Jourdan PLC

(Jourdan or the "Company")

Chairman's Statement

Financial Results

Another year, another set of accounting principles, another year of restated comparatives with the result that it has been necessary to expand the Report and Accounts to 70 pages this year from 36 pages last year. Do our stakeholders actually benefit from the considerable expense and time devoted to meeting the ever more esoteric demands of the regulators? It seems an irresponsible waste of national resources. However, we have complied with the dictate of the law and therefore present these consolidated financial statements in accordance with accounting policies which are based on IFRS, and comparative figures have been restated accordingly.

It has been a year of substantial progress with the disposal of the loss making business of Suncrest Surrounds Limited, a major increase in profits from continuing activities and agreement for the future funding of the Pension Fund reached with the Pension Fund Trustees. Full year sales from continuing activities increased by 11% to £21.0 million (2007: £18.8 million). Operating profit from continuing activities before amortisation and impairment of intangibles was £2,758,000 (2007: £1,758,000). However, these results have also been flattered by a £653,000 profit on the sale of the Andover factory and a surplus of £410,000 on settlement of certain pension liabilities.

Profit before tax was £344,000 (2007: £1,235,000). The profit is after deducting the £1,364,000 loss on sale of the discontinued activity. Earnings per share for the year were 9.0p (2007: 33.0p).

The Company remains well capitalised, with net current assets of £358,000 at 30 June 2008 (2007 net current liabilities £719,000) and the Company agreed new bank facilities with Lloyds TSB for the year beginning 1 July 2008.  

I am pleased to announce that your Directors recommend a dividend of 8.0p per share (2007: 8.0p) which it is proposed to pay on 21 November 2008 to members on the register on 17 October 2008.

  Operating Companies

Westfield Medical/Clinipak, the leading UK manufacturer and supplier of single-use sterilisation packaging material to the medical and healthcare industry, achieved substantially improved sales and profits. Sales to all sectors rose, and exports in particular benefited from the devaluation of Sterling. 

Corby, the internationally renowned manufacturer of trouser presses, again achieved lower profits on marginally reduced sales. However, sales to export markets in currencies other than Sterling helped profitability as Sterling devalued gradually throughout the year. Corby continue to use the vacated long leasehold factory at Andover which was sold during the year for £1m with vacant possession to be given in January 2009. The Corby product continues to be manufactured at Peterlee for the time being.

Nelsons Labels, which manufactures and sells a variety of fabric-based labels for mattresses, carpets and upholstery, had another disappointing year. The acquisition of Prime Packaging in March 2007, whilst strategically correct, brought a number of unforeseen problems which resulted in poor operational results exacerbated by significant legal expenses.

Suncrest, the manufacturer of fireplace suites, mantelpieces and electric fires, continued to suffer from weakness in all markets. Sales were lower than the previous year and losses were incurred. However, in May the business and assets were sold to Newco 97531 Limited, a subsidiary of the CJ Group Limited which owns Magiglo Limited. This resulted in a large one off cost but eliminated the continual trading losses, leaving the Group in a much stronger and more profitable position for the future. The sale also secured the jobs of 130 employees.

Group Pensions

As at 30 June 2008, the pension obligation (after tax) has increased to £2,070,000 compared with £1,061,000 at 30 June 2007. By August next year further substantial progress in funding this deficit should have taken place. The Fund currently has 7 active members, reduced from 17 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.

Outlook

Following the disposal of the Suncrest business, the Group is well positioned to yield positive returns to shareholders. Whilst trading conditions remain difficult for the Group's consumer businesses, the medical packaging business is a clear leader in a strong market place with excellent prospects. In addition, the Group holds valuable property assets and has taken major steps to manage its obligations in the pensions arena.  

Trading for the year to date is highly satisfactory and, while the outturn for the current year cannot be certain given the prevailing economic climate, it is pleasing to report that profits of the reduced Group are well ahead of budget and the same period last year. Bearing in mind the increasingly onerous regulatory and financial requirements for small companies, your Board continues to explore all available alternatives to maximise value for shareholders. 

J David Abell

16 September 2008

  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.

The Group's financial statements up to and including those for the year ended 30 June 2007 were prepared in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). With effect from 1 July 2007, the Company, being listed on the AIM Market of the London Stock Exchange, is required to present its Consolidated Financial Statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. Accordingly, these 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 2008. 

Comparative figures have been restated in these financial statements to reflect changes in accounting policies as a result of the adoption of IFRS. The disclosures required by IFRS 1 concerning the transition from UK GAAP to IFRS will be disclosed in the full Financial Statements.

2.    Accounts

For the purpose of Section 240 of the UK Companies Act 1985 this announcement constitutes non-statutory accounts. No statutory accounts dealing with the year ended 30 June 2008 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 2007 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 1000 on 20 November 2008 at the offices of Bird &Bird, 90 Fetter Lane, London EC4A 1JP.

4.    Dividends

The Directors propose to declare a dividend of 8p per share (2007: 8p) on the issued ordinary shares of £1 each in the Company.

5.    Segmental reporting

The Group's primary reporting format is business segment.

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

Consumer products relate to John Corby Limited. Industrial products include Westfield Medical Limited, Clinipak Limited and Nelsons Labels (Manchester) Limited. Discontinued operation relates to Tribulation Limited (formerly Suncrest Surrounds Limited).

   6.    Discontinued operation

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.  As at 30 June 2008 this operation is reported as a discontinued operation.

In accordance with IAS 7 and IFRS 5, the cash flows above in respect of the discontinued operation are included in the consolidated cash flow statement under their respective headings.

7.         Earnings per share

For the year ended 30 June 2007 the exercise price of the share options was greater than the average middle market price of the shares. As such the shares are anti-dilutive.

For the year ended 30 June 2008 the above applies for the majority of the share options. For the remainder the notional interest charge outweighs the number of free shares.  As such the shares are anti-dilutive.

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