Half-year results to 28 September 2013

12 November 2013                                                                                                                                   

 

James Cropper plc

the niche specialist paper and materials group, is pleased to announce its

Half-year results to 28 September 2013

 

 

 

	Half-year to 28 September 2013	Half-year to 29 September 2012	Full-year to 30 March 2013
Turnover	£42.3m	£39.0m	£79.2m
EBITDA (before net IAS19 pension adjustment)	£2.2m	£2.9m	£5.4m
Profit before tax
Trading profit after interest	£0.6m	£1.2m	£2.0m
IAS 19 pension adjustment	(£0.4m)	(£0.2m)	(£0.2m)
	£0.2m	£1.0m	£1.8m
Earnings per share - diluted	1.8p	8.9p	16.5p
Dividends per share	2.2p	2.2p	7.9p
Gearing (before IAS 19 pension deficit)	37%	31%	33%
Gearing (after IAS 19 pension deficit)	55%	45%	46%
Capital expenditure	£0.9m	£1.2m	£4.1m
·      Speciality Papers sales in H1 were up 10% on the comparable period.
·      Converting sales in H1 were up 15% primarily due to sales of higher margin products.
·      TFP's sales in H1 were down 5% as a consequence of customer ordering patterns.
·      TFP is at an advanced stage of qualification to supply material for a major new airliner programme.
·      TFP have commissioned a £1.5 million nano-carbon coating line at their facility in the USA.
·      Speciality Papers has secured major business with a number of global luxury brands and premier wallpaper companies that will materialise as sales in the second half.
·      Speciality Papers' Reclaimed Fibre plant will allow levels of pulp substitution to be of the order of 12% by the end of the financial year.
·      Speciality Papers' margins impacted by higher input costs and "green" levies but partially offset by increased used of reclaimed fibre.
·      Speciality Papers will have established a subsidiary company in mainland China for the purpose of selling and marketing by the end of the financial year.
·      Impending creation of Operations and Technology & Innovation Directorates.

 

 

"The resurgence of sales in Speciality Papers and further sales growth in Converting is very encouraging. I am looking to sustain this growth in our paper based businesses in the second half. This year the imposition of additional "green" levies, higher energy costs and the rising price of pulp will have a negative effect on the profitability of Speciality Papers. These costs will be partly mitigated by the increasing use of fibre from our new Reclaimed Fibre facility.

 

"The short fall in TFP sales in the first half was expected, however sales are expected to increase in the final quarter.

 

"At the Group level, restructuring will be largely complete in the current financial year and will cost in the region of £0.4 million.It is anticipated that Group operating profitability for the second half of the year will be significantly higher than that achieved in the first, however the impact of inflated input costs - namely higher than anticipated rises in NBSK and gas - will not be fully recovered in the second half.  I therefore feel that at the present time it is prudent to anticipate an out turn for the full financial year in line with last year's PBT.

 

"I am very pleased with the progress of our restructuring and investment plans. These are providing us with a strong platform for near and long term growth and our ambitions remain significant.  The Group has made a number of significant investments in the current period across all aspects of the business and whilst these have combined with higher input costs to impact the current year's profitability we are confident that they provide a stronger platform to future growth."

 

Mark Cropper, Chairman

 

 

 

Enquiries:
John Denman, Group Finance Director	Richard Baty, Director, Corporate Finance
James Cropper PLC (AIM:CRPR.L)	Westhouse Securities Limited
Telephone: +44 (0) 1539 722002	Telephone: +44 (0) 20 7601 6100
www.cropper.com	www.westhousesecurities.com

 

 

 

 

 

