TIDMCRPR
RNS Number : 7378E
Cropper(James) PLC
10 November 2020
The advanced materials and paper products group, is pleased to
announce its
Half year results to 26 September 2020
Half year Half year Full year
to 26 September to 28 September to
2020 2019 28 March
2020
GBPm GBPm GBPm
Revenue 34.0 52.8 104.7
Adjusted operating (loss) / profit
* (1.2) 2.8 7.2
Operating profit 0.4 2.6 6.6
Adjusted (loss) / profit before
tax * (1.4) 2.6 6.7
Impact of IAS 19 (0.3) (0.6) (1.2)
Impact of exceptional items 1.7 - -
Profit before tax 0.0 2.0 5.5
Earnings per share - basic and
diluted (0.2p) 17.0p 50.6p
Dividend per share declared nil 2.5p 2.5p
Net borrowings (5.2) (15.3) (11.1)
Equity shareholders' funds 27.3 21.9 34.4
Gearing % - before IAS 19 deficit 12% 38% 26%
Gearing % - after IAS 19 deficit 19% 70% 32%
Capital expenditure 1.4 3.3 9.2
* excludes the impact of IAS 19 and exceptional items (per note
9)
Highlights
-- The key priority remains the safety and wellbeing of employees
-- Rapid response to Covid 19 to reduce costs, optimise cash flow and protect liquidity
-- Group revenues down 36% on prior year mainly within the Paper division
-- Colourform revenues up 17% on prior year
-- The downturn in TFP sales, particularly in the aerospace
sector mitigated by growth in medical and renewable energy
sectors
-- Restructuring costs nearing completion with a net cost of
GBP0.2m projected for the year and GBP2m savings pa thereafter.
-- Company has liquidity of over GBP14m including cash and available overdraft facilities.
-- Capital investments for future growth to restart in the second half
-- To protect liquidity, no interim dividend declared.
Mark Cropper, Chairman, commented:
"Our immediate key priority is to maintain the safety and
wellbeing of our employees and customers. Each division is seeing
signs of recovery with most markets trending back to normality. The
restructuring plans are nearing completion with a small net cost
anticipated for the year but anticipated savings of GBP2m p.a. in
future years. The restructuring has affected less than 10% of the
workforce but will result in a leaner, stronger Group. Capital
investment was suspended during the first half of the year and is
planned to resume in the second half."
"The Group has weathered a major challenge during the period.
The actions of our employees to meet and overcome the challenge has
been exceptional across the Group. I am proud of their actions and
commitment as ever and would like to thank them all for their
continued efforts to protect themselves, their fellow employees and
the business as we plan to come out of this pandemic a stronger,
fitter Group and continue our plans for growth."
Enquiries:
Isabelle Maddock, Chief Robert Finlay, Henry Willcocks,
Financial Officer John More
James Cropper PLC (AIM:CRPR.L) Shore Capital
Telephone: +44 (0) 1539 Telephone: +44 (0) 20 7408 4090
722002
www.jamescropper.com
Half year Half year Full year
to 26 September to 28 September to 28 March
2020 2019 2020
Summary of results GBP '000 GBP'000 GBP'000
Revenue 34,004 52,792 104,667
Adjusted operating loss / (profit)* (1,196) 2,826 7,240
Operating profit 352 2,554 6,569
Adjusted (loss) / profit before
tax * (1,445) 2,557 6,674
Impact of IAS19 (293) (548) (1,215)
Exceptional items (note 8) 1,722 - -
Loss / profit before tax (16) 2,009 5,459
------------------------------------- ----------------- ----------------- -------------
* excludes the impact of IAS 19 and exceptional items (per note
9)
Half year Half year Full year
to 26 September to 28 September to 28 March
2020 2019 2020
GBP'000 GBP'000 GBP'000
Revenue
Paper division 20,856 37,992 75,545
Colourform division 1,414 1,211 2,586
Technical Fibre Products division 11,734 13,589 26,536
---------------------------------------- ----------------- ----------------- -------------
34,004 52,792 104,667
Adjusted operating (loss) / profit
* (1,196) 2,826 7,240
Adjusted net interest (249) (269) (566)
---------------------------------------- ----------------- ----------------- -------------
Adjusted (loss) / profit before
tax * (1,445) 2,557 6,674
IAS19 pension adjustments
