James Cropper trading well, unveils reorganisation plans

19th Apr 2023 14:29

(Sharecast News) - Materials specialist James Cropper reported positive trading in an update on Wednesday, as it unveiled plans to accelerate revenue and profit growth across the group.

The AIM-traded firm said that for the financial year ended 1 April, it expected to have generated £130m in revenue and an adjusted profit before tax of at least £2.2m, exceeding market expectations of £2m.

It put that performance down to an improvement in trading performance during the second half of the financial year.

James Cropper said it had made significant progress since 2022 in repositioning its business to capitalise on growth opportunities in its core and emerging end-markets.

The company said it was targeting growth in fast-growing renewable energy and decarbonisation markets, which were creating a greater need for high-performance materials.

To position the company for accelerated growth, James Cropper announced three strategic changes.

First, it would reorganise and rename its brand profile, and second, it would make a "step change" of investment in innovation and systems.

Finally, the company said it would streamline its paper division to improve productivity and margins.

"After a year in which the company has faced unprecedented challenges, I am extremely grateful to the whole team for helping to exceed our revised expectations," said chief executive officer Steve Adams.

"However, moving forward, we must continue to be mindful of future headwinds and drive margin improvement.

"We're a purpose-driven business built on strong values and announcing potential job losses is not a decision taken lightly."

Adams said the company would "work collaboratively" with employees, unions, and representatives throughout the process.

"Our strategic realignment will drive margin improvements by bringing greater focus on our customers and allow us to take better advantage of our size and remain agile and dynamic in our markets.

"Combined with our wealth of manufacturing knowledge, sustainability alternatives and pioneering abilities we will strengthen our position across multiple sectors as the preferred global partner of choice."

At 1317 BST, shares in James Cropper were up 4.08% at 598.45p.

Reporting by Josh White for Sharecast.com.