James Cropper restores dividend as paper business returns to profit
British paper and advanced-materials maker James Cropper restored its interim dividend after first-half profit increased. Paper & Packaging returned to an adjusted operating profit as revenue grew, supported partly by seasonal factors and a customer’s one-off inventory build. Management retained its annual adjusted earnings range and expects more normal seasonal trading in the second half.
Economics & Markets··Midday
Higher interim profit brings dividend back
British paper and advanced-materials producer James Cropper increased first-half profit and restored its interim dividend as Paper & Packaging revenue grew.[1], [2]
Revenue for the half-year ended 26 September rose 18.3 per cent from 51.8 million pounds to 61.2 million pounds. Statutory pretax profit increased from 2.7 million pounds to 5.0 million pounds, while adjusted pretax profit rose from 2.1 million pounds to 5.8 million pounds. Basic earnings per share increased from 21.6 pence to 39.8 pence. The board declared a 5 pence interim dividend, against no payment a year earlier.[1]
Paper business benefits from customer stock-building
Paper & Packaging revenue rose 28.7 per cent to 42.2 million pounds. Adjusted earnings before interest, tax, depreciation and amortisation moved from a loss of 0.7 million pounds to a profit of 3.9 million pounds. The company cited seasonal benefits and a major customer’s one-off inventory build as it extended distribution channels. Advanced Materials revenue stayed at 19.0 million pounds; its adjusted earnings on the same basis fell from 5.5 million pounds to 5.1 million pounds.[1]
Debt falls while annual guidance stays unchanged
Group net debt fell from 10.5 million pounds to 2.7 million pounds. Some payments moved into the next period because the reporting half ended four days before month-end; management put normalised net debt at 5.5 million pounds after allowing for this timing. It retained annual adjusted earnings before interest, tax, depreciation and amortisation guidance of 10.3–11.3 million pounds and expects Paper & Packaging trading to return to more normal seasonal levels in the second half.[1]
