23rd Jun 2015 09:43
LONDON (Alliance News) - James Cropper PLC Tuesday reported growth in profit in its recently-ended financial year despite overall revenue falling, as its Technical Fibre Products division performed strongly and as it invested in the business to improve profitability and sales performance.
The paper products group reported a pretax profit in the year ended March 28 of GBP2.6 million, double the GBP1.3 million made the year before, even though revenue fell 1.7% to GBP83.1 million from GBP84.5 million.
Sales in the UK were up 3.4%, but this was offset by a 6.9% decline in export sales, 4.8% fall in revenue in the USA and an 11.4% decrease in continental Europe sales, as a result of the weak euro and lower volumes.
By division, revenue for James Cropper Paper fell by 4.1%, hit by the planned exit from a non-strategic line of display board business, de-stocking by a key customer, and the strength of the pound against the euro. However, James Cropper said that it has invested in its regional sales teams in order to grow exports, which is "starting to bear fruit" as sales in the Greater China area were up 32%.
Revenue in the Technical Fibre Products division increased 11.5%, driven by 66% growth in China and 31% growth in the UK, as it reduced costs and increased capacity, helping the company to boost profitability despite sales declines in other areas of the business.
James Cropper will pay a dividend of 8.5 pence for the year, up from the 7.9p paid the prior year.
"Technical Fibre Products operates in high growth markets which offer many exciting opportunities including in green technologies, aerospace, and defence. The Technology and Innovation division, which was set up in January 2014, has identified a diversification opportunity. A new business for James Cropper, manufacturing moulded products, which will build on our current strengths and knowledge, has been established. Investment in developing this business is underway," Chairman Mark Cropper said in a statement.
"For many years I have communicated my belief that this company has great potential. Now I see that this can and will be delivered in the coming years," he added.
Shares in James Cropper were trading up 4.4% at 460.00 pence Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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