comprehensive income for the period

-

-

-

-

-

-

1,858

1,858










Total other comprehensive income

-

-

(80)


256

 

60

(308)

(72)










Dividends paid

-

-

-

-

-

-

-

-

-

 

-

-

-

-

 

 

-

-

-

At 30 September 2023

2,389

1,588

695

(1,407)

1,296

 

 

(295)

29,585

33,851

 

 

 

 

 

 

 

 

 

At 26 March 2022

2,389

1,588

553

(1,407)

-

-

31,691

34,814

 

 

 

 

 

 

 

 

 

Comprehensive expense for the period

-

-

-

-

-

-

(883)

(883)










Total other comprehensive income

-

-

440

-

1,202

-

(571)

1,071










Dividends paid

-

-

-

-

-

-

(708)

(708)

Total contributions by and distributions to owners of the Group

-

 

-

 

-

 

-

-

 

 

-

 

(708)

 

(708)

At 24 September 2022

2,389

1,588

993

(1,407)

1,202

 

 

-

29,529

34,294

 

NOTES TO THE CONDENSED CONSOLIDATED HALF YEAR STATEMENTS

1    BASIS OF PREPARATION

 

James Cropper Plc (the Company) is a public limited company incorporated and domiciled in the United Kingdom and listed on the Alternative Investment Market (AIM) market of the London Stock Exchange. The condensed consolidated half year financial statements of the Company for the twenty six weeks ended 30 September 2023, which have not been audited or reviewed, comprise the Company and its subsidiaries (together referred to as the Group).

Basis of preparation

The condensed consolidated financial statements for the 26 week periods ending 30 September 2023 and 24 September 2022 are unaudited and were approved by the Directors on 8 November 2023. They do not constitute statutory accounts as defined in s434 of the Companies Act 2006. The financial statements for the year ended 1 April 2023 were prepared in accordance with UK adopted international accounting standards and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, and have been delivered to the Registrar of Companies. The report of the auditor on those financial statements was unqualified and did not draw attention to any matters by way of emphasis of matter. The Group's financial statements consolidate the financial statements of James Cropper Plc and its subsidiaries.

 

Applicable standards

These unaudited consolidated interim financial statements have been prepared in accordance with international accounting standards as adopted by the UK, under the historical cost convention except for the revaluation of certain financial instruments to fair value.  They have not been prepared in accordance with IAS 34, the application of which is not required to the interim financial statements of companies trading on the Alternative Investment Market (AIM companies).

 

The consolidated financial statements of the Group for the 53 week period ended 1 April 2023 are available upon request from the Company's registered office: Burneside Mills, Kendal, Cumbria, LA9 6PZ or at www.jamescropper.com.

 

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

 

Going concern

The Directors, at the time of approving these interim statements, have a reasonable expectation that the Group has adequate resources to continue in operational existence for at least 12 months from this reporting date.

 

For the interim going concern review, the Board has reviewed the Group's financial forecasts for the 2 year period ending 31 March 2025 against which a number of scenarios assess headroom against facilities and impacts on bank covenants, which showed adequate headroom and no covenant breaches.

 

Following this review the Directors are satisfied that the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the condensed consolidated financial statements.

 

Significant accounting policies

The accounting policies applied by the Group in these condensed consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the 53 week period ended 1 April 2023.

   

2     Accounting estimates and judgements

The preparation of half year financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements as at and for the 53 week period ended 1 April 2023.

3    Risks and uncertainties

The principal risks and uncertainties which may have the largest impact on performance in the second half of the year are the same as disclosed in the 2023 Annual Report on pages 21-25. The principal risks set out in the 2023 Annual Report were:

 

Pension; network and systems security; security of supply; fire; net zero emissions; employee health and safety; attraction and retention of key skills and talent; energy price volatility and corporate and regulatory compliance risk.

 

The Board considers that all principal risks and uncertainties set out in the 2023 annual report have not changed and remain relevant for the second half of the financial year.

 

4    Alternative performance measures

The Company uses alternative performance measures to allow users of the financial statements to gain a clearer understanding of the underlying performance of the business.

 

Profit before tax represents the Group's overall performance, however it contains significant non-operational items relating to IAS 19 that the directors believe make year-on-year comparison of performance challenging.

 

Measures used to evaluate business performance are 'Adjusted operating profit' (operating profit excluding the impact of IAS 19 and exceptional items) and 'Adjusted profit before tax' (profit before tax excluding the impact of IAS 19 and exceptional items). The alternative performance measures are reconciled in note 9.

