28 July 2021                                                                                   

James Cropper PLC ("James Cropper", "Group" or the "Company")

AGM Statement and Trading Update

"I am pleased to report that the Group has enjoyed a promising start to the current financial year and has traded profitably in the first quarter and in line with management expectations.

Group sales for the first quarter are up 50% on the prior-year quarter, as the Group continues to see the impact of the pandemic shrink and demand is returning to pre-pandemic levels. The Paper division sales are up 70% on the same period in the previous year. All Paper division end markets have seen recovery from the impact of the pandemic, as the division continues to focus on higher-value niche markets, particularly luxury packaging. Pulp prices have risen in the quarter, though the increase in costs has been softened by the pulp hedging arrangements put in place by the Company in the last financial year.

TFP is benefiting from a continued focus on the green energy markets such as wind and hydrogen, plus defence, industrial, medical and aerospace markets, with sales up 23% on the prior-year quarter. The new production line providing an additional 50% capacity is now installed and will commence production later this summer. TFP Hydrogen has had a slower start to the year but has a healthy order book that is expected to continue to build over the year.

The Colourform division sales are up 56% on the prior-year quarter following the commercialisation of a number of pipeline opportunities within the premium and luxury beauty, wine and spirits market.

Overall, the outlook for the Group remains positive and in line with management expectations. TFP will start to utilise the additional manufacturing capacity to accelerate sales and will benefit from the recent acquisition.  Paper is benefitting from the restructure last year, which removed cost and added customer-focused resources. It will continue to focus on high-value segments and provide increased independence from pulp price with the expanded use of recycled content such as CupCycling^TM. Colourform will be focused on accelerating the commercialisation of the sales opportunity pipeline.   I am pleased with the progress we are making, as the group's trading strengthens following the impact of the pandemic, and I am confident the Group will perform in line with management expectations for the year."

Mark Cropper

Chairman