Summary of Results	Half-year to	Half-year to	Full-year to
	28 September	29 September	30 March
	2013	2012	2013
Profit and Loss Summary £'000
Group turnover £'000	42,322	39,037	79,241
Trading profit	782	1,449	2,535
Add back: Depreciation	1,396	1,406	2,818
EBITDA (before IAS 19 pension adjustment)	2,178	2,855	5,353
Trading profit before interest	782	1,449	2,535
Net interest	(220)	(264)	(483)
Trading profit before tax	562	1,185	2,052
(After future service pension contributions paid)
Net IAS 19 pension adjustments to
Operating profit	(113)	(245)	(426)
Net interest	(233)	89	193
Net pension adjustment before tax	(346)	(156)	(233)
Overall Group after pension adjustments
Profit before interest	669	1,204	2,109
Net interest	(453)	(175)	(290)
Profit before tax	216	1,029	1,819
Earnings per Share - diluted	1.8p	8.9p	16.5p
Dividends per share	2.2p	2.2p	7.9p
Balance Sheet Summary £'000
Non-pension assets - excluding cash	48,813	47,202	48,426
Non-pension liabilities - excluding borrowings	(10,394)	(10,903)	(10,831)
	38,419	36,299	37,595
Net IAS 19 pension deficit (after deferred tax)	(9,375)	(9,013)	(7,972)
	29,044	27,286	29,623
Net borrowings	(10,286)	(8,477)	(9,286)
Equity shareholders' funds	18,758	18,809	20,337
Gearing % - before IAS 19 deficit	37%	30%	33%
Gearing % - after IAS 19 deficit	55%	45%	46%
Capital Expenditure £'000	941	1,219	4,072

 

 

 

STATEMENT BY THE CHAIRMAN, M A J CROPPER

 

Group turnover for the half year was up 8% on the comparable period at £42.3 million. Despite increased revenues the first half of the year saw a fall in Group profits before tax (but after IAS19 pension adjustment), of approximately £800,000 to £216,000. Prior to the IAS19 pension adjustment profit before tax was £562,000 against £1,185,000 last year.

 

The reduction in profitability was largely anticipated due to higher input costs that the Group was unable to pass through to its customers and an increase in green levies.  The higher input costs were partially mitigated by the Group's Reclaimed Fibre plant. This will make a greater contribution going forward as we expect to be able to increase the proportion of recycled feedstock into end product.

 

Technical Fibre Products ("TFP")

 

In line with management expectations TFP's first half sales were down 5% overall on last year as a consequence of the ordering pattern of a number of major customers in the Defence sector. Aerospace sales were up 52%. Significantly, TFP is at an advanced stage of qualification to supply material for a major new airliner programme which, on commercialisation will lead to a long term revenue flow. Sales into the fuel cell market were up 100% driven by demand for TFP's material in the construction of phosphoric acid fuel cell standby plants.

 

All US activities have now been relocated to our new facility inSchenectady, New York State. TFP has recently commissioned a £1.5 million nano-carbon coating line at Schenectady encouraged by the requirements of existing and potential new customers. We believe this investment will place TFP in a leading position with regard to the development of this new technology and will be of long term benefit. 

 

James Cropper Speciality Papers ("Speciality Papers")

 

In Speciality Papers total sales in the opening half were up 10% on the comparable period. Export sales increased by 17% whilst UK sales were up 5%. Overall volume was up 12%, with export volumes up 16%.

 

We are beginning to see benefits flowing from our increased market focus. In the first six months we have secured major business with a number of global luxury brands and premier wallpaper companies that will materialise as sales in the second half.

 

The cost of Northern Bleached Softwood Kraft ("NBSK") pulp opened at US$830/tonne and increased to US$870/tonne at the close of the period and has continued on a rising trend. Pulp costs were up some £0.5 million on the first half of the past financial year.

 

Considerable progress has been made with regard to pulp substitution by fibre produced from our new Reclaimed Fibre plant, with levels of substitution expected to be of the order of 12% by the end of the financial year. The plant uses innovative technology to extract fibre from specific paper-based consumer products, such as disposable coffee cups, which would otherwise be difficult to recycle. This fibre is extremely high quality which makes it an ideal substitute for wood-pulp and helps us to mitigate the impact of pulp price volatility.

