Last checked at 28 Jun 2011 07:00
Issued by Arbuthnot Securities Limited Embargoed: 7.00am
Date: Tuesday, 28 June 2011
James Cropper PLC
James Cropper plc (AIM:CRPR.L) the niche specialist paper and materials group, is pleased to announce its
Preliminary Audited Results for the year ended 2nd April 2011
Full year to | 2 April | 27 March | |
2011 | 2010 | Change | |
£ms | £ms | % | |
·; Turnover (inclusive of discontinued operation) o Group export sales were up 19% and represented 53% of turnover. | 86.9 | 76.2 | +14% |
·; EBITDA (before IAS19 pension adjustment) | 4.7 | 6.7 | |
| ·; Group profit before tax (before IAS19 pension adjustment) o Continuing operations o Inclusive of discontinued operation |
3.4 1.7 |
3.7 3.3 |
|
·; Group profit before tax (after IAS19 pension adjustment) o Curtailment of DB pension future service benefits reduce IAS 19 deficit by £10.2 million. | 11.1 | 2.4 | |
·; Total Shareholders' Equity o Overall IAS 19 pension deficit is reduced by £12.8 million to £1.4 million. | 27.4 | 17.8 | +54% |
| ·; Earnings per share - continuing operations - diluted o Before IAS 19 curtailment adjustment o After IAS 19 curtailment adjustment |
33.3 pence 117.4 pence |
25.5 pence 25.5 pence | |
·; Dividend per share declared | 7.9 pence | 7.5 pence | +5% |
·; Gearing (after IAS 19 pension deficit) | 6% | Nil | |
·; Retailing operations discontinued; full provision for all closure and redundancy costs taken in year. | |||
·; TFP profits increase to £2.3 million from £1.3 million; turnover up 32% | |||
·; Speciality Papers profits fall to £0.6 million from £3.4 million; turnover up 16% o Significant increases in pulp and energy costs in year | |||
·; Converting profits increase to £1.3 million from £0.4 million; turnover up 17% | |||
Mark Cropper, Chairman, said:
"As the end of my first year as chairman nears, I am heartened by our prospects on many levels. We start the new financial year having taken significant steps to reduce the Group's risk exposure. Our retailing activities have ceased and our IAS 19 pension deficit has fallen by £12.8 million to £1.4 million primarily as a consequence of curtailing future benefits".
"There are also other good reasons for the growing optimism that I have noticed within the Group. Demand for our products is growing. We have a strong competitive position, underpinned by the sale of service and capability as much as materials. We are more committed than ever to developing the skills of our people and the results of investment in this area are beginning to be felt. We are carefully recruiting to strengthen teams when the need is demonstrable. Although challenges lie ahead I am confident that our business prospects are bright".
James Cropper PLC | Arbuthnot Securities Limited |
John Denman, Group Finance Director | Andrew Kitchingman |
Tel: 01539 722002 | Tel: 020 7012 2000 |
www.cropper.com |
Summary of Results | 2011 | 2010 | 2009 | 2008 | 2007 |
Group turnover £'000 | |||||
Continuing operations | 83,264 | 70,714 | 69,129 | 66,542 | 63,047 |
The Paper Mill Shop (discontinued operation) | 3,609 | 5,516 | 5,674 | 6,202 | 6,038 |
86,873 | 76,230 | 74,803 | 72,744 | 69,085 | |
Trading profit before interest | 1,665 | 3,568 | 1,556 | 2,365 | 2,976 |
Depreciation | 3,072 | 3,138 | 3,179 | 3,280 | 3,315 |
EBITDA (before IAS 19 pension adjustment) | 4,737 | 6,706 | 4,735 | 5,645 | 6,291 |
Trading profit before interest | |||||
Continuing operations | 3,361 | 3,942 | 1,944 | 2,723 | 3,334 |
The Paper Mill Shop (discontinued operation) | (1,696) | (374) | (388) | (358) | (358) |
1,665 | 3,568 | 1,556 | 2,365 | 2,976 | |
Trading activities | |||||
Technical Fibre Products | 2,289 | 1,327 | 2,099 | 1,426 | 2,053 |
Speciality Papers | 587 | 3,437 | (310) | 1,281 | 1,435 |
Converting | 1,272 | 446 | 406 | 548 | 460 |
The Paper Mill Shop (discontinued operation) | (1,696) | (374) | (388) | (358) | (358) |
