AGM Statement and Trading Update

31 July 2019

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

AGM Statement and Trading Update

"I am pleased to report that the Group has enjoyed a promising start to the current financial year and has traded profitably in the first quarter in line with management expectations.

Group sales for the first quarter are up 4% on the prior year quarter. The Paper division growth is being realised from recent price increases and our focus on higher value niche markets, in particular luxury packaging. Pulp prices have softened in the quarter, though remain at historically high levels. TFP is benefiting from a continued focus on the defence, industrial and fuel cell markets.

The commercialisation of the Colourform division remains on track, with a step-change in sales and an increasing order book, and our expectation is that this will continue to build over the year.

As mentioned in our announcement on 25 July, David Wilks, who has been a Non-Executive Director for 15 years, is due to retire after the AGM. The Board and I wish to thank David for his counsel, advice and contribution to the Company. In addition we are looking forward to welcoming Lyndsey Scott as a Non-Executive Director. Lyndsey will be joining the Board on 1 August, and her broad range of skills and organisational experience will be of significant benefit to the Board.

Overall, the outlook for the Group remains in line with management expectations. TFP will continue to utilise available manufacturing capacity to accelerate sales and will be increasing capacity by an additional 50% by end 2020 to meet future demand. Paper will continue to focus on high value segments and provide increased independence from pulp price with the expanded use of recycled content such as CupCyclingTM. Colourform will be focused on continued growth of the sales pipeline. I am pleased with the progress we are making and confident the Group will perform in line with the Board's expectations for the year."

Mark Cropper

Chairman

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