29th Jul 2009 12:57
James Cropper PLC
Annual General Meeting and Trading update
29th July 2009
STATEMENT BY THE CHAIRMAN, J A CROPPER
At the AGM held at 11.00am today, James Cropper, Chairman, made the following statement:
"I am pleased to report that overall the Group has made a much better start to the new financial year compared to the comparable period last year".
"James Cropper Speciality Papers has experienced a strong opening quarter continuing its recovery from the second half of the previous financial year, despite volume being down 12% on the same period last year".
"Northern Bleached Softwood Kraft ("NBSK") pulp opened the new financial year at US$580/tonne. By the end of June it had moved upwards to US$620/tonne. Market forecasters anticipate that further progressive, moderate increases will take place in the course of the coming twelve months".
"Despite the uncertainties surrounding the forward trend in exchange rates, quoted energy prices and pulp costs, Speciality Papers is expected to continue its recovery in the year ahead".
"As I indicated in my preliminary statement of 23 June, sales by Technical Fibre Products in the first half of the new financial year will be depressed as a consequence of re-structuring at a major customer and de-stocking by others. However recovery is anticipated in the second half -year".
"Not withstanding current trading, I am very encouraged that TFP continues to experience an increase in demand for materials to service aerospace, security and fuel cell markets, all of which are of strategic long-term importance to the business".
"Although James Cropper Converting is experiencing a fall in volume of its traditional mount board and display board products as a consequence of recessionary pressures, sales of digital printing boards to the US market are set to increase in the second half-year".
"Losses by The Paper Mill Shop in the opening quarter have been less than anticipated, with sales up on last year".
"Gearing is currently low as a consequence of tight working capital management and light capital investment. However borrowing is expected to increase in the second half of the financial year as a result of increased capital expenditure to enhance capacity, capability and efficiency improvements".
"The down-turn in the global economy continues to create a challenging trading climate for the Group. Nevertheless, I am confident that in the short-term our existing management approach will enable the Group to capitalise on opportunities when the economic climate becomes more favourable thus leading to significant growth in the medium to long-term".
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Enquiries: |
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John Denman Group Finance Director |
Andrew Kitchingman Managing Director, Corporate Finance |
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James Cropper PLC |
Brewin Dolphin Investment Banking |
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Tel: 01539 722002 |
Tel: 0845 270 8610 |
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www.cropper.com |
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