James Cropper reports record revenue but profit hit by higher pulp prices
Source - SMW
Paper products firm James Cropper reported record annual revenue of £101m but saw pre-tax profit fall from £4.5m to £2.6m thanks to higher pulp prices.
The company kept its dividend unchanged at 13.5p. Mark Cropper, chairman, commented: 'The strength of the group remains strong with record revenues, product mix improvements, investment on the increase and sound EBITDA levels providing clear headroom against our covenants.
'For the second year in succession pulp prices have outstripped market expectations, increasing cost pressures on our paper business by over £6.5m over two years.
'I remain confident that we are deploying and evolving the right strategies in this regard and this will ensure sustained - and sustainable - growth for the long term.'