Net current service charge against
operating profits (174) (273) (671)
Finance costs charged against interest (119) (275) (544)
---------------------------------------- ----------------- ----------------- -------------
(293) (548) (1,215)
Exceptional items (note 8) 1,722 - -
---------------------------------------- ----------------- ----------------- -------------
Loss / profit before tax (16) 2,009 5,459
---------------------------------------- ----------------- ----------------- -------------
* excludes the impact of IAS 19 and exceptional items (per note
9)
Balance sheet summary Half year Half year Full year
to 26 September to 28 September to 28 March
2020 2019 2020
GBP'000 GBP'000 GBP'000
Non-pension assets - excluding
cash 69,854 71,320 72,084
Non-pension liabilities - excluding
borrowings (22,517) (15,704) (19,032)
47,337 55,616 53,052
Net IAS19 pension deficit (after
deferred tax) (14,791) (18,351) (7,600)
------------------------------------- ----------------- ----------------- -------------
32,546 37,265 45,452
Net borrowings (5,220) (15,323) (11,055)
------------------------------------- ----------------- ----------------- -------------
Equity shareholders' funds 27,326 21,942 34,397
------------------------------------- ----------------- ----------------- -------------
Gearing % - before IAS19 deficit 12% 38% 26%
Gearing % - after IAS19 deficit 19% 70% 32%
Capital expenditure 1,367 3,284 9,195
Dear Shareholders
The last six months have been a challenging period for the
Group, particularly for our employees, customers, suppliers, local
communities and shareholders. The impact of the pandemic has been
significant, but due to the actions taken at the onset, the Group
remains in a strong position.
The Group responded quickly to the challenges. Throughout the
crisis we have managed our response under three headings: the
health and wellbeing of our employees, supporting customers and
reducing costs. The overall objective has been to emerge from the
pandemic a stronger Group. The commitment, support and engagement
of our employees in such an adverse time has been truly remarkable:
everyone has excelled in protecting the business and each other.
Immediate actions included working from home where possible whilst
continuing to support our customer needs and cutting non-essential
expenditure to reduce costs. Employee safety was a primary focus
with enhanced safety measures introduced to provide a Covid-19
secure environment in line with government and NHS guidelines.
The Group took swift action to reduce costs and protect
liquidity. This included the deferral of all discretionary
spending, suspension of major capital expenditure, suspension of
dividend payments, and seeking support from local authorities,
government agencies and the banks. During the period, our
customers, particularly in the Paper division were globally
impacted by Covid-19, leading to reduced demand and periods of
inefficient or no production. This resulted in many employees being
placed on furlough. In addition, payment of the bonuses earned from
our record results last year have been deferred until the second
half of the year. No bonuses or annual incremental pay increases
will be implemented in the current year.
The Group has weathered the initial impact of the pandemic. All
divisions in the business have been impacted to varying degrees
with Paper affected the most, TFP more resilient and Colourform
continuing to grow. Markets are improving but it is too early to
say whether the Group may be affected by further lockdowns. With
this in mind, the Group has prepared projections and continues to
protect liquidity. With this backdrop the Board has decided not to
declare an interim dividend.
As reported in our trading update at the AGM, the Group has been
developing restructuring plans for some time in order to drive
growth and competitiveness. The impact of the pandemic has required
us to accelerate the implementation of these plans, which affect
our Paper and Group operations divisions. Most of the restructuring
has now been completed and has impacted less than 10% of our
employees.
