James Cropper announces full year results for the year ended 1st April 2023

Thursday 24th August 2023 - James Cropper plc, a global market leader in advanced materials, luxury packaging and paper products, today announces a strong financial recovery, including revenue growth across all divisions. In a transformational year for the Group, the business delivered a resilient performance. For the year ended 1 April 2023 revenue increased 24% to £129.7million, driven by high demand and retained contracts. Adjusted operating profit also increased, by 4% to £4.8million, despite significant inflationary cost headwinds.

Key headlines: Financial

Strong recovery in a transformational year, with a 24% increase in revenue to £129.7m (2022: £104.9m) driven by high demand and retained contracts.
Despite the significant inflationary cost headwinds, adjusted operating profit increased 4% to £4.8m (APM1*) (2022: £4.6m).
£3.2m adjusted profit before tax, 21% lower (2022: £4.0m) (APM2**) due to an increase in net finance costs.
Exceptional costs of £1.1m which reflects outperformance at TFP Hydrogen and consequent reassessment of the value of contingent consideration (2022: £0.4m).
Profit before tax of £1.3m, 53% lower (2022: £2.8m) due to an increase in net finance costs and exceptional costs.
Net debt of £16.6m up 35% (2022: £12.3m).
Earnings per share 5.4p down 62% (2022: 14.2p).
Full year dividend proposal 6.0p per share in line with expectations (2022: 10.0p).

*APM1 “Adjusted operating profit” refers to operating profit before interest and prior to the impact of IAS 19 and exceptional items.

**APM2 “Adjusted profit before tax” refers to profit before tax prior to the impact of IAS 19 and exceptional items.

Steve Adams

CEO, James Cropper

“ "We achieved a good performance for the year with 24% revenue growth in spite of unprecedented market headwinds. In FY2023, significant progress was made in repositioning James Cropper to capitalise on growth opportunities within its core and emerging end-markets, such as the fast-growing renewable energy and decarbonisation markets which are in need of novel high-performance materials and sustainable fibres. We will aim to drive increased value for our shareholders through accelerated growth in each of our market focused segments; Creative Papers, Luxury Packaging, Technical Fibres and Future Energy by leveraging our potential as one Company under the James Cropper name. I am excited by the many opportunities and have confidence in our strategy to accelerate growth and in our exceptional team worldwide to make a real difference. The foundations are in place to create a greater global presence for James Cropper, by repositioning ourselves to better serve our existing and target customers." ”

Steve Adams

CEO, James Cropper

Key headlines: Operational

Strong global pipeline in Future Energy sector.
TFP Hydrogen exceeded our expectations.
Well advanced in the transformation of the Paper division post year end.
Significantly tighter scope around decarbonisation project: 40% lower capital investment requirement.
Ongoing energy saving actions contributed to 8% annualised reduction in site fuel consumption.
Strengthened the Board and Executive leadership team.
Strengthened broader organisational leadership to drive strategy.

Key headlines: Outlook

Future Energy and Luxury Packaging to deliver high market growth and value, respectively.
Integration of Colourform with Paper to drive a unique and compelling Luxury Packaging proposition.
Consolidation across the organisation and estate to reduce costs and improve efficiency.
Streamlined Paper Product offer to drive margin improvements and productivity.
Continued technological leaders in recycled content and responsible sourcing.
Strengthen our sector leadership in carbon reduction.
Sharper focus with better clarity and assessment of our climate risks.
Strong leadership team to reposition James Cropper.
Drive brand value, recognition and preference in each market focused segment.

Annual General Meeting

The Annual General Meeting will be held on 26 September 2023. The notice of Annual General Meeting will be mailed to shareholders on or around 4 September 2023 together with a copy of the 2023 Annual Report.