(‘James Cropper’, the ‘Company’ or the ‘Group’)
Full Year Results
Robust performance with new strategic direction
James Cropper plc (AIM: CRPR), the Advanced Materials and Paper & Packaging group, today announces its audited results for the year ended 29 March 2025 (“FY25”).
HEADLINES
Financial
| · | Group revenue of £99.3m (FY24: £103.0m): |
| – 3% growth in Advanced Materials | |
| – 7% decline in Paper & Packaging due to a change in product mix. | |
| · | Adjusted EBITDA of £6.7m (FY24: £6.6m), driven by robust cost management. |
| · | Adjusted Operating Profit* up 32% to £2.6m (FY24: £2.0m), with the benefit of a lower depreciation charge |
| · | Adjusted profit before tax** up 77% to £1.3m (FY24: £0.8m). |
| · | Exceptional costs of £7.2m (FY24: £5.3m) due to non-cash asset impairment. |
| · | Loss before tax of £6.7m (FY24: £5.3m). |
| · | Net debt reduced 17% to £12.9m (FY24: £15.5m) driven by disciplined capital expenditure and strong working capital management. |
| · | Net cash generated from operating activities up 7% to £7.6m (FY24: £7.2m). |
| · | Basic and diluted loss per share increased 32% to -55.1p (FY24: -41.8p). |
Strategic
| · | David Stirling appointed Chief Executive Officer in February 2025, leading a comprehensive business review and the development of the strategy. |
| · | Revised Group strategy presented at Capital Markets Event on 18 June 2025, focusing on: |
| – Driving underlying double-digit revenue growth over the medium term in Advanced Materials by leveraging technology platforms, developing the opportunity in established markets and targeting high-potential markets. | |
| – Delivering sustainable profitability in through operational stability in Paper & Packaging with growth based on a ‘3 Peaks’ model to improve asset utilisation and product mix. | |
| – Clear capital allocation approach along with strong financial discipline to support long-term shareholder value creation. |
CURRENT TRADING AND OUTLOOK
For FY26, the Board expects to see the initial results from the implementation of the new strategy and is confident that the Group will deliver significant growth in Adjusted EBITDA profitability against FY25. Trading in the first quarter was ahead of the Board’s expectations and at a similar level to the strong start recorded in FY25. Despite headwinds from the loss of business at a merchant customer, as previously announced, expectations are for Paper & Packaging to deliver a significant improvement in Adjusted EBITDA against FY25, and to achieve run-rate Adjusted EBITDA breakeven in the final quarter. The Advanced Materials business is expected to report high single-digit revenue growth for full year FY26, with planned operational cost investments during the period focused on revenue growth beyond FY26.
Commenting on the full year results, James Cropper CEO David Stirling said:
“This is a period of change for the Group, and after six months as CEO, I am encouraged by the progress we have made in laying the groundwork for future success. We have a clear strategic direction, a focused plan of execution, and a stronger foundation from which to build.
“At our Capital Markets Event in June, we set out a refreshed Group strategy, one that positions Advanced Materials for organic growth by unlocking the potential of our technology platforms and concentration of resources on certain high-value opportunities. In Paper & Packaging, a focus on operational stability and clarity on priorities, along with product mix adjustments is already helping to drive more efficient operations and more resilient outcomes. Backed by a disciplined capital allocation framework, we are committed to creating long-term value for our shareholders.”
*Alternative Performance Measure 1 (APM1) “adjusted operating profit” refers to operating profit before interest and prior to the impact of IAS 19 and exceptional items.
**Alternative Performance Measure 2 (APM2) “adjusted profit before tax” refers to profit before tax prior to the impact of IAS 19 and exceptional items.