Cropper (J) Regulatory News (CRPR)

29 Sep 2009 07:00



James Cropper PLC

Trading Update - 29th September 2009

STATEMENT BY THE CHAIRMAN, J A CROPPER

I am pleased to report that in the first five months of the financial year James Cropper Speciality Papers Limited ("JCSP") has traded strongly. However as I indicated in my AGM statement of 29th July, sales by Technical Fibre Products limited ("TFP") in the first half of the financial year have been depressed as a consequence of re-structuring at a major customer and de-stocking by others. 

Although our Interim Results are not subject to audit clearance, it should be anticipated overall Group Profit prior to the IFRS Pension Adjustment charge and before Tax for the half year to 26th September 2009 will be materially ahead of our expectations.

The price of pulp has been on a rising trend since the end of the previous financial year. Northern Bleached Softwood Kraft ("NBSK") pulp opened the new financial year at US$580/tonne. By 15 September the price of NBSK was US$707/tonne. The latest forecasts from some analysts is that prices will continue to rise for the remainder of this year to peak between US$750/tonne and US$800/tonne. This trend will dampen the profitability of JCSP in the second half of the financial year.

In addition some uncertainty remains as to the timing of the anticipated recovery of TFP turnover in the second half-year.

Given these trends and barring any unforeseen circumstances,  it is now expected that the results for the year ended 27th March 2010 will be ahead of market expectations.

The Group's Interim Results for the half-year to 26th September 2009 will be announced on Tuesday 17thNovember 2009.