 

The adjustment, which we refer to in these accounts as the "IAS 19 impact" represents the difference between the pension charge as calculated under IAS 19 and the cash contributions for the current service cost only as determined by the latest triennial valuation. The Directors consider that the adjusted pension charge better reflects the actual pension costs for ongoing service compared to the IAS 19 charge. This adjustment is made internally when we assess performance and is also used in the profit and earnings per share targets used in management incentive schemes.

 

5    Earnings per share

 


Six months ended 30 September
2023

Six months ended 24 September
2022

  Year ended
1 April
 2023

Earnings / (loss) per share    - basic and diluted

19.4p

(9.2)p

5.4p

Profit / (loss) for the period (£'000)

1,858

(883)

516

Weighted average number of shares -

basic and diluted

9,554,803

9,554,803

9,554,803

  

6    Dividends

The proposed interim dividend of 3.0p (H1 FY23: 2.0p) per 25p ordinary share is payable on 8 January 2024 to those shareholders on the register of the Company at the close of business on 8 December 2023, with an ex-dividend date of 7 December 2023.

 

 

7    Retirement benefit obligations

 


26 week period ended 30 September 2023

26 week period ended 24 September 2022

53 week period ended 1 April 2023


£'000

£'000

£'000

Obligation brought forward

(16,140)

(13,130)

(13,130)

Expense recognised in the income statement

(563)

(568)

 (1,319)

Contributions paid to the schemes

910

862

2,197

Actuarial (losses) recognised in Other Comprehensive Income

(411)

(66)

(3,888)

Obligation carried forward

(16,204)

(12,902)

(16,140)

 

 

8    Exceptional items

 

26 week period ended 30 September 2023

26 week period ended 24 September 2022

53 week period ended 1 April 2023

 

£'000

£'000

£'000

Included in employee benefit costs:




Restructuring costs

760



Included in other expenses:




Restructuring costs

304

-

-

Increase in earn-out provisions

-

540

986

Included in other income:




Legal settlement

(1,404)

-

-

Exceptional items excluding finance costs

(340)

540

986

 

Included in finance costs: 

Unwind of discount on earn-out

provision

131

-

109

Exceptional items

(209)

540

1,095

 

Restructuring costs incurred to date amount to £1,064k, the group restructure is expected to be complete by year end.

A settlement of a historic pension legal dispute was agreed in the current period resulting in the recognition of income of £1,404k.

9    Alternative performance measures

 


26 week period ended 30 September 2023

26 week period ended 24 September 2022

52 week period ended 1 April 2023


£'000

£'000

£'000

Adjusted operating profit

3,048

453

4,767

Net IAS 19 pension adjustments - current service costs

202

(126)

(442)

Exceptional items

340

(540)

(986)

Operating profit / (loss)

3,590

(213)

3,339

 

 


26 week period ended 30 September 2023

26 week period ended 24 September 2022

53 week period ended 1 April 2023


£'000

£'000

£'000

Adjusted profit / (loss) before tax

2,403

(13)

3,195

Net IAS 19 pension adjustments




  - current service costs

(177)

(390)

(974)

  - future service contributions paid

379

264

532

  - finance costs

(386)

(178)

(345)

Exceptional items

209

(540)

(1,095)

Profit / (loss) before tax

2,428

(857)

1,313

 

10  Related parties

There have been no significant changes in the nature of related party transactions in the period ended 30 September 2023 from that disclosed in the 2023 annual report.

Statement of Directors' responsibilities

The Directors confirm that these condensed consolidated interim financial statements have not been prepared in accordance with IAS 34 as adopted by the UK and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

(i)          An indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

 

(ii)         Material related party transactions in the first six months and any material changes in the related party transactions described in the last Annual report.

 

The Directors of James Cropper Plc are detailed on our Group website www.jamescropper.com

Forward-looking statements

Sections of this half-yearly financial report may contain forward-looking statements with respect to the Group's plans and expectations relating to its future performance, results, strategic initiatives, objectives and financial position, including liquidity and capital resources. These forward-looking statements are not guarantees of future performance. By their very nature, all forward-looking statements involve risks and uncertainties because they relate to events that may or may not occur in the future and are or may be beyond the Group's control. Accordingly, the Group's actual results and financial condition may differ materially from those expressed or implied in any forward-looking statements. Forward-looking statements in this half-yearly financial report are current only as of the date on which such statements are made. The Group undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in this announcement shall be construed as a profit forecast.

 

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