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11 May 2011 14:10
11th May 2011
James Cropper PLC ("the Company")
Financial year ended 2nd April 2011.
The Company 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 £1.4 million, compared with £14.2 million at the previous year end, a decrease of £12.8 million.
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. This means that the Company's published Statement of Comprehensive Income will show a credit of £10.2 million arising from curtailment.
After allowing for deferred tax on the deficits, shareholders' funds will consequently be uplifted by £9.2 million as at 2nd April 2011.
Membership of these schemes has been closed to new members for ten years.
Further to the statement issued on 5th January 2011 the Company confirms that its subsidiary The Paper Mill Shop Limited ("TPMS") had closed all of its retail outlets by 2nd April 2011. It is anticipated that TPMS will incur a loss, including full provision for all closure and redundancy costs, of approximately £1.8 million in the financial year ended 2nd April 2011. Of this total £0.7 million relates to trading loses and £1.1 million to exceptional exit costs. Cash out flow in the year was £1.0 million.
During the year to 2nd April 2011 the Company's other businesses have performed in line with the comments made by the Chairman in the Interim Statement issued on 16th November 2010.
Mark Cropper, the Company's Chairman said "We have started the new financial year having dramatically reduced the threat to the Company posed by its pension schemes and retailing activities. This enables us to focus with renewed energy and confidence on profitably growing our three specialist manufacturing businesses".
The Company's full year results will be announced on 28th June 2011.
ENDS
Enquiries: | |
Alun Lewis, Chief Executive | Neil Baldwin, Director - Corporate Finance |
John Denman, Group Finance Director | Corporate Advisory & Broking |
James Cropper PLC (AIM:CRPR.L) | Brewin Dolphin |
Telephone: +44 (0) 1539 722002 | Telephone: 0845 213 4726 |
www.cropper.com |
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