James Cropper – debt refinancing, change of advisers, big moves point to strategic benefits, results due next week, shares at 385p looking good
- Mark Watson-Mitchell
- 1 minute ago
- 4 min read
Mark Watson-Mitchell - 07.07.2026
Yesterday the shares of James Cropper (LON:CRPR) again hit the 400p level that was forecast in this column last November, when they were just 330p.
Over the last six months or so, they have traded in a range from 260p to 410p.
Just a week ago they were around 350p, but that was before the Advanced Materials and Paper & Packaging specialist group announced that it had refinanced its debt facilities.
Yesterday it also announced that it had changed its Nomad and Broker from Shore Capital Markets to Singer Capital Markets.
Let us hope that the new broker will help the group to shine when it announces its Final Results for the year to end-March, due next week on Wednesday, 15th July.
Market expectations are that the group will more than treble its adjusted pre-tax profits to around £4.7m (£1.3m), on the back of increased revenues of £103.0m (£99.3m).
That will see its historic earnings coming out at some 45.4p (28.9p) per share.
The Business
James Cropper is a papermaking and advanced materials company based in Burneside, Kendal, Cumbria.
The company was founded in 1845 on the site at which operations are based today.
There were earlier mills on the same site, including a sickle mill and a fulling mill, which were bought in 1750 by John Wakefield, who built a woollen mill on the site in 1760 and converted the sickle mill for cotton in 1770.
In 1828 the mill was leased to Hudson and Forster who installed second-hand papermaking machines, and in 1845 James Cropper rented the premises.
Croppers have pioneered the recycling of disposable coffee cups and have also produced a range of recycled paper for the luxury packaging market.
When it floated in 1993, the James Cropper share price launched at 232p.
Today the group, with over 500 employees, has additional UK manufacturing sites in Crewe and Launceston as well as its US site in Schenectady.
It is recognised globally for its specialist capabilities in the design and manufacture of advanced materials and paper products.
The group leverages deep expertise in material science and longstanding partnerships with industry-leading businesses and brands to develop bespoke solutions that meet complex technical and aesthetic specifications.
It operates through two principal businesses - Advanced Materials and Paper & Packaging - and built upon 180 years of innovation, the group serves a diverse range of customers with high-performance solutions tailored to specialised applications.
The Advanced Materials business develops cutting-edge nonwoven materials and electrochemical coatings for sectors including aerospace, clean energy, and defence.
The Paper & Packaging business offers premium creative papers and bespoke moulded fibre packaging together with leading recycled-fibre capabilities and products, supporting the transition to a circular economy.
It serves various markets, including aerospace, automotive, batteries, consumer electronics, marine and others.
Its product portfolio is in use on commercial aircraft, delivering surface-finish solutions, improved processing, lightweighting efficiency, and more.
Full Year Trading Update
On Tuesday, 14th April, the group updated the market, reporting that its results for the year to 28th March, are expected to reach adjusted EBITDA £8.80m, exceeding market expectations by approximately 10% and representing over a 30% increase from the prior year's £6.67m.
Group revenue was projected at £103.0m, a 4% rise from FY25, driven by a low double-digit percentage increase in Advanced Materials, while Paper & Packaging revenue remained stable despite the loss of a major customer.
Net debt is expected to have improved significantly to £8.3m, well below market expectations, resulting in a net debt-to-EBITDA ratio below 1x.
The company stated that it was experiencing positive trading momentum into the new financial year and remains confident in its medium-term prospects, expecting continued growth in Advanced Materials and positive adjusted EBITDA from Paper & Packaging in FY27.
Management Comment
CEO David Stirling stated that:
"I am pleased to report a good performance in what remains a cautious and uncertain market environment.
We have made structured progress in stabilising the business, which is reflected in the robust EBITDA and cash generated in the year.
We remain confident in the medium-term outlook and are focused on maintaining a balanced approach, positioning the Group to benefit as conditions improve."
Debt Refinancing
Last Thursday, 2nd July, the group reported that it had successfully refinanced its debt facilities, securing a more flexible funding platform to support its strategic objectives.
The new arrangements include an invoice discounting facility of up to £15.0m for at least three years, enhancing working capital and liquidity management.
A £7.1m repayment on the UK bank loan will be made from existing cash and the new facility, with the remainder repaid in quarterly instalments until March 2030.
The maturity of the US bank loan has been extended by 12 months, deferring a $3.2m repayment to December 2027.
Additionally, the company stated that it will make a one-off £0.6m contribution to its defined benefit pension schemes, with future contributions reduced by £0.35m and the next actuarial valuation brought forward to March 2027.
These changes are expected to improve liquidity, financial flexibility, and reduce cash financing costs.
The Equity
There are some 9.55m shares in issue.
The larger holders include Mark Cropper (25.11%), Liontrust Investment Partners (13.94%), Unicorn Asset Management (3.33%), Estate of James Cropper (1.09%) and Jemima Cropper (1.09%).
Broker’s View
Analysts Akhil Patel and Rob Sanders, at Shore Capital Markets, last Thursday issued their latest note on the company, following the refinancing news.
For the year to end-March, they look for £103.0m (£99.3m) sales, with adjusted pre-tax profits of £4.7m (£1.3m), lifting earnings to 45.4p (28.9p) per share.
For this year they see £102.1m revenues, £4.7m profits, with earnings of 44.1p per share as something of a ‘standstill’ performance.
The 2028 year, they suggest, could show £108.5m turnover, £6.3m profits and 58.2p of earnings.
The analysts foresee 600p-800p in two years based on a conservative 6-8x FY28 EV/EBITDA valuation, in line with its peers.
My View
This stock is for patient investors who are prepared to sit out the next year and then look forward to the 2028 run.
The shares, now trading at around 385p, are well worth tucking away.
(Profile 18.07.25 @ 255p set a Target Price of 315p*)
(Profile 11.11.25 @ 300p set a Target Price of 375p*)
(Profile 17.11.25 @ 330p set a Target Price of 400p*)
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