Jourdan PLC

(Jourdan or the "Company")

Results for the year ended 30 June 2009

Chairman's Statement

Financial Results

This has been another year of substantial progress with the timely disposal of the assets of the marginally profitable John Corby Limited business, a major increase in underlying profits from the continuing activities and the successful implementation of the agreement for the future funding of the Pension Fund.

Full year sales from continuing activities increased by 3% to £18.1 million (2008: £17.6 million). Operating profit from continuing activities before amortisation and impairment of intangibles was £1,975,000 (2008: £1,452,000 excluding a one off surplus of £410,000 on settlement of certain pension liabilities). Prior year figures have been amended to reflect John Corby Limited as a discontinued activity.

In overall terms profit before tax was £1,394,000 (2008: £344,000). Earnings per share for the year were 27.0p (2008: 9.0p).

The Company remains well capitalised, with net current assets of £561,000 at 30 June 2009 (2008: £358,000). Bank borrowing was reduced by 59% to £814,000 during the year and the Company has agreed new facilities with Lloyds TSB Bank plc for the year ending 1 July 2010.  

I am pleased to announce that your Directors recommend a final dividend of 8.0p per share (2008: 8.0p) making a total of 12.0p per share (2008: 8.0p) for the year. If approved at the Company's AGM on 22 October 2009, the final dividend will be paid on 27 November 2009 to members on the register on 16 October 2009.

Operating Companies

Westfield Medical/Clinipak, a leading UK manufacturer and supplier of single-use sterilisation packaging material to the medical and healthcare industry, achieved substantially improved sales and profits. Particular mention should be made of the growth in Export Sales of 23% from the previous record figure achieved for the year ended 30 June 2008; exports now comprise 40% of Westfield/Clinipak sales. Exports were boosted by the devaluation of sterling. I wish also to point out the excellent reputation both Westfield and Clinipak have developed for product quality and adherence to delivery dates.

Nelsons Labels had a difficult year reflecting the UK economy. The operational results showed some improvement, although the performance was adversely affected by continuing legal expenses arising from disputes with the previous owners of Prime Packaging. The Board anticipates that these will be resolved during the current year. Some of the bad debt from one of Nelsons' major French customers has been recouped, and we anticipate that further amounts will be received in the first half of the year.

Discontinued Activities

As reported last year, in May of 2008 the business of Suncrest was sold to a sister company of Magiglo Limited, which then continued to manufacture Corby trouser presses on behalf of the Company.  Corby remained responsible for all commercial functions but when the new owners of the Suncrest business went into administration in early 2009, the ongoing position became unsustainable. The Corby business was sold in May 2009. £224,000 was received during the 2009 financial year and a further £412,000 is due to be paid in monthly instalments until August 2010. In addition, Jourdan retained the responsibility for collecting outstanding debtors and paying creditors. The disposal of Corby was a further step in focusing our resources on the medical packaging industry.

Group Pensions

As at 30 June 2009 the Company's obligations in respect of the Jourdan Pension Fund (after tax) had increased to £2,318,000 compared with £2,070,000 as at 30 June 2008. In 2009 approximately £900,000 was paid by the Company into the Pension Fund and since 30 June 2009 another injection of £500,000 has been made. In addition the Company is required to make payments of approximately £400,000 per annum and these will continue to be made on a monthly basis. This is in respect of a Pension Fund which has only two active members, reduced from seven last year!  

People

Our employees have worked exceptionally hard to achieve these results in difficult market conditions. Their skill and motivation is essential to Jourdan's success, and we thank them all.

Group Reorganisation

On 26 June 2009 the business and assets of Nelsons Labels, together with the residual assets and liabilities of the Suncrest and Corby businesses, were hived up to Jourdan. Each continues to operate as stand-alone divisions of the Company.

The Company has today separately announced proposals for a delisting of the Company's shares from trading on AIM and an associated partial tender offer to enable the Company to buy in and cancel up to 680,002 ordinary shares at 250 pence per share.  Further details of these proposals are set out in that separate announcement. 

The proposals are subject to shareholder approval. A circular with full details of the proposals, together with a notice convening a general meeting to consider the requisite resolutions to give effect to the proposals will be sent to Shareholders shortly, along with the Company's Annual Report & Accounts for the year ended 30 June 2009. 

