12th Nov 2013 13:05
LONDON (Alliance News) - Paper and materials group James Cropper PLC Tuesday posted a fall in pretax profit for the full year, hit by green levies and input costs.
The paper manufacturer said pretax profit declined to GBP216,000 for the period ended September 26, from GBP1.0 million a year earlier due to higher input costs that the firm was unable to pass through to customers and an increase in green levies.
The higher input costs were partially mitigated by the group's reclaimed fibre plant. "This will make a greater contribution going forward as we expect to be able to increase the proportion of recycled feedstock into end product," the company said.
Revenue increased to GBP42.3 million, from GBP39.0 million in 2012, as speciality sales, which includes coloured paper, increased 10% on last year. Export sales of speciality papers increased 17% whilst UK sales were up 5%. Overall volume was up 12%, with export volumes up 16% for the division.
Technical fibre product sales were down 5% on last year as a consequence of the ordering pattern of a number of major customers in the defence sector, as the company had expected.
Aerospace sales were up 52% and, significantly, the division is in talks to supply material for a new airliner programme, which on commercialisation could lead to long term revenue flow, the company said without providing details.
The division develops nonwoven materials for a number of industries including aerospace, medical and construction.
The stock was trading at 350.00 pence, down 42.50 pence Tuesday morning or 10.8%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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