Cropper(James) PLC COVID 19 update (4347H)
24 Marzo 2020 - 09:57AM
UK Regulatory
TIDMCRPR
RNS Number : 4347H
Cropper(James) PLC
24 March 2020
24 March 2020
James Cropper plc
("James Cropper" or the "Company")
COVID 19 update
Given the rapidly changing developments regarding COVID 19,
James Cropper issues this update.
Our approach to COVID 19
Our guiding principles on how we are responding to COVID 19 are
to:
-- protect the health and wellbeing of our employees and their families;
-- support our customers; and
-- reduce costs and conserve cash to increase our financial resilience
Following the governments' lockdown announcement on 23(rd)
March, James Cropper continues to manufacture in all of its
locations globally. We have, however, enabled as many people as
possible to work from home. We will continue to follow developments
closely and will take further action as appropriate.
Financial priorities
As the situation has continued to develop with increasing
uncertainty over its impact and duration, our priorities have been
to understand better the potential impact on the Company's
financial position by stress testing a range of scenarios and to
take prompt action to preserve the Company's liquidity. These
measures have included, but are not limited to, putting capital
expenditure on hold, a hiring freeze and reducing discretionary
spend. To provide maximum flexibility, the Company has fully drawn
down on its available bank facilities and expects to have
approximately GBP10 million in liquid cash resources at the year
end, 28(th) March 2020.
Current trading
To date we have not experienced a downturn in demand as a result
of COVID 19 and, in respect of the year ending 28 March 2020, we
expect to meet market expectations. However, as central governments
take further action to contain and delay the spread of the virus,
we expect that demand for packaging materials will reduce overall
and this would affect our Packaging and Colourform divisions,
albeit we foresee an increase in demand for packaging relating to
the online retail segment. As regards our TFP division, our current
focus is on solving logistical challenges imposed by reducing
global airfreight capacity. TFP products are specified into
customer programmes, therefore sales are aligned to these markets
such as aerospace. These programmes typically have long lives and
relatively stable production rates but are controlled by end
manufacturers managing sometimes complex supply chains.
Dividends
Given the rising level of uncertainty as to how the situation
will develop, alongside the other measures we are taking to
preserve the Company's cash position, the Board has decided that it
would not be prudent to pay a final dividend in respect of the year
ending 28 March 2020. We will review the position as regards future
dividends later in the year once the outlook becomes clearer. We
recognize that this is a significant decision, but the Board
believes that it is an appropriate and prudent measure to take at
this point as we seek to preserve the Company's financial position
through these most uncertain times.
Outlook
While the challenges facing our business are unprecedented, our
primary concern remains the welfare of our employees, their
families and the local communities in which we work.
We have a strong and diversified business and we are taking
immediate measures to contain our costs and conserve cash to build
resilience.
However, given the continued uncertainty, we do not believe it
is possible to retain the Company's 2021 guidance. We will continue
to monitor the situation closely and provide further updates as
necessary.
Enquiries:
James Cropper PLC (AIM: CRPR) Shore Capital
Isabelle Maddock, Group Finance Robert Finlay, Henry Willcocks
Director Anita Ghanekar, John More
Jim Aldridge, Company Secretary Tel: + 44 (0) 207 408 4090
Tel: +44 (0) 1539 722002
www.jamescropper.com
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END
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March 24, 2020 11:57 ET (15:57 GMT)
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