James Cropper reports 1H profit before tax of GBP 1 million ($1.6 million)

Nov 13, 2012. /Lesprom Network/. In the first six months James Cropper recorded a profit before tax (but after IAS19 pension adjustment) of GBP 1,029,000 ($1.6 million) compared with GBP 1,386,000 ($2.2 million) for the same period last year, as the company said in a press release received by Lesprom Network. Prior to the IAS19 pension adjustment, profit before tax was GBP 1,185,000 ($1.9 million), just ahead of last year. Group turnover was GBP 39 million ($62 million) against GBP 39.6 million ($63 million) for the comparable period, a decrease of 1%. The board has decided to maintain the interim dividend at 2.2p pence per share. Mark Cropper, Chairman, said: "I anticipate that we will make further gains in Speciality Papers' home market in the second half to offset reduced sales into continental Europe. Recent investments and the completion of the restructuring process will also impact favourably on the profitability of Speciality Papers from the beginning of the next financial year. "The Government's conditional decision to provide support from the Regional Growth Fund for our proposed steam raising plant is great news for the Group. Subject to the Government's due diligence criteria being satisfied, an agreed grant offer of GBP 3.1 million ($5 million) is expected early in the new financial year. The plant, once operational, would reduce our energy related costs by an estimated GBP 1 million ($1.6 million) per annum and our CO2 emissions by at least 10%. "Despite the troubled economic climate it is very clear to me that I can be confident that there are many opportunities to build upon our global strengths and thus make James Cropper PLC a more profitable enterprise in the future. The Board expects the Company's full year trading results to be in line with market expectations." Technical Fibre Products division opened the year strongly, most notably in the Aerospace, Defence and Energy sectors. Overall sales were up 12% on the comparable period last year with sales into the USA up 19%. In Speciality Papers total sales in the opening half were down 7% on the comparable period. Export sales value declined by 17% whilst UK sales were in line with last year. Overall volume was down 7% with export volumes down 15% and UK volumes down 3%. The economic uncertainty, which led to the loss of confidence amongst customers in many export paper markets in the second half of last year, shows no immediate sign of lifting. The cost of Northern Bleached Softwood Kraft ("NBSK") pulp opened at $840 per tonne and fell to $770 per tonne at the close of the period but is now on a rising trend. Energy costs were in line with the same period last year and are now also on a rising trend. Converting traded ahead of the first half of last year. Sales were up 21% primarily due to a recovery in sales into the lower margin Sign & Display sector. James Cropper plc is a specialist paper and advanced materials group. The Group comprises three divisions: Speciality Papers, Technical Fibre Products, Converting.