Other Group expenses | (119) | (393) | (19) | (147) | (86) |
Director and employee bonuses | (668) | (875) | (232) | (324) | (433) |
Joint venture | - | - | - | (61) | (95) |
Trading profit | 1,665 | 3,568 | 1,556 | 2,365 | 2,976 |
Net interest | 29 | (271) | (448) | (402) | (438) |
Trading profit before tax | 1,694 | 3,297 | 1,108 | 1,963 | 2,538 |
(After future service pension contributions paid) | |||||
Net IAS 19 pension adjustments to | |||||
Net current service charge required | (763) | (255) | (476) | (610) | (610) |
Exceptional curtailment adjustment | 10,158 | - | - | - | - |
Operating profit | 9,395 | (255) | (476) | (610) | (610) |
Net interest | (3) | (626) | 226 | 227 | 179 |
Net pension adjustment before tax | 9,392 | (881) | (250) | (383) | (431) |
Overall Group after pension adjustments | |||||
Operating profit | 11,060 | 3,313 | 1,080 | 1,816 | 2,461 |
Joint venture | - | - | - | (61) | (95) |
Profit before interest | 11,060 | 3,313 | 1,080 | 1,755 | 2,366 |
Net interest | 26 | (897) | (222) | (175) | (259) |
Profit before Tax | 11,086 | 2,416 | 858 | 1,580 | 2,107 |
Continuing operations | 12,812 | 2,790 | 1,246 | 1,938 | 2,465 |
The Paper Mill Shop (discontinued operation) | (1,726) | (374) | (388) | (358) | (358) |
Profit before Tax | 11,086 | 2,416 | 858 | 1,580 | 2,107 |
Earnings/(losses) per Share - diluted | 117.4p | 25.5p | (1.0p) | 14.0p | 16.2p |
Continuing operations after IAS 19 | |||||
Dividends per Share | 7.9p | 7.5p | 5.1p | 7.3p | 7.0p |
Balance Sheet Summary £'000 | |||||
Non-pension assets - excluding cash | 44,000 | 43,852 | 43,753 | 45,616 | 45,758 |
Non-pension liabilities - excluding borrowings | (13,841) | (15,800) | (12,592) | (12,640) | (13,505) |
30,159 | 28,052 | 31,161 | 32,976 | 32,253 | |
Net IAS 19 pension deficit (after deferred tax) | (1,039) | (10,210) | (6,535) | (1,299) | (4,306) |
29,120 | 17,842 | 24,626 | 31,677 | 27,947 | |
Net borrowings | (1,711) | (31) | (4,452) | (6,016) | (5,294) |
Equity shareholders' funds | 27,409 | 17,811 | 20,174 | 25,661 | 22,653 |
Gearing % - after IAS 19 deficit | 6% | Nil | 22% | 23% | 23% |
Capital Expenditure £'000 | 2,276 | 1,228 | 1,333 | 2,337 | 2,756 |
All references to:
1. "Trading Profit" refers to profits prior to interest on borrowings, "Net IAS 19 pension adjustment" and tax.
2. "Trading Profit before Tax" refers to profits prior to "Net IAS 19 pension adjustment".
3. "Net IAS 19 pension adjustment" in the Profit and Loss Account refer to the net impact on the Profit and Loss Account of the pension schemes' operating costs and finance costs, as described in the IAS 19 section of the Financial Review.
4. All referencesto:
"Profit and Loss Account" refers to the Statement of Comprehensive Income.
"Balance Sheet" refers to the Statement of Financial Position.
"Reserves" refers to the Statement of changes in Equity.
Management have chosen to maintain the terminology that readers are familiar with.
CHAIRMAN'S REVIEW
During the financial year we took steps to dramatically reduce the threats to the Group posed by its defined benefit pension schemes and retailing activities.
Pension scheme members' future service benefits have been reduced and as a consequence the IAS 19 deficit has fallen by £12,776,000 to £1,404,000 as at 2nd April 2011. IAS 19 requires that any reduction in deficit arising from a curtailment of benefits should be shown on the face of the Statement of Comprehensive Income ("Profit and Loss Account"). This means that the Group's Profit and Loss Account shows an exceptional credit of £10,158,000 arising from curtailment.
All Paper Mill Shop ("TPMS") retail outlets were closed by 2nd April 2011. Having taken full provision for closure and redundancy costs TPMS incurred a trading loss before tax of £1,726,000 in the financial year ended 2nd April 2011. This is shown as a discontinued operation on the face of the Profit and Loss Account.
