Cropper(James) PLC Year end and COVID 19 trading update (5604L)
01 Mayo 2020 - 1:00AM
UK Regulatory
TIDMCRPR
RNS Number : 5604L
Cropper(James) PLC
01 May 2020
1 May 2020
James Cropper plc
("James Cropper" or the "Company")
Year end and COVID 19 trading update
Further to its announcement of 24(th) March, James Cropper is
pleased to provide an update on the expected outturn for the year
to 28(th) March 2020 just ended and on our expectations for trading
during the current year.
Year ended 28 March 2020
As a result of delivering on the growth strategies within each
division, the Group produced a strong performance last year with
positive growth in both revenue and profits. Market penetration and
expansion has been achieved across the divisions. Adjusted pre-tax
profits (excluding IAS 19 impact) are expected to be well ahead of
market expectations for that period and in excess of GBP6m.
Current trading
During the current COVID 19 pandemic, the Company's priorities
are the health and well-being of all employees globally, supporting
our customers and managing our cash resources.
Whilst the Company was on track to continue growing, the impact
from COVID 19 will have a negative effect on product demand in each
of our divisions:
-- Technical Fibre Products is likely to see a downturn as a
result of a decline in the aerospace market; however, growth is
continuing in clean technology markets such as fuel cell and wind
energy. As a result, we expect demand will not be so significantly
affected.
-- James Cropper Paper is likely to be the most affected of our
divisions in the short term, as end markets have been directly
impacted by the global lockdown. As a niche speciality provider, we
expect demand and growth to return to normal levels after markets
settle post-pandemic.
-- Despite the impact from COVID-19, we expect Colourform to
grow year-on-year, however not to the levels anticipated
initially.
Given the high levels of uncertainty, we are not reasonably able
to forecast the impact on our operations and financial performance
for the current fiscal year. The environment is subject to rapid
change. Nevertheless, at present we are expecting that the course
of the financial year will be as follows: the first quarter to June
2020 to incur a large negative impact and it will be loss making.
During this period, the Company is making use of the Government's
Coronavirus Job Retention Scheme to furlough more than 50% of staff
in the UK operations. In the next two quarters, to December 2020,
we expect still to see a negative effect and to continue to be
loss-making, albeit with some recovery evident. For the final
quarter to March 2021, we expect progressive recovery towards a
more normalised situation and the Company anticipates being back
into profitability. We continue to monitor new information as it
becomes available and progress our planning accordingly.
Cash resources and future capex
The business is now, we believe, in an 18-24 month recovery
period. The Company expects a hit to cash during 2020-2021over the
period of the COVID-19 pandemic and as we return to more normal
trading conditions. We have acted promptly to conserve cash and to
implement immediate savings to shore up reserves, including
announcing that the Board has decided not to pay a final dividend
in respect of the year ending 28 March 2020. The Company presently
has liquidity of over GBP12 million including cash and available
overdraft facilities which, when taking into account the cash
management actions being implemented, is expected to be sufficient
to weather the COVID-19 crisis and the return to more normal
trading conditions.
The Board, nevertheless, is also considering the funding of its
capital expenditure plans post the COVID-19 crisis, which support
the future growth of the business. Accordingly, it is in the early
stages of discussions with its bank debt providers on potential
future facilities.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN
ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 ("MAR"). UPON
THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS
NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN
Enquiries:
James Cropper PLC (AIM: Shore Capital
CRPR) Robert Finlay, Henry Willcocks
Phil Wild, CEO Anita Ghanekar, John More
Isabelle Maddock, CFO Tel: + 44 (0) 207 408 4090
Tel: +44 (0) 1539 722002
www.jamescropper.com
ENDS
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTFLFEESRIIVII
(END) Dow Jones Newswires
May 01, 2020 02:00 ET (06:00 GMT)
Cropper (james) (LSE:CRPR)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Cropper (james) (LSE:CRPR)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024