James Cropper swings to profit, Advanced Materials beats expectations

James Cropper PLC on Wednesday reported single-digit annual revenue growth, and said the current financial year has seen a "strong start".

The stock was 6.3% higher at 404.00 pence on Wednesday late morning in London.

The Kendal, England-based materials, paper and packaging group reported a £3.9 million pretax profit for the year ended March 28, against a £6.7 million loss for financial 2025.

Adjusted pretax profit, which excludes the impact of James Cropper's defined benefit pension scheme and exceptional items, increased to £4.7 million from £1.3 million.

Adjusted earnings before interest, tax, depreciation and amortisation rose 33% to £8.9 million from £6.7 million. This was slightly above the company's forecast of £8.8 million as of mid-April, which was already around 10% ahead of market expectations.

Revenue, meanwhile, rose 3.6% to £102.9 million from £99.3 million. The Advanced Materials division reported a "record" £39.8 million in revenue, up 12% from £35.7 million. This was "supported by strong customer-specific growth and demand in Hydrogen Coatings." Its adjusted Ebitda rose 7.0% to £11.4 million from £10.6 million, James Cropper having in April reported high single-digit percentage growth.

Paper & Packaging revenue decreased 0.9% to £63.1 million from £63.7 million, while its adjusted Ebitda loss narrowed to around £500,000 from £2.1 million. James Cropper noted "a significant customer loss," but that the division returned to Ebitda profitability in the second half due to "progress from restructuring, cost reduction, raw material utilisation and energy efficiency initiatives."

James Cropper had placed a temporary hold on dividends during financial 2026, and said this position "will remain under review".

"I am pleased at the progress being made, particularly on strengthening our Balance Sheet and the significant positive momentum in Paper & Packaging, which we expect to continue into the current year," commented Chief Executive Officer David Stirling. "We also delivered ahead of our revenue expectations in Advanced Materials in the year."

James Cropper said that so far in the current year, trading momentum "has been positive with a strong start in the first quarter underpinning the board's expectations for the full year."

"Our challenges are to maintain the financial discipline shown within the business and to build a platform for future growth which is supported by a solid operational base and strong business development pipeline," Stirling added.

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