James Cropper (CRPR) , a producer of advanced materials, luxury packaging and paper products, announced its full year results for the year ended 1 April 2023, citing a 24% increase in revenue despite inflationary pressures, amid a successful repositioning for growth.
James Cropper saw revenues bumped up 24% to £129.7 million, driven by high demand for its materials and retained contracts. Despite inflationary costs, adjusted operating profit rose 4% to £4.8 million compared to £4.6 million in 2022. Adjusted profit before tax was £3.2 million, down 21%, due to higher net finance costs.
Profit before tax was £1.3 million, 53% lower, due to increased net finance and exceptional costs. Net debt rose 35% to £16.6 million (2022: £12.3 million).
Operationally, James Cropper noted a strong global pipeline in its Future Energy sector - which makes materials and products for fuel cells, carbon capture, batteries and wind. Its Technical Fibre Products division - which makes materials for fuel cells - exceeded expectations and increased by 19% in the period.
Notably, James Cropper's continuous efforts towards energy conservation have resulted in an 8% annual reduction in site fuel consumption.
Looking ahead, James Cropper expects its Future Energy and Luxury Packaging divisions to deliver high market growth and value, with the business restructuring set to further accelerate growth.
Commenting on the full year results, James Cropper CEO Steve Adams said: "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."
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During the period, James Cropper set out to reorganise its business, moving it from three separate divisions (James Cropper Paper, Technical Fibre Products and Colourform™) into four market-facing segments, all unified under the James Cropper brand: Creative Papers, Luxury Packaging, Technical Fibres, Future Energy.
With regard to its Future Energy division, the rapid expansion of renewable energy and decarbonisation markets has heightened the demand for advanced materials, while sustainability-focused fibers and low-carbon processing methods are propelling growth in the paper and packaging sectors.
James Cropper is strategically positioning itself as a leader in sustainability for the materials industry, through efforts such as repurposing waste via its CupCycling initiative and a continued focus on reducing primary energy usage. It currently has one of the UK's largest roof mounted PV systems and is actively investing in new technologies for energy generation and optimising usage.
Overall, James Cropper’s strategic business restructuring and position in the carbon-free advanced material sector set it up well for continued growth.
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