(Alliance News) - James Cropper PLC on Tuesday reported a dramatic increase in revenue and profit in the first half, allowing it to reinstate its interim dividend.
Shares were up 13% and 1,378.00 pence on Tuesday afternoon in London.
The paper products maker based in Cumbria, reported a 47% increase in revenue in the six months to September 25 to GBP49.8 million from GBP34.0 million a year before.
James Cropper states that revenues returned to pre-pandemic levels. It expects revenues to grow further in the second half of its financial year and for Paper sales to be ahead of pre-pandemic levels by the start of 2022.
Revenue in its Paper unit increased 63% to GBP34.1 million from GBP20.9 million. Its Colourform unit saw revenue increase by 21% to GBP1.7 million from GBP1.4 million and revenue in the Technical Fibre Products unit increased 20% to GBP14.0 from GBP11.7 million.
Pretax profit swung to GBP1.9 million from a GBP16,000 loss for the half-year period a year before.
James Cropper reinstated its interim dividend, declaring a 2.5 pence payout for shareholders. The firm noted it was able to reinstate dividends as its trading conditions have "improved" and the outlook "continues to be favourable".
Chief Executive Mark Cropper said the company's Technical Fibre and Colourform units are performing ahead of pre-pandemic levels.
He continued: "Paper sales are projected to be ahead of pre-pandemic levels by the start of 2022, with a strong demand for recycled fibre content and responsible sourcing. The Colourforma business attracts brands seeking plastic-free sustainable packaging across the wines, spirits, beauty, and fragrance sectors."
"We are committed to being operationally carbon neutral by 2030 and to significantly reducing carbon through our entire supply chain by 2035. Building on strong foundations, the newly defined ESG committee is developing targets against all our ESG strategic intents. We invest significantly in people, innovation and capability will ensure that over the long term, the group has the potential to sustain growth across all its businesses. In the nearer term, the full-year results are anticipated to show strong growth from the pandemic," Cropper added.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Cropper (J) (CRPR)