- James Cropper makes the Royal British Legion’s Remembrance poppies
James Cropper shares slipped on Monday after the group said a major customer will no longer source certain ranges from its paper and packaging division.
The Cumbrian firm, which makes the Royal British Legion’s Remembrance poppies, said the decision comes after the customer bought around half as many of these products in the first quarter of the financial year.
Despite this, James Cropper noted trading at its paper and packaging business was both ahead of the equivalent period last year and board forecasts.
It also expects the division’s adjusted earnings before nasties to enjoy a ‘significant improvement’ this year.
At the same time, the firm forecasts ‘significant growth’ in earnings at its advanced materials arm, alongside a single-digit percentage rise in revenue, which increased by 10 per cent in the first quarter.
James Cropper’s trading update follows the launch of a revised strategy by the group on 18 June at a capital markets event.
Cutting orders: James Cropper has said a major customer will no longer source particular coloured paper ranges from its paper and packaging division
For its paper and packaging segment, the company is aiming for ‘positive divisional returns’ through enhancing operations, while for its advanced materials arm, the business said it was focused on ‘strengthening core customer relationships’.
David Stirling, chief executive of James Cropper, said: ‘While we are disappointed by the customer’s unexpected decision, the board is encouraged by early progress delivered by the strategy outlined at the company’s capital markets event.’
He added: ‘Performance in the paper and packaging business is improving and is expected to continue to do so, as it is for the overall group.’
Founded in 1845 near Kendal in the village of Burneside, where its headquarters are still based, James Cropper was one of the first paper mills to manufacture coloured paper from synthetic dyes.
In the late 1970s, it invented a biodegradable paper alternative to the fabric used in the Royal British Legion’s red poppies.
The firm helped pioneer the recycling of disposable coffee cups with its CupCycling technology, which removes the plastic lining from a cup and converts the remaining material back into paper.
James Cropper claims its recycling plant has sufficient capacity to upcycle about 500 million cups per year, equivalent to 20 per cent of all the paper coffee cups discarded annually in the UK.
James Cropper shares were 1.1 per cent lower at 217.5p on Monday morning, taking their losses to around 30 per cent over the past year.
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .