Meanwhile, adjusted EBITDA was “consistent with the board’s expectations” and the 2023/24 period when it posted a pre-tax loss of £5.3m after revenue fell to £103m from £129.7m in the previous year. Adjusted operating profit more than halved to £2m in the same year.
According to the update today (7 May), a less favourable product mix in its Paper & Packaging division offset slightly higher revenue in the Advanced Materials segment during 2024/25.
Group adjusted profit before tax is expected to be slightly up on last year, due to lower depreciation charges, while net debt was lower than at the end of the 2023/24 financial year, which was attributed to lower capital expenditure and effective management of working capital.
CEO David Stirling, who joined James Cropper at the start of the year, said: “Since I joined the group in January, we have commenced a rigorous assessment of the business, with plans to create further opportunities for mid-term growth in Advanced Materials, a structured and focused programme of work to realise improvements in our Paper & Packaging business, and a focus on cash management.”
He said the assessment was progressing well and expected to provide a more detailed strategy update in June, ahead of the release of its audited 2024/25 full year results in July.
Projections for the 2025/26 financial year include single digit revenue growth in Advanced Materials, with planned operational investment targeting long-term revenue growth, while Paper & Packaging is expected to generate similar revenue to the 2024/25 period. A cost savings programme, currently underway, is expected to yield results during 2026/27, according to the trading update.
In November, the firm downgraded its outlook for the year after reporting a challenging first financial half as it was hit by a slow-down in the luxury packaging market and sales of its Colourform moulded fibre products.
Last week, the firm announced that it had sold some of its non-core intellectual property in what could potentially be a very lucrative deal, up to €4.2m (£3.8m).
James Cropper's share price fell first thing today from 139.25p to 127.25p, but had since climbed slightly at the time of writing. However, the share price has continued to decline this year, losing 58% of its value (52-week high: 390.00p, low: 132.50p).