Final Results

Cropper(James) PLC
17 June 2003


Issued on behalf of James Cropper PLC
Date: Tuesday 17 June 2003

                                                               Embargoed: 7.30am

                               James Cropper PLC
                            'Specialist Paper Maker'
                              Preliminary Results
                       for the year ended 29th March 2003

                                         2003           2002
Profit before Tax                        £1.9m          £1.5m            +22.3%

Earnings per share                       15.1p           9.2p            +64.1%

Dividend
                            Final         5.6p           5.2p             +7.7%
                            Total         7.5p           7.0p             +7.1%

Gearing                                    24%            27%
     
•    Record operating profit in Technical Fibre Products ('TFP') up 98% to
     £0.6m
     
     o    All markets up
     o    Continued progress on fuel cell component development

•    Operating profit in Paper up 4% to £1.1m

     o    Turnover down 1%
     o    Reduced operating costs

•    Operating profit in Converting down 48% to £0.6m

     o    Margins on US sales dampened by weaker US$
     o    UK display board market very competitive

•    All divisions affected by a significant increase in insurance premiums

'I am delighted to report that the Group profit before taxation has increased to
£1,867,000 from £1,526,000. The strong recovery by Technical Fibre Products
Division in the last quarter of the previous year continued throughout the year
under review resulting in a record profit for TFP. This, together with the Paper
Division's improved performance and reduced interest charges has more than
offset a disappointing downturn in the Converting Division's profitability'.


'The focus and efforts of the Paper Division will again be directed towards
growing turnover with the expectation of greater success in the coming year
particularly in more volume-related products'.


'The Converting Division will concentrate on restoring its profitability to
former levels through more efficient running, cutting costs and the development
of new products'.


'In the absence of unforeseen circumstances TFP should continue to make good
progress during the coming year as its markets develop'.


'Overall the Group is in a strong financial position and in good shape to meet
the challenges of the coming year'

                                                         James Cropper, Chairman

Enquiries:

Alun Lewis, Chief Executive
John Denman, Group Finance Director           Alan Cooke
James Cropper PLC                             Citigate Dewe Rogerson
Today: 020 7282 8000                          Today: 020 7282 8000
Thereafter: 01539 722002                      Thereafter: 0121 455 8370
                                              Mobile: [phone]


                               JAMES CROPPER PLC
                              Preliminary Results
                       for the year ended 29th March 2003


STATEMENT BY THE CHAIRMAN, MR JAMES CROPPER


The Past Financial Year


I am delighted to report that the Group profit before taxation has increased to
£1,867,000 from £1,526,000. The strong recovery by the Technical Fibre Products
Division ('TFP') in the last quarter of the previous year continued throughout
the year under review resulting in a record profit for TFP. This, together with
the Paper Division's improved performance and reduced interest charges has more
than offset a disappointing downturn in the Converting Division's profitability.
The Board's long-term policy of developing related businesses has helped
mitigate the impact on the Group of a temporary setback in one of the
businesses. Actions are in place to return Converting to its previous levels of
profitability.


Strong positive cash flow continued with gearing closing at 24% as against 27%
last year.


Dividends


The Board has decided that the improved result and the strong financial position
of the Group merits an increase in the dividend.  It has decided to recommend
that this year's dividend should be increased by 7% overall with a final
dividend of 5.6p, making the total dividend 7.5p.


Paper


The Paper Division's operating profit increased from £1,043,000 to £1,085,000,
despite low worldwide economic growth and other adverse factors. Subdued
economic activity affected our plans to increase turnover in new and traditional
markets. The cost of sales were reduced mainly due to lower energy costs and
improved efficiencies, particularly in the use of raw materials. Unfortunately
these gains were almost totally offset by increases in costs outside our
control, in particular the dramatic increase in insurance premiums to which I
referred at last year's AGM. The cost of pulp remained relatively stable
throughout most of the year at a comparatively low level, averaging US$470 per
tonne for the year, broadly in line with 2002. During the final quarter prices
rose rapidly to end the year at US$520 per tonne.  Capital investment
requirements continued to be low with the primary focus again related to
achieving compliance with the Health and Safety Executive mandatory code 'Making
Paper Safely'.


