James Cropper FY pretax falls 23 pct

Tag : paper fibre

(Company corrected turnover percentage rise to 5 percent, from 12as originally transmitted. Corrected statement follows in full:)
LONDON (Thomson Financial) - Paper maker James Cropper Plc. posteda 23 percent drop in full-year pretax profit, as higher energy andpulp costs offset a 5 percent rise in turnover, adding it expects achallenging trading period in the short term.
"In the medium to long term, the board is confident in thegroup's ability to exploit its competitive positions...," thecompany added.
It said this confidence is reflected in the hike in dividend. JamesCropper declared a final dividend of 5.1 pence, lifting the total 4percent to 7.3 pence.
For the year to March 29, 2008, the company's pretax profit fell to2.0 million pounds from 2.5 million while turnover rose to 72.7million from 69.1 million. Prices of raw materials and consumablesused rose to 32.70 million pounds from 30.43 million while energycosts rose to 3.53 million from 2.83 million pounds.
About its subsidiaries, the company said Speciality Papersprofitability in the current year could be significantly less thanthat achieved in the year under review "given theuncertainties surrounding the general economic down turn andcontinued high energy and pulp costs". The outlook forTechnical Fibre Products profit growth is encouraging, JamesCropper added.
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