Cropper(James) plc Half-Year Report

James Cropper plc (‘CRPR’, the ‘Company’ or the ‘Group’), the leading advanced materials and paper products group is pleased to announce its

Half Year Results to 24 September 2022

“Decisive actions taken combined with the ongoing investments…has strengthened our long term growth prospects”

      Half-year to 24 September 2022Half-year to   25 September   2021Full-year to  26 March   2022
£m£m£m
Revenue61.650.0104.9
Adjusted operating profit * 0.52.54.6
Operating (loss) / profit(0.2)2.33.7
Adjusted profit before tax *(0.0)2.34.0
Impact of IAS 19(0.3)(0.4)(0.9)
Impact of exceptional items(0.5)0.0(0.3)
(Loss) / profit before tax(0.8)1.92.8
(Loss) / earnings per share – basic and diluted  (9.2)p16.2p14.2p
Dividend per share declared2.0p2.5p10.0p
   
Net borrowings(12.2)(9.6)(12.6)
Equity shareholders’ funds34.332.334.8
Gearing % – before IAS 19 deficit28%21%28%
Gearing % – after IAS 19 deficit35%30%36%
Capital expenditure2.42.96.8

* excludes the impact of IAS 19 and exceptional items (per note 8) 

Headlines

· Group revenues for the half year were up on the prior year (H1 2021) by 23%, driven by new customer wins and existing client growth

· Demand remains strong, with revenue growth across each of the three divisions

· Adjusted PBT (excluding IAS 19 impact and exceptional items) at £nil due to energy inflation and raw material price increases

· Exceptional cost provision of £0.5m for contingent consideration as TFP Hydrogen projections increase

· Cost of living payments totalling £0.7m paid to support employee health and wellbeing

· Interim Dividend declared at 2.0p per share (H1 2021: 2.5p)

· Expectations for FY23 have been reduced with an adjusted PBT of £2.0m against previous market expectations of £5.4m, as announced on 31 October 2022

· Capital investments in energy saving improvements to paper machines delivering 5-7% annualised reduction in site energy consumption

· Decarbonisation project investment moving to planning application phase

· Steve Adams appointed as Chief Executive Officer on 10 August 2022

  Half-year to 24 September 2022Half-year to   25 September 2021Full-year to 26 March   2022
Summary of results£ ‘000£’000£’000
Revenue61,58350,039104,922
Adjusted operating profit*4532,4744,585
Operating (loss) / profit(213)2,3103,684
Adjusted (loss) / profit before tax *(13)2,2634,045
Impact of IAS19(304)(350)(914)
Exceptional items (note 8)  (540)  –(354)
(Loss) / profit  before tax(857)1,9132,777

* excludes the impact of IAS 19 and exceptional items (per note 8) 

Half-year to 24 September 2022Half-year to  25 September 2021Full-year to 26 March  2022
 £’000£’000£’000
Revenue
Paper division42,04634,14370,350
Colourform division2,1051,9423,363
Technical Fibre Products division17,43213,95431,209
 61,58350,039104,922
   
Adjusted operating  profit *4532,4744,585
Adjusted net interest(466)(211)(540)
Adjusted (loss) / profit before tax *(13)2,2634,045
   
IAS19 pension adjustments  
Net current service charge against operating profits(126)(164)(547)
Finance costs charged against interest(178)(186)(367)
 (304)(350)(914)
Exceptional items (note 8)(540)(354)
(Loss) / profit before tax(857)1,9132,777

* excludes the impact of IAS 19 and exceptional items (per note 8)

Balance sheet summaryHalf-year to 24 September 2022Half-year to   25 September 2021Full-year to 26 March  2022
£’000£’000£’000
Non-pension assets – excluding cash85,11374,21381,846
Non-pension liabilities – excluding borrowings(28,986)(19,482)(24,613)
56,12754,73157,233
Net IAS19 pension deficit (after deferred tax)(9,677)(12,835)(9,847)
46,45041,89647,386
Net borrowings(12,156)(9,637)(12,572)
 Equity shareholders’ funds34,29432,25934,814
Gearing % – before IAS19 deficit28%21%28%
Gearing % – after IAS19 deficit35%30%36%
Capital expenditure2,3602,8776,761

Mark Cropper, Chairman, commented: “While short term profitability has been impacted, the decisive actions taken combined with the ongoing investments across the Group has strengthened our long term growth prospects and we fully expect to return to profitability in the next six months.”

“This Company is built on a strong heritage of innovation and a relentless focus on quality, which places us in a very strong position as we evolve and create a sustainable future.”

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

Enquiries:

Steve Adams, Chief Executive OfficerRobert Finlay, Henry Willcocks, John More
Isabelle Maddock, Chief Financial OfficerJames Cropper PLC (AIM :CRPR.L) Shore Capital
Telephone: +44 (0) 1539 722002Telephone: +44 (0) 20 7601 6100
www.jamescropper.com
 Media Enquires:Anna Geffert, MDHERA Communication Strategiesanna.geffert@heracomms.com / +44 (0) 7773 046 337 
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