UK's James Cropper H1 revenue rises 18%, dividend reinstated
Overview
UK advanced materials and packaging group's H1 revenue rose 18% year-on-year
Adjusted EBITDA for H1 nearly doubled, reflecting improved profitability and cost management
Company reinstated interim dividend amid strong trading and improved balance sheet
Outlook
James Cropper expects full-year revenue to grow mid-single-digit percentage over FY26
Company sees FY27 adj EBITDA at £10.3-£11.3 mln, 15-25% above FY26
Advanced Materials revenue and adj EBITDA in H2 FY27 expected similar to H1 FY27
Result Drivers
PAPER & PACKAGING GROWTH - Strong growth in added value segments, seasonal factors, and a one-off inventory build by a major customer drove revenue increase
OPERATIONAL IMPROVEMENT - Cost reductions and streamlined operations in Paper & Packaging contributed to improved profitability
ADVANCED MATERIALS MIX - Growth in established markets offset by expected decline in Hydrogen Coatings
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | GBP 61.20 mln | ||
H1 Adjusted EBITDA | GBP 7.8 mln |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the paper products peer group is "buy"
Wall Street's median 12-month price target for James Cropper PLC is GBp890.00, about 6% above its November 10 closing price of GBp840.00
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
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Nov 10 - Belgium's Agfa-Gevaert Q3 revenue flat, adjusted EBITDA drops on volume declines
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)