Cropper(James) PLC - Year end and COVID 19 trading update
("James Cropper" or the "Company")
Year end and COVID 19 trading update
Further to its announcement of 24th March, James Cropper is pleased to provide an update on the expected outturn for the year to 28th
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
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:
· 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
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
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
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This information is provided by RNS, the news service of the
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Market Cap: £90.77 m
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