James Cropper plc (LON:CRPR) Chief Executive Officer David Stirling discusses the Group’s strong interim results, with revenue increasing 18% to £61.2 million and adjusted EBITDA rising 90% to £7.8 million. With net debt reduced to £2.7 million and a 5p interim dividend reinstated, Stirling explains how improved financial performance and balance sheet repair have strengthened the business.
He also examines the return to profitability in Paper & Packaging, where sales grew almost 30%, the resilience of Advanced Materials despite weaker hydrogen coatings demand, and the outlook following an upgrade to full-year adjusted EBITDA guidance of £10.3 million to £11.3 million.
Looking ahead, Stirling discusses expectations for the second half, the factors influencing performance across the Group’s divisions and the intention to adopt a progressive dividend policy.
KEY MOMENTS
00:00 – Introduction to David Stirling and James Cropper’s interim results, which exceeded the Board’s expectations.
00:17 – Revenue increases 18% to £61.2 million, while adjusted EBITDA rises 90% to £7.8 million and diluted earnings per share increases 80% to 38.8p.
00:45 – Strong cash generation reduces net debt to £2.7 million, equivalent to just 0.2 times trailing 12-month EBITDA.
01:01 – James Cropper reinstates its interim dividend at 5p per share following a period without shareholder distributions.
01:23 – Stirling explains how balance sheet repair, refinancing and improved profitability have enabled the Board to resume dividend payments.
01:49 – Paper & Packaging returns to profitability ahead of schedule, supported by operational improvements and a more effective cost base.
02:21 – Sales growth of almost 30% in Paper & Packaging helps transform the division from a loss-making position into a strong EBITDA contributor.
03:09 – Advanced Materials maintains relatively stable revenue despite the anticipated slowdown in hydrogen coatings.
03:22 – Established markets, including medical, marine composites and construction, provide support alongside opportunities in carbon capture, hydrogen electrolysis and fuel cells.
04:41 – James Cropper upgrades full-year adjusted EBITDA guidance to £10.3 million to £11.3 million, representing expected growth of approximately 15% to 25%.
05:14 – Management anticipates a more subdued second half for Paper & Packaging, reflecting customer inventory movements and seasonal factors.
05:48 – Stirling outlines expectations for full-year adjusted EBITDA growth and confirms the intention to pay a full-year dividend under a progressive dividend policy.
ABOUT JAMES CROPPER
James Cropper plc (AIM: CRPR) is a UK-based manufacturer of specialist paper, packaging and advanced materials, with a history dating back to 1845. Headquartered in Burneside, Cumbria, the Group operates through two principal divisions, Paper & Packaging and Advanced Materials, supplying products to customers in more than 50 countries.
The Paper & Packaging division develops and manufactures specialist coloured papers, luxury packaging and moulded fibre products, including recycled fibre solutions designed to reduce reliance on single-use plastics. Advanced Materials produces specialist nonwoven materials and electrochemical coatings for applications including aerospace, medical technology, construction, marine composites, hydrogen production and fuel cells.
With manufacturing operations in the UK and United States, James Cropper combines its established papermaking capabilities with materials technology serving industrial and energy transition markets.
