James Cropper shares rose on Wednesday after the Advanced Materials and Paper & Packaging group announced that recent trading had exceeded expectations across both core divisions.
Shares rose 20% in early trading on Wednesday as the group said it was targeting ‘significant growth in Adjusted EBITDA against FY25’.
The company produce paper and packaging as well as advanced materials such as composites for a broad range of industries, including automotive and defence. It also provides materials for batteries and electrolysers.
The group’s financial position improved during the 18-week period ended August 2, 2025, which also helped boost sentiment. Net debt fell to £10.3m from £12.9m at the end of the previous financial year in March 2025 – a reduction of £2.6m. This represents a £5.0m improvement compared to the same period last year.
The debt reduction was supported by disciplined cash management and £1.2m in net receipts from selling non-core assets. This aligns with the capital allocation policy outlined by the board at its Capital Markets Event in June.
“I am pleased we are making progress on our three key objectives: sales growth in Advanced Materials, improving profitability in Paper & Packaging and disciplined cash management to embed leverage below 2x EBITDA,” said David Stirling, CEO.
“The business is becoming more agile and streamlined to deliver our objectives, which will create long-term value for shareholders as we make progress against our recently introduced strategy.”
After a torrid 2024, shares are 30% higher in 2025 and investors will hope today’s update builds a foundation for further recovery.