The Company has received notice that a significant merchant customer of the Paper & Packaging business will no longer source certain coloured paper ranges from James Cropper, effective immediately. This decision followed a reduction of approximately 50% in sales of these products to that customer in the first quarter of the financial year.
With a revised strategy and operating plan already established in Paper & Packaging, notwithstanding the merchant customer’s reduced sales referenced above, provisional results for the first quarter of the current year to 28 March 2026 (“FY26”) show this Business Unit trading ahead of both the same period in the previous year and of the Board’s expectations. This first quarter performance has been driven by business with other customers and efficiency savings pursuant to the revised operating approach. The Board’s expectations for the Paper & Packaging business in FY26 remain for it to report a significant improvement in Adjusted EBITDA against FY25, and the achievement of run-rate Adjusted EBITDA breakeven in the final quarter.
Revenue in the Advanced Materials business grew by approximately 10% in the first quarter of FY26 compared to the same period in FY25. The Board continues to expect the Advanced Materials business to report single-digit revenue growth for full year FY26, with planned investments in operations during the period focused on revenue growth beyond FY26.
Overall, the Board is confident that the Group will deliver significant growth in Adjusted EBITDA profitability in FY26 against FY25.