 

The unit commodity cost of natural gas in the first half was up 17% with the overall cost of consumption being £2.3 million compared to £1.9 million in the comparable period.

 

Phase 3 of EUETS, a mandatory EU scheme relating to carbon dioxide emissions, was introduced as from 1 January 2013. Under Phase 3 our annual allowances were reduced from 41,000 tonnes to 17,000 tonnes per annum. Given that our annual emissions are in the region of 39,000 tonnes we have had to purchase further allowances for the balance of 22,000 tonnes. In addition, as from 1 April 2013 the Group was also subject to the Carbon Price Floor. This levy is a UK Government "green" tax, which places UK producers at a competitive disadvantage compared with competitors in the rest of EU as well as those in the rest of the world. These two measures will add £0.4 million to Speciality Papers' cost base in the current financial year.

 

Despite the award of a Regional Growth Fund ("RGF") grant in October 2012 the Board has decided not to proceed with an investment in a steam raising boiler. It was our intention that the plant would be fuelled by a mixture of solid recovered fuel produced from municipal waste and the Group's own paper-making effluent residues. Our decision has been principally influenced by restrictions imposed by EU State Aid rules requiring that the boiler be fuelled by waste wood for a number of years in order to receive the full grant. This fuel option is high risk, even with a RGF grant of £2.9 million, because it would necessitate us having to invest a significant sum of capital to allow us to substitute one expensive source of energy, gas, for another expensive source of energy, waste wood.

 

James Cropper Converting ("Converting")

 

Converting traded ahead of the first half of last year. Sales were up 15% primarily due to sales of higher margin products.  

 

Restructuring and Investment

 

Our restructuring continues with the impending creation of Operations and Technology & Innovation Directorates. Dave Watson will join the Group as Chief Operating Officer in January 2014 being responsible for all global manufacturing activities. It is also anticipated that he will be appointed to the Board of the Company. Dave has a strong manufacturing background with more than 25 years' experience in the Industrial, Automotive, Healthcare and Security markets.  He is currently the Site Manager for 3M Personal Safety Division at Aycliffe.

 

January will also see the appointment of Patrick Willink, currently Operations Director for Speciality Papers, as Chief Technology Officer with a brief to explore, develop and deploy new products and technologies to support both the Group's existing businesses and any future investment in new business opportunities.

 

We also continue to strengthen the sales and marketing capability of each of our businesses through selective recruitment in order to deliver our growth plans. To increase market awareness of our capability we have staged a number of high profile events in the UK and abroad.

 

By the latter part of the current financial year Speciality Papers will have established a subsidiary company in mainland China for the purpose of selling and marketing within China. This will allow customers to retain full chain of custody over products supplied and to be invoiced in local currency. The subsidiary will be staffed by Chinese nationals.

 

Restructuring will be largely complete within the current financial year and will cost in the region of £0.4 million.

 

In addition we continue to progress our programme of investment to enhance our capacities and capabilities and to improve energy and raw material efficiencies. Total expenditure in the full year is anticipated to be in the region of £2.5 million, including TFP's nano-carbon coating line.

 

Pensions and International Accounting Standard 19 ("IAS 19")

 

In accordance with IAS 19 for accounting periods beginning on or after 1 January 2013, the expected return on assets has to be restricted to the discount rate used for valuing liabilities. This does not therefore reflect actual asset performance.

 

The expected rate of return on assets for the period ending 30 March 2013 was 5.63% p.a. However, for the period commencing 31 March 2013 the return on assets has been restricted to the discount rate of 4.65% p.a. This results in a lower expected return on assets for the period ending 28 September 2013 and therefore a higher finance cost. Thus although the overall liabilities of the Group's two defined benefit pension schemes decreased by 1.0% over the six months, the asset value of the schemes declined by 3.0%. As a result the schemes' combined deficit rose by £1,514,000 to £11,867,000 since the previous year end.

