James Cropper finds its niche
PAPER maker James Cropper has said that it made a profit during its first quarter due to a strong recovery in its speciality papers division.
The company, which is based in Kendal, Cumbria, said that despite a 7% fall in volumes its turnover increased by 3% – partly due to an increase in the price of pulp, which has climbed by 60% over the past two years.
Cropper said that its technical fibrew products division was likely to suffer due to
“resurgent recessionary pressures” in the US market.
However, he added that its paper converting business is trading in line with expectations. Demand for digital grade printing paper is likely to be bwelow last year’s “exceptional” launch results, but overall demand will still be ahead of previous years.
“The recovery of Speciality Papers is very pleasing and will offset any potential down turn in TFP, illustrating the strength of our balanced portfolio of businesses,” said Cropper.
“The current financial year opened with a strong balance sheet and low borrowings following the measures we have taken to reduce risk and conserve cash over recent years.
“This situation provides me with confidence as we approach an exciting period of capital investment which aims to strengthen our platform for growth and to mitigate our risk exposure to raw material and energy costs.”