Prior to the IAS 19 adjustment profit before tax, inclusive of TPMS's losses, was £1,694,000, compared to £3,297,000 in 2009/10. Our continuing operations made a profit before tax of £3,420,000 against £3,675,000 in the previous year.
Group turnover for the financial year was up 14% to £86,873,000. Group export sales were up 19% and represented 53% of turnover. Sales growth in our three manufacturing businesses was export led across new and existing products.
Despite the 8% weakening of the US$ against £Sterling during the year strong profit performances were recorded by Technical Fibre Products and James Cropper Converting. Turnover at James Cropper Speciality Papers grew by 16%.
Diluted Earnings per Share of the continuing operations, before the adjustment for IAS 19 curtailment was 33.3 pence compared to 25.5 pence in the previous year (and 117.4 pence after adjustment for IAS 19 curtailment).
Dividend
In view of the measures taken and the strong performance of our manufacturing businesses the Board has decided to increase the final dividend from 5.3 pence to 5.7 pence per share making a total dividend for the full year of 7.9 pence compared to 7.5 pence in 2009/10.
Technical Fibre Products ("TFP")
TFP's operating profit for the year was £2,289,000 compared to £1,327,000 in 2009/10, with turnover up by 32% on the previous year to £13,152,000.
Strong growth was recorded in the insulation, energy, industrial and electronic sectors. Sales into the USA increased by 37% in £Sterling terms over the course of the financial year and accounted for 54% of TFP's turnover. Sales outside of the USA were up by 26%.
James Cropper Speciality Papers ("Speciality Papers")
Speciality Papers reported an operating profit of £587,000 against £3,437,000 in the previous year.
Turnover grew by £8,660,000 to £61,594,000, a 16% increase. Overall volume was up 8%, with UK and export volumes growing by 3% and 17% respectively.
The price of pulp continued to move upward during the financial year driven by supply constraints and continuing demand from China. Northern Bleached Softwood Kraft ("NBSK") pulp opened at US$880/tonne and closed the year at US$965/tonne, an increase of 10%. The weakening of the US$ against £Sterling during the year dampened the impact of the increasing price of pulp to some extent. Further increases took the price of NBSK to US$1010/tonne by the end of May 2011.
Supply constraints resulting from the harsh winter and geo-political events led to a strengthening in the cost of natural gas prices, with the overall cost of consumption in the year being £3.5 million compared to £2.3 million in the prior year.
Speciality Papers continues to agree further price rises with customers in order to pass on these cost increases.
James Cropper Converting ("Converting")
Converting's operating profit was £1,272,000 compared to £446,000 in the previous year.
Turnover increased by 17% to £12,981,000, with volume down by 2%. Sales denominated in US$s increased by 71% in £Sterling terms over the course of the financial year and accounted for 35% of Converting's turnover. Sales of digital printing grades into the US retail sector contributed significantly to the operating profit. As a proportion of the 2010/11 sales included customer launch stocks, sales of these products in 2011/12 are expected to be lower.
The Paper Mill Shop ("TPMS")
Following four years of losses and despite the best efforts of the TPMS management team to bring this subsidiary back to profitability, the Board of James Cropper PLC took the decision to close and exit all TPMS retail outlets by 2nd April 2011. Having taken full provision for closure and redundancy costs TPMS incurred an operating loss of £1,696,000 in the financial year.
TPMS's internet business, papermilldirect, continues to trade but has become a profit centre within James Cropper Speciality Papers Limited focusing increasingly on a paper-based offering.
Pensions and International Accounting Standard 19 ("IAS 19")
The Group operates two funded pension schemes providing defined benefits for the majority of its full time employees. As from 1st April 2011 active members' benefits have been reduced such that future increases in pensionable salaries are restricted to RPI up to a maximum of 2% per annum. Therefore the schemes will remain defined benefit schemes but they will no longer be "final salary" schemes. Thus as a consequence of this change to future benefits and other factors, the IAS 19 valuations of these schemes as at 2nd April 2011 revealed a combined deficit of £1,404,000, compared with £14,180,000 at the previous year end, a decrease of £12,776,000. After allowing for deferred tax on the deficits, shareholders' funds were consequently uplifted by £9,199,000 as at 2nd April 2011.