 

The net adverse impact of IAS 19 on profit for the six months is £346,000, compared to £156,000 for the comparable period. Finance costs were £233,000 adverse compared to £89,000 favourable in the comparable period.

 

Since 1 April 2011, when future increases in pensionable pay were capped at a maximum of 2% per annum, the combined deficit, net of deferred tax, has increased by £8,336,000 from £1,039,000 to £9,375,000. This deterioration is entirely due to the negative impact of Quantitative Easing, low interest rates and the change of accounting basis relating to expected return on assets.

 

Cash and borrowings

 

At 28 September 2013 gross drawn down loans and leases totalled £11.5 million, with £1.2 million held as cash at bank. In addition the Group had un-drawn overdraft facilities of £3.4 million, US$1.0 million and €1.0 million.

 

Gearing at the half year end, after deduction of the IAS 19 pension deficit, was 55% (before 37%).

 

Working capital continued to remain under tight control. In the second half gearing will ease upward as a consequence of increased expenditure on major revenue and capital projects.

 

Outlook

 

The resurgence of sales in Speciality Papers and further sales growth in Converting is very encouraging. I am looking to sustain this growth in our paper based businesses in the second half. This year the imposition of additional "green" levies, higher energy costs and the rising price of pulp will have a negative effect on the profitability of Speciality Papers. These costs will be partly mitigated by the increasing use of fibre from our new Reclaimed Fibre facility.

 

The short fall in TFP sales in the first half was expected, however sales are expected to increase in the final quarter.

 

At the Group level, restructuring will be largely complete in the current financial year and will cost in the region of £0.4 million.It is anticipated that Group operating profitability for the second half of the year will be significantly higher than that achieved in the first, however the impact of inflated input costs - namely higher than anticipated rises in NBSK and gas - will not be fully recovered in the second half.  I therefore feel that at the present time it is prudent to anticipate an out turn for the full financial year in line with last year's PBT.

 

I am very pleased with the progress of our restructuring and investment plans. These are providing us with a strong platform for near and long term growth and our ambitions remain significant.  The Group has made a number of significant investments in the current period across all aspects of the business and whilst these have combined with higher input costs to impact the current year's profitability we are confident that they provide a stronger platform to future growth.

 

 

Mark Cropper

Chairman

 

12 November

 

                                                                                                               

Un-audited Statement of Comprehensive Income for the period
	26 weeks to	26 weeks to	52 weeks to
	28 September	29 September	30 March
	2013	2012	2013
	£'000	£'000	£'000
Continuing operations
Revenue	42,322	39,037	79,241
Operating profit	669	1,204	2,109
Finance Costs
Interest payable and similar charges	(454)	(264)	(492)
Interest receivable and similar income	1	89	202
Profit before taxation	216	1,029	1,819
Taxation	(50)	(248)	(374)
Profit for the period	166	781	1,445
Other comprehensive income:
Foreign currency translation	42	(32)	(17)
Retirement benefit liabilities - actuarial losses	(1,633)	(4,373)	(3,382)
Deferred tax on actuarial losses on retirement benefit liabilities	343	1,006	533
Income tax on other comprehensive income	-	-	176
Total comprehensive income for the period attributable to equity holders of the Company	(1,082)	(2,618)	(1,245)
Earnings per share - basic	1.9p	9.2p	16.8p
Earnings per share -diluted	1.8p	8.9p	16.5p
Dividend declared in the period - pence per share	2.2p	2.2p	7.9p

 

 

 

