11th Nov 2014 11:04
LONDON (Alliance News) - James Cropper PLC Tuesday posted a rise in pretax profit for the first half of its financial year, as lower costs more than offset a fall in revenue caused by weaker paper product sales.
Pretax profit in the half year to September 27 was GBP800,000, from GBP200,000 a year earlier, despite revenue falling to GBP40.1 million, from GBP42.3 million.
The company said the rise in profitability in the half year was primarily down to lower input costs, reduced production costs and a better product mix.
The company maintained its interim dividend at 2.2 pence per share, flat on the year before.
Sales rose 10% in its technical fibre products business on the back of an improved performance in defence, energy and consumer electronics markets, but sales were down 7% in its paper products arm, partly due to the company exiting low-margin businesses and some dips in key account demand cycles.
"It is anticipated that the group will continue to operate in line with the board's expectations and our ambitions beyond the immediate future remain significant," said James Cropper Chairman Mark Cropper.
Shares in the company were down 1.2% to 410 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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