James Cropper plc (AIM: CRPR), the Advanced Materials and Paper & Packaging group headquartered in Burneside, UK, has reported group revenue of £61.2m for the six months ended 26 September 2026, an 18.3% increase on the £51.8m recorded in the equivalent prior-year period. Adjusted EBITDA nearly doubled to £7.8m, up 90.2% year-on-year, driven primarily by a sharp turnaround in the Paper & Packaging division. The Board has reinstated dividend payments, declaring an interim dividend of 5.0 pence per share, signalling renewed confidence in the Group's financial position and strategic trajectory.

Key Points

  • James Cropper plc (AIM: CRPR), Advanced Materials and Paper & Packaging manufacturer founded over 180 years ago
  • Group revenue rose 18.3% to £61.2m in H1 FY27, with adjusted EBITDA up 90.2% to £7.8m
  • Interim dividend of 5.0p per share reinstated; net debt reduced to £2.7m from £10.5m a year earlier
  • Investors may be watching the full-year adjusted EBITDA guidance range of £10.3m–£11.3m and the trajectory of Hydrogen Coatings revenues in H2 FY27

Paper & Packaging Swings to £3.9m Adjusted EBITDA Profit After Prior-Year Loss

The Paper & Packaging division delivered the most significant improvement within the Group, with revenue rising 28.7% to £42.2m compared with £32.8m in H1 FY26. This growth reflected strong performance across added-value segments, including a one-off inventory build by a major customer extending its distribution channels, as well as solid progress in commodity segments. The division swung from an adjusted EBITDA loss of £0.7m in H1 FY26 to a profit of £3.9m, a turnaround of £4.6m, attributable to revenue growth, cost discipline, and an operational improvement programme commenced during FY26. The announcement states that full-year Paper & Packaging revenue growth is expected to be in the high-single-digit range.

Advanced Materials Holds Revenue Steady at £19.0m Amid Anticipated Hydrogen Coatings Decline

The Advanced Materials division, which develops nonwoven materials and electrochemical coatings for sectors including aerospace, clean energy, and defence, reported revenue of £19.0m, unchanged from H1 FY26. Established markets — including aerospace, defence, construction, and medical — which accounted for approximately 80% of divisional revenue, delivered low single-digit percentage growth, offsetting an anticipated decline in Hydrogen Coatings revenues following a strong comparative period. Adjusted EBITDA for the division fell modestly by £0.4m to £5.1m, with the adjusted EBITDA margin narrowing to 26.8% from 28.9%. The announcement states that Advanced Materials revenue and adjusted EBITDA in H2 FY27 are expected to be similar to H1 FY27.

Debt Refinancing and Balance Sheet Strengthening Enable Dividend Reinstatement

James Cropper refinanced its debt facilities on 1 July 2026, introducing a new invoice discounting facility that enabled a reduction in gross debt of £8.5m during the period to £12.6m, alongside access to increased financial flexibility. Net debt at the period end stood at £2.7m, down £7.8m year-on-year and £5.4m below the FY26 year-end figure of £8.1m. The net debt to adjusted EBITDA ratio improved sharply to 0.2x from 1.3x in H1 FY26. This balance sheet progress enabled the Board to reinstate a progressive dividend policy, with a 5.0 pence per share interim dividend declared. Full-year net debt is expected to remain below the FY26 year-end level.

Full-Year Adjusted EBITDA Guidance Raised to £10.3m–£11.3m, 10–20% Above Prior Market Expectations

The Board's full-year outlook, as previously communicated on 20 October 2026, anticipates group adjusted EBITDA in the range of £10.3m–£11.3m for FY27, representing 10–20% above prior market guidance and approximately 15–25% above FY26. Full-year group revenue is expected to show mid-single-digit growth over FY26. The announcement identifies energy cost volatility as a key ongoing risk, to be managed through customer surcharge arrangements. Capital expenditure timing, the Group-wide ERP upgrade, corporation tax payments, and the interim dividend payment are cited as factors expected to lift year-end net debt above H1 FY27 levels, though still below FY26 year-end.