Cropper (J) Regulatory News (CRPR)

James Cropper plc

(the "Company")

The advanced paper products group, is pleased to announce its

Half - year results to 26 September 2015

Financial Highlights

· Sales in TFP up 25% on comparable period, up 1% in Paper

· PBT (prior to IAS 19) £1.7m up 37% on prior comparable period

· EPS up 24% to 8.3p from 6.7p on prior period comparative

Operational Highlights

· TFP has strong US growth up 34% on comparable period

· Paper continues to focus on key growth markets

· New manufacturing equipment doubling capacity in TFP is now running

· New start up business plans for James Cropper 3D Products are on track

Mark Cropper, Chairman, commented:

"In the remainder of this year, James Cropper Paper is on track to deliver modest growth in a competitive market. Further growth in TFP is expected, while the new 3DP business will set a new course for the Group in 2016 and beyond.

It is anticipated that the Group will continue to operate in line with the Board's expectations for this year. I am pleased with the progress we have made in the first half of this financial year and that focused operational and commercial initiatives continue to strengthen our long term prospects."

Enquiries:

Dear Shareholders

I am pleased to report that James Cropper plc made a 37% increase in profit before tax (excluding the impact of IAS 19), delivering £1.7m in the first half of this financial year, compared to £1.2m in the prior year comparative. Profit before tax, after the impact of IAS 19, is £1m, up on the prior year of £0.8m. Group revenues have increased by 5%, largely from TFP, and with a high level of operational support and success the Group has effectively met demand and improved profitability.

James Cropper Paper

Whilst sales in paper have marginally increased on the prior period the strong Sterling has impacted European export sales, although market share has remained stable. However UK and USA markets are continuing to grow both in market share and sales revenue. In the first half we have launched 2 further stock ranges, and are developing a range of food contact stock papers as we further expand our presence in the packaging, food contact, inkjet media markets. The business has approved capital equipment to create additional finishing capacity that will allow a greater level of higher-value demand to be processed. This will impact the final quarter onwards. During the second half Paper will continue to drive focused business initiatives whilst delivering reduced and sustainable operational cost savings.

Technical Fibre Products ("TFP")

TFP enjoys strong demand across all sectors with growth in aerospace, automotive and energy. Revenues are up 25% on the comparable period last year. Strong first half demand was managed well as we improved manufacturing efficiencies. Commissioning of our new non-woven line commenced as expected in July this year with full production capability scheduled to be achieved this calendar year. Installation of a new particle plating facility in the US will be complete by the end of Q3, adding additional technical capability and commercial potential in the field of metal coated carbon particles. TFP expects sales to grow in the second half supported by further operational improvements.

James Cropper 3D Products  

In June 2015 the company announced the formation of James Cropper 3D Products (James Cropper 3DP). 3DP creates cellulose based paper products that provide a genuinely sustainable and high quality alternative to plastic packaging. Investments are underway and on schedule with production due to commence during 2016. Production of these products will integrate easily into existing operations in Burneside as many elements of the supply chain are shared and already in place.

Our commitment to continuous learning and development programmes remains strong as investing in our people is one of our key values and a fundamental part of our HR strategy. Our 2015 employee engagement survey revealed a 12% increase in engagement levels when compared with the 2013 survey. This is 10% higher than the national average.

The Group operates three pension schemes with close to 55% of employees holding a defined contribution personal payment plan. The Group operates two funded pension schemes providing defined benefits for a decreasing number of its employees. On the defined benefit schemes the overall value of the Schemes' assets decreased by 7% over the period, whilst the schemes' liabilities also decreased by 7%. The IAS19 valuations of these schemes as at 26 September 2015 revealed a combined deficit of £13.4m compared with £14.4m at 28 March 2015, a decrease of £1m, principally caused by an increase in the discount rate.

Diluted Earnings per Share (after the adjustment for IAS 19) increased by 24% to 8.3 pence compared to 6.7 pence in the prior year comparative period.

Outlook

In the remainder of this year, James Cropper Paper is on track to deliver modest growth in a competitive market. Further growth in TFP is expected, while the new 3DP business will set a new course for the Group in 2016 and beyond.

It is anticipated that the Group will continue to operate in line with the Board's expectations for this year. I am pleased with the progress we have made in the first half of this financial year and that focused operational and commercial initiatives continue to strengthen our long term prospects.

Mark Cropper

Chairman

JAMES CROPPER PLC

UN-AUDITED STATEMENT OF COMPREHENSIVE INCOME

JAMES CROPPER PLC

UN-AUDITED STATEMENT OF FINANCIAL POSITION

JAMES CROPPER PLC

UN-AUDITED STATEMENT OF CASH FLOWS

JAMES CROPPER PLC

STATEMENT OF CHANGES IN EQUITY

JAMES CROPPER PLC

NOTES TO THE UN-AUDITED INTERIM RESULTS

1. Basis of the preparation of IFRS financial information

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

All references to:

i. "Net IAS 19 pension adjustment" refer to the net impact on the statement of comprehensive income of the pension schemes' operating costs and finance costs.

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

2. Interim Statement

a. The summarised results for the half-year to 26 September 2015, which have not been audited or reviewed, have been prepared in accordance with the accounting policies adopted in the accounts for the 52 week year ended 28 March 2015.

b. The financial information set out above does not constitute statutory accounts within the meaning of the Companies Act 2006. The figures for the 52 week year ended 28 March 2015 are an extract of the full accounts for that year, which have been filed with the Registrar of Companies and on which the auditors gave an unqualified opinion.

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

3. Earnings per share

Basic earnings per share for the half year to 26 September 2015 have been calculated by dividing the profits attributable to ordinary shareholders by 9,171,153 (2014: 8,973,980) ordinary shares, being the weighted average number of ordinary shares during the period.

4. Dividend

A net interim dividend of 2.2p per Ordinary Share (2014: 2.2p per share) is proposed and will be paid on 8 January 2016 to holders on the register at the close of business on 11 December 2015. The dividend relating to the 52 week year to 28 March 2015 was made up of an interim payment of £199,000 (2.2p per share) and a final dividend payment of £571,000 (6.3p per share). The dividend is payable in cash. Shareholders have the opportunity to elect to reinvest their cash dividend and purchase existing shares in the Company through a Dividend Reinvestment Plan.

5. Pensions

IAS 19 regards a sponsoring company and its pension schemes as a single accounting entity rather than two or more separate legal entities. The actuarial valuation is the starting point for the creation of the IAS 19 accounting entity. The valuation determines the net position of a pension scheme, i.e. the difference between its assets and liabilities. The net position, surplus or deficit, is brought onto the sponsoring company's statement of financial position such that Reserves are immediately adjusted by the net position reduced by deferred tax. This obviously results in either an increase or decrease in the net asset value of the sponsoring company. At subsequent period-ends the movement in value from the previous valuation is expressed in the following component parts:

Statement of comprehensive income

Operating costs

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

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

§ Curtailment and settlement costs.

Finance costs, being the net of

§ Expected return on pension scheme assets.

§ Interest cost on the accrued pension scheme liabilities.

Other comprehensive income

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

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

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