Financial Performance
Revenue in the period was 36% lower than the prior comparative
period at GBP34.0m (2019: GBP52.8m). Operating profit in the period
was 86% lower than the prior period at GBP0.4m (2019: GBP2.6m).
Provisions for exceptional costs relating to the restructuring
plans are expected to be GBP1m. The net impact to the Group for the
year is expected to be (GBP0.2m) with savings in future years of
GBP2m p.a.
Statutory operating profit for the period was GBP0.4m after
exceptional items for the restructuring costs and grant income from
governmental authorities in the UK and USA. This compares to the
prior year comparative of GBP2.6m. The Group had a loss before
taxation of GBP16,000 compared to a profit of GBP2.0m in the prior
year comparative period.
The business is in an 18-24 month recovery period. The Company
has experienced a trading hit in the first half of 2020-2021 and
expects cash generated to be down during the period of the pandemic
until we return to more normal trading conditions. We have acted
promptly to conserve cash and to implement immediate savings to
shore up reserves, in order to continue to protect cash flows and
liquidity, the Board has not declared an interim dividend. The
Company presently has liquidity of over GBP14 million including
cash and available overdraft facilities thanks to the cash
management actions implemented. This is expected to be sufficient
to weather further lockdowns, the return to more normal trading
conditions and a re-instatement of investment plans to support
future growth. Since the period end a GBP4m CLBIL has been secured
which brings additional cash security should it be required as we
face continued uncertainty due to Covid-19.
James Cropper Paper ("Paper")
The Paper division has been adversely impacted by Covid-19 with
revenues down by 45% compared to the comparable period last year,
as a result of global lockdowns affecting demand for luxury
packaging, education and event collateral. Whilst the division did
not have to close completely at any time, a large number of
employees were placed on furlough for some time over the period.
The Group decided to accelerate restructuring plans during the
period, the implementation of which is nearing completion. Whilst
there is expected to be a small net cost during the current year,
the restructuring will generate significant annual savings. Towards
the end of the period positive signs of normality were experienced
as markets opened up following the easing of lockdown rules
globally.
Colourform(TM) ("Colourform")
Revenues in the Colourform division grew by 17% in the period;
however the rate of growth was impacted by Covid-19. In the period,
the division's leadership and growth plans were boosted by the
appointment of Patrick Willink as Managing Director. Colourform has
reduced production for short periods and placed some employees on
furlough during the period.
Technical Fibre Products ("TFP")
Revenues in the TFP division were down by 14% mainly from
reduced demand within the aerospace market as a direct result of
Covid-19. The drop in the aerospace sector was mitigated by good
growth in the medical and green energy sectors, such as hydrogen
fuel cells and wind. The division has utilised the furlough scheme
for short periods.
Pension
The IAS19 valuations, for the two defined benefit schemes as at
26 September 2020, revealed a combined deficit of GBP18.3m,
compared with GBP9.4m as at 28 March 2020. This change was driven
primarily by a large fall in corporate bond yields and a rise in
inflation expectations. After deferred taxation the net deficit
stands at GBP14.8m.
Earnings per share and dividend
Basic and fully diluted earnings per share decreased to (0.2)
pence, compared to 17.0 pence in the prior year comparative
period.
In order to continue to protect cash flows and liquidity, the
Board has not declared an interim dividend.
Outlook
Our immediate key priority is to maintain the safety and
wellbeing of our employees and customers. Each division is seeing
signs of recovery with sectors moving towards normality. The
restructuring plans are nearing completion with a small net cost
anticipated for the year but anticipated savings of GBP2m pa in
future years. The restructuring has affected less than 10% of the
workforce but will result in a leaner, stronger Group. Capital
investment was suspended during the first half of the year and is
planned to resume in the second half.
The Group has weathered a major challenge during the period. The
actions of our employees to meet and overcome the challenge has
been exceptional across the Group. I am proud of their actions and
commitment as ever and would like to thank them all for their
continued efforts to protect themselves, their fellow employees and
the business as we plan to come out of this pandemic a stronger,
fitter Group and continue our plans for growth.
