Paper maker unfazed by Brexit as sales rise 9%

LISTED Cumbrian paper maker James Cropper says it has enjoyed a promising start to the financial year with its chairman saying the Brexit vote will have no “material impact” on the company.

Chairman Mark Cropper will tell the company’s annual meeting at 11am today group sales for the quarter are up 9%, year-on-year.

“Both the paper business, and Technical Fibre Products (“TFP”) are enjoying year-on-year growth,” he will say. “Paper business growth is being realised from our focus on higher value niche markets such as packaging, creative papers and digital. TFP growth has come from our energy, aerospace and industrial markets.”

Developments at the company’s new subsidiary James Cropper 3D Products remain on track.

The first moulding machines were successfully commissioned in the quarter and customer trials are underway.

Initial feedback from the market, in the main retailers and brands, has been positive. The company hopes to begin commercialising its sustainable alternative to plastic in the remainder of the financial year.
 
“Our plans for the year will not be materially impacted by the UK’s vote to exit from the European Union,” Cropper will say.

“Our capital investment plans remain unchanged as do our recruitment and R&D activities.
 
“The group’s exposure to currency is mitigated by growing exports. Continuing the export drive is a core strategic focus for management.

“Overall, the outlook for the group remains positive. TFP will make use of available manufacturing capacity to accelerate sales into aerospace, green technologies and defence markets.

“Paper will continue to develop its product portfolio in profitable niche markets.  3DP is primed to become a reputable supplier of high quality coloured moulded paper packaging.”   

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