Cash and borrowings
Despite significant exit costs relating to TPMS, the combination of tight control over working capital and modest capital over the year ensured that net borrowings remained negligible. At 2nd April 2011 gross drawn down loans totalled £6.0 million, with £4.3 million held as cash at bank. In addition the Group had un-drawn overdraft facilities of £3.3 million, US$1.4 million and €1.0 million. Gearing at the financial year end, after deduction of the IAS 19 pension deficit, was 6%.
Outlook
As the end of my first year as chairman nears, I am heartened by our prospects on many levels. We start the new financial year having taken significant steps to reduce the Group's risk exposure. Our retailing activities have ceased and our IAS 19 pension deficit has fallen by £12.8 million to £1.4 million primarily as a consequence of curtailing future benefits.
There are also other good reasons for the growing optimism that I have noticed within the Group. Demand for our products is growing. We have a strong competitive position, underpinned by the sale of service and capability as much as materials. We are more committed than ever to developing the skills of our people and the results of investment in this area are beginning to be felt. We are carefully recruiting to strengthen teams when the need is demonstrable. Although challenges lie ahead I am confident that our business prospects are bright.
Mark Cropper
Chairman
James Cropper Plc | |||||
Audited Statement of Comprehensive Income | |||||
53 week period to | 53 week period to | 53 week period to | 52 week period to | ||
2 April 2011 | 2 April 2011 | 2 April 2011 | 27 March 2010 | ||
Continuing Operations | Pension Curtailment | Total | * Restated | ||
£'000 | £'000 | £'000 | £'000 | ||
Continuing operations | |||||
Revenue | 83,264 | - | 83,264 | 70,714 | |
Other income | 209 | - | 209 | 208 | |
Changes in inventories of finished goods and work in progress | 1,281 | - | 1,281 | 160 | |
Raw materials and consumables used | (40,494) | - | (40,494) | (30,095) | |
Energy costs | (4,255) | - | (4,255) | (3,035) | |
Employee benefit costs | (19,596) | - | (19,596) | (18,467) | |
Depreciation and amortisation | (2,908) | - | (2,908) | (2,966) | |
Exceptional Pension Credit | - | 10,158 | 10,158 | - | |
Other expenses | (14,903) | - | (14,903) | (12,832) | |
Operating Profit | 2,598 | 10,158 | 12,756 | 3,687 | |
Interest payable and similar charges | (137) | (906) | |||
Interest receivable and similar income | 193 | 13 | |||
Profit before taxation | 12,812 | 2,794 | |||
Tax expense | (2,598) | (608) | |||
Profit from continuing operations | 10,214 | 2,186 | |||
Discontinued operation | (1,726) | (378) | |||
Profit for the period | 8,488 | 1,808 | |||
Other comprehensive income | |||||
Foreign currency translation | 4 | (267) | |||
Retirement benefit liabilities - actuarial gains / (losses) | 2,388 | (4,849) | |||
Deferred tax on actuarial (gains) / losses on retirement benefit liabilities | (621) | 1,358 | |||
Total comprehensive income for the period attributable to equity holders of the Company | 10,259 | (1,950) | |||
Earnings per share - basic | 100.2p | 21.3p | |||
Earnings per share -diluted | 97.6p | 21.1p | |||
Continuing Operations Earnings per share - basic | 120.6p | 25.8p | |||
Continuing Operations Earnings per share -diluted | 117.4p | 25.5p | |||
Dividend declared in the period - pence per share | 7.9p | 7.5p |
* Restated as The Paper Mill Shop, discloses its result net of tax as a single line item under 'discontinued operation.
