Cropper(James) PLC Trading update (7206C)
24 January 2018 - 6:00PM
UK Regulatory
TIDMCRPR
RNS Number : 7206C
Cropper(James) PLC
24 January 2018
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 GBP2
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 GBP3.5
million, with a net impact, allowing for the strength of TFP's
trading and the interim cost savings, of GBP1.5 million. The Board,
accordingly, expects pre-tax profits for the year to 31 March 2018
will be in the region of GBP5.7 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(TM) 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(TM) 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.
Enquiries:
Isabelle Maddock, Group Finance Director Robert Finlay, Richard Johnson, Henry Willcocks
James Cropper PLC Stockdale Securities Limited
Tel: 01593 722002 +44 (0) 207 601 6100
www.cropper.com www.stockdalesecurities.com
LEI: 213800XM78VTDYGBRM93
This information is provided by RNS
The company news service from the London Stock Exchange
END
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