Mark Cropper
Chairman
UN-AUDITED CONSOLIDATED INCOME STATEMENT
26 week period 26 week period 52 week period
to 26 September to 28 September to 28 March
2020 2019 2020
------------------------------------------ ---------------- ---------------- --------------
GBP'000 GBP'000 GBP'000
Revenue 34,004 52,782 104,667
Provision for impairment - - (308)
Other income 25 32 486
Changes in inventories (1,383) 205 (1,330)
Raw materials and consumables used (10,416) (20,391) (38,200)
Energy costs (1,034) (2,152) (4,539)
Employee benefit costs (11,934) (15,483) (30,388)
Depreciation and amortisation (2,158) (1,911) (3,950)
Other expenses (6,752) (10,538) (19,869)
Operating profit 352 2,554 6,569
Interest payable and similar charges (370) (567) (1,136)
Interest receivable and similar
income 2 22 26
(Loss)/profit before taxation (16) 2,009 5,459
Taxation 3 (382) (630)
------------------------------------------ ---------------- ---------------- --------------
(Loss)/profit for the period (13) 1,627 4,829
Earnings per share - basic and diluted (0.2p) 17.0p 50.6p
UN-AUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME COMPREHENSIVE
INCOME
(Loss)/profit for the period (13) 1,627 4,829
------------------------------------------ ---------------- ---------------- --------------
Items that are or may be reclassified
to profit or loss
Foreign currency translation (80) 96 181
Cash flow hedges - effective portion
of changes in fair value 53 (32) (295)
Items that will never be reclassified
to profit or loss
Retirement benefit liabilities -
actuarial (loss)/ gain (8,788) 352 13,057
Deferred tax on actuarial loss /
(gain) on retirement benefit liabilities 1,670 (60) (2,481)
Other comprehensive (expense) /
income for the period (7,145) 356 10,462
------------------------------------------ ---------------- ---------------- --------------
Total comprehensive (expense) /
income for the period attributable
to equity holders of the Company (7,158) 1,983 15,291
------------------------------------------ ---------------- ---------------- --------------
UN-AUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
26 September 28 September 28 March
2020 2019 2020
GBP'000 GBP'000 GBP'000
------------------------------- ------------ --------------- ----------------
Assets
Intangible assets 421 320 495
Property, plant and equipment 32,438 29,521 31,882
Right of use assets 3,468 4,016 4,907
Deferred tax assets 3,471 3,759 1,921
------------------------------- ------------ --------------- ----------------
Total non-current assets 39,798 37,616 39,205
------------------------------- ------------ --------------- ----------------
Inventories 13,550 16,875 13,956
Trade and other receivables 18,656 19,337 19,363
Provision for impairment (536) - (530)
Cash and cash equivalents 11,064 435 8,964
Current tax assets 1,857 1,251 1,872
Total current assets 44,591 37,898 43,625
------------------------------- ------------ --------------- ----------------
Total assets 84,389 75,514 82,830
------------------------------- ------------ --------------- ----------------
Liabilities
Trade and other payables 20,219 14,075 16,544
Other financial liabilities 222 12 275
Loans and borrowings 4,774 1,912 3,756
Total current liabilities 25,215 15,999 20,575
Long-term borrowings 11,510 13,846 16,263
Retirement benefit liabilities 18,262 22,110 9,382
Deferred tax liabilities 2,076 1,617 2,213
Total non-current liabilities 31,848 37,573 27,858
------------------------------- ------------ --------------- ----------------
Total liabilities 57,063 53,572 48,433
------------------------------- ------------ --------------- ----------------
Equity
------------------------------- ------------ --------------- ----------------
Share capital 2,389 2,389 2,389
Share premium 1,588 1,588 1,588
Translation reserve 504 499 584
Reserve for own shares (1,251) (1,251) (1,251)
Retained earnings 24,096 18,717 31,087
------------------------------- ------------ --------------- ----------------
Total shareholders' equity 27,326 21,942 34,397
------------------------------- ------------ --------------- ----------------
Total equity and liabilities 84,389 75,514 82,830
------------------------------- ------------ --------------- ----------------
UN-AUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
26 week period 26 week period 52 week period
to 26 September to 28 September to 28 March
