James Cropper's (CRPR) operating profit before interest and exceptionals came in at £2.6m for the half-year through to October, a 44 per cent increase on the comparable period in 2015. Revenue was on the rise at the core paper business, augmented by a succession of product launches, but the technical fibre products (TFP) unit was the standout performer, with segmental revenue up by a fifth on the back of strengthening demand across aerospace, energy and defence markets.
TFP remains the largest contributor to group profitability, a reflection of the focus on research and development that has generated higher-margin materials utilised in high-tech applications across the alternative energy, fire protection, aviation and defence industries. Meanwhile, James Cropper formally launched its 3D products segment (3DP) at the London Packaging Innovations show in September, where it presented its sustainable moulded fibre products for use in packaging.
Despite the commitments linked to research and development and the 3DP launch, the group's balance sheet isn't stretched, although investors will note the widening deficit on the defined benefit pension scheme. Although closed to further accrual, the combined deficit has risen from £7.9m in April to £22.3m in October.
Stockdale Securities is forecasting pre-tax profit of £5.5m for the March 2017 year-end, leading to EPS of 45.9p, against £5m and 46.3p in 2016.
| JAMES CROPPER (CRPR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,080p | MARKET VALUE: | £103m | |
| TOUCH: | 1,060p-1,100p | 12-MONTH HIGH: | 1,165p | LOW: 570p |
| DIVIDEND YIELD: | 0.9% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 169p | NET DEBT: | 41% | |
| Half-year to 1 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 42.1 | 1.0 | 8.5 | 2.2 |
| 2016 | 45.4 | 2.0 | 17.4 | 2.5 |
| % change | +8 | +100 | +105 | +14 |
Ex-div: 15 Dec Payment: 13 Jan | ||||
