The advanced paper products group, announces Half year results to 27 September 2014

The advanced paper products group, announces Half year results to 27 September 2014 Half-year to 27 September 2014 Half-year to 28 September 2013 Full-year to 29 March 2014 Revenue 40.1m 42.3m 84.5m EBITDA (before net IAS19 pension adjustment) 2.7m 2.2m 5.2m Profit before tax Trading profit after interest 1.2m 0.6m 2.1m IAS 19 pension adjustment ( 0.4m) ( 0.4m) ( 0.8m) 0.8m 0.2m 1.3m Earnings per share diluted 6.7p 1.8p 15.0p Dividends per share 2.2p 2.2p 7.9p Gearing (before IAS 19 pension deficit) 28% 37% 35% Gearing (after IAS 19 pension deficit) 42% 55% 51% Capital expenditure 0.6m 0.9m 3.0m Sales in TFP up 10% on comparable period, down 7% in paper. EBITDA up 23% on comparable period to 2.7m. Trading profit up 100% on prior year comparable period. The new executive team are all in place and focused on delivering the growth plans. Merger of the two paper businesses is extending commercial reach. Creation of Group Operations function is delivering efficiencies across manufacturing platforms New product introductions have been greeted favourably. The investment in TFP s 3 rd manufacturing line is underway. The Technology and Innovation directorate is making good progress with creating diversification opportunities. It is anticipated that the Group will continue to operate in line with the Board s expectations and our ambitions beyond the immediate future remain significant. I am very pleased with the changes we have made to our team and organisational structure in recent months and years. This is allowing us to better exploit the Group s growth potential and as such I am confident that we are on track to deliver improved returns in the future. Mark Cropper, Chairman Enquiries: Isabelle Maddock, Group Finance Director Robert Finlay, Nick Ellis 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 27 September 28 September 29 March 2014 2013 2014 Profit and Loss Summary '000 Group turnover '000 40,109 42,322 84,518 Trading profit 1,431 782 2,545 Add back: Depreciation 1,233 1,396 2,654 EBITDA (before IAS 19 pension adjustment) 2,664 2,178 5,199 Trading profit before interest 1,431 782 2,545 Net interest (214) (220) (457) Trading profit before tax 1,217 562 2,088 (After future service pension contributions paid) Net IAS 19 pension adjustments to Operating profit (186) (113) (307) Net interest (253) (233) (468) Net pension adjustment before tax (439) (346) (775) Overall Group after pension adjustments Profit before interest 1,245 669 2,238 Net interest (467) (453) (925) Profit before tax 778 216 1,313 Earnings per Share - diluted 6.7p 1.8p 15.0p Dividends per share 2.2p 2.2p 7.9p Balance Sheet Summary '000 Non-pension assets - excluding cash 50,864 48,813 51,093 Non-pension liabilities - excluding borrowings (13,151) (10,394) (11,230) 37,713 38,419 39,863 Net IAS 19 pension deficit (after deferred tax) (9,932) (9,375) (9,312) 27,781 29,044 30,551 Net borrowings (8,178) (10,286) (10,277) Equity shareholders' funds 19,603 18,758 20,274 Gearing % - before IAS 19 deficit 28% 37% 35% Gearing % - after IAS 19 deficit 42% 55% 51% Capital Expenditure '000 616 941 2,958

