James Cropper reports fall in first-half profit

12th Nov 2013 12:32

James Cropper posted a fall in first-half profit reflecting a rise in costs as the paper and materials company undergoes a restructuring. The firm's pre-tax profit fell to £216,000 in the six months to September, from £1m a year earlier. A slight increase in revenue from £39m to £42m was offset by restructuring costs, green levies, higher energy bills and the rising price of pulp in its speciality papers division.The business also announced it will no longer proceed in an investment in a steam raising boiler after securing £2.9m of Regional Growth Fund cash in October 2012.The planned investment was shelved due to restrictions from European Union State Aid rules that require the boiler to be fuelled by waste wood for a number of years in order to receive the full grant."It is anticipated that goup operating profitability for the second half of the year will be significantly higher than that achieved in the first, however the impact of inflated input costs ill not be fully recovered in the second half," said Chairman Mark Cropper."I therefore feel that at the present time it is prudent to anticipate an out turn for the full financial year in line with last year's profit before tax."Shares fell 9.55% to 355p at 12:49 on Tuesday.RD