Paper specialist reports annual revenue growth

Cumbria-based paper products specialist Cropper reported higher revenues for the year to March 31, although pre-tax profits were reduced

The Kendal company, which was established in 1845, saw turnover climb to £96.3m, from £92.4m the previous year.

However, pre-tax profits of £4.5m compared with £5.5m the previous year.

The firm said the impact of higher pulp prices added an estimated £3.5m to material costs for the year, although sales were higher in every division.

Despite the reduction in profits, shareholders will receive a 14% increase in dividends of 13.5p, up from 11.5p last year.

Looking ahead, the firm said its strategy to drive to a higher value product mix is being deployed successfully, while activities to drive operational efficiencies are yielding positive results.

Its technical fibre products reported double digit organic growth across target markets, while recently installed capacity is ensuring demand is met, and additional capacity is being planned to support continued volume growth.

Chairman Mark Cropper said: “As intimated by the recommended final dividend increase, the board and I continue to be excited about the prospects of the group.

“We recognise there are significant challenges in recovering the margins lost in paper to pulp costs and that continued research, innovation and investment will be vital to maintaining our position and creating future value.”

He added: “This year I have been heartened by the growing recognition the group is receiving for our sustainable products, and the integrity of our operations and employees.

“The latter matters most of all.

“Indeed, more than ever we are dedicating time and investment to ensure all who work for James Cropper are given the skills, know-how, accountability and awareness of our ambitions to have successful long term careers within the group.

“These in turn, I hope, will ensure we can continue to expand for many years to come.”