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.
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.
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.
COMMENTING ON THE FULL YEAR RESULTS, JAMES CROPPER CEO STEVE ADAMS SAID:
