James Cropper downgrades FY pre-tax profit guidance

Advanced materials and paper products group James Cropper downgraded full-year profits guidance on Wednesday as a result of the impact of worldwide wholesale gas price rises.

James Cropper stated it experienced "strong demand" throughout the year and across all divisions, with over 30% sales growth year-to-date - ahead of previous market expectations.

However, due to wholesale gas price increases impacting the AIM-listed group's fourth-quarter performance and the profitability of its paper division, Cropper said full-year pre-tax profit expectations had been downgraded to £3.5m from £4.9m.

"While the situation in Ukraine has resulted in uncertainty concerning the paper division's input costs in the short term, the long-term opportunity for the group remains positive, and we are encouraged by our ability to flex pricing to respond to rising input costs," said Cropper.

"Building on a strong track record of growth, the year is expected to deliver a new sales high across the group. We continue to maintain a strong financial position, with transformation programmes well in advance to transition away from natural gas across all group divisions."

As of 0935 GMT, Cropper shares were down 8.16% at 1,125.0p.