Highlights

  • James Cropper’s H1FY25 gross margin reached 57.7%, surpassing the industry median of 47.4%
  • In H1FY25, group revenue of GBP 49.90 million grew by 7.1% compared to H2FY24
  • Adjusted operating profit improved to GBP 0.40 million in 1HFY25, reversing a loss from H2FY24
  • PAT declined 41.1%, from USD 21,094 million to USD 12,420 million YoY

James Cropper PLC (LSE:CRPR) is a FTSE AIM All-Share listed company specializing in paper products and advanced materials. It operates across three segments: Paper, Colourform, and Technical Fibre Products.

In the first half of the financial year 2025 (H1FY25), the company had a higher gross margin of 57.7% and a higher current ratio of 2.24x compared to the industry median of 47.4% and 1.29x, respectively.

For the reported period, James Cropper reported group revenue of GBP 49.90 million, a 7.1% increase compared to H2FY24 (GBP 46.60 million), driven by a recovery in the advanced materials division, particularly in aerospace and defense markets, as well as normalisation in key paper markets.

The adjusted operating profit for the period was GBP 0.40 million, a notable improvement from a loss of GBP 1.00 million in H2FY24. It was attributed to stringent cost control measures, operational efficiencies, and margin growth in the advanced materials segment. However, profit after tax (PAT) decreased by 41.1% to USD 12,420 million from USD 21,094 million, reflecting a year-on-year decline of USD 8,674 million.

Recent Business Update

On 09 Dec 2024, James Cropper announced that its Advanced Materials division, in collaboration with Oxford University and the Henry Royce Institute, is developing next-generation battery electrodes. The project aims to enhance battery performance by using James Cropper's advanced carbon fibre veils to improve charging speed and efficiency. Set to be completed in six months, the research supports sustainable energy solutions and addresses the growing demands for advanced energy storage technologies.

Company Outlook

The company anticipates continued revenue growth in its advanced materials division, fueled by strong demand in aerospace, defense, construction, and hydrogen PEM electrolyser markets. However, the paper & packaging division faces challenges from weak luxury goods markets, particularly in China, and subdued demand in the photographic board sector. The group's focus on cost control and cash management is expected to help address these challenges, with medium-term performance expectations remaining steady, supported by strategic initiatives and a leadership transition in 2025.

Top 10 Shareholders:

The top 10 shareholders of James Cropper PLC (CRPR) collectively hold approximately 44.18% of the total shares. The largest shareholder, Mark Alexander James Cropper, holds around 20.17% of the shares, followed by Liontrust Investment Partners LLP with a 14.81% stake.

Stock Performance

The stock price of James Cropper PLC (CRPR) has fallen by approximately 22.41% over the past three months. It has a 52-week high of GBX 828.00 and a 52-week low of GBX 180.00, with the current price trading below the average of these two values. As of 19 December 2024, the stock's closing price stands at GBX 225.00.

 Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 19 December 2024. The reference data in this report has been partly sourced from EODHD/Others.