STATEMENT BY THE CHAIRMAN, M A J CROPPER Group revenue for the half year was down 5% on the comparable period at 40.1 million. A lower volume of sales in the first half of the year has been mitigated by lower input costs and enhanced product mix. Prior to the IAS19 pension adjustment the Group has grown trading profit to 1,200,000 against 600,000 last year. The profits before tax after IAS19 pension adjustment has risen to 800,000 from 200,000 at the comparable period last year. The increase in profitability is largely due to lower input costs, reduced production costs (helped by the newly combined operations team) and an improved product mix. Merging the two paper businesses has generated a greater number of commercial opportunities. The new management team in Technical Fibre Products is delivering growth in sales which includes newly developed products and additional geographical markets. Technical Fibre Products ( TFP ) TFP s first half sales were up 10% overall on last year and the improved profitability is in line with management expectations. There has been a strong programme of commercial activities focused on increasing market awareness and promoting new product developments. We have seen sales grow in defence, energy and consumer electronics markets. We made our first sales into China and for a specific programme here in the UK in the wind turbine industry. Work has started on a third manufacturing line at Burneside, which will double capacity for our specialist non-woven materials. This investment is a key step, not just to support growth within our existing customer base, but also to create the capacity to support our ambitious growth plans over coming years. James Cropper ( James Cropper Paper Products ) James Cropper sales in the opening half were down 7% on the comparable period. This reduction includes the planned exit of low margin declining businesses and dips in some key account demand cycles. Profits relative to the comparable period are holding up. Production efficiencies, product mix enhancements, and lower input costs, together combined to more than offset lower sale volumes. Gas prices in the UK proved favourable to us in the first half of this year. Northern Bleached Softwood Kraft ( NBSK ) prices rose in the period and have been dampened by exchange rates. Pulp substitution by fibre produced from the reclaimed fibre plant continues to mitigate the impact of pulp volatility. Earlier in the year we took the decision to exit from some non-strategic, unprofitable display board business and the financial results include some one-off costs incurred in making this change.

The new commercial team is shifting focus to higher margin products and markets. A tangible example of this is the Khora digital inkjet product, a printable canvas that folds to form instant wall art. This builds on the success of our highly popular inkjet board range. Khora was launched at the recent Photokina imaging fair in Cologne, and was well received as a true innovation in this sector, which will compete strongly against the existing block canvas market. We recently launched 5 new branded ranges at the Packaging Innovations trade event in London. One of these is our new Coffee range, a range of papers that demonstrates the highest standards in sustainable, luxury paper production. This utilises materials from our pioneering reclaimed fibre facility, which was the first in the world to be able to recycle coffee cups. Papers in the Coffee range comprise of 50% reclaimed fibres (RCF) that were once single use coffee cups, offering customers an opportunity to embrace responsible values alongside product and brand values. Cash and borrowings At 27 September 2014 gross drawn down loans and leases totalled 9.8 million, with 1.6 million held as cash at bank. The Group has un-drawn overdraft facilities of 3.5 million, US$1.0 million and 1.0 million. Gearing at the half year end, after deduction of the IAS 19 pension deficit, was 42% (28% prior to IAS 19). Pensions and International Accounting Standard 19 ( IAS 19 ) The Group operates two funded pension schemes providing defined benefits for just over 40% of its employees. The IAS19 valuations of these schemes as at 27 Sept 2014 revealed a combined deficit of 12,415,000, compared with 11,640,000 at 29 March 2014, an increase of 775,000. The primary reason for the increase in the schemes liabilities is the discount rate of 4.10% used at Sept 2014 compared to 4.50% at March 2014. In April 2011, future increases in pensionable pay were capped at a maximum of 2% per annum. At this time the combined deficit, net of deferred tax, was 1,039,000. At September 2014 this has increased by 8,893,000 to a combined deficit, net of deferred tax of 9,932,000. This deterioration is largely due to the negative impact of low yields on corporate bonds, driven by low interest rates. In accordance with IAS 19 the expected return on assets is restricted to the discount rate used for valuing liabilities. This does not therefore reflect our expectations of actual asset performance. In previous years it was possible to take credit for the expected return on plan assets in excess of the discount rate. The result of this change is to increase the cost shown in the Profit and Loss Account, with a corresponding decrease in losses recognised in Other Comprehensive Income. The net adverse impact of IAS 19 on profit for the six months is 439,000, compared to 346,000 for the comparable period. Finance costs were 253,000 compared to 233,000 adverse in the comparable period.