James Cropper Plc | |||||
Audited Statement of Financial Position | |||||
Group | Group | Company | Company | ||
As at | As at | As at | As at | ||
2 April 2011 | 27 March 2010 | 2 April 2011 | 27 March 2010 | ||
£'000 | £'000 | £'000 | £'000 | ||
Assets | |||||
Intangible assets | 1,386 | 2,096 | 1,140 | 1,879 | |
Property, plant and equipment | 16,177 | 16,863 | 2,137 | 2,258 | |
Investments in subsidiary undertakings | - | - | 7,350 | 7,350 | |
Deferred tax assets | - | 189 | - | 3,462 | |
Total non- current assets | 17,563 | 19,148 | 10,627 | 14,949 | |
Inventories | 11,956 | 10,195 | - | - | |
Trade and other receivables | 14,481 | 14,509 | 27,540 | 33,739 | |
Cash and cash equivalents | 4,282 | 5,050 | 3,001 | 3,420 | |
Current tax assets | - | - | - | 42 | |
Total current assets | 30,719 | 29,754 | 30,541 | 37,201 | |
Total assets | 48,282 | 48,902 | 41,168 | 52,150 | |
Liabilities | |||||
Trade and other payables | 10,146 | 11,081 | 11,985 | 18,338 | |
Loans and borrowings | 1,426 | 3,195 | 1,399 | 1,525 | |
Current tax liabilities | 780 | 749 | - | - | |
Total current liabilities | 12,352 | 15,025 | 13,384 | 19,863 | |
Long-term borrowings | 4,567 | 1,886 | 2,909 | 1,886 | |
Retirement benefit liabilities | 1,404 | 14,180 | 1,404 | 14,180 | |
Deferred tax liabilities | 2,550 | - | 108 | - | |
Total non-current liabilities | 8,521 | 16,066 | 4,421 | 16,066 | |
Total liabilities | 20,873 | 31,091 | 17,805 | 35,929 | |
Equity | |||||
Share capital | 2,118 | 2,118 | 2,118 | 2,118 | |
Share premium | 573 | 573 | 573 | 573 | |
Translation reserve | 269 | 265 | - | - | |
Reserve for own shares | (222) | (128) | - | - | |
Retained earnings | 24,671 | 14,983 | 20,672 | 13,530 | |
Total shareholders' equity | 27,409 | 17,811 | 23,363 | 16,221 | |
Total equity and liabilities | 48,282 | 48,902 | 41,168 | 52,150 |
Audited Statement of Cash Flows for the period ended 2 April 2011 | ||||||
(2010: for the period ended 27 March 2010) | Group | Company | ||||
2011 | 2010 | 2011 | 2010 | |||
£'000 | £'000 | £'000 | £'000 | |||
Cash flows from operating activities | ||||||
Net Profit | 8,488 | 1,808 | 5,954 | 872 | ||
Adjustments for: | ||||||
Tax | 2,598 | 608 | 2,899 | (104) | ||
Depreciation | 3,072 | 3,138 | 500 | 505 | ||
Net IAS 19 pension adjustments within SCI | (9,392) | 881 | (9,392) | 881 | ||
Past service pension deficit payments | (996) | (626) | (996) | (626) | ||
Foreign exchange gain on currency borrowings | (121) | (96) | - | - | ||
Loss on disposal of property, plant and equipment | 113 | 28 | - | - | ||
Net bank interest income & expense | (29) | 270 | (736) | (849) | ||
Share based payments | 114 | 102 | 114 | 102 | ||
Dividends received from Subsidiary Companies | - | - | (2,500) | (2,700) | ||
Changes in working capital: | ||||||
(Increase) / decrease in inventories | (1,767) | 227 | - | - | ||
(Increase) / decrease in trade and other receivables | (26) | (1,673) | 294 | (1,608) | ||
(Decrease) / increase in trade and other payables | (326) | 2,832 | (5,224) | 6,011 | ||
Interest received | 197 | 14 | 802 | 1,042 | ||
Interest paid | (309) | (136) | (211) | (42) | ||
Tax paid | (444) | (1,089) | (452) | (1,128) | ||
Net cash generated from / (used by) operating activities | 1,172 | 6,288 | (8,948) | 2,356 | ||
Cash flows from investing activities | ||||||
Purchase of intangible assets | (75) | (15) | - | (15) | ||
Purchases of property, plant and equipment | (2,200) | (1,213) | (80) | (239) | ||
Proceeds from sale of property, plant and equipment | 6 | 2 | - | - | ||
Dividends received | - | - | 2,500 | 2,700 | ||
Net cash (used in) / generated from investing activities | (2,269) | (1,226) | 2,420 | 2,446 | ||
Cash flows from financing activities | ||||||
Proceeds from issue of new loans | 3,153 | 329 | 3,000 | 329 | ||
Repayment of borrowings | (2,120) | (2,240) | (2,104) | (2,240) | ||
Issue / (repayment) of inter-company loans | - | - | 5,848 | (1,000) | ||
Purchase of LTIP investments | (152) | - | - | - | ||
Dividends paid to shareholders | (623) | (515) | (635) | (525) | ||
Net cash (used in) /generated from financing activities | 258 | (2,426) | 6,109 | (3,436) | ||
