James Cropper to miss full-year forecasts

15th Nov 2011 14:59

James Cropper, a specialist paper and materials group, lost over 20% on its share price after announcing that full-year trading results will be below market expectations.The reduction comes following a fall in pre-tax profit for the half year to 1 October from £1.7m to £1.1m on a like-for-like basis, equalling a fall in diluted earnings per share from 14.8p to 11.6p. Chairman Mark Cropper said: "In the first half, speciality papers and converting traded in line with management expectations, with speciality papers well ahead of last year at the interim date."However, as previously reported, the growing concerns of customers in the US relating to resurgent recessionary pressures and Federal austerity measures have been felt in our order book. It must therefore be anticipated that profits in the full year will be significantly lower than in the previous year."Cash at the end of the period fell from £4.4m to £0.17m. The share price dropped 22.22% to 154p by 15:27. NR