The paper and advanced materials group said yesterday (27 July) that while demand across all three divisions is ahead of the prior-year quarter, its Technical Fibre Products (TFP) wing has started the year with very strong sales and has seen particularly high demand across TFP Hydrogen.
The Paper division has secured new luxury packaging contracts while its Colourform business has also continued to win new contracts across the premium wine, spirits, and beauty markets.
Profits for the group are currently tracking “ahead of plan and significantly ahead of the prior-year quarter, with management expectations for FY23 presently unchanged”.
The Paper division, meanwhile, has started the year profitably, however it is the TFP division that the company said is delivering “the majority of the benefit” to the group.
The Paper division is extending its embossing and varnishing capacity in Q3 this year to provide additional capability to meet demand in the luxury packaging market. Coating capacity for TFP Hydrogen will also be extended, with an additional line operational in the US by the end of Q2.
The group said it also remains committed to its ESG Committee goals. In Q1 the company completed its Decarbonisation Study, “which indicates that the technical solutions identified in the prior year’s feasibility study, can be scaled up”.
The group is now moving into the engineering analysis stage and expects this to be completed as planned during the current financial year.
James Cropper chairman Mark Cropper said: “We are pleased to report an excellent start to the financial year, with every division within the group outperforming the same period last year.
“TFP has made a very strong start to the year which has positively impacted profits. With the new hydrogen coating line on schedule to be operational by the end of Q2, the division is on track to deliver another record year.
“The Paper division, which was impacted by the unprecedented high energy costs in Q4 last year, traded profitably in Q1, demonstrating the pricing changes implemented are working together with the strategy to improve the division’s portfolio.
“While we are always mindful of the energy and raw material headwinds, the strong start to the year and new embossing and varnishing capacity, which is on track to be completed and commissioned in H2, will support our ability to meet the growing demand and continue with this pleasing progress.
“The Colourform division continues to maintain a strong pipeline of sales and the division’s eye-catching and eco-friendly packaging designs have received further international accolades, the latest of which is the European Dieline design award.
“With the market returning to more normalised growth conditions, the group’s prospects remain very attractive, and we look forward to making further progress in the year ahead.”
James Cropper’s Annual General Meeting is also being held today at the Bryce Institute, Burneside, Cumbria.
The group's share price rose by nearly 8% to 1,020p on the news (52-week high: 1,650p, low: 825p).
