Higher costs squeeze earnings at James Cropper
CUMBRIAN paper manufacturer James Cropper has seen sales grow but earnings were hit by the cost of raw materials, currency fluctuations and restructuring costs.
Turnover in the year to the end of March was up 7% to £84.5m, while pre-tax profits rose 5% to £1.3m.
But the Kendal-based group said trading profits were flat at £2.5m.
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UK sales rose 6% and export sales were up 7% with sales to the US rising by 15%. Sales into continental Europe fell by 2%.
Chairman Mark Cropper said: “The group made a number of significant investments across all aspects of its businesses during the year and whilst these combined with higher input costs to impact on profitability in 2013/14 I am confident that they provide a stronger platform to future growth.
“It was inevitable that as we succeeded in growing sales in the USA our exposure to the US dollar would increase. We will be taking further measures in the coming year to create a natural hedge by purchasing more raw materials and equipment in dollars.”
