Cropper (james) Share Discussion Threads

[capercaillie] 30/10/2008 20:13

Pulp prices collapse in Europe in October


BRUSSELS , (RISI) - Pulp prices have fallen significantly across Europe during October as demand remains weak and the dollar has strengthened against the euro. Most buyers were still holding negotiations as the month came to a close, in case the currency exchange rates moved further in their favor.

[capercaillie] 22/10/2008 07:25

Threat to mill puts nearly 400 jobs at risk

Helen Morris, printweek.com, 21 October 2008

Almost 400 jobs are at risk following paper manufacturing giant International Paper's announcement that it has entered into consultation with staff at its Inverurie mill in Scotland.

The Aberdeenshire-based plant is the global paper and packaging company's only non-integrated fine paper mill, and it produces 250,000 tonnes of uncoated freesheet paper annually.

It was announced today that a consultation process on strategic alternatives for the mill's future has begun.

The move, which is a further blow for the Scottish paper industry following the closure of Curtis Fine Papers earlier in the year, would see International Paper exit the UK paper manufacturing sector.

Tim Kelly, vice president and general manager of International Paper's European Papers business, said the company was looking to close the mill because it is "unprofitable and not financially viable".

The news follows the opening last month of a £6m expansion to Aberdeen Harbour's Waterloo yard to handle increased traffic in paper slurry for the Scottish paper industry.

[capercaillie] 05/8/2008 12:37

Ex-Curtis Fine Papers employees stage protest march

William Mitting, printweek.com, 04 August 2008

Ex-employees of Curtis Fine Papers, which went into administration at the end of last month, have marched in protest to save the180 jobs that have been cut at its Guardbridge mill in Scotland.

The march, which was organised by former managing director Keith Chapman with support from UK technical sales director Ken Thom, gathered at West Sands, St Andrews, and walked into the town to hear speeches from local politicians.

Chapman congratulated the workforce for their skills and effort in recent years to turn Curtis into a profit-making business. He said: "Our biggest asset is our loyal and dedicated workforce."

Iain Smith (Liberal Democrat MSP for North East Fife), Ted Brocklebank (Conservative MSP for Mid Scotland and Fife) and Claire Baker (Labour MSP for Mid Scotland and Fife) spoke to the gathered crowds and expressed their support.

Unite's regional officer Willie Wallace also attended the speeches and pledged the full support of the union.

Curtis shocked the industry by calling in the administrators on 24 July. The company had returned to profitability but failed after a deal to sell some of its land fell through.

However, it has emerged that as many as eight interested parties are vying to resurrect the business.

Curtis now awaits the outcome of discussions taking place over the next week to see if the 135-year-old fine paper mill can once again supply quality papers into its global market place.

[cockneyrebel] 30/7/2008 11:05

The company has just warned - might be worth shorting SMDS - similar costs.

CR

[capercaillie] 26/7/2008 20:29

Shock as Guardbridge paper mill closes

SHOCKWAVES reverberated through north east Fife yesterday (Thursday) following the sudden closure of one of the area's largest employers.
It is understood Curtis Fine Papers told employees at noon that the business was to close.

One stunned employee spoke of the shock of finding the mill was closing at lunchtime.

While rumours have been rife no-one expected the doors would be closing without warning.

The employee told the Citizen workers had planned a sit in on Thursday to try and persuade management to keep the doors open until it broke up for the summer holidays.

"I just left. I don't want to be there anymore. It's devastating. People have booked and paid for their holidays. I know two people who were getting married in the next few weeks.

"Next week would have been the dearest week in the year for the bosses - they must have been due to pay out about £½ million in holiday and overtime payments.

"We went in this morning as normal and all the machines were shut down.
"We were called to a meeting at 12.15 when we were told the place was closing down.

He added: "Some people are being kept on to dismantle everything and get the stock out as there must be about £2 million of stock still there.

"Staff being paid monthly have nothing and we were paid last week but that's it. I was due about £1200. I don't even know where the job centre is or how long it will be till we get what what we are due."
It is understood housing developers Barrats had pulled out of buyingground from the factory, and this had had a severe knock-on effect for the business.

The rising price of gas and the current credit crunch are also said to have played their part in the decision.

Employing more than 250 personnel, the workforce is predominantly local with over two-thirds living within a five-mile radius.

Although profitable during the 1990s it has experienced considerable financial difficulties in the last five years due partly to rapidly changing market conditions.