Un-audited Statement of Financial Position at
	28 September 2013		29 September 2012	30 March 2013
	£'000		£'000	£'000
Assets
Intangible assets	399		775	515
Property, plant and equipment	20,741		19,714	21,219
Deferred tax assets	47		95	-
Total non- current assets	21,187		20,584	21,734
Inventories	12,697		12,734	11,848
Trade and other receivables	14,836		13,979	14,844
Cash and cash equivalents	1,208		3,022	2,249
Current tax assets	140		-	-
Total current assets	28,881		29,735	28,941
Total assets	50,068		50,319	50,675
Liabilities
Trade and other payables	7,921		8,211	8,138
Other financial liabilities	28		41	32
Loans and borrowings	2,401		3,823	4,013
Current tax liabilities	-		54	216
Total current liabilities	10,350		12,129	12,399
Long-term borrowings	9,093		7,676	7,522
Retirement benefit liabilities	11,867		11,705	10,353
Deferred tax liabilities	-		-	64
Total non-current liabilities	20,960		19,381	17,939
Total liabilities	31,310		31,510	30,338
Equity
Share capital	2,220		2,119	2,217
Share premium	822		575	814
Translation reserve	298		241	256
Reserve for own shares	(102)		(102)	(102)
Retained earnings	15,520		15,976	17,152
Total shareholders' equity	18,758		18,809	20,337
Total equity and liabilities	50,068		50,319	50,675

 

 

 

Un-audited Consolidated Statement of Cash Flows
	26 weeks to	26 weeks to	52 weeks to
	29 September	29 September	30 March
	2013	2012	2013
	£'000	£'000	£'000
Cash flows from operating activities
Net Profit	166	781	1,445
Adjustments for:
Tax	50	248	374
Depreciation	1,396	1,406	2,818
Net IAS 19 pension adjustments within SCI	346	156	233
Past service pension deficit payments	(465)	(522)	(960)
Foreign exchange differences	191	32	(55)
Loss on disposal of property, plant and equipment	37	-	12
Net bank interest expense	220	265	483
Share based payments	(7)	55	67
Changes in working capital:
(Increase) / decrease in inventories	(856)	(374)	519
(Increase) in trade and other receivables	(2,340)	(783)	(1,546)
Increase/ (decrease) in trade and other payables	1,958	(1,123)	(972)
Interest received	5	-	9
Interest paid	(233)	(272)	(506)
Tax paid	(174)	(4)	(107)
Net cash generated from operating activities	294	(135)	1,814
Cash flows from investing activities
Purchase of intangible assets	(122)	-	(157)
Purchases of property, plant and equipment	(819)	(1,219)	(3,915)
Proceeds from sale of property, plant and equipment	3	-	9
Net cash (used in) investing activities	(938)	(1,219)	(4,063)
Cash flows from financing activities
Proceeds from issue of ordinary shares	11	-	337
Proceeds from issue of new loans	1,372	688	5,844
Repayment of borrowings	(1,212)	(1,111)	(6,385)
Purchase of LTIP investments	-	(112)	(112)
Dividends paid to shareholders	(501)	(483)	(677)
Net cash (used in) from financing activities	(330)	(1,018)	(993)
Net (decrease) in cash and cash equivalents	(974)	(2,372)	(3,242)
Effect of exchange rate fluctuations on cash held	(67)	(44)	53
Net (decrease) in cash and cash equivalents	(1,041)	(2,416)	(3,189)
Cash and cash equivalents at the start of the period	2,249	5,438	5,438
Cash and cash equivalents at the end of the period	1,208	3,022	2,249
Cash and cash equivalents consists of:
Cash at bank and in hand	1,208	3,022	2,249

 

 

 

