REG - Cropper(James) PLC - Full Year Trading Update

James CropperAnnouncement

30/04/2024 07:00

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RNS Number : 4766M  Cropper(James) PLC  30 April 2024

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BE IN THE PUBLIC DOMAIN.

 

30 April 2024

 

James Cropper plc

('James Cropper', the 'Company' or the 'Group')

Full Year Trading Update

FY2024 profitability expected to be slightly ahead of expectations

 

James Cropper PLC (AIM: CRPR), the Advanced Materials and Paper &
Packaging group, is pleased to issue an unaudited trading update for the 52
week period to 30 March 2024 ("FY2024").

 

For FY2024, the Board expects, subject to audit, to report revenue in line
with, and profits slightly ahead of its previous expectations. The outlook for
FY2025 is encouraging, with a return to growth expected across both the
Advanced Materials and Paper & Packaging businesses for the full year.

 

Advanced Materials

The Advanced Materials business saw a year-on-year contraction in revenue,
primarily reflecting the slowdown in fuel cell market demand. This was
partially offset by growth in the hydrogen electrolyser business where,
despite the delays to expected projects reported in January 2024, the business
continued to acquire new customers through trials and specification
development with electrolyser OEMs.  Targeted capital investment has
continued in the business to support customers, enhance efficiency, and ensure
the Advanced Materials business remains well positioned to meet the expected
future growth in this area.

The core (non-hydrogen) Advanced Materials business was underpinned by growth
in the aerospace and automotive sectors. The focus remains on delivering
growth in these sectors, as well as carbon capture, batteries and other
renewables, and defence.

The mid-term outlook for both the hydrogen and the core business remains
strong.

In addition, the Board is pleased to announce the appointment of a new
managing director for the Advanced Materials business, who will join the Group
at the end of July 2024 and be based at the Group's main site in Burneside.
The new managing director comes with over 30 years of experience in the
Advanced Materials industry. An announcement containing further details will
be made following notice period restrictions.

 

Paper & Packaging

Within the Paper & Packaging business, supply chain destocking compounded
by the impact of high inflation on consumer confidence continued to be felt
through the second half of the year.

Despite volume pressures, customer retention remained high as the business
benefits from strong relationships at the channel, converter and end customer
levels. Lower input costs (energy and carbon tax), mix improvements and
productivity initiatives, as well as maintenance of strong average selling
prices, are helping to protect margins.

Planned restructuring activity was completed during the third quarter of
FY2024 on schedule, and work is ongoing to optimise the new operating model.

The future project pipeline is encouraging and forward indicators, such as
order intake, point to early signs of market recovery throughout FY2025.

 

Notice of results

The Group's audited results for FY2024 are expected to be announced in July
2024.

 

Finance and net debt

The Group has managed its working capital and capital expenditure robustly,
both of which are lower than the previous year, resulting in a better net debt
position at the period end than previously expected.

The Group has continued to operate in compliance with its banking covenants
throughout FY2024. Following the challenging trading conditions reported in
the second half of FY2024, it is currently seeking temporary covenant
adjustments on its UK banking facility to ensure sufficient headroom is
retained. Discussions with banks have commenced and a further update will be
provided in due course.

 

Steve Adams, CEO of James Cropper, said:

"I am pleased with the response from our whole organisation to the challenging
trading environment over the second half of the year.

"Our priority has been a relentless focus on business development, leveraging
our strong product and technology offer. We have addressed the drop in volumes
by protecting our pricing, delivering continuous improvement in all our
operations, driving down input costs and maintaining tight cost control.

"The Advanced Materials business has continued to strengthen its technological
leadership whilst maintaining strong customer relationships, as well as
building world class partnerships and identifying future accelerated growth
opportunities.

"The Paper & Packaging business continues its focus on driving value
growth through operational effectiveness and building on its strong brand and
capability leadership in luxury packaging.

"As a Group, we have remained steadfast in focusing on our strategy for
accelerated growth and the Board is confident that the growth prospects of the
Group, as a whole, remain significant in the coming years."

 

 

 Enquiries:

 James Cropper plc

 Andrew Goody, CFO

 Stephen Adams, CEO

 Tel: +44 (0)1539 818 202

 Shore Capital - (Nominated Adviser and Broker)

 Daniel Bush, David Coaten, Henry Willcocks, Lucy Bowden

 Tel: +44 (0)207 408 4090

 Buchanan Communications - Financial PR

 Chris Lane, Charles Ryland, Jamie Hooper, Verity Parker

 jamescropper@buchanancomms.co.uk

 Tel: +44 (0) 207 466 5000

 

 

Notes for editors:

 

James Cropper is a market leader in Advanced Materials and Paper Products,
centred around four market audiences: Future Energy, Technical
Fibres, Luxury Packaging and Creative Papers.

 

A purpose-led business, built upon six generations of the Cropper family,
James Cropper has a 500+ international workforce and an operational reach in
over 50 countries.

 

Established in 1845, the Group manufactures creative papers, luxury packaging
and advanced materials incorporating pioneering non-wovens and electrochemical
coatings.

 

James Cropper is a specialist provider of niche solutions tailored to a unique
customer specification, ranging from substrates and components in hydrogen
electrolysis and fuel cells to bespoke colours and textures in paper and
moulded fibre packaging designed to replace single use plastics.

 

The Group operates across multiple markets from luxury retail to renewable
energy. It is renowned globally for service, capability, pioneering and multi
award-winning commitment to the highest standards of sustainability.

 

James Cropper's goal is to be operationally net zero by 2030 and to reduce
carbon through its entire supply chain to net zero by 2050.

 

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