Paper group delivers impressive annual results, despite rising energy costs
Kendal advanced materials and paper products group, James Cropper, said it has achieved its aim of emerging stronger from the COVID-19 pandemic after unveiling strong annual results today.
The AIM-listed Lake District business reported a rise in sales for the year to March 26, 2022, of 33%, at £104.9m, compared with £78.8m the previous year. Pre-tax profits jumped 62% from £1.7m to £2.8m.
The 175-year-old company has reinstated a dividend, recommending a total payout for shareholders of 10p per share, after postponing a dividend in 2021. Net borrowings stood at £12.6m, up from £7.5m.
Growth was achieved in all divisions
Revenues were higher than pre-pandemic levels, with growth in all divisions, and TFP Hydrogen performing better than expectations, driving up revenues by 27%.
The Colourform operation achieved a positive EBITDA and 19% revenue growth.
Paper was impacted with substantial energy costs, showing a 37% revenue growth, but a loss before tax. In March this year the company warned that escalating energy costs would be a drag on its performance, impacted by a rise in wholesale gas prices during its fourth quarter period.
The company has a new loan facility of £25m under UK Export Finance to support its sustainable strategic growth plans. Its investment expenditure doubled to £6.7m, to support growth plans.
Two new non-executive directors have been appointed to strengthen the group board, and the appointment of a managing director at TFP has been completed.
Chairman, Mark Cropper, said: “The green agenda represents a significant growth opportunity for all our divisions.
“Looking forward the outlook remains positive across the group.”
“Our mantra since the earliest days of the COVID crisis has been to ’emerge stronger’ and I am confident that this has truly been the case.”
Chief executive, Phil Wild, said: “I am pleased to report our financial results for the period, which yet again underline the continued resilience of the group as we successfully navigated two unprecedented events – the end of the COVID pandemic, which saw resource and supply chain challenges, and the Ukraine War, which sparked an energy crisis and has compounded global inflation.”
The group employs more than 650 full-time staff across four global manufacturing locations and has an operational reach to in excess of 60 countries.
