Last checked at 27 Jul 2022 11:00
Q1 Trading Update and AGM Statement
'Excellent start to the year; the Group's prospects remain very attractive'
James Cropper plc ('CRPR', the 'Company' or the 'Group'), the leading advanced materials and paper products group is pleased to announce its first quarter trading update and AGM Statement.
Financial performance
The Group has experienced a strong start to its financial year, with sales in Q1 up 36% on the prior year (Q1 2021). While demand across all three divisions is ahead of the prior-year quarter, TFP has started the year with very strong sales and has seen particularly high demand across TFP Hydrogen. The Paper division has secured new luxury packaging contracts and Colourform has also continued to win new contracts across the premium wine, spirits, and beauty markets.
Profits for the group are currently tracking ahead of plan and significantly ahead of the prior-year quarter, with management expectations for FY23 presently unchanged. The Paper division has started the year profitably, however, it is the TFP division that is delivering the majority of the benefit to the Group.
Investment to support growth
The Paper division is extending its embossing and varnishing capacity in Q3, of the current financial year, providing additional capability to meet demand in the luxury packaging market. Coating capacity for TFP Hydrogen will be extended with an additional line operational in the USA by the end of Q2. The Group remains committed to its ESG Committee goals. In Q1 the Group completed its Decarbonisation Study, which indicates that the technical solutions identified in the prior year's feasibility study, can be scaled up. The Group is now moving into the engineering analysis stage and expects this to be completed as planned this financial year.
Outlook
Mark Cropper, Chairman of James Cropper, said: "We are pleased to report an excellent start to the financial year, with every division within the Group outperforming the same period last year.
"TFP has made a very strong start to the year which has positively impacted profits. With the new hydrogen coating line on schedule to be operational by the end of Q2, the division is on track to deliver another record year.
"The Paper division, which was impacted by the unprecedented high energy costs in Q4 last year, traded profitably in Q1, demonstrating the pricing changes implemented are working together with the strategy to improve the division's portfolio. While we are always mindful of the energy and raw material headwinds, the strong start to the year and new embossing and varnishing capacity, which is on track to be completed and commissioned in H2, will support our ability to meet the growing demand and continue with this pleasing progress.
"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, the latest of which is the European Dieline design award.
"With the market returning to more normalised growth conditions, the Group's prospects remain very attractive
and we look forward to making further progress in the year ahead."
Annual General Meeting
James Cropper's Annual General Meeting will also be held today, starting at 11.00 am GMT and taking place at the Bryce Institute, Burneside, Cumbria.
James Cropper Group - Purpose: Pioneering Materials to Safeguard our Future and Values: Forward Thinking, Responsible and Caring.
Enquiries
Isabelle Maddock, Chief Financial Officer | Robert Finlay, Henry Willcocks, John More |
James Cropper PLC (AIM :CRPR.L) | Shore Capital |
Telephone: +44 (0) 1539 722002 | Telephone: +44 (0) 20 7601 6100 |
www.jamescropper.com | |
Media Enquires: Anna Geffert, MD HERA Communication Strategies anna.geffert@heracomms.com / +44 (0) 7773 046 337
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