(Alliance News) - James Cropper PLC on Wednesday said it expects to report adjusted annual earnings in line with its expectations, as it highlighted work was "progressing well".
Shares in the Cumbria, England-based advanced materials, paper and packaging group jumped 20% to 162.50 pence each on Wednesday afternoon in London.
James Cropper said it expects adjusted earnings before interest, tax, depreciation and amortisation for the financial year ended March 29 to be consistent with its expectations and with financial 2024 results, when adjusted Ebitda was GBP6.6 million, down 27% from GBP9.0 million in financial 2023.
Revenue is set to be "marginally lower" than in financial 2024, when it was GBP103.0 million, down 21% from GBP129.6 million in financial 2023.
Revenue in Advanced Materials will be slightly higher than in financial 2024, although this will be offset by a less favourable product mix in Paper & Packaging.
Adjusted pretax profit, however, is set to climb from GBP758,000 in financial 2024, which had been down from GBP3.2 million in financial 2023. The growth in financial 2025 reflected a lower depreciation charge than in financial 2024, James Cropper highlighted.
For financial 2026, James Cropper anticipates to report single-digit revenue growth for Advanced Materials, as it plans investments in operations during the period, with growth focused beyond financial 2026.
Paper & Packaging revenue in financial 2026 is expected to be similar to financial 2025.
James Cropper said full benefits of improvements in Paper & Packaging are anticipated to come through in financial 2027.
The company expects to report a more detailed strategy update in June before it releases full-year results in July.
Chief Executive Officer David Stirling said: "Since I joined the group in January, we have commenced a rigorous assessment of the business, with plans to create further opportunities for mid-term growth in Advanced Materials, a structured and focused programme of work to realise improvements in our Paper & Packaging business, and a focus on cash management. That work is progressing well, and I expect to provide a more detailed update in June."
By Tom Budszus, Alliance News slot editor
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Cropper (J) (CRPR)