Converting


Following last year's milestone performance, with operating profits in excess of
£1,000,000 for the first time, it is disappointing to report that operating
profits have almost halved from £1,069,000 to £551,000.  Sales turnover declined
by 4% through a combination of subdued volume for display board and contract
converting. The margins on US picture mounting board sales were affected by the
weakness of the US$.



The buoyant demand experienced in the last quarter of the previous year
continued throughout the year across all international industrial markets,
resulting in a record operating profit of £623,000 against £314,000 last year.
Turnover broke through the £6,000,000 mark for the first time, up 26% on last
year.  There was a strong demand for fire protection products in particular.


Outlook

The focus and efforts of the Paper Division will again be directed towards
growing turnover with the expectation of greater success in the coming year
particularly in more volume-related products.  The current weakness of the
£Sterling against the €, should it continue, will help restore margins of
European sales and lessen the pressure from European competitors in the UK
market.  The price of pulp is on an upward trend at present and will affect the
opening quarter. However, underlying worldwide demand is unlikely to support any
further increases. Indeed the rate of increase over a short timescale has been
such that the sustainability of the present price may well be in doubt.


continued...





The Converting Division will concentrate on restoring its profitability to
former levels through more efficient running, cutting costs and the development
of new products.


In the absence of unforeseen circumstances TFP should continue to make good
progress during the coming year as its markets develop. TFP continues to make
steady and focused progress in meeting the requirements of Johnson Matthey's
fuel cell component programmes. Full commercialisation of fuel cell markets is
anticipated in the latter part of the decade. In the medium term TFP's strategy
for delivering significant growth remains focused on fire protection and surface
engineering applications.


Overall the Group is in a strong financial position and in good shape to meet
the challenges of the coming year.



James Cropper
Chairman

                                JAMES CROPPER PLC
                              Preliminary Results
                       for the year ended 29th March 2003


Group Profit and Loss Account

for the 52 weeks ended 29th March 2003

                                        2003                        2002
                                 -----------------------------------------------
                               
                                  £'000      £'000            £'000      £'000
Turnover  - continuing                      55,010                      54,451
operations
Change in stocks of finished
goods and work in progress                     155                        (551)
Own work capitalised                           407                         370
Other operating income                         272                         389
                                 ------     ------           ------    -------
                                            55,844                      54,659
                                 ------     ------           ------    -------
Raw materials and               (26,332)                    (26,648)
consumables
Other external charges           (9,002)                     (7,998)
Staff costs                     (14,779)                    (13,989)
Depreciation                     (3,449)                     (3,598)
                                 ------     ------          ------    -------
                                           (53,562)                    (52,233)
Group operating profit -
continuing
Operations                                   2,282                       2,426

Share of operating loss in                     (23)                          -
Joint Ventures                   ------     ------          ------    -------
Total operating profit: Group
and share of Joint Ventures                  2,259                       2,426
Income from fixed asset                         16                          22
investments
Other interest receivable and                  100                          29
similar income
Amounts written off                              -                        (293)
investments
Interest payable and similar                  (508)                       (658)
charges
                                 ------     ------            ------    -------
Profit on ordinary activities
before taxation                              1,867                       1,526
                                            
                                   

Tax on profit on ordinary                     (603)                       (760)
activities                        ------     ------           ------    -------

Profit on ordinary activities
after
Taxation                                     1,264                         766

Dividends paid and proposed:
Interim paid 1.9 p
(2002 1.8p)                        (159)                       (150)
Proposed final 5.6 p
(2002  5.2p)                       (468)                       (435)
                                  ------     ------           ------    -------
                                              (627)                       (585)
                                  ------     ------           ------    -------

Amount set aside to reserves                   637                         181

Earnings per Ordinary Share of 25p
Basic                                         15.1p                        9.2p
Diluted                                       15.1p                        9.2p


                                JAMES CROPPER PLC
                              Preliminary Results
                       for the year ended 29th March 2003



