Can you Find it – Business © 2017 THE FULL STORY…JAMES CROPPER REPORTS REDUCED FIRST HALF PROFITSPublished in Can you find it Business Edition on Thursday, December 1st 2015
PAPER makers James Cropper plc recorded a reduced profit before tax of £163,000 for the first half of the year, compared with £704,000 for the first half of the previous year.
Group turnover was increased by one percent, from £31million to £31.5 million for the same period last year.
Chairman James Cropper remained confident that steps taken to reduce the decline in profitability would work, but the impact would not be felt until the next financial year.
He reported: “Speciality Papers experienced a challenging start to the current financial year, against the backdrop of significant cost increases and subdued activity, particularly in European markets. Despite the competitive nature of the market place, the sales gains achieved in the previous year have been consolidated and discussions have begun with customers to find those areas where price increases are achievable in order to mitigate the impact of rising costs. There was a recovery in sales to UK and Export markets in the second quarter.
“In response to the ongoing challenging trading circumstances, the three manufacturing subsidiaries will continue to focus their efforts on growing profitable sales, while developing and implementing plans to improve profitability through operational efficiencies and business optimisation.
“The Paper Mill Shop will continue to expand, building on our strategy of related business diversification.
“While I am confident that the steps to reverse the current decline in the Group’s profitability will be effective, the impact of these measures will only be felt significantly in the next financial year. There is therefore a possibility that the difficulties we face in Speciality Papers may cause the Group as a whole to make a loss before taxation in the current financial year after taking the net IFRS pension adjustments into account.”