Last updated at 11:56, Wednesday, 27 June 2012

Kendal-based paper manufacturer James Cropper says it is confident it can bounce back after annual earnings and revenues fell during a challenging year.

The company admits the crisis in the Euro zone is not making trading easy, but says restructuring will open up new opportunities and secure future prosperity.

In April James Cropper cut around 40 jobs in the UK - eight per cent of the workforce - in a cost cutting move said turnover in the year to the end of March had fallen from £83.3m to £78.2m as export sales were hit by the euro zone crisis.

Earnings before tax and other adjustments were down from £4.7m to £3.9m, while bottom line profits, before a pension fund-related adjustment was £1.6m, down from £1.7m in 2011.

When restructuring costs of £800,000 and capital project expenditure are included bottom-line profits were £843,000, nearly half the 2011 figure of £1.69m.

Despite the fall in profits the group pegged its dividend at 7.9p per share.

Chairman Mark Cropper,said: "Although the troubles in the euro zone economy are a particular challenge, I am confident that our competitiveness will improve over the coming year as a consequence of our specialist capabilities, products and excellent service levels coupled with our recent investments and the restructuring process.

"We are also reorganising and strengthening our commercial teams across the group, not least in response to the significant business development opportunities available to our businesses in spite of the economic climate. Identifying and converting these opportunities are the key to our future prosperity".

Mr Cropper said that as well as restructuring the UK operations, the US business - Technical Fibre Products - which saw operating profits fall from £2.2m to £629,000 - was also being overhauled with two sites being consolidated into a new facility in New York State.

First published at 08:21, Tuesday, 26 June 2012
Published by http://www.in-cumbria.com