Curtis has a history of paper-making dating back more than 160 years.
The company was originally formed in 1837 at Dalmore Mill, near Edinburgh, and some 40 years later William Haig and two of his sons formed the Guardbridge Paper Company to find a more profitable use for their Seggie whisky distillery.

The mill went into production in 1874 and went from strength to strength, as did the village of Guardbridge, which grew with new housing and roads to attract and accommodate workers. Before the first world war the labour force reached over 400, reaching a peak of 620 in the late 1950s.

In 2004, the Dalmore Mill closed with the loss of 127 jobs in order to consolidate production at the Guardbridge site, and last January the company underwent a secondary management for an undisclosed sum.
No one from Curtis Fine Papers was available for comment but it is understood the company is now in the hands of receivers KPMG.

[capercaillie] 24/7/2008 22:08

Perhaps a reason for the price hike over last few days considering they are competitors -


24 July 2008
Paper Mill Cuts 180 Jobs

180 jobs have been axed in Fife.

Curtis Fine Paper, near St Andrews earlier confirmed it's ceasing production.

The company has had financial difficulties for some time, with a number of attempts to sell the firm failing.

Administrators KPMG were called into the site at 12.30pm to inform workers that the majority of them face redundancy.

The company has been trading for 135 years.

One worker told Kingdom FM News that the news has come as a complete shock, with no prior warning being given.

[jonwig] 16/7/2008 18:02

PUG - they seem to be getting the pension liabilities down (10m to 6m, by the looks of it) - though of course the current climate could see a reversal of that.

DBS is closed to new members - helps!

[pugugly] 16/7/2008 17:11

Acol:> Suggest you have a look at pension liabilities - From memeory they are a bit like Molins - A pension fund with massive liabilities restricting the business. A lot of pension funds hve seen their assets seriously damaged by the current downturn in the market.

[jonwig] 16/7/2008 17:07

Can't be many companies where the net current assets (£25.7m) exceed all liabilities (£22.4m), leaving still over £20m in non-current assets.

A small purchase here might sit idle for a while, but this looks an excellent opportunity.

[acol] 16/7/2008 16:49

45K sale at 75p - distressed sale if ever I saw one. Not a holder but tempted to get back in at these silly levels> When I sold at over 200p I made a mental note to buy back in if the share ever dropped to around 150 ish - but it keeps falling.....

[hybrasil] 04/7/2008 08:39

now at an all time low trading at about 1/2 net assets. Is that share price deserved?

[capercaillie] 27/6/2008 21:47

Looks like a long haul over the next 12 months with energy likely to be at high levels and difficulty in passing on increases.

Again very little coverage in the media, no profile, not helped by joining AIM.

Should look to cutting losses on shops.

TFP appears the best hope.

[garth] 24/6/2008 08:01

Eps down to 14p, but I reckon those are very respectable results considering they have seen an increase of £2m in fuel and pulp costs. Caution still in the outlook - but that is hardly surprising for the time being. Well done managment.

...................................

Date: Tuesday, 24 June 2008
James Cropper PLC
Preliminary Audited Results for the year ended 29 March 2008
Full year to Full year to
Change
29 March 2008 31 March 2007

* Turnover £72.7m £69.1m
+12%

* Group profit before tax
Prior to net IFRS pension
adjustments

After net IFRS pension

adjustments £2.0m £2.5m
-23%
£2.1m
-25%
£1.6m
* Earnings per share 14.0p 16.2p
-14%

* Dividend per share 7.3p 7.0p
+4%

* Gearing 23% 23%
-

* Technical Fibre Products ("TFP")
* Turnover up 12%
* Supply chain for key markets strengthened by two US acquisitions in year
* James Cropper Speciality Papers ("Speciality Papers")
* Turnover up 5%
* Energy costs up £0.6m; pulp costs up £1.3m
* James Cropper Converting ("Converting")
* Turnover up 6%

"Although sales growth was sustained across all four subsidiaries during the year,
maintaining margins proved to be difficult,
especially in our core paper-making business, which posted a good result against a background
of rapidly escalating energy and pulp costs.
The overall impact on the Group of currency exchange rate movements was broadly neutral.
Gearing remained low at 23%, in line with last
year".

"TFP's operating profit for the year was £1,426,000 compared to £2,053,000 in 2007, with
turnover improving overall by 12% on the
previous year to £10,125,000. TFP's performance in 2007 was exceptional by any measure being
driven by significant sales of very high margin
product in the final quarter of that year. Profit in 2008 was 83% higher than the level
achieved in 2006, despite further weakening of the
US$ and the acquisition of two new US based manufacturing companies".