Outlook The new commercial team in James Cropper Paper are focused on improving the product mix and driving targeted growth areas. This includes a re-focus on export markets and increasing our presence in the luxury packaging and food packaging markets. Combining the two sales teams gives greater scope to cross sell a wider range of products to a bigger target market. The development of a range of branded and stocked items will generate stable returns over the medium term. The outlook in the short term faces headwinds from the slow European economies, but the actions in place will deliver improved results over the coming period. Strong sales in the first half and a robust order book going into the second half leaves TFP well placed to deliver on expectations for the full year. It is anticipated that the Group will continue to operate in line with the Board s expectations and our ambitions beyond the immediate future remain significant. I am very pleased with the changes we have made to our team and organisational structure in recent months and years. This is allowing us to better exploit the Group s growth potential and as such I am confident that we are on track to deliver improved returns in the future. Mark Cropper Chairman 11 November 2014

James Cropper Plc Un-audited Statement of Comprehensive Income for the period 26 weeks to 26 weeks to 52 weeks to 27 September 28 September 29 March 2014 2013 2014 '000 '000 '000 Continuing operations Revenue 40,109 42,322 84,518 Operating profit 1,245 669 2,238 Finance Costs Interest payable and similar charges (467) (454) (927) Interest receivable and similar income - 1 2 Profit before taxation 778 216 1,313 Taxation (168) (50) 58 Profit for the period 610 166 1,371 Other comprehensive income: Foreign currency translation (12) 42 55 Retirement benefit liabilities - actuarial losses (1,055) (1,633) (1,365) Deferred tax on actuarial losses on retirement benefit liabilities 211 343 (53) Deferred tax on share options - - 361 Income tax on other comprehensive income - - 67 Total comprehensive income for the period attributable to equity holders of the Company (246) (1,082) 436 Earnings per share - basic 6.8p 1.9p 15.4p Earnings per share -diluted 6.7p 1.8p 15.0p Dividend declared in the period - pence per share 2.2p 2.2p 7.9p

James Cropper Plc Un-audited Statement of Financial Position at 27 September 2014 28 September 2013 29 March 2014 '000 '000 '000 Assets Intangible assets 419 399 480 Property, plant and equipment 20,790 20,741 21,294 Deferred tax assets 974 47 820 Total non- current assets 22,183 21,187 22,594 Inventories 14,383 12,697 13,300 Trade and other receivables 15,272 14,836 16,019 Cash and cash equivalents 1,629 1,208 692 Current tax assets - 140 - Total current assets 31,284 28,881 30,011 Total assets 53,467 50,068 52,605 Liabilities Trade and other payables 11,541 7,921 9,509 Other financial liabilities 4 28 11 Loans and borrowings 2,884 2,401 3,040 Current tax liabilities 97-202 Total current liabilities 14,526 10,350 12,762 Long-term borrowings 6,923 9,093 7,929 Retirement benefit liabilities 12,415 11,867 11,640 Deferred tax liabilities - - - Total non-current liabilities 19,338 20,960 19,569 Total liabilities 33,864 31,310 32,331 Equity Share capital 2,244 2,220 2,243 Share premium 918 822 915 Translation reserve 299 298 311 Reserve for own shares (102) (102) (102) Retained earnings 16,244 15,520 16,907 Total shareholders' equity 19,603 18,758 20,274 Total equity and liabilities 53,467 50,068 52,605

