17th Nov 2025 09:48
(Alliance News) - James Cropper PLC on Monday reported revenue growth in line with expectations, and continues to anticipate "significant" adjusted earnings growth.
The Kendal, England-based materials, paper and packaging group reported a GBP2.7 million statutory pretax loss for the six months ended September 27, against a GBP606,000 loss for the previous year.
Adjusted pretax profit was GBP2.1 million, flipped from a GBP215,000 loss. Adjusted figures exclude the impact of IAS 19 in respect of the Group's defined benefit pension scheme and exceptional items, James Cropper said.
Basic & diluted earnings per share totalled 21.4 pence, against LPS of 5.1p the year before.
Revenue increased 3.7% on-year to GBP51.8 million from GBP49.9 million. Advanced Materials revenue climbed 13% to GBP19.0 million from GBP16.7 million, "with growth from both established and nascent markets".
"Established markets, such as aerospace, defence, construction and medical, which account for around 70% of Advanced Materials business unit revenue, pleasingly delivered high single-digit percentage growth...Revenue from nascent markets and trials grew by 21%; a strong performance against a relatively weaker comparative in the first six months of the prior year," the company said.
Paper & Packaging revenue declined 1.2% to GBP32.8 million from GBP33.2 million. James Cropper said that "growth in commodity and core segments [offset] the previously reported loss of a significant merchant customer."
"The business has made substantial progress on its operational improvement programme, reducing direct and overhead costs and streamlining operations," the company said. "As part of this restructuring we reduced indirect headcount, with further reductions linked to a more efficient and effective revised shift pattern currently ongoing."
Adjusted earnings before interest, tax, depreciation and amortisation surged 52% to GBP4.1 million from GBP2.7 million.
Net debt decreased to GBP10.5 million from GBP13.1 million, and the net debt to adjusted Ebitda ratio was reduced to 1.3x from 3.3x.
James Cropper reiterated that it does not intend to pay dividends for the period through to September next year.
Looking ahead, the firm said trading since the first half's end has remained robust, and that it expects Advanced Materials revenue to grow albeit "at slightly lower rates". For Paper & Packaging, it expects to reach run-rate break-even adjusted Ebitda in the fourth quarter.
"The board remains focused on disciplined strategic execution with full-year revenues anticipated at similar levels to financial 2025," James Cropper added. "Full-year expectations for adjusted Ebitda are unchanged, with significant growth versus the prior year."
Shares in James Cropper were 4.2% lower at 316.00p each on Monday morning in London. However, the stock has gained 26% over the last 12 months.
By Emma Curzon, Alliance News reporter
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