Net (decrease) / increase in cash and cash equivalents | (839) | 2,636 | (419) | 1,366 | ||
Effect of exchange rate fluctuations on cash held | 71 | (222) | - | - | ||
Net (decrease) / increase in cash and cash equivalents | (768) | 2,414 | (419) | 1,366 | ||
Cash and cash equivalents at the start of the period | 5,050 | 2,636 | 3,420 | 2,054 | ||
Cash and cash equivalents at the end of the period | 4,282 | 5,050 | 3,001 | 3,420 | ||
Cash and cash equivalents consists of: | ||||||
Cash at bank and in hand | 4,282 | 5,050 | 3,001 | 3,420 | ||
Audited Statement of Changes in Equity | ||||||
Group | ||||||
All figures in £'000 | Share capital | Share premium | Translation reserve | Own Shares | Retained earnings | Total |
At 28 March 2009 | 2,118 | 573 | 532 | (128) | 17,079 | 20,174 |
Profit for the period | - | - | - | - | 1,808 | 1,808 |
Exchange differences | - | - | (267) | - | - | (267) |
Actuarial losses on retirement benefit liabilities (net of deferred tax) | - | - | - | - | (3,491) | (3,491) |
Total other comprehensive income | - | - | (267) | - | (3,491) | (3,758) |
Dividends paid | - | - | - | - | (515) | (515) |
Share based payment charge | - | - | - | - | 102 | 102 |
Total contributions by and distributions to owners of the Group | - | - | - | - | (413) | (413) |
At 27 March 2010 | 2,118 | 573 | 265 | (128) | 14,983 | 17,811 |
Profit for the period | - | - | - | - | 8,488 | 8,488 |
Exchange differences | - | - | 4 | - | - | 4 |
Actuarial gains on retirement benefit liabilities (net of deferred tax) | - | - | - | - | 1,767 | 1,767 |
Total other comprehensive income | - | - | 4 | - | 1,767 | 1,771 |
Dividends paid | - | - | - | - | (623) | (623) |
Share based payment charge | - | - | - | - | 114 | 114 |
Distribution of own shares | - | - | - | 58 | (58) | - |
Consideration paid for own shares | - | - | - | (152) | - | (152) |
Total contributions by and distributions to owners of the Group | - | - | - | (94) | (567) | (661) |
At 2 April 2011 | 2,118 | 573 | 269 | (222) | 24,671 | 27,409 |
Audited Statement of Changes in Equity | ||||
Company | ||||
All figures in £'000 | Share capital | Share premium | Retained earnings | Total |
At 28 March 2009 | 2,118 | 573 | 16,572 | 19,263 |
Profit for the period | - | - | 872 | 872 |
Actuarial losses on retirement benefit liabilities (net of deferred tax) | - | - | (3,491) | (3,491) |
Total other comprehensive income | - | - | (3,491) | (3,491) |
Dividends paid | - | - | (525) | (525) |
Share based payment charge | - | - | 102 | 102 |
Total contributions by and distributions to owners of the Group | - | - | (423) | (423) |
At 27 March 2010 | 2,118 | 573 | 13,530 | 16,221 |
Profit for the period | - | - | 5,954 | 5,954 |
Actuarial gains on retirement benefit liabilities (net of deferred tax) | - | - | 1,767 | 1,767 |
Total other comprehensive income | - | - | 1,767 | 1,767 |
Dividends paid | - | - | (635) | (635) |
Share based payment charge | - | - | 114 | 114 |
Distribution of own shares | - | - | (58) | (58) |
Total contributions by and distributions to owners of the Group | - | - | (579) | (579) |
At 2 April 2011 | 2,118 | 573 | 20,672 | 23,363 |
Preliminary Results for the year ended 2 April 2011
1. Basic profits per share have been calculated on the profit after taxation of £8,488,000 (2010: £1,808,000) divided by the weighted average number of Ordinary shares in issue during the period of 8,472,368 (2010: 8,472,368).
2. The dividend will, if approved, be paid on 12 August 2011 to all shareholders on the Register on 15 July 2011.
3. The financial information set out above does not constitute the statutory accounts for the years ended 2 April 2011. Statutory accounts for 2010 have been delivered to the Registrar of Companies and those for 2011 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 498 (2) or (3) of the Companies Act 2006.
4. The Annual Report and Accounts for 2011 will be posted to shareholders on 13 July 2011. They will also be available on the Company's website (www.cropper.com) and 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 11.00am on Wednesday 3 August 2011 at the Bryce Institute, Burneside, Kendal, Cumbria.