James Cropper's maiden profits double thanks to technical fibre products growth

23rd Jun 2015 13:47

Shares in paper manufacturer James Cropper rose on Tuesday after the company posted a 96% increase in full-year pre-tax profit, despite a decline in full-year revenues, driven by a good performance in its technical fibre products (TFP) division.Pre-tax profit jumped 96% to £2.6m in the year ended 28 March 2015, although revenue fell 1.7% to £83.1m. UK sales rose 3.4% but export sales fell 6.9%, while in the US sales declined 4.8%. In continental Europe, sales were down 11.4% due to the weak euro against the pound and lower volumes.However, the company's TFP division saw its revenue rise 11.5% thanks to strong growth in China, where sales grew 66%.The company said it is investing in additional manufacturing equipment which will double its capacity in the UK. Early commissioning is expected to commence mid July 2016.Chairman Mark Cropper said: "Technical fibre products operates in high growth markets which offer many exciting opportunities including in green technologies, aerospace, and defence."I am delighted with the progress we have made in the past financial year," he added.Westhouse brokers said: "While there will be short-term impacts on our numbers from currency movements (mainly the euro) and more importantly the start-up costs relating to the new initiative we believe that the longer-term profit potential will be enhanced."Shares were up 4.41% to 459.92p on Tuesday at 14:01.