Cropper(James) PLC Half Year Trading Update (5724E)
October 31 2022 - 2:00AM
UK Regulatory
TIDMCRPR
RNS Number : 5724E
Cropper(James) PLC
31 October 2022
Half Year Trading Update
'Unprecedented inflationary headwinds impact the half year; the
Group continues to prepare for growth'
In advance of its interim results announcement due on 15
November 2022, James Cropper plc ('CRPR', the 'Company' or the
'Group'), the leading advanced materials and paper products group,
today issues an update on trading for the half year ended 24
September 2022.
Financial performance
As announced at the Annual General Meeting on 27 July 2022, the
Group experienced a strong start to its financial year, with
revenues in Q1 2022 up 36% on the prior year (Q1 2021), with demand
across all three divisions ahead of the prior-year quarter.
Revenues for the half year were up on the prior year (H1 2021) by
26%, with demand remaining strong across all divisions.
As a direct result of continued wholesale gas price rises, the
Group's energy costs have increased by 148% versus prior year. The
impact of inflationary pressures had been mitigated in the first
part of the year by the application of energy surcharges but energy
prices again spiked from late July and again in August. At the same
time raw materials (which represent a larger proportion of overall
costs) have been subject to unprecedented inflationary headwinds,
rising 20% over the same period. The Group has responded to the
GBPmulti-million impact of these sudden rises with a combination of
energy surcharges and price increases but the time to implement
these has nevertheless resulted in margins temporarily being
squeezed, especially so in Paper.
The net result has been that the Group has achieved a break even
position for the first half of the year.
The second half of the year shows a recovery through aggressive
pricing actions and surcharges, supported by the recently announced
Government support on energy prices. Each division is projecting
volume growth over the second half. Order books are full and the
Company is focused on a range of enabling actions to build a solid
foundation for continued future growth.
As a result of the current unprecedented macro-economic
environment, management expectations for FY23 have been reduced
with a year-end adjusted PBT of GBP2.0m against previous market
expectations of adjusted PBT of GBP5.4m.
Investment to support growth
The embossing and varnishing capacity in the Paper division,
providing additional capability to meet demand in the luxury
packaging market, is now installed and commissioned. Additional
coating capacity for TFP Hydrogen in the USA is now operational.
The Group remains committed to decarbonisation and our plans for
this have moved into the detailed design stage , with site
arrangements under review to facilitate the construction of a new
energy centre. We expect the design work to be completed as
scheduled this financial year.
Outlook
Mark Cropper, Chairman of James Cropper, said: "The uncertainty
and unprecedented inflationary pressures from rising raw material
and energy costs have forced us to revise our profit expectations,
despite each division showing strong demand and growth in sales.
The Paper division has been hit the hardest due to being an
intensive energy business, but is successfully mitigating the
impact with price increases and increased energy surcharges."
"TFP has had higher revenues for the first half albeit with
growth not materialising as quickly as expected. The new hydrogen
coating line in the USA is now commissioned and ready to support
growth in the North American hydrogen market."
"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."
"Overall, despite the short term setback in profitability,
growth prospects for the Group as a whole remain significant in the
coming years."
James Cropper Group - Purpose : Pioneering Materials to
Safeguard our Future and Values : Forward Thinking, Responsible and
Caring.
Enquiries
Isabelle Maddock, Chief Robert Finlay, Henry Willcocks,
Financial Officer John More
James Cropper PLC (AIM Shore Capital
:CRPR.L)
Telephone: +44 (0) 1539 Telephone: +44 (0) 20 7601 6100
722002
www.jamescropper.com
Media Enquires:
Anna Geffert, MD
HERA Communication Strategies
anna.geffert@heracomms.com / +44 (0) 7773 046 337
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTBKKBQABDDNKN
(END) Dow Jones Newswires
October 31, 2022 03:00 ET (07:00 GMT)
Cropper (james) (LSE:CRPR)
Historical Stock Chart
From Apr 2024 to May 2024
Cropper (james) (LSE:CRPR)
Historical Stock Chart
From May 2023 to May 2024