2020 2019 2020
--------------------------------------------- ---------------- --------------------- ---------------------
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Net (loss) / profit (13) 1,627 4,829
Adjustments for:
Tax (3) 382 630
Depreciation and amortisation 2,158 1,911 3,950
Net IAS 19 pension adjustments within
Statement of comprehensive income 293 548 1,215
Past service pension deficit payments (201) (734) (1,424)
Foreign exchange differences 112 (77) (74)
Loss on disposal of property, plant
and equipment 2 - 23
Net bank interest expense 249 269 566
Share based payments 87 188 (252)
Changes in working capital:
Decrease / (increase) in inventories 386 (454) 2,475
Decrease in trade and other receivables 537 1,644 149
Increase / (decrease) in trade and other
payables 3,663 (2,331) 1,719
Tax paid - (177) (741)
--------------------------------------------- ---------------- --------------------- ---------------------
Net cash generated from operating activities 7,270 2,796 13,065
Cash flows from investing activities
Purchase of intangible assets (29) (34) (190)
Purchases of property, plant and equipment (1,338) (3,250) (9,005)
Net cash used in investing activities (1,367) (3,284) (9,195 )
Cash flows from financing activities
Proceeds from issue of new loans 5,402 913 9,121
Repayment of borrowings (9,066) (1,222) (4,789)
Interest received 2 22 26
Interest paid (160) (212) (434)
Dividends paid to shareholders - (1,038) (1,275)
--------------------------------------------- ---------------- --------------------- ---------------------
Net cash (used) / generated in financing
activities financingactactivitiesactivities (3,822) (1,537) 2,649
Net increase / ( decrease) in cash
and cash equivalents 2,081 (2,025) 6,519
Effect of exchange rate fluctuations
on cash held 19 108 93
--------------------------------------------- ---------------- --------------------- ---------------------
Net increase / ( decrease) in cash
and cash equivalents 2,100 (1,917) 6,612
Cash and cash equivalents at the start
of the period 8,964 2,352 2,352
Cash and cash equivalents at the end
of the period 11,064 435 8,964
Cash and cash equivalents consists
of:
Cash at bank and in hand 11,064 435 8,964
--------------------------------------------- ---------------- --------------------- ---------------------
UN-AUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
Share Translation Retained
capital Share premium reserve Own shares earnings Total
-------------------------------- --------- ------------- ---------------- ---------- -------------- ------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 28 March 2020 2,389 1,588 584 (1,251) 31,087 34,397
Comprehensive (expense) for
the period - - - - (13) (13)
Total other comprehensive
expense - - (80) - (7,065) (7,145)
Share based payment charge - - - - 87 87
Total contributions by and
distributions to owners of
the Group - - - - 87 87
-------------------------------- --------- ------------- ---------------- ---------- -------------- ------------
At 26 September 2020 2,389 1,588 504 (1,251) 24,096 27,326
-------------------------------- --------- ------------- ---------------- ---------- -------------- ------------
At 30 March 2019 2,389 1,588 403 (1,251) 18,147 21,276
Adjustment on initial
application
of IFRS 16 - - - - (467) (467)
-------------------------------- --------- ------------- ---------------- ---------- -------------- ------------
At 31 March 2019 2,389 1,588 403 (1,251) 17,680 20,809
Comprehensive income for the
period - - - - 1,627 1,627
Total other comprehensive income - - 96 - 260 356
Dividends paid - - - - (1,038) (1,038)
Share based payment charge - - - - 188 188
Total contributions by and
distributions to owners of
the Group - - - - (850) (850)
-------------------------------- --------- ------------- ---------------- ---------- -------------- ------------
At 28 September 2019 2,389 1,588 499 (1,251) 18,717 21,942
-------------------------------- --------- ------------- ---------------- ---------- -------------- ------------
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). The condensed consolidated
half year financial statements of the Company for the twenty six
weeks ended 26 September 2020, 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 26 September 2020 and 28 September 2019 are
unaudited and were approved by the Directors on 9 November 2020.
