Cropper (james) Share Discussion Threads

[arthur_lame_stocks] 09/6/2022 17:05

I agree it doesn't look cheap as a whole, but the divisional breakdown when it comes should give a clearer picture of the value in these. I expect TFP to make hefty profits but to be dragged down by losses in the growing Colourform and paper manufacturing.

[callumross] 09/6/2022 16:58

Thinking like you Arthur but just feel it is a fairly weighty valuation with a p/e of 30 plus in such uncertain times.

[arthur_lame_stocks] 09/6/2022 16:10

I'm giving some thought to buying back in. TFP has to be worth £100m on its own surely?

I wish they would sell the paper manufacturing and concentrate on the growth areas though, I guess the family must be emotionally attached to it.

[garth] 23/3/2022 10:11

Callum,

On one level that is a reasonable observation, but misleading. "Directors and wives" (plural) did not sell in January. One director and wife sold. Two other directors purchased. The balance of sales outweighed buys - although the remuneration committee also purchased.

There was buying and selling (both) in November and in September too.

Just for balance.

Best wishes,

G.

[callumross] 23/3/2022 09:39

"I am worried that the spiralling energy cost which is a big cost for them will push them into a profit warning soon" Very prescient comments Arthur. Now we can see why the directors and wives were selling in January.

[garth] 23/3/2022 07:47

Positive growth continuing but eye watering energy increases hitting paper margins:

"The average wholesale gas price has moved from 50p/therm to over 250p/therm, peaking at 800p/therm in Q4"

Longer term prospects continue to look great, IMO.

G.

[garth] 09/3/2022 10:24

I think its a reasonable concern Arthur - it has certainly proven to be a problem at certain times over the years.

G.

[arthur_lame_stocks] 09/3/2022 10:05

I sold these a little while ago as I am worried that the spiraling energy cost which is a big cost for them will push them into a profit warning soon.

I will keep an eye on them though as I like their prospects overall.

[km18] 17/12/2021 13:48

James Cropper Plc posted an impressive set of HY results a few weeks ago as the company rebounds from COVID. Revenues were up 46% to £49.8m, profit before tax was up to £1.9m from no profit, and EPS was up to 16.2p from loss of 0.2p. Obviously business has rebounded from shutdowns to pre-Pandemic levels. But so too has the share price which is back at early-2020 levels. Valuation isn’t particularly helpful, forward PE ratio at around 34 looks a little rich. Balance sheet is reasonably healthy, but share price lacks momentum. Not a bad company, but a share to monitor for the time being....from WealthOracleAM

[garth] 09/11/2021 10:11

Agreed Arthur. Multiple is high. But TFP's existing buisness prospects have been enhanced following the purchase of PV3. That is now TFP Hydrogen.

Current market cap £129K

What price TFP in a few years' time?

By way of example, this from August:
At TFP Hydrogen Products we are proud to announce our involvement in the Ocean Renewable Energy Fuel (Ocean-REFuel) programme, has an electrolyser system manufacturer.

The innovative £10M research project will investigate the potential of harnessing offshore wind and marine renewable energy to produce zero carbon hydrogen and ammonia fuels.

G.

[arthur_lame_stocks] 09/11/2021 09:54

I thought the results were pretty good overall. These are not obviously cheap but hopefully they have great growth prospects going forward so i'm happy to continue holding.

[p1nkfish] 09/11/2021 08:36

Lovely to read and promising growth plans.

[garth] 09/11/2021 08:13

Nice start. Results well received. I am expecting that will see us move beyond the most recent high.

Mark Cropper, Chairman, commented:

"The Group has experienced a 47% increase in revenues in the first half, returning to pre-pandemic levels, with both TFP and Colourform performing above this level, and Paper demonstrating a strong recovery. Plans are in place to establish an additional electrolyser line in the US as the hydrogen market surges and the 50% increase in TFP's non-woven lines is now operational. Paper sales are projected to be ahead of pre-pandemic levels by the start of 2022, with a strong demand for recycled fibre content and responsible sourcing. The Colourform ä business attracts brands seeking plastic-free sustainable packaging across the wines, spirits, beauty, and fragrance sectors."

.....

"Technical Fibre Products ("TFP")

Revenues in the TFP division were up by 19% across all market segments. Strong growth continues in the renewable energy sector, and demand in the aerospace sector is returning as aircraft build rates increase. Proton Exchange Membrane (PEM) water electrolyser sectors are growing, and TFP is investing in additional USA capacity to meet forthcoming demand.

