James Cropper (CRPR) H1 2024 earnings summary

Executive summary

• Accelerated growth strategy is on track, driving gross margin expansion and increased profitability for the Group.

• Revenue for H1 FY24 was broadly in line with expectations despite market headwinds in Paper Products.

• Advanced Materials division delivered strong growth, particularly in Future Energy, while Paper Products benefited from restructuring and margin improvements.

• New leadership team established across market-facing segments and at Group level, supporting transformation and operational efficiency.

Financial highlights

• Group revenue for H1 FY24 was £56.5m, down from £61.6m in H1 FY23.

• Adjusted operating profit rose to £3.0m (H1 FY23: £0.5m); profit before tax improved to £2.4m from a loss of £0.9m.

• Earnings per share increased to 19.4p (H1 FY23: loss per share 9.2p); interim dividend declared at 3.0p per share (H1 FY23: 2.0p).

• Net debt reduced to £13.3m from £16.6m at FY23.

• Operating margin and gross margin improved due to cost management and operational efficiencies.

Outlook and guidance

• Board expects continued growth in Advanced Materials, with ongoing investment in electrolyser manufacturing and new market opportunities.

• Paper Products restructuring to complete in Q4 FY24, positioning for further margin improvement and recovery in global demand in FY25.

• Revenue growth anticipated from FY25 onwards, with increased profitability expected in FY24.