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James Cropper PLC on Thursday said its loss widened during its most recent financial year, driven by a downturn in its Paper & Packaging division and asset impairments. The Cumbria, England-based materials, paper and packaging group said its pretax loss widened to £6.7 million in the year that ended March 29, from a £5.3 million loss the year before. Revenue sank 3.6% to £99.3 million from £103.0 million, including a 3% growth in its Advanced Materials unit but a 7% decline in Paper & Packaging due to a change in product mix. Impairment of fixed assets increased 64% to a £7.2 million charge from £4.4 million. The firm recorded no write-off of assets on restructuring, compared to a £469,000 charge a year prior, and swung to a positive £502,000 in changes in inventories of finished goods and work in progress, against a £2.6 million loss. ‘This is a period of change for the group, and after six months as [chief executive officer], I am encouraged by the progress we have made in laying the groundwork for future success. We have a clear strategic direction, a focused plan of execution, and a stronger foundation from which to build,’ said CEO David Stirling. ‘At our capital markets event in June, we set out a refreshed group strategy, one that positions Advanced Materials for organic growth by unlocking the potential of our technology platforms and concentration of resources on certain high-value opportunities. ‘In Paper & Packaging, a focus on operational stability and clarity on priorities, along with product mix adjustments is already helping to drive more efficient operations and more resilient outcomes. Backed by a disciplined capital allocation framework, we are committed to creating long-term value for our shareholders.’ Looking ahead to financial 2026, James Cropper is ‘confident’ in delivering ‘significant growth’ in adjusted earnings before interest, tax, depreciation and amortisation as a result of its new strategy, especially within its Paper & Packaging unit. The division is set to achieve a run-rate adjusted Ebitda break-even in the final quarter. Adjusted Ebitda in financial 2025 grew 1.5% to £6.7 million from £6.6 million. Its Advanced Materials business is expected to report high single-digit revenue growth for financial 2026, with planned operational cost investments focused on further revenue growth in the years ahead. Trading for the first quarter has been in line with the board’s expectations, at a similar level to the ‘strong start’ recorded in financial 2025, the company added. Shares in James Cropper were up 11% at 262.00 pence in London on Thursday afternoon. The stock remains down 13% over the past year. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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