James Cropper (CRPR) Trading Update summary

Financial performance and outlook

• FY2024 revenue expected in line with prior guidance; profits anticipated slightly ahead of expectations.

• FY2025 outlook is positive, with growth expected in both Advanced Materials and Paper & Packaging divisions.

• Net debt position improved due to robust working capital and capital expenditure management.

• Group has remained compliant with banking covenants and is seeking temporary adjustments for additional headroom.

Advanced materials business

• Revenue declined year-on-year due to a slowdown in fuel cell market demand, partially offset by growth in hydrogen electrolyser business.

• New customer acquisition and specification development continued despite project delays.

• Growth in aerospace and automotive sectors supported the core business.

• Targeted capital investment aims to enhance efficiency and support future growth.

• Appointment of a new managing director with over 30 years' industry experience announced.

Paper & packaging business

• Supply chain destocking and high inflation impacted volumes, but customer retention remained strong.

• Lower input costs, improved product mix, and productivity initiatives helped protect margins.

• Restructuring completed as planned; ongoing work to optimize the new operating model.

• Order intake and project pipeline indicate early signs of market recovery for FY2025.