James Cropper Paper ("Paper")

The Paper division, which Covid-19 adversely impacted, is seeing revenues up by 64% compared to last year's comparable period. Whilst the division does face a challenging inflationary environment, significant contracts gained in luxury packaging and price increases are strengthening the mix. Investment is underway to deliver additional capability to meet these contract wins and the increased demand coming on stream for materials with sustainable and recycled fibres delivered via circular economy projects.

Colourform(TM) ("Colourform")

Revenues in the Colourform division grew by 22% in the period, with contracts being fulfilled for the wines, spirits, and beauty and fragrance sectors. Significant international recognition was gained across the packaging industry with multiple sustainability awards won. As a result, Colourform's pipeline continues to grow with unique, pioneering projects for sustainable coloured packaging solutions.

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

Outlook

The Group has experienced a 47% increase in revenues in the first half, returning to pre-pandemic levels, with both TFP and Colourform performing above this level and Paper demonstrating a strong recovery.

Adjusted PBT for the Group increased by 70%, with strong growth across all businesses. It is expected that the Group will continue to grow in the second half.

Plans are in place to establish an additional electrolyser line in the US as the hydrogen market expands and the 50% increase in TFP's non-woven lines is now operational. Paper sales are projected to be ahead of pre-pandemic levels by the start of 2022, with a strong demand for recycled fibre content and responsible sourcing. The Colourform ä business is attracting brands seeking plastic-free sustainable packaging across the wines, spirits, beauty, and fragrance sectors.

G.

[garth] 22/10/2021 07:31

Can't decide what is in dominance, the rising trend channel from 700p or the falling one from 1950p.

Hydrogen future vs current gas prices. Hope vs Fear. Long term vs short term.

Ho-hum.

G.

[vprt] 12/10/2021 12:32

The day started at 06:30am with BBC reporting live from Cropper about the threat to energy intensive industries like paper - the doom-monger from the local Chamber of Commerce was saying that jobs (in general) were at stake. Not sure if anyone from the company spoke later? It was mentioned by the reporter that Cropper (in a normal year) spends about £3m on energy.

Then now at lunchtime I read the following: ..."Stora Enso STERV.HE and
UPM-Kymmene Corporation both dropped after EU antitrust regulators said they raided wood pulp makers in several countries as part of a cartel investigation. UPM just confirmed EU competition authorities were conducting an unannounced inspection at its premises while there were no immediate announcement from Stora Enso."

Perhaps the pulp market has been rigged to the detriment of Cropper and others?

Interesting times.

[garth] 15/9/2021 21:34

It's taken a while, but that is us up and away to three year highs...

[garth] 25/8/2021 16:53

CRPR slowly, quietly on the rise and looking like this time it might just break out up

:0)

G.

[ptch] 28/6/2021 12:04

Martin Thompson is 61 years old, I don't think there is anything concerning, he's most likely leaving due to retirement. He is on a 12 month notice period and thanked by the board.
In fact this could be a great opportunity to bring in someone with technical experience and fresh ideas to head up the Technical Fibre Products division, one of the more demanding roles in the company. TFP is on the technological forefront of developments in aerospace, fuel cells and wind energy. The push into fuel cells is especially exciting and the purchase of (PV3) Hydrogen Products Ltd earlier this year reinforces that.

[p1nkfish] 22/6/2021 09:46

He doesnt leave until April 2022, hardly the sign of a problematic exit. Mellow.

[vprt] 22/6/2021 09:37

It worries me that the MD of TFP just resigned (see separate RNS) - any speculations or thoughts?

[arthur_lame_stocks] 22/6/2021 08:59

Any comments on the results?

Not too bad all things considered. TFP is a great business which performed robustly despite the problems in the aerospace market. Colourform is growing but needs to grow more quickly if it is to become profitable any time soon and paper should really be sold to fund the growth areas imo.

[garth] 02/6/2021 09:33

Its interestingly placed. Which trend is in play - the one down from £19.50 or the one up from £9?

G.

[p1nkfish] 02/6/2021 09:07

£12 to buy and possible someone letting stock out in £6K bundles of 500 shares.

[hybrasil] 21/4/2021 16:58

Bought a small few today for the first time in 15 years. Last time I bought any they were £2 a share so a brilliant return today