They do not constitute statutory accounts as defined in s434 of the
Companies Act 2006. The financial statements for the year ended 28
March 2020 were prepared in accordance with International Financial
Reporting Standards (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 Financial Reporting
Standards as adopted by the European Union, under the historical
cost convention. 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 interim financial statements
have been prepared in accordance with the accounting policies
applied in the preparation of the Group's published consolidated
financial statements for the 52 week period ended 28 March
2020.
The consolidated financial statements of the Group for the 52
week period ended 28 March 2020 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 (GBP'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.
In light of the Covid-19 pandemic and subsequent uncertainty,
the Group has undertaken a detailed review and taken appropriate
mitigating actions to protect the business and liquidity.
A robust assessment modelling the most severe impact of the
Covid-19 pandemic was carried out in April 2020 and the Company is
trading significantly ahead of the most severe forecasts at both
sales and profit level. The Group's quick response to Covid-19 has
provided financial resilience during this particularly challenging
period. Nonetheless the potential of demand decline resulting from
Covid-19 establishes an ongoing risk to future financial
performance. For the interim going concern review the Group has a
base case forecast for the next 30 months to assess the latest
position and potential associated ongoing impacts of Covid-19. A
number of scenarios assess headroom against facilities and impacts
on bank covenants, which showed adequate headroom and no covenant
breaches. No revolving credit facilities are due for renewal within
the next 12 months. On 27 October 2020, the Company secured a
Coronavirus Large Business Interruption Loan ("CLBIL") for a three
year duration under which the Group can draw up to GBP4m. The
interim going concern review assumes that this facility remains
undrawn.
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 28 March 2020.
During the period, some employees across the Group were placed
on furlough under the Coronavirus Job Retention Scheme ("JRS"). In
addition, in the USA, the subsidiaries of Technical Fibre Products
took part in the Paycheck Protection Program ("PPP"). Income from
the JRS Scheme and the PPP program of GBP2.8m has been recognised
in the six months ended 26 September 2020. The grants have been
recognised as income and matched with associated payroll costs over
the same period. These grants have been treated as exceptional in
the financial statements for the period ended 28 September 2020.
This income has been treated as exceptional in the exceptional
items note 8.
2 Accounting estimates and judgements
The preparation of half year financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expenses. Actual
results may differ from these estimates.
The significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation
uncertainty were the same as those applied to the consolidated
financial statements as at and for the 52 week period ended 28
March 2020.
As mentioned in the trading update announcement at the AGM, the
Group has accelerated the implementation of a restructuring plan.
The plan is still ongoing with costs to date of GBP495,000.
Included in the financial statements for the period ended 26
September 2020 are additional provisions for completion of the plan
amounting to a further GBP562,000. The net impact at the year ended
26 March 2020 is expected to be around GBP183,000 and generate an
annual saving of circa GBP2m per year. The costs to date and
provisions to completion have been recognised in the employee
benefits figure of the income statement. The costs have been
treated as exceptional and included in the exceptional items note
8.
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 2020 Annual Report on pages 21-25. The
principal risks set out in the 2020 Annual Report were:
Covid-19 pandemic risk; employee health & safety; energy
price volatility; pulp price volatility and sustainability;
exchange rate volatility; Brexit; pension and information security
and cyber risk.
The Board considers that the principal risks and uncertainties
set out in the 2020 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 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 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 EBITDA and EPS targets
used in management incentive schemes.
