Shares in James Cropper (CRPR ) jumped on Tuesday after the group unveiled to investors that it had experienced a 47% increase in revenues during its first half, returning to pre-pandemic levels.
Due to improved trading conditions, the Board has now declared an interim dividend of 2.5p per share, compared to no dividend in 2020. It said the outlook ‘continues to be favourable’.
The advanced materials and paper products said revenue rose by 47% in the first half to £49.8m compared to £34m in the prior year comparative, with growth across all divisions.
Adjusted profit before tax (excluding the impact of IAS 19) was £2.3m for 1H, compared to £1.3m in the prior comparative period. Over the first half of the year, the company saw demand return to pre-pandemic levels and is now operating without government support.
Adjusted profit before tax for the Group increased by 70%, with strong growth across all businesses. It is expected that the Group will continue to grow in the second half.
In TFP, sales grew 19%, including recovery in the aerospace sector and strong growth continuing in renewable energy. Paper experienced 64% growth on prior-year sales, with luxury packaging, publishing, art and photography sectors returning to strength, it noted.
The Group said its Colourform division, which has won and continues to win several new contracts, saw 22% growth in all markets. The Company said Colourform’s pipeline continues to grow with ‘unique, pioneering projects for sustainable coloured packaging solutions.’
Shares in James Cropper were trading 10.20% higher at 1,350p following the news.
It said plans are in place to establish an additional electrolyser line in the US as the hydrogen market expands and that the 50% increase in TFP’s non-woven lines is now operational.
Paper sales are projected to be ahead of pre-pandemic levels by the start of 2022, with a strong demand for recycled fibre content and responsible sourcing while Colourformä is attracting brands seeking plastic-free sustainable packaging across the several sectors.
Through the second half, the Company noted that new talent will be joining the Group Board, including a successor for the TFP MD role and two additional Non-Executive Directors.
“We are committed to being operationally carbon neutral by 2030 and to significantly reducing carbon through our entire supply chain by 2035. Building on strong foundations, the newly defined ESG committee is developing targets against all our ESG strategic intents.
We invest significantly in people, innovation and capability will ensure that over the long term, the Group has the potential to sustain growth across all its businesses. In the nearer term, the full-year results are anticipated to show strong growth from the pandemic,” said Cropper.
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