Just when the paper division at James Cropper (CRPR) looked as though it had turned a corner, an increase in the price of pulp created a roadblock. Still, the division managed to maintain revenues for the six months to September 2017, offsetting a downturn in sales in the UK with an increase in digital and packaging contracts in the US. However, management admitted profit growth for this division would be challenging over the full year.
Group sales growth was led by the technical fibre products business, which is still benefiting from strong demand for carbon fibre substrates used in fuel cell technologies. This, combined with double-digit growth in sales to the aerospace and defence markets, pushed sales of technical fibre products up a fifth.
The 3D products business launched Colourform, a mouldable fibre packaging that offers a sustainable alternative to plastic. It has already won a number of commercial contracts, but management expects that it will need to invest in increasing production capacity once demand ramps up.
Stockdale Securities upgraded its profit forecasts and now expects pre-tax profit of £7.2m for 2018, giving EPS of 62.1p (up from £6.6m and 59.9p in 2017).
| JAMES CROPPER (CRPR) | ||||
| ORD PRICE: | 1,573p | MARKET VALUE: | £149m | |
| TOUCH: | 1,540-1,605p | 12-MONTH HIGH: | 1,952p | LOW: 1,033p |
| DIVIDEND YIELD: | 0.8% | PE RATIO: | 28 | |
| NET ASSET VALUE: | 246p | NET DEBT: | 20% | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 45.4 | 2.0 | 17.4 | 2.50 |
| 2017 | 47.4 | 2.3 | 23.1 | 2.50 |
| % change | +5 | +15 | +33 | |
| Ex-div: | 29 Nov | |||
| Payment: | 12 Jan | |||
