Cropper(James) PLC
2 August 2000
James Cropper plc
Annual General Meeting
At today's (2 August 2000) Annual General Meeting, Chairman Mr James Cropper
said:
'The Group's three businesses have traded profitably in the opening quarter.'
'As I forecast in my annual review, margins in Papermaking are under
considerable pressure from the relentless increase in the price of pulp
combined with the difficulty of passing on such increases in paper prices in
a low inflationary climate.'
'It is hoped that the benchmark price of northern bleached softwood has
reached its peak at the current price of $710 per tonne, up nearly 60% from a
year ago. The Division has also been affected by lower activity than normal
for the time of year and an unexpected steep hike in gas prices which are
normally at a low point in Summer months.'
'Although the first quarter started in line with budget it is expected that
for the rest of the year profits in the Papermaking Division will be
adversely affected by higher pulp and fuel prices. The Division's full year
profits must be expected to be lower than last year.'
'The Converting Division had a good opening quarter and is now entering a
traditional quiet period before the expected pick up in the Autumn.'
'Technical Fibre Products Limited continues to increase its sales profitably
and benefits are starting to accrue from the recent agreement with Johnson
Matthey. Both organisations are now working closely together to develop
commercially viable fuel cell technology. Technofire 2000, our branded
passive fire protection product, has recently passed a stringent series of
fire door tests in the USA which gives us confidence that this will lead to
substantial sales for this product in the future.'
'Cashflow continues to be positive and borrowings are at a historic low
level. The strong balance sheet and developments in Technical Fibre Products
gives us confidence in the future.'
Enquiries:
James Cropper, Chairman
John Denman, Finance Director Alan Cooke
James Cropper PLC Citigate Dewe Rogerson
Tel: 01539 722 002 Tel: 0121 631 2299
www.cropper.com