James Cropper (CRPR) CMD 2025 summary

Strategic vision and business transformation

• New leadership has initiated a comprehensive strategic review to maximize shareholder value, leveraging underutilized capacity and technical capabilities built over 180 years.

• The business is organized into Advanced Materials and Paper & Packaging, with Advanced Materials targeting high-growth, high-risk markets like energy transition, and Paper & Packaging focusing on returning to profitability and technical innovation.

• A shift from bespoke, customer-specific solutions to scalable, margin-driven offerings is underway, especially in Advanced Materials, while Paper & Packaging adopts a 3-Peak model balancing luxury packaging, craft/specialty papers, and high-recycled content products.

• Group strategy emphasizes capital allocation, operational self-help, and customer alignment for sustainable growth, with cross-divisional synergies from shared technical platforms and fibre expertise.

• Renewed focus on quality, service, and cost efficiency, with organizational realignment to enhance resilience.

Operational and financial priorities

• Operational stability, improved asset utilization, and knowledge management—including AI adoption—are immediate priorities, especially in Paper & Packaging.

• Capital discipline has been strengthened, with reduced CapEx, improved working capital, and reprofiled debt repayments to ensure liquidity and resilience.

• Net debt to EBITDA improved from 2.4x in FY24 to 1.9x in FY25, and gearing reduced from 61% to 50%.

• No dividends are planned until at least September 2026, with a focus on deleveraging and maintaining net debt/EBITDA below 2x; long-term plan to eliminate the pension fund deficit remains.

• FY24 global revenue was £103.0m, with the UK, Europe, Americas, and Asia contributing 38%, 29%, 24%, and 8% respectively.

Market approach and growth outlook

• Advanced Materials is focusing on select growth markets (energy transition, aviation, advanced air mobility), aiming for over 10% growth in energy solutions, and managing risk through a portfolio approach.

• The business leverages niche technology and flexible manufacturing to target higher-margin, technical paper and non-woven products, supporting the transition to a circular economy.

• Paper & Packaging is positioned to gain market share in both core and commoditized segments, with technical papers as a future high-margin growth area.

• Growth CapEx will be modest in the near term, with existing capacity sufficient to support planned expansion; further financial guidance expected with FY25 results.

• The company aims to rebuild trust with stakeholders through transparent communication and a focus on sustainable, margin-driven growth.