Cropper (J) Regulatory News (CRPR)

1 Aug 2007 10:48

Cropper(James) PLC01 August 2007 Issued by Citigate Dewe Rogerson Ltd, BirminghamDate: Wednesday, 1 August 2007 IMMEDIATE RELEASE James Cropper PLC Annual General Meeting and Trading Update At today's Annual General Meeting (1 August 2007), the following statement wasissued to shareholders: STATEMENT BY THE CHAIRMAN, J A CROPPER "I am pleased to report that Technical Fibre Products ("TFP") and James CropperSpeciality Papers ("Speciality Papers") traded strongly in the opening quarterwith turnover significantly higher than in the same period last year. OverallGroup turnover in the first quarter was £17.9 million, 11% up on the previousyear". "Sales of TFP composite materials containing metal-coated carbon fibres havegrown strongly in recent years, particularly into the US electronic andaerospace industries. These fibres are supplied by Diamond Fiber Composites Inc.and Electro Fiber Technologies LLC ("EFT"), the latter being the joint-venturecompany in which TFP had a 50% share. At the end of June 2007 TFP purchased thebusiness assets of Diamond Fiber Composites Inc. and acquired complete controlof EFT. The combined purchase consideration was approximately £0.5 million.These acquisitions provide TFP with control of quality, product development andsecurity of supply. TFP will thus be able to service the technically demandingapplications that contain these fibres with greater confidence at the increasedlevels of turnover expected in future years. However, it is anticipated thatEFT's losses will continue at a level similar to last year in the medium term.TFP's operating profit for the full year is likely to be in-line with theprevious year". "The impact of reduced energy costs on Speciality Papers compared with recentyears is most welcome. However a further significant fall in the price of gasover the coming year is not anticipated, whilst pulp is expected to continue onan upward trend over the financial year as a consequence of tight supply.Although the • was relatively stable against £Sterling during the quarter, theUS$ fell significantly against both currencies. This affected the relativeprices of Northern Bleached Softwood Kraft ("NBSK") pulp, the market benchmarkpriced in US$s and hardwoods priced in •. NBSK opened the financial year atUS$760 per tonne and has increased progressively in price to US$800 per tonne bythe end of July 2007. Sales performance by Speciality Papers in the firstquarter was very satisfying. This built on the growth pattern developed duringthe previous financial year, with a marked improvement in export sales". "James Cropper Converting is trading in-line with last year". "Although The Paper Mill Shop continued to be loss-making in the first quarter,sales are showing encouraging signs of recovery and the Board remains confidentthat profitability will be restored over the next three years". "There has been no significant change in borrowings over the opening quarter". "In conclusion, I am pleased to say that the Board's confidence in the Group'sability to grow and prosper has strengthened over the past year as a result ofits improved performance." This Interim Management Statement has been issued in accordance with DTR 4.3 ofthe Disclosure and Transparency Rules of the UK Listing Authority in respect ofthe period from 1 April 2007 and has been approved by the Board of Directors ofJames Cropper PLC. Enquiries:Alun Lewis, Chief ExecutiveJohn Denman, Group Finance Director Fiona Tooley, Director Ifor Williams, Director Keith Gabriel, Senior Account Manager James Cropper PLC Citigate Dewe Rogerson Brewin Dolphin Securities LimitedTelephone: 01539 722002 Telephone: 0121 455 8370 Telephone: 0121 236 7000www.cropper.com Mobile: 07785 703523 (FT) Mobile: 07721 002520 This information is provided by RNS The company news service from the London Stock Exchange