Creightons Regulatory News (CRL)

 Creightons plc Group

Interim financial report

For the six months ended 30 September 2015

Chairman's Statement

The Group has continued to make progress against a background of increasing competition in the first half of the year recording a profit of £1,050,000 in the six months to 30 September 2015 (2014: £589,000). Profit before exceptional items for the six months to 30 September 2015 was £206,000 (2014: £214,000). The profit includes an exceptional item of £844,000 on the disposal of "The Real Shaving Company" business which was completed on 28 May 2015 (2014: £375,000 on the disposal of TS Ventures Ltd).

The Group has maintained sales for the period despite the disposal of The Real Shaving Company which was completed on 28 May 2015. Underlying sales excluding "The Real Shaving Company" were £10,594,000 for the six months (2014: £10,171,000) an increase of 4.2% for the period. These sales were generated by new product launches with own label customers and growth of branded ranges in key retailers.

Our gross margin was 40.8% in the six months to 30 September 2015 (2014: 38.6%). This improvement is due to a reduction in product support costs for the period and improved production efficiencies. Improvements have also been made in purchasing efficiencies and raw material price increases have not been a significant factor in the period. We are focusing efforts to improve our margins through product re-engineering, targeted investment in inventory and investment in plant and machinery which will improve output at lower costs.

We have continued to review our sales strategy in the period and have trimmed a number of brands and products considered peripheral to our core activity. We continue to see opportunities to develop our brands in overseas markets and to develop good quality products at a competitive price in the UK. We have increased resources and investments to achieve this goal.

As communicated in the Annual Report to 31 March 2015 the Group is investing to improve our manufacturing and logistics operations. This has resulted in one-off costs of £43,000 in relation to the reorganisation of the management structure which are included in the administrative expenses for the period. This will reduce production overhead costs in the second half of the year.

We continue to be cautious regarding the underlying level of retail sales and continue to see the trend of consumers in the UK focussing on value. This will present sales opportunities but may impact on margins.

Our net cash position at the end of the period has improved with net cash increasing by £1,469,000 to £946,000 (2014: net borrowing of £523,000).

I believe that this half year's sales of £10,752,000 despite the sale of the Real Shaving Company and profit after tax of £1,050,000 is a good performance and continues to place the Company in a good position to take advantage of any opportunities that may arise.

W O McIlroy

Executive Chairman 11 November 2015

Responsibility statement

We confirm that to the best of our knowledge:

a) The condensed set of financial statements has been prepared in accordance with IAS 34;

b) The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

c) The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of material related party transactions and changes therein).

By order of the Board

Nicholas O'Shea

Company Secretary and Director 11 November 2015

Creightons plc

Interim financial report

For the six months ended 30 September 2015

Consolidated income statement - unaudited

Earnings per share

Earnings per share before exceptional item

Consolidated statement of comprehensive income

Consolidated balance sheet - unaudited

Statement of changes in shareholders' equity - unaudited

Consolidated cash flow statement - unaudited

1. Basis of preparation

The condensed financial statements in this Interim Report have been prepared in accordance with the requirements of IAS 34 'Interim Financial Reporting' as adopted by the European Union.

As required by the Disclosure and Transparency Rules of the UK's Financial Conduct Authority, the condensed set of financial statements has been prepared by applying the accounting policies and presentation that were applied in the preparation on the Company's published consolidated financial statements for the year ended 31 March 2015, which were prepared in accordance with International Financial Reporting Standards as adopted by the European Union.

The condensed interim financial statements for the six months ended 30 September 2015 and the comparative figures for the six months ended 30 September 2014 are unaudited. The figures for the year ended March 2015 have been extracted from the Annual Report on which the Auditors issued an unqualified audit report and which have been filed with the Registrar of Companies.

The calculation of the basic and diluted earnings per share is based on the following data:

3. Related party transactions

The related party transactions that occurred in the six months ended 30 September 2015 are not materially different in size or nature to those reported in the Company's Annual Report for the year ended 31 March 2015.

4. Exceptional item - Sale of The Real Shaving Company

On 28 May 2015 the Group completed the sale of the business and assets of The Real Shaving Company brand including the trademark and associated intellectual property. The consideration comprised £1,000,000, which was paid on completion and £150,000 for stock which was paid subsequently.

The Company is reporting a profit of £844,000 in the interim financial report for the six months ended 30 September 2015 in relation to the disposal.

5. Exceptional item - Sale of TS Ventures Ltd

On 23 May 2014 the Group completed the disposal of its 55% interest in TS Ventures Limited which holds the intellectual property rights to the Twisted Sista brand of hair care products for a cash consideration of £448,000. The 55% interest in TS Ventures Limited has been sold to Urban Therapy LLC, the owner of the 45% interest not owned by the Company. The Company reported a profit of £375,000 in the interim financial report for the six months ended 30 September 2014 in relation to the disposal.

6. Availability of Interim Report

The Interim Report is being made available to shareholders on the company website www.creightonsplc.com. Further copies can be obtained from the Company's Registered Office, 1210 Lincoln Road, Peterborough, PE4 6ND.