Statement of Changes in Equity
Group	Share capital	Share premium	Translation reserve	Own Shares	Retained earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000
At 31 March 2012	2,119	575	273	(226)	19,226	21,967
Profit for the period	-	-	-	-	1,445	1,445
						-
Exchange differences	-	-	(17)	-	-	(17)
Actuarial losses on retirement benefit liabilities (net of deferred tax)	-	-	-	-	(2,673)	(2,673)
Total other comprehensive income	-	-	(17)	-	(2,673)	(2,690)
Dividends paid	-	-	-	-	(677)	(677)
Share based payment charge	-	-	-		67	67
Proceeds from issue of ordinary shares	98	239	-	-	-	337
Distribution of own shares	-	-	-	236	(236)	-
Consideration paid for own shares	-	-	-	(112)	-	(112)
Total contributions by and distributions to owners of the Group	98	239	-	124	(846)	(385)
At 30 March 2013	2,217	814	256	(102)	17,152	20,337
Profit for the period	-	-	-	-	166	166
Exchange differences	-	-	42	-	-	42
Actuarial losses on retirement benefit liabilities (net of deferred tax)	-	-	-	-	(1,290)	(1,290)
Total other comprehensive income	-	-	42	-	(1,290)	(1,248)
Dividends paid	-	-	-	-	(501)	(501)
Share based payment charge	-	-	-		(7)	(7)
Proceeds from issue of ordinary shares	3	8		-		11
Distribution of own shares	-	-	-			-
Consideration paid for own shares	-	-	-		-	-
Total contributions by and distributions to owners of the Group	3	8	-	-	(508)	(497)
At 28 September 2013	2,220	822	298	(102)	15,520	18,758

 

 

 

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 Interpretations Committee ("IFRIC") interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

 

Management has chosen to maintain the terminology that readers are familiar with, all references to:

 

i.    "Profit and Loss Account" refers to the Statement of Comprehensive Income.

ii.    "Balance Sheet" refers to the Statement of Financial Position.

iii.   "Trading Operating Profit" refers to profits prior to income from joint ventures, other income and expenditure,  interest on borrowings and "Net IAS 19 pension adjustment"

iv.   "Trading Profit before Tax" refers to profits prior to "Net IAS 19 pension adjustment".

v.    "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.

 

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 28 September 2013, 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 30 March 2013.

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 30 March 2013 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 and diluted earnings per share for the half year to 28 September 2013 have been calculated by dividing the profits attributable to ordinary shareholders by 8,872,629 (2012: 8,475,667) 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 (2012: 2.2p per share) is proposed and will be paid on 10 January 2014 to holders on the register at the close of business on 13 December 2013. The dividend relating to the 52 week year to 30 March 2013 was made up of an interim payment of £193,000 (2.2p per share) and a final dividend payment of £483,000 (5.7p 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 Balance Sheet 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:

 

Income Statement

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.

Statement of Recognised Income and Expense

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 Balance Sheet dates.

 

 

	Half-year to	Half-year to	Full-year to
	28 September	29 September	30 March
	2013	2012	2013
IAS19 DEFICIT	£'000	£'000	£'000
Current Service Charge	(453)	(623)	(1,163)
Future service contributions paid	340	378	737
Net impact on Operating Profit	(113)	(245)	(426)
Finance costs	(233)	89	193
Net impact on Profit and Loss Account	(346)	(156)	(233)
Past service deficit contributions paid	465	522	960
Actuarial gains or losses	(1,633)	(4,373)	(3,382)
Opening deficit	(10,353)	(7,698)	(7,698)
Closing deficit	(11,867)	(11,705)	(10,353)
Deferred Taxation	2,492	2,692	2,381
Net - Deficit	(9,375)	(9,013)	(7,972)

 

It should be noted that the assumptions underlying the IAS 19 valuation are based on financial conditions at the Balance Sheet date. As market values of the scheme assets and the discount factors applied to the scheme liabilities will fluctuate, this method of valuation will often lead to large variations in the "pension balance" from period to period. Pension liabilities are discounted at the current rate of return on an AA rated quality corporate bond of equivalent currency and term. The actual contributions paid by the Group to its two final salary schemes are determined by the actuaries' "on-going" valuation.

 

 

	Half-year to	Half-year to	Full-year to
	28 September	29 September	30 March
	2013	2012	2013
Profit before Tax	£'000	£'000	£'000
Trading profit	562	1,185	2,052
Net pension adjustment
Current Service Charge	(453)	(623)	(1,163)
Future service contributions paid	340	378	737
Net impact on Operating Profit	(113)	(245)	(426)
Finance costs	(233)	89	193
Net impact on Profit before Tax	(346)	(156)	(233)
As reported	216	1,029	1,819