Papermaker James Cropper sees increase in revenues whilst profits dip

James Cropper has seen its revenues significantly increase whilst profits have declined, its full-year results revealed.

The papermaker saw revenues jump up by 24 per cent to £129.7million in the year to 1 April, which it said was due to ‘high demand and retained contracts’.

But the Cumbria-based business also revealed that adjusted profit was down by 21 per cent to £3.2million over the same time period, whilst profits before tax plummeted by over 53 per cent to £1.3million.

The company said that the decline in pre-tax profits was due to ‘an increase in net finance costs’.

The group, which specialises in advanced materials and paper products, also said that in the last financial year the business had secured a ‘strong global pipeline in the future energy sector’ and that its TFP Hydrogen division had ‘exceeded expectations’.

James Cropper shares fell by 0.46 per cent to 716.67p in early morning trading on Thursday. 

James Cropper chief executive Steve Adams said: ‘We achieved a good performance for the year with 24% revenue growth in spite of unprecedented market headwinds. 

‘We will aim to drive increased value for our shareholders through accelerated growth in each of our market focused segments; creative papers, luxury packaging, technical fibres and future energy, by leveraging our potential as one company under the James Cropper name.’

In October, the paper producer revealed that due to surging wholesale gas prices, exacerbated by spikes in late July and early August, its energy costs had skyrocketed by almost 150 per cent this year.

Its raw material outlays, which form a large share of overall costs, have seen ‘unprecedented inflationary headwinds’ after climbing 20 per cent on the previous year, the group said. 

The company passed on much of these extra costs – worth many millions of pounds – to consumers through price increases and energy surcharges.