18th Sep 2018 15:21
LONDON (Alliance News) - James Cropper PLC on Tuesday said the higher price of producing paper will have a "material impact" on the company's results for the current financial year.
Shares in James Cropper were down 13% Tuesday afternoon at 1,275.00 pence each.
The paper products company said the pulp price continued to grow since it released its full-year results on March 31 and is expected to impact pretax profit in the current year by GBP2.0 million.
James Cropper's Technical Fibre Products division is "continuing to demonstrate strong and steady" sales and profit, in line with expectations.
The division will expand its capacity by a further 50% from the start of 2021 to meet demand, the company said.
Chairman Mark Cropper said: "The persistently higher pulp prices is impacting the returns from our paper business. Against this the success of Technical Fibre Products and 3DP reflects the
continuing efforts of the board to grow advanced technology businesses with reduced exposure to the uncertainties of commodity prices."
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