City round-up: James Cropper; Frenkel Topping; Victorian Plumbing
James Cropper, the Cumbria-based paper manufacturer, is confident it can emerge from the coronavirus pandemic stronger, after enduring tough trading conditions throughout the emergency.
Announcing annual results to March 27, today, it revealed revenues had dropped to £78.8m, from £104.7m the previous year, and a pre-tax profit of £1.7m compared with a £5.5m pre-tax profit in 2020. The company registered £1.5m of exceptional costs during the reporting period.
It has proposed no dividend payment this year, compared with a 2.5p per share payout the previous year, to preserve cash.
Net borrowings declined from £11.1m in 2020 to £7.5m, although capital expenditure fell from £9.2m a year ago to £3.1m.
The company said demand for its services reduced by 25% across the group, with the paper division affected most. It carried out an organisation restructure aligned to support growth and reduce costs by £2m per year.
It received £2.9m of government support in the UK and USA during the period, and managed to successfully manage Brexit with no lasting material impact on the group.
In January it acquired PV3 Technologies to accelerate penetration of the hydrogen market.
At March 27 2021, the company had liquidity of more than £11m, including cash and available overdraft facilities, and confirmed that all investments have been restarted in the new financial year to support growth.
Chairman, Mark Cropper, said: “I am pleased to report that in the event the year has passed as well as we might have hoped. We have managed to keep operating throughout and most importantly our workforce has stayed safe.
“That we find ourselves in this position speaks volumes for the unprecedented commitment of everyone across the group.
“Our mantra since the earliest days of the COVID crisis has been to ’emerge stronger’. This time last year it was far from a foregone conclusion that we would.
“I can now say with some confidence that we have every chance to do so, even while the pandemic and its aftershocks are far from over.”
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Richard Fraser
Frenkel Topping, the Salford-based financial services group, produced a resilient year of trading and is performing in line with management expectations, it said in a statement ahead of today’s annual general meeting.
Chief executive, Richard Fraser, said: “Frenkel Topping delivered a strong and demonstrably resilient performance in 2020, against the challenging market backdrop which COVID-19 presented.
“This performance was underpinned by the continued implementation of our organic growth strategy, driving AUM (assets under management) growth as well as a focus on the consolidation of the Personal Injury (PI) and Clinical Negligence (CN) marketplace through the acquisition of Forth Associates Limited and, early in the current financial year, the acquisitions of A & M Bacon Limited and Partners in Costs Limited.”
The AIM-listed company’s revenue and profit before tax in 2020 increased by 19% and 25% to £10.2m and £1.5m, respectively. As at April 30, AUM was up circa six per cent to £1,072m compared with £1,012m as at December 31, 2020, reflecting net inflows and encouraging levels of new business wins.
As at April 30, assets on a discretionary mandate were up circa 11% to £586m compared with £527m as at December 31, 2020. The group maintained a strong balance sheet with net cash of £8m as at April 30, 2021, compared with £12m at December 31, 2020.
The group continues with its buy and build strategy to further strengthen its position within the PI and CN marketplace and offer a rounded service to clients. Forths, PIC and A&M Bacon have all been fully integrated and are performing well. The company is also reviewing a pipeline of other near term opportunities and potential acquisitions.
Richard Fraser said: “We have continued to trade positively since our last update at the time of our final results. The first five months of the year have seen strong organic growth; the winning of further AUM mandates and the recent acquisitions have been performing well and to plan.
“The board believes the business is very well positioned to execute its consolidation of the PI and CN marketplace, with plenty of opportunities in the pipeline, which will deliver further growth in this financial year alongside organic growth.
“The recent appointment of Niccola Irwin to set up and lead the Critical Care and Case Management division within the group is an important step to providing a fully integrated and consolidated offering in the PI and CN sector. The board reiterates its confidence in the full year outturn and that it continues to trade in line with management expectations.”
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Mark Radcliffe
Online bathroom retailer, Victorian Plumbing, makes its AIM market debut today, with founder and chief executive, Mark Radcliffe, describing it as a “landmark day” for the Skelmersdale-based group.
He said: “Today is a landmark day in the history of Victorian Plumbing. The successful completion of our IPO and admission to AIM is an exciting next step on our growth journey.
“I would like to take this opportunity to thank our team for their support over the years. They have helped to build an incredibly strong, exciting and trusted brand together with a hard-working and innovative culture.
“We are pleased to welcome such a strong blue chip shareholder base to the register and look forward to working together on this next chapter in the company’s development.”
The group’s IPO is the biggest on AIM, valuing it at £850m. It employs more than 500 staff across seven locations in Skelmersdale, Manchester and Birmingham.
Victorian Plumbing held an estimated 14.2% of the bathroom market by revenue in 2020.
Revenues hit £208.7m and £26.2m adjusted EBITDA in the financial year ended September 30, 2020.
Growth trajectory has been maintained in the current financial year, delivering results of £140.7m revenue, and £20.1m adjusted EBITDA for the six months to the end of March 31, 2021.
Shares in its placing were priced at 262p per share with institutional and other investors. Trading opened this morning at 304p per share, rising to 311p just before 9am, before dropping back to 307p.
During the day the stock reached a high of 330p per share, and dipped to a low of 266p, before finishing at the close on 309.5p per share.