"Speciality Papers reported an operating profit of £1,281,000 against £1,435,000 in the
previous year. Turnover was £48,342,000, up 5%
with volume growing by 4% over the year. Despite this significant growth in sales
profitability was adversely affected by upward pressure
from pulp and energy costs".

"In the medium to long term, the Board is confident in the Group's ability to exploit its
competitive positions in its respective niches
through the excellence of its products and customer service. This confidence is demonstrated
by the continued increase in the dividend.
Nonetheless, in light of the current adverse market conditions and high energy and pulp costs,
the Board believes it is realistic to expect
a challenging trading period over the short term".

[garth] 19/6/2008 07:59

Hybrasil,

I've been watching and waiting in the belief that they would hit 160p and, quite probably 140p (look at the long term chart)

This trading statement still hangs over them ahead of next weeks results and rising gas prices are in the news again this week. From memory, forecasts were/are around 16p eps. I see no reason in current markets why they should command a rating any higher than 10X (just look at DSY - currently on 5x!). The picture should be clearer next week, IMO. TFP is the real growth interest for me - the trading statement points to margin pressure there:

Date: Monday, 28 January 2008

IMMEDIATE RELEASE



James Cropper PLC
Trading Update



STATEMENT BY MR J A CROPPER, CHAIRMAN


In the Preliminary Statement issued on 19 June 2007 I highlighted the
exceptional nature of TFP's performance over the previous financial year and the
challenges faced in maintaining the momentum of profitable growth in the current
year. Whilst turnover growth has met expectations over the course of the current
financial year, the impact of a changing product mix has diluted margin, which
combined with the weakness of the US$ and the higher cost base resulting from
the strategic acquisition of two new US subsidiaries earlier in the year, means
that TFP's profit will be lower than last year. Turnover growth is expected to
remain strong in both established and emerging markets.

I referred in the Interim Statement issued on 21st November 2007 to the prospect
of rising cost of pulp and natural gas dampening the profitability of James
Cropper Speciality Papers ("JCSP") in the second half year. Since that Statement
the cost of Northern Softwood Bleached Kraft, the market benchmark grade, has
risen progressively to US$880/tonne. There is no sign that this upward
progression will cease in the near-term. In December the cost of natural gas
increased sharply towards 60 pence per therm. Market forecasters currently
project that this price level will be sustained over the last quarter of the
financial year. Thus if these market projections relating to pulp and natural
gas prove to be correct then JCSP's profit for the full financial year will be
below that of the previous year.

Management teams in each subsidiary are implementing actions to mitigate the
impact of the issues outlined above and to ensure that the businesses remain on
course to deliver on their strategic plans. However in view of these factors it
must concluded that the Group's profit for the full financial year will be
significantly below current market expectations.

[hybrasil] 18/6/2008 22:50

very buyable at this price - I would have thought

[garth] 29/4/2008 12:19

Property worth more than it is valued at, IMO. Forget the paper - looked at the advanced materials.....

[nobull] 29/4/2008 10:14

This is a stock I wouldn't be seen dead in. (I am asking for a friend who doesn't want to ask). Does anyone know what the property this company has is worth on an existing use basis and whether it would have a more valuable alternative use. Also how much life is there left in a business model of manufacturing paper in the UK. Is it the last one left? And out of curiosity for myself why don't they charge a decent level of depreciation on the property in the accounts? Is it that paper making is too unprofitable so they can't pay a decent amount of depreciation (the depreciation is charged on property at historic cost?). TIA.

[capercaillie] 31/3/2008 21:15

Credit Agricole add again

[capercaillie] 30/1/2008 21:36

The price is nearly back to its pre-announcement level. I get the feeling that something as afoot - only I don't know what?

[garth] 29/1/2008 06:21

bbd,

Perhaps someome wanted to off-load, they were approached and wished to provide an orderly exit in an illiquid share? Clearly they believe that longer term the shares represent good value at these prices. The business is cyclical - things will be bad for a bit, and then they improve. Underlying that cycle is a story of growth.

G.

[bigbigdave] 29/1/2008 06:16

Why the f were Directors buying a few days before a significantly below statement?

[stegrego] 28/1/2008 21:43

Significantly below expectations and it doesnt fall off a cliff (well does but obviously got a bungee rope attached!)

Most odd.

Still im going to use the pun anyway as its probably going to happen....


'Looks like another share thats come a Cropper' :)

[garth] 28/1/2008 21:00

Good rebound from 190p.....