Cropper(James) PLC Trading Update (4015R)
March 08 2021 - 01:00AM
UK Regulatory
TIDMCRPR
RNS Number : 4015R
Cropper(James) PLC
08 March 2021
Cropper(James) PLC
8 March 2021
James Cropper plc ("James Cropper" or the "Company")
Trading update
James Cropper PLC, the advanced materials and paper products
group, is pleased to issue a positive trading update for the 52
weeks to 27 March 2021.
As reported in the half year results to 26 September 2020, the
first half of the year had been particularly challenging due to the
significant impact of the Covid-19 pandemic. The Group responded
quickly to the challenges taking swift action to protect staff,
reduce costs, optimise cash flow and protect liquidity. All
divisions of the Group were affected to varying degrees by the
pandemic. Since the half year, trading has improved, and the
restructuring program is now complete.
In January 2021, the TFP division acquired PV3 Technologies
Limited, a company specialising in the development and manufacture
of electrochemical materials used in the creation of hydrogen. The
acquisition is the latest step in TFP's growth plans, providing the
opportunity to further enhance TFP's market position in the
hydrogen economy. Following the suspension of all major capital
expenditure in H1 due to the pandemic, work on installing the
additional production line has now recommenced and is expected to
be complete in summer of 2021.
Colourform's rate of growth has been impacted by a pandemic
related downturn within the beauty and spirit sectors. Nonetheless,
it is expected that revenues will be up on the previous year.
The Paper division endured the biggest impact from the pandemic
as a result of global lockdowns affecting demand for luxury
packaging, education and event collateral. In the first half,
revenues were 45% down, compared to the comparable period last
year, with the reduced demand leading to periods of inefficient or
no production. Revenues in H2 have improved but expected to be 20%
down compared to the comparable period last year.
The Company acted promptly at the start of the pandemic to
conserve cash and implement immediate savings. It has good headroom
against all its banking covenants and is in a strong financial
position with liquidity of over GBP18 million from cash, overdraft
and other available facilities including a GBP4m loan from the
Coronavirus Large Business Interruption Loan Scheme. This is
expected to be sufficient for the Company to return to more normal
trading conditions, to invest and to emerge from the pandemic
stronger.
Due to the improving trading performance and continued
operational focus the Board expects the results for the year ending
27 March 2021 to be improved from previous expectations. The profit
for the year ending 27 March 2021, before exceptional costs, is
expected to be above GBP3.5m on sales of around GBP77m. This is an
improvement from previous market expectations and includes around
GBP2.9m of the Coronavirus Job Retention Scheme and Paycheck
Protection Program government schemes.
This announcement contains information that would have been
deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further enquiries, please contact:
James Cropper PLC (AIM: CRPR) Shore Capital
Phil Wild, CEO Robert Finlay, Henry Willcocks
Isabelle Maddock, CFO John More
Tel: +44 (0) 1539 722002 Tel: + 44 (0) 207 408 4050
www.jamescropper.com
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END
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