REG - Cropper(James) PLC - Q1 Trading Update and AGM Statement

James CropperAnnouncement

27/07/2022 11:00

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RNS Number : 8295T  Cropper(James) PLC  27 July 2022

 

Q1 Trading Update and AGM Statement

 

'Excellent start to the year; the Group's prospects remain very attractive'

 

James Cropper plc ('CRPR', the 'Company' or the 'Group'), the leading advanced
materials and paper products group is pleased to announce its first quarter
trading update and AGM Statement.

 

Financial performance

The Group has experienced a strong start to its financial year, with sales in
Q1 up 36% on the prior year (Q1 2021). While demand across all three divisions
is ahead of the prior-year quarter, TFP has started the year with very strong
sales and has seen particularly high demand across TFP Hydrogen. The Paper
division has secured new luxury packaging contracts and Colourform has also
continued to win new contracts across the premium wine, spirits, and beauty
markets.

 

Profits for the group are currently tracking ahead of plan and significantly
ahead of the prior-year quarter, with management expectations for FY23
presently unchanged. The Paper division has started the year profitably,
however, it is the TFP division that is delivering the majority of the benefit
to the Group.

 

Investment to support growth

The Paper division is extending its embossing and varnishing capacity in Q3,
of the current financial year, providing additional capability to meet demand
in the luxury packaging market. Coating capacity for TFP Hydrogen will be
extended with an additional line operational in the USA by the end of Q2. The
Group remains committed to its ESG Committee goals. In Q1 the Group completed
its Decarbonisation Study, which indicates that the technical solutions
identified in the prior year's feasibility study, can be scaled up. The Group
is now moving into the engineering analysis stage and expects this to be
completed as planned this financial year.

 

Outlook

Mark Cropper, Chairman of James Cropper, said: "We are pleased to report an
excellent start to the financial year, with every division within the Group
outperforming the same period last year.

 

"TFP has made a very strong start to the year which has positively impacted
profits. With the new hydrogen coating line on schedule to be operational by
the end of Q2, the division is on track to deliver another record year.

 

"The Paper division, which was impacted by the unprecedented high energy costs
in Q4 last year, traded profitably in Q1, demonstrating the pricing changes
implemented are working together with the strategy to improve the division's
portfolio. While we are always mindful of the energy and raw material
headwinds, the strong start to the year and new embossing and varnishing
capacity, which is on track to be completed and commissioned in H2, will
support our ability to meet the growing demand and continue with this pleasing
progress.

 

"The Colourform division continues to maintain a strong pipeline of sales and
the division's eye-catching and eco-friendly packaging designs have received
further international accolades, the latest of which is the European Dieline
design award.

 

"With the market returning to more normalised growth conditions, the Group's
prospects remain very attractive

and we look forward to making further progress in the year ahead."

 

 

 

Annual General Meeting

James Cropper's Annual General Meeting will also be held today, starting at
11.00 am GMT and taking place at the Bryce Institute, Burneside, Cumbria.

 

James Cropper Group - Purpose: Pioneering Materials to Safeguard our Future
and Values: Forward Thinking, Responsible and Caring.

 

 

Enquiries

 Isabelle Maddock, Chief Financial Officer           Robert Finlay, Henry Willcocks, John More
 James Cropper PLC (AIM :CRPR.L)                     Shore Capital
 Telephone: +44 (0) 1539 722002                      Telephone: +44 (0) 20 7601 6100
 www.jamescropper.com (http://www.jamescropper.com)

 Media Enquires:

 Anna Geffert, MD

 HERA Communication Strategies

 anna.geffert@heracomms.com (mailto:anna.geffert@heracomms.com) / +44 (0) 7773
 046 337

 

 

 

 

 

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