Outlook

Following the disposal of the Suncrest and Corby businesses, the Directors believe Jourdan is well positioned to yield positive returns to shareholders. Whilst trading conditions remain difficult for Nelsons Labels, the medical packaging business of Westfield Medical and Clinipak is a clear leader in a strong market place with excellent prospects. In addition, the Company holds valuable property assets and has taken major steps to manage its obligations in the pensions arena.

Trading for the year to date is satisfactory and, while the outturn for the current year cannot be certain given the prevailing economic climate, the Board anticipates that further progress will be made in the current year. 

  CONSOLIDATED INCOME STATEMENT

  CONSOLIDATED BALANCE SHEET

  CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE

  CONSOLIDATED CASH FLOW STATEMENT

  NOTES TO THE SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS

1.    Basis of preparation

These Summarised Consolidated Financial Statements have been prepared under the historical cost convention.

These Summarised Consolidated Financial Statements have been prepared in accordance with the accounting policies set out below which are based on IFRS in issue as adopted by the European Union and in effect at 30 June 2009. 

Comparative figures in the Income Statement (and notes thereto) have been restated to disclose the results and related operating assets of John Corby Limited (to be re-named Tribulation II Limited) as arising in respect of discontinued activities.

2.    Accounts

For the purpose of Section 435 of the UK Companies Act 2006 this announcement constitutes non-statutory accounts. No statutory accounts dealing with the year ended 30 June 2009 have been delivered to the Registrar of Companies nor have yet been reported on by the auditor. Statutory accounts for the year ended 30 June 2008 have been delivered to the Registrar of Companies and reported on by the auditor, receiving an unqualified opinion.

3.    Report and accounts and AGM

Copies of the Annual Report will be posted to shareholders shortly and copies will also be available from the registered office, Elm House, Elmer Street North, Grantham, Lincolnshire NG31 6RE.

The Annual General Meeting will be held at 10.00 on 22 October 2009 at the offices of Bird &Bird, 15 Fetter Lane, London EC4A 1JP.

4.    Dividends

The Directors propose to declare a final dividend of 8.0p per share (2008: 8.0p) on the issued ordinary shares of £1 each in the Company.

5.    Segmental reporting

The Company's primary reporting format is business segment and its secondary format is geographical segment by origin of revenue.

Business segment analysis:  The financial performance of each of the business segments is summarised below. All assets reside in the UK.

Industrial products include Westfield Medical Limited, Clinipak Limited and Nelsons Labels (Manchester) Limited. Discontinued relates to John Corby Limited (to be re-named Tribulation II Limited) and Tribulation Limited (formerly Suncrest Surrounds Limited).

   6.    Discontinued operations

On 8 May 2009 the business of John Corby Limited (to be re-named Tribulation II Limited) was sold to Adam Fire Surrounds Limited. As at 30 June 2009 this operation is reported within discontinued operations.

On 14 May 2008 the business of Tribulation Limited (formerly Suncrest Surrounds Limited) was sold to Newco 97531 Limited, a subsidiary of CJ Group Limited. The operating profit for the year relates to adjustment to provisions on sale.

In the financial statements for the previous year, disclosures in respect of discontinued operations reflected Tribulation Limited only. However, the 2008 comparatives have now been adjusted to include relevant disclosures for John Corby Limited (to be re-named Tribulation II Limited).

In accordance with IAS 7 and IFRS 5, the cash flows above in respect of discontinued operations are included in the Consolidated Cash Flow Statement under their respective headings.

7.    Earnings per share

The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.

The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares and the post-tax effect of interest on the assumed conversion of all dilutive options and other dilutive potential ordinary shares.

Reconciliations of the earnings and the weighted average number of shares used in the calculations are set out below:

For the year ended 30 June 2008 the exercise price for the majority of the share options was greater than the average middle market price of the shares. For the remainder the notional interest charge outweighs the number of free shares. As such the shares are anti-dilutive.

For the year ended 30 June 2009 all of the share options are anti-dilutive.

8.    Annual Report 

The financial information above does not constitute statutory accounts within the meaning of Section 434 Companies Act 2006 as amended. 

Copies of the Annual Report will be sent to shareholders in due course and will be available on the Company's website www.jourdanplc.co.uk

Contact:

Jourdan plc 

David Abell, Chairman     Tel: 01476 403456 

Charles Stanley Securities     Tel: 020 7149 6000

Nominated Adviser & Broker

Russell Cook / Carl Holmes

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