Balance Sheets
as at 29th March 2003

                        ------            ------  --------              ------

                                 Group                       Company
                        ------            ------  --------              ------
                          2003              2002      2003                2002
                         £'000             £'000     £'000               £'000
Fixed assets
Tangible assets         25,826            26,981    23,706              24,941
Investments                445               445       445                 445
Investments in Joint
Venture:
Share of gross             167                 -         -                   -
assets
Share of gross               -                 -         -                   -
liabilities             ------           ------  --------               ------
                        26,438            27,426    24,151              25,386
                        ------           ------  --------               ------

Current assets
Stocks                   5,798             5,375     4,956               4,704
Debtors                 11,785            11,709    11,014              10,995
Cash at bank and in          6                75     1,226               1,573
hand                      ------          ------  --------              ------
                        17,589            17,159    17,196              17,272

Creditors (amounts
falling due within one
year)                   (8,099)           (9,473)   (6,671)             (8,477)
                        ------            ------  --------              ------
Net current assets       9,490             7,686    10,525               8,795
                        ------            ------  --------              ------

Total assets less       35,928            35,112    34,676              34,181
current liabilities

Creditors (amounts
falling due after more
than one year)          (4,654)           (4,542)   (4,654)             (4,542)

Deferred taxation       (4,155)           (4,088)   (3,927)             (3,847)
                        ------            ------  --------              ------
                        27,119            26,482    26,095              25,792
                        ------            ------  --------              ------
Capital and reserves
Called up equity share   2,090             2,090     2,090               2,090
capital
Share premium              454               454       454                 454
account
Revaluation reserve        177               226       177                 226
Profit and loss         24,398            23,712    23,374              23,022
account                 ------            ------  --------              ------
Equity shareholders'    27,119            26,482    26,095              25,792
funds                   ------            ------  --------              ------


                                JAMES CROPPER PLC
                              Preliminary Results
                       for the year ended 29th March 2003



Group Cash Flow Statement

for the 52 weeks ended 29th March 2003

                          ------  ------    ------    ------  ------    ------

                                    2003                        2002

                           £'000             £'000     £'000             £'000

Cash flow from operating                     4,903                       5,661
activities

Returns on investments
and servicing of
finance
Interest received            100                          29
Interest paid               (381)                       (505)
Interest element of
finance lease rental
  payments                  (158)                       (198)
                          
Dividends received            16              (423)       22              (652)

Taxation                                      (765)                        (40)

Capital expenditure
Purchase of tangible      (2,299)                     (2,750)
fixed assets
Asset disposal                 6            (2,293)       98            (2,652)
proceeds

Acquisitions
Investment in Joint                           (190)                          -
Venture

Equity dividends paid                         (594)                       (527)
                                             _____                      ______
Net cash inflow before                         638                       1,790
financing

Financing
New debt due beyond a      1,500                       1,500
year
Repayment of bank         (1,580)                     (1,203)
loans
Capital element of          (698)             (778)     (625)             (328)
finance lease payments

(Decrease)/increase in                        (140)                      1,462
cash in the year



                                JAMES CROPPER PLC
                              Preliminary Results
                       for the year ended 29th March 2003



1.         Basic earnings per share have been calculated on the profit after
taxation of £1,264,000 (2002 £766,000) divided by the weighted average number of
Ordinary shares in issue during the period of 8,359,114 (2002 8,359,114).


2.         The dividend will, if approved, be paid on 15th August 2003 to all
shareholders on the Register on 25th July 2003.


3.         The financial information set out above does not constitute the
statutory accounts for the years ended 29th March 2003 and 2002.  Statutory
accounts for 2002 have been delivered to the Registrar of Companies and those
for 2003 will be delivered following the Company's Annual General Meeting.  The
auditors have reported on these accounts, their reports were unqualified and did
not contain statements under section 237 (2) or (3) of the Companies Act 1985.


4.         The Annual Report and Accounts for 2003 will be posted to
shareholders on 14th July 2003 and will also be available on request from the
Company's registered office, Burneside Mills, Kendal, Cumbria LA9 6PZ.


5.         The Annual General Meeting of the Company will be held at 10.30am on
Thursday, 7th August 2003 at the Bryce Institute, Burneside, Kendal, Cumbria.




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