5 Earnings per share
Six months Six months Year ended
ended 26 September ended 28 September 28 March
2020 2019 2020
----------------------------------- -------------------- -------------------- ------------
Earnings per share - basic
and diluted (0.2p) 17.0p 50.6p
(Loss) / Profit for the financial
period (GBP'000) (16) 1,627 4,829
----------------------------------- -------------------- -------------------- ------------
Weighted average number of
shares -
basic and diluted 9,554,803 9,554,803 9,554,803
6 Dividends
The group has weathered the initial storm of Covid-19. The Group
operates in diverse sectors and in wide geographical markets, so
whilst certain parts of the business have been impacted by
Covid-19, other parts of the business have demonstrated greater
resilience.
With this balance, and the likelihood of a slower recovery, the
Board has not declared an interim dividend as it continues to
protect the liquidity of the Group.
7 Retirement benefit obligations
Movements during the period in the Group's defined benefit
pension schemes are set out below:
26 week period 26 week period 52 week period
ended 26 September ended 28 September ended 28 March
2020 2019 2020
--------------------------------------- ----------------------- ----------------------- -------------------
GBP'000 GBP'000 GBP'000
Obligation brought forward (9,382) (22,648) (22,648)
Expense recognised in the
income statement (528) (806) (1,732)
Contributions paid to the
schemes 437 992 1,941
Actuarial (losses) and gains
recognised in Other Comprehensive
Income (8,788) 352 13,057
--------------------------------------- ----------------------- ----------------------- -------------------
Obligation carried forward (18,261) (22,110) (9,382)
--------------------------------------- ----------------------- ----------------------- -------------------
8 Exceptional items
26 week period 26 week period 52 week period
ended 26 September ended 28 September ended 28 March
2020 2019 2020
------------------------------- ----------------------- ----------------------- -------------------
GBP'000 GBP'000 GBP'000
Income from the JRS scheme 2,521 - -
Income from the PPP program
(USA) 258 - -
Restructuring costs (1,057) - -
------------------------------- ----------------------- ----------------------- -------------------
Exceptional items 1,722 - -
------------------------------- ----------------------- ----------------------- -------------------
9 Alternative performance measures
26 week period 26 week period 52 week period
ended 26 September ended 28 September ended 28 March
2020 2019 2020
GBP'000 GBP'000 GBP'000
Adjusted operating (loss)
/ profit (1,196) 2,826 7,240
Net IAS 19 pension adjustments
- current service costs (174) (272) (671)
Grants received JRS scheme 2,521 - -
PPP program (USA) 258 - -
Restructuring costs (1,057) - -
----------------------------------- ----------------------- ----------------------- -------------------
Operating profit 352 2,554 6,569
----------------------------------- ----------------------- ----------------------- -------------------
26 week period 26 week period 52 week period
ended 26 September ended 28 September ended 28 March
2020 2019 2020
GBP'000 GBP'000 GBP'000
Adjusted (loss) / profit
before tax (1,445) 2,557 6,674
Net IAS 19 pension adjustments
- current service
costs (409) (531) (1,188)
- future service
contributions
paid 235 258 517
- finance costs (119) (275) (544)
Grants received - JRS scheme 2,521 - -
PPP program (USA) 258 - -
Restructuring costs (1,057) - -
----------------------------------------------- ----------------------- ----------------------- -------------------
(Loss) / profit before tax (16) 2,009 5,459
----------------------------------------------- ----------------------- ----------------------- -------------------
10 Related parties
There have been no significant changes in the nature of related
party transactions in the period ended 26 September 2020 from that
disclosed in the 2020 annual report.
Statement of Directors' responsibilities
The Directors confirm that these condensed consolidated interim
financial statements have been prepared in accordance with IAS 34
as adopted by the European Union 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.
During the period since approval of the annual report for the 52
weeks ended 28 March 2020, Dave Watson resigned as a director on 1
August 2020.
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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END
IR FLFVDLDLAIII
(END) Dow Jones Newswires
November 10, 2020 02:00 ET (07:00 GMT)
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