Full Year Trading Update

James Cropper plc (AIM: CRPR), the Advanced Materials and Paper & Packaging group, is pleased to announce a trading update for the financial year ended 28 March 2026 ("FY26").

FY26 Results

Subject to completion of the external audit, following positive trading momentum into the year-end, the Board expects to report FY26 results as follows:

• Adjusted EBITDA1 of £8.8m, approximately 10% ahead of market expectations and more than 30% ahead of the prior year (FY25: £6.67m):

o Advanced Materials delivered high single-digit percentage adjusted EBITDA growth, with increased investment in operational costs to support medium-term growth.

o Paper & Packaging saw significantly reduced EBITDA losses for the full year, with the second six months of the year delivering an EBITDA profit.

Group revenue of £103m, approximately 4% higher than FY25:

o Low double-digit percentage increase in Advanced Materials.

o Paper & Packaging revenue broadly in line with FY25, despite the previously reported (July 2025) loss of a significant merchant customer.

• Net debt at the period end of £8.3m (FY25: £12.9m), significantly better than market expectations, reflecting the Group's continued focus on cash and working capital management.
• Net debt to EBITDA ratio2 improved to below 1x adjusted EBITDA (FY25 1.9x).

Current Trading

• Trading momentum into the new financial year has been positive, with the Group's strategy and operational improvement programme continuing to track in line with the Board's strategic plan.
• The Board continues to monitor the evolving geopolitical situation in the Middle East. While the ultimate impact on markets and input costs remains uncertain, the Group is actively managing its position through hedging, pricing actions and procurement discipline.

Outlook

• Overall, the Board remains confident in the medium-term prospects of both divisions, underpinned by disciplined execution of the Group's strategy and continued focus on operational delivery.
• In Advanced Materials, the Board reaffirms its medium-term expectation of underlying double-digit growth; the Group expects growth in the current year to be linked to customer demand patterns and broader market conditions.
• In Paper & Packaging, the Board remains confident in delivering continued improvements in performance, with an expectation of delivering positive adjusted EBITDA across FY27.

The Company expects to announce its audited FY26 results in July 2026.

David Stirling, Chief Executive Officer, said: "I am pleased to report a good performance in what remains a cautious and uncertain market environment. We have made structured progress in stabilising the business, which is reflected in the robust EBITDA and cash generated in the year. We remain confident in the medium-term outlook and are focused on maintaining a balanced approach, positioning the Group to benefit as conditions improve."

Notes

1EBITDA refers to profit before interest, tax, depreciation and amortisation. Adjusted EBITDA is EBITDA prior to exceptional items and the impact of IAS 19 in respect of the Group's defined benefit pension scheme.

2Net debt at period end divided by Adjusted EBITDA for the previous 12-month period.