Statement re IAS19 and TPMS

RNS Number : 4047G

Cropper(James) PLC

11 May 2011

 



11^th May 2011

James Cropper PLC ("the Company")

Financial year ended 2^nd April 2011.

The Company operates two funded pension schemes providing defined benefits for the majority of its full time employees. As from 1^st 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 2^nd 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 2^nd April 2011. 

Membership of these schemes has been closed to new members for ten years.

Further to the statement issued on 5^th January 2011 the Company confirms that its subsidiary The Paper Mill Shop Limited ("TPMS") had closed all of its retail outlets by 2^nd 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 2^nd 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 2^nd April 2011 the Company's other businesses have performed in line with the comments made by the Chairman in the Interim Statement issued on 16^th 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 28^th 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: [phone]	Telephone: [phone]
www.cropper.com

 

END

 

 

MSCXFLFFFEFBBBV