Cropper (J) Regulatory News (CRPR)

24 January 2018

James Cropper PLC ("James Cropper" or the "Group")

Trading update

James Cropper, the advanced materials and paper products group, provides the following trading update.

At the half year results, announced on 14 November 2017, it was stated that the full year's results for the Group were expected to be in line with the Board's expectations, notwithstanding a £2 million adverse headwind due to a significant increase in pulp price impacting the Paper division. The initial impact of this headwind was offset by interim cost savings and the trading strength of the Technical Fibre Products Division ("TFP"). Since the half year results announcement, however, the price of pulp has continued to rise beyond levels forecast by the Group's external specialists. The full year impact of the higher pulp price on the Group's pre-tax profits is now expected to be approximately £3.5 million, with a net impact, allowing for the strength of TFP's trading and the interim cost savings, of £1.5 million. The Board, accordingly, expects pre-tax profits for the year to 31 March 2018 will be in the region of £5.7 million.

James Cropper Paper's ("Paper") underlying performance year-on-year, excluding the effect of rising pulp prices, remains healthy with operating margins increasing in line with Board expectations. Positive media reports on Cupcycling™ have generated additional interest in the Company's capability and brand. Moving forward, the Company expects the pulp price to reduce to more normal levels over the next 12 months. Notwithstanding this, Paper is accelerating investigations into alternative strategies that should minimise the effects of such commodity price increases in future years.

James Cropper 3DP ("3DP") has seen further commercial orders in the latter half of this year. 3DP is attracting interest in Colourform™ as a sustainable alternative to plastic, as global awareness and the search for alternatives continues to increase.

TFP is having a successful year, with fuel cell and aerospace technologies gaining traction, and is achieving strong year-on-year growth in both sales and profit in line with the strategic plans for the division.

The Board remains very confident in the strategy and subsequent growth for all divisions across the Group.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

LEI: 213800XM78VTDYGBRM93