James Cropper loses 'significant merchant customer'
Paper and packaging business James Cropper PLC warned on Monday that it had received notice that "a significant merchant customer" will no longer source certain coloured paper ranges from it, effective immediately.
James Cropper said this decision followed a reduction of approximately 50% in sales of these products to that customer in Q1. However, James Cropper said that with a revised strategy and operating plan already established in its paper and packaging division, provisional Q1 results showed that the unit would be trading ahead of both expectations and prior-year comparators if not for the loss of the merchant customer.
The London-listed firm said its Q1 performance was driven by business with other customers and efficiency savings pursuant to its revised operating approach. It now expects the paper and packaging business to report "a significant improvement" in adjusted underlying earnings in FY26. Revenues in its advanced materials business grew by approximately 10% in Q1.
James Cropper added that overall, it was confident that it will deliver "significant growth" in adjusted EBITDA profitability in FY26 against FY25.
Chief executive David Stirling 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 on 18 June 2025. Performance in the paper and packaging business is improving and is expected to continue to do so, as it is for the overall group.
"James Cropper has a heritage of 180 years as a papermaker and a leading reputation in the manufacture and supply of coloured papers for over 150 years to both UK and international markets, and remains committed to this segment. The company will continue to supply such coloured paper products through existing and alternative channels."
As of 0940 BST, James Cropper shares were down 5.0% at 209.0p.
Reporting by Iain Gilbert at Sharecast.com
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