The Cumbrian papermaker and advanced materials group posted sales of £49.9m in the six months to 30 September.

That figure was down 11.7% year-on-year, but up 7% on the six months to 30 March 2024.

Adjusted operating profit was £439,000, down £2.6m on H1 2023.

The pre-tax loss was £606,000, compared with a pre-tax profit of £2.4m the prior year.

James Cropper said that its Paper & Packaging division had “recovered well” compared to the previous six months trading.

Sales at the wing were down 11.5% year-on-year at £33.2m.

However, luxury packaging was hit by the slowdown in China and “reduced demand being experienced by some luxury brand customers”.

Sales of its Colourform moulded fibre products were also hit, particularly due to ongoing weakness for luxe packs for wines and spirits. Demand for photographic board also weakened.

James Cropper said it was accelerating its volume-based business to counter this, but this would have an impact on margins.

The group also said it was continuing to make operational improvements, including “building agility through operator cross-training, waste reduction activities and improved production scheduling”.

Advanced Materials posted sales down nearly 12% at £16.7m, with the hydrogen fuel cell sector “subdued” due to uncertainty over future green tech pathways.

Results for the full year ending March 2025 are now expected to be below the board's prior expectations, with sales and adjusted profit before tax likely to be broadly at the same level as the FY24 reported results. 

Outgoing CEO Steve Adams commented: “Although trading was challenging in the first half of the financial year, the group was able to achieve sequential growth in revenue and profit with clear signs of recovery across most segments of the business.

“The fact that our direct customer base remains stable and intact, and that we are seeing positive trends in various end markets, gives us confidence that the Group is positioned for growth once end market conditions stabilise and improve.”

New CEO David Stirling will join the business in January and will succeed Adams following a short handover period.

James Cropper’s share price fell from 237.00p to 190.00p on the news but has since recovered to 224.00p. However, the shares have lost more than 70% of their value this year (52-week high: 828.00p, low: 180.00p).