Un-audited Consolidated Statement of Cash Flows 26 weeks to 26 weeks to 52 weeks to 27 September 28 September 29 March 2014 2013 2014 '000 '000 '000 Cash flows from operating activities Net Profit 610 166 1,371 Adjustments for: Tax 168 50 (58) Depreciation 1,233 1,396 2,654 Net IAS 19 pension adjustments within SCI 439 346 775 Past service pension deficit payments (720) (465) (853) Foreign exchange differences 7 191 109 Loss on disposal of property, plant and equipment - 37 27 Net bank interest expense 212 220 457 Share based payments 78 (7) 71 Changes in working capital: (Increase) in inventories (1,079) (856) (1,462) Decrease / (increase) in trade and other receivables 585 (2,340) (1,143) Increase in trade and other payables 2,221 1,958 1,228 Interest received - 5 2 Interest paid (215) (233) (462) Tax paid (217) (174) (346) Net cash generated from operating activities 3,322 294 2,370 Cash flows from investing activities Purchase of intangible assets - (122) (336) Purchases of property, plant and equipment (616) (819) (2,622) Proceeds from sale of property, plant and equipment - 3 13 Net cash (used in) investing activities (616) (938) (2,945) Cash flows from financing activities Proceeds from issue of ordinary shares 4 11 127 Proceeds from issue of new loans - 1,372 2,238 Repayment of borrowings (1,234) (1,212) (2,502) Dividends paid to shareholders (508) (501) (697) Net cash (used in) from financing activities (1,738) (330) (834) Net Increase / (decrease) in cash and cash equivalents 968 (974) (1,409) Effect of exchange rate fluctuations on cash held (31) (67) (148) Net Increase / (decrease) in cash and cash equivalents 937 (1,041) (1,557) Cash and cash equivalents at the start of the period 692 2,249 2,249 Cash and cash equivalents at the end of the period 1,629 1,208 692 Cash and cash equivalents consists of: Cash at bank and in hand 1,629 1,208 692

Statement of Changes in Equity Group Share capital Share premium Translation reserve Own Shares Retained earnings Total '000 '000 '000 '000 '000 '000 At 30 March 2013 2,217 814 256 (102) 17,152 20,337 Profit for the period - - - - 1,371 1,371 Exchange differences - - 55 - - 55 Actuarial losses on retirement benefit liabilities (net of deferred tax) - - - - (1,418) (1,418) Tax on share options - - - - 361 361 Other comprehensive income tax - - - - 67 67 Total other comprehensive income - - 55 - (990) (935) Dividends paid - - - - (697) (697) Share based payment charge - - - 71 71 Proceeds from issue of ordinary shares 26 101 - - - 127 Total contributions by and distributions to owners of the Group 26 101 - - (626) (499) At 29 March 2014 2,243 915 311 (102) 16,907 20,274 Profit for the period - - - - 610 610 Exchange differences - - (12) - - (12) Actuarial losses on retirement benefit liabilities (net of deferred tax) - - - - (844) (844) Total other comprehensive income - - (12) - (844) (856) Dividends paid - - - - (508) (508) Share based payment charge - - - 78 78 Proceeds from issue of ordinary shares 1 3 - - - 4 Total contributions by and distributions to owners of the Group 1 3 - - (430) (426) At 27 September 2014 2,244 918 299 (102) 16,244 19,603

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 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. EBITDA refers to Earnings before interest, tax, depreciation and amortisation. vi. 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. 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 27 September 2014, 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 29 March 2014. 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 29 March 2014 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 27 September 2014 have been calculated by dividing the profits attributable to ordinary shareholders by 8,973,980 (2013: 8,872,629) 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 (2013: 2.2p per share) is proposed and will be paid on 9 January 2015 to holders on the register at the close of business on 12 December 2014. The dividend relating to the 52 week year to 29 March 2014 was made up of an interim payment of 196,000 (2.2p per share) and a final dividend payment of 508,000 (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 27 September 28 September 29 March 2014 2013 2014 IAS19 DEFICIT '000 '000 '000 Current Service Charge (459) (453) (969) Future service contributions paid 273 340 662 Net impact on Operating Profit (186) (113) (307) Finance costs (253) (233) 468 Net impact on Profit and Loss Account (439) (346) (775) Past service deficit contributions paid 719 465 853 Actuarial gains or losses (1,055) (1,633) (1,365) Opening deficit (11,640) (10,353) (10,353) Closing deficit (12,415) (11,867) (11,640) Deferred Taxation 2,483 2,492 2,328 Net - Deficit (9,932) (9,375) (9,312) 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 27 September 28 September 29 March 2014 2013 2014 Profit before Tax '000 '000 '000 Trading profit 1,217 562 2,088 Net pension adjustment Current Service Charge (459) (453) (969) Future service contributions paid 273 340 662 Net impact on Operating Profit (186) (113) (307) Finance costs (253) (233) (468) Net impact on Profit before Tax (439) (346) (775) As reported 778 216 1,313